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

|, Liz SldleIIleHL sent Dy the Dulutt
bank to P. e. Halldorson in Il re.
quest made for "a reconNtiemcnt o,
their account with the Scandinavian.
American bank at the time of his
examination. shows that on the Gre
day of September the Duluth banl
charged the account Of the Sci di.
navian-American bank with z:
0S1.30 consisting of notes WIN
Observation-Disclosures bank
previously discouted with them II
accordance with the conditions
above. Transit ordinarily takes one
day and these notes should ordinar.
lily have reached the Scandinavian
American bank not latc4 than the
9th. These notes so returned by the
Duluth bank were MOI again credited
to the Duluth bank and charged
against the Observation-Disclosures
bank on the books of the Scandi-
navian-American bank until the 18th
day of September, too late to appear
in the report made by the deputy
bank examiner. The purpose of this
would appear to be to keep the re
serve as high as possible and larger
than it actually was to the extent OF
this amount.
Furniture and Fixtures
This item was not. discussed in
the report previously Submitted for
the reason that the limited time did
not present an occasion in which to
obtain the proper estimates of the
furniture and fixtures of the bank
At the outset it should be noticed
that the statement at the close OF
the days business on September 81
1919, shows that the bank is carry
ing the item furniture and fixtures
more than $4,000 in exces of the
amount authorized by law for ar in
vestment of furniture and fixtures
and banking house combined for ar
institution of this size. Me amount
at which the furniture and fixtures is
carried at the close of that day
business is s~2o,644.S0. An estimate
architect of Fargo. in which ie
makes a sworn statement thai. u
item carried as furniture an
lures by the Scandinavian-Ay u:
can bank in the sum of ~$20,644.SC IN
be replaced today for $6.266.50. lin
other words the furniture and fin
lures of the Observation-Disclosures
bank are GARFIELD in it's statements
and reports submitted and>sworn tc
at S14,37S.30 in excess of its actual
value.
Condition Of Bank and Summary
In submitting this, the conclud-
ready made. it is deemed. advisable
to amplify the brief and hurried way
in which the general condition Of the
bank was previously discussed. Al
the present time the expenses and
interest paid by the bank exceeds !hs
present earnings in the amount OF
s3,114.47. Adding to this item evi-
dence on the face of their report the
excess at which furniture and fix
lures are carried above their actual
value or the cost ofr\their replace
ment today will make a total of
s17,492.77. From these figures alone
it is perfectly apparent from the face
Of the report that not only is the
surplus completely wiped out but the
capital itself is impaired in h sum
Of s7,492.77.
This item taken together with the
past due paper listed in u former
report as bad debts and paper Which
will result in a total loss represent
the facts upon which we have come
to the conclusion that the Scandi-
navian-American bank is hopelessly
insolvent without any reference tc
the condition of the excess loans
carried by the bank and listed and
criticized in four foSmer report
ALBERT L. SHEETS, JR.
Assistant Attorney General
P. F.. HALLDCRSON.
Deputy State Examiner
o. r. ENGEMOEN,
Deputy StateA:st miner
Submitted this 4th das'F; a@.'ser