The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1919-10-16

LIE dpOVe OdHk STOCK, at ltS a
ket value, and the farmers notes
at their par value. represent a total
of $5S,341.5S which is all held by
the bank as security for this grossly
excessive loan. Our opinion has al
ready been expressed as to the value
of farmers notes for the purpose OF
collateral and with special refer
ence to the class here held We have
also expressed our opinion and judg-
ment as to the value Of outside bank
stock used for the purpose Of collat-
eral (Taken at its face value the
collateral does not come within over
$4,000 Of being sufficient TO cover
the face of the loan. 1t is our judg-
ment that this loan is not only OK
cessive in the extreme but that che
collateral is wholly inadequate.)
PUBLISHERS NATIONAL sERv-
ICE BUREAU.
This loan amounts to s47,s5o.os and
is covered by accommodation paper
running from $1,000 to $1,000 in
notes signed by the Publishers Ma
tional Service Bureau. j.. w. Brin-
ton, president and +. B. Wood, pres
ident. The bank has for security of
this loan STA, 600 in farmers notes of
the character already described. That
this loan is excessive in the extreme
is apparent or its face. In addition
to this it is our opinion that the col
lateral behind it is entirely made
quate.
II. D. HAGERTY EXTENSION OF
CREDIT.
This loan consists of six notes
ranging from $4.5sS to $4,000 and
aggregating $47.0S8. This loan orig
inally wen into the bank in the
spring of 1918 or in the fall of 1915
and a caught by the examiner in
the examination made in April Of
1919. During all the time hat this
loan has been in the bank it has
been under the scrutiny of the bank
ing department and has been re-
peatedly ordered out. The directors
of the bank by specified minutes
have ordered this loan out of the
assets Of the bank. On April 1. of
1919 it became past due and has
never been removed nor has any
portion of the same been collected.
Since July 3 it has been in the hands
of lawyers for collection and with
out avail.
|. This lien Of credit is secured by
collateral notes aggregating $50, 900
in five different groups and these
collateral notes contain but one sig
nature in each group and they are
all past due and appear to be mere
ly accommodation paper. Their val
ue is seriously questioned. In addi-
ton to this the bank holds SAP, 900
in firSt-claSs mortgage bonds given
by the Great Western Livestock
company, which by the way is a
signer on part of the notes consti-
tuting this line, and the original is
sue of which, comprising sos, 900
worth of bonds, is made against five
thousand acres of Michigan timber
land. No officers of the bank has
ever seen this land. It's value is
very doubtful.
This loan is not only excessive,
but if not totally worthless, it IS
wholly bad. The makers OF the
notes are irresponsible and financial
Migrants. The security behind It Is
just as questionable and is of the
same shadowy. doubtful character as
the signature of the makers on the
principal obligation.
LOAN NO. 6.
The No. 8 loan comprises IA noses
ranging in amount from $227.15 to
$10,412.o0. This loan is secured by
second and third mortgages for s1S.-
600 of it's amount on LOO acres of
Clay county land. but the loan itself
amounts to $~33.O8S.9S.
The loan is unJustiled by the col
lateral behind it. top heavy and the
makers are financially irratic and.
property. are individually plungcrs
and very undesirable debtors. This
loan may be either good or bad be-
cause Of the reasons herein stated.
1t is certainly unlustined in the
amount to which it has been made
and in our opinion the collectibility
Of this obligation would depend on