The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-12-05
GUARANTY FUND
TAKES HAND IN
STARK CO. SUITS
C. L. Merrick Starts Actions
For Removal of Receivers
Of Three Banks ,...
CHARGES MISMANAGEMENT
Alleges Proper Attention is Not
Given to Closed Banks by
the Receivers d.

ulVCu " SIUoCu DdllhS Ny
the Receivers e.
The Safe Guaranty Fund Commits i.
sion has decided to intervene in a suit
started in Stark county to oust re-
ceivers Of three banks, and alleging
mismanagement Of the affairs of the
three closed banks. The suit also at
taches blame to the State Banking
Board, and the state examiner, refer
ring particularly to activities Of the
state boards. The banking board which
named the receivers for the bank was
composed Of Governor Frazier, At
torney General Lemke, and Secretary
of State Hall, chiefly on recommended
ton of 0. E. LOfthus, former examin-
er, the board being controlled by the
league administration. 1t now is COM
posed of Governor Nestos, Attorney
General Johnson and Secretary of
State Hall with Gilbert Semington,
state examiner .
The Guaranty Fund Commission has
employed G. L. Young. attorney, to
represent it in cases, which will come
up in district court in Dickinson, De-
cember 20.
1t is expected hat the guaranty fund
commission will resist the application
of c. L. Merrick for removal of re-
ceivers but will recommend that one
receiver be appointed for three banks
involved, tina the name of an expert.
enced banker will be suggested andthat
this plan will be urged as a means OF
keeping supervision Of closed banks in
control of state boards rather than
court and at same time cutting down
expenses of receiverships and con-
serving assets.
Commission announced it had OBJ
tanned postponement Of hearing so
that it could intervene
Three Banks Involved.
Banks involved are Security State
Bank of New England and Farmers
State Bank Of H4velock, Of which A.
l.. Young is receiver, and Slope. County
State Bank Of Amidon.
C. l.. Merrick, Of Minneapolis, filed
the suits as stockholder He asked
the court to name George Laney as re-
ceived in place Of Young and that
J. l.. Boucher be named for the Slope
county bank. .@
"A. l.. Young, former deputy state
treasurer, was named receiver of the
Security State bank of New England
on Nov. II, 1920, and receiver Of the
Farmers State bank of FIavelock same
date, the complaint filed in the Stark
county court says.
In suit for removal of Young as
receiver of New England bank, G. l..
Merrick plaintiff, says that the assets
of the hank consist mainly of loans to
farmers amounting to about $350,00O
"and that on account of successive crop
failures the debtors on such loans
were unable to pay the same but that
If said loans are properly managed
and taken care Of they will be paid
in full" He states that $4,000 OF
loans were pledged to the Northwest
ern National bank of Minneapolis as
security for money borrowed.
Complain Of Management.
He further says that the defend
ant A. l.. Young, ever since his ap-
pointment as such receiver has not
been able to give the affairs Of said
bank proper care and good and proper
business like management on account
Of the directions given to him by the
state banking board through the Of
fee of the state examiner and that
for such reason the assets of said
bank have not been properly taken
care of and preserved" He says that
the Northwestern National bank "has
threatened to and is about to fore
close it's pledges on these securities
as hereinbefore set forth unless the
affairs of said bank are placed in the
hands of competent man and proper
management assured and that such
foreclosure would result in great and
irreuarable loss and injury to the
creditors ard stockholders of said
bank and that If collections on said
loans will be forced at this time 1t
will work great hardship on the nu-
merous farmers in the vicinity Of
New England.
Ask Bryant's Removal.
Allegation is made in complaint that
"there is no supervision or control
of or over the duties of said receiver,
IA. L. Young. either by the state bank
ing board of the state examiner"
With regard to the Slope county
bank. after setting forth similar al
legaticns. complaint says that the
defendant. r. 0. Bryan, is not fit and
competent person to be receiver Of
said bank, and have charge of its as
sets and affairs; that he has not since
his appointment and does not now give
to the affairs of said bank due and
proper care and attention and, he had
grossly mismanaged the affairs of
said hank and does squander the as
/ sets thereof
PRODUCE "LOOk WHO'S HERE"
| Dickinson, Dec. 5-Rehearsals fol
1