The herald., 1893-05-30
A REGULAR FAMILY AFFAIR.
Doors of Two Banks Closed in
North Dakota.
Both Differed by One Man and His
Female Relatives.
Their Method of Doing Business Did
Not Meet the Approval of the
Comptroller OF Currency.
Other Failures.
By the Associated Press!

| BY the Associated Press.I
WAsHNeToE, May 29.-The National
bank Of North Dakota, at Fargo, N. D.,
and the First National bank Of Dakota,
at Lakota, N. D., were closed today on
orders issued by the comptroller of the
currency. Both were organized by E.
Ashley Mears, who was also organizer of
other national banks and many state
banks and other institutions. His plan,
gays the comptroller, appears to have
been to make loans to various lnstitu-
tions subscribing to the stock of the two
national banks in amounts which in
some cases exceeded the amount oi
stock subscribed to by them. The man
agement of the Fargo bank was ostensi-
bly, conducted by board of five direc-
tors, consisting most of the time of
e. Ashley Mears, Mrs. M. B. Mears,
Mrs. d. 9. Mears, and Miss l.. d..
Mears, respectively the wife, mother
and sister OF the president, and one
other director who WAS not a member OF
the Mears family. This bank owes the
treasurer OF the United States about
$4,000 for moneys expended by the
treasurer in the redemption OF circulat.
ing notes OF the bank coming into the
treasury for redemption, and which the
bank has failed to reimburse to the
treasurer. The comptroller says he Or
dered Examiners Brush and Diamond
to close these banks because of repeated
violations of the law on the part OF the
management and refusal to make aesese-
ments, thereby producing condition
rendering them insolvent and danger
ous as banks OF deposit.
FARGO, N. D., May 29.-The National
Bank OF North Dnkots, OF which Z. A.
Mears ia president, here was closed
today by national bank examiner un-
der orders fram the comptroller of the
currency. The First National bank OF
Lskota also closed. The examiner will
give out no statement of assets or liabil-
ities. Cashier Mears announced that
the total indebtedness does not exceed
100000, with assets five times that
amount. The bank officers state the
cause OF the trouble is Its large loan bus
iness, and the fact that it is impossible
at present to realize upon securities.
Individual deposits at the time of the
last statement, May 4, were only $3 SAB;
demand certificates, $4,452; time, GER
tificates, 14,226; national bank notes
outstanding, s45 900; notes and bills re-
discounted, $22, ia, and bills payable.
$4,000. At that time the bank only
had as cash on hand $40 in legal
tender notes and $40 in fractional cur
rency. The statement was not pub
lished in any of the daily papers, but in
the Weekly Republican, so few people
eaw it. Among the resources given
were: Loans and discounts, $164, ,573 !;
United States bonds, $50, 900; stock and
securities, $46 769; banking house and
furniture. $545l; real estate mortgag es
owned, s34.999. y4o.s
The closing of the bank will have no
effect upon the business OF the city or
county. II was merely a clearing house
for system of loan agencies. 1t had no
depositors to speak of in this city or
state. and what little money was there
will undoubtedly be paid in fall.