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One National Bank in Montana Has Suspended HELENA, Mont., Dec. 11. - The First National Bank of Ferguson County, at Lewiston, Montana, failed to open its doors today. It is asserted the liabilities are nearly $1,000,000.
First National Bank (Lewiston, MT)
Episode Information
- Episode UID
727401488- Episode Type
- Run → Suspension → Closure
- Bank Type
- national
- Bank ID
-
72740national - Charter Number
- 7274
- Start Date
- December 8, 1923
- Location
- Lewiston, Montana (46.464, -111.986)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
5b9c5530c5bfae92
Response Measures
Borrowed from banks or large institutions, Fed/other loan, Capital injected, Full suspension, Books examined
Other: Reorganization efforts led by the national bank examiner (creditors' agreements, trustee arrangement) and eventual appointment of a receiver; legal enforcement of stockholders' double liability and capital contributions.
Receivership Details
- Depositor recovery rate
- 50.1%
- Date receivership started
- 1924-04-12
- Date receivership terminated
- 1936-05-27
- OCC cause of failure
- Governance
- Share of assets assessed as good
- 31.9%
- Share of assets assessed as doubtful
- 50.0%
- Share of assets assessed as worthless
- 18.1%
Description
Articles use 'Lewistown' (local name); original prompt listed 'Lewiston'—OCR/location discrepancy corrected to Lewistown.
Events (5)
1.
May 27, 1904
Chartered
- Source
- historical_nic
2.
December 8, 1923
Run
- Cause
- Local Banks
- Cause Details
- Run followed failure/distress of several small Fergus County banks closely allied with the First National, provoking a panic and mass withdrawals
- Measures
- Bank closed by board; examiners took charge and organized reorganization plan; solicitation of depositors to sign creditors' agreements
- Newspaper Excerpt
- the first heavy withdrawals from the bank occurred Saturday ... a long line of depositors waited for the opening of the bank
- Source
- newspapers
3.
December 10, 1923
Suspension
- Cause
- Local Banks
- Cause Details
- Board ordered closure following heavy withdrawals and loss of confidence tied to local bank failures and ongoing withdrawal activity
- Newspaper Excerpt
- the First National Bank of Fergus County ... failed to open its doors today
- Source
- newspapers
4.
April 12, 1924
Receivership
- Source
- historical_nic
5.
April 12, 1924
Receivership
- Newspaper Excerpt
- the First National bank had been placed into the hands of a receiver ... F. E. Williams ... was appointed receiver by the comptroller of the currency. (article Apr. 17 reporting receiver appointed last Saturday.)
- Source
- newspapers
Newspaper Articles (22)
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THE LACK OF CONFIDENCE If there ever was a time in Lewistown's history when sanity, calmness and confidence in our institutions is needed in guiding the action of our people, it is now. The closing of the doors of the First National Bank of Fergus County it must be acknowledged was a shock to this community that must prove a trying ordeal, but a little thoughtful reflection at this time will convince us all that a critical period is no time to rock the
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Without indulging in any false optimism, Chief Harris seems to feel that the chances for successful reorganization are most excellent and it is his personal desire and that of the banking department that this be accomplished as rapidly as possible. Having only arrived in Lewistown Wednesday morning it was not to be expected that Chief Harris would make any specific statements but some definite statement will be made within a week or ten days as to the plan of reorganization. Rumors will doubtless continue to circulate in some degree but we are authorized to say that when definite plans for reorganization are completed that they will be submitted to all parties at interest in printed form and not by word of mouth. The impression left by the interview with Chief Harris is that those interested, which in a general sense constitute all in this part of the state, are exceedingly fortunate to have the sympathetic cooperation and assistance of Chief Harris and his able assistants. In this connection the fact should also be stressed that these gentlemen and the officers and directors of the First National bank should have the earnest and wholehearted support of every citizen, both in speech and action and there is no doubt but what this support will be forthcoming from every individual who has the true interest of his community and state at heart. The slogan of Rotary is "He profits most who serves best"—Surely no person intelligently familiar with the conditions which have confronted our state and the world in general during the past few years can fail to realize that the men responsible for our financial institutions have most truly served and in serving that many have freely given a service that money could not buy at the expense of their personal fortunes and health. Yet these will "profit best" by the sympathy and confidence of all thoughtful citizens and this is something that money cannot buy nor time take away.
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Lack of Confidence If there ever was a time in Lewistown's history when sanity, calmness and confidence in our institutions are needed in guiding the actions of our people, it is now. The closing of the doors of the First National Bank of Fergus county, it must be acknowledged was a shock to the community that must prove a trying ordeal, but a little thoughtful reflection at this time will convince us all that a critical
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period is no time to rock the boat. The First National Bank of Fergus County showed by its last statement that it has resources close to five million dollars, while its deposits were a little less than three millions—a showing under ordinary circumstances that would warrant its solidity. But these are not ordinary circumstances and confidence sets lightly upon a people who have been beset with trying conditions for some time. However, it must be realized that if it were not for the lack of confidence this bank would have opened its doors yesterday morning and a disaster in the commercial life of our community might have been averted. It has happened, however, and there is little use of moralizing on what might have been. The run started on the bank at a time when there was less call for it than on previous occasions. It is said that the drawing of money out of the bank had been going on for some time, but it did not culminate into a run until Saturday morning. Although ill-advised it was evident that the run would have been even greater Monday morning had the bank opened its doors. The closing of the First National Bank of Fergus County naturally started a run on the Empire and State Bank, and all day yesterday the force at the bank was busy paying withdrawals until the time arrived for closing. There was plenty of money to pay all who demanded it, and we are reliably informed that at the close of business there was but slight inroads on the heavy cash balance in the Empire vaults. The entire business section of the community formed a depositing line that practically equalled the number of withdrawals. In view of these facts, is it not now time that every resident of this community lend their support to an institution that has withstood the acid test of banking responsibility rather than to attempt to tear down a structure that has given good service and one that is almost indispensable in the commercial life of our community? While it is true that the run on the Empire had slackened somewhat before the time arrived to close for the day, there should not be one dollar withdrawn from that bank today. Lewistown must have at least one bank and every citizen who is interested in the welfare and future prosperity of this city should give this matter serious thought and investigate the resources of the bank before demanding the withdrawal of their deposits. A statement from the First National Bank of Fergus County on another page in this issue gives every assurance that the bank will resume at an early date. The statement is a frank summary of the facts surrounding the conditions responsible for the closing of the bank and gives every hope that it will again be operating within a short time. In this connection, it might be said in a general way that many of the ills Montana has fallen heir to in the past have been brought on, in a measure, by the lack of confidence in Montana and Montana institutions by our own people. The time is here not only when this confidence should be expressed, but when we should show our sincerity by leaving our money in the bank, which will put an end to all danger of loss to the depositor and the bank as well.—Lewistown Democrat-News.
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ROTARY, KIWANIS MEETINGS STIR NEW CONFIDENCE Johnson, McClave and Symmes Make Statements Which Clarify the Atmosphere. Two meetings this week largely attended by the business men of the city gave remarkable evidence of the confidence in the local financial situation and the assurance that the men of this city are standing behind the bank in helping the re-opening of one and protecting the other during a critical period. The Kiwanis club met on Tuesday with many prominent men as visitors, while the Rotary club held its meeting on Wednesday with an attendance of not less than 100 men. Optimism was predominant and there was an exhibition of steadfastness and fine courage manifested that was altogether reassuring in a time of a crisis. Those who addressed these bodies gave expression to the strangest confidence in the strength of this community and its ability to pull out of strenuous circumstances and these sentiments were echoed by the applause of the listeners. W. D. Symmes was the principal speaker at the Kiwanis meeting. Representing a large business establishment, Mr. Symmes assured the gathering that he felt no uneasiness about the future of this city and the territory that is tributary to it. "Hard days have been here before and we have weathered them because of the indomitable spirit of the men who live here and with that spirit to carry on now as strong as ever there can be no doubt about our pulling through this situation," said Mr. Symmes. "We have the resources to make of this a great country and a circumstance like the temporary closing of a bank can at best be only a small set back. With the experience of these days we will be enabled to build a firmer foundation for the business and industry of this section." B. C. White of Buffalo, former senator of this county and for more than a third of a century prominently identified with the development of this section, made a short address to the gathering. Mr. White drew upon his long experience to relate how really hard times had confronted the people living here in the pioneer days with which the present affair held no comparison. He stirred the audience to greater determination to stand fast and close ranks in a united effort to meet whatever may be in store. The addresses did much to strengthen the morale of the community. At the Rotary meeting on Wednesday, W. J. Johnson, president of the First National bank, was requested to make a statement. When his name was presented it was linked with the other officers of that bank and the gathering gave these men a tribute of confidence that has perhaps never been equalled here before. It was all spontaneous expressing all the more what had been in the minds of those who understood in a measure what sacrifice and heroic effort these officials had put forth during the last several years in maintaining the soundness of the institution they directed. Mr. Johnson arose to make a brief statement, saying that he wanted to correct one rumor that had gained circulation that morning. "There was recorded in the office of the local county clerk certain deeds given by me to another to certain property owned by me. The action of recording that deed at this time is an action which has been misunderstood and I have asked for sufficient time at this meeting to make an explanation," said Mr. Johnson. Then in a frank way he related how, after an examination of the bank last July, the examiner had felt that the best interests of the bank required that $200,000 of the bank paper be replaced with $200,000 of cash. Of this amount Mr. Johnson personally contributed from his personal resources $50,000. This amount was obtained through a loan from a friend and in order to secure him, Mr. Johnson gave him deeds to some personal property. It was not asked that these deeds be not placed on record, but it was hoped that developments would make possible the repayment of the loan. "My friend is absent at the present time and were he where he could be reached and given an understanding of the facts the deeds would never have been recorded and I further feel that as soon as he does return he will deed this property back to me, although I do not state that as a fact. You can aid the situation by giving as wide publicity as possible to this explanation in order to correct the wrong impression that is current," said Mr. Johnson in conclusion. "One more thing and that is to say that not in a single instance has any officer or director of this bank sought to evade in the slightest his moral and financial responsibility to the institution." Chief examiner Harris arose to tell the audience that he could from his own knowledge corroborate everything that Mr. Johnson had just stated. President C. R. McClave, who is also one of the directors of the (Continued on Page 8)
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WIDESPREAD MISERY RESULT OF CRASH Special to Producers News. DON'T PITY THE Lewistown, Dec. 10.-The First NaPOOR FARMER! tional Bank of Fergus County, the largest banking concern in central and eastern Montana went to the wall These Raised Horses Instead of Pole last Menday morning as the result of Cats, and Sold Them for $1.07 Per a run last Saturday by a huge crowd Head. of frightened depositors, who made a mad rush to get their money upon the Forsyth.-Ranchers in the vicinity failure of several small town State of Rosebud who have been shipping banks in Fergus county during the range horses to eastern markets reweek, which banks are the property of port receiving very lew prices for the First National Bank of Lewis their stock. One man who shipped a county. carload of 29 horses to a Nebraska $300,000 CAPITAL market received a check for $31.03 The First National Bank of Fergus for the carload of $1.07 per head County has a capital stock of $300,net. Other shippers of smaller un000, and a surplus of $100,000: it has broken horses did not get enough for deposits in the sum of $5,000,000 and them to pay the freight. The only was the principal bank of deposit in local buyers for this class of horses Central Montana and was a discount are the hog feeders, who are paying bank for several smaller banks in around $2.00 per head. Fergus county, all of which have reThe demand for small horses is a cently failed. thing of the past and there are thousFIRST COPPER BANK TO FAIL ands of these worthless animals on The Lewistown Bank is the first the ranges in Rosebud county. Stockbank known in the state as a "Copmen and farmers are putting forth bank to fail, and is the largest every effort to dispose of them as banking institution in the state to they are consuming the feed that succumb in the impending financial could be utilized in the production of and economic wave that is engulfing more beef. wool and mutton. the nation. DEPOSITORS DISAPPOINTED The first heavy withdrawals from the bank occurred Saturday and the NELS MOE KNOCKS news of the condition of the bank spread after the bank closed. Saturday and all day Sunday and Monday OUT STEVE O'BRIEN morning a long line of depositors waited for the opening of the bank Coming Young Pug Floors Hug to withdraw their deposits, when one Irishman in Second Round-Figh of the employes appeared in the door Sensational While it Lasted. and posted from the inside the notice to the effect that the bank had been closed by orders of the Board of DiHoldfast Sask., Dec. 23.-Before à rectors. The crowd was excited, packed house at Holdfast, Sask., O some were crying, while others were Saturday night, December 8th, Nel cursing. Many lost the saving of a Moe knocked out Steve O'Brien in life time, and it is understood that the second round of a ten round sched the bank will never be able to pay ule. O'Brien took the county of eigh out but a small fraction of the dein the first round. The match wa posits, the bank having taken huge fast and furious while it lasted losses as a result of deflation and the O'Brien stands six feet six and weigh agricultural wreck of the past couple over 200 pounds and has a reach o of years the result of the deflation 82 inches while Moe stands 5 feet 1 policy of the Federal Reserve Bank. inches and weighs 174 pounds with BELDEN RUINED reach of 78 1/2 inches. It was a cas 0. W. Belden, prominent in bankof speed and science against size ing and financial circles of the state, weight and strength. reported as ruined, as is also, W. L. Johnson, president of the bank, who T. U. MEETING has been considered one of the leading bankers of the state for many years. The W. C. T. U. met in its regula Among the other officers of the monthly meeting at the 8th grad bank are Rep. T. T. Taylor of Ferbuilding Tusday evening at 8 o'clocl county, who did yoeman service Mrs. E. T. Mitchell, the Evangelisti the legislature last winter in beSuperintendent led the meeting. Ro of the banking fraternity. call was responded to by giving som OTHER BANKS FAIL current event concerning Prohibition On Tuesday, following the failure Miss Isabel Malcolm read an inter the Lewiston bank, the State Bank esting paper on "The Significance ( of Moore and the First National Bank the "C" in W. C. T. U. and Mrs. C. C of Moore both were closed as a result Christianson gave a well prepare of the wreck and State Bank of Ray in paper on "Prayer and Faith-the Ke eastern part of the county also closed. note of Success." Come to the All of these banks were closely allied o meetings every second Tuesday with the First National of Lewiston. each month that the forces of goo Practically all of the small town may be as weil organized and a.tiv as the forces of evil. (Continued on Page Four)
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(Continued from page 1) banks in Fergus county are now closed. EMPIRE BANK STANDS UP The Empire & State Bank was able to stand the run Monday. A long line of depositors withdrew their money and another line was depositing. This depositing line was a stage play line thought to have been arranged for by the bank to inspire confidence in the panic strickened depositors-depositors withdrew about $15,000. Monday the withdrawal continued but so far the bank has been able to weather the storm BANK LONG A "LAME DUCK" The First National Bank of Lewistown has been known as a "lame duck" for several months. In the middle of the summer the bank had a desperate time to keep open and at one time several National Bank Examiners were there at once, but the bank was able to ride until after the harvest mcney had been deposited. The bank had been the bank of deposit of the Montana Wheat Growers Association up until very recently. PEDDLE "OLD BUNK." The officers of the defunct bank and the "copper paper" are peddling the usual bunk about reorganization and new money available soon. And that all deposits will be paid in full, etc.
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STATE NEWS EARLY OPENING OF BANK IS INDICATED Speedy Reorganization of Fergus County First National Hoped For. LEWISTOWN, Dec. 18.—(Special.)—The first report as to progress at the First National bank of Fergus county since it closed its doors on Dec. 10 has just been given out and it is of encouraging nature, indicating a reasonably speedy reorganization and reopening of the institution. Chief Examiner T. E. Harris in charge, is reported as being much gratified with the progress made. A schedule of the depositors in both the savings and checking departments has been completed. It shows a total of 5 795 depositors and of these 4,424 have accounts of less than $100 each, the average being but $21. This shows that 76 per cent, or more than three-fourths of the whole number of depositors have total deposits of $93,000. Examiner Harris has called upon the stockholders immediately to pay into the bank the full 100 per cent of their liability, which amounts to $300,000, the same as the capital stock. Borrowers from the institution are reported as making inquiries as to how to proceed to liquidate their indebtedness and from them a large sum to help provide the reserve necessary before reorganization and reopening is certain.
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OFFERS ADVICE TO DEPOSITORS EXAMINER IN CHARGE OF THE FIRST NATIONAL ISSUES CIRCULAR LETTER—SHOWS THE WISDOM SIGNING UP AGREEMENTS. The following circular letter, the second to be put out by the examiner, is being sent to the depositors of the First National bank who have not yet signed up the creditors' agreements: There was recently mailed you a plan of reorganization of this bank, now suspended, together with a Creditors' Agreement which you were requested to sign and return. In again drawing the matter to your attention it is desired to emphasize the fact that the plan of reorganizing and reopening the bank was prepared after most careful consideration, as the Best Plan for the Depositors. Representing the Comptroller of the Currency, the Examiner in Charge of the bank is interested primarily in the depositors, and is attempting to do what will give to the depositor the most certainty of receiving his money. To this end, the stockholders have turned to the bank their investment of Four Hundred Thousand Dollars, and in addition are paying in, just as fast as they can arrange for it, their double liability of Three Hundred Thousand Dollars more. If stockholders do not pay this double liability voluntarily, the legal process to collect will be enforced. New stockholders are putting into the new bank Three Hundred Twelve Thousand Five Hundred Dollars which adds that sum for the protection of your deposit. Among some depositors there is an impression that it will only require a certain percentage of the depositors to sign up and that by waiting and refusing to sign the creditors' agreement they will be able to obtain their money sooner. This attitude if continued will only serve to place the affairs of the bank in the hands of a receiver, as one of the purposes of the reorganization is to place all depositors on the same basis and avoid preference. Something more than forty per cent. of depositors, both in number and amount, have signed the agreement. This letter is sent to those whose agreements have not come in. The Examiner in charge, as the title implies, is temporarily conducting the business until depositors shall signify whether they wish the bank reopened or not. Failure to obtain an agreement from depositors within a reasonable time will indicate the preference of those not responding that the bank be placed in charge of a receiver. In such case, the loans of the bank, which represent your money, will be forced at a time when borrowers cannot possibly pay, and the resultant loss will come out of your deposit after the legal and other expenses have first been deducted. New deposits of substantial amounts are ready to be placed in the bank so that it can start, the day it opens, to serve the community in a substantial way. It is expected that the bank will have ample funds to serve the legitimate needs of the community and in making loans A Preference Will Be Given to Loans Secured by Deposits in the Suspended Bank. You are earnestly requested to sign and return the Creditors' Agreement sent you. You are also urged to call at the bank or write for any information desired. Many rumors and untrue statements are being circulated, perhaps in some cases by persons with the hope of personal gain if a receivership, with its attendant cost and litigation and distress involving hard pressed borrowers, follows. The Examiner in charge is here for your service exclusively, trying to do the best he can to protect your money and will make it available for you at the earliest possible date. Will you not cooperate by an immediate decision which is urgently requested as the present status of the bank cannot be continued indefinitely. Sign Your Creditors' Agreement and Return Now by Next Mail. Yours truly, T. R. DWYER, Examiner in Charge.
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EXAMINER MAILS SECOND LETTER TO DEPOSITORS Urges Depositors to Sign, Assuring That Is Way Best for Creditors Each day is adding to the number of depositors in the closed First National Bank who have signed the depositors agreement and by that much each day is bringing the time for reopening of the bank that much nearer. The bank examiner in charge reported that Monday was one of the best days yet and saw a large number of depositors in the institution signing up with the plan as has been outlined. On last Friday it was stated that about 40 per cent of the depositors representing about 40 per cent of the total deposits had already signed the agreement and that the work was progressing satisfactorily. A new impetus was given the work by the second letter sent to depositors who had not yet signed up. The letter cleared up some matters about which there had been some doubt in the minds of some depositors and very probably was the reason for the ready response. In this communication the examiner states that the stockholders of the First National had already turned in their investment of $400,000 and in addition are making their payments on the double liability of $300,000 as fast as they could. The letter makes very clear the fact that there is no escape from this liability and that all stockholders must meet it either voluntarily or through compulsion, should it become necessary in any instance to resort to legal process. As regards the new bank it was stated that the subscriptions for the stock had been secured without difficulty and that the final success now depended entirely upon the depositors who had not already signed the agreement. It was also stated that deposits in very substantial amounts were assured for the new bank, awaiting only the opening of the institution to be placed. The Examiners letter under date of January 11, follows in full: Examiner's Letter. There was recently mailed you a plan of reorganization of this bank, now suspended, together with a Creditors' Agreement which you were requested to sign and return. In again drawing the matter to your attention it is desired to emphasize the fact that the plan of reorganizing and reopening the bank was prepared after most careful consideration, as the best plan for the depositors. Representing the Comptroller of the Currency, the Examiner in charge of the bank is interested primarily in the depositors and is attempting to do what will give to the depositor the most certainty of receiving his money. To this end, the stockholders have turned to the bank their investment of four hundred thousand dollars, and in addition are paying in, just as fast as they can arrange for it, their double liability of three hundred thousand dollars more. If stockholders do not pay this double liability voluntarily, the legal process to collect will be enforced. New stockholders are putting into the new bank three hundred twelve thousand five hundred dollars which adds that sum for the protection of your deposit. Among some depositors there is an impression that it will only require a certain percentage of the depositors to sign up and that by waiting and refusing to sign the creditors' agreement they will be able to obtain their (Continued on Page 8)
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Reports Progress On Reorganization Lewistown, Jan. 25.—(Special)—At the Kiwanis luncheon T. R. Dwyer, examiner in charge of the First National bank, gave a brief address in which he discussed the progress made in the matter of reorganization. Mr. Dwyer said that about 65 per cent of the depositors in the bank had been signed up to date, and they continued to come in with every mail and by personal calls at the bank. This was, according to his experience, a very creditable record. However, it did appear necessary, in order to expedite matters and hasten the opening of the proposed bank, to make personal solicitation of a number of the depositors who through various causes and chiefly, perhaps, just because they did not appreciate the great advantage of speedy action had delayed signing the agreements. His idea was that it would be an excellent plan for committees from the Kiwanis, Rotary and Outlook clubs, the Masonic lodge, the chamber of commerce, Knights of Columbus, Elks, and other organizations and clubs to make personal calls upon as many of the depositors who had not signed up as possible and urge prompt action in that respect.
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Banks Are Planned by Lewistown Men Special to The Tribune. Lewistown, Feb. 3.—Plans are being initiated for the purpose of establishing a private bank in this city to provide checking facilities for local business men. Loans are not contemplated. Plans are also being made for the establishment of an organization to handle the assets and liabilities of the First National bank. It is understood that about 80 per cent of the depositors in the First National have agreed to the plan advanced. EXALTED RULERS' NIGHT Past Exalted Rulers' night will be observed at the Elks temple tonight with a special program. The past exalted rulers and the chairs they will occupy during the ceremony follow. Exalted ruler, J. M. Burlingame, esteemed leading knight, E. H. Cooney; loyal knight, H. W. Benton; lecturing knight, Frank Fogerty; esquire, A. C. LeFebvre; secretary, George Harper; treasurer, R. T. Richardson; chaplain, Otto Byornstad and C. E. Hubbard; inner guard, J. E. Moran; tiler, E. A. LaBossiere; organist, R. M. Leslie; trustees, C. I. Jones, W. E. Ward, and W. S. Frary; past district deputy, Roy E. Ayers; house committee, J. A. Sweet, F. P. Marshall, F. T. Merrill and A. S. McKenzie.
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FIRST NATIONAL GOES INTO HANDS BANK RECEIVER Efforts to Reorganize Fail Unsigned Deposits of $287,000 Is Obstacle Last Saturday afternoon the announcement was made that the First National bank had been placed into the hands of a receiver and thus was brought to an end the strenuous efforts that had been pursued during the last three months to reorganize and reopen the institution. F. E. Williams, national bank examiner, was appointed receiver by the comptroller of the currency. Ever since last Monday rumors were current that it would not be possible to reopen the bank with the amount of unsigned deposits still outstanding and when the news was officially announced it did not come as a complete surprise to many. However regret was apparent on every hand and the general effect of the unwelcome information was generally depressing. The First National closed its doors on December 10, by order of its board of directors following withdrawals of deposits which had been in process for some time. Chief National Bank Examiner of this district, T. E. Harris of Minneapolis took charge of the closed bank. Immediately following a thorough examination of the institution Mr. Harris in conjunction with the local officers and directors worked out a general plan for reorganization under which the bank could have opened its doors again and function as a banking institution. The plan required that depositors sign waivers under which 75 per cent of their deposits would be guaranteed by the new bank and the balance be placed into trust. The agreement pledged the bank to pay varying percentages over a period of four years. An effort to secure the signature of depositors was started at once and continued during many weeks. Also arrangements were made through the Agricultural corporation by which large financial help would have been available for the new bank through that channel. Assured of the necessary help it remained for all the depositors to sign the agreement. As a final effort a committee of depositors was organized and while they did some effective work, their results were not sufficient to put the proposition over. The final official statement was to the effect that $287,000 still remained unsigned and that is was not considered prudent to attempt to reopen the bank under any plan that would permit of a preference for some of the depositors. The only alternative was a receiver who was appointed last Saturday. F. E. Williams, the receiver appointed is well known in this community and over the state of Montana. He has been a resident of the state for many years and has a varied experience. He was at one time deputy state bank examiner and was receiver for the State Savings bank of Butte, which closed its doors in 1907. Later he became examiner for the Federal Reserve bank and during the past two years has been a national bank examiner in Montana. When the news of his appointment for the local bank reached him he was in California but it is expected that he will arrive in Lewistown some time this week to take active charge. It was stated that Mr. Williams was perhaps better acquainted with the affairs of the First National bank than any one else outside of the officers and directors of the bank. When the consolidation of the two institutions was in process Mr. Williams represented the national department and his work in that connection gave him an intimate knowledge of the bank and its affairs. The deposits of the closed bank total approximately $3,000,000 of which amount better than $600,000 is represented by county funds.
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CHANGE BANK RECEIVERS LEWISTOWN, April 27.—(Special)—National Bank Examiner T. R. Dwyer of Minneapolis, left for his home today. Mr. Dwyer had been here since February in charge of the First National bank, and is succeeded by F. D. Williams, who has been appointed receiver. It is learned that a new plan for reorganization is now being pushed and may shortly terminate the receivership.
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PRAY APPROVES FERGUS BANK'S FINANCE PLAN Signs Order Permitting Transfer of Assets From Old to New Institution Final action by Federal Judge Charles N. Pray clearing the way for opening of the First National bank of Lewistown as the successor of the old First National bank of Fergus County, was taken Monday when he signed an order as petitioned for by those interested in the new institution. The order permits the old bank to sell to the new bank 50 per cent of its assets, the one detail remaining for the opening of the First National of Lewistown. The order signed by Judge Pray establishes a precedent in that it is the first time that such a plan has been submitted or approved, according to E. K. Cheadle of Lewistown, counsel for the new bank organization. By the terms of the order, three trustees are named to take charge of the remaining assets of the old bank. It is intimated that the assets going into the trusteeship will be approximately $2,000,000. The trustees named by Judge Pray are: E. C. Sweitzer, one of the directors of the old bank and also one of the new; A. W. Stoddard, Fergus county commissioner-elect, and H. E. Shipman, an old resident of Lewistown and formerly a prominent rancher and stockman. Aside from other qualifications, Mr. Stoddard, according to Mr. Cheadle, was selected as a trustee because he represents, in his position as commissioner, Fergus county, which had approximately $700,000 deposited in the closed bank. Mr. Cheadle and others interested in the new institution, see no reason why the new bank should not be in operation within 10 days. Plans for the new institution have been approved by the comptroller of currency. It will be capitalized at $150,000 and will have a surplus of $30,000.
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SUES BANK RECEIVER Lewistown, March Law has brought suit against Williams, receiver of the First National bank, to have deposit of $8,000 declared claim and ordered applied to the plaintiff's note for $8,000. Mr. Law alleges that when he deposited the sum, just before the bank closed, it was for purpose having applied to the note and that should have been put in trust fund.
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DEFUNCT BANK PAYS. LEWISTOWN.- - Two years after the First National Bank of Fergus County closed its doors, announcement is made that the receiver has on hands checks to pay its 3,200 depositors a dividend of 30 per cent, the total aggregating nearly $1,000,000.
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Bank Pays Dividends Receiver F. D. Williams of the First National bank of Lewistown is now sending out checks to the 3,200 depositors of the Institution. The checks represent a dividend of 30 per cent upon the deposits and the total is nearly $1,000,000. The bank closed two years ago and the payment of this Mividend made Christmas one of the brightest Lewistown has known In some years,
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Alleging that the directors of the First National bank of Fergus county in a resolution withdrawing from the general assets of the bank $755,000 in securities acted illegally and fraudulently in protecting their personal sureties given to indemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the directors had been informed by the comptroller of currency that the bank was in an unsound condition, F. D. Williams as receiver of the bank has filed suit in federal court here against the bank's stockholders and directors. The receiver asks for the return of $200,000 of Fergus Securities company capital stock, or the equivalent, and for an injunction restraining the bank directors from disposing of the stock in any other way. It is cited in the complaint that the bank suspended December 10, 1923;
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Second Bank Dividend. Receiver Sill has just paid a dividend of $300,090 to the depositors of the failed First National Bank. of Lewistown.
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Lewistown Receiver Pays $300,000 To Depositors Lewistown.--Of the $300,000 to be disbursed this week by Receiver C. C. Sill of the defunct First National bank, it is found that 70 per cent of the total or about $210,000 will be paid to depositors in the Lewistown district. There are 3,00 checks to be paid out, and this payment will make a total of 40 per cent so far disbursed.