9563. Commercial Bank (Duluth, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 13, 1903
Location
Duluth, Minnesota (46.783, -92.107)

Metadata

Model
gpt-5-mini
Short Digest
4d7c1a32

Response Measures

None

Description

Articles (Aug 13-15, 1903) report the Commercial Banking Company of Duluth suspended/closed after discovery that bookkeeper E. E. Johnson embezzled roughly $45,000; the bank is described as defunct and 'will go into the hands of a receiver.' Other local banks then experienced runs and suspended, but the Commercial institution's failure appears driven by bank-specific adverse information (embezzlement), not by a run. OCR variations in names (Commercial Bank / Commercial Banking company) corrected to 'Commercial Banking Company'.

Events (3)

1. August 13, 1903 Receivership
Newspaper Excerpt
The bank will go into the hands of a receiver. Charles F. Leeland is rendered bankrupt by the defalcation.
Source
newspapers
2. August 14, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank forced to close after discovery that bookkeeper E. E. Johnson embezzled approximately $45,000, rendering president ruined and bank insolvent or unable to continue business.
Newspaper Excerpt
Bank Closes Its Doors. ... the institution, therefore, will not be open for business to-day.
Source
newspapers
3. August 15, 1903 Other
Newspaper Excerpt
The embezzlement ... has brought about the failure of the Merchants' bank of Duluth. President Smith said that the failure was due to a run on the bank resulting from the closing of the Commercial Banking company's institution.
Source
newspapers

Newspaper Articles (14)

Article from The Minneapolis Journal, August 14, 1903

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Article Text

OTHER BANKS AFFECTED Payment Suspended at Carlton and Ctoquet Because of Duluth Failure. DULUTH, MINN.-Creditors of the defunct Commercial Banking company last night appeared before the clerk of the United States district court with a petition demanding that President Charles F. Leland of the bank be declared a bankrupt. Leland was thereupon served with a summons commanding him to appear in court Aug. 25 and show cause why such action should not be taken. E. E. Johnson, the bookkeeper who made away with $50,000 of the bank's


Article from The Daily Pioneer, August 14, 1903

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TOOK BANK'S CASH DULUTH BOOKKEEPER IN JAIL CHARGED WITH EMBEZZLING $45,000. SQUANDERED IN SPECULATIONS DECEIVED HIS EMPLOYERS BY A MANIPULATION OF THE BOOKS. BANK OBLIGED TO SUSPEND PRESIDENT OF THE BANK IS UT. TERLY RUINED BY THE EMBEZZLEMENT. Duluth, Minn., Aug. 14.-E. E. JoAn son, bookkeeper for the Commercial Banking company of this city, was arrested here last evening OR a warrant charging him with the embezzlement of $45,000 of the bank's money. When placed in jail Johnson admitted his guilt and claimed that the peculations had extended over H period of eight months; and that he had been able to deceive his employers by a manipulation of the books. Asked as to what he Lrd done with so much money he declared that he had squandered it in stock speculations and that not a dollar of the amount was saved Bank Closes Its Doors. President Charles F. Leland of the Commercial Banking company said last evening that he had hoped to tide over the affairs of the bank so that it could continue doing business, but found that this was impossible, and the institution, therefore, will not be open for business to-day. "I am a ruined man," said he, "and the efforts of years have been wiped away by the embezzlement. I trusted young Johnson as I would one of my own boys, and when the truth dawned upon me that he had taken the money it was all that I could do to believe it." Johnson is twenty-eight years old, unmarried and the son of J. P Johnson, clerk of the court of St. Louis county, and an old and much respected citizen.


Article from The Saint Paul Globe, August 14, 1903

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Article Text

BOOKKEEPER'S DEFENSE. Johnson Says the Bank Should Have Found Him Out Sooner. DULUTH, Minn., Aug. 13.-Ernest E. Johnson, the bookkeeper of the Commercial Banking company, who was arrested for embezzling $45,000, was arraigned today and waived examination, his bail being fixed at $15,000. The bank will go into the hands of a receiver. Charles F. Leeland is rendered bankrupt by the defalcation. Young Johnson takes his trouble with astounding coolnešs. He has concluded that while he was to blame for taking money not his own, the bank was culpable in not finding it out, and says the commission houses where he traded gave him unlawful encouragement in trading.


Article from The Minneapolis Journal, August 15, 1903

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Article Text

THE FOURTH TO SUSPEND Another Bank Failure Caused by Johnson's Big Embezzlement. DULUTH, MINN.-The embezzlement of $45,000 of the funds of the Commercial Banking company by E. E. Johnson, the trusted clerk, has brought about the failure of the Merchants' bank of West Duluth, which closed its doors after yesterday's business. President Smith said that the failure was due to a run on the bank resulting from the closing of the Commercial Banking company's institution. He said he could not anticipate the extent of the withdrawals and closed to protect all depositors as much as possible. This is the fourth bank suspension as a result of Johnson's wrong doing.


Article from Arizona Republican, August 15, 1903

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Article Text

A GRASHING OF BANKS Four in Duluth, Minn., Attributed to Embezzlement. Duluth Minn.. Aug. .-The alleged embezzlement of $45,000 of the funds of the Commercial Banking company. for which E. E. Johnson, a trusted clerk of the bank. is under arrest, today brought about a failure of the Merchants' bank of Duluth. President Smith said that the failure was due to a run on the bank resulting from the closing of the Commercial institution. He said that he could not anticipate the extent of the withdrawals and closed to protect all depositors as much as possible. This is the fourth bank to suspend as a result of the alleged embezzlement.


Article from Daily New Dominion, August 15, 1903

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Article Text

Bank Failure. Duluth, Minn., Aug. 15.-The alleged embezzlement of $45,000 of the funds of the Commercial Banking company, for which, E. E. Johnson, the trusted clerk of the bank, is under ar. rest; has brought about the failure of the Merchants' bank of Duluth, President Smith said that the failure was due to a run on the bank, resulting from the closing of the Commercial Banking company's institution. He said that he could not anticipate the extent of the withdrawals and closed to protect all depositors as much as possible. This is the fourth bank suspending business as a result of the alleged embezzlement.


Article from Evening Journal, August 15, 1903

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Article Text

Embezzlement Caused Bank Failure Duluth. Minn., Aug. 15.-The alleged embezzlement of $45,000 of the funtis of the Commercial Banking Company. for which E. E. Johnson, the trusted clerk of the bank, is under arrest, has brought about the failure of the Merchants' Bank of Duluth. President Smith, in a statement, said that the failure was due to a run on the bank resulting from the closing of the Commercial Banking Company's institution.


Article from Waterbury Evening Democrat, August 15, 1903

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Article Text

Merchants' Bank of Duluth Fails. DULUTH, Minn., Aug. 15.-The alleged embezzlement of $45,000 of the funds of the Commercial Banking company, for which E. E. Johnson, the trusted clerk of the bank, is under arrest, has brought about the failure of the Merchants' bank of Duluth, which has closed its doors. President Smith in a statement says that the failure is due to a run on the bank resulting from the closing of the Commercial Banking company's institution. This is the fourth bank suspending business as a result of the alleged embezzlement.


Article from The Sun, August 16, 1903

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Article Text

MINNESOTA BANK CRASHES. Four Go Down Because of a Defaleation-Head of Another Missing. DULUTH, Minn., Aug. 15.-The alleged embezzlement of $45,000 of the funds of the Commercial Banking Company, for which E. E. Johnson, a trusted clerk of the bank, is under arrest, has brought about the failure of the Merchants' Bank of Duluth, which blosed its doors after yesterday's business. President Smith, in a statement issued late yesterday, said that the failure was due to a run on the bank resulting from the closing of the Commercial Banking Company's institution. He said that he could not anticipate the extent of the withdrawais, and closed to protect all depositors as much as possible. This is the fourth bank to suspend business as a result of the alleged embezzlement. ST. PAUL, Minn., Aug. 15.-George S. Brainerd, head of the G. S. Brainerd Lumber Company of Minneapolis, and with his brother. B. A. Brainerd, owner of the Farmers and Merchants Bank at Montgomery in this State, has been missing for several days under circumstances which are the cause of much anxiety and alarm among his friends. The bank at Montgomery is closed, with B. S. Brainerd, who is cashier, out of the city, and it is feared that it will not be able to open again. The deposits have been running from $50,000 to $60,000, and the liabilities are estimated at $150,000. Cashier Brainerd, who is also interested in the lumber company, is in Minneapolis assisting in the search for his missing brother, but the greatest energy upon the part of himself and others has failed to develop any important information.


Article from The Saint Paul Globe, August 20, 1903

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Article Text

WANT MONEY BACK. Order Is Issued Upon President of Duluth's Suspended Bank. Special to The Globe. DULUTH, Minn., Aug. 19.-Judge Morris today issued an order on United States marshal and the president of the defunct Commercial bank to show cause why a large sum paid in the last day before the suspension should not be returned.


Article from The McCook Tribune, August 21, 1903

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Causes Failure of Another Bank. DULUTH, Minn.-The alleged embezzlement of $45,000 of the funds of the Commercial Banking company, for which E. E. Johnson, a trusted clerk of the bank is under arrest, on Friday brought about the failure of the Merchants' bank of Duluth. President Smith said that the failure was due to a run on the bank, resulting from the closing of the Commercial Banking company's institution


Article from Little Falls Herald, August 21, 1903

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LOST IT IN BUCKET SHOPS. Ernest E. Johnson embezzled ₹48500 of the deposits of the Commercial Bank of Duluth, of which he was boookeeper, and the bank suspended, causing the failure of other banks. Johnson lost the money in stock speculation. He said in an interview: "Most of my transactions were through the bucket shop of Edwards, Woods & Co. You understand that I am not excusing myself, but I do say that Edwards, Woods & Co. must have known that a man drawing & salary of $70 a month as I was, could not be margining stockswith checks of $500 and $1000 without something being wrong. I blame the bucket shop as much as I do my self almost. They must have konwn-I do not see how they could fail to know that all was not right. "I have been sitting here all night thinking it over and the more I think the more I am convinced that negligence in the bank and unlawful encouragement in the bucket shops are deeply responsible." Jonhson's father says: "I cannot see why in the world the bucket shop where my son did business, knowing that they must that he was on & small salary, could have permitted matters to shape themselves as they have without either coming to myself or to Mr. Leland and making inqiry as to whether Ernest was plug-ing on his own or somebodys elses money." The Duluth Herald says that there is much severe condemation for the bucket shops from all sides. The manager of the Coe Commisson office said he had investigated Johnson's trading. but Johnson claimed to have made $8000, and to be using t hat.


Article from Willmar Tribune, September 19, 1903

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ROUND ABOUT THE STATE. Another iron mine has been found on the Mesaba a few miles east of Biwabic. The St. Croix Valley Standard has been sold to J. A. Stuard and Francis Folsom, who will take immediate possession. Up to the time the doors were closed at the registrar's office at the state university 2,050 students had been registered. Charles Hellens, a packer at Swift & Co.'s, South St. Paul, was killed by a Great Western train. He left a widow and six children. At a meeting of the directors of the State Bank of New Auburn, G. K. Gilbert was elected president, E. L. Coon vice president, and H. Ebeling cashier. An association of state oil inspectors was formed in St. Paul, the purpose of the organization being to secure uniformity in the inspection of oil. A horse pulling a wagon fell dead in front of the West hotel, Minneapolis, after running several blocks with blood streaming from an immense gash in his side. The fair grounds are being cleaned off rapidly after the great fair, and gangs of men were at work yesterday removing all the odds and ends of truck that have accumulated in the past seven days. The Great Northern cordially seconds the efforts of the state board of managers of the St. Louis World's Fair to make Minnesota's exhibit there worthy of this great state. This road recognizes the fact that good exhibits mean a great financial benefit to the state after the fair. The Minneapolis Retailer's Association has urged upon the managers of the state fair association the advisability of changing the date of state fair week hereafter so as to include Labor Day. The law passed by the recent legislature, relative to the disposition of money received by townships from the sale of liquor licenses, is causing the state superintendent of education no end of explanation. Gus Olson, the Blackduck bartender, charged with criminal assault in the second degree, who was committed to jail on June 8, to await the action of the grand jury, has been taken to Brainerd to be examined as to his sanity. Brooding over his troubles is thought to have driven him insane. Mrs. Alvina Broski, 51/2 Tyler street, St. Paul, has been building herself a house and worked several days without food in the effort to get it finished. She finally could work no longer and applied to the police for relief. The public schools of Morris opened with the largest first day enrollment in their record, there being 445 enrolled, seventy-two of whom are in the high school. Some of the rooms are over-crowded and the question of more room thus confronts the board early, though the enrollment will be increased by over 100 before the middle of the year. G. A. Copeland, formerly a police lieutenant, was yesterday appointed probation officer of Minneapolis by the state board of control to succeed George D. Holt. The two-year-old child of Herman Badke of North Rochester fell from a high sidewalk on which it was playing and was found a short time later drowned in a barrel of water into which it had fallen. Oscar DuBois and Ole Lindberg, strangers in Minneapolis, were taken into custody by Patrolmen Erickson and Flood on the charge of stealing Charles Coester's pocketbook in a saloon. Assets $228,483.66; liabilities, $282,403.18. This is the showing of Charles F. Leland's schedule of assets and liabilities in the defunct Commercial bank of Duluth. John W. Riddle of Minnesota, now first secretary of embassy at St. Petersburg, to be consul general and diplomatic agent at Caird, in place of John G. Long, deceased. For the crop year of 1902-03 the receipts of grain in Minneapolis were as follows: Oats, 18,527,000 bushels; corn, 2,856,000 bushels; barley, 9,457,100 bushels; flaxseed, $10,072,600 bushels; wheat, 89,372,600 bushels. A. F. Ferris, state senator, representing Crow Wing and Morrison counties, died at Brainerd. An operation was performed upon him last night for appendicitis. Minneapolis organized labor turned out 8,000 strong despite the unpleasant weather, and made the parade one of the largest of a similar character ever held in the city. There were 200 musicians and 150 women and children in line. The city schools of Pipestone opened with a large attendance. It is thought that within a few days the


Article from Willmar Tribune, September 19, 1903

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ROUND ABOUT THE STATE. Another iron mine has been found on the Mesaba a few miles east of Biwabic. The St. Croix Valley Standard has been sold to J. A. Stuard and Francis Folsom, who will take immediate possession. Up to the time the doors were closed at the registrar's office at the state university 2,050 students had been registered. Charles Hellens, a packer at Swift & Co.'s, South St. Paul, was killed by a Great Western train. He left a widow and six children. At a meeting of the directors of the State Bank of New Auburn, G. K. Gilbert was elected president, E. L. Coon vice president, and H. Ebeling cashier. An association of state oil inspectors was formed in St. Paul, the purpose of the organization being to secure uniformity in the inspection of oil. A horse pulling a wagon fell dead in front of the West hotel, Minneapolis, after running several blocks with blood streaming from an immense gash in his side. The fair grounds are being cleaned off rapidly after the great fair, and gangs of men were at work yesterday removing all the odds and ends of truck that have accumulated in the past seven days. The Great Northern cordially seconds the efforts of the state board of managers of the St. Louis World's Fair to make Minnesota's exhibit there worthy of this great state. This road recognizes the fact that good exhibits mean a great financial benefit to the state after the fair. The Minneapolis Retailer's Association has urged upon the managers of the state fair association the advisability of changing the date of state fair week hereafter so as to include Labor Day. The law passed by the recent legislature, relative to the disposition of money received by townships from the sale of liquor licenses, is causing the state superintendent of education no end of explanation. Gus Olson, the Blackduck bartender, charged with criminal assault in the second degree, who was committed to jail on June 8, to await the action of the grand jury, has been taken to Brainerd to be examined as to his sanity. Brooding over his troubles is thought to have driven him insane. Mrs. Alvina Broski, 51/2 Tyler street, St. Paul, has been building herself a house and worked several days without food in the effort to get it finished. She finally could work no longer and applied to the police for relief. The public schools of Morris opened with the largest first day enrollment in their record, there being 445 enrolled, seventy-two of whom are in the high school. Some of the rooms are over-crowded and the question of more room thus confronts the board early, though the enrollment will be increased by over 100 before the middle of the year. G. A. Copeland, formerly a police lieutenant, was yesterday appointed probation officer of Minneapolis by the state board of control to succeed George D. Holt. The two-year-old child of Herman Badke of North Rochester fell from a high sidewalk on which it was playing and was found a short time later drowned in a barrel of water into which it had fallen. Oscar DuBois and Ole Lindberg, strangers in Minneapolis, were taken into custody by Patrolmen Erickson and Flood on the charge of stealing Charles Coester's pocketbook in a saloon. Assets $228,483.66; liabilities, $282,403.18. This is the showing of Charles F. Leland's schedule of assets and liabilities in the defunct Commercial bank of Duluth. John W. Riddle of Minnesota, now first secretary of embassy at St. Petersburg, to be consul general and diplomatic agent at Caird, in place of John G. Long, deceased. For the crop year of 1902-03 the receipts of grain in Minneapolis were as follows: Oats, 18,527,000 bushels; corn, 2,856,000 bushels; barley, 9,457,100 bushels; flaxseed, $10,072,600 bushels; wheat, 89,372,600 bushels. A. F. Ferris, state senator, representing Crow Wing and Morrison counties, died at Brainerd. An operation was performed upon him last night for appendicitis. Minneapolis organized labor turned out 8,000 strong despite the unpleasant weather, and made the parade one of the largest of a similar character ever held in the city. There were 200 musicians and 150 women and children in line. The city schools of Pipestone opened with a large attendance. It is thought that within few days the