9892. Union Stock Yards bank (South Saint Paul, MN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 22, 1896
Location
South Saint Paul, Minnesota (44.893, -93.035)

Metadata

Model
gpt-5-mini
Short Digest
8dc7830a

Response Measures

None

Description

The Union Stock Yards bank at South St. Paul closed (suspended) on Dec 22, 1896 after its correspondent/clearing bank (Bank of Minnesota) was taken by the state examiner. A receiver was later appointed and the bank remained in receivership; a later new institution (Stock Yards Bank) opened in July 1897 but is explicitly stated to have no connection with the suspended Union Stock Yards bank. Thus the original bank suspended and entered receivership (permanent closure).

Events (3)
1. December 22, 1896 Suspension
Cause
Correspondent
Cause Details
Cleared through the Bank of Minnesota; when the Bank of Minnesota was taken by the state examiner the Union Stock Yards bank was forced to close due to its large deposit/clearing exposure there.
Newspaper Excerpt
the Union Stock Yards bank at South St. Paul also closed. ... State Bank Examiner Kenyon today took possession of the Bank of Minnesota, and as a result of the closing of this bank the Union Stock Yards bank at South St. Paul also closed.
Source
newspapers
2. January 5, 1897 Receivership
Newspaper Excerpt
Maurice Auerbach, as receiver, took the place of Bank Examiner Kenyon, in charge of the Allemania, his bond for $250,000 being filed this morning. ... The depositors of the Union Stock Yards bank at South St. Paul are to meet later in the week to consider the subject of reorganization, the receiver's report showing the bank to be in good condition. (reports refer to receiver and reorganization of Union Stock Yards bank.)
Source
newspapers
3. June 30, 1897 Other
Newspaper Excerpt
There is no connection with the Union Stock Yards bank, which closed its doors Dec. 22 last, owing to the suspension of the Bank of Minnesota. ... The Union Stock Yards bank was always a money maker, but was caught with too large a deposit in the Bank of Minnesota to weather the storm.
Source
newspapers

Newspaper Articles (9)
1. December 23, 1896 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, December 23, 1896

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Article Text

Two Big Banks Are Forced to the Wall. WAS A GREAT SURPRISE BANK OF MINNEAPOLIS IS ONE "MEHL AO The Other the Union Stock Yards Bank, Which Cleared Through the Bank of Minnesota-Promises Are Profuse That No One Will Lose Anything. St. Paul, Dec. 22.-State Bank Examiner Kenyon today took possession of the Bank of Minnesota, and as a result of the closing of this bank the Union Stock Yards bank at South St. Paul also closed. The Bank of Minnesota was the oldest bank in St. Paul. It was established by Dawson & Co. 1859 up The Union Stock Yards bank cleared through the Bank of Minnesota and its closing followed, as a matter of course. It was stated at the Bank of Minnesota that depositors would not lose, and that arrangements would be made to carry on the bank's business. OFFICERS THE The officers of the two suspended banks are as follows: Bank of Minnesota, president, William Dawson; vice-president, Robert A. Smith; cashier, William Dawson, jr.; assistant cashier, Robert Miller; directors, William Dawson, Thomas Grace, R. A. Smith, A. B. Stickney, P. Simms, E. W. Peet, Arnold Kallman, P. J. Dowling, P. G. Cowley, William Dawson, jr., P. S. Harris. Union Stock Yards bank: President, William Dawson; vice-president, William Dawson, jr.; cashier, J. J. Flanagan. The Bank of Minnesota, in common with all the other banks in the citv, had a share of the deposits of state funds, and at the time of the last statement had between $70,000 and $80,7I deposit. uo Лемел state the JO 000 was also the depository of the county and until recently was the main bank through which city business was transacted. R. A. Smith, the present postmaster, and until last spring mayor of St. Paul, was for years vice-president of the bank. The Dawsons rank high among financiers. William Dawson, Jr., is one of the owners of the St. Paul Globe, in which he became interested 18 months ago. The closing of the bank was as great a surprise to the officers as it was to the general public. Bank Examiner Kenyon was early the scene and took charge of the on bank's affairs. He would not give out statement, inasmuch as he had not any completed his examination. He did state, however, that the case will go into court tomorrow, when an application will be made for the appointment receber... e JO CUSTOMERS SURPRISED. Aside from the closing of the South St. Paul bank, which was but a branch of the Bank of Minnesota, no other concerns have closed. When early customers appeared this morning at the bank they were surprised to find upon doors a notice to the effect that the State Bank Examiner Kenyon had officially taken charge of the Bank of Minnesota and its records, books and effects. The news spread with rapidity throughout the city and soon large of men and women made their groups towards the bank building. Some way were present because they were depositors; others came from curiosity. additition sem auo ON The public examiner at once began careful examination of the affairs of a the bank At noon the clearing house met and suspended the bank from the association. The private banking house from which the present bank is an upshot was established under the firm name of Berry, Holland & Dawson. In 1865, the banking firm became known Dawson & company, and did an imas mense business until 1888, when the present Bank of Minnesota was organized. Its capitalization was $60,000; its surplus and undivided profits were given as $300,000. Its last report to the bank examiner was filed Oct. 8 last, and a call for a new report was issued yesterday, which probably hastened The action. corresponding banks in the country, on the last report, number 45, and many of these are small banks in country towns, whose fate may depend the final resumption of the Bank of on Minnesota. The state had given nothat it would withdraw $25,000 tice during the week and the city treasurer also required $15,000 of the public funds! The bank's open account deposits amounted to $650,000 at the time it closed its doors. ALL WILL BE PAID. Although no official statement is obtainable until the examination has been completed, the directors and officers this evening gave out the following "Every statement: depositor will be paid in full, without the least possible delay. William Dawson jr., cashier of the bank, said to a United Associated Presses reporter that this statement was correct. In addition he said: "We have had a very large patronage from the retail business men of the city. The hard times of the past few have reduced our deposits over years one-half. In addition, we have not been able to make collections on bills receivable in large amounts, nor on 7 notes due the bank. This, in short, is story of our closing. We might the for an indefinite time,

2. December 23, 1896 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, December 23, 1896

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Financial. After a Weak Opening Stocks Improved Yesterday. New York, Dec. 22.-After a weak opening and a fractional decline in prices stocks improved on covering of short contracts. The advance outside of Sugar, which moved up about a point, was insignificant. The declaration of the usual dividends by the Lake Shore, Michigan Central and New York Central failed to exert any influence on the market. The reduction of the dividend on Canada Southern, however, started a selling movement, which gathered force as the day advanced. The bank failures at the west also had a disturbing effect and timid holders cut down their lines. The suspension of the Bank of Minnesota, the oldest bank in St. Paul, announced shortly after 1 o'clock, was followed by the failure of the State Bank of St. Paul and the Union Stock Yards bank of South St. Paul. The fact that the last two institutions had been compelled to close up was not generally known on the street until after 3 o'clock. The bearish feeling on the market was aggravated by rumors of a reduction in the dividend of the Delaware and Hudson during the coming year and to rumors that the Long Island Co. will pass payments on its stock. In the past the Delaware and Hudson has distributed 7 per cent. per annum, and the Long Island 4 per cent. Manhattan's weakness was attributed to liquidations and the decline in Sugar to the aggressiveness of the Arbuckles. Delaware and Hudson scored the heaviest loss and dropped 5% per cent., to.117%; Long Island fell 5, to 45; New Jersey Central 41/8, to 99%; Sugar 13/4, to 1091/2; Canada Southern 2½, to 45½; Burlington and Quincy 17/8, to 701/2; Chicago Gas 11/4, to 721/4; St. Paul 1%, to 72%; Rock Island 1%, to 651/2; Consolidated Gas 1½, to 145; Louisville and Nashville 1½, to 47½; Manhattan 23/4, to 863/4; Reading 1, to 25; Tennessee Coal 11/4, to 241/2; Rubber 15, to 24,and Western Union 11/1, to 821/4. Speculation closed weak in tone. Net changes show declines of 1/4@1% per cent., outside of Delaware and Hudson, Jersey Central and Long Island, which lost 31/s@5%. Tobacco made an exceptional gain of 1 per cent. Considering the shrinkage in prices, the dealings were comparatively small. Bonds were quiet and steady. Sales were $765,000. Following are the closing prices reported by Prince & Whitely, bankers and brokers, 46 Broadway, New York, and 15 Center street, New Haven:

3. December 30, 1896 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, December 30, 1896

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TO THE PUBLIC. The undersigned, commission merchants and business men, doing business at South Saint Paul, Minn., hereby announce to the public in general, and the live stock dealers and shippers in particular that, the temporary embarrassment occasioned by the suspension of the Union Stock Yards bank has been fully adjusted, and that each and all of the undersigned firms have made arrangements for all funds necessary to handle and pay for any live stock that may be shipped to this market. All outstanding checks upon the suspended bank have been paid in full, or will be immediately upon presentation. Come on with your live stock, the market is in good condition, and prompt and immediate payment is absolutely guaranteed. The Saint Paul Union Stock Yards Company. The Charles L. Haas Commission Company. E. M. Prouty & Company (Live Stock Commission Men.) Mallory Sons & Zimmerman Company (Live Stock Commission Men.) Thuet Brothers, (Live Stock Commission Men.) Rogers & Rogers, (Live Stock Commission Men.) Tomlinson Stafford & Company, (Live Stock Commission Men.) Plankinton Packing Company, by E. Moshier, Agent. Cudahy Brothers Co., by W. J. Patton, Agent. J. T. McMillan, by Walter J. Patton, Agent. J. B. Fitzgerald, Cattle Dealer. Slimmer & Evans, Live Stock Buyers. Hankey Brothers, Live Stock Dealers. G. W. Wentworth, Live Stock Buyer. J. E. Bolton, Cattle Dealer. Lytle & Raeburn, Live Stock Dealers.

4. January 5, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 5, 1897

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BANK SCARE SUBSIDIES. All is Quiet Today in St. Paul Business Circles. St. Paul, Jan. 5.-In banking circles today it seems almost as if the scare had ended with the blizzard, for the banks were much less worried by withdrawals. The banks that closed yesterday were in charge of their clerical forces making up the reports. Maurice Auerbach, as receiver, took the place of Bank Examiner Kenyon, in charge of the Allemania, his bond for $250,000 being filed this morning. The reorganization committee of the stockholders of the Bank of Minnesota had a meeting with the heavier stockholders to devise a method of reorganization. Thirty depositors with $175,000 in the bank were at yesterday's meeting. The depositors of the Union Stock Yards bank at South St. Paul are to meet later in the week to consider the subject of reorganization, the receiver's report showing that bank to be in good condition. The January meeting of the directors of the Second National bank yesterday declared a semi-annual dividend of 7 per cent. This bank has 51 per cent of its deposits on hand in cash. The other national banks made similar showings. The savings banks, for the protection of depositors, are still requiring the sixty days notice for withdrawal of deposits, and this, together with the strong showing of other banks, has had a quieting effect upon the public.

5. January 6, 1897 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, January 6, 1897

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Kansas Pure Food exposition at Topeka on January 25, were allowed. B. F. Winchell, of the Gulf; John Sebastian, of the Rock Island, and Frank Wadleigh, of the Rio Grande Western, were appointed a committee on homeseekers' business. Mr. Wadleigh brought up the question of the joint ticket offices of the Rock Island and the Rio Grande at Pueblo, which virtually gives the Rock Island two offices there, but Chairman Caldwell was not called upon for aruling. The subject of most importance to Colorado, that of Colorado tourist tickets. has not been brought up yet, and it will be referred to a committee. There were several committees at work until late tonight, as all the work must be disposed of in time for the eastern committee meeting, to be held in St. Louis on Thursday. BANKS AT ST. PAUL. St. Paul, Minn., Jan. 5.-In banking circles today it seems almost as if the scare had done, with the blizzard, for the banks were much less worried by withdrawals. The banks that closed yesterday were in charge of their clerical forces, making up the reports. Maurice Averbach, as receiver, took the place of Bark Examiner Keyton, in charge of the Allemania, his bond for $250,000 being Died this morning. The re-organization committee of the stockholders of the Bank of Minnesota, had a meeting with the heavier stock holders to devise a method of re-organization. Tairty depositors of the Union Stock Yards bank at South St. Paul, are to meet later in the week to consider the subject of re-organization, the receiver's report showing the bank to be in good condition. The January meeting of the directors of the Second National bank yesterday declared a semi-annual dividend of 7 per cent. This bank has 51 per cent of its deposits on hand in cash. The other national banks make similar showings. The savings banks, for the protection of depositors, are still requiring the sixtydays notice for withdrawal of deposits, and this. together with the strong showing of the other banks, has had a quieting effect upon the public. CALUMET BANK. Chicago, Jan. 5.-A bill for a receiver was filed in the circuit court today against the Calumet State Bank of Blue Island, which made an assignment in the county court last week. The auditor asserts that the assignment was the result of collusion among the officers of the cancern and the assignee, M. C. Eames, who is one of the officers. Assignee Eames of the Calumet bank filed a report today regarding the financial affairs of that institution. It shows total assets of $99,896, upon which, however, he places of value of $74,329. The total liabilities are placed at $70,640. STEEL BILLET POOL. Pittsburg, Pa., Jan. 5.-The ChronicleTelegraph this afternoon says: The special committee appointed to collect data and compile it for the use of the steel billet pool did not agree at the meeting in New York yesterday and no date was fixed for a meeting of the pool. As a result, the market. SO far as steel billets are concerned. will remain open until a meeting is held. LUMBER TRUST BREAKS. Seattle, Wash., Jan. 5.-The Central Lumber company of California, the most stupendous trust ever organized on the Pacific coast, is a thing of the past. No such combine was ever effected for the control of a market on this coast, as it controlled every cargo mill on the coast but three. The projectors, confidently believing that the demand in 1896 would exceed that of 1895, thought that pricecutting would be impossible. But the 01 dn come you PIP рившер the proportion of supply and demand being four instead of three to one, as compared with eighteen months ago. The anticipation of enhanced values prior to the formation of the company, furthermore, caused the piling of great stocks of lumber in San Francisco and other places. Few purchased lumber from the mills, but many sought the small trade in the rid of the stock in the

6. January 6, 1897 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, January 6, 1897

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SCARE ABOUT OVER AT ST. PAUL. No Failures Announced and No Runs on the Banks. ST. PAUL, Jan. 5.-In banking circles today it seems almost as if the scares had gone with the blizzard, for the banks were much less worried by withdrawals. The banks that closed yesterday were in charge of their clerical forces, making up the reorts. Maurice Guerbach, as receiver, took the place of Bank Examiner Kenyon, in charge of the Allemania bank, his bond for $250,000 being filed this morning. The reorganization committee of the stockholders of the Bank of Minnesota had a meeting with the heavier stockholders to devise a method of reorganization. Thirty depositors with $175,000 in the bank were at yesterday's meeting. The depositors of the Union Stock Yards bank at South St. Paul are to meet later in the week to consider the subject of reorganization the receiver's report showing the bank to be in good condition. The January meeting of the directors of the Second National bank yesterday declared a semi-annual dividend of 7 per cent. This bank has a large proportion of its deposits on hand in cash. The other national banks make similar showings. The savings banks, for the protection of depositors, are still requiring the sixty days' notice for withdrawal of deposits, and this, together with the strong showing of the other banks, has had a quisting effect upon the public. At a special meeting of the board of directors of the Germania bank, held today, the following resolution was unanimously adopted: "That a committee of seven stockholders, of which the president shall be an ex-officio chairman, shall be appointed by him for the purpose of taking measures for the speedy reorganization of the Gemania bank of St. Paul. John L. Brady, a banker and creditor of the Germania bank, came before Judge Bunn with an application for the removal of President Kerst as assignee of the Germania bank and the appointment of some other suitable person in his place. Judge Bunn, after reading the application, signed an order to show cause, returnable tomorrom morning at 10 o'clock. Mr. Brady is understood to be a creditor of the bank to the amount of some $20,000. The grounds on which the application is based are that Mr. Kerst is an officer of the bank and as such ought not to act as assignee. When the matter comes on for hearing before Judge Bunn it is understood that Mr. Childs, the attorney general, will join in the application on behalf of the state. The latter will ask for the appointment of a receiver.

7. February 3, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, February 3, 1897

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To Sue the Bondsmen. The South St. Paul council last night ordered suit to be brought on the bond of the Union Stock Yards bank for the recovery of the $16,000 on deposit in the suspended bank. Senator Schaller, the city attorney, will begin suit at once.

8. June 30, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, June 30, 1897

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NEW BANK OPENS JULY 1. South St. Paul Has an Institution Greatly Needed. The stockholders of the new "Stock Yards Bank," at South St. Paul, held a meeting yesterday afternoon and ratified the board of directors as published a few days ago. The directors then elected the following officers: President, R. C. Jefferson; vice president, M. D. Flower; cashier, J. J. Flanagan. The new bank has a paidup capital of $25,000 and will commence business Thursday, July 1, in the Exchange building at South St. Paul. There is no connection with the Union Stock Yards bank, which closed its doors Dec. 22 last, owing to the suspension of the Bank of Minnesota. Half the stock is held by South St. Paul business men, who have been sorely inconvenienced without a bank for the past few months. The commission merchants handle $20,000 to $50,000 per day for live stock, besides the large amount of business done by the packing houses and distillery, the sales of the latter alone amounting to $3,000,000 a year. The Union Stock Yards bank was always a money maker, but was caught with too large a deposit in the Bank of Minnesota to weather the storm.

9. July 24, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, July 24, 1897

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KICK ON THE FEES. Depositeors of Stock Yards Bank File a Protest. A meeting of depositors of the Union Stock Yards bank, representing threefourths of the deposits in the suspended bank, was held at South St. Paul yesterday to protest against the bill of Receiver M. H. Sullivan, which will be presented to Judge Williston at Red Wing today. The receiver asks for $300 per month for six and a half months,-$1,950.00, and expenses at $1.50 per day, $143; for his clerk, J. J. Flanagan, $150 per month for five months. Attorney F. N. Crosby's salary, $1,083, and $493.50 expenses. The total bill is $5,230.15, less $1,800 paid on preferred claims. The depositors unanimously passed resolutions requesting the court to make the receiver's salary $150 per month; to disallow expense account; to make Flanagan's salary $100 per month, and to allow the attorney $100 per month and necessary expenses. A motion was also made: to take steps to take the bank out of the hands of the receiver and have the affairs wound up by some one else, preferably the new stock yards bank. It is expected a second dividend of about twenty cents will be paid Aug. 1. There will then remain over $40,000 in the Bank of Minnesota and $23,000 in notes.