The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1923-11-29

western OCedrnS county MOOnudy
morning when the news spread that
the Hilbert line of banks had been
closed by order of State Bank
Examiner A. j. Veigel. The banks
affected were the Security State
Bank at Melrose, The Farmers State
Metre Grove; New Munich State
Bank, and the State Bank of St.
Martin.
Prior to the death of Mr.. Hilbert
few years ago, these banks were
operated in connection with banks al
Ryegate, Ekaloka, and Pebona, Mont
Many thousand dollars worth of the
paper taken by the Montana banks
was transferred to the Stearns county
banks because of the unusually at
tractive rate of interest which they
carried. Shrunken land values and
crop failures for five years have com
pletely frozen the securities carried
by the Stearns County banks.
Following the death of Mr.. Hilbert
j. H. Spieker, president of the Sc
curity State Bank at Melrose, E..
Ortman, cashier of the Metre Grove
State Bank, and H. j. Terhaar
cashier of the New Munich State
Bank, were named as executors OF
Mr.. Hilbert's estate, but because OF
conditions in Montana have faced
a stone wall in an endeavor to ex-
tricate the estate from it's difficulties
The banks closed were differed by
the following men:
Security State Bank, Melrose-
H. Spieker, Pres, H. T. Loosbrock
v. Pres; H. C.. Stalboerger, cash
Ter, and H.. H. Rehkamp, assistant
cashier.
State Bank of Metre Grove.
H. Spieker, Pres; j. H. Nathe, v
P; E. Ortmann, cashier.
New Munich State Bank-M. Pitzi
Pres; Casper Zierden, ". P; H. J.
Terhaar, cashier, and j. M. Terhaar
Asst. cashier.
State Bank Of 80. Martin-va1
Haehn, Pres; H. J. Terhaar, v. P; R
A. Kuhl, cashier.
The Security State Bank of Mel
rose has capital stock of $4,000
with $4,000 surplus. The New
Munich bank has a capital stock OF
$4,000 and $4,000 surplus. St.
Martin Bank has capital stock OF
$4,000 and $4,000 surplus. The
Metre Grove bank has capital stock
If $4,000 and $4,000 surplus.
At the last call for statement by
the Minnesota Banking Department
Nov. 1, 1928, the four banks in ques-
ton had deposits as follows: Security
State Bank, Melrose, $3.50, 1000; Farm
ers State Bank, Metre Grove, $780,
900; New Munich State Bank, $780,
600; State Bank of St. Martin
$17S,O0o; or total deposit of ST.
$4,000.
The following joint statement pre-
pared by the active managers of the
banks closed will be of interest to
many Herald readers:
"The undersigned, as active off
GERS, take this means of apprising
their creditors of the facts in con-
nection with and the causes that have
led up to and have resulted in the
suspension of the above named
banks at the close of business on
November Gath, 1928.
Cup to the time of his death, dur
ing the month Of September 1921
DIR. P. A. Hilbert was extensively
interested in the four banks named
as well as in three certain banks in
the State of Montana, which fact, we
believe, is generally known through
out this county. While so interested
and while having these connections, a
considerable amount of Montana
loans were placed in his Minnesota
banks at the direction of DR.. Hilbert
Repeated crop failures in Montana
the sudden death of DR.. Hilbert and
general abnormal and adverse condi-
tons have brought about the recent
closing of one of the Montana banks
and the encountering of serious diff
ficulties by the remaining two. The
same conditions account for the slow
ness of a large amount of Montana
notes carried by the Minnesota banks
md the depreciation of the security
held in connection Herewith to such
an extent that portion, of these
lonas must now be considered as OF
doubtful value. The difficulties en-
countered by the Montana banks
have also materially lessened the pos.
sibility of liquidating the Montana
paper held by the Minnesota banks.
And, these same difficulties, after be.
coming known to the local depositors
las they undoubtedly would become
in the very near future-would leac
to Withdrawals until reserves in the
Minnesota banks were depleted, with
the result that the Minnesota banks
would eventually be forced to sus
pend. This depicting Of reserves be.
fore closing would mean that some
depositors would be paid in cash