The Bottineau pioneer. (Bottineau, N.D.) 1885-1895, 1892-01-30
holders like this style Of diversion Of their
money into the pockets Of E. Ashley

holders like this style Of diversion Of their
money into the pockets Of E. Ashley
Another method, il that As told by him
self in a cir cular letter dated April, 9th
1891 in which speaking Of the numerous
failures Of mortgage loan companies in
Kansas and other states, necessarily Great.
ing . distrust in such securities, seeking
to divert capital HE way, as one Of the
ind ncsments to invest in securities which
~ President Of the Bank Of Minot he know
80 well how to present, he says "that il il
impossible for the bank Of Minot to fair'
we'll, II cams pretty Gear it, few weeks
ago.
He further says:
1t has no deposits Or other liabilities
that call for payment on demand. lts
Certificates Of Deposit are payable three
years from date OF issue. 1t conducts its
business through local banks scattered over
the State Of North Daxota in which either
itself or ito President owns Stock and
controls 20 that 1t avoids irresponsible
agents.
These local banks send mo three reports
daily, one Of which il = full copy Of their
balance book, showing the exact status OF
each account, another gives = full resume
Of business saying what time each person
arrives in the morning, time Of day books
are balanced, TO whom loans are made, the
amount aud what security is taken, how
many notes are collected and indeed a
full account Of all the business transacted
in the Bank during the day. -,
Besides this each person ,ends me what
is put down exactly what they are engaged
in every fifteen minutes during the day.
W. apprehend that the eastern stock
holders would prefer daily reports from
the olsrks..of what E. Ashley is doing with
their money, rather than wasting their
time during eleven hours of the day i.
making Is minute reports to E. A. NJ. Of
what they arc doing.
We trust also that the Public Examiners
will not Be bamboozled by these or any
such reports, - vas the Reverend E. 8.
Fits Of South Seaville, N. J. who went out
to Fargo on Mesrs invitation, at the sx-
penss Of oms Of HE numerous companies
and afterwards % to Minot whore the
ph~ilanthropic aud christian skin-fint
showed him the little brick church back @,
the barn called by courtesy 4 bank, which
he said hs gave to tho Baptist Church,
whereas it was covered with . mortgage
for more than it cost.
Bank Of Minot.
A little history Of one Of Mears' bank.
il not inappropriate in view Of the recent
strain upon 1t. 1t will also serve ~ ~
illustration of tho way in which Mears
other wild cat institutions are conducted
and may be Of some use in aiding an OK
animation into their condition.
Mears organized this bsnk with author
lied capital Of 100000, He sold = fe~
shares to the clerks and took balance OF
stock 1t $l6.s33 per share making with
amount sold to others the paid in capital Of
$l6,9lO. 90. Then he commenced sdver.
tising % Bank Of Minot aud selling the
stock, he 1t sll times taking profit owe,
$l6a that was Isid to the bank and also
drawing dividends on this stock out o,
money paid in by eastern men and iss usd
Certificates Of Deposit taking in consider.
able money, which be loaned out at heavy
bonus and took mortgages and sold mort
cages to Eas tern people. Now what value
the $le3afthat Re paid to the Bank Of
Minot or turned over to them-probab'y .
lot Of these second mort cages and claims
over and above amount Of money really
loaned. He had no money when he came
to Dakota.
Last year he advertised, Preferred and
Common stock Of Bank Of Miaot-and
got in some $50, 900 ~ We are informed.
You can imagine what the original stock 10
worth, paying 10 per cent dividends out
Of money received by sale Of new stock
land . surplus imaginary. He cannot
~reorganiss this bank under state laws 80
he has = Minot Bank. His favorite way
IL to put in his note Tor stock in these
banks-All things drift to the Guaranty
Insurance and Title ms. Cos, al these 8
absorb all bonusss.-Each he's it's use.
X II y .
The following is N Of the little joker.
tina. the great financial thimbls-rigger em.
ploys to take in tho dupes and beat the
stock holders ani investors. thinking to
evade the usury law thsrsby.
Whereas, I have this day made appli.
cation to the Mortgage Bank and Invest.
ment Company. for . loan Of r..
Dollars. with interest At twelve per cen,
per snnum. To further secure tho pay
meus Of said sum, l hereby authorize tn,
said Bank to procure . Policy or written
Guaranty Of the Guarantee Company o
North Dakota, for 5 Dollars, guarsn
tssing the payment cf ssid sum, and
authorize the said Bank to pay the Gusran
tse Co npany for said Guaranty
and to withhold same from tho proposed
loan when completed.
Dated Dakota, l89.
!One-man management has bssn the caus'
Of Gil the failurss Of Banking institution
g L-EF-FFEEEEs$ 80 F-=E- -t""f