Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1893-12-28


Section 3-144-65 was bought by Mr..
Lloyd from Wisconsin party under OK.
actly similar conditions and sold to
Adam Walters, whose note for about
b, 700 was taken and turned into the
bank at its face value, and in this case,
like the previous one, both the bank
and Mr.. Walters are the losers. It is
understood that other land deals of this
character are coming to light.
Several large claims have recently
been proved up on, which are of interest
to the depositors of this institution and
nearly 90 much to the public generally.
Oae OF these claims is OF the Nicollet
National bank, Of Minneapolis, and is
for S14,569.55. The original certificate
of deposit issued by the Lloyd's bank
was in the amount OF $4,000. 1t was
dated June 9Th and given for four
months, and was understood to be a
loan solicited from the Nlcollet bank
on statements OF the greatest necessity
therefor.
Securities largely in excess OF this
amount were put up as usual and con-
sisted of collateral notes. On these
s430.45 was collected prior to proof of the
claim. The interesting part of this is
that under recent ruling of the comp
troler this clam Is held to be preferred
claim, being specially secured by collat-
eral notes, which claim, the comptroller
says, can be proved up on regardless of
credits by subsequent collections of Sc
curities.
The Nlcollet bank has turned over
these securities to the receiver of the
bank, in trust, who must send in the
money from the same as fast as collected
reducing the indebtedness by so much,
but allowing the Nicollet bank to share
IN all dividends of the Lloyds bank
until the claim is paid. If there is any
money left in the collection of these
ecurities it goes to the Lloyds bank. 1t
IS possible that with good times and with
successful collections large portion Of
this claim can be recovered. In the case
of the Continental bank, their securities
were sold, as above stated, ,and not turned
in as in the case of the Nicollet claim.
Another large claim which was proved
upon Dec 18th, was that of the Alliance
Mortgage and Investment company. 1t
was claim of an open account, subject
to check, and was in the amount OF SlO,-
1884 This claim was accepted by the
receiver, ''subject to any error, offset or
liability which may now or hereafter ap-
pear" There is peculiar history IN
connection. with the affairs of the AL
lance Mortgage company and the bank.
Mr.. Wm. Lloyd was the American man
ager OF this English company, which has
made loans in the northwest of about a
million dollars IN comparatively short
time. The Alliance company kept on
deposit in the Lloyd's bank more or less
money, ranging in amount from few
hundreds up to many thousands.
It is stated that the books Of the bank
showed, for several months at a time,
that the balance Of this company was
much less than the company's officers
understood it to be: in fact, that the
banks books bad been 80 manipulated
for months as to show q much smaller
amount of money on deposit than was
actually the case. The pass book of the
company was kept SO as to show what
the company ought to have in the bank,
while the books of the bank disclosed
the false balance which, many times, was
much less than the correct amount.
On June 3Oth Mr.. Lloyd mortgaged
to the Alliance & Investment company
the one. half interest owned by him in
what is known as the opera house block to
secure payment of $4,000 and it is rea-
sonable to presume that this transaction
may have been Tor the purpose Of secur-
ing that company for the large sum OF
money which had been supposed, by
them for months previous, to have been
| on deposit IN the bank.
This mortgage was not put upon rec
ord until the morning OF the tenth Of
July. the date at which the bank closed
its doors.
Apparently the entire opera house
block was the product and the out
growth Of similar "forced loans," the
records at the court house showing that
in October another mortgage for $4,000
was filed by Mrs. Alice L. Kitchel and
husband, covering the other half interest
in this property, the popularity of this
latter mortgage being that it was made
to secure tho unknown holders OF notes
of Alice L. Kitchell such notes having
been made payable by her to William
NJ. Lloyd aud by him sold to parties, to
her unknown.
These transactions are now quite gen.
orally known to those who have investi-
gated the affairs Of the bank. They are
MT howavar fnllv known IN the nnhlic