The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-23
STATE BOARD
DENIESCLAIM
OF COMPANY
Guaranty Commission Rule
Insurance Notes Are Not
Guaranteed BY Law

~ re ttlInE LH' clILiH Oh t.lt ~
kota I,jf,. nsuranc. company of Wa
- l ,t,, m
'e''""H' ., -" ~ N"''' ID ''''
per cent dividend no" being pAld on
the deposits Of the closed First State
hank of CRYSTAL Snrinus. the Guar
sntv Enna commission has establish
49,, n1,,.,,inn' ,n ,,n,,.rn futur. nc
t,ons ~ ~. Ina,d man clam. Of de
,|n.,,ors - sb,,r IN The ruar.,pty
fra which .ro roio,,aJ
Th;s ,ction of the commission viii
etfert larun amnunls of dcposit,
claimed hy Insurance companies,
St~nt ',l.s,,an Consumers stores,
ond s;,n;Ia, ,,ntorrris.s If Tins urr-
Iad.nt - fol}nv.n.i j, viii ,elieve tn.
commission Of = HUGE liability. it is
saId
= n. case involved in the claim Of
,ba D,knt, life Insurance Co. was:
C,sbier Richards of the CRYSTAL
Snr,nos hank was agent for the com
p,.,,i,rns an huSjnpss ne
p,r,ta v,cra moi mid in cash. lie
v,nnId t,la noes from the insured
,,t ~. nnte. ia the hank and issue
rer,if,r,ta. If Ianosit TO the insur-
onc. r,,unan, for dine dates the same
,s tho ,,nt.s Al ,ba. time the ref
a,aa fonnd the bank was unable to
,',I,, Inars Eac,usn Of low reserve.
,nan,, ~ tho notas were worthless.
,arsors maxine tho notes already
n,a,a ,,ar-Inans1 and in all the
Io,ns .n cr,ssed hv tn. referee.
yvera Illegal
Tho rnmmiseion onuroves the find
;,r that Tho claim ~ the life insur-
anra romn,nv does not fall within
tbs law gnverniny the guaranty fund
lnd, tbat The claim mist he found
c,sb d,nosits or tho eouivalent
bnt vara in reality Illegal loans. and
.titntoa a., axcb,nye If credit
/, !. es,;m,tad tbat hundreds of
.h,5s - Jnl,ors 49, moro of
s;n,;I.,r Janosits oro ,ffnrtad
,rha s,,stor, w,s nsad h., MANY
stock salesmen recording 10 mem
hers of the guaranty fund body.
Arotbor casa in which an imnor-
,ont nreceJant was established is
tLnt &c II r. W;++o of Cr,ntop Wis
storalaarer who bnd Sc 400 on de-
nos;+ in tbo Cry,t,l Snrinrs hank
~ - :, understood s1a 600 IN Sl5
onn;n otbar b,nLs u,b;cb bnve c,osed
IRA f;ndi,r of tbe refrran and
oomn,i.s;on - mis-. Witte wrote TO
to .'' ,'yar;,,'. ~ ,1oca ,onav an
Jannsi, vim tbom In This ease the
Io.I, ran,;aa r. would t,ko tho do
noS;t ~ 6 nor cont interest the legal
49, MN, r,+e on ounranteed de-
nns;ts We a.cl;red NJ th;c roto
Int e,;d no would M = he.ter rate,
IT. nsL;o. Of tlo h,nl ,ncnondad
49, ,,aL;r,. , cortific,ta If denosit
J.;' g an ant ava snnd;rr
W.T. nav no,t - cash in , dr,ft
~; rnto IVA comrission
iJu"u' ho+n,oo, +ba ciain,an+ and
~ banl,
TIL da,osi+ il is held is not
rar.ntoad ,,tbongb on The face of
su"i '.;t;t :. -, = an nan+ -
M, ine ,...a uon,bors of .be con,n,;e-
49, au +hera ,re nanv simil,r de.
s'o' Soy rh;oh l;,hiI;ty will ha re.
;es.aI VII
Jet'eu o,., :, r,h;o,, Tho commits
Lau,orar annroveJ Tho claim
49,. TIA pnwar. Elsy,to, com
an,, la a. danosit 81 oso M II
bamS enc On 80 dano.;t md was
.;,o ,sh;or,s nbnct Refore II
t go" r,asantaJ ,bo b,nk Chased The
;l,;on hald +bis valid claim
.o'. ENTERTAINMENTS I'D frnn, hant dr,ft
Uod If hea,, ;ssuad If is nroba-
Ia i'" a. 4 ~ Ja,o,;t ,ro,,Id h,ye haen
LnIJ NOT " Stotpd
IT, H:au w. ~ o,ub;ar;s cheoi, was baId y
, ,;.htI v"e = ~ bont tba matter was
iao,iil' ,';+h srav,.I bad baen
.iea.e' as - Nv
'''lu nortor+ ru1o w,s laid down
an imp1 - ''''' NJ, rafaroa a,d an.
ny "uuS ~ 49, tba
po.r &c ;rrocant nurcbaser has
nnn,;oatior ~ claims against the
-" apa 800. .hat i nrIess an ,c-
su"i " aoSs .t''u w.. ,,ada 10 holder Of
auaa , t1pos ~ aannli+ has No claim
.raiass 80 tic sod faith
;1,ns+ra+;n, y;var nv the
n,;ss;an. a" Jannsi+s 81 200 at
o nan nnut and recaiyed bonns of
c,a at;n !, - dannsit rot guaran-
* iu; '' "a -. sforrod .ha denosit r.
10" 80 ,,or na,,+ without bonus the
,ator no+ tnorin~ If tho nreviouslv
na;d h aor +. ;s hold "R" loses his
p a,o;n, omo;nst tbe uuarantv fund he
on nain, ~ donos;t vas ta;ntad and the
or 80 NOW Wv. ~ which he could have nro-
. on.s ~ hS;,n rn vas ~ make The de-
$3.50 ,,,;th an.ro1 r,onov
poA sI+homrh ~ danositors Guaranty
t,d orsn,;ss;o, on Anr;l discon-
.:na Io ~ onnor;,.+;on for tho ra-
e,nuGu 80 ciesad banls IN order to
op5"ons ~ ,;abiI;tv ~ danositors the
aenn,;ss;nr ~ ;tc meetinc/iust CON
oIudad here f;ved reouirements for
me reopehins oL I1ass D" Tha VI III