gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
1ef3e784351cac87
Response Measures
None
Receivership Details
Depositor recovery rate
57.5%
Date receivership started
1927-05-25
Date receivership terminated
1936-08-12
OCC cause of failure
Fraud
Share of assets assessed as good
24.2%
Share of assets assessed as doubtful
48.0%
Share of assets assessed as worthless
27.8%
Description
Bank was closed voluntarily to avoid a run after the cashier disappeared; receiver soon appointed.
Events (4)
1.December 16, 1882Chartered
Source
historical_nic
2.May 23, 1927Suspension
Cause
Rumor Or Misinformation
Cause Details
President closed bank to avoid an anticipated run sparked by rumors arising from the unexplained disappearance/absence of the cashier; closed voluntarily pending examiners.
Newspaper Excerpt
The First National bank of Grafton did not open for business today ... it had been closed voluntarily pending a checkup by national bank examiners.
Source
newspapers
3.May 25, 1927Receivership
Source
historical_nic
4.May 25, 1927Receivership
Newspaper Excerpt
Jay M. Riley ... has been appointed receiver for the First National Bank, local institution which closed its doors voluntarily on Tuesday.
Source
newspapers
Newspaper Articles (20)
1.May 24, 1927Morning PioneerMandan, ND
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OF COL. SPRAGUE PUZZLES FAMILY
LEFT GRAFTON MAY OMAHA WHERE ABOUTS UNKNOWN
FOR
Bank Closed to Avoid Any Panic
NO DEFALCATION BY MISSING MAN OR ANYONE ELSE SAYS FATHER
May The First National Bank Grafton did not open for today, made by H Sprague, president, that had been closed voluntarily pending checkup by national bank examiners, whom arrived in Grafton early this afternoon. Mr. Sprague that he hoped the would result the re-opening of the bank being permitted by the currency. the reasons for the clos ing Mr. Sprague said that he had feared run on the bank in part to arising from the Grafton of his Sprague, the cashier, and that rather risk, had bank pending check. in order all depositors might There defalcation on the part of Manvel Sprague any Sprague stated and expres. sed his belief that his absence May was to break and worry Manvel Sprague left Grafton May He to father was in California that intendOmaha attend Nation Guard school and then to Hot Springs ing that was very health and felt the need complete rest. He had made other his family. He apparently did not go Omaha, howand present whereabouts unknown. Efforts to get in touch with him been The First National one the oldest banks in this part of the state deposits of nearly
GRAFTON FIRST NATIONAL BANK CLOSES DOORS: CASHIER MISSING
M. H. Sprague Leaves City Under Guise of Attending Omaha Meeting
INSTITUTION HAD MILLION FOOTING
President States Hopes Check Will Permit Reopening hotel run some slow fects was
3.May 25, 1927The ForumFargo, ND
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BANK CLOSING CAUSE GIVEN CHECK OF EXAMINERS
Head of First National Declares Defalcation Evidence Lacks
May checkup the First National bank of closing which tobeing made federal bank examiner whose report to the comptroller the of the bank probably will The probably will take Wednesday and possibly longer, is bank did open for this an ment president that would be closed pending by the arrived in Grafton early Two examiners were expected tonight Wednesday of the banks Grafton been affected by the closing the First National Hopes for Reopening H. president of the National bank said today that he hoped the checkup would result permission for reopening the bank given by the compthe the reasons for closing the Mr. Sprague said had feared the bank, due, in part. to rumors arising from the absence from Graf. Manyel cashier and this bank checkup in order all positors treated alike. No Defalcation Seen There was defalcation on the of Manvel Sprague anyone and his belief that May to by overand worry Manvel Sprague left Grafton on May He written his who Omaha tional guard school and then Hot Springs for that was very health and felt need complete He had similar statements of family. He apparently did not Omaha, whereabouts Efforts to get in touch with him been unsucThe First National of the banks in of state deposits of nearly
4.May 25, 1927Grand Forks HeraldGrand Forks, ND
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CHECK UP OF CLOSED BANK IN PROGRESS
Re-Opening of First National at Grafton Hoped For By President.
(Herald Special Service) D., May check of the First NationGrafton made by federal whose report the of the questhe of the bank probably check up will probably take of and possibly bank did not for busian ment made by of that would be closed pending the check up by examiarrived in Grafton for that this afternoon. expected Neither the other banks of Grafton been in way by the closing of the First National.
Hopes To Reopen. president of the First National bank said that hoped the check up would result permission the of the given by the compthe for the closing of Mr. Sprague that there had an accumsome "slow the feared run on due part to arising from the absence his son, Manvel the bank this risk, closed bank pending that might treated alike, he No Defalcations
There no on the Manvel anyone Sprague and pressed his his sence May was caused Manvel Grafton He father California that Omaha Hot for that was very bad and the need of He had made simito other his He apparently did not his ent forts touch with him have been
Worried Over Bank
There eral H. worrying the He that this and the fact that his was generally health has account for his The First Bank of of the oldest financial this part the state undivided and surplus equal to the capitalization.
5.May 26, 1927The Albert Lea TribuneAlbert Lea, MN
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FORMER LOCAL BOY MISSING FROM GRAFTON
Manville Sprague Missing From North Dakota Bank-Father Closes Institution Fearing Run-Son's Absence Believed to Be Due to General Breakdown.
The St. Paul Pioneer Press of to day carried the following Associat ed Press Dispatch about a former Albert Lea boy. Manville Sprague married the daughter of Mrs. T. V. Knatvold, formerly of Albert "Lea, but since her husband's death, the late T. V. Knatvold of Albert Lea, she has been making her home with her daughter, Mrs. Sprague in Grafton: Crafton, N. D, May While officials of the First National bank here, which closed its doors voluntarily on Tuesday, still expressed today the hope that the bank would be allowed to re-open or business as soon as a checkup on the bank's affairs could be nade, the beginning of work on he checkup awaited the arrival here of two more, national bank ex aminers to assist the one already in harge of the closed bank. The wo were expected to reach Grafon today and work would be begun it once. It could not be stated by the of ficials how much time will be required for the work of going ove. he bank's paper, but it was hought that a very few days would sufficient. The re-opening of he bank will depend on the report of the bank examiners to the comp roller of the currency The closing of the bank has in 10 wise affected the other two Grafton banks. The continued absence of Manille Sprague, cashier of the closed ank, was still unexplained today, ut the belief that he is suffering rom a nervous breakdown from verwork and overworry was reit- erated by relatives and business associates. In Tuesday's issue of the Grand Fork's Herald the following dispatch was carried on the front page:
(Heraid Special Service) Grafton, N. D., May 24.-The First National bank of Grafton did not open for business today, and announcement was made by F. H. Sprague, president that it had been closed voluntarily pending a check up by national bank examiners, one of whom arrived in Grafton early this afternoon. Mr. Sprague said that he hoped the check-up would result in the re-opening of the bank being permitted by the comptroller of the Discussing the reasons for the closing of the institution Mr. Sprague said that he had feared 2 run on the bank due in part to rumors arising from the absence from Grafton of his son, Manvel Sprague, the cashier, and that rather than run this risk he had closed the bank pending a check up, in order that all depositors might be treated alike.
No Defalcations There was no defalcation on the part of Manvel Sprague, or anyone else, F. H. Sprague stated, and expressed his belief that his son's ab sence since May 7, was due to a nervous breakdown caused by over work and worry. Manvel Sprague left Grafton on May 7. He had written to his father who was in California that he intended to go to Omaha to attend a national guard school, and then expected to go to Hot Springs for a long rest, adding that he was in very bad health and felt the need of a complete rest. He had made similar statements to other members of his family. He apparently did not go to Omaha, however, and his present wher bouts is un known. Efforts to get in touch with him have been unsuccessful.
Worried Over Bank There had been an accumulation of slow paper in the bank for several years past. F. H. Sprague said today, and Manvel Sprague had been worrying over the situation. He believes that this worry, and the fact that his son was in generally poor health has resulted in a nervous break down which would account for his absence and silence. The First National Bank of Grafton was one of the oldest financial institutions in this part of the state. It was capitalized at $50,0000; and had undivided profits and surplus approximately equal to the capitalization.
6.May 26, 1927The Bismarck TribuneBismarck, Mandan, ND
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DEPOSITORS SHOULD GET CHECKS SOON Checks Here Now For Practically All Claims-Payees Must Act Quickly Depositors in the City National bank who have not yet called for their 60 per cent dividend checks and certificates of stock in the Depositors Holding company are urged to do so immediately so that the affairs of the receivership may be closed up at the earliest possible date. The quicker the receivership can be dispensed with, the less expense there will be for the holding company to stand, directors point out. Checks for all claims filed up to and including May 13 have now been returned here from Washington and are awaiting the payees. These cover practically all claims, as only a very few were filed after that date. Jay M. Riley, who has been receiver here for the national banking department. has been transferred to Grafton. where he will be in charge of the affairs of the First National bank which closed a few days ago, but the work of the receiver here will be in charge of his assistant, A. M. Anderson. Checks which are not called for before the work of the eiver is completed here will be returned to Washington, according to Mr Anderson, after which transactions must be carried on by correspondence which will cause much delay and inconvenience. For this reason, depositors should get their checks immediately, he states, urging all who can to call at the bank on Friday or Saturday of this week.
7.May 26, 1927The Bismarck TribuneBismarck, Mandan, ND
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RILEY NAMED RECEIVER OF GRAFTON BANK Man Who Had Charge of Affairs of Bank in Bismarck to Make Checkup There Grafton. N. D., May 26.---(AP)--Jas M. Riley, who has been receiver of the closed City National bank of Bismarck, has been appointed receiver for the First National Bank, local anstitution which closed its doors voluntarily on Tuesday. He arrived here today and will work with the three national bank examiners who are checking up the bank's affairs, which work got under way today. Mr. Riley was named in response to a request by officials of the bank that a receiver be named. It was announced today that a complete checkup on the affairs of the bank would take a much longer time than was at first suggested and it is thought that from 10 days to two weeks may be required. No word had been received today from M. H. Sprague, cashier of the bank who has been absent for the last three weeks. Friends of Mr. Sprague believe he has suffered a physical breakdown and that he will communicate with relatives here as soon as he recovers.
8.June 2, 1927The Bismarck TribuneBismarck, Mandan, ND
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RILEY HERE WEDNESDAY Jay M. Riley, formerly receiver of the City National bank here but now in charge of the closed First National bank at Grafton, was in Bismarck for a few hours Wednesday to complete the transfer of the receivership here to A. M. Anderson. Mr. Anderson was Mr. Riley's assistant here until the latter was sent to Grafton, and has now been appointed as receiver in charge.
9.June 10, 1927The Bismarck TribuneBismarck, ND
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AFFAIRS OF GRAFTON MILL TO BE PROBED
Reports Show Grain in Storage Much Less Than Storage Tickets Call For
Investigation of the affairs of the Grafton Roller Mill company, Grafhas been launched by the grain the state railroad board. Reports by railroad board officials show storage tickets $49,553 only $12,871 worth of grain flour actually storage. check made determine shipments grain commission houses made recently are sufficient to make up the difference. has storage bond elevator $5,000 but unless additional grain cover the storage tickets produced ticket will be called storage upon take loss approximating
Reports Do Not Check Reports recently Eggers, manager the mill, folconference officials railroad board, check reports by The reports filed with the board showed the had more than enough grain to meet storage obligations, Ben Larinspector for the board. McDonnell, railroad commissioner in charge of the grain division, has means the accuracy reports made by elevator for inspectors made by the 1925 having been illegal by the attorney general the light United States "supreme court decibarring the state control agencies handling grain.
Closer Check Needed said made for not only books elevators the grain held storage make sure that reports Under the law, elevators shipping to additional bonds the the grain shipped out. five storage ticket holders is said to have for appointment receivers take charge of grain remaining the Eggers director in the First National the affairs the closely intermingled with those the bank, closed recently the ville Sprague, its cashier.
MISSING N. D. BANKER IS FOUND IN VIRGINIA The world wide search for Manville H. Sprague, former cashier of the First National bank of Grafton, N. D. ended last week when the much sought for cashier was located by U S. agents under the direction of Detective P. W. Adams. Sprague was found at Norfolk, Va., where he was found living with Martha Burris, formerly of Conway, who served as stenographer at the Grafton bank before it closed and who disappeared at the same time with Mr. Sprague, a year ago last May 7th. They have been operating a store at Norfolk on the seacoast for the past year. Mr. Sprague has been in custody since he was apprehended and from late reports he is expected to arrive at Fargo some time this week where he will await trial in the federal court. There is also a possibility that he may be taken to Grafton for trial. Miss Burris, who he claims is his wife, is expected to return with him. Charges against Sprague will center on embezzlement of bank funds and juggling of bank statements. There is also a liklihood he will be tried under the Mann Act on charges of transporting a woman from one state to another for immoral purposes. His wife and two children are living in Grafton and as is believed has not obtained a divorce to enable him to marry Miss Burris legally. After being caught Sprague said: "I am glad it is all over and I can go back home and face the music. I should not have run away at all. I realize now that it was all a big mistake but then we all make mistakes. I left Grafton in my automobile with Miss Burris and we went from one place to another. We traveled thru Minnesota and other states and then through Kentucky and finally came to Norfolk. I thought I would be safe here and that I could go into business and start all over again. It is true that I misapplied funds of my bank but it is not true that I benefitted by my acts one penny's worth. I have never stolen anything and I am not a thief today no matter how some people might try to fasten that charge upon me. "I am not a bigamist but that is all I care to say on that subject. "I am going home and I will tell my story when I get there and in open court if I am forced to go there. I have my friends especially among army officers and I have met several since I have been here. I guess they must have written home about me and told where I could be found." Sprague left Grafton on May 7, 1927 with the idea conveyed to friends that he would motor to the National Guard school of instruction at Kansas City. After two weeks no news came from him and people of Grafton began considering the matter with the result that a 'run" was about to begin on the bank when F. H. Sprague, the president of the bank and father to Manville Sprague, closed the doors of the institution to prevent the anticipated "run." This occurred on May 23. 1927. Miss Burris, of Conway, the stenographer at the bank, had disappeared at the same time as the cashier. Since that time there has been a great deal of rumor as to the where-
11.October 9, 1930The Bismarck TribuneBismarck, Mandan, ND
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Closed Bank Suit Dismissed by Court Grand Forks, N. D., Oct. 9.-(P)Judge Andrew Miller in federal court here has dismissed the action of C. M. Gilbertson, receiver for the closed First National bank of Rollette, to recover $90,000 in unpaid notes and $16,000 uncollected assessments from Linus Johnson and J. W. Tweton, directors of the bank. The consolidated action of T. O. Holt, Clifford Tuft and W. J. McCabe of Grafton to recover $5,000 in Liberty Bonds from R. W. Bucklin, receiver for the First National bank of Grafton, was started yesterday. The plaintiffs claim the bonds were in the closed bank for safe keeping.
CIVIL SUIT FILED IN GRAFTON BANK CASE
Receiver Alleges Heavy Losses Due to Negligence of Directors.
Grafton, N. D., Aug. by eral Judge Miller will take testimony here beginning next Tuesday in civil action brought by receiver of the closed First Nationbank of Grafton against former of the In his complaint receiver claims the amount of damages and losses sustained by the alleges the losses were brought about through the negligence of the directors violation of banking laws in the The defendants Frank Ingolf Sprague ville H. Sprague. Sever Tollack, William Treumann and Eggers constituted the board directors prior the time the bank closed May 1927. Mr. Amundson be representby the firm of Greenburg DePuy. Grafton attorneys McIntyre Grand Forks while the have retained George Bangs and Tracy Bangs Grand Forks and Gray and Myers Grafton. is expected the taking of testimony will continue which be placed before Judge Miller and will likely be heard later in Fargo.
13.August 31, 1931The Bismarck TribuneBismarck, Mandan, ND
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Grafton Bank Heads Face Civil Action — Grafton, N. D., Aug. 31.-(P)-A referee appointed by Federal Judge Andrew Miller will take testimony here beginning Tuesday in a civil action brought by C. J. Amundson, Grand Forks, receiver of the closed First National Bank of Grafton, against the former directors of the defunct institution. In his complaint, the receiver claims damages and losses sustained by the bank to the amount of $439,049.62 and alleges that losses were due to negligence of the directors and violation of the national banking laws. The defendants are Frank H. Sprague, Ingolf L. Newgard, Manville H. Sprague, Benjamin J. Johnson, Sever Tollack, William C. Treumann and H. B. Eggers, Jr., who constituted the board of directors prior to and at the time the bank closed May 23, 1927.
BOOKS PRODUCED IN GRAFTON BANK CASE
Receiver Seeks to Introduce Records in Action Against Directors.
Grafton N. Sept. here today in civil action against former directors of the closed First National bank in the receiver seeks to $439,049. The bank closed May 23, 1927. and in his Amundson Grand Forks. receiver contends losses brought about by negligence and of the national banking laws by the diis being taken by Bea ed referee by Judge drew Miller will be placed before Judge Miller in Fargo where arguments will be heard later Witnesses today were Helen teller the Jay Riley Pine Bluff the bank and Groesbeck auditor employed by the to audit the bank following the closing. Through these witnesses. the prosecution identify books and records introduction as the Defendants are H. Sprague, Inglof L. Newgard, M Benjamin Sever William C. Treumann and H. B. Eggers Jr.
15.September 3, 1931The Bismarck TribuneBismarck, Mandan, ND
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Testimony Begins in Grafton Bank Case — Grafton, N. D., Sept. 3.-(P)-Presentation of testimony in a civil action in which the receiver for the First National bank of Grafton seeks to recover $439,049 from former directors of the bank is under way here before Beatrice McMichael, Fargo, appointed referee by Federal Judge Andrew Miller. C. J. Amundson, Grand Forks, receiver for the bank, claims in his complaint that the former directors brought about the loss through negligence and violation of national banking laws. Defendants in the action are Frank H. Sprague, Ingolf L. Newgard, Manville H. Sprague, Benjamin J. Johnson, Sever Tollack, William C. Treumann, and H. B. Eggers, Jr. Witnesses called by the prosecution to identify books are Mrs. Helen Swanson, former bookkeeper; Jay M. Riley, Pine Bluff, Ark.; first receiver following the closing of the bank, and B. Groesbeck, auditor for Perley Morse and Company of New York, engaged by the government.
16.September 4, 1931The Bismarck TribuneBismarck, Mandan, ND
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Says Grafton Bankers Violated Regulations Grafton, N. D., Sept. 4.-(P)-Testimony intended to show that loans on real estate by the First National Bank here prior to its closing May 23, were made in violation of banking regulations, was introduced Thursday in the civil action brought against former directors of the bank by C. J. Amundson, receiver, who seeks to recover $439,039. When taking of testimony was resumed before Beatrice McMichael, referee, attorneys for the prosecution and defense argued over the bank's records and questioned witnesses as to the identity of the records. No rulings as to admission of lecords or testimony will be made here, Miss McMichael merely taking testimony for presentation to Federal Judge Andrew Miller, who will hear arguments in the case later in Fargo.
17.September 28, 1931The Bismarck TribuneBismarck, Mandan, ND
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Testimony in Grafton Action Is Completed Grafton, N. D., Sep. t28.-(AP)Testimony of the plaintiff in an action instituted by C. J. Amundson, receiver for the closed First National bank of Grafton, against the Northern Trust company of Grand Forks was completed Saturday. The action was brought to recover on bonds of $10,000 executed by the defendant to protect the bank against losses which might accrue to the bank through the larceny or embezzlement of M. H. Sprague, former cashier of the institution. The plaintiff introduced testimony intended to show transactions between Sprague and the Grafton Roller mill constituted embezzlement on the part of Sprague.
18.January 3, 1934Morning PioneerMandan, ND
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BANK RECEIVER RECOVERY FLOST ASSETS
GRAFTON BANK CLOSING CASE AGAIN BEFORE FEDERAL COURT
Fargo, Jan. 3.-(AP)-Trial of five lawsuits involving approximately $700,000 as an aftermath of the closing in 1927 of the First National bank of Grafton was begun in federal court here today before Judge Andrew Miller. The actions are brought by C. J. Amundson, receiver for the bank, against officers and directors of the closed bank. Considerable testimony was taken in connection with the bank's closing at Grafton about two years ago by Miss Beatrice McMichael, federal court reporter, who was appointed as special examiner by Judge Miller. The actions are against Frank H. Sprague, I. L. Newgard, Manville H. Sprague, Benjamin J. Johnson, Sever Tallock, William C. Truemann, Henry B. Eggers, jr., and are brought in an attempt to recover assets of the bank which it is claimed were lost due to mismanagement. In one action against all of the officers and directors $439,049.62 is asked. Two actions are against Frank H. Sprague, former president of the bank, one for $129,416.87 and the other for $9,850. In the smaller suit, it is alleged Sprague issued a check for the $9,850 and withdrew from the bank that amount in liberty bonds. Another suit is against Leonard T. Sprague, son of the former bank president. This action involves ownership of an automobile. Judgment was obtained against Sprague for $6,728 and an automo. bile was levied on which elder Sprague claimed to own. The fifth action is against the Northwestern Trust company of Grand Forks on the bond of Manville H. Sprague, cashier of the The Grafton bank closed May 24, 1927. The actions against the of ficers was originally begun by J. M. Riley, receiver, who died while the actions were pending. Taking of testimony in connection with the cases begun by Miss McMichael in September, 1931, and continued for several weeks. A mass of exhibits has been brought to Fargo for use in presenting the case.
19.January 3, 1934The Bismarck TribuneBismarck, Mandan, ND
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LAWSUITS INVOLVING GRAFTON BANK ARE UP IN FARGO COURT Spragues and Their Associates in Closed Institution Are Defendants Fargo, Jan. 3.-(P)-Trail of five lawsuits involving approximately $700,000 as an aftermath of the closing in 1927 of the First National Bank of Grafton was begun in federal court here Wednesday before Judge Andrew Miller. The actions are brought by C. J. Amundson, receiver for the bank, against officers and directors of the closed bank. Considerable testimony was taken in connection with the bank's closing at Grafton about two years ago by Miss Beatrice McMichael, federal court reporter, who was appointed as special examiner by Judge Miller. The actions are against Frank H. Sprague, I. L. Newgard, Manville H. Sprague, Benjamin J. Johnson, Sever Tallock, William C. Trueman and Henry B. Eggers, Jr., and are brought in an attempt to recover assets of the bank which, it is claimed, were lost due to mismanagement. In one action against all of the officers and directors $439,049.62 is asked. Two actions are against Frank H. Sprague, former president of the bank, one for $129,416.87 and the other for $9,850. In the smaller suit it is alleged Sprague issued a check for the $9,850 and withdrew from the bank that amount in Liberty bonds. Another suit is against Leonard T. Sprague, son of the former bank president. This action involves ownership of an automobile. Judgment was obtained against Sprague for $6,728 and an automobile was levied on which the elder Sprague claimed to own. The fifth action is against the Northwestern Trust company of Grand Forks on the bond of Manville H. Sprague, cashier of the bank. The Grafton bank closed May 24, 1927. The actions against the officers were originally begun by J. M. Riley, receiver, who died while they were pending. A mass of exhibits has been brought to Fargo for use in presenting the case.
FARGO.—(AP)—Hearing of suits resulting from the closing of the First National bank of Grafton, N. D., is scheduled to be resumed Friday in federal court here. Five actions involving some $700,000 have been brought against officers and directors of the bank and the Northwestern Trust Co. of Grand Forks by the bank receiver. It is alleged that due to mismanagement the assets of the bank were lost and that assets were withdrawn after the bank was known to be insolvent.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
