Citizens State Bank (Callaway, MN)

Episode Information

Episode UID
75067771523
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
7506777 routing
Routing Number
75-0677
Start Date
November 12, 1926
Location
Callaway, Minnesota (46.982, -95.910)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
25823fb227bafabf

Response Measures

None

Description

Closings followed runs and an unexplained shooting of two bank officials; state banking department took assets.

Events (3)
1. November 12, 1926 Receivership
Newspaper Excerpt
place all assets in the hands of the state banking commission
Source
newspapers
2. November 12, 1926 Run
Cause
Local Banks
Cause Details
Runs followed recent closing of First National and growing depositor uneasiness after shooting of two bankers
Measures
Bank officials and state examiners decided to close the bank to preserve assets; deposits placed in hands of state banking commission
Newspaper Excerpt
both institutions were closed after runs had caused withdrawals imperilling their resources
Source
newspapers
3. November 12, 1926 Suspension
Cause
Government Action
Cause Details
Closed by state banking department due to depleted reserves; assets placed in hands of state banking commission
Newspaper Excerpt
Two Becker county banks with total deposits of $930,000 were closed today by the state banking department because of depleted reserves
Source
newspapers

Newspaper Articles (13)
1. November 12, 1926 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 12, 1926

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Article Text

TWO BECKER COUNTY BANKS ARE CLOSED State Banks at Callaway and Detroit Lakes Fail to Open Their Doors Today Detroit Lakes, Minn., Nov. 12.(AP)-Two Becker county banks with total deposits of $930,000 were closed today by the state banking department because of depleted reserves. The institutions are the Security State Bank of Detroit Lakes, with deposits of $780,000. and the Citizens' State Bank of Callaway, with deposits of $150,000. The First National bank here was closed Monday. H. H. Erickson, president of the Callaway bank. is also cashier of the Security bank Closing of the Callaway bank followed the shooting affray there Tuesday in which Frank Murphy, cashier, and W. J. Norby, a stockholder, were found wounded in the former's office. The cause of the shooting and who is responsible for it has not been determined. Declines to Comment County Attorney A. O. Sletvold declined to comment on the developments today before he had a more intensive investigation of the closings and shootings. Financial uneasiness started here with the closing of the First National bank with deposits of approximately $800,000. A few months before the Merchants National bank with deposits of $500,000 closed its doors. Today the Security State bank of this place failed to open its doors. L. J. Norby. president of the bank. is a brother of W. J. Norby, the man who is suffering with wounds in a hospital here. Shortly after the Security State bank closed today, word was received here that the Citizens' State bank at Callaway had closed its doors. Whether the bank closings have any connection with the unexplained shooting of the two Becker county bankers is a point which has not been cleared. Investigation Under Way County Attorney Sletvold was investigating the possibility of there being a connection, but he declined to make any comment on the situation, other than he "was investigating." Thursday night deputies from the state bank examiners' office, officials of the Security bank and the county attorney consulted with officers of the Callaway bank. It was decided to close the bank today and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there is no criminal action hinted in the closing of the bank. Officials said the bank was closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstanding papers of the bank. Had the bank been permitted to stay open in the face of the run already begun, bank and county of ficials assert the result might have been still more disastrous to depositors. Closing of the Security bank, it is said. has temporarily halted plans for reorganization of the First National. The remaining bank in Detroit Lakes, the Detroit State bank, was preparing this morning to face a run, but money is on hand, business men say, to more than pay off all depositors. County Attorney Sletvold said he would be unable to question Murphy and Norby about their wounds until after Saturday. This delay is occasioned by the cond: tion of the men. Mr. Norby is the more seriously wounded. and in the event he should die, Mr. Sletvold said, a special grand jury will be called to investigate the shooting.

2. November 13, 1926 The Oregonian Portland, OR
Article from The Oregonian, November 13, 1926

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Article Text

hands of the state finance commissioner. Heavy runs on the bank in the the Laughlin president, He said the board believed the depositors amply protected. The deposits amounted to about $2,000,000. DETROIT LAKES. Minn., Nov. 12. Becker county banks. with of $930,000 were closed today by the state of depleted reserves. The institutions are the Security State bank of $780,000, Citizens' bank Callaway, with deposits

3. November 13, 1926 The Independent-Record Helena, MT
Article from The Independent-Record, November 13, 1926

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Article Text

Two Bankers Shot, Institution Closed Detroit Lakes, Minn., Nov. 12.-(P) -Mysterious shooting of two bankcrs in the Citizens State bank of Callaway, Minn., was followed today by the closing of that bank and the Security State bank here because of depleted reserves. Physicians said another 24 hours must clapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds in the bank Tuesday. H. S. Erickson, president of the Callaway bank also is cashier of the Security bank here and both institutions were closed after runs had caused withdrawals imperilling their resources, the bank's officials said. Will Live. Norby and Murphy, found unconscious in locked room in the rear of the Callaway bank, were reported improving today but were not out of danger. There has been no defi- nite indication of responsibility for the double shooting. The Security bank here had deposits of $780,000 and the Callaway bank had $150,000 in deposits.

4. November 13, 1926 Douglas Daily Dispatch Douglas, AZ
Article from Douglas Daily Dispatch, November 13, 1926

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Article Text

TWO BANKS CLOSE, DUE TO DEPLETED RESERVE, AFTER EMPLOYES SHOT DETROIT LAKES, Minn., Nov. 12 (P)-Mysterious shooting of two bankers in the Citizens' State Bani- of Callaway, Minn., was followed today by the closing of that bank and the Security State bank here because or depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway bank and Frank Murphy," its cashier, found suffering from bullet wounds n the bank Tuesday. H. S. Erickson, president of the Callaway bank, also is cashier of the Security bank here and both institutions were closed after runs had caused withdrawals imperilling their resources, the banks' officials said. Norby and Murphy, found unconscious in a locked room in the rea! of the Callaway bank, were reported improving today, but were not oui of danger, their physicians said. There has been no definite indication of responsibility for the double shooiing. The Security bank here had aeposits of $780,000 and the Callaway bank had $150,000 in deposits.

5. November 13, 1926 Evening Star Washington, DC
Article from Evening Star, November 13, 1926

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Article Text

TWO BANKS CLOSE AFTER SHOOTING Mystery of Wounding of Two Men in Minnesota Institution Nnexplained. By the Associated Press. DETROIT LAKES, Minn., Novem. ber 13.-The mysterious shooting of two bankers in the Citizens' State Bank of Callaway, Minn., was fol. lowed yesterday by the closing of that bank and the Security State Bank here because of depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway Bank, and Frank Murphy, its cashier, found in the bank Tuesday suffering from bullet wounds. H. S. Erickson, president of the Callaway Bank, also is cashier of the Security Bank here and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. The Security Bank here had deposits of $780,000 and the Callaway Bank had $150,000 in deposits. A. O. Sletvold, county attorney, said he had found nothing in the closing of the banks to warrant any action by him. The closing of the First National Bank here Monday, followed by the unexplained shooting of Norby and Murphy, "caused uneasiness among depositors of the Callaway Bank and Security Bank," in Sletvold's opinion, and led to the runs that forced their closing.

6. November 13, 1926 The Independent-Record Helena, MT
Article from The Independent-Record, November 13, 1926

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Article Text

Two Bankers Shot, Institution Closed Detroit Lakes, Minn., Nov. 12.-(P) -Mysterious shooting of two bankers in the Citizens State bank of Callaway, Minn., was followed today by the closing of that bank and the Security State bank here because of depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds in the bank Tuesday. H. S. Erickson, president of the Callaway bank also cashier of the Security bank here and both institutions were closed after runs had caused withdrawals imperilling their resources, the bank's officials said. Will Live. Norby and Murphy, found unconscious in a locked room in the rear of the Callaway bank, were reported improving today but were not out of danger. There has been no defi- nite indication of responsibility for the double shooting. The Security bank here had deposits of $780,000 and the Callaway bank had $150,000 in deposits.

7. November 13, 1926 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, November 13, 1926

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Closing of Banks Follows Shooting of Two Bankers DETROIT LAKES. Minn., Nov. mysterious shooting of bankers in the Citizens' State bank Callaway was followed yesterday the closing of that bank and the curity State here because reserves. another 24 hours must elapse before they will permit authorities Norby, stockholder in the Callaway Frank Its cashier, found the Tuosday suffering from bullet wounds. Erickson, Callaway bank, cashier Security bank and booth Instituclosed after runs had caused imperilling their resources, the banks' officials The Security here had posits $780,000 the bank had $150,000 deposits. Sletvold, county said found nothing closing banks warrant any ction by him. closing of First National bank here Monday, followed by the unexplained shooting of Norby and caused among depositors Callaway bank bank, and to that their closing.

8. November 13, 1926 The Sacramento Bee Sacramento, CA
Article from The Sacramento Bee, November 13, 1926

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BANKS CLOSED AFTER MYSTERY SHOOTING OF TWO Officials Found In Bank With Bullet Wounds; Depositors "Run" On Bank DETROIT LAKES (Minn.). Nov. shooting bankers in the Citizens' State Bank of Callaway, Minn., was followed yesterday by the closing of that bank and the State Bank here because reserves. Physicians said another twentyfour hours must elapse before they will permit authorities to question Norby. in the Callaway bank. and Frank Murphy. its cashier, found suffering from bullet the Tuesday. Closed After "Run." H. S. Erickson, president of the Callaway Bank, also is cashier the Security Bank here, and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. Norby and Murphy, found unconscious in the rear the Callaway Bank, reported improving to-day, but were not out of their physicians said. There has been no definite indication of responsibility for the double shooting. SUFFRAGE WORKER DIES. LOS ANGELES, Nov. 13.-(P)Mrs. Mila Lupper Maynard, 60, author, lecturer and philanthropist, was quite geenrally known for her work on behalf woman suffrage. last night. She came here number of years from Denver. where she was engaged as an editorial writer for the Denver News-and Times. TO-DAY'S 12 Noon Highest yesterday

9. November 13, 1926 Star-Herald Scottsbluff, NE
Article from Star-Herald, November 13, 1926

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Customers Become Suspicious After Two Officials Had Been Found Wounded. Detroit Lakes, Nov. Mysterious of bankers the Citizens State bank of Callaway, Minn. was followed today by the closof that bank and the Security State bank here because depleted Physicians said another hours must elapse before they will permit authorities question Norby, holder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds received the bank Tuesday. H. Erickson, president of the Callaway bank also cashier the Security bank here and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. Norby and Murphy, found unconsclous locked room in the the Callaway bank were reported improving today but were not out danger, their physicians said. There has been definite of sponsibility for the double shooting. The Security bank heer had deposits of $780,000 the Callaway bank $150,000 in deposits. Sletvold, county attorney said he had found nothing in the closing of the banks to warrant any action by him. The closing the First National bank here Monday. followed by the unexplained shooting of Norby and Murphy "caused uneasiness among positors the Callaway bank and curity Sletvold's opinion, and led to the runs that forced their closing.

10. November 13, 1926 Douglas Daily Dispatch Douglas, AZ
Article from Douglas Daily Dispatch, November 13, 1926

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TWO BANKS CLOSE, DUE TO DEPLETED RESERVE, AFTER EMPLOYES SHOT DETROIT LAKES, Minn., Nov. 12 shooting of two bankers in the Citizens' State Bank of Callaway, Minn., was followed today by the closing of that bank and the Security State bank, here because or depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. Norby, stockholder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds in the Tuesday. H. S. Erickson, president of the Callaway bank, also is cashier of the Security bank here and both Institutions were closed after runs had caused withdrawals imperilling their resources, the banks' officials said. Norby and Murphy, found unconscious locked room in the rear of the Callaway bank, were reported improving today, but were not out of danger, their physicians said. There has been no definite indication or responsibility for the double shooting. The Security bank here had deposits of $780,000 and the Callaway bank had $150,000 in deposits.

11. November 13, 1926 Lewistown Daily News Lewistown, MT
Article from Lewistown Daily News, November 13, 1926

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MAID IN HALL HOME FOUR YEARS PROVES STRONG WITNESS IN TRIAL BRINGS CRISIS BANKS DETROIT LAKES. Minn., Nov. shooting of two bank in the Citizens' State bank of Callaway, Minn., was followed today by the closing of that bank and the Se curity bank here, because of depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities question W. Norby, stockholder the Callaway bank and Frank Murphy, its cashier, found fering from bullet wounds in the bank Tuesday H. Erickson, president of the Callaway bank also cashier of Security bank here and both institutions were closed after runs had imperilling their sources, the banks' officials said. Norby and Murphy, found unconscious locked room in the rear of bank, were reported proving today, but were not danger, their physicians said. There has been definite indication of for the double shooting. The Security bank here had deposits and the Callaway bank had in deposits.

12. November 19, 1926 The Producers News Plentywood, MT
Article from The Producers News, November 19, 1926

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MANY BANKS GO TO WALL Trust Co. Stops Business TWO MORE Kansas City, Nov. 13.-The state finance commissioner was in charge of the Federal Trust company of Kansas City which suspended busiMINNESOTA ness yesterday following recent heavy withdrawals. BANKS FAIL The bank was organized under the state banking laws with a capital of $200,000 and a surplus of $40,000. Institution Where Two Bankers Were Deposits totalled approximately $2,Found Shot Closes Doors - Three 000,000 and resources were listed at nearly $3,000,000. The institution Day Run Shuts Security State. was accorded privileges of the federal reserve system. Two Becker county banks with total P. E. Laughlin, president, said he deposits of $930,000 were closed by thought the deposits were safe. A the state banking department because city deposit of $300,000 was protectof depleted reserve. ed by government bonds. Funds of The institutions are the Security the state of Missouri were covered State bank of Detroit Lakes and the by a surety bond. Citizens State bank of Callaway, scene Laughlin organized the Mid-West of the shooting of W. J. Norby and National Bank and Trust company Frank Murphy, Becker county bankhere 10 years ago. This institution ers recently. was merged in 1920 with the NationFailure of the two institutions al Reserve bank under the name of marked the third bank failure in Becthe Mid-West Reserve Trust comker county within a week. The First pany. It closed a year later. De~ National bank of Detroit Lakes, largpositors were paid but directors and est bank in the county, closed Monstockholders lost investments. A day by order of the board of directshort time later, Laughlin became ors. head of the Federal Trust company. A. J. Veigel, commissioner of banks

13. November 19, 1926 The Producers News Plentywood, MT
Article from The Producers News, November 19, 1926

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TWO MORE MINNESOTA BANKS FAIL Institution Where Two Bankers Were Found Shot Closes Doors - Three Day Run Shuts Security State. Two Becker county banks with total deposits of $930,000 were closed by the state banking department because of depleted reserve. The institutions are the Security State bank of Detroit Lakes and the Citizens State bank of Callaway, scene of the shooting of W. J. Norby and Frank Murphy, Becker county bankers recently. Failure of the two institutions marked the third bank failure in Becker county within a week. The First National bank of Detroit Lakes, largest bank in the county, closed Monday by order of the board of directors. A. J. Veigel, commissioner of banks announced at St. Paul that the deposits of the Security State bank at Detroit Lakes totaled $780,000 while those of the Callaway institution totalled $150,000. Officer in Two Banks H. S. Erickson, president of the Callaway bank, is also cashier of the Security State bank at Detroit Lakes. L. J. Norby, president of the Security bank, is a brother of W. J. Norby, former cashier of the closed Becker county bank of Lake Park, who was wounded in the Callaway shooting incident. Frank Murphy, the other wounded banker, is president of the Callaway institution. W. J. Norby is a stockholder in the Callaway institution. Closing of the Security State bank and the First National bank leaves Detroit Lakes with but one bankThe Detroit Lakes State bank. The remaining bank was preparing this morning to face a run as a result of the closing but money is on hand, business men say, to more than pay off all depositors. A three-day run on the Security State bank, said to have been precipitated by the closing of the First National bank. was responsible for the closing, O. L. Granvold, a state bank examiner, announced today. Closing of the two Detroit Lakes banks, inability to make collections, and depleted reserve, were given as causes of the Callaway failure. The immediateca use for the failure was the closing of the Detroit Lakes bank, it was said. Several years ago Callaway's two banks, the State bank and the Citizens State bank, each of which was capitalized at $10,000, consolidated and were capitalized at $25,000. The State bank was backed by the First National bank of Detroit Lakes and the Security State bank backed the Citizens State bank. When the consolidation was completed, each of the Detroit banks retained an interest in what became the Citizens State bank of Callaway.