First National Bank (Grand Forks, ND)

View Charter #2570 on SPMC View balance sheet

Episode Information

Episode UID
257001599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
25700 national
Charter Number
2570
Start Date
March 4, 1933
Location
Grand Forks, North Dakota (47.925, -97.033)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e23d605c4daf18c5

Response Measures

None

Receivership Details

Depositor recovery rate
80.0%
Date receivership started
1933-11-15
Share of assets assessed as good
41.2%
Share of assets assessed as doubtful
53.4%
Share of assets assessed as worthless
5.4%

Description

Bank closed March 4, 1933 during Roosevelt's national banking holiday and later placed under a receiver.

Events (5)
1. October 6, 1881 Chartered
Source
historical_nic
2. March 4, 1933 Suspension
Cause
Government Action
Cause Details
Closed as part of the national banking holiday proclaimed by President Roosevelt on March 4, 1933.
Newspaper Excerpt
The bank failed to open after it was closed during the bank holiday proclaimed by President Roosevelt March 4, 1933.
Source
newspapers
3. June 25, 1933 Other
Newspaper Excerpt
Force Works Late Preparing Common Stock Sale Forms for Depositors of First National. An augmented force worked late into the night Saturday at the First National bank preparing forms for submission to depositors for subscriptions to the common stock in the new bank that is to rise from the assets of the defunct institution.
Source
newspapers
4. November 15, 1933 Receivership
Source
historical_nic
5. November 15, 1933 Receivership
Newspaper Excerpt
Arguments ... against W. V. O'Connor, receiver for the First National bank of Grand Forks in which the plaintiffs seek to regain monies which were on deposit in the bank when it closed on March 4, 1933.
Source
newspapers

Newspaper Articles (6)
1. June 25, 1933 Grand Forks Herald Grand Forks, ND

Article Text

Force Works Late Preparing Common Stock Sale Forms for Depositors of First National. An augmented force worked late into the night Saturday at the First National bank preparing forms for submission to depositors for subscriptions to the common stock in the new bank that is to rise from the assets of the defunct institution. Details of the plan of reorganization worked out by J. F. T. O'Connor, comptroller of the currency, in co-operation with local committees, call for establishment of the new bank before the 50 per cent payment can be made on deposits in the old bank. This emphasizes the need for the fullest co-operation on the part of depositors, for the 50 per cent payment was increased from the previously suggested 40 per cent to make the additional 10 per cent available for stock subscriptions. There will be no advance outlay of money. Necessary forms will be prepared for the depositor to sign, simply pledging a certain part of his forthcoming dividend in payment for the stock covered by his subscription. Then the stock will be paid for through the new bank and the balance of his 50 per cent deposit payment will be credited to him in the new bank, where he may obtain it in cash or continue it on deposit. The plan contemplates the sale of $100,000 in common stock to depositors. Ten thousand shares will be sold at $15, the extra $50,000 going into surplus as required under the law. Matching the local investors dollar for dollar, the Reconstruction Finance corporation will subscribe for $150,000 in preferred stock, thus giving the new bank a capital and surplus of $300,000. In addition to this $150,000 investment, the R. F. C. will advance $810,000 on the assets of the old bank to aid in creating the fund needed to pay the 50 per cent dividend on old deposits. All details of the organization plan have been worked out in Washington, and these will be published more fully later. In addi- (Continued on page 12)

2. November 10, 1934 Grand Forks Herald Grand Forks, ND

Article Text

TO ARGUE N. D. MILL CASE AGAINST BANK Hearing Set at Fargo Tuesday in Deposit Suit. FARGO.—(AP)— Arguments are to be presented to Judge Andrew Miller in federal court here Tuesday in an action brought by the North Dakota state mill and elevator against W. V. O'Connor, receiver for the First National bank of Grand Forks in which the plaintiffs seek to regain monies which were on deposit in the bank when it closed on March 4, 1933. The mill and elevator seeks to have its deposit, amounting to approximately $96,000, half of which already has been paid, designated as a preferred claim. It alleges the money was wrongfully deposited in the bank because it was not covered by a depositor's bond and therefore the money merely was held in trust by the bank. The bank receiver claims no bond was required and that the money deposited by the state mill and elevator was merely one of numerous general deposits and that it in no way was construed as a trust fund. A final hearing at which testimony was taken was held Friday. It was the third hearing since the case was begun more than a year ago, previous hearings having been held at Bismarck and Grand Forks. P. O. Sathre, attorney general, T. H. Thoresen and H. A. Bronson, representing the mill and elevator while Tracy and Phillip R. Bangs are attorneys for the bank. The bank failed to open after it was closed during the bank holiday proclaimed by President Roosevelt March 4, 1933.

3. November 10, 1934 The Forum Fargo, ND

Article Text

MILL SEEKS TO REGAIN DEPOSIT Asks Money in Closed Bank be Made Preferred Claim Arguments to presented Andrew Miller in federal Judge an action brought here Tuesday Dakota state mill and by the North against W. and elevator First National Bank ceiver for the of Grand which the tiffs to which in the bank when on deposit March 1933. closed on mill to have The and approxiIts half which already has designated ferred It alleges the money deposited in the bank not by and therefore the positor's merely was held in trust money the bank receiver claims no bond The and the money the and by general of merely one and It in posits strued trust fund. as which testimony final held Friday. It taken the third since the begun been held at Bishearings and Grand Sathre, general, H. and repelevator while resent the Phillip Bangs are Tracy torneys for the The bank falled open during the bank holiday was closed President Roosevelt the proclaimed March 1933.

4. November 10, 1934 The Fargo Forum, Daily Republican, and Moorhead Daily News Fargo, ND

Article Text

MILL SEEKS TO REGAIN DEPOSIT Asks Money in Closed Bank be Made Preferred Claim Arguments are to be presented to Judge Andrew Miller in federal court here Tuesday in an action brought by the North Dakota state mill and elevator against W. V. O'Connoer, receiver for the First National Bank of Grand Forks, in which the plaintiffs seek to regain monies which were on deposit in the bank when * closed on March 4. 1983. The mill and elevator seeks to have its deposit. amounting to approxio mately $96,000, half of which already has been paid, designated as & preferred claim. It alleges the money was wrongfully deposited in the bank because it was not covered by a do positor's bond and therefore the money merely was held in trust by the bank. The bank receiver claims no bond was required and the money deposited by the state mill and alevator was merely one of numerous general posits and it in no way was come strued as trust fund. A final hearing at which testimeny was taken was held Friday. It was the third hearing since the case was begun more than year ago, previous hearings having been held at Bla. marck and Grand Forks. P. O. Sathre, attorney general, T. H. Thoresen and H. A. Bronson, rep. resent the mill and elevator while Tracy and Phillip R. Bangs are at torneys for the bank. The bank failed to open after # was closed during the bank holiday proclaimed by President Roosevelt

5. November 10, 1934 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 10, 1934

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Article Text

STATE MILL SEEKS CLOSED BANK FUND Alleges Money Was Wrongfully Deposited, Not Covered By Bond, in Trust Fargo, N. D., Nov. 10.-(A))-Arguments are to be presented to Judge Andrew Miller in federal court here Tuesday in an action brought by the North Dakota state mill and elevator against W. V. O'Conner, receiver for the First National Bank of Grand Forks in which the plaintiffs seek to regain monies which were on deposit in the bank when it closed on March 4, 1933. The mill and elevator seeks to have its deposit, amounting to approximately $96,000, half of which already has been paid, designated as a preferred claim. It alleges the money was wrongfully deposited in the bank because it was not covered by a depositor's bond and therefore the money merely was held in trust by the bank. The bank receiver claims no bond was required and that the money deposited by the state mill and elevator was merely one of numerous general deposits and that it in no way was construed as a trust fund. A final hearing at which testimony was taken was held Friday. It was the third hearing since the case was begun more than a year ago, previous hearings having been held at Bismarck and Grand Forks. P. O. Sathre, attorney general; T. H. Thoreson and H. A. Bronson, represent the mill and elevator while Tracy and Phillip R. Bangs are attorneys for the bank. The bank failed to open after it was closed during the Bank Holiday proclaimed by President Roosevelt March 4, 1933.

6. December 21, 1934 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 21, 1934

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Article Text

Court Rules $31,000 Preferred Mill Claim Grand Forks, N. D., Dec. 21.-(A)A memorandum opinion of the federal district court in Fargo Thursday held the receiver of the old First National Bank of Crand Forks liable for immediate payment of. approximately $31,000 to the North Dakota state mill and elevator as a preferred claim on its deposits in the closed bank. H. A. Bronson, counsel for the mill, was advised of the opinion by Judge Andrew Miller at Fargo. The action began in June, 1933, against W. H. Schulze as conservator. It was contended that the mill's deposits of $92,246.48 when the bank closed March 4, 1933, constituted a trust fund and was a preferred claim. The mill claimed the money was deposited illegally. Judge Miller found that $62,100.45 of the deposits were subject to the trust and that, of the balance, the mill only had a claim as a general creditor of the bank. Since 50 per cent of the $62,000 was paid along with half of all depositors, claims against the bank, the ruling gave the mill a $31,050 preferred claim.