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Minneapolis Now Feels It. MINNEAPOLIS, May 17.-The Citizens Bank has suspended and a receiver has been asked for the Northwestern Guarantee Company.
9717. Citizens Bank (Minneapolis, MN)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- May 17, 1893
- Location
- Minneapolis, Minnesota (44.980, -93.264)
Metadata
- Model
- gpt-5-mini
- Short Digest
33464a17
Response Measures
None
Description
The Citizens' Bank of Minneapolis suspended payment on May 17, 1893. Officials claimed the bank was solvent but could not realize on securities; depositors were to be paid in full. The bank made a general assignment for the benefit of creditors on July 8, 1893 (i.e., permanent closure/insolvency and assignment). No article describes a depositor run on Citizens Bank itself (runs referenced concern other Minneapolis banks), so this is a suspension leading to closure/assignment.
Events (2)
1.
May 17, 1893
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank suspended because it could not promptly realize on its securities (liquidity problem); officials asserted solvency.
- Newspaper Excerpt
- The Citizens' bank has suspended payment. A notice on the door says depositors will be paid in full. The officials declare the bank is perfectly solvent, and that the suspension is due simply to its inability to realize promptly on its securities.
- Source
- newspapers
2.
July 8, 1893
Receivership
- Newspaper Excerpt
- made a general assignment for the benefit of its creditors, under the insolvency law of 1893. Walter N. Carroll was appointed assignee, and is made a co-defendant in the action.
- Source
- newspapers
Newspaper Articles (15)
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Bank Failure at Minneapolis. MINNEAPOLIS, May 17.-A good deal of surprise was manifested this morning, when the Citizens' bank suspended payment. A notice on the door says that depositors will be paid in full. The officials declare that the bank is perfectly solvent, and that the suspension is due simply to its inability to realize promptly on its securities.
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Banks Suspend. MINNEAPOLIS, May 17.-The Citizens' bank has suspended and a receiver has been appointed as asked for by the Northwestern Guaranty company. WATERLOO, Ia., May 17.-The First National bank of Cedar Falls has suspended. Liabilities, estimated, $100,000 to $150,000. The bank is said to be solvent any able to pay all claims in full.
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Chicago Grain Market. QUOTED BY A. P. WEEDEN. OpenLow. HighClos. WHEAT ing. est. est. Ing. 73 May 7116 July 616 764 7th 74% September 79% 79y 775g 79M CORN July 43M 43% 43% 431-64 September 44% 4494 43% 43% OATS May 2916 2914 July 2916 2014 2876 2874 September 263g 26% 26% 26% FORK July .20 85 20 85 20 50 20 60 September 21 05 21 05 20 77 21 80 CARD July 10 90 10 90 10 65 10 65 September 11 15 11 15 10 90 10 90 ANOTHER BANK FAILURE. The Citizens of Minneapolis to Go Into Hands of a Receiver. MINNEAPOLIS, May 17.-The Citizens bank has suspended and an application for a receiver has been made by the North Western Guaran y company. The capital of the bank 1. $250.000
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STILL SUSPENDING. An Epidemic of Failures Has Struck Minnesota Banks. MINNEAPOLIS. May 17.-The Citizens' bank suspended payment this morning. A notice on the door says depositors will be paid in full. The officials declare the bank perfectly solvent and that suspension is simply due to inability to realize on securities. The cashier says the bank will resume by Monday next at the outside. The Citizens' is one of the smaller state banks and has a capital of $50,000. The deposits May 4 amounted to $283,913.
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Two Failures at Minneapolis. Minneapolis, May 17. - The Citizens' Bank has suspended and a receiver has been asked for the Northwestern Guarantee Company,
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BANK SUSPENSION. Minneapolis May 17.-The Citizens' Bank suspended payment this morning. A notice on the door says depositors will be paid in full. The Citizens' is one of the smaller state banks, it has a capital of $25,000. The deposits on May 4th, amounted to $283,513.
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MINNEAPOLIS BANKS. The Run on One of Them Exhausts Itself-Two Suspensions. MINNEAPOLIS, Minn., May 17.-Therup on the Farmers & Merchants bank, which began Saturday afternoon and which reached its climax yesterday, completely exhausted itself today. The Citizens' bank suspended payment this morning, a notice on the door saying the depositors will be paid in full. The officials declare the bank is perfectly solvent, and that the suspension is simply due to inability to realize on securities. The cashier says the bank will resume by Monday next at the outside. The Citizens' bank is one of the smaller state banks, and has a capital of $250,000. The deposits on May 4th amounted to $283,943. A special says the Bank of Zumbrota has suspended payment. It has $30,000 cash on hand, but its load of $80,000 in paper was too heavy. The capital stock is $25,000.
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A MINNEAPOLIS STATE BANK SUSPENDS. Minneapolis, May 17.-A good deal of surprise was manifested this morning when the Citizens' Bank suspended payment. The notice on the door says that depositors will be paid in full. The officials declare that the bank is perfectly solvent. and that the suspension Is due simply to its inability to realize promptly on its securities. The Citizens' is one of the smaller State banks of this city. Its statement at the close of business May 4 shows loans and discounts $478,844 cash on hand and due from banks, $60,000; deposits, 8283,913; surplus and profits, $16,800; rediscounts, $76,500. The capital is $250,000. The suspension is at worst only temporary. There had been no run on the bank and the action was taken to protect all depositors alike. The run on the Farmers and Mechanics' Savings Bank is about over, only a few of the more Ignorant depositors appearing at the paying teller's window this morning. The bank has come out with flying colors and faith in its solidity is renewed. Goodnow & Lawther, coal dealers, made an appllcation In Judge Russell's court 10-day asking that the Guaranty Loan Company be required to show cause why a receiver for the company should not at once be appointed to take charge of Its affairs. Judge Russell granted the application and signed an order citing the Guaranty Loan Company to appear at 2 p. m. to-morrow in answer to the application. It is understood that the proceeding is of a friendly character. and that the application was made by agreement of and after consultation between the company and some of its creditors.
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THE LATEST. THE 17th was Norwegian day at the world's fair. The Minnesota building was dedicated the same day. THE president has appointed Robert T. Hough. of Ohio, to be solicitor of internal revenue and John Daggett. of California. to be superintendent of the mint at San Francisco. THE National Cordage Co. claims to have many millions of assets over liabilities. A CALL for $2,500,000 more gold has been made for export to Europe. THE South Carolina liquor law has been sustained by the state supreme court. THE Citizens' bank of Minneapolis, Minn., has suspended. JUDGE H. D. TWIGGS, of Augusta, Ga., who recently secured a divorce at Sioux Falls, S. D., was married at the Stanton, house, Chattanooga, Tenn., to Mrs. Cornelia A. Harrison. a charming young widow of Charleston. S.C. THE report of the piano committee calling for the resignation of Director of Music Theodore Thomas, was adopted by the world's fair national commission by 38 to 20. A COMPROMISE has been effected between the imprisoned St. Clair county, Mo., judges and the bondholders at 50 cents on the dollar at 4 per cent. interest. This makes the debt $400,000 with $16,000 annual interest. CONGRESSMAN WILSON, of West Virginia, who is to be chairman of the committee on ways and means, is busily engaged in framing a new tariff bill. THE Bank of Zumbrota at Zumbrota, Minn., has suspended payment. It had $30,000 in cash on hand at the time of suspension, but its load of $80,000 in paper was too heavy. THE contract for the sale of the Cherokee strip was signed at Washington on the 17th. THE president was not satisfied with the findings of the court martial on Capt. W. A. S. Johnson at Fort Leavenworth. Johnson was charged with not paying his debts. IN the Bohemian diet there was a col. lission between the Germans and Czechs which ended in a scene of riot and disorder. THE most important happenings in Honolulu, recently is the appointment of Thurston to succeed J. Mott Smith as minister to Washington. THE schooner Pelican was capsized in Lake Erie. off Ashtabula, O., and three men were drowned. By the capsizing of a tug and dredge boat on Lake Conneaut, O., five persons were drowned.
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THE doors of the Citizens' bank of Minneapolis, with a capital of $250,000, were closed, and the Bank of Zumbrota, at Zumbrota, Minn., suspended payment. CHIEFS of police of many cities met in Chicago and organized a national union with W. S. Seavey, of Omaha, as president. THE wife of Michael Bierge, a wealthy farmer residing near Barnard, Mo., suddenly became insane and killed her 5months-old babe and cut her own throat, dying instantly. THE will of Bishop Ames, of the Methodist church, after standing fourteen years was broken at Baltimore, and the estate, valued at between $150,000 and $200,000, will now be divided according to law. REPRESENTATIVE negroes of South Carolina met in Columbia and adopted resolutions in which lynching was condemned and an appeal made to the humane people of the state to aid them in suppressing any attempt to violate the law by lynching. THE Brunswick national bank and Oglethorpe national bank, both of Brunswick, Ga., suspended, and M. Ullman, president of the Oglethorpe, committed suicide. FLAMES of an incendiary origin swept away seventeen business houses and residences at Montfort, Wis. Loss, $100,000. THE doors of the Evanston (III.)/national bank, with a capital of $100,000, were closed. FIRE in the building occupied by the Dr. Price Baking Powder company in Chicago caused a damage of $115,000. THE King Iron Bridge company's works at Cleveland, o., were damaged to the extent of $150,000 by fire. IN the jail yard at Lake Charles, La., Lewis Taylor (colored) was hanged for assaulting a negro woman some months ago. FREDERICK C. SCHENCK, for seventeen years consul to Barcelona, Spain, beginning in Hayes' administration, died at Lafayette, Ind., aged 53 years. THE death of James E. Murdoch, the famous tragedian, aged 83 years, occurred at his suburban home near Cincinnati of various ailments combined with old age. IN session in St. Paul the international convention of press clubs elected John A. Cockerell, of New York, as president. It was decided to establish a home for aged and infirm journalists. AT Bellaire, O., Ethelinda Mayhue has brought suit for divorce against Oliver Mayhue, a grocer. They were married April 20, 1854, and have fourteen children. Cruelty was the charge. THE directory of the world's fair adopted a rule that for the future all children under 12 and over 6 years of age will be admitted to the fair for twenty-five cents. IN the southeastern Kansas coal fields 5,000 miners struck for higher wages. FIRE suffocated twenty-five horses belonging to the People's Outfitting company in Chicago.
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MINNEAPOLIS. MINNEAPOLIS GLOBULES. Borglars robbed the store of 0. R. Williams at New Brighton on Friday night of $150 worth of boots and shoes. Sheriff Ege has issued orders that visitors will not be allowed at the jail except between the hours of 2 and 4 on Tuesdays and Fridays. Charles Sands. the tennis player who took part in the tournament at SL Louis two years ago, died recently of consumption in California. Tonight at 6:10 the G. A. R. train will leave over the St. Louis road for Indianapolis. It is thought that about 200 members of the order will go. Inspectors Hankinson and Stavlo arrested O. Estes last evening at the request of the St. Paul police, who want the man to answer to the charge of grand larcenv. Supt. Jordan addressed the teachers in the public schools at the Central high school building yesterday morning. As Monday is Labor day, the schools will_not open nutil Tuesday morning. Ole Roge and Juiia Abstlelt were arrested by Court Officer Tom Byrnes last evening on a warrant sworn out by Mrs. Roge, who charges the couple with adultery. W.N.Carroll, assignee of the Citizens' bank. has filed a complete list of clain against the institution. The total amount of claims allowed is $207,058.32. while claims amounting to $102.04 were disallowed. At-a meeting of the congregation of the First Presbyterian church Thursday night. after the usual prayer meeting. the resignation of Rev. J.S. Black was accepted. Mr. Black will leave in a few weeks for a tour of Europe. B.W. Snow, of Chicago, arrived at the West hotel lastevening, dining with his cousins, O'Rourke Brothers. The party took a drive in the country to the residence of Michael O'Rourke, where a general family reunion took place. The "Charles Mack" who won the running race at St. Cloud yesterday from James Maybury, of that city, was none other than Capt. Cragie, of the Minneapolis fire department, who is one of the fastest sprinters in the Northwest. It was the first time that May bury had been defeated. The August report of the poor department shows that 474 applications for aid were made and 495 individuals were assisted. Twelve persons were sent to private hospitals and eight to the poor farm. The poor farm expenses were $473.14. The city physicians made 590 visifs. The Humboldt Mill company has filed a certificate of incorporation. The capital stock is piaced at $200.000. divided into 1.000 shares. The stockholders are W. H. Hinckle, F. B. Foote and Alfred H. Smith. This is simply an incorporation of the firm which has been operating the Humboldt mill. The Wilbur Opera company will return to the Grand tomorrow evening for an engagement of six mights and two matinees. The repertoire for the week includes the following operas, and the order III which they will be given: "The Royal Middy," "Nell," "Gwynne," Fra Diavolo," "Dorothy Bohemian Girl." "Indiana" and "Falka."
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STOCKHOLDERS OF BANKS Are Interested in a Case Coming Up Today. The question of the statutory liability of stockholders in banks for the debts of the banks will be argued in the supreme court today in the more or less notorious case of the Citizens' Bank of Minneapolis, which made an assignment during the panic of July, 1893. The sale of the assets netted the creditors 29 per cent of their claims. J. C. Harper, the plaintiff in the action which comes up today, had a judgment against the bank which was returned unsatisfied. He now seeks to have the judgment entered against all the stockholders within the jurisdiction of the court except a few for the full amount of their statutory liability. The stockholders who are made defendants insist that if the total debts in the case had been but a thousand dollars, the plaintiff-if this judgment is correct-could have entered a judgment against every one of these stockholders for double the amount of their statutory liability, which in this case would have been about $420,000. The very object and purpose of an adjudication has to a large extent falled in this case. One of the most important determinations SO far as the defendant stockholders are concerned has not been made by the court. Not one of these defendant stockholders can tell from this judgment the amount payable by him. It is attempted by this judgment, to the extent that the amount adjudged against him exceeds the amount which he under the law should pay, to make each defendant a surety for other defendants, and a joint debtor with the other defendants to that extent. This is contrary to both the letter and the spirit of the statute. It was the plaintiff's duty to allege and prove, and it was the duty of the court on proper allegations and proof to find who, if any, of the stockholders were insolvent and who, if any, of the stockholders were beyond the jurisdiction of the court, and having determined, by its judgment or findings, those facts, to then apportion the indebtedness among the remaining stockholders, and thus definitely determine the amount payable by each. The judgment is also excessive because, contrary to the constitution of the state, it adjudges the defendants to pay double the amount of stock held by them, instead of a liability thereon for once the amount of their stock. This point is covered by the brief of counsel for other appellants, and we do not deem it necessary to repeat here their argument. We simply refer to the same and urge upon the court the correction of this error by the proper modification of the judgment. The court below should by this court be directed to so modify its judgment as to apportion the total liability among all the defendants within its jurisdiction pro rata in proportion to the respective amounts of stock held by them.
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EACH ONE MUST PAY SUPREME COURT HANDS DOWN A DECISION TOUCHING BANKING MATTERS. THE HOLDERS OF BANK STOCK ARE LIABLE FOR DOUBLE THE AMOUNT OF STOCK HELD BY EACH. JUDGMENTS MAY BE OBTAINED For This Amount Whether the Ag. gregate Sum Is Greater Than That or Not. The supreme court, by Jistice Canby, yesterday handed down a long decision defining in detail the liability of the stockholders in the suspended bank. The decision is in an action brought by J. C. Harper to enforce the statutory liability of the stockholders of the Citizens' Bank, of Minneapolis, which suspended payment May 1, 1893, and on July 8, of that year, made a |general assignment for the benefit o its creditors, under the insolvency lav of 1893. Walter N. Carroll was appoint ed assignee, and is made a co-defendan in the action. The assignee paid the creditors 29 per cent. of their claims which is said to be all that will be real ized, unless something is collected oi judgments against apparently insolven debtors of the bank. Harper, the plain tiff creditor, in his action, makes al the resident stockholders parties. Ir
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LIABILITY OF STOCKHOLDERS. Supreme Court Renders an Exhaustive Decision. The Supreme court has during the past week, handed down a decision that bears indirectly on the insolvent Citizens Bank of this place, defining the liability of stock holders in suspended panks and holding that each stockholder must pay his or her share. The decision is in an action brought by J. C. Harper to enforce the statutory liability of the stockholders of the Citizens' Bank, of Minneapolis, which suspended payment May 1, 1893, and on July 8, of that year, made a general assignment for the benefit of its creditors, under the insolvency law of 1893. Walter N. Carroll was appointed assignee, and is made a co-defendant in the action. The assignee paid the creditors 29 per cent. of their claims, which is said to be all that will be realized, unless something is collected on judgments against apparently insolvent debtors of the bank, Harper, the plaintiff creditor, in his action, makes all the resident stockholders parties. In response to an order from the court 337 creditors filed claims, aggregating $202,524.50. The 29 per cent. paid in dividends was deducted, leaving a balance due, principal with interest, to Feb. 8, 1896, of $175,223.69. The capital stock of the bank was $250,000, of which $28,800 was held by non-residents, on whom no service was made. Judgment for double the amount of his stock was made against each resident stockholder, except J. N. Barnes, who seems to have been overlooked. Judgment for double the amount of his stock was also ordered against each prior stockholder who had disposed of his stock within a year before the assignment. The aggregate amount of judgments secured is $513,200. Now comes the question as to the amount each stockholder, prior and present, shall pay. The court holds that the liability of prior stockholders is only secondary. In the lengthy syllabus it is held that stockholders are liable to judgment against them for double the amount of their stock, although if there is any portion of such amount not used in paying off creditors the sum must be returned to the stockholder. In case where the bank becomes insolvent and suspends payment one year after a transfer of the stock has been made the stockholder so transferring becomes as liable as the party to whom the stock is transferred, although the transfer is only secondary liable, and execution cannot issue against him until his trans-