State Bank (Belt, MT)

Episode Information

Episode UID
5455045291474
Episode Type
Run β†’ Suspension β†’ Closure
Bank Type
state
Bank ID
545504529 hash
Start Date
October 12, 1922
Location
Belt, Montana (47.386, -110.926)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
413bc02330f6b404

Response Measures

None

Description

President arrested for misappropriation; receiver later appointed July 1923.

Events (3)

1. October 12, 1922 Run
Cause
Local Banks
Cause Details
Run reportedly triggered by failure/distress of the nearby Miners State Bank of Sand Coulee/Coulee, prompting heavy withdrawals at Belt.
Measures
No extraordinary measures described beyond allowing normal course withdrawals; deputies/examiners took charge later.
Newspaper Excerpt
Dawson said that the Belt institution had been wrecked by a run that resulted from failure of the Miners State Bank of Coulee
Source
newspapers
2. October 13, 1922 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after arrest of its president on charge of misappropriation and an insufficient cash reserve following withdrawals.
Newspaper Excerpt
the State Bank of Belt closed its doors last Wednesday evening... the notice posted on the door ... stated the reason for the closing as an insufficient reserve.
Source
newspapers
3. July 10, 1923 Receivership
Newspaper Excerpt
W. C. BLOMQUIST, Receiver. Dated this 10th day of July, 1923. (First Publication July 19-Aug. 9)
Source
newspapers

Newspaper Articles (22)

Article from Belt Valley Times, October 19, 1922

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After staggering a week from the blow dealt it by the arrest of its president, L. B. Lockhart, on a charge of misappropriation of funds, the State Bank of Belt closed its doors last Wednesday evening, and although no notice of its official closing by the state banking department was posted until late Thursday night or early Friday morning, the bank failed to open after Thursday's legal holiday, Columbus day. The notice posted on the door and signed by H. E. Stewart, deputy state bank examiner, stated the reason for the closing as an insufficient reserve. S. L. Kleve, assistant superintendent of the state banking department, and E. E. Dawson, cashier of the bank, appointed as deputy examiner, are now in charge of its affairs. Mr. Kleve states that no receiver will be appointed immediately, and not until every effort toward the reopening of the bank has been made. What the prospects of this are he does not state. The bank, he states, was examined last December and was found te be in a very fair condition. The last statement of the bank, issued in response to the call of September 15. shows loans and discounts of $257,980.57, and it is supposed that the greater amount of the loans are placed in this vicinity. The deposits totaled $142.656.41, and the borrowed money $110,122.20. The cash reserve was slightly more than required by law $12,936.61. Both the deposits and the cash reserve were undoubtedly lowered to a considerable extent during the few days the bank remained apen after Lockhart's arrest , though no withdrawals other than those made in the natural course of business are said to have been allowed. The State Bank of Belt is this city's


Article from Belt Valley Times, October 26, 1922

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County Funds Protected By Bonds That Cascade county will lose no money nor be deprived of its use for any length of time, through the recent failures of banks in which county deposits were carried is the statement of Fred C. Andretta, county treasurer. In the case of the Commercial National Bank of Great Falls, which at the date of closing carried a county deposit of $50,611, the county was fully protected by a surety bond for $34,000 and by stock of the Montana Power company assigned over to the county treasurer as collateral for the balance of $15,611. It has been stated that personal bonds of officers of the bank had been given in this case. The State bank here and the Miners State bank at Sand Coulee had deposits of county funds in the following amounts; the State Bank of Belt had $10,000 on deposit insured in the American Surety Co., of New York; the Miners State Bank of Sand Coulee had $7,800 on deposit secured by a Surety bond in the amount of $8,000 in the American Surety Company of New York. In the even that any of the banks reopen for business, which is highly probable according to rumor; Mr. Andretta states that with suitable security the amounts will immediately be replaced in the banks upon the proper guarantees being submitted to the county treasurer.


Article from Belt Valley Times, October 26, 1922

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Additional Locals Harvey Nulliner, who was arrested a week ago last Sunday morning on a charge of second degree assault after he had gotten careless with a revolver at his home and firing several shots, was released from the county jail under $1,000 bonds late last week and has returned to Belt. He has been ordered to appear in district court today to show cause why he should not pay temporary alimony while his wife's suit for divorce is pending. The Calone& Johnson mine has completed arrangements for the use of the coal loading chute built on the Great Northern right-of-way near the Rocky Mountain elevator by the defunct Higwhood Coal Mines last year, and is now loading coal over it. The new arrangement enables the mine to load all grades of coal at the same time. lump and nut being loaded at the chute and mine run and slack into cars on the house track. A party of 20 young people were ntertained a the rooms of Miss Mary Pattsner Monday evening in honor of Mrs. Albert Santschi and Miss Sophie Krebs, who left this morning for California. Cards formed the chief source of entertainment, followed by lunch. Miss Genevieve Schoeder and Burney Kjose won prizes for obtaining the high scores at the games, while Miss Alice Beaudry and Leslie McHose were consoled with suitable prizes for the low scores. While there have been may rumors current about the city regarding the reopening of the State Bank of Belt, which closed its doors two weeks ago, Cashier E. E. Dawson, who is in charge as a deputy state bank examiner, states that it is not probable that any action along this line can be taken before early in the new year. S. L. Kleve, assistant superintendent of the state banking department, who was here directly after the closing of the bank, has departed, leaving the affairs in charge of Mr. Dawson.


Article from Belt Valley Times, April 12, 1923

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LOCKHART IS ARRESTED AGAIN Charged with the crime of grand larL. B. Lockhart, Cascade county Falls ceny, banker, was arrested on a Great street Thursday afternoon. Deputy LockSheriff C. S. Dennis, who took him to hart into custody, accompanied the county jail, where he immediately bonds in the sum of $1,500. Pengave for grand larceny is a sentence than alty of less than one year or more 14 in the state not years prison. A direct information was filed against Lockhart in district F. court A. Thursday by County Attorney isEwald and a bench warrant was who sued for his arrest. Lockhart, jail, his age as 28 at the county Belt gave president of the State Bank Miners' of and is vice-president of the inState Bank of Sand Coulee, both in stitutions having closed their doors October, 1922. According to the information filed with against Lockhart, he is charged of theft of $3,357 from the funds the State Bank of Belt. The information the contains two counts of larceny officer against the banker, one as an of the bank and one as bailee. The information charges that Lockhart "did, on or about the 29th day cus- of May, 1922, have in his possession, tody or control, as bailee, servant, State agent, trustee or officer of the Bank of Belt, certain money, property, of evidence of debt, contracts, articles value, credits, things in action, of the the value of $3,355.00, then and there property of said bank, and did, willfully, unlawfully, feloniously, deprive the true owner of said property." In the second count, it is cited that Lockhart, as president of the Belt institution "did, on or about the 29th day of May, 1922, take, steal, withhold or appropriate to his own use certain moneys." L. Q. Skelton, state superintendent of banks, E. M. Klebe, H. G. Lescher, and H. E. Stewart, deputy bank superintendents; M. T. Messelt, Mr. and Mrs. Ed. Gerber, E. E. Dawson, James G. Larson and E. Lundell are named witnesses for the state. Mr. Lescher as was named receiver of the bank at Sand Coulee in November, 1922, shortly after it closed its doors and at about the same time he took charge of the Belt institution as deputy state superintendent of banks. Asked as to whether any action would be taken in connection with y Lockhart's association with the Sand Coulee bank, Mr. Ewald said that recf ords alleged to be missing from that concern have prevented the finishing of an investigation there. Mr. Ewald S stated that on the night before the I state examiner's deputies took charge of the Sand Coulee bank, certain rect ords are alleged to have been removed from the vault, and that all efforts on f the part of state officials to locate P them have been without success. V It is specifically charged in the in8 formation against Lockhart that the f defendant wrongfully transferred n $2,300 to his own credit at the Belt bank. It is alleged, Mr. Ewald said, raised the furniture and bank's that Lockhart fixtures value in of the the t amount of $2,300 and later placed that c sum to the credit of his personal acit count. No intimation was given by t officials as to the way in which the 5 balance of the amount named in the p information is alleged to have been taken. e d Lockhart has been in Belt and Sand t Coulee for the last two years. He is c married and has one child. Lockhart came to Great Falls about three weeks ago and has been maintaining his residence at the Y. M. A. -Great Falls Tribune. b th A plea of not guilty was entered Friday morning in district court by L. B. Lockhart, Belt banker, when arbefore Judge H. H. S with the crime of raigned charged grand Ewing, larF ceny. Lockhart's trial was set for 8 April 25. Attorney D. J. Doyle of ly O'Leary & Doyle appeared for Lockti hart. County Attorney F. A. Ewald said p Friday that he was unable to state 11 whether additional charges against Lockhart would be made. Disappeard ance of books from the bank at Sand t Coulee the night before the state su-


Article from Belt Valley Times, July 19, 1923

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RECEIVER'S NOTICE Notice is Hereby Given to all persons who have claims against The State Bank of Belt, Montana, to present the same to the undersigned, Receiver at Belt, Montana, within ninety days from the date of the first publication of this notice, or the same will be disallowed. All claims must be presented in legal form. W. C. BLOMQUIST, Receiver. Dated this 10th day of July, 1923. (First Publication July 19-Aug. 9)


Article from Belt Valley Times, July 26, 1923

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RECEIVER'S NOTICE Notice is Hereby Given to all persons who have claims against The State Bank of Belt, Montana, to present the same to the undersigned, Receiver at Belt, Montana, within ninety days from the date of the first publication of this notice, or the same will be disallowed. All claims must be presented in legal form. W. C. BLOMQUIST, Receiver. Dated this 10th day of July, 1923. (First Publication July 19-Aug. 9)


Article from Belt Valley Times, August 2, 1923

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RECEIVER'S NOTICE Notice is Hereby Given to all persons who have claims against The State Bank of Belt, Montana, to present the same to the undersigned, Receiver at Belt, Montana, within ninety days from the date of the first publication of this notice, or the same will be disallowed. All claims must be presented in legal form. W. C. BLOMQUIST, Receiver. Dated this 10th day of July, 1923. (First Publication July 19-Aug. 9)


Article from Belt Valley Times, August 9, 1923

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RECEIVER'S NOTICE Notice is Hereby Given to all persons who have claims against The State Bank of Belt, Montana, to present the same to the undersigned, Receiver at Belt, Montana, within ninety days from the date of the first publication of this notice, or the same will be disallowed. All claims must be presented in legal form. W. C. BLOMQUIST, Receiver. Dated this 10th day of July, 1923. (First Publication July 19-Aug. 9)


Article from Belt Valley Times, October 18, 1923

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# SHERIFF'S SALE ON DECREE OF FORECLOSURE. In the District Court of the Eighth Judicial District of the State of Montana, in and for the County of Cascade. W. C. Blomquist, Receiver of The State Bank of Belt, a corporation, Plaintiff.


Article from Belt Valley Times, October 25, 1923

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W. C. Blomquist, Receiver of The State Bank of Belt, a corporation, Plaintiff.


Article from Belt Valley Times, January 10, 1924

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Herbert Siegling and Wm. Snooks are working in San Francisco. Reports from A.. I. Crary and wife are that they do not care for the crowded conditions in Los Angeles. The receiver of the State Bank of Belt has entered suit against James Danno to recover $50 on a note due the bank. All of Jimmie's personal belongings were attached. Answer day has been set for the 14th.


Article from The Independent-Record, March 4, 1924

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ELMER E. DAWSON TAKEN IN SEATTLE Seattle, March 3β€”Elmer E. Dawson, formerly a banker in Montana, was arrested here today on telegraphic request. Dawson, who was cashier of the State Bank of Belt, in Montana, has been living here with his wife and two children and working as a bookkeeper. He is a son-in-law of A. L. Bradley, arrested in Seattle last week with C. W. Tewell, on charges caused by failure of the Gilman (Mont.) State bank. Dawson declared he never had any connection with the Gilman institution. Dawson was placed under $9,000 bail. He said that the Belt institution had been wrecked by a run that resulted from failure of the Miners State Bank of Coulee, nearby, and that he came here last June. He said that he had visited Great Falls, Mont., since then as a witness in proceedings resulting from the closing of the Belt bank, and that he could not imagine what had been found to cause his arrest. It was also announced by the authorities here word had been received from Olympia, Washington, that Governor Louis F. Hart had honored the requisition of Governor Joseph M. Dixon of Montana for the extradition of A. L. Bradley and C. W. Tewell, former officials of the defunct Gilman State bank, of Gilman, Mont., who were arrested in Seattle last week. Hearing on habeas corpus proceedings begun by their attorney here is scheduled for tomorrow. Dawson is a stepson of A. L. Bradley, authorities stated. Bradley and Tewell were president and cashier respectively of the Gilman State bank. They are accused of accepting deposits after they knew the bank was insolvent. Great Falls, March 3β€”A telegram from L. B. Lockhart, from Los Angeles, where he was arrested on a grand jury indictment from here Saturday, states that he will arrive here Wednesday for arraignment. Lockhart was vice president of the Miners State Bank of Sand Coulee and president of the State Bank of Belt, both closed institutions.


Article from The Independent-Record, March 4, 1924

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ELMER E. DAWSON TAKEN IN SEATTLE Seattle, March 3β€”Elmer E. Dawson, formerly a banker in Montana, was arrested here today on telegraphic request. Dawson, who was cashier of the State Bank of Belt, in Montana, has been living here with his wife and two children and working as a bookkeeper. He is a son-in-law of A. L. Bradley, arrested in Seattle last week with C. W. Tewell, on charges caused by failure of the Gilman (Mont.) State bank. Dawson declared he never had any connection with the Gilman institution. Dawson was placed under $9,000 bail. He said that the Belt institution had been wrecked by a run that resulted from failure of the Miners State Bank of Coulee, nearby, and that he came here last June. He said that he had visited Great Falls, Mont., since then as a witness in proceedings resulting from the closing of the Belt bank, and that he could not imagine what had been found to cause his arrest. It was also announced by the authorities here word had been received from Olympia, Washington, that Governor Louis F. Hart had honored the requisition of Governor Joseph M. Dixon of Montana for the extradition of A. L. Bradley and C. W. Tewell, former officials of the defunct Gilman State bank, of Gilman, Mont., who were arrested in Seattle last week. Hearing on habeas corpus proceedings begun by their attorney here is scheduled for tomorrow. Dawson is a stepson of A. L. Bradley, authorities stated. Bradley and Tewell were president and cashier respectively of the Gilman State bank. They are accused of accepting deposits after they knew the bank was insolvent. Great Falls, March 3β€”A telegram from L. B. Lockhart, from Los Angeles, where he was arrested on a grand jury indictment from here Saturday, states that he will arrive here Wednesday for arraignment. Lockhart was vice president of the Miners State Bank of Sand Coulee, and president of the State Bank of Belt, both closed institutions.


Article from The Independent-Record, March 4, 1924

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tana has enabled biological survey experts to experiment with long distance shipments to determine whether the buffalo meat will stand transporting to eastern markets. There are now about 4,500 head of buffalo in the United States and about 11,500 elsewhere in North America. Experts say their perpetuation is assured, with an ample supply for exhibition and breeding purposes and a surplus each year for marketing. Los Angeles, March 3.β€”Harry J. Skinner, former owner of the State bank of Belt, Mont., and of the State bank at Stockett, Montana, was arrested by deputy sheriffs here late today; on advices from Great Falls, Mont., where Skinner is said to be under indictment in connection with the failure of both institutions. Both Skinner and L. B. Lockhart, who bought the Belt bank from Skinner and who was arrested here last night, have declared their intention to waive extradition. Officers said that the arrest of Skinner ends the search for seven Montana bankers, under indictment in that state, who have been taken into custody here within the past two months.


Article from The San Francisco Journal and Daily Journal of Commerce, March 4, 1924

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MONTANA BANKER HELD Cashier Charged With False Reports to State SEATTLE, March 3.β€”Elmer E. Dawson, former Montana banker, was arrested by the sheriff today for authorities of Great Falls, Mont., where he is wanted on three charges of violating state banking laws. According to Sheriff Bob Gordon of Great Falls, Dawson is charged with accepting deposits after the State Bank of Belt, Mont., of which he was cashier, was known to be insolvent; with having made false reports to the state superintendent of banking, and with having falsified entries in the bank books. Bail was set at $9000. Dawson is a stepson of J. L. Bradley, former president of the defunct State Bank of Gilman, Mont., who was arrested in Seattle last week on a charge of accepting deposits after he knew his bank was insolvent.


Article from The Montana Record-Herald, March 11, 1924

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Case Argued Here Has Bearing on Suits in Great Falls Court Special to The Record-Herald. GREAT FALLS, March 11.β€”Should the state supreme court uphold the contention raised in Helena that the new state banking law repealed that portion of the criminal code holding bankers liable to prosecution for receiving deposits in an insolvent bank, the decision will have an important bearing on three of the bank cases scheduled for trial here during the coming term of district court. This question, which was argued Monday before the state tribunal, was raised by Fred Naegele, a former director of the Banking corporation, who was indicted on a charge of receiving a deposit when he and other officers knew the institution was insolvent. Former bankers under indictment here on similar charges include R. P. Reckards, Forrest Nelson, formerly president and cashier respectively of the American Bank and Trust company; Elmer Dawson and H. E. Musselt, officials of the State bank of Belt at the time of its closing. Reckards and Nelson were named in the first true bills returned by the county grand jury and the other two on March 1, when the jury returned nine indictments.


Article from Great Falls Tribune, December 9, 1924

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Belt Bank Receiver Seeking to Collect Assessment of $4,000 A suit to recover $4,000 from D. A. McLeod, former stockholder of the defunct State Bank of Belt, was filed in district court Monday by W. C. Blomquist, receiver for the bank. Blomquist contends in his complaint that when the bank closed its doors, Oct. 13, 1922, each stockholder was assessed amounts depending on the amount of their stock. This assessment, the complaint stated, was to aid in liquidating the defunct bank's liabilities. McLeod's assessment of $4,000 has not been paid, the complaint states, and judgment of that amount and court costs is asked.


Article from Great Falls Tribune, January 3, 1925

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$12,000 in Dividend Checks Sent Out by Belt Bank Receiver Dividend checks, totalling $12,000 and representing 10 per cent of the deposits in the defunct State Bank of Belt, were sent out Friday by Receiver W. C. Blomquist, pursuant to an order issued by District Judge J. B. Leslie on the receiver's petition.


Article from Belt Valley Times, January 7, 1926

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Dividend Notice Checks for Dividend No. 2 of the State Bank of Belt are ready for distribution to the holders of receivers certificates. Present your certificate when calling for check. W. C. Blomquist, Receiver


Article from Belt Valley Times, June 10, 1926

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JUDGE RETAINS $ RECEIVER ON A CHANGED BASIS A full time receivership for the State Bank of Belt which closed Oc tober 11, 1922, was terminated Mom day by District Judge Stephen 3. Cowley and an order issued which provides that the receiver shall in the future receive as compensation 20 per cent of all funds collected and received. The action of the court was taken on petition of W. C. Blom quist, receiver of the bank Mr. Blomquist was named receiver in July, 1923 and until now has devoted all of his time to the office. In his petition to the court Monday Mr. Blomquist said that it would not be for the best interest of the creditors if a full time receiver was notained at a salary of $300 a month, due to the diminished assets, It was his opinion that termination of the receivership by sale of the assets would not be advantageous. The receiver's petition shows that the banks remaining assets have a value of at least $30,000, and that these can be realized on if the debt tors are given an opportunity to liquidate their obligations. Judge Cowley entered an order providing that the future Receiver Blomquist's compensation shall be 20 per cent of all moneyn collected, to which will be added a reasonable amount for rent and attorney's fees which will be fixed by the court. The filing of Receiver Blomquist's petition followed the presentation of another petition last week in which Albert Beaudry and 27 other creditors asked that the policy of maintaining a full time receiver for the bank be abandoned. This proceeding was dismissed by the court on the ground that the title was faulty.


Article from Great Falls Tribune, January 18, 1927

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BELT RECEIVER PAYS DIVIDEND OF 10 PER CENT State Institution Will Make Third Distribution to Its Creditors Payment 10 per cent dividend. representing $12,015 of the insolvent State Bank of Belt authorized Monday morning by District Judge W. H. Meigs application of of the institution. The dividend the third which been made since the bank closed in October. 1922. In requesting authority to pay the 10 per dividend, Receiver Blomquist stated that preferred claims have paid that total was hand the bank. The payment the will leave balance of $2,807.85 in the receiver's hands. dividends made by the bank were for 69 and each representing 10 per cent of the general claims. At the time the bank suspended erations. total of $53,193 was due to depositors certificates of deposit, $12,004.40 deposits also due for payment, and deposits totaled totalled $35,201. which cancelled by Total assets were placed at $207. which classed $43,315.32 and $73,115.32 "worthless." Total collections of the receiver to date are


Article from Great Falls Tribune, May 3, 1928

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BLOMQUIST REQUESTS COURT TO END BELT RECEIVERSHIP Belt State Bank's Assets Will Be Sold June 9 on Order of Judge Meigs; Property Has Face Value of $100,000 Termination of the receivership of the State bank of Belt which suspended Oct. 13, 1922, on complaint of Wellington D. Rankin. former attorney general, requested Wednespetition filed in district day in court by Blomquist, of the The sale of the asof the bank was set for June sets m. at the bank building in Belt Judge W. H. Meigs. Closing of the receivership of the bank will involve the sale of assets having face value of approximately $100,000. but with marketable value less than one-third of this amount. Since the bank was placed in the hands of receiver it has been paid dividends of $36,038. or 30 percent. The Belt bank at the time of suspension had total liabilities in excess of including $47,871 individual deposits, $12.004 public deposits and certificates of deposit. The assets totalled about $207.000, of which $91,771 was classified good. $42,566 as doubtful and $73,155 as worthless. Collections of the receiver have included $66,922 from bills receivable. 84.071 from other and $10,870 interest. rent. etc. To this amount added $8.900 secured by assessment of stockholders. Assets to be sold include promis- sory notes on which balances totalling are due. In many instances, the receiver reports certain notes being outlawed and in other cases he refers to the of the notes being or from the state and not Notes in excess of $1,000 listed by the receiver are as follows: Irwin, $2,375: Nels Roman, Trygve Aos, R. Anderson. $2,504; Brown, $6,038; H. Clarke $1.103: Clarke & Eaton 600; Skinner. Ellis JohnMolin, $2.500 and $3,000 and Mary Porro $6,755. Other assets are judgments totalling against Doyle, Otto Spiller, $819: G. G. Hedrick. $789: Hedrick. $678; Margaret 200; B. McVay. William Shannon. $2.414 and $7,000, and B. Young. $1,200. Real estate to be sold consists of 80 acres in 17 and 20, township 20, north of range east, Cascade county: 160 acres in section 33. township 27. north of range east, Pondera county. The banking house and lot at Belt and furniture and fixtures will also be auctioned. requesting termination of the receivership, Mr. Blomquist states that he has collected and liquidated the assets as far as possible and that RELIEF FROM CURSE the property has been reduced such degree as to make termination OF CONSTIPATION of the receivership advisable. During the last 18 months several attempts have been made by creditors A Battle Creek physician says, of the bank to force termination of the receivership and hearings on pe"Constipation is responsible for more titions to this effect were filed in misery than any other cause." district court. The court. however. But immediate relief has been refused order termination of the found. A tablet called Rexall Order- receivership until Wednesday.