Devils Lake inter-ocean. (Devils Lake, Ramsey Co., Dakota [N.D.]) 1884-1905, 1886-01-23
Tuesday M rning, when W. H. Grow
appeared for the prosecution and Messr.

appeared for the prosecution and Messr
Brooke and Mc1ntire for the defense
Defendant attorneys objected to th'
form Of the complaint, in that it was ir
Irregular. They explained to the courr
that the prosecution. under the law
must file an s'information" instead of /,
complaint. The Justice sustained tn.
objection, and Mr.. Corsett vas reteased
The prosecution then proceeded in til,
regular way, and the defendant was
again taken into custody on the required
information"
The case lasted all Thursday and until
4 in the afternoon Yesterday. The
main point endeavored to be gained b,
the prosecution was to show that Corset,
knew the bank was insolvent when ht
received deposits Saturday afternoon
This proposition was strongly combatted
BY Messrs. Brooke and MoIntire, who
argued that the bank being in charge OF
the sheriff and the vault closed the
court had no evidence that there was
insolvency. They also pointed out the
fact that Ferris, and in fact all the
partners, had property here. Tho cour,
took tho matter under advisement until
Z o'clock last evensnx, at which time he
decided that no evidence. had boen offer.
ed to pr"ve tho insolvency Of the bank;
that even the complaining witness, who
swore that the bank was insolvont came
into court aad testified that ho knew
nothing about the business Of the bank
Mr. Corsett was accordingly discharged.
SOME HISTORY.
II. G. Stones statement to Pioneer
Press reporter that he never had over
$500 Interest in tho Bank Of Devils Lake
is probably as near tho bullseye of tho
target Of truth as that individual was ever
known 10 como. 1t is the general belief
that tho original capital Of the bank was
not over $2500. lfMr. Stone put in $500,
as he says. Messrs. Ferris & Corsett must
have had $1,000 esc 1. However, there
may be some exaggeration in regard to
the original capital; it may not have
been rs much as $500. If the
community is to measure tho inter.
est Of Stone 4 Ferris by the
swathc they cut as Dakota capital.
lists. it would appear that Mr.. Stone had
misied tho bullseye entirely. People
who did not know them have looked
upon them as defendants of the Van.
dcrbits. When tho bank opened for
business, Stone e. Ferris were engaged
Ekss4ss'"df W rea a Sasss TAsh
Money poured into their pockets from
this source and hundreds Of people b..
came deposi,ors in the bank. In this
way their bank soon acquired capital
and the institution began to make loans
ut fancy rates Of interest. 1t seems that
the proprictors Of the bank soon became
extensive borrowers and in this way no
doubt Stone & Ferris we're enabled to pay
for the lumber in their buildings. It's
the belief that tho failure could not
have come at u more suspicious time;
that is to say, ut no time in the history
of the bank were the deposits so small
rs they were last Saturday. This was
due chiefly to tho fact that many Of the
depositors had become suspicious and
gradually withdrew their money, open
ing accounts with the First National
and tho North Shore bank. The
former institution was known to have
solid backing, being upheld by such
we'll known capitalists and 6nanciers as
Mr.. Hubert, James J. Hill, George E
Phillips, Major Strait and others, and
there was no reason to question the sol
vencv Of the North Shore.
stones cold-blooded statement that he
only had small interest in the bank i.
no surprise to those who are familiar
with his financial methods. He prides
himself upon his keon-ed1ed ability to
"down the other fellow" His history
IN Dakota has been that Of man who
constantly nurses an ambition to "dt
up" tho commercial world. He openly
gloats over the financial distress of hi.
rivals; he has grown grey-halred W cav
ing nets for his numerous foes-buildinl
snares for the unwary. His manage
ment Of the First National bank o.
Grand Forks has passed to history a,
one. Of the most peculiar" transaction
in the financial annals of that city, anG
is on par with his subsequent connec
ton With the Bank Of Devils Lake.
THAT $780, 900 MORTGAGE.
One OF the strange features Of the fail
ure is the disdovery that Stone morteag
ed all his property in this city, az we'll a.
his possessions in Grand Forks and Eas
Grand Forks, to Andrew Crawford, o
Chicago, Jan. ], 1885. The mortgage il
for $4,000. 1t was not presented for re-
cord in this county until the l7th ofSep
tember last. The fact that Stone owned
Il large amount Of property here was a
good argument in favor OF the eolvency
Of his bank. Drpo~itors lelt that there
was ample security in case Of failure
The prominent connection OF Stone &
| Eorr1a with 10 nnnortsnA az, ins4;Autio.,