9834. National Farmers Bank (Owatonna, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4928
Charter Number
4928
Start Date
September 7, 1926
Location
Owatonna, Minnesota (44.084, -93.226)

Metadata

Model
gpt-5-mini
Short Digest
eaeaf44f

Response Measures

None

Receivership Details

Depositor recovery rate
55.2%
Date receivership started
1926-09-10
Date receivership terminated
1939-03-08
Share of assets assessed as good
40.8%
Share of assets assessed as doubtful
55.0%
Share of assets assessed as worthless
4.2%

Description

The bank suspended business in early September 1926 (examiners took charge). Later reporting (1929) discusses a receiver and liquidation with distributions to depositors, indicating the bank did not resume normal operations and entered receivership. Articles do not describe a depositor run prior to suspension; cause given as frozen assets/insolvency.

Events (4)

1. June 21, 1893 Chartered
Source
historical_nic
2. September 7, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed by order of directors; examiners cited frozen assets and need for reorganization of the bank's affairs.
Newspaper Excerpt
For the first time in years an Owatonna bank failed open its when the National Farmers Bank of this city suspendbusiness Tuesday night. ... The closing of the bank was due to frozen assets. ... the national bank examiner has taken full charge.
Source
newspapers
3. September 10, 1926 Receivership
Source
historical_nic
4. April 5, 1929 Receivership
Newspaper Excerpt
Receiver Declares Attitude of Business Men, Others, Aiding Liquidation Is of Best. ... Herbert E. Skinner, receiver for the closed bank, and read before the Lions club ... The Farmers bank has returned half million dollars of its locked up deposits to those entitled to receive them and will return more.
Source
newspapers

Newspaper Articles (3)

Article from The Austin Daily Herald, September 9, 1926

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Article Text

Held Out For Opening Of Owatonna following account of the ing of the National Farmers Bank Owatonna is taken from the Owatonna Peoples Press of today: For the first time in years an Owatonna bank failed open its when the National Farmers Bank of this city suspendbusiness Tuesday night. The bank, which for years had been strong business stitution in Owatonna was closed by order of the Board of Directors, and national bank took charge. the time of the suspension of business. the bank had capital stock of with surplus deposits that ed approximately Besides Mr. Madland of Minneapolis, who has full charge of the bank head examiner of the Ninth Federal Reserve came here to look over the situation. The closing of the bank was due to frozen assets. There to appears be some bilities in effecting reorganization of the bank. At this time much too early to forecast what requirements will necessary to bring this about, Examiner Madland and his assistants have only taken charge since yesterday morning. The work of the examiners require several days checking the records. There is believed some feasibility in reorganized tion. wherein the depositors and shareholders would reap some benefit. Such movement. however, must come from the depositors themse!ves, and has been suggested that depositors form themselves into Depositors' Committee to wait upon the as is evident that the Comptroller of Currency and his representatives more than willing to give audience to any substantial plan. Everything possible was done the officials of the bank avoid closing up for the present. Carl Bennett. president of the bank. and Guy vice-president. their effort remain placed all their personal assets at the dis. posal of the bank Thompson cashier At meeting held Minneapolis on Tuesday an attempt to rehabili tate the bank was made without sorting suspending the tion. Wednesday morning the only tice that appeared on the door "Bank closed. by order the Board Directors. The National Bank aminer has taken full charge. (Signed) Madland. Bank Exam- The Farmers National Bank organized in 1873 with capital stock of $50,000. In 1878 the capistock was increased to $60,000 in 1884 to The president of the bank time Leonard father of the present head of the institution. years Mills. Co. bank failed here and into the control of the Farmers National bank, being partially built 1872. Hope was expressed among bustness men of Owatonna and rounding towns that the bank be reorganized and keep the half century record clear and also save all the depositors any the examiners under Mr. Madland only started work yesterday morning will be several days fore any full report can made forecast just what requirements necessary to save the Institution: Czech Honer Society Prague. Sept. honor belong to luchacek absolventek here. the federation of sity graduates numbers but 230 women. From its ranks Dr Paulova has been ed lecturer history of the Balkan the first be professor.


Article from Phillips County News, February 14, 1929

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Article Text

NOTICE OF SCHOOL DISTRICT BONDS NOTICE IS HEREBY GIVEN, by the Board Trustees of School Phillips County, State of Montana, that the said Board Trustees will on 2nd day 1929, the the said district, sell to the highest and best bidder for either amortization or serial bonds said school district the Fifteen Dollars ($1500 for the purpose of building one (1) school house and furnishing and equipping the same, and purchasing the necessary Amortization bonds will be the first choice bonds will be the second choice the said School Board. If bonds are sold and sued the entire into one single bond into bonds, as the of Trustees may determine at the time of sale, principal and interest payable installments period twenty (20) years from the date serial bonds are issued and sold they will the $75.00 each, cept the bond will amount of 00; the of the said serial bonds will the 15th day and the day thereafter all bonds paid, except that the last will the amount of The bonds, whether serial bonds, bear date of 15th day December, bear interest rate not exceeding six per centum (6%) per the 15th day of and 15th June and will full on pay. ment date from and after five years from the of said be for Interest, and all bidders must state lowest rate of interest which they the bonds purchase of reject any and and to sell the said bonds at private sale. other than on behalf the ers accompar a certified check in the payable to order the Clerk which will be feited by successful the event bonds. shall refuse to purchase the All bids should be addressed to the undersigned clerk. H. Chairman, School No. of Phillips of Attest: Address, Content, MILLAR School District No. 27. Address, (Jan. 17-Feb. 14) NOTICE FOR PUBLICATION Isolated Tract Public Department of the Interior, P S. Land Office at Great Falls Montana, January NOTICE the hereby Commissioner given that, the directed by Land office, under provisions Sec pursuant the Arnold Montana, Serial 073532. we will at public to the highest but than 10:00 the 25th day of at this office, the following tract of land containing ordered the market This traet that the greater portion showing for thereof is land be offered United subject easement right agreeStates, of as provided ment, for June 1902 under thereto. amendatory not be kept open, but declared closed will hour named ceased ent the making highest bid required to immediately pay be amount thereof. the Receiver adversely the Any persons land claiming are advised to objections, on or their claims, designated fore the time NICHOLSON, Register. (Jan. CLAIM OF TAX TITLE NOTICE OF A hereby given Notice claims tax the Phillips County, Montana, property, to-wit: North half of Section twenty- North. in Township eight, Montana Range 320 acres, more Meridian. according containing to the thereof. Survey acquired on the 31st deed was by undersigned, day of that amount Amos and thereon for the Seven and Dollars, eighty rurther particuhereof, hereby made County Phillips County, Montana, urer this reference thereto made a part That the person in name for property 1920, Oliver year Oliver W. Hershman, for known the owner of said year prior that the W. Herschman. of was Oliver tax deed that Oliver hereby Demand Gladys Stevens, The First Bank Malta, tional Receiver of the First Frank Browne, Bank Malta, corporation, National or either of them, or heirs, cessors, thirty days after the signs, this notice to Amos first publication the undersigned Treasurer of Philto the County or Montana, for his use, County, interest and penalties, in the records the same may appear of Phillips County, bring the Treasurer deed. quiet their title or set 1929 Dated this AMOS Claimant. J. Forster, Malta, Montana, AttorPublication: 1929 First 14, 1929. Second Publication: NOTICE OF HEARING In the District Court of the Seventeenth Judicial the State of Montana, and for the County of Phillips. In Matter the Estate of Joseph M. Partridge, Deceased. certified copy of the probate proceedings the County of Dunn, State North Dakota, together certified copy Joseph Partridge, to probate said Dunn County, N. Dak., together with Petition for the probate of estate and said will in the County of Phillips, State of Montana, for the Let Administration with Will to Frank Partridge the Clerk the District Court, of the Judge, an order duly given and made heretofore fixed the 20 day of February 1929 at the hour of o'clock P. the Court Room in Malta. Phillips Montana, the time ing NOTICE said IS HEREBY GIVEN that any interested may appear and contest at the time and place fixed in said order as set forth and file written objections to the probate thereof. Dated this 24th day of January, 1929. PORTER, Fred Gabriel. Malta, Montana, Attorney for (Jan. 31-Feb. 13.) ALIAS SUMMONS In the District Court of the Seventeenth District the Montana, in and the County of Phillips George Renfro, Plaintiff Elizabeth M Wintrode: Minnie Elizabeth Wintrode; The Agricul poration, Delaware of Minneapolis, Minnesota; The National Farmers Bank of Owatonna, a corporation, Owatonna, Minnesota; Herbert Skinner, of the tional Farmers Bank of Owatonna, Owatonna, Minnesota: and all other persons, unknown, claim ing, who might claim any right, title, estate or interest in, or lien incumbrance the real property described the thereplaintiff's ownerany cloud upon the plaintiff's title thereto, whether claim or possible claim be present or contingent, claim of cluding claim possible dower, inchoate or accrued. Defendants The State of Montana, Elizabeth to the Wint- above named rode; Minnie Wintrode: The Agricultural Credit Corporation, Delaof Minneapolis Minnesota; The National Farmers Bank of Owatonna, of Owatonna, Minnesota; Herbert E. Skinner, as Receiver of the National Farmers Bank Owatonna, of Owatonna, and all other persons Minnesota might any title, estate, or interest in, upon, proplien or erty described in complaint, any thereof to plaintiff's thereplaintiff's title or any whether claim possible claim present or contingent, including any or possible claim of dower, inchoate accrued, Greeting: You. are hereby summoned to answer this complaint in the the Clerk of this which is herewith served apply to file your answer upon the plaintiff's attorney twenty days after of the the of his service day of service and in your fallure appear or answer by default for will the against you be demanded complaint This the title to the West Section ThirtyTownship Thirty two Montana North, Twenty Range Meridian, containing 320 acres, more or less, according the Survey thereof, together with all and singular thereto belonging, or in any appertaining, Montana. in the County State The Phillips, nature the relief sought by the follows: plaintiff That the is defendants be required to set the nature be of determined: their claims, that and adjudged claims that none description in defendants the cap coming tion hereof within the to as property defendants, and rights as any and the that title their of claims the plaintiff be said decreed property and that be quieted, the owner in fee and in the plaintiff of any the lien, title, claim, the defendants, of the defendants designated that forever barred hereof in caption rights said prem any from asserting other and further reand for Court may proper lief and said hand Witness 25th day of Court (Court Seal) the above district court of Clerk Malta, Montana, Attorney for Plaintiff. 20.) NOTICE TO CREDITORS Estate Tucker, deceased NOTICE IS HEREBY the administratrix of the estate of Mabel Tucker, to the creditors and all persons claims against the deceased. to exhibit within them months after the first publicafour tion this the the Tressler Kirton, Town Malta, Mon& the place the business of estate the County Phillips. in Dated January CAUFMAN, Administratrix of the estate Mabel deceased. Kirton, Montana, Attorneys Tressler for the (Jan. 17-Feb. SHERIFF'S SALE Court the Seventeenth In the District District the MonJudicial for the County of Phillips. Malta Mercantile Company, a poration, Ernest Stenberg, and Frank Browne, as of First Bank Sheriff's Sale on the sold at 16th To day be February, 1929 the o'clock Court the front the City Malta, County House Phillips and State of the following described property, Section Township North Range 320 Montana acres. Meridian, Dated this 16th day of January, Sheriff. 1939 RAY Malta, Montana, AtFred C. Gabriel, torney for (Jan. NOTICE OF A CLAIM OF TAX TITLE Notice hereby given that claims Fred Andrews, Caldwell, real tax property, title in Phillips County, MonNorth half of Section Twenty, in The Township N. 28 Montana Meridian, 320 acres, Govless, the or ernment thereof. acquired on the day A of January, deed 1929, by the amount undersigned, Fred interest and thereon for the Five Hun16/100 dollars, dred date hereof, twenty and for further particulars, reference made County the records the Phillips the County, of Montana, by this reference thereto a part hereof. whose name said That the person assessed and for property is Holger that owner year. 1921, land prior the issuance of said tax deed was Holger Lanther is hereby made that Holger Demand personal Lanther, within representati assigns, after the first publication thirty days to the this notice to the County dersigned Phillips Montana, for his the of taxes, interest penalties, the same may appear the of Philin the records bring to quiet lips County Dated title this 1st of February. 1929. FRED ANDREWS J. Forster, Malta, Montana, AttorFirst Publication: Claimant. Feb. 1929 Publication: Feb. 14, 1929. NOTICE OF CLAIM OF TAX TITLE Notice is hereby given that T. Greve, Montana, claims tax title to real erty, in Phillips County, Montana, wit: The -West half of section five and (aldescribed South half of the Northwest quarSection Five) in Township North, Range 33 Montana Meridian, containing more according to the Government Survey thereof. deed acquired on the 31st of January, 1929, that by the amount undersigned, due A. for taxes, and penalties Three Hundred forty-six to and 73/100 Dollars, at hereof, and for further the particulars, records made of the County of Phillips County, Montana, and by this thereto made part hereof. That the person in whose name 1922, said assessed for the year property Johnson the owner of record said land prior to the issuance said tax Mer State Bank of Saco. chants Demand that Weymon Elsie Johnson, his Farmers State Bank of Saco, corporation, of Saco, Montana: FarmLiquidati Officer of ers Lochrie, and as Bank of Saco, corporation, or either of them, or their tives or assigns, personal within thirty days after the first publicat of this notice Steelman, undersigned to the County Phillips County. Montana, for his use, taxes, interest and pen- the the same appear alties, as records Phillips Counbring deed. suit to quiet title or set tax Dated this 31st day of January, 1929. Claimant First publication: 7, 1929. Second publication: Feb. 14, 1929. NOTICE OF TERMINATION OF NOTICE IS HEREBY GIVEN that the existing between Odean, Fred Stedfelt and Cosner, the Malta, in the County Phillips, State of doing meat business Meat Market' under the of "City terminated firm on the 14th day of February, 1929, that the not business, partner not Hable for any of the obligations Dated this 11th of February, 1929 COSNER, First Publication 14, 1929 Second Publication Feb. 21, 1929. NOTICE OF APPLICATION NOTICE IS HEREBY GIVEN Mon- That Phillips, tana, the County will on the 15th day of Phillips March, Coun- 1929, the Treasurer of ty, Montana, for tax to the following described Government property, Lots 15-16-17 in Said Block was assessed in the name of Ethel Taylor for the year 1923. Dated Amount 11th day February 1929. Order of the Board of County Commissioners. Clerk of the Board County Commisof Montana. sioners (Feb. 21) SUPPLEMENTAL ALIAS SUMMONS In the District Court of the Seventeenth Judicial District of the of Montana, and for the County of Phillips. Sidney Caldwell, Plaintiff. David Hawley, Ellen E. Hawley, The Company corporation, Alex Demopoulos THE STATE OF MONTANA Sends Greeting above named and each of Them: You are hereby summoned to answer the supplemental complaint in this tion is filed in the office which Clerk of this copy is served one of of you reside each County wherein you and to file your answer and copy upon thereof within twenty days after the service this of service and in of your the day failure to appear judgment will taken against default, for the relief demanded in the supplemental complaint, for the foreclosure of that real estate David mortgage Hawley. to the Bankers Farm Mortgage Company and assigned to the plaintiff covering the


Article from The Albert Lea Tribune, April 6, 1929

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SKINNER LAUDS BANK SUPPORT IN OWATONNA Receiver Declares Attitude of Business Men, Others, Aiding Liquidation Is of Best. Owatonna, April 5.-Owatonna business men were praised for their attitude in aiding the liquidation of the National bank fhis city, in a paper by Herbert E. Skinner, receiver for the closed bank, and read before the Lions club by F. W. Sawyer. He declared the attitude of business men and of local folk generally was aiding the receivership to a mark ed degree in returning to depositors the maximum in dividends. The paper discussed the financial situation, local and on a national scale in an interesting manner and pointed out the dangers of the present tendency of the public toward the purchase of huge volumes of stock. Following considerable discussion of the duties of a receiver in the administration of an insolvent bank, the paper declaed: "Community on the Up Grade" "We have reached a point in our liquidation where we can measure, in way, the effect of the closing of the Farmers bank upon the community and business conditions generally. At the time the bank suspended business it had deposits Its of approximately $1,400,000. peak deposits were in 1920 when the total was $2,300,000. In other words deposit withdrawals from 1920 to 1926 were $900,000. The peak deposits of the two banks now operating in Owatonna in 1920 were $3,000,000. Their last published statement showed combined deposits of $3,870,000, or a gain of nearly $900,000. It was in the natural order of things, when the de flation period set in in 1920, that all banks should show a deposit decrease. When two banks can hold their peak deposits of 1920, when inflation was at its highest and add nearly a million dollars to the totals, it can only mean that the community is on the up grade, is recovering, progressing, building up and forging ahead and that community has, as it should have, confidence in its banking institutions. "There is a natural tendency at the closing of a bank for a certain per cent of the community to withdraw funds from the going banks and invest in outside securities, or perhaps hoard the actual cash. Those who are in a position to know tell 1:0 that Owatonna and Steele county people have probably invested two million dollars, or bet ter, in bonds and outside securities cess of one billion dollars. Of ple have lost in stocks, and blue sky investments ,is staggering and enormous and while the figures are now available, the total must be far greater than the loss in bond purchases. "When this total loss is added to the bond losses and compared. to the losses sustained by reason of bank closings, it will be found that the average per cent of safety in investments is greatly in favor of bank deposit. am advised that now it is not so easy to dispose of outside securities in Owatonna as it was and investors are paying more attention to local securities, farm and city mortgages, etc. The Farmers bank has returned half million dollars of its locked up deposits to those entitled to receive them and will return more. No one. knows the amount of money, which is being hoarded but indications are that this is gradually coming out of its hiding places and deposited in the banks where it belongs. Business Mens' Attitude Helps "There are some unfortunate people, principally those along in years, who will never recover the full Iosses which they have sustained in the bank's suspension. But in the main the community has recovered and made up its losses and the failure of the bank insofar as it pertains to present general business conditions be considered in the past tense and forgotten. want to thank the members of this club and the various businesses or professions which they represent and for that matter the entire roster of business and professional men of Owatonna should be included, for the kindly help and consideration given me in my efforts at this point. The treatment received is unusual for man in my line of work. You have all of you been kind and charitable in overlooking my shortcomings and your help and co-operation has been highly appreciated. am un der great obligations to the depositors' committee, appointed at mass meeting of the depositors held at the armory shortly after the bank suspended. Mr. Kasper, who has been chairman of this committee, has wide acquaintance in Steele county and he, as well as the entire committee have been of great service to us by reason of their intelligent and sound co-operation. The press and clergymen of the city have helped us tremendously. Instead of printing sensational stories and playing up the various rumors, which have been afloat-and there have been papers have handled the matter like businessmen in level-headed way and have confirmed each item of news value before publication. Co-operation Prevents Losses "Several instances have come to me, especially in the early days of the receivership, of wise counsel which various clergymen have given their congregations. The directors of the bank have helped me in every manner possible. They have dug deep into their pockets in or der to minimize the losses to the creditors. When the history of this bank is finally written, the community will know of the sacrifices and unselfish efforts of these men. "Working together, as we have, with the able co-operation and assistance of the people of this club and community and the groups have enumerated, we have been able to liquidate our Owatonna paper without embarrassment or disaster, to a single business man or firm, without the locking of single door and with a small loss compared to the amount due us at the time of suspension. We have reached the stage in our local liquidation sufficient to enable us to definitely assure you that our total loss in Owatonna, ground floor business paper, mean notes given by bonafied Owatonna business concerns, occupying ground floor space in the city, will be very small. When you consider that there was around $175,000 of this paper outstanding at suspension, want to tell you gentlemen, that you have a right to feel proud of this record. Record Declared Unusual "You may not realize it, but this record is unusual. It has raised and strengthened the whole credit structure of your business organizations. It is a record made, as have said, without locking a single door, without a single forced sale under execution, without depreciating the value of your business or residence property and without fuss It is record which or notriety. a not have been made without could your help and co-operation It demonstrates that Owatonna business men were sound and solvent in September, 1926. It demonstrates that they are sound and solvent to-