Farmers & Merchants State Bank (Kenmare, ND)

Episode Information

Episode UID
77008371425
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7700837 routing
Routing Number
77-0083
Start Date
September 5, 1918
Location
Kenmare, North Dakota (48.675, -102.083)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2ade2c1fbe685399

Response Measures

None

Description

Bank was closed by the state examiner and placed in receivership; never reopened and assets later sold.

Events (5)
1. September 5, 1918 Suspension
Cause
Government Action
Cause Details
Closed by order of the State Bank Examiner due to inability to comply with regulations and Guaranty Fund requirements
Newspaper Excerpt
Farmers and Merchants Bank of this city closed its doors Wednesday morning under an order from the State Bank Examiner
Source
newspapers
2. October 3, 1918 Receivership
Newspaper Excerpt
M. T. Dalquist, a well known Minot business man has been appointed Receiver of the Farmers and Merchants Bank of Kenmare.
Source
newspapers
3. March 31, 1921 Receivership
Newspaper Excerpt
A. A. Swanson ... was today appointed receiver for the Farmers' and Merchants' bank of Kenmare. M. T. Dalquist ... having resigned.
Source
newspapers
4. August 27, 1921 Other
Newspaper Excerpt
M. T. Dalquist ... is directed to return $7,200 'wrongfully and unlawfully appropriated by him and converted to his own use out of funds belonging to the bank.'
Source
newspapers
5. November 18, 1922 Other
Newspaper Excerpt
The assets of the Farmers & Merchants State Bank ... were sold ... on order of the Court, for the consideration of $4600.00 in cash.
Source
newspapers

Newspaper Articles (11)
1. September 13, 1918 The Bowbells Tribune Bowbells, ND
Article from The Bowbells Tribune, September 13, 1918

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Article Text

KENMARE BANK CLOSED BY EXAMINER FarmThe Kenmare Journal: ers and Merchants Bank of this city closed its doors Wednesday morning under an order from the State Bank Examiner, and the institution is now under the control of that department, with Deputy L. P. McAneney of Devils Lake in charge. The state examiner has asked that a receiver be appointed at once and this will be done as soon as possible. The appointment will be made by Judge Leighton of the district court. The Journal learns that the bank has been in financial difficulties for some time, but that it was believed a good crop would have again placed it on its feet. With the partial fanure throughout all this territory the men in charge could see no way for the institution to work out and asked the state bank examiner to take charge. Just how the bank will pay out is not known at this time, and probably won't be for some time. As soon as a receiver is named and he has had lime to go thoroughly through the company's business, more will be available on that point. -W S. S. -

2. October 3, 1918 The Ward County Independent Minot, ND
Article from The Ward County Independent, October 3, 1918

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Article Text

DALQUIST RECEIVER OF KENMARE BANK State Holds Hearing in Case Against Defunct Farmers and Merchants Bank of Kenmare Today A hearing in case of the defunct Farmers and Merchants Bank of Kenmare, was held before Judge Leighton in District Court this afternoon, at 2 o'clock. The action was brot by Attorney General Langer, representing the state and States Attorney Herigstad, representing Ward County. M. T. Dalquist, a well known Minot business man has been appointed Receiver. Mr. Dalquist has been at the head of the well known Security Mortgage Loan Co. of this city, for a good many years, and is exceptionally well qualified for the position of Receiver. The action was brot against the following officers and directors of the bank: J. L. Wemark, president; H. T. Sands, cashier; H. O. Lincoln, J. H. Kenny, E. W. Swanson, O. B. Sands, and H. T. Nelson. Ward county is interested by reason of the $20,000 deposits in the institution at the time it was declared insolvent. The county is protected fully, however, by bonds, it is believed. The bondsmen are said to be responsible financially for this amount. The affairs of the bank are said to be in bad shape. The directors have been served with notice not to transact any further business for the institution. Many had paid money to the bank to be applied on their Third Liberty e Loan bonds, but it is believed that the government will see that they are d fully protected. is

3. October 7, 1918 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, October 7, 1918

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Article Text

at a church council held at Berthold. Rev. H. Stickney, of Fargo, participated. M. T. Dalquist, of Minot, has been appointed receiver of the Farmers' & Merchants' Bank of Kenmare. Carl Fjermstad, residing near Minnewaukan, was killed in a runaway accident. Mrs. George Yonkers of Max, Mrs. J. L Greenan of Regan, and the 4-year-old son of Mrs. Yonkers, were injured in an automobile accident near Wilton when the car turned over on breaking a front wheel. Elmer Adams, of Lemmon, pleaded guilty to importing liquor into North Dakota in the Slope county district court.

4. October 11, 1918 The Bowbells Tribune Bowbells, ND
Article from The Bowbells Tribune, October 11, 1918

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Article Text

DAHLQUIST NAMED REREIVER FOR BANK Minot, N. D., Oct. 10.-M. T. Dalquist has been named receiver of the Farmers and Merchants State bank at Kenmare. The appointment was made yesterday at a hering when State's Attorney O. B. Herigstad appeared in behalf of the state. Mr. Dalquist is manager of the Security Mortgage Loan company and is an experienced banker. His bond has been filed, and at the end of 30 days he will in all probability be the permanent receiver of the bank. w

5. April 24, 1919 The Ward County Independent Minot, ND
Article from The Ward County Independent, April 24, 1919

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Article Text

# Wemark's Property Held in Trust. J. L. Wemark, of Kenmare, former president of the Farmers and Merchants State bank, which is in the hands of M. T. Dalquist as Trustee, has deeded valuable property to be held in trust, until such time as the affairs of the bank may be settled. The trustees for the Wemark property are David Clark, Jr., and Jourgen Olson, the latter a creditor who had $18,000 on deposit at the time the bank went into the Receiver's hands. Ward county has $20,000 in sinking funds on deposit in the bank at the time it failed. Before placing the Wemark property in trust, it was necessary for the county commissioners to adopt a resolution favorable to this, which was done Monday. Mr. Dalquist believes that the bank will pay out 100 cents on the dollar if we get a good crop this year. Mr. Wemark, who is a well known Kenmare

6. May 29, 1919 The Ward County Independent Minot, ND
Article from The Ward County Independent, May 29, 1919

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H. T. SANDS ARRESTED ON TWO CHARGES Former Kenmare Banker Furnishes $3,000 Bail-Charged With Receiving Money After Bank Was Insolvent and Making False Report. H. T. Sands, former vice president of the Farmers and Merchants Bank of Kenmare, now in the hands of a receiver, was placed under arrest at Wyndmere, N. D., Friday, where he has been operating a lumber yard for the past year, under two charges: 1-Receiving money after he knew that the bank was insolvent. 2-Swearing to a false report to the state banking department. The complaint was issued out of the office of States Attorney Herigstad. Sands appeared before Justice A. B. Dill Monday. gave bonds for $3,000, and his preliminary hearing will be held later. Sands has employed Fisk & Murphy to represent him and will fight the case. He returned to Wyndmere Monday night. The States Attorney alleges that the bank department had ordered Sands to take out several thousand dollars worth of poor paper out of the bank, which he did, later putting the paper back in the bank, and swearing falsely in his report. The bank failed Sept. 5, 1918, and has been in the hands of M. T. Dalquist, as receiver. Mr. Dalquist believes that with good. crops this year, the bank will come near paying out dollar for dollar. The bank has 26 quarters in crop and if the crops are good, many of the notes given to the bank will be collected the coming fall. Sands became vice president after the resignation of A. G. Engdahl, who shot and killed himself at Kenmare last Friday night, as the result of an accident while cleaning his revolver, according to a statement made by his friends.

7. June 6, 1919 The Bowbells Tribune Bowbells, ND
Article from The Bowbells Tribune, June 6, 1919

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SANOS ARRESTED ON TWO CHARGES Minot, N. D., Juie 5-H. T. Sands, former vice president of the Farmers and Merchants Bank of Kenmare, now in the hands of a receiver, was placed under arrest at Wyndmere, N. D., Friday, where he has been operating a lumber yard for the past year, under two

8. March 31, 1921 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, March 31, 1921

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TOLLEY MAN NAMED RECEIVER FOR CLOSED BANK AT KENMARE Tolley, N. D., March 31.-A. A. Swanson, former Tolley banker and now deputy bank examiner. was today appointed receiver for the Farmers' and Merchants' bank of Ken, mare. M. T. Dalquist of Minot, who has served as receiver since the institution closed some two years ago, having resigned. The appointment was made by Judge John C. Lowe. The Equitable Audit Co., recently concluded an audit of the defunct bank which was made on order of the state bank examiner. Mr. Swanson was cashier of the Tollev State bank. now closed. for eight years. A: M. Fruh was president of the Tolley institution. Mr. Swanson has been deputy bank examiner since the Fruh bank closed and at present is in Williston. He will assume his duties at Kenmare Monday, April 4. He is well acquainted in the Kenmare district. Mr. Dalquist has made no announcement concerning his plans for the future.

9. August 27, 1921 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 27, 1921

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MUST RETURN MONEY. Minot, N. D., Aug. 27.-M. - T. Dahlquist, former receiver of the Farmers and Merchants State bank of Kenmare, is directed to return $7,200 "wrongfully and unlawfully appropriated by him and converted to his own use out of funds belonging to the mank," according to a decision rendered yesterday by District Judge John C. Lowe in the matter of the final hearing on the report of Dahlquist as receiver. He resigned as receiver in March, 1921, after having served since October, 1918.

10. September 1, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, September 1, 1921

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Dalquist Ordered to Return $7,200 to Kenmare Bank The final report and account of M. T. Dalquist, as receiver of the Farmers and Merchants Bank of Kenmare was heard before Judge J. C. Lowe August 12. It was shown that Mr. Dalquist had collected for his services during the time he was receiver, from October 1, 1918, until he resigned in March, 1921, $16,220. His compensation fixed by agreement with Jim Waters, who was then state bank examiner, and K. E. Leighton, who was then district judge, was to be not more than $300 a month, it is claimed, and it is alleged he should not have collected for services more than $9,000. He is ordered by Judge Lowe to return to the present receiver of the bank $7,200 and interest from December 15, 1920. Mr. Dalquist or his bonding company, the American Bonding and Casualty Co. of Sioux City, Ia., is ordered to pay the amount.

11. December 21, 1922 The Ward County Independent Minot, ND
Article from The Ward County Independent, December 21, 1922

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ASSETS OF KENMARE BANK SOLD FOR ONLY $4,600.00 Kenmare, Dec. 15.-There have been numerous inquiries regarding the sale of the assets of the Farmers & Merchants State Bank, Kenmare, N. D,, which closed Sept. 5, 1918, and we have taken the trouble to secure a statement which will give the people of this community some idea of the situation and what the sale means to the creditors of the defunct bank. The assets of the Farmers & Merchants State Bank of Kenmare, N. D., were sold to J. H. Sinclair and on order for the Nov. W. F. 18, Churchill 1922, of consideration the for Court, the of $4600.00 in cash. A bid assets in that amount by Messrs. Sinclair and Churchill was received early in November by the Receiver who then made application to the Court to sell. The hearing upon the petition to sell was set for Nov. 18, at Williston and all the creditors were notified of same. No one objected to the sale or made a higher bid and the assets were orderd sold and transferred in accordance with the bid as tendered by Messrs. Sinclair and Churchill. The conditions of the bid have been complied with and the purchasers have taken possession of the assets with James H. Sinclair Jr., in charge of same with office in the bank building. The same included all the assets excepting causes of action against the stockholders of the bank on their double liability and an act on against the former Receiver, M. T. Dalquist. There is pending at this time numerous actions against the receiver on claims where preference is asked and no distribution of the remaining funds can be made until such matters are finally disposed of. The Bank was closed by the State Banking Department on Sept. 5, 1918, because of its inability to comply with regulations of the Department and of the Guaranty Fund Commission which was nécessary at the time to enable it to be accepted under the Guaranty Act. The deposits in this bank were therefore not guaranteed. M. T. Dalquist was appointed Receiver and took charge shortly after. Mr. Dalquist resigned in March, 1921, and A. A. Swanson then appointed, and remaining in charge to this time. During the time Mr. Dalquist was in charge he maintained that if the ereditors would only give him sufficient time he would pay out 100 cents on the dollar. Shortly after Mr. Swanson took charge and, after he had time to thoroughly investigate the different items of assets, he reported to the Court that little, if anything, would be paid to general creditors regardless of whether the assets be immediately disposed of by bids or the receivership continued indefinitely. And the accuracy of that report has been borne out by subsequent facts. of hope the creditors of the regeneral There is little any bank that will The ceive a dividend of any kind. total number of claims against the receivership amount to approximately $300,000.00 which will be almost a total loss. Thus, through mismanagement, poor paper, and because of poor crops, as near a total bank loss has occurred as has ever been recorded in the State.