American State Bank (Burlington, ND)

Episode Information

Episode UID
77040171483
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7704017 routing
Routing Number
77-0401
Start Date
July 1, 1923*
Location
Burlington, North Dakota (48.275, -101.429)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
95f078bd75072485

Response Measures

None

Description

Bank listed among closed banks that failed between July and Sept. 1923; receiver referenced in later articles.

Events (2)
1. July 1, 1923* Suspension
Cause Details
Listed as one of the banks that failed between July and Sept. 1923; specific trigger not stated in articles
Newspaper Excerpt
American State Bank, Burlington listed among closed banks which failed between July first and Sept. 30, 1923
Source
newspapers
2. March 9, 1925 Receivership
Newspaper Excerpt
J. P. Reeve, receiver of American State bank of Burlington, for the sole purpose of identifying the defendant in court as the individual named in the alleged indictment, rested.
Source
newspapers

Newspaper Articles (7)
1. March 24, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, March 24, 1921

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Hald, yes. com Motion carried. Moved by Com. Vandenoever seconded by Com. Spicher that the following resolution be accepted and approved and placed on file: RESOLUTION: WHEREAS, Ward County at the present time has deposited with the Bank of North Dakota in checking account the sum of $194,802.86 together with accrued interest thereon since the first of February, 1921, and WHEREAS, the Board of County Commissioners of Ward county have heretofore designated the banks of Ward County, North Dakota, as the present depositors of its funds, and WHEREAS, the Bank of North Dakota has refused to honor checks of the Treasurer of Ward County, North Dakota. legally drawn on its said checking account. and WHEREAS, the said Bank of North Dakota now has on redeposit in the here inafter mentioned banks of North Dakota, large sums of money, and WHEREAS, the Supreme Court of North Dakota has recently decided that garnishment proceedings may be brot against said Bank of North Dakota, and WHEREAS, the County Commissioners consider it for the best interest of Ward county to bring garnishment proceedings against the funds in the hands of the hereinafter mentioned banks belonging to the Bank of North Dakota. NOW. THEREFORE, BE IT RESOLVED. that the state's attorney of Ward County, North Dakota, be and hereby is instructed to forthwith commence action against the Bank of North Dakota for the sum of money now on deposit with the Bank of North Dakota on checking account belonging to Ward County, North Dakota, and garnishee the following banks. to-wilt: Scandinavian American Bank of Minot, N. D. Second National Bank of Minot. N D., The Union National Bank of Minot N. D., Citizens State Bank of Minot. N. D., First International Bank of Minot. N. D., American State Bank of Burlington, N. D., First State Bank of Burlington, N. D., Citizens State Bank of Douglas, N. D., The First State Bank of Ryder, N. D., First National Bank of Ryder, N. D., First State Bank of Sawyer, N. D., Sawyer State Bank of Sawyer, N. D. The Security State Bank of Deering, N. D., Deering State Bank of Deering, N. D., First State Bank of Surrey, N. D., and the First State Bank of Lone Tree, N. D. On roll call the members voted as follows: Com. Vandenoever, yes. Com. Toftner. yes. Com. Spicher, yes. Com. Haldi, yes. Com. Krantz, yes. Motion carried. Moved by Com. Haldi seconded by Com. Vandenoever that the Board adjourn until 9 a. m., March 16th. 1921. Motion carried. March 16th, 1921 The Board met as per adjournment at 9 a. m., on above date, with all members present and Com. Krantz in the chair. Moved by Com. Vandenoever seconded by Com. Spicher that the report of A. P. Scofield, sheriff of Ward county, for the month of January, for collection of delinquent personal property taxes for the year 1919. to the amount of $167.85. be accepted. approved and placed on file. Motion carried. Moved by Com. Vandenoever seconded by Com. Haldi that the road petition signed by R. L. Ladd and 70 others of Sauk Prairie and Greenbush Townships, for a change of the county road as follows: Beginning at the NW corner of Sec. 19, Twp. 160, Range 87, running east five miles to the NE corner of Sec. 23, thence south three miles to the SW corner of Sec. 36, Twp. 160, Range 87, thence south six miles to the SW corner of Sec. 36, Twp. 159, Range 87, thence two miles southwest down to Donnybrook, be accepted and approved, and placed on file and the chairman instructed to appoint viewers. Motion carried. The chairman appointed the following viewers: Commissioners Vandenoever, Spicher, Haldi and Krantz. Moved by Com. Spicher seconded by Com. Vandenoever that the following

2. March 9, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, March 9, 1925

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Minot, N. D., March 9. - Intimation that the preliminary hearing at which Jourgen Olson is resisting extradi- tion to Wisconsin may run into weeks, developed Saturday before U. S. Commissioner R. E. Hopkins, when the question of taking testi- mony was brought up. Olson is charged with using the mails to de- fraud, while serving as head of the American State bank of Burlington, now closed. It became apparent that attorneys for the defendant propose to make a thorough and complete record. One legal skirmish followed another, the defense taking blanket exception to every adverse ruling regarding the introduction of testimony. The government Saturday intro- duced a copy of the Wisconsin in- dictment and after calling J. P. Reeve, receiver of American State bank of Burlington, for the sole pur- pose of identifying the defendant in court as the individual named in the alleged indictment, rested. ### Resignation Introduced Motions for dismissal of the ex- tradition request carried the in- timation that the defense proposes to show that the defendant was in no way connected with the Burlington bank during the time referred to in

3. July 20, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, July 20, 1925

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CLOSED BANK DEPOSITORS TO GET DIVIDENDS More Than $100,000 Will Be Paid by State Guaranty Fund Commission READY IN THIRTY DAYS All Claims of Less Than Twelve Dollars to Be Settled in Full Dividends estimated in excess of $100,000 will be paid to depositors of 23 closed banks which failed between July first and Sept. 30, 1923, it was announced by the guaranty fund commission in a statement issued today. The guaranty fund commission at its recent session here voted dividends to be assigned to Class "B" institutions. The return will amount to ten per cent upon guaranteed deposits. Ready in 30 Days "The guaranty fund commission will be ready to commence consideration and payment upon these claims in about thirty days from date, as a number of the banks have not been completely audited, but will probably be finished by that time," it was stated by F. W. Cathro. Announcement will be made to the newspapers in the towns where the closed banks are situated or in county official papers shortly, and depositors will all be notified by the commission in excess of acceptance of their deposits and will be required to send in their Receiver's Certificates after notification, and a form of verification of claims in excess of $100, no special verification being required for claims of less than $100, under the rule of the commission. Notice to Depositors Persons whose claims have been held rejected as not eligible to guaranty will receive registered notice at their last known postoffice address. Claims against these banks, the commission announce, can be handled with more expedition and less trouble if persons having claims against the banks will simply await the time when notice is received by them. Inquiries made and letters written regarding whether or not their claims will be considered, simply serves to slow up the work of the commission. All claims of less than $12.00 will be paid in full and dividend checks will be drawn for amounts of not less than $10.00, excepting in cases where claims are less than that amount. By so doing, it is estimated that probably one-half of the claims included in Class "B" banks will be eliminated, thus saving the large amount of work and a considerable amount of money in administration cost and expense. Class "B" Banks Following banks are designated in Class "B" division: Farmers Bank of Fessenden; Hurdsfield State Bank; Hickson State Bank; Farmers & Merchants Bank, New Rockford; American State Bank, Sanish; Scand. American State Bank, Van Hook; Citizens State Bank, Tagus; Farmers State Bank, Sanish; Blaisdell State Bank; American State Bank, Burlington; Farmers Bank, Ray; Farmers Bank, Dunn Center; State Bank of Oriska; Farmers Bank, Hazen; Horace State Bank; First State Bank, Dawson; First State Bank, Dunn Center; Farmers & Merchants Bank, Leeds; Farmers State Bank, Neche; Farmers & Merchants Bank, Overly; First State Bank, Epping; Merchants State Bank, Werner; Bottineau County Bank, Bottineau.

4. August 17, 1926 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 17, 1926

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Counties Seek to Push Tax Claims Whether or not counties may collect taxes on closed banks as preferred claims or must take the same chances of getting their money as other creditors is the point at issue in two cases before Judge Charles M. Cooley, in charge of adjudicating matters with regard to closed banks, argued in district court here. The banks in question are the American State Bank of Burlington and the State Bank of Berthold, both in Ward county. The cases were prepared by Ward county authorities but were argued here by Tax Commissioner T. H. H. Thoresen, who entered the case because of his desire to have the question adjudicated. It has never been decided before, Thoresen said, and is of far-reaching importance, since it will determine the right of the state and various political subdivisions to collect taxes owing to them by banks at the time the institutions closed. In the two cases in question considerable amounts of delinquent taxes are involved. L. R. Baird, receiver of state banks,

5. August 22, 1927 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 22, 1927

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HAVE A SON A son was born Friday to Mr. and Mrs. Albert Chester of this city, SUPREME COURT From Burleigh County Ward county, a municipal corporation, and A. S. Spicher, as sheriff of Ward county, North Dakota, plaintiffs and appellants, vs. L. R. Baird, as receiver of the American State Bank of Burlington, North Dakota, defendant and respondent, and Ward county, a political corporation, and A. S. Spicher, as sheriff of Ward county, North Dakota, plaintiffs and appellants, vs. L. R. Baird, as receiver of the State Bank of Berthold, Berthold, North Dakota, defendant and respondent. Syllabus: 1. Section 2115, 1913 Compiled Laws, as amended by chapters 61, S. L. 1917 and 299, S. L. 1923, relating to the taxation of banks and loan and trust companies, contemplates a tax on shares of stock belonging to the stockholders and not a tax on capital stock or assets, the property of the corporation. 2. Paragraph 5 of section 2115, 1913 Compiled Laws, as amended by chapters 61, S. L. 1917 and 299, 1923, providing that any solvent bank or loan and trust company may, upon written request of its cashier or other officer, have the amount of the assessment against its stockholders contemplated by section 2115, as amended, assessed against the bank or loan and trust company in its corporate name and that the tax thereon may be paid as other expenses of the bank or loan and trust company are paid, was enacted for the convenience of the bank and its stockholders in paying the tax and in aid, the taxing authorities in collecting it, by enabling the bank to act as the voluntary agent of the stockholders for the purpose of paying the tax, and does not contemplate that the tax so assessed shall be a tax against the capital stock or assets of the corporation. 3. Section 2117, 1913 Compiled Laws, was enacted to afford a method and means whereby the collection of taxes assessed under section 2115 might be insured; and the lien for such taxes therein created against the dividends, the capital stock and the assets of the bank is a lien upon only the dividends, capital stock and assets belonging to the stockholders thereof, that is, upon the distributable assets of the bank. 4. Where a bank pursuant to the provisions of paragraph 5 of section 2115, 1913 Compiled Laws, amended, voluntarily assumés to act as the agent for its stockholders, for the purpose of paying their taxes, the obligation thereby arising to pay such taxes is limited to the distributable assets that it may hold belonging to the stockholders, and if the bank becomes insolvent and there are no distributable assets, collection of such taxes cannot be enforced against the receiver of the bank or out of the assets in his hands. Appeals from the district court of Burleigh county, Hon. Chas. M. Cooley, special judge, Two actions against the receiver of insolvent banking corporations to enforce the collection of taxes assessed no shares of stock in such corporations prior to their insolvency. The receiver demurred to the complaints. The demurrers were sustained and judgments of dismissal entered. Plaintiffs appealed. Affirmed in both cases. Opinion of the court by Nuessle, judge. T. H. Thoreson, tax commissioner, and C.J. Lynch of Bismarck, attorneys for appellants; H. E. Johnson, state's attorney of Ward county, B. A. Dickinson, assistant state's attorney of Ward county, and H. Bosard, all of Minot, of counsel for appellants. Zuger & Tillotson of Bismarck, attorneys for respóndent. From Grant County Cedar Rapids National Bank, a corporation, plaintiff and appellant, vs. A. H. Snoosy and Ed Sneozy, defendants and resopndents. Syllabus: 1. Where promissory notes ex-

6. May 2, 1928 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 2, 1928

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to buy the telephone exchange at Westhope from the Westhope Telephone, Light and Power company. Permission to dismantle two miles of rural telephone line in Seiverat township was granted to the Farmers Telephone company of Starkweather. L. R. Baird, as receiver of the American State Bank of Burlington, was authorized to sell the property of the Burlington Telephone company to the Carpio Telephone company. Certificates were granted to the Northern Light and Telephone company permitting it to furnish telephone service at Hannaford, Luverne, Dazey, Pillsbury, Milton, Osnabrook, Bathgate, Neche, Hamilton, Pisek, Fordville, Forest River, Inkster, Grano, Tolley and Fingal. Permission to construct and operate a new pole line between Crosby and the Montana state line was granted to the Northwestern Bell Telephone company.

7. September 26, 1931 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, September 26, 1931

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BANK STOCKHOLDERS ARE LIABLE FOR TAX Opinion Is Drawn by Assistant Attorney General for Dickey Treasurer Bank stock may be assessed in the name of a bank, but if the bank fails, the stockholders are liable for the tax, Charles Simon, assistant stat attorney general, ruled in an opinion furnished to H. J. Oberman, Dickey county treasurer at Ellendale. The opinion was given in reply to inquiries as to the assessment of bank stock in the case of the Farmers' State bank of Fullerton, which closed June 14, 1930. The bank, in the past, had paid the taxes on the shares of stock of the bank, acting as the agent of the stockholders. "It has been the practice in this state," the opinion said, "to have the bank stock assessed in the name of the bank for the convenience of the stockholders, but in order to have the stock assessed in the name of the bank, the bank must sign a written request for such assessment, but if the in nk fails, the stockholders are liable for the tax." Oberman advised -the attorney general that stockholders of the bank appear to be of the opinion that if an assessment is proper that the receiver of the closed bank should pay such tax. This question, Simon stated, has already been passed on by the state supreme court in the case of Ward county and A. S. Spicher, as sheriff of Ward county, against the receiver of the American State bank at Burlington. In this case the supreme court stated that the taxation of banks and loan and trust companies contemplates a tax on the shares of stock belonging to the stockholders and not a tax on capital stocks or assets.