The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-02
CLAIMS TOTAL
$680,962 IN
BANK SUITS
Administrators of Closed
Williams County Bank
Named Defendants

Civil actions, one filed in the nam,
C l.. r. Baird, receiver of closed
banks, have been instituted agains
former trustees of the William!
County State Bank at Williston
N. D., to recover $6S0,962.93 with in
terest from Dec. Is, 1920. Thi:
amount is alleged to be the entire
sum of deposits, both public and in.
dividual, in the bank during the
regime Of the defendant creditors
who took over the management OF
the bank in 1920.
A separate action, instituted by
Williams county, asks for $l22,393 81
with interest from Dec. l3, 1920, the
amount of county funds on deposit in
the bank
The contention of the plaintiffs is
that during the three years the bank
was operated under the management
OF J. +. Desmond. one of the agents
Of the eastern creditor institutions,
it was mo bank at ALL" but strictly
a private institution which was used
to further the interests and bene-
depositors."
First service in the case was had
on c. T. Jaffray of Minneapolis,
president Of the 500 railway and
chairman of the board Of directors
Of the First National bank Of Min
neapolis. Papers were served on
Mr.. Jaffray at Grand Forks Thursday
hat ho cd a
meeting of the Commercial club in
that city.
Many Defendants
The defendants in the actions are {:
First National bank of St. Paul,
First National bank Of Minneapolis,
Mortified National bank Of North
field, Mimi. the Ulland. Mealev. Cow
ley company Of Minneapolis, the
Citizens Commercial trust compa,. :
Of Buffalo, N. Y, the Union National
bank of Minot, N. d., Eric A. Thor
berg, Ed. Schuienberg, George F.
Bates, o. A. Drews, J. 2. Desmond
and A. w. Bollum. The individuals
named are alleged to have been
agents Of the creditor corporations
State bank and in operating it.
The suits were instituted by Err
nest A. Francis, states attorney of
Williams county, and William Lemke
of Fargo, who, at Mr.. Francis re-
quest, was named special assistant
states attorney. U. l.. Burdck of
Fargo is associated with them. After
tvs NJ
Baird instructed Mr.. Francis and Mr.
Lemke to bring an action in his be-
half to recover the entire amount
OF deposits.
Bank Condition Cited
The complaint in each action sets
forth that in 1920, the defendants
were creditors of the Williams Coun-
ty State bank in the sum Of owe,
s40O 900, and that they knew that the
bank was "hopelessly insolvent under
the banking laws of North Dakota
The condition Of the bank on Nov
!, 1920, is set forth as follows in the
complaint:
1t had deposits of $823,3l9.2l, anC
had on hand cash, including cash
items and cash due from other banks
$2b. 963.94, and overdrafts of $26,
1879, and overdrafts against no re
serve amounting to $l8l.95.
On Nov. Is, 1920, the condition Of
the bank as set forth in the com
plant was:
Deposits amounted to $788,s7l 81
and cash on hand. including casl
items and cash due from othel
banks, was $26,76O.18, and overdraft
were $5O,32l.02, and overdraft:
against no reserve were $23,56084.
The complaint says that on Dec. !
1920, its condition was:
1t had deposits of $737 06249, an,
had cash on hand, including casl
items and cash due from other banks
$24.sSl.9c, and overdrafts of $97,
244lS, and overdrafts against no re
serve amounting to $72,377.27.
On Dec. l3. 1920, the condition i
alleged to have been:
1t had deposits Of $727l6l.36 an,
had cashon hand Of $2l,3s7.7s, an,
had overdrafts Of S79,59S.4O, an,
overdrafts against no reserve O
S58,22l.62.
On Dec. l3, 1920, the complain
says, the assets of the bank wer
$l,526,s55.47, and that among thes
assets were loans and discounts O
Sl.l67,6S5.18, at least 25 percent O
which were worthless. 1t also say
that at least rs percent of the bal
,ance OF the assets, consisting O
overdrafts, warrants, furniture an
fixtures, real estate, ETC., were worth
less.
1t is charged that the defendan
creditors had made frequent demand
upon the bank for payment of it
obligations to them, but that tn