Madison State Bank (Virginia City, MT)

Episode Information

Episode UID
7185084991467
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
718508499 hash
Start Date
March 1, 1922*
Location
Virginia City, Montana (45.294, -111.946)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2be72647650e036e

Response Measures

None

Description

Failure date not stated explicitly in these articles; inferred from references to payments and receivership.

Events (6)
1. March 1, 1922* Receivership
Newspaper Excerpt
receiver of the defunct Madison State bank ... the receiver declined to honor it as a preferred claim
Source
newspapers
2. March 1, 1922* Suspension
Cause Details
Bank is described as having failed/closed; specific trigger not given in articles.
Newspaper Excerpt
When the bank failed the indemnity company paid over the sum of the bond to the state
Source
newspapers
3. September 26, 1923 Other
Newspaper Excerpt
Judgment of the Madison county court ... was reversed by the Montana supreme court ... against the Madison State bank of Virginia City
Source
newspapers
4. September 1, 1925 Other
Newspaper Excerpt
P. B. McClintock, as receiver of the Madison State bank ... tendering his resignation ... he named Edgar P. Reid of Virginia City to fill the two vacancies
Source
newspapers
5. December 18, 1926 Other
Newspaper Excerpt
Immediate payment of dividends to depositors in the ... Madison State bank at Virginia City was ordered yesterday by Judge William E. Carroll
Source
newspapers
6. December 24, 1926 Other
Newspaper Excerpt
Following conference ... Judge E. Carroll ... ordered the immediate dividends to depositors ... each of which has been closed for more than two years
Source
newspapers

Newspaper Articles (10)
1. September 26, 1923 The Butte Daily Post Butte, MT
Article from The Butte Daily Post, September 26, 1923

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Miller Smith, executors, against the city of Helena. The court reversed the district court of Madison county in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City. In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922 the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

2. September 27, 1923 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, September 27, 1923

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Surety Firm Wins Out in Bank Claim Appeal Helena, Sept. 26.—(By The Associated Press.)—The Montana supreme court Wednesday reversed the district court of Madison county in the case of the state of Montana, on the relation of the attorney general, against the Madison State bank of Virginia City. In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank, a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

3. September 27, 1923 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, September 27, 1923

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Madison Court Reversed in Virginia City State Bank Case. By the Associated Press. Helena, Sept. 26.—Claims of indemnity companies for money expended to guarantee deposits of counties in defunct banks are preferred claims, the state supreme court held today in reversing the Madison county court in the case of the state against the Madison State bank of Virginia City. In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922 the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed. Silver Bow Court Sustained. Judgment of the Silver Bow county district court was affirmed today by the supreme court in the case of Lloyd Weir against Walter R. Ryan. The suit was instituted in the district court of Silver Bow county to collect $720 alleged to be due Weir as salary as a farm hand in the employ of Ryan by virtue of the plaintiff's having been hired by the year but being dismissed at the end of the first six months. The jury gave Weir judgment for $639.50 from which Ryan appealed. The defendant averred that no contract existed and that he hired Weir on a month-to-month basis. Weir came to Montana from Pleasant Plains, Ill., to take the job. Paving District Upheld. Legality of the creation of the Main street-Neill avenue paving district in Helena was upheld today by the supreme court in affirming the lower court in the case of Jesse C. Ricker and J. Miller against the city of Helena. In the Lewis and Clark district court the plaintiffs were denied an injunction restraining the defendants from proceeding with the creation of Main street-Neill avenue improvement district officially known as Special Improvement district No. 139. The project involved the paving of certain streets around the parks near the Great Northern depot. An injunction was asked on the contention that the city council authorized the creation of the district after wrongfully finding that protests of property owners were insufficient. The petitioners maintained that the council illegally included in the district ground dedicated as parks totalling 34,125 square feet and not subject to assessment for the payment of costs of an improvement district. They averred that when the area of the land thus exempt from taxation should have been excluded there would remain subject to assessment 138,660.85 square feet and that property owned by protesting property owners totalled 62,618.25 an area in excess of 40 per cent. The petitioners also contended that Main street being already paved, the owners of property in the district would not be equally and alike benefitted by the paving on Neill avenue and that creation of the district was in effect taking property from the plaintiffs for public use without just compensation.

4. September 27, 1923 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, September 27, 1923

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By the Associated Press. Helena, Sept. 26.—Claims of indemnity companies for money expended to guarantee deposits of counties in defunct banks are preferred claims, the state supreme court held today in reversing the Madison county court in the case of the state against the Madison State bank of Virginia City. In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922 the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

5. September 27, 1923 The Billings Gazette Billings, MT
Article from The Billings Gazette, September 27, 1923

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STATE SUPREME COURT RENDERS OPINIONS IN CASES ON APPEAL Helena, Sept. 26.—The way was opened for the beginning of the work of repaving Main street and paving Neill avenue in Helena when the state supreme court Wednesday affirmed the lower court's order in the case of Jesse C. Ricker and J. Miller Smith, executors, against the city of Helena. In the Lewis and Clark district court the plaintiffs were denied an injunction restraining the defendants from proceeding with the creation of Main street—Neill avenue improvement district officially known as special improvement district No. 139. The project involved the paving of certain streets around the parks near the Great Northern depot. An injunction was asked on the contention that the city council authorized the creation of the district after wrongfully finding that protests of property owners were insufficient. The petitioners maintained that the council illegally included in the district ground dedicated as parks totalling 34,125 square feet and not subject to assessment for the payment of costs of an improvement district. They averred that when the area of the land thus exempt from assessment should have been excluded there would remain subject to assessment 138,660.85 square feet and that property owned by protesting property owners totalled 62,618.25 an area in excess of 40 per cent. The petitioners also contended that Main street being already paved, the owners of property in the district would not be equally and alike benefited by paving on Neill avenue and that creation of the district was in effect taking property from the plaintiff for public use without just compensation. The petitioners asked that the council's action in creating the improvement district be declared null and void, that the contract with F. Burch & Sons be declared void and that a permanent injunction be granted to prevent further proceedings in the project. Judge Stanley E. Felt heard the proceedings and denied the request of the plaintiff upholding the legality of the improvement district. The City of Helena denied that protests embraced an area of 40 per cent of the total area of the improvement district and set forth that the city was willing to pay the costs of the assessment against the ground dedicated for park purposes out of the general park funds. MISSOULA COUNTY COURT DECISION IS AFFIRMED An opinion affirming the judgment of the Missoula county district court in the case of Arthur G. Davis against George Freisheimer was delivered by the supreme court Wednesday. Judgment in the Missoula county district court was for $5,000 in favor of the plaintiff. Davis was employed by defendant at his drug store at 118 North Higgins avenue, Missoula. He alleged that he sustained injuries which would incapacitate him for at least a year by falling into an elevator shaft in the building. He charged negligence on the part of Freisheimer in not lighting the corner of the building in which the elevator was located; that the defendant was negligent in not providing the elevator shaft with a gate or chain; in not having a lock on the elevator to keep it from creeping up four or five feet and in not warning his employes of the dangerous nature of the elevator. He asked $7,000 as compensation for his injuries and suffering, $451 for surgeon's and nurses' fees and $1,500 for loss of a year's earning as a manual laborer. In the accident he alleged he sustained a broken wrist, disjointed ankle, broken collar bone and numerous bruises. MADISON STATE BANK CASE IS REVERSED The supreme court reversed the district court of Madison county in the case of state of Montana on the relation of the attorney general against the Madison State bank of Virginia City. In the Madison county court, from which the case was appealed, the Fidelity & Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75 the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

6. September 28, 1923 The Roundup Record Roundup, MT
Article from The Roundup Record, September 28, 1923

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COUNTY'S CASH IS PREFERRED CLAIM SUPREME COURT RULING HOLDS PUBLIC MONEY MUST COME OUT OF FAILED BANKS FIRST. Judgment of the Madison county court in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City was reversed by the Montana supreme court Wednesday. The lower court had held that the claim of the Fidelity and Deposit company of Maryland against the defunct state bank for reimbursement of the bond paid by the bank to the county to guarantee the county's deposit was not a preferred claim, but the higher court declares that law in Montana "and the weight of law" in all but the three states of the Union is that such a claim has preferred rights. In the lower court the fidelity and deposit company petitioned for an order directing the receiver of the defunct bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as a reimbursement for state funds deposited in the bank. On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

7. October 3, 1923 Laurel Outlook Laurel, MT
Article from Laurel Outlook, October 3, 1923

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COUNTY'S CASH IS PREFERRED CLAIM Supreme Court Ruling Holds Public Money Must Come Out Of Failed Banks First. Judgement of the Madison county court in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City was reversed by the Montana supreme court Wednesday. The lower court had held that the claim of the Fidelity and Deposit company of Maryland against the defunct state bank for reimbursement of the bond paid by the bank to the county to guarantee the county's deposit was not a preferred claim, but the higher court declares that law in Montana "and the weight of law" in all but the three states of the Union is that such a claim has preferred rights. In the lower court the fidelity and deposit company petitioned for an order directing the receiver of the defunct bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as a reimbursement for state funds deposited in the bank. On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not preferred one. The indemnity company appealed.

8. September 1, 1925 The Butte Daily Post Butte, MT
Article from The Butte Daily Post, September 1, 1925

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BANK RECEIVER RESIGNS HIS JOB Edgar P. Reid of Virginia City New Man in Charge of Madison Banks. P. B. McClintock, as receiver of the Madison State bank and also as receiver of the Bank of Twin Bridges, Madison county, this morning sent in letter tendering his resignation as receiver of both institutions on the ground that he had accepted other employment. The resignations of Mr. McClintock in both banks were accepted by Judge William E. Carroll and he named Edgar P. Reid of Virginia City to fill the two vacancies Mr. Reid is an attorney of Virginia City and was formerly county attorney of Madison county Mr. McClintock in his letter of resignation as receiver of the Madison State bank says: "During my receivership there has been collected. From good assets, $79,506.58; from doubtful as. sets, $12,980.68; from worthless assets, $19,488.92, and from assessment of stockholders, $6,000, total of $117 927.13. There has been disbursed: For cancellation of liabilities $68,076.06, including a preferred claim of the state of Montana of $2,520. 45 and preferred claim of the city of Virginia, of $862.01, and payments to the following banks through collections on notes held by them as collateral: War Finance corporation, $30,238.55; National Bank of Montana, $14,362.30; Metals Bank and Trust company, $18,598.75; W. A. Clark & Bros., $1,500; for protection of assets, $236.67; dividends, $19,803.41; legal expenses. $3,439.30; receiver's salary, $6,708.33; taxes. $1,776.74; all other expenses, $2,458.93, making total of disbursement of $102,499.4 leaving a balance of cash on hand of $15,427.65 "After deducting offsets allowed on assets and losses charged off, there remains on hand the following assets: Good assets, $39 526.31; doubtful, $29,602.26; worthless, $121,913.82, making a total of assets on hand of $191,042.39, and from which It is estimated that there will be further collections of approximately $34 838.51. In regard to the Bank of Twin Bridges, Mr. McClintock says: "During my receivership there has been collected: From good assets. $213,114.15; from doubtful assets, $21,616.52; from worthless, $8,853.21; from assessment of stockholders, $6,000; from trustee for owner, $165.52, a total of $249,749.50. There has been disbursed. For cancellation of liabilities, $208,440. including of a preferred claim to the state of Montana of $9 605. a preferred claim to the State Orphans home, 276.11, and payments to the following banks through collections on notes held by them as collateral: War Finance corporation, $113,968.93; American National Bank of Helena, $2,802.17; W. A. Clark & Bros., $15,960.81; National Bank of Helena, $16,541.27; Metals Bank and Trust company, $15,483.79; Chase National Bank of New York, $1 522.19; for protection of assets, $3 650.14; legal expenses, $7,632.63; for receiver's salary, $8,625; for taxes, $3,162.66; for all other expenses, $6 $44.56, making total disbursement of $237,855.43, and leaving a balance of $11,894.07. "After deducting offsets allowed on assets and losses charged off there remain on hand the following assets: Good $118,560.74; doubtful $89,863.63; worthless, $133,640.17, making a total of assets on hand, $341,564.54, and from which it is estimated that there will be further collections of approximately $25 000 that are now in litigation.'

9. December 18, 1926 The Anaconda Standard Anaconda, MT
Article from The Anaconda Standard, December 18, 1926

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CARROLL DIRECTS DISTRIBUTION TO BE MADE AT ONCE About $28,000 to Be Paid by Madison State Bank and Bank of Twin Bridges. Immediate payment of dividends to depositors in the Bank of Twin Bridges and the Madison State bank at Virginia City was ordered yesterday by Judge William E. Carroll, following conference with Edward P. Reid, receiver. Both banks were closed some time ago. Depositors of the Bank of Twin Bridges will be paid dividend of five per cent while those of the Virginia City bank will receive a dividend of eight per cent. About will be paid to depositors of the Virginia City bank and $12,000 will be paid in dividends to depositors in the Bank of Twin Bridges. to At the same time the dividend was declared E. P. Reid announced his resignation as receiver of the two institutions. The court appointed P. B. McClintock of Twin Bridges receiver of the Bank of Twin Bridges and Clifford Albright, of Virginia City, receiver the Madison State bank. Each will receive salary of $100 per month. Both men will qualify as receivers by filing bonds within the next few Mr. Reid surrendered his post because he is moving from Madison county. He is former county attorney of Madison and is throughout that section of Montana. He made no announcement of his plans for the future.

10. December 24, 1926 The Madisonian Virginia City, MT
Article from The Madisonian, December 24, 1926

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BANK WILL PAY DIVIDENDS EDGAR REID, RECEIVER, RESIGNS: McCLINTOCK AND ALBRIGHT ARE APPOINTED Following conference Friday with E. Reid, receiver, Judge E. Carroll of Butte ordered the immediate dividends to depositors in the Bank of Twin Bridges and the Madison State bank of Virginia City, each of which has been closed for more than two years. A dividend of five cent will be paid to depositors the Twin Bridges bank, and those of the Madison State bank are to receive eight per cent. total of about in dividends will be paid to the Virginia City bank depositors and $12,000 to those who had their earnings in the Twin Bridges concern E. P. Reid tendered his resignation as for the two banks, stating that he plans to remove from the County the near future Mr. Reid known in Madison county, having been, one time, county attorney. He has, as yet, announced no definite plans for the future. Appoints New Receivors Clifford Albright of Virginia City was appointed receiver of the Madison State bank to fill the vacancy left by Mr. Reid, while McClintock of Twin Bridges was appointed to act in the same capafor the Bank of Twin Bridges. Each receiver will be paid salary of 8100 per month. Whatever became of the ioned girl who, at this time of year, dresser drawer full of doilies fancy work prepared for Christmas giving? Christmas savings funds enough to pick.