Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1909-01-15
SECURITY BANK TO OPEN
Public Examiner Schaefer
Of Opinion that Bank Will
Soon Be Running Again

Bralnerd Dispatch, January 10: A.
r. Schaefer, the public examiner,
left for his home in st. Paul this
morning after attending a meeting OF
the officers and interested stockholders
OF the Security State Bank, which
closed its doors on Thursday last. Be-
fore leaving MIR. Schaeter mace a
statement to the Brainerd Dispatch,
for publication, as to- the causes Of the
failure and the condition. of the bank.
He stated that the officers OF the
bank: We're simply the victim OF a
rascal. In company with many older
bankers they were victims Of the
swlndllng operations Of Andy Jones,
the absconding cashier Of the First
National Bank Of Rugby, ~ D.. the
failure Of which caused the closing OF
the Brainerd bank The officers of
the bank, Mr.. Schaefer stated. were OF
course anxious to get their capital
stock to earning and when what ap-
peared to be good securities guaranteed
by officers of National bank, were
offered them, bearing 10 per cent
interest they purchased them, fully
believing them to be all right. Their
tirst lnkIlng to the contrary came with
the failure of the Rugby bank.
Knowing that this failure endangered
their securities Mr.. Guerin at once
closed the bank.
MIR. Schaefer on Mnoday afternoon
held a meeting at which the majority
Of the stock ct the bank was re.
presented and levied an assessment of
100 per cent, or $50, 600 This he said
he had assurance would be paid in
q ho< RI ~.
George Storck, the father OF the
cashier, and wealthy stock raiser OF
Earlham, Iowa, had expressed his
Willingness to pay the assessments
upon any stock which the owners do
not pay the assessment upon. The
stockholders, under the law, have 20
days i'll which to pay the assessments.
II they are not paid the stock Is sold
to pay the assessment.
/ Mr.. Schaefer stated that there was
no evidence Of dishonesty OF crooked
ness and that the hooks were perfectly
straight. But for this unfortunate
investment in the securities Of the
Dakota bank the Brainerd institution
would have been in first class shape.
He stated that he believed that the
assessment would be paid in full, and
as soon as 1t was he would authorize
the bank to reopen its doo1s and con-
tinue business. He further stated that
he had charged every dollar OF the
Eughy securities off as worthless,
though there might be some good
paper among it. If there was any
value, of course the stockholders
would get the benefit of it. There
was none he said of the paper signed
by Jones, the absconding Dakota
banker, in the lot bought by the
Security State Bank, but that it was
all covered by his blanket endorse
ment.
Mr. Schaefer asked the Dispatch to
urge the people of Brainerd to have
confidence in the bank and its officials
The latter, he SAID, might have been
somewhat indiscreet, but that they
had been square and deserved the con-
tidence Of the people as they certainly
would not make the same mistake
again, and would be deserving Of con-
tinued patronage.
There will be another meeting of
the stockholders OF the bank on Friday
OF this week, at which time MIR.
Scaefer will be present and will,
perhaps, be able to set the date for the
re-Opening OF the bank.