The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-12-19
DEP0SIT0RS
OF 81 BANKS
GET CHECKS
Guaranty Fund Commission
Has Paid 100000 To
$1,000 DepOsitOrS

When the state guaranty fund com
mission on December t., completed
the first year Of payments TO dep0sI-
tors in the 2l0 closed state banks and
trust companies it had paid out $500
900 to $4,000 depositors, Il check of
the commissions records today
showed.
II was estimated at the commission
office, however, that the 10000 per
sons who have already received
checks represent only about two fitti.
Of the persons who have valid claims
against the commission, since only
the claims from ~ banks have been
certified for payment and payment
10 all the dcpoSitors Of these has not
been completed.
The 81 banks. dcpositors Of winch
nov are being paid. include the group
Of institutions who failed prior t"
october !, 1928. No action has been
aiken with regard to paying depoSi-
tors in banks which have failed alnc"
that time.
Hundreds Fail to Present Claims
Dcspitr the fact that notices have
been sent to all the depoSitorS in 81
banks that the state now is ready 20
nav the first inStalmcnt on money
presented their claims for payment
and the money is lying idle awaiting
such presentation. In some eases, Of
ficials Of the commission said, IL is
evident that the depositors have died
or left the state. In most cases,
however. it is believed that they have
neglected the opportunity to obtain
first payment of 10 per cent on the
amount due them. Persons having
deposits in banks which closed prior
to October !. 1923. and who have not
Vet received Il payment. are urged by
the commission to send III their
claims at once IN order to facilitate
the vast business Of bookkeeping
which confronts the commission"
Claims of depOsItors in the l29
banks and trust companies winch
have failed since October |. 1923, are
not yet ready for payment and are
IN process Of preparation by the
hoard.
Another Year of Book Work Required
Members Of the guaranty fund
commission and Referee {. }. FISK,
who hears evidence on contested
claims, estimate that it will take an
other year to complete the work of
certifying claims for payment BY the
guaranty fund. After that the book
keeping problem will be reduced and
the matter of paying iepositors will
boil down to one OF finances.
AT present the commission has 4
stable reserve against which has
been set up the 10 per cent payment
on claims allowed but not pressed
by the claimants. 1t has some money
IN az ,ition to this but not enough
to mt the rounds of those who have
money due.
Although the total amount which
the guaranty fund commission Will
he asked to pay will not be determin
ed until the claims against every
closed bank have been considered, it
is expected to be in the ncighbornood
Of $4,000 900. This is arrived at by
estimating the total liabilities of all
closed banks at 100000 600 and taking
half that sum as representing valid
claims against the guaranty fund. En-
perience with the 81 banks on which
work has been completed shows that
slightly more than half of the claims
presented to the commission are pro-
perry chargeable against the fund
the 81 banks having produced $4,000
state Received SlSO,0OO Annually
foresee, is that final payments may be
state Receives 10000 Annually
Under the law which taxes other
state banks one fourth of one per
cent OF their average deposits for
the guaranty fund. the state will re-
ceive this year about SlS0.O0O. Ii
is expected that in succeeding years
the amount may be larger if the
state is prosperous, but not sufficient
ly so to make it possible to pay I'M
mediately the first dividend to all
depos itors. Payment of 100000 was
made possible this year by the fact
that the fund has been accommodating
since 1917.
Placing the total liabilities Of the
guaranty fund ut $2O,000,O00 it will
he several years before the initial
10 per cent payment of $2,000,000 is
completed. After that payment will
be made AS money becomes available
or at the rate Of about 100000 Il
year, according to present prospects.
The result, officers Of the commission
foresee, is that final payments may be
made to the grandchildren of the
original depositors.
One encouraging feature is that
persons having on deposit less than
Sl2 are being paid i'm full and their
claims wiped off the books. OF the
$4,000 claims allowed against the 81
closed banks 5000 were Of this char
acter.