9778. State Bank (Minneapolis, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 18, 1895
Location
Minneapolis, Minnesota (44.980, -93.264)

Metadata

Model
gpt-5-mini
Short Digest
e6f6b4a5

Response Measures

None

Description

The articles describe the State Bank of Minneapolis as insolvent, with its affairs in the hands of a receiver and large preferred claims by the state. There is no explicit mention of a depositor run in the texts provided. The sequence is a suspension/failure with receiver appointed and later legal actions enforcing stockholder liability (Feb 1896). Dates are taken from article references (April 1895 committee report; Feb 1896 court enforcement).

Events (3)
1. April 18, 1895 Receivership
Newspaper Excerpt
The affairs of this bank, as well as the others, are now in the hands of a receiver.
Source
newspapers
2. April 18, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent; large liabilities over assets and significant amounts due the state; receiver appointed to administer insolvency.
Newspaper Excerpt
On the 18th day of April, 1895, the following amounts were due the state from insolvent banks: ... The affairs of this bank, as well as the others, are now in the hands of a receiver.
Source
newspapers
3. February 8, 1896 Other
Newspaper Excerpt
The District Court has ordered the enforcement of the double liability law in the suspensions of the State and Citizens' banks. There is a deficit of $221,000 in the former case, and the stockholders will be assessed ... (Feb 8, 1896).
Source
newspapers

Newspaper Articles (6)
1. January 17, 1895 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, January 17, 1895

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Article Text

A MINNESOTA SENSATION. $150,000 of Public Funds Said to Have Been Misappropriated. ST. PAUL, Minn., Jan. 16.-A boom-shell was exploded in the House of Representatives this afternoon in the shape of a resolution from Henry Feig, calling for an investigation of the financial affairs of the State, and making charges of misappropriation of public funds to the amount of $150,000, while over $300,000 was asserted to be carried on books as cash, when, in fact, it was on books of banks that have failed. The preamble recites that newspapers have stated that certain public officials, State and county, have demanded or received from financial concerns, commissions or gifts for their own use, in return for the deposit of public funds in such instances; that certain checks indorsed by public officials for cash payments are in the hands of officers of the court and of the receiver or assignee of the State Bank and American Exchange Bank of Minneapolis; that "The amounts so misappropriated will approach $150,000, which sum can and should be covered into the public treasury;" that for their personal gain public officials have deposited vast amounts of the public funds in involvant, or carelessly, if not criminally managed financial concerns and are now carrying as a cash balance $302,841 in alleged banks that have long since failed, making said claim actually valueless as a cash balnce if not for all other purposes while other portions of said alleged cases balances consist of deposits in concerns that if not actually insolvant, are on the verge of ruin; that the States treasurers have carried on their books for uncollected stumpage $94,930, being practically so much loaned to lumbermen by the State without interest to the State, "however much may have been paid to any others." The resolutions then provide for the appointment of a committee to investigate the matter thoroughly.

2. January 17, 1895 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, January 17, 1895

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Article Text

# SHELLING THE WOODS. ## Henry Feig's Resolution to Smoke Out All Kinds of Frauds. The shouse met at 2 o'clock, pursuant to adjournment, and immediately foilowing prayer and roll call Representative Henry Feig introduced a somewhat sensational resolution-sensational in the extent of the corrupt practices it charges. The resolution is as follows: Whereas, It has been publicly stated in the press of this state, on examination and report by a competent accountant, that certain public officials-state and county-having charge of the public funds have heretofore demanded or received from certain financial concerns private commissions, gifts or emoluments in consideration or depositing certain public funds with such financial concerns, which commissions, emoluments or gifts have been appropriated to the private use and gain of such public officials, and contrary to the statute in such case made and provided; and Whereas, It is stated that certain checks for the payment of such illegal emoluments, commissions or gifts, and bearing the indorsement of certain public officials, are now in the custody of the courts of Hennepin county, or in the hands of the receiver or assignee of the State bank and American Exchange Bank of Minneapolis; and Whereas, It is believed that this practice has been going on for many years, and that the amounts so misappropriated will approach $151,000, which sum can and should be covered into the public treasury, thus materially lessening the burdens of the taxpayers, and Whereas, By reason of the pernicious practice and desire for unlawful personal gain, public officials have deposited vast amounts of the public funds in insolvent or carelessly, if not criminally managed financial concerns, and are now carrying as a cash balance $3,2.841.02 in alleged banks that have long since failed, making said claim actually valueless as a cash balance, if not for ali other purposes, while still other portions of said alleged cash balances consist of deposits in concerns that, if not actually insolvent, are on the verge of ruin; and Whereas, It has been stated that the amount of public funds deposited in financial concerns of this state is nearly equal, if not in excess of the actual amount of cash on hand by said concerns as a whole, and it is imperative that the public funds should be held as a sacred trust for the whole people and not to be used by public officiais and financial concerns for their own unlawful gain, or unnecessarily jeopardized or wasted; and Whereas, It appears by a report of the pine land investigating committee, filed with the governor on Dec. 21, 1891, that for many years last past the state treasurers have carried on their books on overdue drafts vast sums of money, due for uncollected stumpage, amounting in October, 1898, to $91,930.55; and Whereas, In addition to such amounts it appears that the state has been engaged in loaning money for an indefinite number of years to lumbermen, for which the state has seldom, if ever, received any interest, however much may have been paid to any others, if at all; therefore, be it Resolved. That a special committee of five members of the house be appointed by the speaker with instructions to forthwith institute First-A rigid inquiry into the financial condition and business affairs of banking or other corporations in this state which now hold on deposit or otherwise any public funds whatsoever. Second-A rigid inquiry into the manner in which public officials for a series of years past have been induced to place public funds in financial concerns, and especially to ascertain whether any present or past public official has received for his own private use or gain from any such financial concern, either directly or indirectly, any commission, emolument or gift. Third To institute inquiry as to the amount of public funds deposited in financial concerns since insolvent, and at whose instance deposited, when deposited, and whether any public official received any personal consideration therefor, together with all names. Fourth To institute inquiry into the amounts now or heretofcre deposited by any public official in any financial concern, of which any such public official was, or thereafter became an officer or stockholder. Fifth To institute inquiry into the amounts of bonds given by any financial concern for the deposit of public funds, and ascertain the names of such bondsmen, as near as may be their financial condition, their connection with the public official-making, and the institution receiving any such deposit, and the validity of such bonds. Sixth-To institute any and all other inquiries in connection with the subjects under investigation by the committee as may be found necessary to serve the ends of justice. Resolved, further, That said committee shall be and it is hereby empowered to send for persons and papers, and to have authority to summon and swear witnesses: also to employ such expert accountants as may be necessary, and a stenographer. Resolved, further, That all bills consequent upon this investigation shall, upon presentation, be audited by said committee, and when approved the chief clerk of the house shall draw his order in payment of the same. A communication was read from the game and fish commission inviting members to visit the state hatchery. Mr. Buck Introduced a resolution looking to the election of E. A. Taylor as reading clerk, which was referred to the committee on legislative expenses. Mr. Knuteson renewed his resolution to provide six copies of each day's journals for members who desired them, and this also went to the committee on legislative expenses. The citizens of Lakefield presented a petition asking for legislation calculated to check the growth of Russian thistle. The following bills were introduced and referred to the committees named in connection with each: By Mr. Geissler, H. F. 21. a bill to appropiate $5,000 for the opening of Lime creek in Freborn county. Roads and bridges. By Mr. Gibbs, H. F. 22, to define the powers of safe and trust companies. Judiciary. By Mr. Johnson, H. F. 23, to require railroads to post notices of train schedules in all depots. Railroads. By Mr. Johns, H. F. 24, to constitute certain legal works competent authority. Judiciary. By Mr. Smith, H. F. 25, to amend the General Laws of 1878-89 relating to filing of chattel mortgages. Judiciary. By Mr. Dahl, H. r. 26, to amend the special act of 1887, and to provide for two additional judges in the Fourth judicial district. Judiciary. By Mr. Zeir, H. F. 27, to require a public record of unknown and unclaimed bank deposits, and the publication of the same by judges of probate. Banks and banking. By Mr. Dahl, H. F. 28, to prevent fraudulent bankruptcy; guard against losses by same. Judiciary. By Mr. McInness, H. F. 29, to provide for the organization of boards of arbitration in case of labor strikes or disagreements. Judiciary. Ru My Saburmeler HE

3. March 31, 1895 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, March 31, 1895

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MINNEAPOLIS. MINNEAPOLIS GLOBULES. On April 1 four additional mail carriers will be put to work by Postmaster Holbrook. This swells the list of carriers and collectors in Minneapolis to 111. The Ladies' League of the Fowler M. E. Church gave a thimble bee at the residence of Mrs. Frank A. Cotharin, 1901 Hennepin avenue, Friday evening. Among those present were Bishop and Mrs. Fowler. A gang of burglars, evidently old hands at the business, robbed the supply house of the Freudenfeld company, at 113 Washington avenue north, Friday night, securing about $1,000 worth of goods. Joseph Taylor, who was arrested Friday night on a charge of making counterfeit money, was arraigned yesterday before Commissioner Bowen. He was remanded to jail pending an examination. Suit has been brought in the municipal court to recover $500 damages from L. H. and W. H. Bailey, by F. M. Pike, who alleges that the Baileys gave him the barbers' itch, which destroyed his whiskers. The board of education has lately been considering the advisability of equipping the larger schools with male principals, believing that refractory pupils would be more inclined to obey the rules laid down by men teachers. The breaking of a trolley wire at Midway about 9:30 yesterday morning caused a panic among the passengers, the trolley having knocked off four or five of the arms of the supporting posts. The car was stopped, however, before any one was hurt. State Grain Inspector Clausen was yesterday visited by John W. Currie, George H. Keyes, John J. Wamberg, the new railroad and warehouse commissioners of North Dakota, who were in search of information relative to the inspection and weighing of grain. Judge Smith yesterday filed his decision in the case of Augusta A. Haney vs. Charles F. Haney, in which the custody of the child is given to the former Mrs. Haney, and $25 per month granted for its support. The order allowing the mother alimony was set aside. Proofs of claim in the action of Hans Olson vs. The State Bank were heard before Judge Belden yesterday. Attorneys representing over 200 depositors were present, and claims aggregating $396,352.81 were recognized. The largest claims are those of A. C. Haugan, city treasurer, $106,665.25; the state of Minnesota, $75,633.76; the county of Hennepin, $64,703.10, and the American Exchange bank, $38,000. A two-story frame residence at 816 Fourth avenue south was the scene of a quick but disastrous fire yesterday afternoon. The fire started in the basement, and before the department extinguished. it. the owners had sustained a loss on building and contents of about $1,600. The loss is covered by insurance. Prof. Hove and Dr. Murray, of the registration committee, will be at the

4. April 23, 1895 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, April 23, 1895

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our other duties as members of this house. Your committee, according to Resolution 3, also saw fit to institute an Inquiry as to the amount of public funds deposited in financial concerns, since insolvent, and at whose instance deposited, when deposited, and whether any public official received any personal consideration therefor, together with all names. On the 18th day of April, 1895, the following amounts were due the state from insolvent banks: American Exchange bank 18,052 61 Farmers' and Merchants' State bank 27,219 93 State bank, Minneapolis 75,253 42 Bank of New England 11,208 35 Total $131,739 36 Your committee desires to call attention to the fact that of the foregoing amount the sum of $75,258.42 is due the state from the State Bank of Minneapolis. The affairs of this bank, as well as the others, are now in the hands of a receiver. The evidence of the attorney general, Mr. Childs, lead your committee to believe that everything possible has been done to protect the interest of the state, before the different assignees. By virtue of a decision of the courts the state has become a preferred creditor, and as soon as collections are made by the different assignees they are paid over to the state, and this will continue until the entire amount due the state from these banks has been paid. Your committee are of the opinion that there are sufficient assets in each case to fully satisfy the amounts due the state, and even should that not be the case, then there are other methods by which the state can collect the amounts due it. First, by instituting suits against the bondsmen of these banks, and the stockholders, and should not this avail, then the state treasurer or his bondsmen are liable. The bond given by Mr. Bobleter, the ex-treasurer of state, who made these deposits in these banks, is in the sum of $400,000, with good and sufficient sureties. There is absolutely no danger of the state losing one cent on account of the insolvency of these banks. In due course of time every cent due the state will be collected, and it is simply a question whether upon these amounts the state will receive 3 per cent or 7 per cent interest. The state has three bonds from the State bank. The first bond is dated 27th day of January, 1887, for $200,000, and signed by the following sureties: John Paulson, O. I. Johnson, C. C. Dumn, Kristian Kortgaard and C. H. Shove. Bond No. 2, dated 13th day of April, 1887, amount, $80,000, signed by the following sureties:

5. February 9, 1896 New-York Tribune New York, NY
Article from New-York Tribune, February 9, 1896

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Mrs. Winslow's Soothing Syrup has been used for over FIFTY YEARS by MIL LIONS of MOTHERS FOP. THEIR CHILDREN WHILE TEETHING with perfect SUCCESS. It SOOTHES THE CHILD. SOFTENS THE GUMS, ALLAYS ALL PAIN, CURES WIND COLIC, and is the BEST REMEDY FOR DIARRHOEA. Sold by druggists in every part of the world. Twenty-five Cents a Bottle. the judgment creditors, has already taken possession of the property here. The office of the company in New-York has been taken possession of by W. P. Butler, an attorney. Minneapolis, Feb. 8.-The District Court has ordered the enforcement of the double liability law in the suspensions of the State and Citizens' banks. There is a deficit of $221,000 in the former case, and the stockholders will be assessed 86 per cent in the latter case, Dayton, Ohio, Feb. 8.-The R. M. Connable Company, manufacturers of overalls and heavy clothing. capital stock $125,000, assigned here last night to B. F. Hershey for the benefit of creditors. The assets and liabilities are not stated, but the failure is said to be a bad one.

6. February 13, 1896 The Redwood Gazette Redwood Falls, MN
Article from The Redwood Gazette, February 13, 1896

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LIABILITIES. Of Bank Stockholders According to Hennepin Judges. Judges Elliott and Belden of the district court in and for Hennepin county, handed down two important decisions in connection with the insolvency of the Citizens] and State banks in Minneapolis, last Saturday. The decisions, if sustained by the Supreme Court, and it seems that they are based on previous decisions of the higher court, will eventually be pointed to by the creditors of the insolvent Citizens Bank of Redwood Falls, and the stockholders of the latter are likely to be losers thereby. In fact, according to the spirit of the decisions of the two Hennepin county judges, where some stockholders themselves are insolvent and others are solvent, the latter can be held liable for the full amount of stock held by the insolvent stockholders. In anticipating the cases the Minneapolis Journal of last Friday states that the State Bank failure was the worse of the two, on account of the large amount of liabilities over assets. It says that the amount of the direct loss will be much larger than at first supposed because a number of the stockholders have since become insolvent. It continues: "This will throw the liability on the stockholders who remain solvent, and there is little doubt but that they will all have to pay to the utmost limit of their liability. "The amount of the State's preferred claim against the bank is $75,633.76, and the amount thus far collected OVer the costs is $10,772.47. It is found : that the largest amount that can possibly be realized over the State's claim is $45,000, and in consequence the bank's creditors will scarcely realize more than 10 per cent from its assets, and not more than 50 per cent, after the stockholders' liabilities are enforced. 1 "In a number of cases the present I holders of stock in both banks are B those to whom it has been transP t ferred, and in case they are at present insolvent, the transferors of stock to ) them can and will be held liable, in case the transfer was made within one b L year prior to the assignment. A re1 ceiver will have *to be appointed to collect from the stockholders of the : Citizens' Bank. b "The two suits to enforce the liabilt ity of stockholders in the two suits were brought and fought through $ : against tremendous opposition by John W. Arctander and W. S. Dwinnell respectively, the former carrying ) the case of Olson against the State 8 bank and the stockholders to the su1 preme court, which overruled the dea murrer of the stockholders to the S complaint and paved the way for the S completion of the two actions." 0