The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-06-14
SHORTAGE IS $19,708;;
STATEMENT BY CHASE

w lnHeDdSO, June S.-kelSev !.
Chase, superintendent of banks, ar
rived on the train from St Paul.
Thursday noon. In reply to 2 query
as to whether he could make a state
ment which would be of inteest to
the depositors of the State Bank of
Commerce which was recently closed,
and whose affairs have been thor
Cughly investigated by the examiners
from the department of banking, he
said:
ION May /, 1912, the doors of the
bank were closed after | had found
irregularities in the management of
the bank and the conduct of its
business, so that the representatives
of the banking department could as
certain to what extent these irregu
larities had gone, and in what way
they effected the solvency OF the
bank | have now ascertained to my
own satisfaction that the bank is
not solvent, and have today taken
possession of the bank for the pur-
pose of liquidating it. IT is now just
five weeks since the bank was
closed. This period Of time has been
partly used in making an examina-
ton and investigation, partly in col
lecting notes, converting what as
sets we could into cash, and secuing
other notes with mortgages, and
partly i'm negotiating with monied
people in an endeavor to rehabill-
tate the institution and reopen for
buiness.
Efforts to Dispose of Business.
Our efforts to dispose of the busi-
ness have so far not been success
full, but ! stand ready at any time
to turn the business over to reliable
PARTIES who can satisfy me that they
are in a position to accept the re-
sponsibility and pay the depositors
in full.
Il want the depositors of this bank
to know and to feel that | am prl-
marily acting in their interests, ana
everything that is done by my rep
resentatives, or by me, will be done
to conserve the assets OF the bank.
THE direct liabilities of the bank
i'm the shape of deposits which we
have been able to locate so far are
$238, 536.4S.
There may be other direct liabili-
ties which so far we have not To-
Gated, but in my opinion they could
not be large. :.
There may also be contingent la
bilities which this bank will be re-
ouired to pay. In this connection IL
probably would be advisable to ex-
plain what a contingent liability is,
which can be done more clearly by
an illustration. If the State Bank
of Commerce owned a note signed
nv "A" and sold the note to another
bank and guaranteed its payment,
"A" would be directly liable and
the State Bank of Commerce would
have a contingent liability, that Is,
would have to pay the note II "A
did not. Under these circumstances
il is not possible at this time to de-
termine what the contingent LIABILITY
of the State Bank of Commerce Will
be Further, it depends upon the
manner in which the guarantee was
made and the circumstances under
which it was obtained, and the
facts must all be carefully consider
ed in determining the extent OF this
contingent liability.
Converting Assets Into Cash.
IN order to pay these llabllltles,
it is of course necessary to convert
the assets of the bank into cash, and
in order to give the depositors as
clear an idea as it is now possible
to do | will outline the assets, or III
other words, the resources which we
must depend upon. These assets
are substantially as they are at the
present time and the cash on hand
includes the amount which we have
collected during the past month:
Notes ................... $223,3O7 OF
OVerdraftS ............... o,oio.S %
Office equipment l,94l w
Real estate ....... o'oS4 %
Cash on hand. ......s.... 20,99| 81
Total 1885, SIT .O5
II is not possible at this time to
determine the value OF the notes, as
il is claimed by the makers OF some
of the notes that they have paid
them. The opinion of various men
in this locality on the worth OF some
Of the notes varies widely, and any
estimate which | could make now
would doubtless not be accurate or
even close. 1t is reasonable TO pre-
sume. however, that the loss on
them will be large. A list of these
notes will be filed with the clerk OF
court of this county at Blue Earth.
1.-THE overdrafts speak for them
selves, and their collectability de-
mend. of course, on the goodness OF
the individuals who are responsible
for them.
Shortage Is s1s,7os.5e.
The real estate consists of a farm
of 200 acres in Delavan township,
against which are two mortgages ag-
gregating $4,000. There has been a
good many reports in regard to Mr..
Parker's shortage, In this connection
wish to say that we have found
SO far about $19,708.56 unaccounted
for. | do not wish to state for pub
LEGATION that he is or is not respon-
sible for all of this. The shortage
exists. however, and of course, some
one connected with the bank is re-
sponsible.
"Mr. Sharp has stated to me that
he will make good all of the deposits
in the bank so far as he can out OF
his private fortune.
THE law requires that notice to
creditors be published weekly for
three months, the first notice ap-
pears in this issue, and the final div
idend cannot be paid until year
has elapsed
THE depositors may rest assured.
n.ouor that at the expiration OF