Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-11-21
EXPLAINS MOVE
SELL ASSETS
Nestos Shows How Action
was Urged By Financiers
AS Best Possible.

Bismarck, Nov. 21.-Because of
Observation-Disclosures of the work Of the
men in charge OF the assets Of the
closed banks, Governor r. A. Nestos
mas made a statement of the condi-
ions and the present status Of pro-
ceedtngs toward selling the assets OF
some of the institutions.
According to, the governors state
ment three banks, or the assets Of
three banks, have been, sold. The adj
yertisement for the sale of the assets
Of the 19 at present being considered
was ordered by the state guarantee
fund commission, two of whose mem
bers are appointees of Governor Fra
zter. The decision Of the bankers of
the state that 1t would be better to sell
the assets of the bank than to attempt
TO work out through receiverships was
arrived at openly at the last meeting
OF tire State Bankers association, de-
clares the governor, this meeting hav-
ing been held at Minot..
EARLY in the fall" contdnues the
governor, the banking board, consist
ing Of Sve:nbjorn Johnson, Thomas
Hall and myself. adopted the rule that
no bid for these assets would be con-
sidered by the board unless the ac-
ceptance of the bid was recommended
in writing by the state examiner (who
is a Frazier appointee), by the guar
anty fund commission 1.-TWO of the
three members of which were appoint
ed by Governor Frazier), and also ap-
proved dn writing by the committee
of three appointed by the bankers
from among their own members for
the specific purpose of safeguarding
the interest Of those who contribute
to the fund by which these deposits
are guaranteed. The banking board
felt that by deferring action until this
group Of seven, men (who all under
stood bank paper and the value of
such assets) had carefully investigated
assets and BIDS and had approved OF
the acceptance Of the bids In writing
that wel We're throwing the greatest
possible number Of safeguards around
the public business, and had done ev.
erNthing in our power to conserve the
interest of those who were interested
in the rea1izaJti IN of the largest net
amount of these assets.
Officials Approved.
In the case of the three small bank.
whose small block of assets were sold
by the board during the last part O.
each Gus was approved by all the
above mentioned persons, three OF
whom are holdover appointees Of Gov
Frazier, and as 1t was felt by the
banking board that the bids received
were larger in amount than whar
There was any reasonable %posabi1it,
o frealizing by having the assets han
dlod by receivers, we voted to nccep1
the bids and approve the sale"
Assets Of two of the three bank.
whose paper was sold in August, &C
cordtng to. the governor, were sold t.
a party from Alexandria, Mimi, Will.
the assets of the third bank were solo
to Ray Craig, a farmer state manage
of the Nonpartisan league.
Personally, I am sure" declared
the governor, that the memba>s O.
the banking board have consl@ere
but one question:, and that is whether
in accepting thess bids and making tn,
sales we were realizing more on thes'
assets than we would in the net re
suits of the collection of>lhem Through
(! the recedvershdp system. ! also fee
confident that this mas been the sol,
Thought of the state examiner. tn,
Z guaranty fund commission and thu
special Bankers committee. who have
] acted in this matter, including .tht
three o. fdhe v who were appointed
By Governor Frazier, and no sale wa,
made that did not have the approva
OF al. Of thtse men before the Dt
was accepted by the banking board