Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1893-12-28
Some of the Transactions En-
countered by the Receiver
of the Lloyd's Bank.
Securities that Shrink in Value
When Exposed to Pubic
Sale.
How the Bank Deposit0rs Be-
came Investors in WORTH
less Notes.
The Opera House Mortgages
Forecloseda and a Rec ceiVer
Appointed.

Appointed.
Receiver johnson has closed up deal
which indicates to the public the possl-
BILE outcome of portion, at least. of the
securities held in the Lloyd's bank. The
Continental National bank of Chicago,
loaned, largely through personal ac-
quaintance with William Lloyd, the sum
of $4,000 to the Lloyd's National bank
of jamestown, for thirty days. For this
loan an iron clad note was given which
permitted the Continental bank to sell
to itself, or others, with or without ad'
vertisement, the securities which were
given for the loan if not paid. These
securities were in the amount OF Sl5,OOO
and consisted of the following paper,
given bv farmers of this county, with but
one exception: J. B. Smith, note for
$500; Adam and G. e. Walters, note
for S2.2O512; j. 3. Default. a note for
S632921; G. E. Woodward, note for
S3,6GS.46, and 0. H. Holt, a note for
S27925, the last named having been a
clerk in the bank.
On December 5th, these securities
we're sold at Chicago by the Continental
bank. at the front door of the court
house IN Cook county, and realized upon
as follows: The J. B. Smith note sold for
Sl,3O8, while all the other notes included
in the collateral securities only brought
at this auction sale sl55. Previous to
this sale there had been realized S24O by
the sale OF small bunch OF sheep held
to secure the Walters note, so that the
entire amount realized by the Continen-
tai National bank out of this $4,000 OF
alleged securities is sl,7O3.
This 81, ,7O3 has been credited upon the
note made by Lloyd's National bank and
the remainder OF the claim, beng with
interest added over $500, has been
proved up as claim against the bank
and will participate in any dividends
paid by tie receiver. AS it is not ex-
pected that over IS or 40 per cent IN all
will be obtained from this source it can
be seen that the loss to the Continental
bank will be quite considerable sum.
In the securities above named is in
cluded note of Mr.. J. B. DeNaults.
An investigation of this item OF alleged
assets opens up tempting vista OF
promise for an enterprlsing banker that
has not been generally worked in this
country, and if worked has been done so
clandestinely that the public have not
been permitted to enjoy the profits offer
edit appears that the Netherlands Land
Co. agreed to sell to VIM. Lloyd section
17-141.63 for $4,000, an advance payment
having been made by Mr.. Lloyd OF $500,
and an agreement entered into for the
payment of the balance OF the purchase
money in deferred annual payments, with
interest. No title vested in Mr.. Lloyd
by this transaction, but merely an agree
uent received by him protecting him in
the possession, when he should have
made the payments and fulfilled the
other agreements. This section OF land
was Immediately reeold to Mr.. J. B. De-
Nault on the crop payment plan for
$G,4OO. Nh. Default agreeing to deliver
one half the crops grown on the lands
annually, unit; the proceeds thereof
should pay for the land. with interest at
8 per cent. and Mr.. Lloyd agreeing when
the land should be paid for to convey
the same to HIN.
This transaction if carried through to
a finish would have realized profit to
Mr.. Lloyd Of 81, 400 on an original invest
ment Of but $500. But this does not
seem to have been satisfactory per-
centage and note for the entire s6,4OO
was Immediately obtained from Mr.. De-
Nault (although by what process any in
telliaent man could have been induced
to give such q note under such an agree
ment 1t is hard to understand), and to
this note ono years interest was added,
making total Of s6S35.53, and in this
condition and absolutely without security
this note was sold by Mr.. Lloyd ludivld-
ually to Mr.. Lloyd as president OF the
Lloyd's National bank and has since ap.
pesred in the assets Of that institution.
Now the Netherlands company, the
original owners Of the land, step in and
foreclose on the property cutting out
both tho bank and Mr.. Default. The
former will lose the entire amount OF the
note and the latter the improvements
and payments he has made.