The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-30

Two Dakota Institutions Run BY
the Mearses Suspend.
THE DIRECTORS VIOLATED LAW.


WAfHiScroy crrY. May A-The Ma
tionai Bank Of North Dakota, .. Fargo. y.
u. and the First National Bank Of Lakota.
- iakota, y. D., were closed today on
orders issued by the comptroller Of the
currency. Both we're organized by z.
Ashley Mears. the president, who
was also organizer Of other national
banks. many state banks and other
institutions. His plan. says the compsro.-
Ter. appears TO have been to make loans 20
various institutions subscribing TO the
stock OF the two national banks in
amounts which in some cases exceeded
the amount Of stock Subscribed for by
them. The management Of the Fargo bank
was ostensibly conducted by board Of
five directors, consisting most Of
the time Of F. Ashley Mears.
Mrs. n. E. Mes.s. Mrs. c. d. Nears and
Miss l. d. Mears. respectively the wife.
mother and sister Of the president, and
one other director who was not member
Of the Nears family. This BANK owes the
treasurer OF the United stNes about
$4,000 for money expended by the
treasurer in the redemption Of cir
culating notes OF the hank coming
into the treasury for redemption, which
the bank has failed to reimburse to the
treasurer. The comptroller says that he
ordered Examiners Brush and Diamond
TO close these banks because Of repeated
violations Of law on the part Of the man.
agement and the refusal OF assessments,
thereby producing condition rendering
them insoivent and dan gerous As banks Of
deposit
Comptroller Eckles said today there
were indications that the Chemical Ma
tionai bank Of Chicago and the Capitol
National bank Of Indianapolis would re-
sumo business.
FARGO. May 29-The National Bank of
North Dakota, Of which r. A. Mears was
president, wss closed today by the ma
tional bank examiners under orders from
the comptroller Of the currency. The
First National Bank Of Lakota was also
closed. The examiner will give out no
statement Of the assets or
liabilities. but Cashier Mears announces
that the total Indebtedness does not ex-
coed 1900. with assets Of five times that
amount. The bank officers state that the
cause Of the trouble was = large loan bust
ness and the fact that it is impossible at
the present time to realize upon securities.
The individual deposits at the time of the
last statement, May 4. were only 81. 2i3:
demand certificates, $4.452: time certiii-
Gates. $l4. 20; national bank notes out
standing, $&5. coo: notes and bills redis-
counted. $22.lls. and bills payable.
$4,000. At that time the bank only
had Of cash on hand. $40 in legal
tender notes and so in fractional cur
rency. The statement Was not published
in any of the daily papers. but in a weekly
Republican paper. 80 that out few people
saw it. Among the resources given we're:
Loans aud dIscounts. sisa.s7s: United States
bonds. $4,000: stock and securities, 1879:
banking house and furniture. eA4sl: real estate
and mortgages owned. "a. 99a
The closing OF the bank will have no ef-
feet upon the business Of the city or
county. II was merely . clearing house
for a system of loan agencies. 1t had no
deposiiors to speak OF in this city or state.
and what little money was deposited
there will undoubtedly be paid in full,