The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-10-13
10 PER CENT TO
BE PAID SOME
OF DEP0SlT0RS
Dividend Goes First to DepOs-
itOrs in Banks Closing
Before July 1, 1923
PRO-RATA PLAN GIVEN
Heavier Payments to Further
Classes of Banks Will
Equalize Payments

The state Guaranty Fund Commits
sion, in charge of the administration
of the fund derived from assessments
on state banks to reimburse deposit
tors in closed banks, today announc-
ed its intention to make the first
payment under the guarantee law to
depositors of banks closing before
July l, 1928.
A 10 percent dividend will be paid
depositors of this class of banks, with
this exception: All deposits of $40
or less will be paid in full. Also the
commission will not issue a Guaranty
Fund Certificate for less than 81,
which would result in deposit of
$12 or less being paid in full. The
plan is to make flat payment Of
$40 on all deposits of 500 or less,
and dividend of 10 percent on all
deposits Of more than 500.
The Commission will expend
about 100000 of it's fund of about
$1,OOO,OOO in making this first divi-
dend payment to depostors. 1t is
contemplated under the plan that de-
positors of banks closing after July
1, 1923, will in the subsequent pay
ments receive sufficient amounts
from the guaranty fund so that, as
far as practicable, all depositors of
closed banks will be paid pro-rata.
The announced method of making
the first distribution of the fund was
worked out by the Guaranty Fund
Commission, composed of Governor
Nestos, ex-officio chairman; C. r
Green, manager Of the Bank of North
Dakota, ex-officio member; S. G.
Severtson of Bismarck, appointive
member; C. B. Mcmillan of Hannah
appointive member, and Gilbert Sem
ington, state examiner, ex-officio Sc.
cretary. Much of the detailed work
has been done by Mr.. Severtson and
Mr.. Mcmillan, as appointive mem
bers.
$1,000 DepOsitors
There are about $1,000 depositors
of banks closing prior to July 1, 1923
who will share in the dividend, OF
which about 5000 had deposits of $1z
or less, according to statistics COM
piled by the commission. By paying
off the small depositors in full, many
thousands of dollars in administra.
tive expense will be saved the COM
mission, it is said. The total amount
of deposits in these banks guaranteed
is estimated to be about $5,00O,O00.
Depositors of So closed banks will
<share.
The commission, in deciding to pay
dividend to depositors of banb(
closing before July l, 1923, announc-
ed that the fund was inadequate tc
make substantial pro-rata payment
at this time to depositors of every
bank closed up to this time, and that
large proportion of the banks
closing after that time had not been
audited or claims made so that pay.
ment could be made promptly. There
also is the likelihood that number
of the banks closing since July l
1923, will be reopened, and the divi.
dend could not we'll go back of the
point where closed bank may re-
open.
~ 0ASO I'D uSSAoISu tuoC W ouOiI al
banks, classify all deposits, hold
hearings on disputed claims, and to
do other things necessary before de-
posits can be paid, would require Sc
great clerical force as to be bur-
den on the fund and an injury tc
depositors, and would delay the divi-
dend payment, if made absolutely
pro-rata at this time.
As step toward paying the divi-
dend announced, the Depositors
Guaranty Fund has issued an order
to banks to mobilize guaranty funds
in the Bank of North Dakota. Some
hearings on disputed claims also
must be had before the dividend
: checks can 60 out.
What DepOsitors Must Do
Rules governing depositors who
will be entitled to the dividend in
clude:
Claims must be presented to and
allowed by the receiver of the clos
ed bank before being allowed by the
Depositors Guaranty Fund Commits
sion.
An affidavit must be made by the
depositor to the effect that there was
no agreement, promised or implied
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