Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-06-21

$625, and his father owns q quarter
section he stays home and works It
and has nothing in the world himself.
q, How much is it?1A. 1925. s.. A.
and E. j. Papke, $4,000 is a stranger
Used to organize for the Nonparttsan
league, has improperly in the state.
i do not know them--they have no
property in u county that 1 know
of. w. Rowewald, $4,000, is alb
solutely no good. He has a new home
there and he cannot pay his grocery
bills.
+ @. How much is his note? A..
$4,000 only. SEVERN Risa, $3.50. He
Is good but he. is going, to refuse pay
ment pm that note because he claims
they mi~srepresented it to him. H.. A..
Starke. $3.50.
BY Mr.. Hall.
@. Is he q one-armed man? A. Son.
Of the one-armed man. The old man
is rich but the son Is the youngest
boy on the farm. They are Al, got
money on mortgages. This young fell
low he has been out raising hell. He
is married and he is on the old mans
with the old mans horses, machinery
and everything, and he is behaving
very we'll. The chances are he will
make good and pay bat note but or
dinarily we would not o a him very
much. That Is the condition with
Starke-he may be absolutely good
but he could not go to the bank and
get %one-fourth Of that on his note. E.
l.. Wicks, $3.50, he is mortgaged up
for all he is worth and r. c. Wolfe,
he runs a lumber yard there. He has
not anything outside of the house he
lives In, a rented house $3.50. S. A.
Zimmerman vice president Of the
bank $3.50. I do not consider his note
very much good He is a fellow who
never reduces his Indebtedness at the
banks and always tries to increase
them. They put up a building there
and he and Doctor Mcdonald to
gether about four years g five years
ago, and he borrowed every dollar he
put into hat building and he has not
reduced it n cent. He built a house
about seven years ago., and borrowed
every dollar. hat went into that. He
has not reduced that n cent. in
addition to- that they have loaned
$1,000 more.
BY Mr.. LANCER:
@. What is your opinion in regard
to the bank being capitalized at
$200, 900? A. It is my opinion that it
is twice too much. If they had a bank
capitalized at $4,000 and run right
they might make a nice dividend for
their stockholders. nice paving divi-
! dend. They cannot pay dividends OF
a, $2oo,0 600 investment like they have
now. 80
O. What would you say it cost them
to change from a National bank to a
state bank? A. Well it cost them
about $4,000 they had to pay includ-
ing state guaranty fund, and they will
have to sell their bonds to secure cir
culation. They are below par now. A
| IL ct ~V4<oti4n 7 nnf an %hn~o xro, fr1r.
97h to 98. That would mean $1,000
loss on the. United States bonds for
them. There is five thousand dollars
and they would lose the income off
that, $1,000 a: year after they are sold,
makes $4,000 out of the first year.
Q. The first $4,000 paid in they
would still keep it in the bank. A. 1t
is charged out Of their earnings just
the same.
Q. Whatever way it is charged. as
a matter of fact. it is gone? A. 1t is
i. gone sc far as the stakeholder is con-
cerned. 1t is an absolute loss to them.
Mr.. Waters:
" They cannot touch that money. 1t
is a loss to them.
By Mr.. LANCER:
!, @. Do you know how that s15026
sibly give you an idea. 1 think he fig
ured| had a copy OF the slip he
made QUIT have not got my figures
Just right but it is somewhere arriv-
ed at on this basis. The capital
Of our bank is $4,000. the surplus
$4,000. the National bank you see.
Undivided profits, 4 think was $685.
600, undivided profits account s2542e,
we[Hill call it: and they raised the
: building $27,75o. and charged into
interest accrued account $4,000: made
a total debit, you see. $1S1,176: and
out of that they paid us $146.150,
, leaving a difference there on the
raising of these figures of $15,R6.
BY Mr.. Waters:
, @. Did they pay $1,000 accrued in
t%erest? A. They only paid us $146.-
Q. That is a phony charge? A. Yes
, that is a phony charge.
Mr.. Waters:
I want this togo into the record.
: was called to Fargo. forget the
: date, but it was after this transac.
ton came up, one Saturday afternoon,
got in there on number four, and
MI. Townley and Mr.. Lemke got Mr.
. Hastings owe at league headquarters
3 and I went there: n Mr.. Hastings
was trying effect this-in other words
he was trying that the examiner and
myself and the Banking Board were
a mistaken on this $4,000; that we die
I not have the right viewpoint of it; and
he has some figures on an envelope OF
e piece of paper he quoted from tc
make me believe that I was mistaken
, And 1 said: Jack, absolutely no, II
FL am. mistaken the entire Banking
eYBoard is mistaken and everybody else
: Now if we are mistaken I am perfect.
: ly willing to send the examiner back
v to that bank and have you go with
! him and show where we are mis-
: TAKEN" and Mr.. Townley said: Jack
you are lying to Jim and you are ly'
[ ing to me and every man here, and
you have quoted me a tumble of fig
! ures you are quoting to Jim now tha1
E l don't understand head or tail to. OF
anybody understands. Jim. where
can, you get hold of, the first exam.
iner?" and I said: Il prefer to gel
hold of Mr.. Halderson.' And he said:
"Can you send him there Monday
, morning." And l. said, "If l can get
hold Of him today or Sunday l car
] send him Monday morning" was
leaving hat night and ! sent him q
letter. by messenger boy and got a re.
ceipt for 1t, to Mr.. Halderson. in
5 %structing him to get there Monday;
I bnt Mr.. Townley had Mr.. Miller ir
there at this meeting. and Miller was
instructed to go along and Hastings
| too, to pay back the money in thai
: bank. They went Tuesday and thal
i is when Mr.. Halderson rendered this
! report. .
Mr.. Aamoth: That is the day he
' lmade 1t in there. 81.
. Mr.. Waters. I.make this statement
. nrincina11v from the IA ~ that Thomas