The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-15
GUARANTY BODY
TO MAKE FIRST
PAYMENTS SOON
Depositors of Tolley Bank to be
Reimbursed by Commission,
it is Stated
SUPERVISOR IS NAMED
Question of Depositing of Money
CollectedSby Commission
is Discussed

is Discussed
The appointment of B. j. Schor'
egge, of Williston, to be supervisor OF
receivers, and completion of plans for
paying off derositors Of the Tolley
State Bank are announcements of the
Guaranty Fund Commission, holding
a meeting in Bismarck. Members OF
the commission present are y. f.
Lofthus, state examiner, secretary
treasurer; s. G. Severtson, Bismarck;
B. J. Schoregge, Williston, and NJ. 4.
Porter, Minot. Governor Frazier Is
absent from the city.
Mr.. Schoregge was appointed sup
ervisor of receivers, a position Great.
ed by the last legislature, on the rec
ommendation OF a committee of the
North Dakota Bankers Association,
composed of Geo. H. Hollister, of Far
20; II. p Goddard, of Bismarck, and
A. E. Sevareid, of Velva, Mr.. Lofthus
said, after the board had sought
among the bankers Df the state for
man desired for the position. Mr..
Schoregge is second vice-president OF
the Williams County State Bank OF
Williston.
The bankers committee, it was said,
was invited to meet with the commits.
sion to discuss the liquidation Of
banks and the appointment Of a su'
pervisor of receiver. They unanlm-
ously agreed on Mr.. Schoregge, who
hesitated in his acceptance because
he was a member of the commission.
Some Depositors Barred
George H. Hollister, president OF
the Northern Trust company, of Far
60, was appointed to audit the books
of the Tolley State Bank, the first OF
the banks which closed last fall. Ac-
cording to o. E. Lofthus payments
Will be made to depositOrs Of the Tol-
lev bank as soon as the audit is COM
pleted, which may be within week
or two.
Il was announced that recent
decision Of the supreme court OF
Nebraska to the effect that when
q bank pays higher rate Of In
terest than the legal rate the de-
posit ls not guaranteed under
guaranty law will be applied In
North Dakota, and that deposit
ors in closed banks who received
4 hiuher rate Of interest than six
percent will not have the protee-
ton Of the guaranty fund law,
and will not be paid the amount
Of their. deposits by the commits
sion.
The members of the guaranty fund
commission are Governor Frazier,
chairman, o. E. Lofthus, secretary
treasurer, S., G. Severtson, Bismarck;
B. J. Schoregge, Williston, and M.
r. Porter, Minot
The money collected by the Depos'
itors Guaranty Fund Commission for
the purpose of paying off depos'
itors of closed banks has been de-
posted In the Bank of North Dako'
ia.
The fund totals about $30S,000, ac-
cording to w. Lofthus, state examln'
er and secretary-treasurer OF the COM
mission, who deposited the money In
the state bank.
Many bankers viewed the Sit
uatjon with apprehension when
they learned that the money had
been deposited In the Bank OF
North Dakota, several weeks ago,
because Of the fact that the Bank
Of North Dakota has been unable
to meet all It's obligations. Mr..
Lofthus insists that the Bank OF
North Dakota will be able to pay
of the checks to depositors
which nay be mailed out within
the next two weeks.
The guaranty fund law provides
that the money shall be lef: in lhe
banks assessed until it is ready to lie
paid out. However, the Withdrawals
were made two or three weeks ago
and the money deposited in the one
bank. 1t had been reported that this
was done to provide the Bank OF
North Dakota with much needed
cash, Mr.. Lofthus declares that 1t
was done because it was expected
that the money would be paid out
Immediately but that it was found
necessary to make new audi. III
the Tolley bank because OF recent
court decision and Interpretation ny
the Guaranty Fund Commission
The law also provides that all
moneys collected or received from
time to time by the Depositors Guar
anty Fund Commission under the
provisions of this act shall be depos-
tied in one or more banks or trust
companies operating under this law.
The Bank of North Dakota is not
included under the guaranty law. mr.:
Lofthus said this was true but adoed
that the guaranty fund commission
has the power to make some rules
for itself and 1t selected the state
bank as the distributing agency.
BURGE ACQUITTED
~..-zs I,,1,, 1S-An Interesting