Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-07-21
FUNDS COLLECTED
BY GUARANTY COM.
In BANK OF n. D.
Total Over Three Hundred
Thousand Dollars Accord
ing t o Lofthus-Bankers
View Situation With APP
prehension.


ALL of the money collected by the
Depositors Guaranty Fund Commits
sion for the purpose Of paying off
depositors of closed banks was de-
posted in the Bank of Moth Dakota
several weeks ago. This became
known today following meeting OF
the commission to consider plans for
paying off depositors Of the Tolley
State Bank, the first of the banks to
closo last fall.
| The fund totals about S3OS,0OO,
according to O. E. Lofthus, state ex-
aminer and secretary-treasurer OF the
commission, who deposited the mon
ey in tho state bank.
! Many bankers viewed the situa-
tion with apprehension when they
| learned that the money had been de-
posted in the Bank of North Dako-
! ia, it became known, because of the
fact that the Bank Of North Dakota
has been unable to meet all its Obli-
| cations Mr.. Lofthus insists that the
Bank Of North Dakota will be able to
pay off the checks to depositors
which may be mailed out within
the next two weeks,
The guaranty fund law provides
that the money shall be left in the
banks assessed until it is ready to
be paid out. However, the withdraw
ais were made on many banks during
the middle of May and the money
deposited in the one bank. 1t has
been reported that this was done to
provide the Bank of North Dakota
with much needed cash. Mr.. Lofthus
declares it was done because it was
| Of
paid out Immediately but that it was
found necessary to make new audit
Of the Tolley bank because OF a re-
cent court decision and Interpretation
by 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
provision of this act shall be depos-
lifted in one or more banks or trust
companies operating under their
| law"
The Bank Of North Dakota is not
! included under the guaranty law.
Mr.. Lofthus said this was true but
added that the guaranty fund COM
mission has the power to make some
rules for itself.
Tho fact that the Bank of North
Dakota is obliged to pay out approx
imately 100000 of guaranty fund
money means that the obligations of
the bank are increased far beyond
the obligations which it is now
known the bank is unable to meet.
Within the last two days the Bank of
North Dakota has begun paying
state checks again, but has not paid
ho OF m @
fund.
The guaranty fund commission at
it's meeting here, met with a COM
mittee of the North Dakota Bankers
Association. The commission spOkes-
was composed OF George H. Hollis
ter, of Fargo; II. P. Goddard of Bis
marck, and A. E. Sevareid, of Eelva,
was invited to meet with the commits
sion and discuss the liquidation of
closed banks and the appointment of
a supervisor of receivers.
Scllorcggo Named Supervisor
1t was stated that the bankers |
committee unanimously suggested
the name of B. J. Schoregge. second |
vice president of the Williams County |
State Bank of Williston, to be super
visor of receivers Of the closed banks. |
Mr.. Schoregge formerly was a state |
examiner and now is a member of |
the Guaranty Fund Commission. The |
appointment was made and Mr.. |
Schoregge enters upon his duties i'm |
mediately. 1t is stated that none of
the receivers of the various banks |
will be removed as a result. ,
George H. HOllister was delegated
to audit the claims of the Tolley !
State Bank and pesent his recon-
mendations to the commission.
It was announced that recent |
decision of the supreme court of
Nebraska to the effect that when
bank pays a higher rate of interest
than the legal rate the deposit is
not guaranteed under q guaranty
law, will be applied in North Dakota,
and that depositors in closed banks |
who received higher rate of inter-
est than six per cent will not have
the protection of the guaranty fund
law, and will not be paid the amount
of their deposits by the commission.
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.
. . |