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A Scandia Bank Fails. Minneapolis, Minn., Dec. 28.-The Scandia bank suspended today. It was one of the smaller banks of the city and was loaded up with real estate on which it could not realize.
Scandia Bank (Minneapolis, MN)
Episode Information
- Episode UID
2156251891164- Episode Type
- Suspension → Closure
- Bank Type
- trust
- Bank ID
-
215625189hash - Start Date
- December 28, 1896
- Location
- Minneapolis, Minnesota (44.980, -93.264)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
bc60fd47b38a11fb
Response Measures
None
Description
Receivership and court actions followed the suspension; assets mostly real estate that could not be realized.
Events (2)
1.
December 28, 1896
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Heavy holdings of real estate securities that could not be realized, making the bank insolvent.
- Newspaper Excerpt
- The Scandia bank suspended today. It was one of the smaller banks of the city and was loaded up with real estate on which it could not realize.
- Source
- newspapers
2.
December 31, 1896
Receivership
- Newspaper Excerpt
- Byers as receiver won't do, was the unanimous expression of the depositors of the defunct Scandia bank, registered in no uncertain way a a mass meeting of the bank's creditors, held at 1805 Franklin avenue south, last night.
- Source
- newspapers
Newspaper Articles (21)
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MINNEAPOLIS BANK TO-DAY. Minneapolis, Minn., Dec. 28.-The Scandia bank suspended to-day. It was one of the smallest banks of the city and was loaded up with real estate upon which it could not realize.
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NEWS OF THE MORNING By Telegraph: Rain is likely today with frost at night. Six-day bicyclists get to work at Washington. Governor Budd completes his message to the legislature. The famous Santa Fe receivership case knocked out; railroad notes. Mme. Stambouloff creates a sensation at the trial of her husband's alleged murderers. The state department will act regarding official annoyance of American traders in Colombia. Spain will accept the good offices of the United States to propose conditions to the Cuban insurgents. The number of killed at the Birmingham railroad disaster admitted to be 24, and claimed to be still larger. A serious hitch in the Venezuelan treaty matter; Venezuela insists upon the production of the complete treaty. A Kansas county goes into insolvency. The Scandia bank of Minneapolis fails; other business disasters reported. Paint and dye manufacturers and wine growers have a hearing before the committee on ways and means; each wants more tariff.
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A SMALL BANK GONE. Minneapolis, Minn., Dec. 28.-The Scandia Bank suspended to-day. It was one of the smallest banks of the city and was loaded with real estate upon which it could not realize.
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Scandia Bank Suspends. MINNEAPOLIS, Dec. 29.-The Scandia bank has suspended. It was one of the smaller banks of the city, and was loaded up with real estate on which it could not realize.
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A Minneapolis Bank Suspended. MINNEAPOLIS, Minn., Dec. 29.-The Scandia bank suspended to-day. It was one of the smaller banks of the city and was loaded up with real estate on which it could not realize.
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Scandia Bank Has Suspended. MINNEAPOLIS, Dec. 29.-The Scandia bank, a small concern of this city, with a capital of $60,000, has suspended payment upon the advice of Bank Examiner Kenyon. The time and demand deposits amount to over $300,000. Thessuspension is due to the inability to realize on the securities, consisting mostly of real estate. It is officially estimated that the liabilities of the institution/will aggregate $800,000.
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Minneapolis, Dec. 29.-The Scandia bank suspended yesterday. It was one of the smaller banks of the city and was loaded up with real estate on which it could not realize. The bank has resources amounting to $432,000. The time and demand deposits amount to $300,000.
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Minneapolis, Dec. 29.-The Scandia bank suspended yesterday. It was one of the smaller banks of the city and was loaded up with real estate on which it could not realize. The bank has resources amounting to $432,000. The time and demand deposits amount to $300,000.
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OBJECT TO BYERS CREDITORS OF THE SCANDIA BANK INDIGNANT AT THE COURT'S ACTION. ROAST ON THE RECEIVER. REASONS SET FORTH WHY APPOINTMENT OF A NEW MAN IS SOUGHT. WASHINGTON MAY REORGANIZE. Its Affairs Said to Be in Most Favorable Condition-Minneapolis Matters. "Byers as receiver won't do," was the unanimous expression of the depositors of the defunct Scandia bank, registered in no uncertain way a a mass meeting of the bank's creditors, held at 1805 Franklin avenue south, last night. The meeting had been called to take steps looking to the removal of the receiver and at 8 o'clock not less than 1,000 men and women, for there were a few women on deck, were present. The large hall was packed to suffocation, not even the secretary having room to sit down, and the crowd which stood on the sidewalk and in the street resembled very much a run upon the bank the day it closed its doors. William K. Hicks was chosen chairman of the meeting, and Lewis Gjertsen secretary. The objects of the meeting were stated by the chair, after which a series of resolutions were read by the secretary, as follows: To the District Court of Hennepin County, in the mater of the Receivership of Scandia Bank of Minneapolis: We, the undersigned creditors of the above named bank, do hereby petition the court to appoint as receiver of said bank a person in whom the creditors have confidence, and that the person now appointed by the court may be removed: that we have no confidence in him, and that his financial record is such that we do not hesitate to say that it is unreasonable to appoint a man for such a position against whom judgments of thousnds of dollars are entered of record unsatisfied, and who is debtor to said bank in the sum of $2,000 on a note which is past due since 1893, and is protested for nonpayment. Now, therefore, we, the undersigned creditors of said bank, in mass meeting assembled. do hereby resolve that a committee be appointed, consisting of seven persons, to institute proceedings for the removal of said receiver, John F. Beyers, and that a person in whom we have confidence be appointed in his stead. That owing to the fact that a large majority of the creditors of said bank are of Scandinavian birth, we insist that a Scandinavian be appointed as such receiver. Dated Dec. 31, 1896. The resolution was satisfactory, with the exception of the last clause, to the effect that the person to be appointed should be of Scandinavian birth. This was unanimously stricken from the resolution. The appointment of the committee provided for to institute proceedings to remove the present appointee of the court was then taken up. On motion the chairman was authorized to appoint the committee, his nominees to be voted upon by the meeting. There was considerable difference of opinion as to whether or not attorneys should be eligible as members of this committee, but it was decided that a knowledge of law need not bar any one. The committee selected inclu led Julius A. Newgard, W. H. Hicks, Jacob Stoft, Robert Christensen, Lewis Cjertsen, D. Eagstrom and C. Birkhoffer, who were given power to suggest to the court a man for receiver, who would be acceptable to the depositors, in case Mr. Byers is removed. Several names were mentioned for the place of receiver, among whom were D. C. Bell, Jacob Stoft, Hans Simonsen, Ernest Kempe, Judge Uhland and others. D. C. Bell would seem to be the favorite. As to the choice of the seven men who have the suggesting power, none were willing to express a decided preference, and thought it would be time enough to consider that question after the court should have re-
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Scandia Bank Suspends. MINNEAPOLIS, Dec. 29.-The Scandia bank has suspended. It was one of the smaller banks of the city, and was loaded up with real estate on which it could not realize.
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Scandia Bank Suspends. MINNEAPOLIS, Dec. 30.-The Scandia bank has suspended. It was one of the smaller banks of the city, and was loaded up with real estate on which it could not realize.
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idea-that build a house you should first put up the parlors and receptions rooms, and afterwards the foundation, the cellar and the kitchen? Is the gold-standard theory of adopting a system of finances that the bankers and monied men want, regardless of what the PRODUCERS, the LABORERS-the foundation of all national prosperity-needs, thus far proving a good thing for the country? Here is a record of failures for the 15 days ending January 4, 1897: Dec. 21-National Bank of Illinois, Chicago. Dec. 21-Roseland Bank, Chicago. Dec. 21-E.S Dreyer & Co. Chicago. Dec. 21 -Wusmansdorff & Heinemann, Chicago. Dec. 22-Bank of Minnesota. St. Paul. Dec. 22-State Bank of St. Paul. Dec. 22-Union Stock Yards Bank, St. Paul. Dec. 23-Chicago Bank, West Superior, Wis. Dec. 23-Bank of West Superior, West Superior, Wis, Dec. 23-American Banking and Trust Co., Auburn, Me. Dec. 28-Dime Savings Bank, Chicago. Dec. 28--Atlas National Bank, Chicago. Dec. 28-Scandia Bank, Minneapolis. Dec. 28-Bank of Superior, Supe rior, Wis. Dec. 29-Columbia Bank, Minneapolis. Dec. 29--Washington Bank, Min8 neapolis. i Dec.29--Commercial National Bank, D Va. Dec. 30-Northern Trust Company, r Minneapolis. Dec. 30 Bankers' Exchange Bank, 1 Minneapolis. . Dec. 30 Northwestern Loan and e Building Association, Minneapolis. Dec. 30 Commercial Bank, Selma, Al. Dec. 30 Farmers' Trust Company, Sioux City, Iowa, y t Jan. 4 Germania Bank, St. Paul. y Jan, 4 Allemania Bank, St. Paul. r Jan. 4 West Side Bank, St. Paul. it Jan. 4 Minnesota State Savings e Bank, St, Paul. Jan. 4 Citizens' National Bank, r. Fargo, N. D. d Jan. 4 City Bank, Nora Springs, If Iowa, a Total amount reported, $21,354,779 c OTHER HOUSES DRAGGED DOWN BY THE e CRASH, of Dec, 22 Angus & Giudele, contract rors, Chicago. of Dec. 23 American Brewing and Y, Malting Co., Chicago, Dec. 23 George A. Weiss Malting Co., Chicago. Dec. 23 George A. Weiss, Chicago r. Dec. 28 Excelsior Machinery an t, Belting Co., Chicago, st Dec. 29 Western Paper Bag Co. iBatavia, III. a Dec. 29 Appleton Manufacturing be Co., Van Nortwick, III, ch Jan. 4 Snow & Earl Co., druggist ct supplies, Providence, R. I IJan. 4 L. W. Alet & Co., wholesal ojewelers, Chicago, Ill. SUICIDES CAUSED BY THE BANK FAILURES if Otto Wasmandorff, head of th " banking firm of Wasmandorff & Heine of mann, of Chicago, shot himself in tha of city. Suicide due to worry over th I's failure of his firm, which occurred o December 21. ry George A. Wilkins, vice president o the suspended Commercial Bank, o ds Selma, Ala., shot himself on Decembe 31, in front of the altar of St. Paul'
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liam F. Grinager and Harris Norman Defendants. Whereas, Grinager, under an order made and filed in this court, by the court, in the matter of the receivership of the Scandia Bank of Minneapolis, on the 17th day of February, 1897, this action was authorized and directed under and in pursuance of Chapter 145, of the General Laws of this State, for the year 1895, for the purpose of enforcing the liability of the stockholders of the Scandia Bank of Minneapolis to the plaintiff herein, as receiver of said bank, and to the creditors of said insolvent bank who should become parties to such action; and Whereas, it being made to satisfactorily appear to the court that it is necessary and proper that the notice required and prescribed under Section 23 of Chapter 76 of General Statutes, 1878, should be given in this action. which is brought for the
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purpose of enforcing the liability of the stockholders of said Scandia Bank of Minneapolis to plaintiff herein as receiver of such bank, and to the creditors of said bank who shall become parties hereto, as provided under the terms of said order; Now, therefore, on motion of Charles M. Pond, Esq., the plaintiff's attorney herein, It is Hereby Ordered and Directed: That all the creditors of said Scandia Bank of Minneapolis be, and they are hereby required, within six (6) months after the date of the first publication of this order, to exhibit their claims against the said Scandia Bank of Minneapolis and become parties to this action, and that in default thereof they be precluded and forever barred from all the benefits of the judgment which shall be rendered in this action and from any and all distributions which shall be made under such judgment.
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ORDER. STATE OF MINNESOTA, DISTRICT Court, County of Hennepin, Fourth Judicial District. Luth Jaeger, as Receiver of the Scandia Plaintiff, Bank of Minneapolis, vs. Reinert Sunde, Rasmus B. Anderson, Charles E. Vanderburgh, Lafayette Woodward, Ray B. Towne, James B. Secombe, Dora Roos, Emma D. Johnson, Alfred Monzel, C. M. Johnson, H. R. Goodnow, F. J. Goodnow, George W. Jenks, Swedish American National Bank, Harold G. Kjellesvig, Charles Kittelson, Willis S. Williams, Albert C. Amundsen, Julius E. Olson, Jennie Osmer, Mary S. Kirkbride, Ole C. Jacobson, Matt. Jensen, Anne Grinager, Anne Marie Engebretson; Henry A. Grinager, Carrie Faegre, Alexander Grinager, William F. Grinager and Harris Norman Defendants. Grinager, Whereas, under an order made and filed In this court, by the court, in the matter of the receivership of the Scandia Bank of Minneapolis, on the 17th day of February, 1897, this action was authorized and directed under and in pursuance of Chapter 145, of the General Laws of this State, for the year 1895, for the purpose of enforcing the liability of the stockholders of the Scandia Bank of Minneapolis to the plaintiff herein, as receiver of said bank, and to the creditors of said insolvent bank who should become parties to such action; and Whereas, it being made to satisfactorily appear to the court that it is necessary and proper that the notice required and prescribed under Section 23 of Chapter 76 of General Statutes, 1878, should be given in this action, which is brought for the purpose of enforcing the liability of the stockholders of said Scandia Bank of Minneapolis to plaintiff herein as receiver of such bank, and to the creditors of said bank who shall become parties hereto, as provided under the terms of said order; Now, therefore, on motion of Charles M. Pond, Esq., the plaintiff's attorney herein, It is Hereby Ordered and Directed: That all the creditors. of said Scandia Bank of Minneapolis be, and they are hereby required, within six (6) months after the date of the first publication of this order, to exhibit their claims against the said Scandia Bank of Minneapolis and become parties to this action, and that in default thercof they be precluded and forever barred from all the benefits of the judgment which shall be rendered in this action and from any and all distributions which shall be made under such judgment. And it is Hereby Further Ordered and Directed: That said claims shall each be exhibited by delivering to the clerk of this court, at his office, in the court house, in the city of Minneapolis, in said county, a verified complaint entitled in this action, setting out a brief description of such claims and all such complaints SO delivered to said clerk, shall be filed by him, in his said office, as one of the files in this action. and that any of the parties to this action and any of the creditors of said Scandia Bank of Minneapolis may at any time within said period of six (6) months heren mentioned, or within twenty (20) days thoreafter, bya duiy verißed answer,
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ORDER. STATE OF MINNESOTA, DISTRICT Court. County of Hennepin, Fourth Judicial District. Luth Jaeger, as Receiver of the Scandia Plaintiff, Bank or Minneapolis, vs. Reinert Sunde, Rasmus B. Anderson, Charles E. Vanderburgh, Lafayette Woodward, Ray B. Towne, James B. Secombe, Dora Roos, Emma D. Johnson, Aifred Menzel, C. M. Johnson, H. R. Goodnow, F. J. Goodnow, George W. Jenks, Swedish American National Bank, Harold G. Kjellesvig, Charles kittelson, Willis S. Williams, Albert C. Amundsen, Julius E. Olson, Jennie Osmer, Mary S. Kirkbride, Ole C. Jacobson, Matt. Jensen, Anne Grinager, Anne Marie Engebretson; Henry A. Grinager, Carrie Faegre, Alexander Grinager, William F. Grinager and Harris Norman Defendants. Grinager, Whereas, under an order made and filed In this court, by the court, in the matter of the receivership of the Scandia Bank of Minneapolis, on the 17th day of February, 1897. this action was authorized and directed under and in pursuance of Chapter 145, of the General Laws of this State, for the year 1895, for the purpose of enforeing the liability of the stockholders of the Scandia Bank of Minneapolis to the plaintiff herein, as receiver of said bank, and to the creditors of said insolvent bank who should become parties to such action; and Whercas, It being made to satisfactorily appear to the court that it is necessary and proper that the notice required and prescribed under Section 23 of Chapter 76 of General Statutes, 1878, should be given in this action, which is brought for the purpose of enforcing the liability of the stockholders of said Scandia Bank of Minneapolis to plaintiff herein as receiver of such bank, and to the creditors of said bank who shall become parties hereto, as provided under the terms of said order; Now, therefore, on motion of Charles M. Pond, Esq., the plaintiff's attorney herein, It is Hereby Ordered and Directed: That all the creditors of said Scandia Bank of Minneapolis be, and they are hereby required, within six (6) months after the date of the first publicátion of this order, to exhibit their claims against the said Scandia Bank of Minneapolis and become parties to this action, and that in default thereof they be precluded and forever barred from all the benefits of the judgment which shall be rendered in this action and from any and all distributions which shall be made under such judgment. And It 1s Hereby Further Ordered and Directed: That said claims shall each be ezhibited by delivering to the clerk of this court. at his office, in the court house, in the city of Minneapolis, in said county, a verified complaint entitled in this action, wetting out a brief description of such claims and all such complaints so delivered to said clerk, shall be filed by him, in his said office, as one of the files in this action, and that any of the parties to this metion and any of the creditors of said Heandia Bank of Minneapolis may at any time within said period of six (6) months heren mentioned. or within twenty (20) thereafter, by a duly verified answer
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SENSATIONAL DISCLOSURES MADE A Legislative Committee Investigating Bank Failures. St. Paul, Minn., April 7.-The jointlegislative committee investigating insolvent banks in this city and Minneapolis has made public the testimony secured during the past two months. Some of the disclosures are highly sensational. As to the Bank of Minnesota, of which William Dawson, Sr., was the president, and William Dawson, jr., cashier, W. H. Lightner, one of the receivers, stated that on October 7 $135,606 was due to the bank from the Fort Dearborn National Bank of Chicago. The balance, he said, was incorrect, accounts between these two banks being falsified to the extent of $100,000. At the time of the failure of the bank there was owing to it by the officials the following sums: William Dawson, sr., about $90,000; William Dawson, jr., $59,950: R. A. Smith, $50,000, of which he has since paid $35,000. In addition to that, William Dawson, jr., was guarantor of $53,000, of which $30,000 was overdrawa. As to thecause of the failure of the bank, it was testified that William Dawson, sr., owed it $281,000. The schedules of assets and liabilities of William Dawson, jr., have been filed in the district court. The assets are placed at $239,168.78, and the liabilities, $868,452.47. The face value of the assets is much higher. By far the largest portion of Mr. Daw. son's direct liabilities consists of in dividual notes. A few of these are secured, but most of them only by the indorsement of William Dawson, sr. As to the Scandia Bank, of Minneapolis, the committee states that its failure, according to the evidence, was honest, and it may yet pay in full. The committee says that the Washington Bank, of Minneapolis, went under for want of paid-up capital, direct and indirect loans to its officers, and from a lack of supervision. Dwelling upon the affairs of the Allemania Bank, of St. Paul, the report says that the assets, or a large portion of them, were worthless. The directors, it states, were heavy borrowers, and were guilty of misstatements. As to the affairs of the Minnesota Savings Bank, of St. Paul, the committee states the officers were borrowers. directly or indirectly. to an amount more than double the capital stock.
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closed, and that it would be as well to draw the check, and have the Columbia bank pay it directly. The teller agreed to this, and paid the money. After both banks failed, the city of Minneapolis did not want to take the payment as a charge against the city deposit in the Scandia bank, and the Scandia receiver did not want to have the payment a credit for the Columbia against its deposit. Since Mr. Kittleson had telephoned from across the street at a drug store, and not from the bank, where a state examiner then was, the receiver insisted that the payment was not authorized by the Scandia officials. It was all referred to the court, however, and the decision was that the payment was a valid one. This is the true explanation of that $10,000 deal which has puzzled the creditors, and which at one time, was to be brought before the grand jury.
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MATT JENSEN'S DEBTS. He Manages to Settle a $2,200 Judgment for $115. Luther Jaeger, the receiver of the reciver of the Scandia bank at Minneapolis, has been authorized by Judge Simpson to settle a $2,200 judgment against City Clerk Matt Jensen of this city for $115. Had the bill allowing the garnishment of city and county officials passed the legislature it is probable that the settlement would not have been requested by the receiver. Mr. Jaeger, in making a showing to the court for the power to settle, stated that Mr. Jensen had other judgments against him amounting to $4,000, and had no other recourses to pay with but the $5,000 a year he received from the city of St. Paul as salary. The further statement was made that Mr. Jensen threatened to go into bankruptcy if not allowed to make the settlement.
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MUST PAY TAXES. Judge Pond Hands Down an Important Decision. An important decision was rendered yesterday by Judge Pond in the case of the state against Luth Jaeger, as receiver of the Scandia Bank of Minneapolis, in which action was brought to enforce the payment or taxes on the sum of $2,485, held as assets of the bank by the receiver. In substance, the court holds that funds in the hands of a receiver of an insolvent bank are subject to taxation, the same as any other personal property. The action was brought by the receiver on the grounds that the money was in trust and that it was exempt from taxation the same as if it were on deposit. In a memorandum the court says: "It would certainly seem reasonable that after the property of such a defunct corporation has been forever passed from its control into the hands of a receiver and is no longer to be used for banking purposes, it should be as subject to taxation, the same in all respects as is personal property in the hands of a receiver of any other corporation. The powers, duties and obligations of receivers of banking corporations are substantially the same as receivers of other corporations, and no good reason can be assigned why the assets in their hands should not be subject to the same burdens."