9711. Bank of North Minneapolis (Minneapolis, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
March 26, 1886
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
41759fc9

Response Measures

None

Description

The Bank of North Minneapolis was a private banking partnership (Farnsworth & Rauen). Articles report the doors closed and payment suspended and an assignment for benefit of creditors/receiver appointed (Egbert Cowles). The failure is attributed to William Farnsworth's speculative wheat losses. There is no description of a depositor run; therefore this is classified as a suspension leading to closure/receivership.

Events (3)

1. March 26, 1886 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy wheat speculations by cashier/partner William Farnsworth drained funds; bank was insolvent and closed its doors and suspended payment.
Newspaper Excerpt
The Bank of North Minneapolis closed its doors on the 26th. ... the failure was due to Farnsworth's speculations in wheat.
Source
newspapers
2. March 27, 1886 Other
Newspaper Excerpt
made an assignment for the benefit of creditors to Egbert Cowles who gave bonds in $100,000 ... The doors of the bank were closed yesterday morning and payment suspended. The failure ... made an assignment for the benefit of creditors to Egbert Cowles ... suits were commenced in the district court ... (St. Paul Daily Globe, 1886-03-27).
Source
newspapers
3. March 27, 1886 Receivership
Newspaper Excerpt
A BAD FAILURE. A Private Bank Goes Under--... made an assignment for the benefit of creditors to Egbert Cowles ... the doors of the bank were closed yesterday morning and payment suspended.
Source
newspapers

Newspaper Articles (5)

Article from St. Paul Daily Globe, March 27, 1886

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Article Text

A BAD FAILURE. A Private Bank Goes Under--Wheat Speculations the Cause. William Farnsworth and Jacob Rauen, copartners doing a private banking business under the name of the Bank of North Minneapolis yesterday made an assignment for the benefit of creditors to Egbert Cowles who gave bonds in $100,000 with P. H. Kelly of St. Paul, and Anthony Kelly of Minneapolis as sureties, the affidavit filed stating that the property assigned does not exceed $50,000. The doors of the bank were closed yesterday morning and payment suspended. The failure although not a large one is likely to cause considerable distress, as the depositors were almost without exception from the working classes. From such particulars as could be learned yesterday it appears that the Bank of North Minneapolis was incorporated four years ago with a capital of $50,000, the officers being E. Locke, president; L. S. Buffington, vice president; William Farnsworth, cashier. About a year ago the bank went into a voluntary liquidation to close up its affairs, paying all obligations in full. Mr. Farnsworth, the cashier, and Jacob Rauen, formerly a clerk in the bank, then formed a copartnership to do a private banking business under the name of the old institution. The failure is attributed to unfortunate wheat speculations which were conducted by William Farnsworth, who loaded up heavily and held on until he was so badly sqeezed that he drew on the bank to some extent. Mr. Rauen. who is said to have no knowledge of the speculation until within a few days, was told of the unfortunate condition of affairs. An accounting was taken and an assignment decided upon. It is thought that the deposits amount to about $57,000, there being about 150 creditors. To meet this there is about $31,000 in cash and bills receivable, so a settlement of 50 cents upon the dollar is looked for, unless Peter Rauen, father of Jacob Rauen, comes to the rescue. The creditors, who are almost without exception people of small means, are highly indignant. Deposits were received up to Thursday evening. and the closing of the bank yesterday was a sudden surprise of an unpleasant nature. Mr. Rausen states that the bank will nearly meet its liabilities, but this is doubted. Yesterday suits were commenced in the district court by T. B. Walker to re-


Article from The Worthington Advance, April 1, 1886

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Article Text

NORTHWESTERN NEWS. The First National Bank of Wapheton closed its doors on March 27th. The difficulty is said to have resulted from advances made the Wahpeton Mill and Elevator company. On the morning of the 27th cashier Hayward declined to accept deposits which were offered, saying the bank could not meet its obligations. He says that in time all creditors and depositors can be paid. but to do SO they will have to realize on all their securities and assess the stockholders $20,000 besides. Dunham & Johnson, of Minneapolis, have had Hayward arrested for failing to remit a $500 collection he had made. As the result of the bank failure,Keller & Goodhue,general store closed and the Wapheton Mill and Elevator property being attached also suspended business. Among the confirmations by the Senate on the 25th were the following: Registers of Land Offices-George W. Warter, Tracy, Minn.: William Smith, Crookston, Minn.: Ralph N. Marble, Duluth, Minu. Receivers of Public Moneys-August Peterson, Worthington, Minn: Philip K. Wiser, Tracy, Minn. Surveyor generai of Nebraska and Iowa, Jonathan F. Gardner. Agent for the Indians of the Omaha and Winnebago agencies, Charles H. Potter. Postmasters -R. C. West, Terry, Iowa; William T. Smith, Oscaloosa, Iowa: James F. Vogt, Lemars, Iowa; S. W. Hobbs, Storm Lake, Iowa; David W. Bossert, Jefferson, Iowa; A. K. Weber, Albia, Iowa. The Grand Army of Dakota held its annual meeting at Watertown on the 24th and 25th. A resolution was adapted asking the legislature to make an appropriation for a soldier's home. The following committee was appointed to look after the matter: First district, S. M. Booth; second, D. M. Gross Yankton; third, C. T. Cement, Fargo; Fourth, B. F. Campbell, Sioux Falls; fifth, A. C. Mellette, Watertown; sixth, W. E. Bentley, Bismarck. Committee at large on home: J. E. Bennett, chairman; B. F. Payne, Gen. J. B. Dennis. Jamestown was selected as the place for the next annual meeting, but another meeting will be held at Mitchell in June when the soldiers and sailor's reunion occurs. At 4 o'clock on the morning of March 28th, fire was discovered in the Northern Pacific railroad shops at Brainerd, Minn. The shops are very large and in two sections, one section being wooden and erected by Jay Cooke when the road first began and the other brick and stone erected by Villard at a cost of a million dollars. The latter were the buildings chiefly used and they were unharmed. The frame buildings were destroyed. The loss is about $100,000 and covered by insurance. No men are thrown out of work by the fire. The Bank of North Minneapolis closed its doors on the 26th. It was organized about four years ago under the Statelaw and was owned at the time of the failure by Wm. Farnsworth and Jacob Rauen. The capital stock was $50,000 and the failure was due to Farnsworth's speculations in wheat. Depositors are not likely to receive much. Jacob Hoffman, owner of the flouring mill at Elba, Winona county, Minn., was drowned with his son, aged 18 years. on March 27th. The wheel of the mill became clogged and they went down into the pit to repair the difficulty, when the gate opened and the water rushed in and drowned them. George Pownall a teamster at South Stillwater was found in a dying condition in his barn on the morning of March 28th from a shot in his head. He died a few hours later. The murder theory is raised but the indications point to suicide. Miss Clara A. Root, a teacher in the public schools at Valley City, D. T., committed suicide on the 26th, by taking carbolic acid. She was sister of Herbert Root, President of the Farmer's Merchants National bank at that place. The court martial to try Capt. Garvey will convene of St. Paul April 6. Lieut. Hinton. Eighteenth infantry, and Sergeant Casey, Company I, of that regiment, have been ordered to St. Paul from Fort Gibson as witnesses. The daily Argus at Fargo, D. T., burned out at 5 A. M., on the 26th. But very little was saved from the building. The loss was $40,000 and insurance $8,000. The paper continued without missing a publication. The gross receipts of the marshal's office in Minnesota for ten years have been $86,000, and net earnings $45,000. The district attorney's office has earned in the past ten years $40,000 gross or $36,000 net. The flood at Elk Point D. T., had not abated on the 24th many miles of farms and homes are under water and the damage cannot be estimated until the waters recede, but it will be large and serious. The largest part of the business houses in Glendive, Mont., were destroyed by fire on the 24th of March. The loss was $35,000 and insurance about $10,000. The fire was incendiary. The bill to permit the First National bank of Shakopee, Minn., to increase its capital


Article from River Falls Journal, April 1, 1886

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Registers of Land Offices-George W. Warter, Tracy, Minn: William Smith, Crookston, Minn.: Ralph N. Marble, Duluth, Minn. Receivers of Public Moneys-August Peterson, Worthington, Minn : Philip K. Wiser, Tracy, Minn. Surveyor generai of Nebraska and Iowa, Jonathan F. Garduer. Agent for the Indians of the Omaha and Winnebago agencies, Charles H. Potter. Postmasters -R C. West, Terry, Iowa: William T. Smith, Oscaloosa, Iowa: James F. Vogt, Lemars. lowa: S. W. Hobbs, Storm Lake, Iowa: David W. Bossert, Jefferson, lowa; A. K. Weber, Albia, Iowa. Commissioner Sparks has decided to reverse his ruling, by which he had refused to order surveys until settlements are made. Surveyor General Taylor of Dakota visited Sparks and added arguments to show the ill effects of the decision upon unsurveyed sections, where settlers are desiring to obtain homes and make their homestead entries and the impossibility ofmaking settlements without surveys. The result was that the commissioner decided to reverse his rulings, and permit the surveys to go forward whenever there is information from reliable sources that there is sufflcient demand by actual settlers to warrant the survey. He authorized Surveyor General Taylor to make a survey of some thirtytwo townships in Western Dakota, which hehad applied for the right to make some months ago, but had been refused under former rulings. The Grand Army of Dakota held its annual meeting at Watertown on the 24th and 25th. A resolution was adapted asking the legislature to make an appropria tion for a soldier's home. The following committee was appointed to look after the matter: First district, S. M. Booth: second. D. M. Gross Yankton: third. C. T. Cement, Fargo: Fourth, B F. Campbell. Sioux Falls: fifth, A. C. Mellette, Water town: sixth, W. E. Bentley, Bismarek Committee at large on home: J. E. Bennett, chairman; B F. Payne, Gen. J. B. Dennis. Jamestown was selected as the place for the next annual meeting. but another meeting will be held at Mitchell in June when the soldiers and sailor's reunion occurs. The Bank of North Minneapolis closed its doors on the 26th. It was organized about four years ago under the Statelaw and was owned at the time of the failure by Wm Farnsworth and Jacob Rauen. The capital stock was $50.000 and the failure was due to Farnsworth's speculations in wheat. Depositors are not likely to receive much. Jacob Hoffman, owner of the flouring mill at Elba, Winona county, Minn., was drowned with his son, aged 18 years. on March 27th. The wheel of the mill became clogg and they went down into the pit to repair the difficulty, when the gate opened and the water rushed in and drowned them. George Pownall a teamster at South Stillwater was found in a dying condition in his barn on the morning of March 28th from a shot in his bead. He died a few hours later. The murder theory is raised but the indications point to suicide. Miss Clara A. Root, a teacher in the public schools at Valley City, D. T., committed suicide on the 26th, by taking carbolic acid. She was sister of Herbert Root, President of the Farmer's Merchants National bank at that place. The daily Argus at Fargo, D. T., burned out at 5 A. M., on the 96:h. But very little was saved from the building. Theloss was $40,000 and insurance $8.000 The paper continued without missing a publication. The largest part of the business houses in Glendive, Mont., were destroyed by fire on the 24th of March. The loss was $35,000 and insurance about $10,000. The tire was incendiary. John Nelson, the Vice President of the First National bank at Whapeton, D. T., had a general store which he has turned over to his creditors owing tothe failure of the bank. At o'clock on the morning of March 28th, fire was discovered in the Northern Pacific railroad shops at Brainerd, Minn The shops are verv large and in two seo-


Article from Devils Lake Inter-Ocean, April 3, 1886

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THREE BANKS FAIL. Wahpeton, Minneapolis and Cooperstown-Wheat Deals. The total suspension of the First National bank of Wahpeton, Dak., occurred Saturday. To pay the depositors in full an assessment of $20,000 will have to be levied on the stockholders. Cashier Hayward was arrested at the instance of Dunham & Johnson on a claim of $500 for unremitted collections, embezzelment being charged. Keller & Goodhue, general merchants were unable to meet the demands made unon them by the bank and their store was closed. The Mill and Elevator company has stopped operations. F. C. Geddings, the general manager, has been arrested on a charge of embezzlement, preferred by Dunn & Thompson, of Duluth. WAHPETON, Dak., March 26.-John Nelson, dealer in general merchandise, failed here today. No statement of assets and liabilities has yet been obtained. He did a large business. CLOSED ITS DOORS. Hope Pioneer. News reached Hope on Wednesday that the Bank of Cooperstown closed its doors Tuesday morning. The suspension was caused by the failure of the Lenham Elevator company. The bank was owned by Julius Stevens, a partner of Anton Enger, the county treasurer of Griggs, and H. G. Pickett. The deposits amounted to about $15,000, one-half of which was county and school funds. The capital of the bank was $10,000. It is claimed the Lenham Elevator company owe the bank $10,000, and if, as IS expected, the company is able to meet its liabilities, the bank will be able to resume. Mr. J. L. Wilcox, proprietor of the Hope house, had several hundred dollars in the bank. MORE WEHAT DEALS. MINNEAPOLIS, March 26.-The Bank of North Minneapolis failed this morning. It was a private institution, with William Farnsworth and Jacob Rouen as equal partners. It did a good business and the deposits amounted to $57,000. Two weeks ago it is alleged, Mr. Farnsworth went into a $200,000 wheat dealwheat went down and he put up $2000 daily till $21,000 had been sunk. All the money was extracted from the bank without the knowledge, it is so alleged, of Jacob Rouen. It developed that the bank had only $7,500 capital, to begin with. It had a large line of depositors.


Article from St. Paul Daily Globe, April 13, 1886

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Another Agreement of Creditors. The creditors of the defunct bank of North Minneapolis met en masse at Hintz hall last night, and after a long meeting and consultation with Peter Rouen and Attorney E, M. Wilson, a second agreement was reached. by which Mr. Rouen comes to the rescue of the bank. The agreement is as follows: Agreed and understood between the parties hereto that the proceeds of all assets of the firm of Farnsworth & Rauen, in the hands of the receiver shall be applied according to law.