The herald-advance. (Milbank, S.D.) 1890-1922, 1922-01-06
MARVIN STATE BANK
CLOSED BY EXAMINE R


et. the Marvi, State Bank, and started
TIE work Of checking up for The state.
Msny of tle residents here know the
conditions which led to the failure OF
the bark, but for those who do not we
viii give IN explanation SO the mat
raf may lie fully understood. This
banks trouble began away back in
1912, when n. G. Bachelor lthen
casher) made several bad loans which
be could not recover and led to the
banks becoming in bad shape. Mr..
hachelder saved himself and the hank
d few years later by selling out to
T. c. Scholberg and j. c. Gans, OF
Correll, MINI.
These r,en were reputad to be
>.a,ite we'll off and it was thought they
afould be able to pull the bank thru
1,d put it one sound footing again
tut handicapped from the start, MI.
Scholbcrg. the cashier, tried dealing
IN real estate and other ventures with
tne idea of making money faster than
"A the general banking business. These
ventures turned out bad and then Mr.
Seholberg tried the contracting name
Fa former partnership with James
Kane of this town, and they took Il
large ditching contract in Minnesota.
-.anged in debt for somewhere around
me hundred thousand dollars for ma
chihery and equipment for doing
s.ch contract work. 1t was our und-
as'standing that they lost over thirty
thousand dollars on the Minnesota
contract.
Then they took the contract to
build the Yellowstone trail from Mil
t,ank to Ortonvilie, did some work and
threw up the job. Later they contract
81 a lot or road work near Aberdeen
Whether they took & loss on this or
-roke even we cannot say but Mr..
S,cholborg had been financing the pro
position thru the already distressed
Marvin State Bank, and the hank
vent under, being as we understand
Seventy Three thousand dollars be-
rind.
Then is when the present manage
raent took hold. The deal hung fire
Tor quite q while as the new men, S.
". Matteson and Enoch LndquiSr
aanted to he sure it was in shape
20 they could handle it before they
.cok it over. Several thousand dollars
vas raised by Mr.. Scholberg's friends
in cash to lower the liabilities, and
r-fen his relatives signed up and went
good for the balance Some of then,
@ere reputed to be well off and Messrs
Matteson and Lindqust accepted the
.ank under their guarantee and sew
eral quarters of land scattered ovet
me state as additional security Thu.
saey thot they were quite safe and
nth careful management they would
wa able to put the bank on sound
footing again.
However, when the money strin-
,ency hit following the war, Mr Schol.
herg's relatives who went security fol
him failed. the land holdings which
.he bank had relied upon as good Sc
1arity became liability instead O.
IN asset as the bank could get no in
come from it and had to nay take
and interest to hold it. The loan be
came too heavy for the resources O.
the bank and it's officers to carry an,
there was positively nothing to d,
cut let the state come in and take !;
over under he Depositors Guarante,
.aw.
Thus our readers will see that tn.
Failure is no fault Of the present of
E,cers, in fact the State Department
!. gives them credit for handling the af
fairs of the. bank during their perio,
OF control in very high and efticien
manner and holds them entirely blam
iess in the matter.
OF course these men, now officers
directors and stockholders of the ban1
will lose all they have invested in tn
hank thru the closing, but no patrol
IL the hank or depositor will lose
cent
We the citizens of Marvin and tn
officers OF the defunct bank togethe
with others interested are at presen
doing our best to organize an entirel
new bank to take over the business o
the old institution but to start wit
4 clean slate, entirely new withou
any liabilities and with full paid u
capital so that Marvin may have
good strong bank which is a real M
sessity in any town.-Marvin Monito
-H-A--
Mrs. Ida Finley accompanied he
daughter, Mrs. Elton Sutcliffe to he
.Aome at Mcintosh the first of til
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