First National Bank (Butte, MT)

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Episode Information

Episode UID
256601161
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
25660 national
Charter Number
2566
Start Date
September 1, 1896*
Location
Butte, Montana (46.004, -112.535)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e3ea26065e1da876

Response Measures

Full suspension

Other: Bank was closed on recommendation of management (effectively a suspension) and later placed in receivership; rumors of a private rescue (A. J. Davis) were reported but did not materialize.

Description

Receiver was appointed and officers later indicted for false entries and misapplication of funds.

Events (4)
1. September 28, 1881 Chartered
Source
historical_nic
2. September 1, 1896* Run
Cause
Correspondent
Cause Details
Heavy drafts from the East and state banks drawing balances caused large withdrawals that drained cash
Newspaper Excerpt
large depositors on the day preceding the suspen-sion drained the bank of cash
Source
newspapers
3. September 1, 1896* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Institution closed after heavy withdrawals and apparent insolvency tied to poor management/misapplied funds
Newspaper Excerpt
When it was decided to close, on recommendation of E. D. Edgerton ... the bank closed
Source
newspapers
4. December 16, 1896 Receivership
Newspaper Excerpt
Two indictments are against E. D. Edgerton, manager and vice-president and now receiver of the institution
Source
newspapers

Newspaper Articles (7)
1. September 15, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, September 15, 1896

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Article Text

large depositors on the day preceding the suspen- sion drained the bank of cash, and its paper failed to go through the clearing-house. This was gen- erally known, but a rumor was circulated that A. J. Davis of Butte, one of the large owners in the bank, had agreed to come to the rescue of the in- stitution with sufficient cash to tide it over its difficulties. When it was decided to close, on recommendation of E. D. Edgerton, two of the heaviest stockholders, S. T. Hauser, the president, and A. J. Davis, were not present. The drafts on the bank from the East have been par- ticularly heavy, and tate banks that kept their balances at the First National had been drawing on their accounts sharply, as have other depos- itors who carried large accounts. Mr. Edgerton thought that after September 1 there would be a slight cessation, but the contrary was the fact. Mr. Edgerton sa s that he was not apprehensive of any serious difficulty until the afternoon of the day preceding the actual closing of the institution, because he was in negotiation for funds which he thought he would secure, and these would have been sufficient to carry the bank through. Had the bank opened it would have been for only a short time, and there would have been a run, and those earliest would practically have become preferred creditors. The Indepen- dent says, concerning the deposits in the bank, that State Treasurer Wright had $188,604 91 in the concern when it cosed, but he is secured by an in- demnity bond from the bank to the amount of $600,000, which is signed as follows: S. T. Hauser, $125,600: E. D. Edgerton, $75,000: C. K. Cole, $50,000; James A. Talbot of Butte, $50.000; A. J. Davis of Butte, $50,000; Henry Kline, $50,000; John P. Murphy, $25,000; E. W. Beat- tie, $25,000; John C. Curtain, $25,000; A. J. Seligman, $25.000; George F. Cope, $25,000; J. B. Sanford, $25,000. One of the heaviest depositors is the Northern Pacific Railway, which, when the bank closed, had a balance of nearly $100,000 to its credit. A large sum had been withdrawn by this company but two days previously. The City Treasurer had $25,000 of the city's funds in the bauk, but he is also secured by an indemnity bond. There was no county money in the institu- tion. Mr. Edgerton says that with proper and judicious handing of the assets the bank will not only pay depositors in full, but will also pay a dividend to stockholders.

2. December 17, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, December 17, 1896

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Article Text

BUTTE'S COLLAPSED BANK. Four Indictments by the United States Grand Jury. BUTTE, MONT., Dec. 16.-The United States Grand Jury at Helena has returned four indictments against the defunct First National Bank officers growing out of the recent sensational failure. Two indictments are against E. D. Edgerton, manager and vice-president and now receiver of the institution, charging him with making false entries to the Comptroller of the Currency relative to amounts alleged to be due from other banks, misapplying funds and making unlawful payments with bank funds. The other indicuments are jointly against Edgerton and George H. Hill, assistant cashier. Both men were arrested on bench warrants.

3. December 17, 1896 The Record-Union Sacramento, CA
Article from The Record-Union, December 17, 1896

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Article Text

BANK OFFICIALS ARRESTED. Indicted by the Grand Jury for Mak= ing False Entries. BUTTE (Mont.), Dec. 16.-The United States Grand Jury at Helena this morning returned. four indictments against officers of the defunct First National Bank, growing out of the recent sensational failure. Two indictments are against E. D. Edgerton, Manager and Vice-President, and now receiver of the institution, charging him with making false entries to the Comptroller of the Currency relative to amounts alleged to be due from other banks, misapplying funds and making unlawful payments with bank funds. The other indictments are jointly against Edgerton and George H. Hill, Assistant Cashier. Both men were arrested on bench warrants.

4. December 23, 1896 The Enterprise Wellington, OH
Article from The Enterprise, December 23, 1896

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Article Text

Serious Charges Against Bankers. BUTTE, Mont., Dec. 17.-The grand jury at Helena returned four indi tments yesterday against officers of the defunct First national bank, growing out of the recent failure. Two indictments are against E. D. Edgerton, former manager and vice president, and now receiver of the institution, charging him with making false returns to the comptroller of the currency relative to amounts alleged to be due from other banks, misapplying funds and making unlawful payments with bank funds. The other indictments are jointly against Edgerton and George H. Hill, assistant cashier. Both men were arrested.

5. December 24, 1896 Iron County Register Ironton, MO
Article from Iron County Register, December 24, 1896

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Article Text

BANK OFFICIALS INDICTED. Serious Charges Against filcers of the Defunct First National Bank of Butte, Mont. BUTTE, Mont., Dec. 17. The United States grand jury at Helema yesterday morning returned four indictments against officers of the de funct First national bank, growing out of the recent sensational failure. Two indictments are against E. D. E gerton, former manager and vice-p resident, and now receiver of the insti tution, charging him with making fa ilse entries to the comptroller of the currency, relative to amounts allo wed to be due from other banks, misa pplying funds and making unlawful pa ayments with bank funds. The other indictments à are jointly against Edgerton and Geor) re H. Hill, arwere assistant cashier. Both men rested on bench warrants. 1 The indictments were not unexpect ed, but the grand jury's report on th e bad a management of the bank creat sd sensation.

6. December 26, 1896 The Cape Girardeau Democrat Cape Girardeau, MO
Article from The Cape Girardeau Democrat, December 26, 1896

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Article Text

BANK OFFICIALS INDICTED. Serious Charges Against Officers of the Defunct First National Bank of Butte, Mont. BUTTE, Mont., Dec. 17.-The - United States grand jury at Helena yesterday morning returned four indictments against officers of the defunct First national bank, growing out of the recent sensational failure. Two.indietments are against E. D. Elgerton. former manager and vice-president, and now receiver of the institution, charging him with making false entries to the comptroller of the currency, relative to amounts allowed to be due from other banks, misapplying funds and making unlawful payments with bank funds. The other indictments are jointly against Edgerton and George H. Hill, assistant cashier. Both men were arrested on bench warrants. The indictments were not unexpected, but the grand jury's report on the bad management of the bank created a sensation.

7. January 7, 1898 The Anaconda Standard Anaconda, MT
Article from The Anaconda Standard, January 7, 1898

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Article Text

# WHO OWNS THE GARDENS A Suit Brought Against H. L. Frank et al. to Quiet Title. # IT IS MINING GROUND The Butte Hardware Company Is the Plaintiff in the Action-Facts Re- cited in the Complaint Served Yesterday. A suit was brought in the district court yesterday by the Butte Hardware company against H. L. Frank, John S. Clapp and F. H. Symons to quiet title to some mining ground covering the Columbia gardens. The hardware com- pany claims under an old judgment against John A. Gordon and Frederic Ritchie, the latter the original owner of the gardens. The complaint filed in the case yesterday recites the fact that on Sept. 6, 1890, the plaintiff company obtained a default judgment against Gordon & Ritchie for $922, and that on May 18, 1895, an execution was issued and the sheriff levied on the Evangelist, Mascott, Copper Trust, John the Bap- tist, Silver Moon and Eddie lode claims, the property of Mr. Ritchie. At the sheriff's sale the Butte Hardware com- pany purchased the property, and there being no redemption made, a sheriff's deed was executed to the purchaser. After the judgment had been obtained Paul Davis conveyed the property to Ritchie, and on the same day the latter deeded it to H. L. Frank. Afterwards Frank obtained patents to the ground and on Oct. 23, 1896, he sold the sur- face ground of the Copper Trust to John S. Clapp and F. H. Symons, being already claimed by the Butte Hard- ware company. The latter alleges that Frank, Clapp and Symons are claiming title to it wrongfully and their posses- sion is a cloud on the plaintiff's title, wherefore the court is asked to compel them to make an absolute deed to the company for the ground and to declare the defendants to have no right or title to the premises. An amended complaint was yester- day filed in the case of P. L. Miller against the city of Butte in the action to recover judgment for one-half the value of the forged city warrants which Miller discovered while examining the records under a contract he had with Mayor Thompson. He claims there is due him under the contract $972.33, which the city has refused to pay, though it has given notice that the warrants in question were forged and would not be paid. In his amended complaint, Miller alleges that the city has failed to commence and prosecute with reasonable diligence any suits for the purpose of procuring a judicial col- lection of the warrants, but under a resolution of the council, has refused to pay them. On a second cause of action Mr. Miller alleges that he also discov- ered that $360 in forged warrants had been improperly paid by the city treas- urer, and the city had agreed to bring suit against the treasurer and his bondsmen to recover the amount so il- legally paid by that officer and pay to the plaintiff one-half of the sum recov- ered, but in violation of the agreement the city has failed and neglected to commence the suit, although about two years have elapsed since the discovery was made and reported to the city by the plaintiff, and he therefore demands judgment for $180, being his half of the warrants illegally paid by the treas- urer. An amended complaint was yester- day filed in the case of the First Na- tional bank against John E. Black and others, a suit for $8,381, due on a note, and for taxes paid and to foreclose a mortgage on the Tom Haney lode claim and on lot 5, block 42, of the city of Butte. The court is asked to appoint a receiver to take charge of the city property and collect the rents and prof- its during the pendency of the action in court and during the period allowed for the redemption of the property after the sale, and apply the income to the payment of taxes, court costs and other- wise as directed by the court. The es- tate of T. S. Hamilton has a mortgage on the Tom Haney for $2,500, dated May 15, 1884, and it is claimed by the bank that mortgage has become barred by the statute of limitations and the court is asked to so decree.