State Bank - St Paul, MN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 1, 1893*
Location: St Paul, Minnesota (44.944, -93.093)

Metadata

Model: gpt-5-mini
Short Digest: e28bc8e0

Response Measures

None

Description

Articles describe the State Bank in St. Paul being insolvent, assigned to an assignee/receiver and involved in court contests and grand-jury investigation. There is no description of a depositor run; the bank was assigned/placed in receivership and appears closed. Key dates: assignment/suspension in mid-1893 (articles July–November 1893).

Events (4)

1. July 1, 1893* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was insolvent; securities transferred to other banks and controversies over disposition of deposits and securities; allegations of insolvency and possible mismanagement/embezzlement by officers.
Newspaper Excerpt: These securities ... are to secure a debt ... the officers of the receiving bank knew that the State bank was in an insolvent condition.
Source: newspapers

2. August 13, 1893 Receivership

Newspaper Excerpt: George H. Fletcher, assignee for the bank, resigned his position ... substitution of the Metropolitan Trust company in his place ... the appointment of the trust company should be continued until Wednesday morning, when the creditors might try to show cause why the company was not as fit as anybody else to act as receiver.
Source: newspapers

3. November 14, 1893 Other

Newspaper Excerpt: The grand jury will begin investigating the bank failures to-day. The principal witnesses have nearly all been subpœnaed. They are, for the most part, the assignees and receivers of the suspended banks. Among the witnesses sent for are Assignee Hahn of the State bank, ...
Source: newspapers

4. November 30, 1893 Other

Newspaper Excerpt: Assignee Hahn, of the State bank, refused to allow the claim of City Treasurer A. C. Haugan for $106,655. Mr. Haugan claimed that this amount of the city's funds was in the bank at the time it suspended. The claim was disputed ... Arctander asserts that this amount represented a shortage in Kortgaard's accounts ... Kortgaard, who was the president of the bank.
Source: newspapers

Newspaper Articles (5)

1. July 23, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, July 23, 1893

Click image to open full size in new tab

Article Text

STATE BANK TROUBLES. Three Petitions Filed in Contest of Disposition of Securities. A contest has begun in the district court over the disposition of State bank securities. Three petitions were filed in the district court yesterday morning by John W. Arctander, which involve the securities of the bank. The attorney represents about $50,000 of the depositors. The petitions state that less than ninety days before the assignment the bank delivered to the Security bank se curities worth $51,436.39, which is shown in one of the items in the schedule. These securities, it is asserted, are to secure a debt of $25,000. Itis further stated thatsecurities to the amount of $38,037.36 were given to the American Exchange bank, when, as a matter of fact, the officers of the receiving bank knew that the State bank was in an insolvent condition. Besides this $100,080.89 worth of securities given to A. C. Haugan, city treasurer, to secure money on deposit, are also involved. The attorney states that this last was given after the bank had assigned for the purpose of relieving the bondsmen from liability in that quarter. The state of Minnesota also made an application, which was heard before Judge Smith, to have the assignee of the bank pay over $75,000 of the state's money. This was resisted by the creditors, and the point was made that the liability of the bondsmen should be drawn on first before any other money could be taken. It was shown that if the money were paid over It would be virtually making depositors bondsmen for the state deposit. The matter was considered SO important that it will be heard before the full bench.

2. July 26, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, July 26, 1893

Click image to open full size in new tab

Article Text

The Minnesota Loan & Trust Co. Allow five per cent interest on six months' deposits. ### Of Vital Importance. A petition has been filed in the district court by the attorney general asking that the receiver of the American Exchange bank be compelled to pay to the state treasurer $20,502.61, the same being the amount of deposit on hand due to the state at the time of the assignment. The state insists that it is a preferred claim, and of such a nature that the receiver should pay it out of available funds. The depositors will claim that if the money is paid it will place the depositors of all banks in the shape of being liable for state funds before the bondsmen of the bank. They will claim that the bondsmen should be held first. The matter will come up next Saturday, and is of such vital importance that all the judges who can be found will set when the case is heard. A similar petition against the State bank will be disposed of at the same time.

3. August 13, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, August 13, 1893

Click image to open full size in new tab

Article Text

# MR. FLETCHER RESIGNS, A surprise was in store for the people interested in the State bank failur when George H. Fletcher, assignee fo the bank, resigned his position yesterday morning, and presented, throug his attorney, a substitution of the Metropolitan Trust company in his place which letter was signed by Judg Hicks. The reason for the resignatio is the fact that Friday night Judg Smith signed an order to show caus why Fletcher should not be removed on the petition of attorneys for creditors, which had been served upon him. In order that there might be no public fight on the accusations, the resignation came. There was a long wrangle, in which a great amount of bad blood was shown between attorneys. Mr. Fletcher stating that he had filed his motion to get ahead of "some of Arctander's rascality." It was finally decided that Mr. Fletcher's resignation should stand, and that the appointment of the trust company should be continued until Wednesday morning, when the creditors might try to show cause why the company was not as fit as anybody else to act as receiver. Names will also be presented by the creditors to fill the office. The court took occasion to say that in the appointment it would not have anything to do with the quarrels between attorneys for the plum of acting as the attorney for the receiver.

4. November 14, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, November 14, 1893

Click image to open full size in new tab

Article Text

TO INVESTIGATE THE BANKS. The Grand Jury Subpœnas Assignees of Suspended Banks. Thd grand jury will begin investigating the bank failures to-day. The principal witnesses have nearly all been subpœnaed. They are, for the most part, the assignees and receivers of the suspended banks. attorneys on the inside and some depositors, Among the witnesses sent for are Assignee Hahn of the State bank, A. R. McGill, of the St. Paul and Minneapolis Trust company, assignee of the Farmers' and Merchants' State bank, Robert L. Penny, assignee of the American Exchange bank, Judge Rea, assignee of the Bank of New England. Lawyers John W. Arctander and McNear and Bacon, and other attorneys will also be called.

5. November 30, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, November 30, 1893

Click image to open full size in new tab

Article Text

DID KORTGAARD DEFAULT? EX-CITY TREASURER CHARGED WITH EMBEZZLING CITY FUNDS. ARCTANDER HIS ACCUSER. The Lawyer Files Objections to the Claim of City Treasurer Haugan Against the State Bank-Says None of the City's Funds Were in the Bank-Assignee Hahn Denies the Claim. Ex-City Treasurer Kristian Kortgaard is now charged with an offense more serious than that for which the grand jury indicted him. He is accused of having betrayed his trust while city treasurer, and of being unable to account for over $100,000 of the city's funds. Lawyer Arclander makes the charge. The affair came to light yesterday when Assignee Hahn, of the State bank, refused to allow the claim of City Treasurer A. C. Haugan for $106,655. Mr. Haugan claimed that this amount of the city's funds was in the bank at the time it suspended. The claim was disputed by Lawyer Arctander on behalf of himself and other creditors. In his objections filed with the assignee, Arctander makes this grave charge, viz. That the amount ($106,655) did not represent a sum due from the State bank, but was a debt due Haugan personally from Kortgaard. who was the president of the bank. Mr. Arctander also asserts that this amount represented a shortage in Kortgaard's accounts as city treasurer at the expiration of his term of office, and that the State bank never received any consideration for the amount in question. City Treasurer Haugan will appeal to the district court from the decision of the assignee. Mr. Arctander said to a GLOBE representative yesterday: "Tbis revelation explains certain actions on the part of Kortgaard during the last campaign that 1 could not account for then. Before election day Kortgaard exerted all the influence he could to elect Haugan and knife Scanlan. the Democratic candidate for city treasurer. He even came to me and asked me to vote for Haugan. I expect to prove that a secret agreement existed, whereby Haugan, if he should be elected, would keep a certain amount of money on deposit in the State bank. When Koortgard went out of office last January he was credited by Haugan with having $116,000 of the city funds on deposit in his bank. Kortgaard gave Haugan a check on the bank for $150,000, with the understanding that the money was not to be withdraw. within 9. certain time