The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1923-11-29
Four Banks, with Deposits
Of 81, 800, 600, Closed by
Bank Examiner Monday

while the remaining ones would be
compelled to await liquidation of all
assets or reorganization.
With these probabilities in mind
and with view of protecting the in
terests of all depositors without ex-
ception we have reported to and con-
suited the State Banking Department.
The immediate closing of all banks
was considered the proper step to
take in order to do justice to all con-
cerned.
eve are we'll aware of, and ex-
ceedingly regret the inconvenience
caused by the heing up of all funds
entrusted to us. We have particular
ly in mind those of limited means
who have part or all of their savings
with US.
Especial representatives of the
Banking Department now have charge
of the banks. These men will con-
duct thorough examination, deter
mine as nearly as possible the exact
conditions of the banks, and then pro-
coed to take whatever action is for
the best interests of the depositors.
1t is quite probable that meeting of
all creditors and stockholders will be
called for the purpose of explaining
and discussing all matters in detail
and for the further purpose of formu-
lating plans by which there will be a
minimum of losses, if any.
Gas above stated, we sincerely re-
greet the inconvenience caused. We
have in the past done everything with
in our power to safeguard all funds
left with us and it will be our aim to
procure for our creditors the quick
est and most satisfactory settlement
possible under the circumstances.
"Dated, November 26th, 1923.
"John HI. Spieker, Melrose.
Herman j. Terhar, New Munich.
Edward Ortmann, Metre Grove.
Robert A. Kuhl, st. Martin"
n
Mon y was pay day for the cream
cries at Mefrose, Mere Grove, and
lew Munich, and $4,000 belonging
these three cooperative creameries
we're tied up in three of the four
,anks closed. The directors for the
hree creameries affected, made ar
angements and borrowed the neces-
AIRY funds from the Borgerding
State Bank at Melfose, paying the
farmers for their October butterfat.
The Herald understands that a
lumber of Mefrose citizens had con-
siderable sums of money deposited in
he Ryegate bank on time certificates
because of the attractive rate of
interest paid.
The Herald editor visited Melrose
Wednesday and talked with num-
Der of business men. There was no
excitement and neither has there
been, and to those who were familiar
with the situation the closing of the
banks had been looked upon as in
evitable. On every hand profound
sympathy is expressed for Mr.. Spiek-
er and his co-workers in Melrose and
the other banks, and there is no crit
icism of Encouragement on their
part; in fact, it is generally admitted
that the executors of the Hilbert
estate has made every human effort
to get away from the Montana affili-
alton.
The late DIR. Pierre Hilbert owned
a controlling interest in each of the
banks closed and the officers in
charge were compelled to follow out
his instructions in taking over the
Montana securities. Each one of the
four banks was however separate
and distinct corporation.
In conversation with John E. Welle,
cashier of the Borgerding State Bank
at Melrose, Wednesday afternoon, he
stated to the Herald editor that in
spite of the closing of the other
banks not one account had been with
lrawn from the Borgerding State
Bank. At the close of business on
November 26th, the Borgerding State
Bank carried deposits of $872,125,-
80.
There is much speculation as to
just how badly the banks are in
volved. It is confidently expected
that all of the banks closed will be
re-opened, but it may take some time
to iron out all of the difficulties, and
| it is quite probable that it will re-
quire heavy assessments of the cap
ital stock of the banks.
The Herald understands that the
closing of the Stearns county banks
was precipitated by the failure of the
Ryegate State Bank in Montana last
week Following the close of the
Ryegate bank the Montana bank ex-
aminer made demand upon the Hill
bert estate for heavy assessment
on the capital stock of the Ryepate