Semi-weekly register. (Brookings, Brookings Co., S.D.) 1894-1898, 1898-11-04

country banks where the average bal.
ance was in excess OF 81 600.
Q. Were the STATE TREASURER
or county treasurer either directors
A. No sir.
Q. II you know, state whether the
other banks in Sioux Falls also paid in
terest on state and county deposits Al
the same rate? A. | can't answer tina,
question. because don't know whether
they did or not.
Q. State whether the interest paid or
the special accounts was paid because
they were in any way Interested in the
banks as stockholders, directors or Off
GERS? A. No sir. they were not.
q Could you state what rate of in.
- was paid on these special ac.
S, to which you have referred? A
remember exactly, but ] think {
per cent.
Q State please how that was usually
computed. on average daily balances OF
average monthly balances?
A. ON THE AVERAGE DAILY
BALANCES FOR THE MONTH.
@. Was that in excess of some Ger.
tain amount, or generally on whatever
balance that happened to be in the
/, bank?
a. On the average balance The
STATE TREASURER and cou~tv treas.
urer carried large balances, AND FOR
, TFFIR ACCOUNTS THEY WERE AL.
LOWED INTEREST. THE INTER,
T7c'r WAS ALLOWED To GET THE
DEPOSIT BECAUSE IT WAS LARGE
Q. During what years, il you can re,
call did you pay the interest to the
state anG county treasurers on their bal.
ances?
A. IT WAS DURING THE LATTER
PAPT or THE TIME THAT / WAS
THTRE, but just how long I don't re.
| member.
q. II was customary. was II?
a. IT WAS ALWAYS DONE.
CROSS EXAMINATION.
By Mr.. Barnes.
Q. Mr.. Gilkes. do you consider that
| the Dakota National bank of Sioux
Falls was run as economically for the
benefit Of the stockholders as should
have been to their interests. within two
years preceding its failure? Do you
think II was run in the interests Of the
stockholders? a. think it was run as
we'll for the benefit Of the stockho' ders
| as the conditions out there would allow
q. What dc you mean by the condi-
tionS would allow in that community:
a. Well, that the bank necessarily haC
| TO keep up q certain force to do what
| work was necessary to attend to its
running business. The running bust.
ness just then was not profitable.
Q. Do you not think that the sa'ar-
les were rather large for the business
the bank was doing, taking it from an
economic standpoint at this time? A.
10 | don't think so.
O. You think the business justified
the expense in the way of salaries? A.
Yes sir.
O. Was il tho custom Of the banks in
Sioux Falls 10 pay interest on average
daily balances? a. No sir.
| A. DID the Dakota National bank dc
so? A. No sir.
O. 1t wasn't the general custom OF
this bank then. but it did so in isolated
cases? A. Yes sir.
o. In these cases in which it did pay
interest on balances, did not it pay
| larger interest to the state treasurer on
| his balance than to othr- dep0s'tors
who received interest on their balances
a. No sir. it did not
| REDIRECT EXAMINATION.
| BY Mr.. Shuey.
| Q. In what capacity are you now
employed. in Chicago, Mr.. Gilkes? A.
Discount clerk for W. r.. Rickords &
Company.
[ Q. How many years experience have
you had in the banking business al!
! told? A. Ten years.
| @. Do you know of your own knowl-
edge that no greater rate OF interest was
paid on the special accounts you have
referred to on deposit than was provid.
ed for by the agreement, to which you
have referred among the Sioux Falls
banks? A. No sir, there was not
Q. Was this Mr.. Gale, of whom yor
spoke, a director of the bank? A. Yes
sir.