Yegen Brothers (Billings, MT)

Episode Information

Episode UID
2310221991490
Episode Type
Run → Suspension → Closure
Bank Type
private
Bank ID
231022199 hash
Start Date
February 14, 1924
Location
Billings, Montana (45.783, -108.501)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
637ad2a41f046f1d

Response Measures

None

Description

Bank described in sources as a private (unincorporated) banking partnership; state examiner and receivers appointed.

Events (3)
1. February 14, 1924 Run
Cause
Local Banks
Cause Details
Run on the Billings branch tied to adverse banking conditions in eastern Montana and closures of the firm's other branches.
Measures
Officers posted notice of closure pending reorganization; bank closed to await state examiner.
Newspaper Excerpt
closed yesterday as the result of a run on the Billings bank of Yegen Brothers Thursday.
Source
newspapers
2. February 15, 1924 Suspension
Cause
Government Action
Cause Details
State bank examiner (deputy superintendent) took the institution into custody following the run; closure posted by officers awaiting examiner.
Newspaper Excerpt
notice was replaced by another stating that the institution had been taken over by the state examiner.
Source
newspapers
3. March 22, 1924 Receivership
Newspaper Excerpt
more than five days has elapsed since Harry L. Hanson was placed in charge as receiver of the Butte bank of the Yegen brothers and ... more than five days has elapsed since J. Henry Nibbe was placed in charge of the assets and properties of Yegen Brothers' Billings bank as receiver,
Source
newspapers

Newspaper Articles (6)
1. February 16, 1924 The Butte Miner Butte, MT
Article from The Butte Miner, February 16, 1924

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Article Text

FLURRY AT BILLINGS SUSPENDS BUSINESS OF YEGEN BROTHERS Butte Bank in Hands of State Examiner; Yegen Says Will Resume. Although it has been demonstrated that banking conditions in Butte and Anaconda are sound, the Yegen Brothers bank in this city was closed yesterday as the result of a run on the Billings bank of Yegen Brothers Thursday. The notice was posted on the door in the morning, reading "Closed by order of Christian and Peter Yegen pending reorganization." Late in the afternoon this notice was replaced by another stating that the institution had been taken over by the state examiner. C. M. McCoy, representing the state office, arrived at 3 o'clock on the train from Helena, and made it clear that the closing of the Butte branch is due to the conditions in eastern Montana, and not to any strictly Butte situation. On the door of the bank in Billings yesterday a notice was posted announcing that the institution was closed by the officers awaiting action of the state bank examiner. Chris Yegen, president of the company which operates banks in Billings, Butte and Gardiner, and holds stock in the Anaconda National bank, said that the first three would be closed by the action taken. The Billings and Butte banks are capitalized at $100,000 each and the Gardiner bank at $20,000. Three of Banks Private. The three banks that closed are not incorporated and are private banks. This means that there is no limit to the liability of their owners to the depositors. In other words, all the property and wealth of Christian and Peter Yegen are responsible for the obligations of these three institutions. The action in Butte was received with marked equanimity, and the general sentiment seemed to be that depositors will eventually be paid in full. Curious crowds kept coming and going, attracted by the notices, but changed rapidly and without demonstration. Called to Butte by the announcement that the Yegen bank branch here had closed along with the Billings and Gardiner institutions, C. M. McCoy of Helena, deputy superintendent of banks, after his arrival at 3 o'clock, was able to put in but a short time in examination of books and records, but stated in an interview last evening in the New Finlen hotel that he will make a thorough investigation for his department, which should take a week or probably 10 days. Pending Examination. During the time the examination is (Continued on Page 2—Column 2)

2. March 30, 1924 The Butte Miner Butte, MT
Article from The Butte Miner, March 30, 1924

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INTENT TO PREFER IS ALLEGED IN PETITION Continued from Page One. quin, and to the Honorable Charles N. Pray, Judges of the District Court of the United States, for the District of Montana: Petitioners File. "The petitions of Donald Campbell, agent for Edward L. Campbell; Harry J. Henderson, Jr., by H. J. Henderson; Dorothy M. Henderson, by H. J. Henderson; Patricia B. Henderson, by H. J. Henderson; Elmer Carkeek, by Mary J. Bowden, guardian; Mr. and Mrs. J. E. Stimpson, W. R. Stimpson, by Mrs. J. E. Stimpson; Patrick J. Harrington, Mrs. K. Morrissey, W. T. File, Lloyd T. File, by W. T. File, guardian; Anne Gurtsen, John Mikojok; Roy H. Sanders, Cora L. Williams, Michael O'Leary respectfully shows that at all times herein mentioned Peter Yegen and Chris Yegen have been and now are co-partners and constitute the partnership of Yegen Brothers, doing in the state and district aforesaid a banking business and engaged chiefly in banking, and that neither of them, nor has the said partnership for a period of five years next preceding the filing of the first petition in this cause, neither of said partnership nor either member has been a laborer or a wage earner. "That these petitioners desire to intervene and join with the first three petitioning creditors filing the first petition in this suit and to have the said partnership adjudged bankrupt within the purview of the acts of congress, and your petitioners allege that the said partnership owes debts to the amount of $1,000 and also to the amount of $2,000,000. Depositors' Amounts. "That the said partnership has for 10 years or more next preceding the date of the filing of this, and also the date of the filing of the first petition herein, conducted a banking house at Butte, Montana, and before the filing of the first petition herein each of your petitioners had deposited and still has on deposit in its Butte banking house, without any security, the sum of, as to Petitioner Donald Campbell for Edward L. Campbell, $822; Harry J. Henderson, Jr., by H. J. Henderson, $12.98; Dorothy M. Henderson, $13.99; Patricia B. Henderson, $14.38; Elmer Carkeek, by Mary J. Bowden, $239.49; Mr. and Mrs. J. E. Stimpson, $100; William R. Stimpson, $69; Patrick J. Harrington, $1,000; Mrs. K. Morrissey, $987.50; W. T. File, $438.39; Lloyd T. File, $38.23; Anne Gwitsen, $600; John Mukojok, $837.39; Thomas O'Leary, $285; Roy H. Sanders, $500; Cora L. Williams, $40. "And further the petitioners allege that they are informed and believe that the said Yegen Brothers, a co-partnership, did in the months of January, 1924, and February, 1924, and previous to the 22nd day of March, 1924, being heavily indebted to the Anaconda National bank, to-wit: in an amount of more than $20,000; they, the said Yegen Brothers being then and there insolvent and knowing well their insolvency, with intent to prefer Anaconda National bank over other creditors and over these petitioning creditors, did pay on the said indebtedness to the Anaconda National bank more than the sum of $17,000; and at the time such payment was made the partnership of Yegen Brothers was insolvent. No Answer Made. "And further, these petitioners allege that more than five days has elapsed since Harry L. Hanson was placed in charge as receiver of the Butte bank of the Yegen brothers and neither the said Peter Yegen nor the said Chris Yegen nor the said partnership of Yegen Brothers has taken any step toward dissolving the said receivership or to relieve the assets and properties so delivered into the charge of the said receiver, to-wit: More than $500,000 worth of property from his charge or custody, and further that more than five days has elapsed since J. Henry Nibbe was placed in charge of the assets and properties of Yegen Brothers' Billings bank as receiver, and the said properties being of a value of more than $300,000, and no steps have been taken by either the said partnership or the said partners to relieve the said property from the said charge of the said receiver; therein and thereby the said Yegen Brothers, being insolvent at all times herein mentioned since January 1, 1924, have committed additional acts of bankruptcy, and petitioners allege that by placing the said Yegen Brothers' bank in Billings in charge of J. Henry Nibbe, with directions to him to marshal the assets of the creditors of that bank and likewise placing the Butte bank of Yegen Brothers in charge of Harry L. Hanson, with directions to marshal the assets there is obliged to be in the very nature of such orders preferences in favor of the depositors and creditors in one of the said banks over the depositors and creditors of the other of said banks. Debts Not Represented. "And further, petitioners allege that Yegen Brothers, partners, and each members of the firm, are insolvent and have been insolvent at all times since January 1; that they and each of them owe large amounts of money, and the outside of the said deposits in either of the said banks, an amount of money exceeding $20,000, and that no provision is made in the said receivership orders for payment of debts of Yegen Brothers which are not represented by deposits in the said bank, other and further preference were made against these creditors in favor of depositors in one or the other of the said banks, and therein and thereto acts of bankruptcy have been committed by the said Yegen Brothers."

3. April 4, 1924 The Circle Banner Circle, MT
Article from The Circle Banner, April 4, 1924

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BANK CASE TAKEN INTO FEDERAL COURT Want Government to Take Charge of Three Yegen Banks Now Closed Alleging that Chris Yegen and Peter Yegen, co-partners in the Yegen Brothers' banking house of Butte, Billings and Gardiner, are insolvent to the extent of more than $1,000,000, three of the creditors, Anna Olsen, John Demos and Steve Gongu, through their attorneys, Maury & Maury, have filed an involuntary petition in bankruptcy with the federal court at Butte. The petition urges that Federal Judge George Bourquin or Federal Judge Charles N. Pray pronounce the Yegen brothers bankrupt, which would mean the appointment of a second receiver, this one to supersede the appointment of Harry L. Hanson by the local district court and the appointment of the Billings receiver. The petition declares that the Yegen brothers "committed an act of bankruptcy in that because of insolvency there was by the district court of Silver Bow county put in charge a receiver of the property one Harry L. Hanson." Yegen Brothers are given 20 days in which to answer the involuntary petition and should they be found bankrupt by the court, the government will itself take over the jurisdiction of the bank property and will undoubtedly, according to Mr. Maury, place a man over the three closed institutions. The bank having been a private institution, all of the personal property of the Yegen Brothers can be sold to take care of the depositors.

4. April 25, 1924 The Producers News Plentywood, MT
Article from The Producers News, April 25, 1924

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BANK CASE TAKEN INTO FEDERAL COURT WANT GOVERNMENT TO TAKE CHARGE OF THREE YEGEN BANKS NOW CLOSED. Alleging that Chris Yegen and Peter Yegen, co-partners in the Yegen Brothers' Banking house of Butte, Billings and Gardiner are insolvent to the extent of more than $1,000,000, three of the creditors, Anna Olsen, John Demos and Steve Gongu, thru their attorneys, Maury & Maury, have filed an involuntary petition in bankruptcy with the federal court at Butte. The petition urges that Federal Judge George Bourquin or Federal Judge Charles N. Pray pronounce the Yegen brothers bankrupt, which would mean the appointment of a second receiver, this one to supersede the appointment of Harry L. Hanson by th elocal district court and the appointment of the Billings receiver. The petition declares that the Yegen brothers "committed an act of bankruptcy in that because of insolvency there was by the district court of Silver Bow county put in charge a receiver of the property one Harry L. Hanson." Yegen Brothers are given 20 days in which to answer the involuntary petition and should they be found bankrupt by the court, the government will itself take over the jurisdiction of the bank property and will undoubtedly, according to Mr. Maury, place a man over the three closed institutions. The bank having been a private institution, all of the personal property of the Yegen Brothers can be sold to take care of the depositors.

5. February 9, 1928 The Billings Times Billings, MT
Article from The Billings Times, February 9, 1928

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BUTTE BANK RECEIVER SUES LOCAL BRANCH Claiming that the Yegen Brothers bank of Billings owes the Yegen Brothers bank of Butte amounts which total more than $80,000, Harry Hanson, receiver of Yegen Brothers, bankers of Butte, has brought debt action in the district court this county against W. E. Dickson, receiver for Yegen Brothers, bankers Billings. The plaintiff claims that before the banks became insolvent, the Billings bank gave two promissory notes each to the National Bank of the Republic of Chicago. In the transactions that followed certain collateral of the Butte bank were sold by the Chicago bank and were credited upon the indebtedness of the Billings bank, the total amounting to 20 which, with interest, amounted to $36,735.35 on December 10, claimed. It is contended by the plaintiff that it was the understanding between the officers and directors of the two Yegen banks that the Butte bank was be credited with the amounts cured from but by oversight and inadvertance on the part of accountants and employes the records of the Billings bank do not show such intention. The Butte bank also claims that the Billings bank is indebted to the Butte bank for total of $14,980.26 with interest which is the balance due from the Billings bank to the Chicago bank and which the plaintiff has tained for valuable consideration with the sanction of the district court of the second judicial district. A further claim of $34,081.62 with interest is made for indebtedness on open accounts for moneys belonging to the Butte bank and not denced by notes. The defendant mits an indebtedness of the complaint says. The action was filed by Kremer, Sanders and Kremer of Butte.

6. February 11, 1932 The Billings Gazette Billings, MT

Article Text

BANK RECEIVER PAYS Final Payment Brings Total to 26.45 Per Cent. Announcement was made Wednesday that final dividend of 11-5 per cent is ready for payment to the creditors of Yegen Brothers, bankers of Billings. The checks for payment to the individual creditors have been made out, according to Grover C. Cisel, receiver. and will be turned over on receipt of receiver's certifThe present payment is for total of $8,082.47 and is divided among 713 creditors of the bank. The payment makes total dividend payment of 26.45 per cent. The bank was closed in 1924. The bank was organized under state law and the receivership has been under the supervision of the district court.