Chariton courier. (Keytesville, Chariton County, Mo.) 1878-current, 1922-06-02
FARMERS AND MERCHANTS
BANK TO LIQUIDATE

"Now, just what is it you would
like to know ~ were the first words
shot at a Democrat reporter yester-
day evening by Bank Commissioner
J. C. Hughes as the reporter entered
The building lately occupied by the
Farmers and Merchants bank.
"Have you finished your examina-
tion, and in what condition do you
find the bank?" the quill-pusher an
swered.
az see," he said. "You want to
know what the loss is, what the as
sets are and how many cents on the
dollar will be paid? That ! can't
tell you at this time"
He explained that until all proofs
of paper and claims had been made,
4 1t would be impossible to ascertain
the exact loss or just how much the
bank would finally pay.
As has been previously told, there
are many forged notes and also
there are a number of fictitious ac-
counts and deposits on the books.
These have all got to be located and
correctly computed before the true
condition of the bank can be an
nounced.
Mr.. Hughes left the impression,
although he did not say SO in so
many words, that the bank would
begin liquidating in the not far dis
Hant future. But he did not say when
the liquidation would start or ven-
ture q guess on how much the bank
would pay. When bank is liquidat-
ed, he explained, the following pro-
cedure is had:
The examiners inventory is first
filed in the recorders Office. No
tices are then published and sent to
every creditor. The state commits
sioner appoints a deputy. In the
present case A. E. Marriott, the well
known coal man, has been appoint
ed. All claims must be filed with the
deputy within four months after
publication or they viii be forever
barred. Ten days are allowed after
the four months period for approv-
al or disapproval of the claims.
They are then filed in the circuit
court. Thirty days are allowed to.
make protest where claims are dis
approved by the commissioner. The
court makes the final approval on
the claims. Six months are allowed
for an appeal. However, few claims
are ever appealed. After the claims
have been filed in the circuit court
for 80 days the court may declare a
dividend. This procedure, as all may
see, will take at least period of
five months. Other banks, Mr..
Hughes said, might give some aid.
When the condition has been sifted
down to a point where balance can
be ascertained, it may be arranged to
have other banks advance the amount
whatever it may be, to the unfortu-
nate depositors. This would mean
that when dividend is declared, in
stead of the depositors waiting for
their money, the other banks would
advance the amount of the dividend
without interest. This plan might be
put through, but nothing definite can
be said at this time, as no one knows
yet just what is good or what is bad
among the banks paper and accounts.
The filing of claims will clear up this
matter.
The reporter asked Mr.. Hughes to
what extent directors are liable in
case like this. He replied:
Directors are trustees in charge
of other peoples money and as such
trustees are responsible for giving
to the care of that property the same
degree of attention al an ordinarily
prudent man would give to his own
business" He added.
aIf investigation should show
that through neglect of the directors
or anyone else responsible, loss has
come to the depositors, suit will be
brought as the statute authorizes, to
enforce such responsibility as there
may be-"
Mr.. Hughes would not say posi-
lively whether the crippled bank
would be liquidated or reorganized.
but the general belief is that it will
not be reorganized. In case of liqui-
dation, the amount the bank viii pay
is problematical.
It has been guessed off that it
might pay somewhere from 40 to 6Oc
on the dollar, but be it remembered
that Mr.. Hughes did not say any
thing of the kind. He absolutely re-
fused to make statement or a
guess.