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

tv,Vou CreOllOTS ma themselves,
This deal has been ordered out re-
peatedly by the banking department
at a time when it was ever less thai,
1t is now. 1t is an extremely bad
deal owing to the secondary con
dition of the collateral held by the
bank as security.
NO. 10 LOAN.
This line consists of four notes
amounting in all to SILICA. none of
which are past due. This loan has
been in the bank for years and has
been constantly growing larger. IT,
has been scrutinized and criticized
often by the banking department. bur
the bank has never yet been ahls
to withdraw the anne AS security
for this excessive line of credit ca
tended to renters the bank holds Il
chattel mortgage On 80 head of
horses, 80 sheep and various kinds
of farm machinery, also the crop
mortgages. This security is mad
equate and for that reason It has
been criticised. The makers durin,
the best crop years have been ahis
to do nothing but increase its size.
1t should be noted that there has
been no abstract of chattel mort
cages examined but for the purpose
Of this report it is presumed that
the chattel mortgage here referred
to constitutes a first lien.
UNITED STATES SiSAl TRUST.
This loan consists of three notes
signed by the United States Sisal
Trust by j.. r. Waters. president,
ed by the bank from the above cor
marathon yy1NiNh iC oc war Nyitt,nry IL,
license from the Blue Sky board to
to do business in. this state. 1t
amounts to $12, 900 in all, is exces-
sive without collateral Of any kin.l
for security and has no right to be
in the bank at all to say nothing of
being excessive. This is one of tine
widest pieces Of banking displayed
by our survey. This also meets APP
prevail of directors.
O.. X. HANSON, DIRECTOR.
Mr.. Hanson is one of the direc.
tors of the bank and heretofore car"
ried a large Xcess in his accommo-
dation. The day after This examii-
nation, however, this loan was cut
down TO an amount OF from m TO
three thousand dollars. In its pres
ent condition it is not objectionable
and is considered a good loan.
p. r. SHERMAN.
Mr.. Sherman, cashier of the bank,
has a direct liability of $4,000. a con
tingent liability OF $500. together
with IN overdraft of s29S.5.. His
indirect liability is found on the
William r. Whitney notes for s3.7vp.
AS to these notes it need only b.
said here that we consider the re-
liability of the maker Of no value
and MIR. Sherman'S Endorsement the
only asset they possess. Mr.. Shcr-
$4,000 secured by Hickell-Kyllo bonds
in the sum Of $4,000 is entirely UNI
warranted BY the reliability Of the
maker.
In the same connection the H. ".
Stack notes made to the Scano;nar-
ian-American bank for the sum nf
$500 requires attention. Mr.. Shcr-
mar owned Il quarter section of land
in Minnesota. He mortgaged this
land for $500. He then sold the
land under contract 10Y decd to enc
II. w. Stack who gave i note TO the
Observation-Disclosures bank for
$500. sherman then decided the
land to the bank subject 10 the con-
,tract for deed and the mortgage
already referred to and took The
So, 500 which II. w. Stack received
on the note as the last portion OF
the purchase price. 1t is believed
that the mortgage on the land and
the note held by the bank represent
the full value and sale price of This
quarter. \ transaction Of this kind
shared by the bank official consti-
tutes highly reprehensible conduct.
The William r. Whitney notes ard
their history are too loEg to include
in this report but they represent II
similar transaction and are in our
possession and are at the disposal
of the board e desired.
H.. J. HAGEN DEAL.
The II. j. Hagen liability consists
of two notes, one for $4,000, which
is without security ard another note
of $4.964 on which he is Il joint max
err with three othcc Individuals. and
also an overlratt amounting to
s196.97. This loan is in excess Of
the banks loan iim:; and is not dp-
proved by the boa!,d of directors 3ut
from a credit point of view the loan
is considered all light.
NO. 1s LOAN.
This liability consists of several
notes signed by - personally and
two notes signed by the -- com
pany amounting -, o s1,429.31 and
a~ggregating s9.159.73. The -----
company is a co-Dartnership consist
ing of --- and $1,000. This Is
considered a very poor claim. II
has been under criticism by the
banking department for years past
but has gradual: been increasing in
the bank. is financitl ,espon-
sibility is very questionable. The
bank claims TO have some security
which is supposed to consist of &C.
ond real estate mortgages on some
land, the value and standing of
which is very questionable. The to.
tai removal of this claim is desirable.
NO. 10 LOAN.
This line is made VI as follows.
Direc, liability OF --. s7,70t and
notes signed by the - company
amounting to S1,429.s1 and aggre-
eating $~9.129.31. This line is exces-
sive in law and also considered ex-
cessive from a credit point Of view.
--'s financial responsibility is
questioned for a line % credit any
where near this amount. This loan
should be materially reduced.
NO. 20.
No. 90, ~se.5o3.69. This note is Sc
cured by 6s shares of stock. in the
Peoples State bank at Casselton, the
par value of which is $4,000. The
maker of this loan is without inan-
cial responsibility as all his prop
erty holdings consist Of III shares
in the Peoples State bank at Cas-
selton. This party owes the Cas-
selton bank over $4,000. These two
liabilities constitute a considerable
excess over the actual value Of the
stock owned. This loa;' is highly
Objectionable and a removal Of the
same is recommended.
PAST DUE PAPER.
The general condition of the loans
- 49, la-S a.. x,,4lV I;.-1,,,1I Ia, ~.