Farmers State Bank (Belfield, ND)

Episode Information

Episode UID
77088271451
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
7708827 routing
Routing Number
77-0882
Start Date
November 20, 1920
Location
Belfield, North Dakota (46.885, -103.200)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
54ad9600c5a1a8d5

Response Measures

None

Description

OCR shows variant 'Bolfield' in one article; referenced articles indicate closure and subsequent receivership.

Events (3)
1. November 20, 1920 Run
Cause
Local Shock
Cause Details
Depreciated collateral and farmers refusing to sell grain (the 'wheat situation') triggered depositor withdrawals and rumors
Measures
Invoked the 60-day clause of the state banking law (notice required before withdrawal)
Newspaper Excerpt
unauthenticated rumors were spread ... and on Friday a small run occurred. Saturday the run continued
Source
newspapers
2. November 22, 1920 Suspension
Cause
Local Shock
Cause Details
Depletion of reserves due to depreciated collateral and farmers withholding grain sales; commissioner closed the bank
Newspaper Excerpt
The Farmers' State bank of Belfield ... closed today
Source
newspapers
3. February 1, 1921 Receivership
Newspaper Excerpt
institution closed its doors on February 1, 1921. He continued in that capacity until April 1, 1922, when his removal was ordered and Laney was appointed in his stead.
Source
newspapers

Newspaper Articles (11)
1. November 23, 1920 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, November 23, 1920

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SAVINGS BANK IS CLOSED BECAUSE RESERVE TOO LOW Barre Savings Bank Closed by Commissioner OF DEPOSITS $1,536,000 Details Unknown but Probable That Overdue Notes to Granite Men Crippled Bank. Barre, Nov. 22. George B. Carpenter, bank commissioner at 2 o'clock this afternoon closed the Barre Savings Bank and Trust company, following a partial examination of the bank's financial standing Mr. Carpenter took over the bank's management as provided by the general laws. Early last week unauthenticated rumors were spread in Barre and vicinity concerning the condition of the bank and on Friday a small run occurred. Saturday the run continued until 10 o'clock when the demand was SO great that the bank officials invoked the 60-day clause of the state bank ing law requiring that a notice be given before a deposit could be withdrawn. Bank Commissioner Carpenter was notified and this morning commenced the investigation of the bank's finances. As soon as that is completed, a public statement will be made. While no figures were given out, it is rumored that the run amounted to $150, 003 The total resources of the bank are $2,223,582.82 as shown by the bank's report to Mr. Carpenter on September 8. The liabilities are: Capital paid in, $50,000; surplus from reserve, $67,000; savings deposits, $1,536,910.43 certificate of deposit, $96,781.37; commercial deposits, $295,324.37: treasurer's checks, $65,066 65; bills payable $112,500. Bismark, N. D. Nov. 22.-Three more banks were added today to the string of North Dakota financial institutions that have closed their doors in the past six day due to depletion of their reserves which officials say is due to failure of farmers to meet notes held by the banks. The Farmers' State bank of Belfield, the State Bank of Killdeer and the Security State bank at Columbus closed today, making nine since the tain first of the week.

2. November 24, 1920 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, November 24, 1920

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Article Text

NORTH DAKOTA BANKS CLOSE. Depreciated Collateral and Wheat Situmtion Given AH Reasons. Fargo, N. D. Nov. 24. - Nine banks have been closed in North Dakota during the last ten days as R esult of the "whent strike," three of the group of banks affected being closed yesterday. Depreciated collateral values, coupled with the refusal of the farmers to sell their grain or stock at existing prices, are the elements that have combined to force the suspension of business on the part of the banks. The three that closed their doore today are the First State Bank of Kill Deer, the Security State Bank of Columbus and the Farmers' State Bank of Bolfield. Prior to today the following banks had been closed: Bantry Bank at Bantry, Beach State at Bech, Security State Bank at New England, Farmers' State Bank at Havelock, the Tolley State Bank at Tolley and the First State Bank at Greene.

3. August 25, 1922 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, August 25, 1922

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LEAGUE BANKER CHARGED WITH WASTING FUNDS Adam Lefor, Receiver of Belfield Institution, is Plaintiff. Dickinson, N. D., Aug. 25.-Charging that Adam A. Lefor, while acting as receiver of the Farmers' State Bank of Belfield, violated his trust. juggled thousands of dollars in securities and has negligently, willfully. knowingly and fraudulently dissipated and squandered the assets of the blosed institution for the purpose of favoring himself and his friends, George Laney, present receiver of the bank. has brought ouit against Lefor in district court asking judgment for the whole amount dissipated or squandered by Lefor and that the latter be required to make full restitution for his unlawful acts." Lefor. ardent leaguer. alleged membed of the "inner circle" and whip for the organization leaders in Stark county on the west Slope, was appointed receiver of the bank by Bank Examiner O. E. Lofthus shortly after the institution closed its doors on February 1. 1921. He continued in that capacity until April 1: 1922. when his removal was ordered and Laney was appointed in his stead. About three weeks ago Lefor left Dickinson for an extended visit in Germany and Jugo-Slavia. Service of the complaint was made just as he stepped aboard the train. Included in the allegations made by Laney in the complaint is the charge that Lefor, who is also president of the Citizens' State Bank of Belfield. a competing institution. in

4. August 25, 1922 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, August 25, 1922

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Northwestern News violation of his trust as receiver and to the detriment and disadvantage of the creditors of the Farmers' State AGUE BANKER bank, took out of the assets of said bank certain bills receivable held by him as receiver. aggregating. without HARGED WITH interest accrued thereon. $3,388.84, or thereabouts; that all of such notes were valid obligations of the makers; that all of them were collectible and WASTING FUNDS worth the several face amounts shown thereon, together with interest from date thereof; that the said Lefor. as receiver. assigned and transferred Lefor, Receiver of such bills receivable to the Citizens' State bank at Belfield in exchange for Belfield Institution, is certain bills receivable of said bank, which were then and have been at all Plaintiff. times since uncollectible and worthless to the creditors of the insolvent bank Restitution Asked. lckinson, N. D., Aug. 25.-ChargIn concluding the charges the plainthat Adam A. Lefor, while acting tiff prays judgment: receiver of the Farmers' State That Lefor be required to account of Belfield, violated his trust. for all the transactions had by him thousands of dollars in securias receiver of the Farmers' State and has negligently, willfully. bank. wingly and fraudulently dissipated That the detriment caused by his squandered the assets of the said transactions to said bank and institution for the purpose of the amount to which the assets of himself and his friends, the bank have been squandered and Laney, present receiver of the dissipated by reason of his negligence has brought ouit against Lefor and conduct be ascertained and delistrict court asking judgment for termined. whole amount dissipated or That the defendant pay to the andered by Lefor and that the latplaintiff the amount dissipated or apbe required to make full restitupropriated by him as aforesaid. for his unlawful acts." That he be required to make resardent leaguer. alleged memtitution to the plaintiff wholly for his of the "inner circle" and whip said unlawful acts, his negligence and the organization leaders in Stark his misconduct. on the west Slope, was apThat the plaintiff have such other receiver of the bank by Bank relief as is equitable and preper. miner O. E. Lofthus shortly after It is expected that the case will be institution closed its doors on tried at the November term of the ruary 1. 1921. He continued in Stark county district court. C. L. capacity until April 1: 1922. Young of the law firm of Newton, his removal was ordered and Dullam & Young of Bismarck is atwas appointed in his stead. torney for Laney. three weeks ago Lefor left Lefor was-appointed receiver of the kinson for an extended visit in Farmers' State Bank by the league many and Jugo-Slavia. Service of administration over the protest of complaint was made just as he stockholders in the institution and aboard the train. continued in that capacity until the ncluded in the allegations made appointment of Laney was ordered by Laney in the complaint is the the court. that Lefer who to also presi-

5. August 26, 1922 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 26, 1922

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RECEIVER OF BANK IS SUED BY SUCCESSOR Adam Lefor of Stark County Is Accused by George Laney Dickinson, N. D., Aug. 26.-Charging that Adam A. Lefor, while acting as receiver of the Farmers State Bank of Belfield, violated his trust, juggled thousands of dollars in securities and has negligently, wilfully, knowing and fraudulently dissipated and squandered the assets of the closed institution for the purpose of favoring himself and his friends, George Laney, present receiver of the bank, has brought suit against Lefor in district court asking judgment for the whole amount dissipated or squandered by Lefor and that the latter be required to make full restitution for his unlawful acts. Lefor, ardent leaguer, member of the "inner circle" and whip for the organization leader in Stark county and on the west Slope, was apointed receiver of the bank by Bank Examiner O. E. Lofthus shortly after the institution closed its doors on February 1, 1921. He continued in that capacity until April 1, 1922, when his removal was ordered and Laney was appointed in his stead. About three weeks ago Lefor left Dickinson for an extended trip in Germany and Jugo-Slavia. Service of the complaint was made just as he stepped aboard the train. Transferred Paper Included in the allegations made by Laney in the complaint is the charge that Lefor, who is also president of the Citizens State Bank of Belfield, a "competing institution," in violation of his trust as receiver and to the detriment of disadvantage of the creditors of the Farmers State bank, took out of the assets of said bank certain bills receivable held by him as receiver, aggregating, without interest accrued thereon, $3,333.84, or thereabouts; that all of such notes were valid obligations of the makers; that all of them were collectible and worth the several face amounts shown thereon, together with interest from date thereof; that the said Lefor, as receiver, assigned and transferred such bills receivable to the Citizens State Bank of Belfield in exchange for certain bills receivable of said bank, which were then, and have been at all times since uncollectible and worthless to the creditors of the insolvent bank." Demands Accounting Laney further alleges that "Lefor had information that certain of the notes of the Farmers State bank exchanged as aforesaid, would be paid and that they were paid immediately after the exchange took place; that the Citizens State bank received, and has since retained the proceds and that the amount of collections made upon such notes are unknown to the and that Lefor has refused with the to plaintiff comply demand of and the plaintff's to restore the proceeds account fully for the assets so diverted."

6. May 16, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 16, 1923

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ACTION DISMISSED Dickinson, N.D., May 16-The action brought by the guaranty fund commission against Adam A. Lefor, as receiver of the Farmers State bank of Belfield, was dismissed by District Judge H. L. Berry when it came before him this week on a demurrer of the defense. The guaranty commission instituted the action about a year ago on behalf of George Laney who succeeded Mr. Lefor as receiver of the bank.

7. January 24, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 24, 1924

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# CHARGE WASTE IN HANDLING BELFIELD BANK Law Suit Is Started Against, Adam Lefor, Former Receiver of Bank SAYS LOSS $25,000 What is generally expected here to be the first of numerous legal actions growing out of the alleged extravagant method of handling closed banks by receivers named by the state banking board when it was controlled by Nonpartisan League officials has been filed in the Burleigh county district court against Adam Lefor, Dickinson banker and active in Nonpartisan League circles. The suit was instituted by L. R. Baird, general receiver of closed banks in the state, named under the law of the last legislature which placed the jurisdiction of all closed banks under the supreme court and district court of Burleigh county for the purpose of reducing expenses in administering their affairs. During the administration of many closed banks by Nonpartisan-appointed receivers many charges of wasteful management were made. The suit is against Lefor as former receiver of the Farmers State Bank of Belfield and S. A. Olsness, commissioner of insurance, and the state bonding fund which bonded him for $15,000. No specific sum is demanded, but an accounting in court is sought. The suit charges that Lefor caused losses approximating $25,000 in the

8. February 14, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, February 14, 1924

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BOND SUITS MAY FOLLOW State Bonding Fund Disapproves Claims Suits against the State 1 Bonding Fund on the part of Ransom and LaMoure counties may follow refusal of the bonding fund board to approve claims presented to it. The board disapproved the claim of Ransom county on the bonds of the county treasurer and county commissioners for $24,382.58 for money in a closed bank, disapproved the claim of Bottineau county on the treasurer of that county for $11,575.86 for the same reason and disapproved of the claim of L. R. Baird, general receiver, on the bond of Adam Lefor as receiver of the Farmers State Bank of Belfield for alleged misuse of funds. The board allowed the claim of LaMoure county of $5,000 on the bond of Robert E. Powers, former sheriff, and the claim of Larimore school district No. 44 of $5,000 on the bond of P. L. Arms as district treasurer.

9. January 3, 1925 The Forum Fargo, ND
Article from The Forum, January 3, 1925

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HIGH COURT DECIDES TWO BANK CASES (Continued From Page tion raised that legislative act fixed venue of all actions by against of closed said that legislation dealt only with acts involving of banking porations and "there to make any changes in the existing laws as regards the suits by or against the receivers of insolvent banking corporations. Lefor Loses Appeal The court in second a ing the appeal of Adam Lefor former receiver of the Farmers State bank of Belfield in suit him by L. R. Baird general receiver closed banks, for an counting held that of Baird as receiver was legal Lefor contended in lawsuit that since Baird member of the state senate of 1923, which enacted the law of banks, appointment was in violation of See tion 39 of which vides that no member of legislative assembly during term for which he was elect to any civil office which shall have been during term for which was elected nor shall any member receive any appointment the governor during the term for which was Baird's Appointment Valid Baird was appointed general celver of closed bangs after the 1923 session by District Judge M. Cooley, named by the supreme court to preside actions in Burleigh court The supreme court. holding Baird's appointment said that of appointment of receivers is Inheritent in courts of equity. and that there fore, the legislature created no new office The legislative intent the court found. was to limit, rather than conher of general to two The was left by the legis lature to the court ap. Justice Nuessle, appealing from Judge Cooley's decision, had alleged the 1923 act of was tutional supreme court held in the Mohall bank case that the act 1s valid.

10. January 3, 1925 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, January 3, 1925

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Appointment legal The court, in a second case, deciding the appeal of Adam A. Lefor, former receiver of the Farmers State bank of Belfield, in a suit instituted against him by L. R. Baird, general receiver of closed banks, for an accounting, held that appointment of Baird as receiver was legal. Lefor contended in the lawsuit that since Baird was a member of the state senate of 1923, which enacted the law providing for consolidation of receiverships of closed banks, Baird's appointment was in violation of section 39 of the constitution which provides that no member of a legislative assembly shall, during term for which he was elected, be appointed or elected to any civil office, which shall have been created during term for which he was elected, nor shall any member receive any civil appointment from the governor during the term for which he was elected.

11. January 10, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 10, 1925

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DECISION OF SUPREME COURT From Burleigh County L. R. Baird, as Receiver of the Farmers State Bank of Belfield, North Dakota, Plaintiff and Respondent. vs. Adam A. Lefor and State Bonding Fund and S. A. Olsness, as Commissioner of Insurance of the State of North Dakota, Defendants. Adam A. Lefor, Appellant. SYLLABUS: 1. An order overruling an objection to the jurisdiction of a judge to hear and determine a cause is not appealable under the provisions of Section 7841, C. L. 1913. 2. Chapter 137, S. L. 1923 is a constitutional enactment. State of North Dakota v. First State Bank of Jud et al followed and approved. 3. The designation of a district judge to hear and determine action for the liquidation of insolvent banking corporations under the provisions of Chapter 137, S. L. 1923, is not a designation to hear and determine actions brought by or against any receiver appointed by such judge pursuant to the provisions of said Chapter 137. Such actions stand in the same position as any other action insofar as the provisions of law relating to the venue thereof or the judges who shall sit in the trial of the same are concerned. 4. Chapter 137, S. L. 1923 provides a mode of procedure for the liquidation and winding up of insolvent banking corporations in accordance with well established equitable rules, and by providing for the appointment of a receiver by the court does not create a civil office within the meaning of that term as used in Section 39 of the Constitution. 5. A, receiver appointed under the provisions of Chapter 137, S. L. 1923 is not the holder of a civil office within the meaning of that term as used in Section 39 of the Constitution