The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-11-17

ACCEPT PLAN
PRESENT TED
Proposal Explained in Detail
BY DR.. L. A. Schipfer 10
Satisfaction Of All
HELD BOOST. FOR CITY
SO Per Cent Of Deposits Will
BE Available For Use When
Plan Is APPROVED

Unanimous approval was given BIZ
aepositors in the closed City National
bank who attended the mass meeting
AZ the city auditorium Tuesday night
70 the proposition worked out by The
aepostors committee for the ligui-
aation OF the affairs of the bank, and
nefore the building was emptied
hundreds of depositors had signed the
agreements provided.
Inc proposition as presented to the
deposltors, when approved by the
comptroller Of the currency at Wash
ington, will do away with the neces-
sity OF receivcrship for the insti
tuition and will put at least GO per
cent OF the banks deposits into cir
cuiation IN the community almost i'm
mediateIy, after the necessary formal
tiles are complied with.
DepositOrs, in signing the agree
ment, agree to accept 60 per cent of
their claims for deposit in the CITY
National in the form of like deposi,
IN the First National bank Of Bis
hlarck and to assign the balance of
their claims, or 40 per cent, 10 a De
positors' Holding company, formed by
the depositors for the purpose Of liu-
uidating the assets Of the City Ma
tionai bank. The depositors will be
given certificates of stock by the hold
ing company and will in time be paid
their pro rata share Of the balance.
AS the assets are realized on Mem
berS OF the depositors' committee be-
heve that. with one or two gpod crop
years IN this vicinity, the Mpositors
can be PAID 100 per cent, and there
may perhaps be !. surplus in the end
fD hp Eh IA 4.
special assessments which they will
advance according to law.
Judge Burke Talks
H. l.. Readc, chairman Of the meet.
ing, explained that the second meet
ing had been called because the com
mittee had finally arrived at Il plan
which the members believed would be
OF great benefit to the citizens oI
bismarck and vicinity. He called on
Judge John Burke, who said the com.
mittee members had been chosen be-
cause they were noted for their Ron.
"sty and integrity and their business
AFFINITY was unquestioncd.
The committee is here tonight re-
porting that in the event you approve
81 their proposition you will get GO
per cent of your deposits available for
use IN the very near future" said the
Judge. This committee wouldn't rec
ommend this plan unless il believed
that 1t is the best thing under tE2
circumstances to do. IL this plan is
not approveh the bank must ro
through the rcccivership and the
deposltors might not get rs much in
the end as they will get now i'm cash
under this agreement. The banks
frozen assets may be lquidated with
in = year or two il crops are favor
able and then the depositors, under
this plan, have a chance 10 be paid
in full"
Schipfer Explains Plan
Dr. L. A. Schipfer. who. had served
diligently with the depositors' com
mittee in working out the proposal,
was called upon to explain the figures
shown on 4 large board. He pointed
out that the total deposits arc approx
imatcly $SOl 900. To cover these de-
posits the following fairly accurate
figures have been arrived at:
Cash on hand, after the banks bor-
rOwed money has been paid, $35 900.
Special assessments on stockholders.
payment Of which has already been
arranged for, $4,000.
Payment of personal bonds given by
bank officials to guarantee city and
school district deposits, agreements
Tor which have already been signed,
$4,000.
Advanced by the First National
bank on part of the notes held by the
City National, $225, 900.
Money to be raised on the City Ma
tional bank building through first and
second mortgage, 100000.
Forty per cent Of the deposits which
will be assigned to the holding COM
pany, 100000.
Loan upon the assets Of the City
Loan and Investment company, which
are valued ut $S44,OOO above all liza
bility and all Of which will be made
available to the holding company.
$25, ,lOO or as much more as is needed.
Officers Of the City Loan and In
vestment company have agreed to put
in every asset the company has if nee
essary in order that the depositors
may be fully protected, DR.. Schipfer
explained, stating that the company
has unincumbered assets Of over
S9s,OOO.
Believes It Will Pay in Full
II feel sure that under this prop
osition the holding company will BE-
able to liquidate the banks assets in
sufficient amounts over a period of
q few years to pay the. depositors
their balances of 40 per cent in full
and to leave something whereby the
stockholders and bondsmen may be,
reimbursed for the money which they
must advance in the form Of special
assessments and the payment Of per-
sonal bonds," said DR.. Schipfer.
Col. G. B. Little, president of he
First National bank, and other Off
GERS Of the bank was given q great
deal of credit for assisting the COM
mittee in formulating q plan where
by the City National bank might be
liquidated in order that depositors
might have part Of their money
available soon. rather than 10 await
the slow processes Of rsceiyefship.
Col. Little assisted materially fn
working out the plan, IL was said.
Officials Of the City National bank
and the City Loan and Investment
company have also aided the com
mittee In every way possible. the
speaker said.
After number Of questions had
been asked and answered. Jud1e VI