Kimball State Bank (Kimball, SD)

Episode Information

Episode UID
78019771561
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7801977 routing
Routing Number
78-0197
Start Date
January 1, 1930*
Location
Kimball, South Dakota (43.747, -98.958)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e371bece5e1e2951

Response Measures

None

Description

The bank is described as suspended and closed in early 1931 following a scandal involving the former state superintendent of banks.

Events (2)
1. January 1, 1930* Suspension
Cause
Bank Specific Adverse Info
Cause Details
The bank was involved in a scandal where the former state superintendent of banks, Fred R. Smith, deposited excessive funds from defunct banks into it despite its weak condition.
Newspaper Excerpt
the closed Kimball State bank... funds from 57 defunct banks had been on deposit when it closed
Source
newspapers
2. February 11, 1931 Other
Newspaper Excerpt
Mr. Sharpe also discussed the closed Kimball State bank... he alleged abnormal deposits in the closed bank of its size and of its capital
Source
newspapers

Newspaper Articles (3)
1. February 11, 1931 Argus-Leader Sioux Falls, SD

Article Text

REPORT NOT EXPECTED Former Bank Department Superintendent Charged With Juggling Accounts Pierre. Feb. that closed depositors throughout South Dakota will more than as result of deposits of funds by Fred R. Smith. former state superintendent of banks. in the Farmers State bank at Platte were made today by Attorney General M. Q. Sharpe. In his third banking department report. attorney general told deposits of closed bank in banks at Hoven and Kimball, that "at least through the policy of weak The report. placed before the legislature this morning. that Farmers bank which by utterly and had been so for at least three Asks Funds for Probe Mr. under fire last charged huge the Platte report said that closed bank and deposit had the Mr that the $5,000 for the that his charges phasize of corrective general legislation should be provided to certain the utdegree of and the of in the vicinity closed bank through liquidation which the funds Unexpected Today's the filing generally report to Mr. Sharpe's report last March on the of the authorized by the 1929 of Attached report was totaling 201 closed accounts on deposit at Platte bank it closed last the Hoven State bank. owned closed last year by Thomas president Dakota the attorney there had been of banks' funds. He list of Mr. Sharpe also discussed the closed Kimball State at near he abnormal closed bank of its and of its capital He funds from 57 defunct banks had on deposit when closed In again denouncing the policies Mr. Smith banking suthe attorney general alleged required Smith on corhelp the condition of the Platte Tells Notes He described arbitrary expanalleged have Smith with Farmers Credit corporation of which ormer listed the principal officer The the port declared, used in juggling sums time certificates of deand funds posits, accounts The went into detail in deand said that when Platte bank among other excessive loans' were totaling made in Smith's name on the Farmers' Agricultural Credit Sharpe said that Smith had put closed bank accounts the Farmers State the first the abnormal bank into Sharpe bank have four or five years ago. Denounces Bulow The attorney former Bulow for failing banking charged Smith stration and asked his removal. said: Sharpe Had Governor Bulow at the time this report filed with with any firmness at or had he given any support the recommendations of report, entire saved to the depositor closed banks Even by the report said that more than would be lost at the Platte In his introduction, Sharpe said: due to many safe and efficient bankers South Dakota report that recent events that the bank at Pierre and the of department never of wishes and policies South bankers whole. has plainly shown to us that the true conditions banking partment handling closed funds the bankers of this state as whole and most of them had no of the was being by the banks nor by small group lobby Pierre claimed to represent the banking business. (Continued on page 2; column 5)

2. February 12, 1931 The Daily Plainsman Huron, SD

Article Text

Bill Is Introduced Asking Immediate Funds For Inquiry Governor Green Backing MoveTo Secure Thorough ment Audit of Smith's Banking Transactions Once. Feb. for furthclosed bank fund deinvestigation Fred Smith, former state posits by banks, were under superintendent with backing of Governor way today Green. General M. Sharpe's Attorney charges yesterday that least public funds would be lost in three banks through Smith's policies, and the former's for audit. brought quick action from the legislature. Carrying an emergency clause which would make effective bill powers the and $5,000 attorney general for that annual introduced both houses by the Passage of the bill. and action by the provide funds put Sharpe in make the proposed audit soon legislative authorization given. The attorney audit of the closed general asked Farmers State Bank of Platte, owned by Smith's relatives. which reported $1,000,000 closed bank more than funds would be lost to depositors. Wants Department Audit The other banks in which Smith of depositing large amounts accused closed bank funds the Hoven State Bank and the Kimball State Bank, both suspended. Governor Green said he would support Sharpe's request for an audit the bank" Platte. The executive would an audit also said approve the State Banking department order that Ruden Bryant, who placed Smith banking superintendent, could "start with clean state." funds, the bill preBesides providing sonted yesterday set up machinery for investigations by the attorney eral when requested by either both legislative houses. Under the the general could all records of state subpoena and compel testimony Mr. who informed the state court before his month that closed bank deosits will lost, did comment today on Sharpe's latest charges. Legislative ing committees meetings Sharpe's report was filed but made statements the attorney for "corrective Jegisla- New Measures Up A few hours after Sharpe's report was filed, however, three banking measures introduced the senate. One would prevent deposit of large surhs closed bank money in single deposisuch Smith was accused of making the Farmers State Bank Platte. Introduced scnate banking mittee, the bill would limit the amount closed bank funds which the superintendent of banks deposit any one institution the combined capital and surplus of the depository. Frei Wagner presented bill limit loans by state banks to any dividual corporation to per the bank's capital and surplus. The limit per cent. other was bill permit banks to pledge their assets to protect school funds. banking bill passed by the senate Tuesday, upon unfavorably yesterday by the house banking committee. was the make wilful and malicious derogatory banks or trust companies felony.

3. February 12, 1931 Argus-Leader Sioux Falls, SD

Article Text

FUND, APPROVAL OF INVESTIGATION GIVEN BY SOLONS Sharpe's Charges of Big Loss in Public Funds Brings Quick Action AUDIT WILL BE PUSHED Attorney General Will Be Able to Make Check Following Legislation Pierre, Feb. for further of closed bank fund deposits by Fred R. Smith. former state superintendent banks, were under way today with of Governor Warren E. Green. Attorney General M. Q. Sharpe's charges yesterday that at in public funds would be lost in three banks through Smith's policies. the former's recommendation an brought quick the legislature. an which effective mediately investipowers of the attorney and annual for introduced in houses the joint Platte Bank Inquiry Passage bill, and action by the to provide funds, put Sharpe in position to make proposed as soon as legislative ization given. The attorney eral an audit of Farmers Platte, owned by Smith's he ported more than closed bank funds would be lost to deposThe other banks in which Smith of depositing amounts bank the Hoven State bank and the KimState said he support request for audit of the state department in order that Ruden. who replaced Smith as superintendent, could "start a clean Besides providing the bill presented yesterday would machinery for investigations by attorney either both houses. Under measure, attorney general examine all records of state departments, subpoena witSmith Silent who last month that no closed bank posits not comment today Sharpe's latest charges. Legislative after report filed but made no statements on the attorney general's for few hours after Sharpe's port filed. three ing were introduced in One would deposit of bank money in single Smith accused of making the Farmers State bank Platte. Introduced the senate bankthe bill limit closed funds which the can in any institution the combined and surplus the New depository Asked Frei presented bill to limit loans by banks any corporation to percent the bank's surplus. The present 20 per- other banking measure was bill to permit banks to pledge their assets to protect funds. Another banking passed by the senate Tuesday. was upon yesterday the banking committee the measure to make willful and gossip derogatory banks or trust companies felony.