The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-20
BANK MERGERS
: SEEN IN STATE
BY OFFICIALS.
One of Several Likely Abb
sOrptiOns To Cut Number
of Banks Reported
INTEREST RATE CUT
Commission Lowers Maximum
Banks May Pay in LaMoure
Mcintosh, Logan Counties

The merger of several banks in
the state and petitions to the De-
pOsitors Guaranty Fund Commission
to lower the maximum interest rate
which banks may pay in several
counties are among the outstanding
developments in the Improvement of
banking conditions in the state. ac-
cording to information from the state
banking department today.
The absorption by the Citizens
State Bank of Enderlin, Ransom
county, of the First State Bank of
Lucca, Barnes county. is the first
of several mergers expected, Gilbert
Semingson, state examiner said.
"This move comes through recon-
me (dation of the banking depart
ment and is in line with the policy
of reduction OF the number Of banks
in the state, where practicable, in
order that the institutions may be-
come stronger and be better able to
serve their communities" Mr.. SEM
inEson said. "There are several more
consultations likely to materialize
in the near future"
The Citizens State Bank of Ender-
lin, which takes over the assets and
liabilities of the First State Bank Of
Lucca, an open bank, and the latter
bank, both are controlled by the es-
tate of the late Harold Thorson OF
St. Paul. H. IngwaldsOn Of Fessen.
den is president of both institutions,
He is one of the executors of the
Thorson estate.
Lu> is but seven miles from En-
derlin, both being on the 500 line
People of Lucca may do business
with the Enderlin bank without diff
ficulty, Mr.. Semingson.
Lower Interest Rate
The Depositors Guaranty Fund
Commission, in session here, an
nounced that on petition from banks
it had reduced the maximum interest
rate banks may pay in Logan, Nc
Intosh and LaMoure counties to five
percent. The Commission has been
informed that within the next few
days large number OF petitions will
be received asking for a reduction of
banks may pay in other counties
The petitions are held the direct
result of vastly improved banking
conditions.
Under the law, it was pointed out
the state banks under the guaranty
fund may pay four percent interest
Or more to depositors, the Guaranty
n
them from paying more than per-
CENT, the present maximum. but can
not order them to pay lower rate
than 4 percent. When the Guaranty
Fund changes the rate it must be
made uniform in an entire county.
Petitions were received for a re-
duction of the maximum interest
rate in the three counties
Mcintosh and LOgan-and the result
ant decision of the commission to
place the maximum rate at per-
cent in these counties announced.
Similar action on petitions from
many other counties is expected.
Paying Dividend
The DepOsitors Guaranty Fund
Commission is continuing the work
of distributing the 10 percent pay
ment it ordered to depositors Of
banks closing before July l, 1928.
The immense amount of detail work
has made the distribution very
slow, C. B. Mcmillan, of the COM
mission, said today. Dividends have
been distributed thus far to depos-
itors of Is banks, and this week
dividend checks will 60 to depositors
of the First Security of Carpio,
Bank of New Rockford, and State
Bank of Milton. 1t probably will
require two months to complete pay
nAent of the dividend.