Minot National Bank (Minot, ND)

View Charter #6315 on SPMC View balance sheet

Episode Information

Episode UID
631501269
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
63150 national
Charter Number
6315
Start Date
September 18, 1905
Location
Minot, North Dakota (48.233, -101.296)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d7b31447467eee9e

Response Measures

Capital injected, Full suspension, Books examined

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1905-09-19
Date receivership terminated
1913-02-17
OCC cause of failure
Fraud
Share of assets assessed as good
58.2%
Share of assets assessed as doubtful
32.3%
Share of assets assessed as worthless
9.5%

Description

Failure followed discovery of under-reserved condition and bad/unreliable loans; receiver appointed same day.

Events (5)
1. June 23, 1902 Chartered
Source
historical_nic
2. September 18, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Rumors and publicity about excessive/unreliable loans and low reserve prompted depositors to withdraw.
Measures
Depositors were paid promptly initially; bank closed next day to avoid larger rush.
Newspaper Excerpt
Rumors of financial trouble started a small run on the bank yesterday.
Source
newspapers
3. September 19, 1905 Receivership
Source
historical_nic
4. September 19, 1905 Receivership
Newspaper Excerpt
F. B. Chapman, the bank examiner, has been appointed receiver.
Source
newspapers
5. September 19, 1905 Suspension
Cause
Government Action
Cause Details
Bank closed pending action of the Comptroller of the Currency and was undercapitalized relative to statutory reserve requirements.
Newspaper Excerpt
The Minot National bank failed to open its doors for business today, and a notice posted on the door reads: 'Closed pending the action of the controller of the currency.'
Source
newspapers

Newspaper Articles (23)
1. September 19, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 19, 1905

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Article Text

MINOT NATIONAL CLOSES ITS DOORS Deposits Amounting to $115,000 Are Expected to Be Returned in Full. Special to The Journal. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business today, and a notice posted on the door reads: Closed pending the action of the controller of the currency.' For several weeks there have been rumors that the bank was in financial trouble, based on excessive and unreliable loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, SO report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and about a week ago A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal® mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank yesterday. This, in all probability, would have developed into a rush today and the closing of the institution was deemed prudent. The last statement showed the bank's deposit to be $115,000. It was capitaized at $500,000. The chief stockholders are J. A. and B. Erickson, Clarence Parker, A. F. Slocum and David Lloyd. The report of the closing of the Minot National started a run by the timid on the Second National and Union National bank today. All depositors were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar.

2. September 19, 1905 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, September 19, 1905

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Article Text

MINOT NATIONAL CLOSES ITS DOORS Deposits Amounting to $115,000 Are Expected to Be Returned in Full. Special to The Journal. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business today, and a notice posted on the door reads: 'Closed pending the action of the controller of the currency. For several weeks there have been rumors that the bank was in financial trouble, based on excessive and unreliable loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, SO report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and about a week ago A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal, mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank yesterday. This, in all probability, would have developed into a rush today and the closing of the institution was deemed prudent. The last statement showed the bank's deposit to be $115,000. It was capitaized at $500,000. The chief stockholders are J. A. and B. Erickson, Clarence Parker, A. F. Slocum and David Lloyd. The report of the closing of the Minot National started a run by the timid on the Second National and Union National bank today. All depositors were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar.

3. September 20, 1905 The Ward County Independent Minot, ND
Article from The Ward County Independent, September 20, 1905

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Article Text

CLOSING OF MINOT NATIONAL BANK. CONTINUED FROM FIRST PAGE held a meeting at the bank last night. They declare that they are considering two propositions either of which to allow all depositors to be paid up dollar for dollar. The INDEPENDENT hopes that the bank will be able to do this. The stockholders in that event would lose the amount of their stock. D. J. Lloyd one of the stockholders owned 1500 shares of stock for which he paid $1.25 per share. In addition to this, about six weeks ago he gave J. A. Erickson his personal note for $2,500 and this is also charged to him in the bank. F. B. Chapman, the bank examiner, has been appointed receiver. The depositors' committee declare that they will take steps to enjoin him in the U. S. court. The depositors are very hopeful of securing their money or at least 75 per cent of it They are not in favor of a receiver's being appointed, but may have signed up a petition agreeing to leave their deposits remain in the bank for a period of four months in order to give a new management the chance to get in the collections. The depositors' committee is composed of Judge Palda, D. C. Greenleaf, Arthur LeSueur, J. E. McKoane, James Briggs and Peter Ehr. Directors Erickson and Lloyd are in favor of the proposition given above. The business of the bank has been good and most of the paper the bank holds is good. An effort was made to weather it until the fall collections came due when there would have been no trouble. There have been some rumors concerning the shaky condition of the bank for sometime, and naturally the deposits dwindled down somewhat and a good many took the trouble to take

4. September 20, 1905 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, September 20, 1905

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Article Text

DAKOTA BANK GOES BROKE First National of Minot Closed Awaiting the Action of Comptroller of Currency. Minot, N. D., Sept. 19.-The Minot National bank failed to open its doors for business this morning. A notice posted on the door réad: "Closed pending the action of the comptroller of the currency." The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements. Some time ago it is reported the directors called attention of President Erickson to the extensive loans being made and instructed him to be more prudent. Rumors of financial trouble started a small run on the bank yesterday, which in all probability would have developed into a rush today, and the closing of the institution was deemed prudent. The last statement showed the bank's deposits to be $115,000. The report of the closing of the Minot National started a little run by the timid on the Second National and Union National banks this morning. All checks were paid promptly. The belief prevails that the Minot National will pay out dollar for dollar. Washington, Sept. 19.-The August 25th statement of the suspended Minot National bank of Minot, N. D., showed that the loans and discounts were $124,208; cash and cash items, $11,941; capital, $25,000; deposits, $104,998.

5. September 21, 1905 The Alaska Prospector Valdez, AK
Article from The Alaska Prospector, September 21, 1905

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Article Text

Indians at the battle of the Little Big Horn, at which the entire Custer command was massacred, and the Indian who actually killed Custer, died here to-day. Seoul, Sept. 18-Aliee Roosevelt and Secretary Taft are to visit the Korean ruler tomorrow. Great preparations are being made for the event. Edinboro, Sept. 19-Sir Thomas Lipton, the wealthy Irish yachtsman, was thrown from his horse to-day while passing before King Edward, who was reviewing the troops, and was badly kicked in the face. He was badly cut but received no fatal injuries. New York, Sept. 19-Pani Morton to-day made public the fact that three-quirters of a million of the Equitable Life Insurance Co's. funds have been lost in bad loans. The loss was on worthless railroad and land securities in Utah and Colorado. Tokyo, Sept. 19-In auditing the Japanese war bills it develops that there has been considerable robbing of the government by various officials. Three naval paymasters are known to have stolen $175,000. Their names have not been disclosed, but it is announced that an example will be made of them that will be a warning to their fellows. Manila, Sept. 19-The bandit chief Felizaro. who has given the government so much trouble lately, was surrounded by the troops at Bayangas and his men captured. Felizaro jumped over a cliff to escape capture and was killed by the fall. Seattle, Sept. 19-H. W. Dennison. the legal advisor of the Japanese envoys at the peace conference, with secretaries Yamaza and Ochaia, arrived to-day from New York. They are taking the peace treaty to the Mikado. Yamaza will explain the treaty to the Mikado in the absence of Komura. St. Louis, Sept. 19-James Ballo, the agent of the Carr street Italian bank which suspended a week ago. was found this morning murdered in a room in the Itaiiac quarter. It is believed that the deed was done by his angered countrymen. Minot. N. D. Sept. 19-The Minot National bank suspended payment this morning after a slight run. Its reserve was below the required amount. Salt Lake, Sept 10-The county authorities refuse to allow the fight to come off which was scheduled between John Wilkes and Güs Ruhlin for next Tuesday.

6. September 21, 1905 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, September 21, 1905

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Article Text

Minot Bank Closed. The Minot National Bank closed its doors Tuesday. It is said bad loans are responsible for the closing of the bank. Bank Examiner F. B. Chapman has been made receiver and will take immediate charge of the bank. The last report of the bank, Aug. 25, 1905, is as follows: Resources-Loans and discounts, $124,208; overdrafts, $8,860; U. S. bonds, $12,500; stocks, securities, etc., $4,896; real estate $11,774; due from banks and bankers, $6,243; expenses, $6,126; cash and cash items, $11,941; redemption fund, $625; total $187,177. Liabilities-Capital, $25,000; surplus and profits, $6,753; circulation, $12,500; due to banks and bankers, $12,925; deposits, $104,998; bills payable, $25,000. Total, $187,177.

7. September 22, 1905 Washington Standard Olympia, WA
Article from Washington Standard, September 22, 1905

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Article Text

ANOTHER bank has suspended, the Minot National Bank, of Minot, North Dakota.

8. September 28, 1905 Courier Democrat Langdon, ND
Article from Courier Democrat, September 28, 1905

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Article Text

NORTH DAKOTA NEWS ITEMS OF A week FROM VARIOUS PARTS OF THE STATE. Minot National Bank Forced to Sus. pend Operations as a Result of Making Loans That Are Said to Be Unreliable. The Minot National bank failed to open its doors for business one day last week and a notice posted on the door read: "Closed pending the action of the controller of the currency." For several weeks there have been rumors that the bank was in financial trouble, based on excessive and unreli. able loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, so report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank the day before it closed. F. B. Chapman, national bank examiner, has been appointed receiver. The statement of the total resources and liabilities of the bank at the date of its last report of condition, Aug. 25, 1905, shows that the total resources on that date were $187,177 and the liabilities exactly the same. The belief prevails that the Minot National will pay out dollar for dollar.

9. September 29, 1905 Emmons County Record Linton, Williamsport, ND
Article from Emmons County Record, September 29, 1905

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Article Text

ITEMS OF A WEEK FROM VARIOUS PARTS OF THE STATE. Minot National Bank Forced to Sus. pend Operations as a Result of Making Loans That Are Said to Be Unreliable. The Minot National bank failed to open its doors for business one day last week and a notice posted on the door read: "Closed pending the action of the controller of the currency." For several weeks there eve been financial rumors that the bank was trouble, based on excessive and unreliable loans. The announcement is made semi-officially that the bank's reserve is considerably below the statutory requirements, but there is something like $16,000 credited to the reserve funds. Some time ago, so report says, the directors called President Erickson's attention to the loans being made and instructed him to be a little more prudent. Report says he continued making the objectionable loans, and A. F. Slocum, a director, was made temporary president, presumably for a period pending the closing of a deal by which Joseph Roach and others connected with the Second National bank were to get a controlling interest in the Minot National. It is thought that while this deal was in progress it was discovered that the bank's reserve was below the legal mark and the negotiations were held in abeyance. Rumors of financial trouble started a small run on the bank the day before it closed. F. B. Chapman, national bank examiner, has been appointed receiver. The statement of the total resources and liabilities of the bank at the date of its last report of condition, Aug. 25, 1905, shows that the total resources on that date were $187,177 and the liabilities exactly the same. The belief prevails that the Minot National will pay out dollar for dollar.

10. September 29, 1905 Devils Lake Inter-Ocean Devils Lake, ND
Article from Devils Lake Inter-Ocean, September 29, 1905

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OUR BANKING SYSTEM. The Minot National bank has closed its doors and the comproller of the treasury has appointed National Bank Examiner Chapman receiver of the defunct institution. Current reports says the depositors will receive 80 cents on the dollar. There is nothing sensational in the story of the failure, but the fact that so many national banks are closing their doors would indicat e that a new system of banking should be adopted by the government. National Bank Examiners are usually men of high integrity and able and experienced bankers, but it would seem that where bank officers SO desire. their books can be made to show a safe condition when in fact the bank is not able to meet its obligations, and that this condition can be brought about between the visits of the examiner. Nothing short of daily reports made to the examiner would avoid this danger, and even that would be liable to show many false entries in case such were necessary to hide the bank's shortage. It is in fact, a ques: tion of men rather than system that make banking safe or unsafe today.

11. September 29, 1905 Devils Lake Inter-Ocean Devils Lake, ND
Article from Devils Lake Inter-Ocean, September 29, 1905

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Minot Banker Is Arrested The Minot National bank closed its doors Friday of last week. For some time there had been doubts as to its soundness, and the day prior to the closing several depositors withdrew their money causing a m Id run on the institution. A large number were ready to take the same CO.T30 when the bank open u ne following morning, but at opening time a card in the windo announced that the bank

12. January 4, 1906 The Oskaloosa Herald Oskaloosa, IA
Article from The Oskaloosa Herald, January 4, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co. Saulte St Marie, Mich. : liabilities $85,000; assets $65, 000. 7-Coe Co., Minneapolis; liabilities, $200,000. Apr. -Ladoga, Ind., bank; assets $80,000 liabilities $109,000. 24-Canton, O. state bank closes Lexing. ton Okla., First national bank falls, 26-Barberton O., First national bank Jun, -Ladysmith, Wis., First national bank closed. 9-Fyfe & Munson, Chicago, placed in re celver's hands, 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly H Co., Chicago, 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, III., and Toluea, III., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities, $125,000. 19-Spring Valley, O., bank closes, 20-City national bank Kansas City, Mo. Aug 3-West Liberty, Ky., bank closes. 21-Western bank, Louisville, Ky: due tc overloans. Sep. 19-Minot, B. D., national bank closes doors. Oct, 6-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency,

13. January 12, 1906 The Commonwealth Greenwood, MS
Article from The Commonwealth, January 12, 1906

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Business Failures Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, cap!tal $1,200,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 7--Coe Co., Minneapolis; liabilities, $200,000. Apr. 3--Ladoga, Ind., bank; assets $80,000. liabilities $109,000. Lexing24-Canton, O., state bank closes ton, Okla., First national bank falls. 26-Barberton O., First national bank Jun. 2-Ladysmith, Wis., First national bank closed 19-Fyf fe & Munson, Chicago, placed in receiver's hands. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, III. national banks close. 6-Hagerstown Ind., Commercial bank; llabilities, $125,000. 19-Spring Valley, O., bank closes, 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky, bank closes. 21-Western bank Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. Oct. 6-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency, Dec. 18-John R. Walsh's three banks in Ch cago. Chicago National, Home Savings and Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and privateaccounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank. Memphis, Tenn., close doors; first named in liquidation.

14. April 13, 1906 The Bottineau Courant Bottineau, ND
Article from The Bottineau Courant, April 13, 1906

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The reciever of the defunct Minot National Bank announces to the depositors that a dividend is a waiting them.

15. May 2, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, May 2, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

16. May 2, 1907 Williston Graphic Williston, ND
Article from Williston Graphic, May 2, 1907

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PAYS $38,000 TO DEFUNCT MINOT BANK H. J. HANSCAMP, FORMER PRESIDENT OF MINOT NATIONAL BANK WAS INDICTED AND PAYS THE BANK $38,000 According to recent reports the Minot National Bank, which closed its doors a year ago last September will pay dollar for dollar to its depositors. That it is able to do this is due to the fact that H. J. Haschamp, former president of the bank was indicted by the Federal Grand jury at Grand Forks last December and as a result settled by paying the bank $38,000. The fact of his being indicted was not known until recently. The settlement with the treasury department at Washington was made thru Receiver Swords and the money was paid over about the first of March. It is announced that the case against Hanscamp will be dropped as the depositors will receive all their money.

17. June 13, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, June 13, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

18. June 20, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, June 20, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

19. June 27, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, June 27, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

20. July 4, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, July 4, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

21. July 25, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, July 25, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

22. August 8, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, August 8, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf

23. August 22, 1907 The Ward County Independent Minot, ND
Article from The Ward County Independent, August 22, 1907

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Notice to Depositors. All depositors in the Minot National bank are warned not to dispose of their claims, as I will not approve of any transfers. GEO. W. SWORDS, Receiver, Minot. 4-11tf