9701. American Savings and Loan Association (Minneapolis, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 14, 1896
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
8202d30b

Response Measures

None

Description

Multiple newspapers report that the American Savings and Loan Association was placed in the hands of a receiver (Major W. D. Hale) following an application by the Attorney General based on Bank Examiner Kenyon's report. No run or depositor panic is described. This is a government-initiated receivership/closure (suspension leading to receivership). Date of court action reported as Jan. 14, 1896 in several items.

Events (2)

1. January 14, 1896 Receivership
Newspaper Excerpt
Major W. D. Hale was named as receiver. The action was an entire surprise to the officers of the association, who knew nothing of the movement until Receiver Hale, accompanied by two deputy sheriffs and armed with the order of court, took possession.
Source
newspapers
2. January 14, 1896 Suspension
Cause
Government Action
Cause Details
Attorney General Childs applied for appointment of a receiver based on Bank Examiner Kenyon's affidavits alleging mismanagement, illegal investments and insolvency.
Newspaper Excerpt
The American Savings and Loan Association went into the hands of a receiver today, application to the court having been made by Attorney General Childs.
Source
newspapers

Newspaper Articles (10)

Article from The Seattle Post-Intelligencer, January 15, 1896

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A MINNEAPOLIS BANK FAILS. Receiver in Charge of American Savings and Loan Association. Minneapolis, Jan. 14-The American Javings and Loan Association went into the hands of a receiver today, the application to the court having been made by Attorney General Childs. Maj. W. D. Hale was named as receiver. The action was an entire surprise to the officers of the association, who knew nothing of the movement until Receiver Hale, accompanied by two deputy sheriffs and armed with the order of court, took possession. The attorney general was moved to action by information filed by Bank Examiner Kenyon. Among the reasons given for the application were charges that in 1889 the officers illegally Invested $202,000 in the capital stock of the GermanAmerican Fire Insurance Company: that the management had been grossly extravagant and unbusinesslike, and that the laws of the state governing such associations had been repeatedly violated. It is charged that James H. Bishop, president, and F. B. Stoneman, financial agent, have taken no steps to recover money illegally invested. Secretary T. E. Bishop called a meeting of the directors immediately, and It is believed the receivership will be resisted. The expenses of running the association for seven years are placed at $672,442, and the earnings at $1,054,051. From the balance should be deducted $250,000, the loss on the Insurance company investment, leaving very little profit for the stockholders. For three years the association has taken no new business, but has been very extravagantly conducted. The salary list for one year was $35,662. The bank examiner's report in May: 1895. showed resources of $2,287,519. including $49,837 of rejected asmets; cash on hand and in bank, $183,984. The mortgage loan account footed up $1,015,726, of which $241,325 was in the attorney's hands for foreclosure. The examiner figured that $1,866,313 was totally Inactive assets, while only $321,206 produced any Income. The maturity of the stock was therefore very remote and Indefinite.


Article from Warren Sheaf, January 16, 1896

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Article Text

THE American Savings and Loan Association, of Minneripolis, has been placed in the hands of A receiver. From the report of bank examiner Kenyon it appears that the affairs of the association have been grossly mismanaged, and that the officers have not been slow in fea thering their own nests. Too many smide concerns it seems, have their origin in the city of Minneapolis. At one time a large amount of stock in the association was held at Warren, but the SHEAF is informed that little, if any, is hold at the present time.


Article from Warren Sheaf, January 16, 1896

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in Ohio to succeed Calvin S. Brice, democrat, THE American Savings and Loan Association, of Minner polis, has been placed in the hands of a receiver. From the report of bank examiner Kenyon it appears that the affairsof the association have been grossly mismanaged, and that the officers have not been slow in feathering their own nests. Too many snide concerns it seems, have their origin in the city of Minneapolis. At one time a large amount of stock in the negociation was held at Warren, but the SHEAF is informed that little, if any, is held at the present time. Es-Gov. William R. Marshall, in whose honor Murshall county is named, died Jan. 8th in California, where he went in 1894 for the benefit of his health. He was one of the sturdy pioneer settlers of the state, locating in the St. Croix valley as early ns 1847, before the organismtion of Minnesota as n territory. He took up n claim near St. Anthony Falls, to which place he removed in 1849; and in 1851 he removed to St. Paul, where he engaged in various business enterprises, among them being the publication of a newspaper from which the Pioneer Press of today traces its descent. He served as an officer in the civil war; took part in a number of important battles and became noted for his bravery and skill as a commander. Returning from the war, through the soldier element of the party, he received the Republican nomination for gov. ernor of Minhesota, and was elected. He was also re-elected for a second term. As n chief magistrate he was one of the best thestate hasever had. He served asa railroad commissioner from 1874 to 1881, and for a short time also he held the position of secretary of the Minnesota Historical Society. During his life he did not succeed in acquiring wealth, and he died a poor man. The Pioneer Press closes an article on his life with the following eloquent tribute: "His death, unevitable and not untimely though it was, will be sincerely deplored. The state which be helped to create and in whose service he spent so much of his life will honor his memory now and in time to come. The city where be made his home and for whose Interests he did so much will honor him. His companions in arms will do reverence to his remains. His soldiers, who loved him as a father, will take his loss as a personal bereavement. And * all these manifestations will be sincere, even though all men who knew William R. Marshall knew that with him now it is as he said: "All is well."


Article from Warren Sheaf, January 16, 1896

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THE American Savings and Loan Association, of Minnerpolis, has been placed in the hands of A receiver. From the report of bank examiner Kenyon it appears that the affairs of the association have been grossly mismanaged, and that the officers have not been slow in feathering their own nests. Too many snide concerns it seems, have their origin in the city of Minneapolis. At one time a large amount of stock in the association was held at Warren, but the SHEAF is informed that little, if any, is held at the present time.


Article from Pike County Press, January 17, 1896

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NEWS OF THE WEEK. Thursday, Jan. 9. Robert G. Still, colored, well known in Democratic political circles as a leader among people of his race, died in Philadelphia. A bank at Fayette, O., was entered by burglars and $48, 750 in money and about $4,000 in bonds taken. There is no clew to the perpetrators. The steamer Ealing, Captain Meek, from St. John's, N. F., for New York, is ashore off Halifax. She has been abandoned by her crew. Passenger train No. 300 on the Erie railroad ran into freight train between Riverside and Fourth avenues, Newark, N J. Three freight cars were thrown from the track, and travel was blocked for several hours. Several passengers were slightly hurt. A Detroit dispatch says that Thomas B. Reed is Mayor Pingree's presidential candidate, and his honor announces it in tones of exultation. It is improbable that the mayor's fiatfooted declaration will do his own gubernatorial boom any harm. Reed is pretty certain to have most of the Michigan delegates. Friday, Jan. 10. Near Mount Pleasant, Gadsden county, Fla., Henry Thomas and Albert Stafford fought a duel about a girl. Both were killed. E. B. Wight, Washington correspondent of the Chicago Inter Ocean and widely known as journalist, died of heart fail. ure in Washington. Unknown men called at the home of Ed Welch at Holton, Kan., blindfolded him, threw him to the floor, cut off his left hand with an ax and robbed him. Mr. Clement A. Griscom, president of the International Navigation company, has been elected commodore of the Corinthian Yacht club of Philadelphia. The Fait & Slagle company, oyster packers of Baltimore, made a deed of as signment to John S. Gibbs. The cause of the failure is excessive competition. LAabilities are placed at $50,000. As John Robertson, a prominent farmer in the town of Riga, N. Y., was passing through his barnyard he was attacked by a bull, and six ribs were broken before his son arrived and beat the animal off. John W. McDonald, alias George Allen, indicted for kidnaping Lawyer O. O. Cottle, pleaded guilty to the crime in the criminal term of the supreme court in Buffalo and was sentenced to the Elmira reformatory. Saturday, Jan. 11. The Ontario and Western railroad depot at Rock Rift, N. Y., was totally destroyed by fire. Fire at Brushton, N. Y., destroyed five blocks, and only part of the contents was saved. The loss is estimated at $15,000. Eight masked men blew open the safe of the Farmers' bank at Verona, Mo. with dynamite and escaped with $9,000 in cash. A decree has been gazetted in Paris prohibiting the export from France for the French colonies of warlike munitions in tended for the island of Cuba. R. G. Dun & Co. of New York report that the failures for the week have been 431 in the United States, against 420 last year, and 53 in Canada, against 54 last year. John McBride, former president of the American Federationn of Labor, has written his farewell to that organization, in which he says he will "never again seek or accept official responsibility in the labor movement. Monday, Jan. 13. George Spengler, deputy postmaster at Chatham, N. Y., dropped dead while attending to his duties in the postoffice. Frank H. Lummus, who owned two of the largest cotton gin factories in the south, died at his home in Brooklyn. Mrs. Addona P. Fotch, aged 84 years, wife of Walter Fotch of Stafford, committed suicide by hanging at Batavia, N. Y. The annual exercises in commemoration of the founder of Cornell university were held in the armory in Ithaca before 1,200 people. Governor and Mrs. Morton gave a dinner at the executive mansion in Albany to the judges of the court of appeals and a few other invited guests. The Fifth Avenue Savings bank of Columbus, O., closed its doors. The cause is alleged to be money loaned too freely. The officers say everybody is secured. The Vassar College Glee club gave a concert in the theater attached to the Hudson River State hospital in Pough. keepsie, where 500 insane patients composed the audience Tuesday, Jan. 14. Peter Houghard, who is thought by the police to have been insane, killed himself, wife and five children in Chicago. McGowan's undertaking establishment, at Haverstraw, N. Y., was burned, with its contents. A. Saul's shoe store and Cohn's market were also destroyed. The steamer Royal, one of the fastest vessels on the great lakes, burned to the water's edge at Evansville, Ind. The loss is $24,000 and the insurance $15,000. In Philadelphia a scaffold, on which three painters were working, fell. William Anderson and Edward Petroski were in stantly killed and Henry Petersen fatally injured. At Newmansville, Fla., Henry Jordan, a negro desperado, charged with murderously assaulting Dr. J. N. Cloud. was burned to death in a house where he had sought to escape from a mob. Richard J. Oliphant, one of the wealthlest, most progressive and influential business men of Oswego, N. Y., died from blood poisoning, the result of contracting a cold in his jaw after having had some teeth extracted. Wednesday, Jan. 15. Henry S. Tyler, mayor of Louisville, died in that city. He had been ill for about five weeks. The French chamber of deputies reassembled at Paris. M. Henri Brisson was re-elected president. In New York city Michael McGowan, the murderer of Rose Finn, was found guilty of murder in the second degree. James Farley of Philadelphia was found dead in an area in Railroad avenue in Newark, N. J. He had fallen into the area, and, striking on his head, broke his neck. The American Savings and Loan association of Minneapolis went into the hands of a receiver, application to the court having been made by Attorney General Childs. Major W. D. Halemann was named as receiver. The 20 rate yacht built by Sibbick for Mr. Arthur Goelet and Mr. Paget was n launched from Sibbick's yard, Cowes, Isle of Wight. The trial of R. F. Kneebs, the American horseman charged with fraudulently entering Bethel in races under a false name in Berlin resulted in a verdict of guilty.


Article from The San Francisco Call, January 17, 1896

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An Examiner in Charge. MINNEAPOLIS, MINN., Jan. 16.-The doors of the Irish-American Bank were closed to-day. Bank Examiner Kenyon is now in charge. The bank was indirectly connected with the American Savings and Loan Association which went into the hands of a receiver a few days ago.


Article from Red Lodge Picket, January 18, 1896

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WASTED THE CORPORATION FUNDS American Savings and Loan Association in the Hands of a Receiver Minneapolis, Jan. 14.-The American Savings and Loan Association went nto the hands of a receiver today, aplication to the court having been made y Attorney General Childs. Major W. D. Hale was named as receiver. The ction was an entire surprise to the oficers of the association, who knew nothing of the movement until Reeiver Hale, accompanied by two depity sheriffs and armed with an order f the court, took possession. The attorney general was moved to ction by information filed by Bank Examiner Kenyon. Among the reasons riven for the application were charges hat in 1889 the officers illegally investd $202,000 in the capital stock of the German American Fire Insurance Company; that the management had been grossly extravagant and unbusinesslike, and that the laws of the state govrning such associations had been repeatedly violated. It is charged that James H. Bishop, president, and F. B. Stoneman, financial agent, had taken 10 steps to recover the money illegally invested. Secretary T. E. Bishop called 1 meeting of the directors immediately, and it is believed the receivership will be resisted.


Article from The Dickinson Press, January 18, 1896

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HALE IN CHARGE. He Is Named Receiver of the American Savings & Loan. Minneapolis, Jan. 16.-Judge Belden this morning signed the order appointing ex-Postmaster W. D. Hale receiver of the America Savings and Loan Association. The order was signed at the request of Attorney General Childs who came over from St. Paul yesterday and talked with Judge Belden a moment while the latter was on the bench. This morning he came again, and this time brought the order with him,which was signed-when presented. It has been known for some days that the question of the appointment of a receiver was under consideration by Bank Examiner Kenyon, who has consulted with the attorney general on the subject, with the result as above stated. The papers were served on the assoclation early to-day when Deputies John Wall and Adolph Peterson. The secretary, Thomas E. Bishop, was in his office when the deputies walked in, followed by Maj. Hale. In a few words Deputy Wall explained the nature of the visit, and stated that he did not want any trouble at all. Mr. Bishcp was greatly surprised at the visit, but said there would be no difficulty whatever. C. M. Cooley, attorney of the American Savings and Loan Association. was also present, and as soon as the announcement was made advised a meeting of the board of directors. Mr. Hale too's immediate possession of the business and offices. The assets are valued at $2,287,519, and liabilities the same, but there will no donbt be large lossses to be charged up on Account of real estate.


Article from The Kootenai Herald, January 18, 1896

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WASTED THE CORPORATION FUNDS American Savings and Loan Association in the Hands of a Receiver. Minneapolis, Jan. 14.-The American Savings and Loan Association went into the hands of a receiver today, application to the court having been made by Attorney General Childs. Major W. D. Hale was named as receiver. The action was an entire surprise to the officers of the association, who knew nothing of the movement until Receiver Hale, accompanied by two deputy sheriffs and armed with an order of the court, took possession. The attorney general was moved to action by information filed by Bank Examiner Kenyon. Among the reasons given for the application were charges that in 1889 the officers illegally invested $202,000 in the capital stock of the German American Fire Insurance Company; that the management had been grossly extravagant and unbusinesslike, and that the laws of the state governing such associations had been repeatedly violated. It is charged that James H. Bishop, president, and F. B. Stoneman, financial agent, had taken no steps to recover the money illegally invested. Secretary T. E. Bishop called a meeting of the directors immediately, and it is believed the receivership will be resisted.


Article from The Irish Standard, January 18, 1896

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STANDARD SIGNALS The A. 0. H. county board meets to morrow afternoon at the hall of Div. No. 2, A. 0. H., in Labor Temple. Thomas McDonough, aged 7 years, BOB of Mr. and Mrs. Patrick McDonough, died Wednesday last at the home of his parents 18 Royalston avenue. The residence of J. C. Emmett, 1827 Ninth avenue south, was entered last Saturday afternoon by a sneak thief. When the thief left he carried a pair of diamond ear rings, a brooch and several rings, the whole value at $500. John C. Hessian, one of Duluth's leading attorneys, visited friends in this city a few days since. Mr. Hessian was on his way to the Zenith City after paying a visit to the old folks at his former home at St. Peter. The City bank, Third street and Hennepin avenue. suspended payment on Wednesday. The announcement was somewhat of a surprise to the general public, but to the other banks it was not. They have been expecting it for several days. The City bank is now in the hands of State Bank Examiner Kenyon. Mrs. Anna Conway has issued invitations to the marriage of her daughter Mary F. to Frank J. Murphy, formerly of this city, but now engaged in business at Grand Rapids, this state. The ceremony will take place next Tuesday afternoon at 3 o'clock at the St. Anthony of Padua church. The funeral of Mrs. Kelly, who died last Friday at Blooming Prairie, Minn., occurred Sunday afternoon from Holy Rosary church, this city. The deceased lady was the mother of John W. Kelly and Mrs. John Lally, of Minneapolis, and had resided many years at Blooming Prairie since coming to this state. The funeral was very largely attended. Fire Chief Stetson will have for his first assitant A. H. Runge; second assistant Peter J. Kinney and one of the district chiefs will be Jos. Herlund. These appointments will be presented to the city council for confirmation at its meeting two weeks from last Friday evening. Who the adidtional district chief will be has not yet been given out. Sarsfield branch of Irish National Alliance held an interesting meeting Friday evening of last week, at their hall, 34 Washington avenue south, and received a large number of new mémbers. The time of meeting hereafter will be the first Sunday and third Tuesday evenings of each month. The next meeting will therefore occur next Tuesday evening. With Dr. Hosmer, of the public library, patience has long ceased to be a virtue, as it applies to thieves who make the library their stamping ground. Dr. Hosmer called at the mayor's office Tuesday and asked that a special officer be detailed to watch the building Mrs. Dr. Esterbrook had a sealskin sacque stolen a few days ago from the library, and this is but one of many similar thefts. A briliant surprise party was tendered William P. Kenney Friday evening of last week ait Dania hall by about 75 of his intimate friends. Dancing and card playing were a feature of the evening. Mr. Kranz, in a neat little speech, and on behalf of the members of the Merry Thirty Social club, presented Mr. Kenney with a handsome umbre !a, as a token of the high esteem in which he is held by his friends. Lamprecht Bros. & Co., Cleveland, were awarded the $200,000 reservoir bonds at the meeting of the ways and means committee Tuesday afternoon. The purchase price was $208,042, the premium being $8, 042, with accrued interest on the date of delievery. The bonds are to be delivered to the proper officials of the company in New York city at noon today. The proper city officials, including Comptroller Nye, left for New York city probably to deliver the bonds and see that all proper legal proceedings are taken. It is understood that Lamprecht Bros. & Co., have already deposited in the Washington Bank, of this city, $35,000 as evidence of good faith. The American Savings and Loan association is in the hands of a receiver. Judge Belden signed an order Tuesday, appointing W. D. Hale to the position, upon the application of Atty.-Gen. Childs, and based upon affidavits of Bank Examiner Kenyon. Tuesday the papers were filed with the clerk of courts, and taken away immediately for service The affidavits set out the general insolvency of the association, and showed grounds sufficient for the court to make the order. The receiver furnished a bond at once, and is already in his official capacity as an officer of the court in charge of the concern. Deputy Sheriff Wall at once went to the offices of the company with the receiver and took possession. Jolly Nellie McHenry, one of the brightest and most vivacious of American comediennes, will appear at the Metropolitan for four nights and a popular priced matinee. commencing next Thursday. Miss McHenry is the first one to see the advisability of a comedy dealing with the bicycle craze and the "new woman" and accordingly she has had written what is termed a "cycle comedy"-in other words a comedy where the heroine is largely interested in the promotion of cycling and in which the public are treated to an unique expression of the current craze which concerns the new woman and her mania for wheeling. There is no jollier or livelier figure on the stage than this same Nellie McHenry, and it would be a dull comedy indeed which her talents would not brighten to an extent that it