The Bottineau pioneer. (Bottineau, N.D.) 1885-1895, 1892-01-30

Another maihod, il that as told BY him-
self in a circular letter dated April, 9th
1891 in which speaking or the numerous
failures Of mortgage loan companies in
Kansas and other states, necessarily Great,
ing a distrust in such securities, seeking
to divert capital his why, as one Of the
ind tcements to invest in securities which
AZ President Of the Bank Of Minot he knew
so we'll how to present, he says 'that it is
impossible for the bank Of Minot to fail
we'll, it came pretty near ii few weeks
ago
He further says:
1t las nc deposits or other liabilities
that call for payment or demand. Its
Certificates OF Deposit are payable three
years from date of issue. 1t conducts its
business through loo II banks scattered owe,
the State Of North DAKOTA in which ci,he,
itself or its President owns Stock and
controls so that it avoids irresponsible
agents.
These local banks send me three reports
daily, one Of which is q full copy Of their
balance book, showing the exact status oil
each account, another gives n full resume
of business saying what time each person
arrives in ,he morning, time Of day books
are balanced, to whom loans are made, the
amount and what security is taken. how
many notes are collected and indeed a
full. account of nll the business transacted
in the, Bank during the day.
Besides this eacI, person sends me wi At
=. ~. - r. no~ H-,k pa,>>,t -, ,vlioh
is put down exactly what they are engaged
in every fifteen minutes during the day.
We ap 7rchcnd that: the eastern stock
holders would. prefer daily reports from
the clerks of what +. Ashleyeis doing with
their money, rather th"n wasting their
time during eleven hours of the day in
making Is minute reports to E. a. NJ. Of
what they are doing.
We trust also that the Public Examiners
win not be bamhoozlel by these or any
such re oorts,aas was the reverend f. s.
Fitz of South Seaville,. N. J. who went out
to Fargo on Mcars invitation, at the ex-
pense Of some of his numerous companies
and afterwards went to Minot where the
philanthropic and christian skin-flint
showed him the, little bri tx church back of
the barn called by courtesy q bank, which
he said he gave. to the Baptist Church,
whereas it WAS covered with a mortgage
for more than it cost.
Bank Of Minot.
A little hittory of one of Mears' banks
is not inappropriate in view of the recent
strain upon 1t. 1t will also serve as an
illustration Of the way in which Mears
other wild cat institutions are conducted
mud may be Of some use in aiding an ex,
animation into their condition.
Mears organized thi. bank with author.
ICED capital Of 100000, lie sold a few
shares to the clerks and took balance Of
stock at $l6.331 per shares making with
amour; sold to others the paid in capital Of
$lG,9lO. 90. Then he commenced adver
Using as Bank !!ef Minot and selling the
stock, he at all times. taking profit owe,
Sigh that was raid to the bank and also
craving dividends OH this stock out o
money paid in by eastern men and issue,
Certificates of Deposit taking in consider
able money, which he loaned out at heavy
bonus and took mortgages and sold mort
cages to Eastern people. Now what valu'
was the Sl64 that lie paid to the Bank o
Minot or turned over to them-probably
lot Of these second mortgages and claim
over and above amount Of money real,
loaned. He had no money when he cam
to Dakota-.
Last year he advertised, Preferred an
Common stock Of Bank Of Minot-an'
got in some $4,000 as we are informed
Yon can imagine what the original stock
worth, paying 10 per cent divilerd lis on
Of money received by sale of new stoc
and a surplus imaginary. He. canne
reorganize this bank under state laws s
he has a Minot Bank. His f~avorite wa
is to put in his note Tor stock in thes
hnnks-An things drift to the Guaranty
Insurance aud Title ms. Cos, rs these
absorb all bonuses.-Each has it's use.
X
The following is one Of the little joke,
that the great financial thimble-rigger en-
ploys to take in the dupes and beat IL
stock holders and investors, thinking
evade the usury law thereby.
Whereas, I have this day made appl
cation to the Mortgage Bank and Inves
ment Company, for a loan of 5
Dollars. with interest ut twelve per Gel
per annum. To further secure the Pa,
ment of said sum l hereby authorize II
said Bank to procure II Policy or write
Guaranty of the Guaraa tee Company
North Dakota, for 5 Dollars, guara
teeing the payment Of said sum-, and
authorize the said Bank to pay the Guara
toe Co npany for said Guaranty 5
and to withhold same from the propos'
loan when completed.
Dated Dakota, lS9.