The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-05-06
Dozens OF VII AGES C0MPL LETEL Y SUBMERGED
Negotiations Completed For
Sixty Per Cent Payment to
Depositors Of City National

ley and Will Be Paid at
First National Bank-Set.
tlement Exceptional Both
as to Time Completed and
Initial Payment
Approximately $492, 900 will be paid
to depositors Of the closed City Ma
tiOnal bank here as soon Us authoriza-
tion to begin payment is received
from the banking officials at Wash
ington, l. was announced today by
officers Of the Depositors' Holding
company, corporation organized to
liquidate the affairs of she closed
institution.
Negotiations to this end have been
in progress for several months and
the final transactions between the
holding company, the bank receiver
and the First National bank were
completed today. The total which
will be available in the near future
represents GO per cent of the deposits
in the bank when it closed October IA.
last. Payment will be made by the
First National bank. the depositors
receiving at that institution credit
in like kind for 60 per cent OF the
deposits they had in the City National
bank. As a result Of the arrange
ment persons who had checking ac-
counts at the City National will be-
given checking accounts at the First
National; persons who had savings
deposits at the City National will he
given savings deposits at the First
National, and persons having certifi-
Gates Of deposit at the City National
will be given certificates Of deposit
at the First National.
Certificate for Balance
In addition to this, each depositor
will receive stock certificate from
the Depositors' Holding company
which will represent the balance of
40 per cent. Payment of this balance
to the depositors later will depend
considerably on Gro? conditions in
this territory during the next few
years, as considerable amount of
the company's assets is in land. hut
the directors are very hopeful that.
with favorable conditions. at least the
greater part of the 40 per cent bal
ance, if not all Of it, will be returned.
Checks made out to the individual
depositors for GO per cent Of their
deposits have already been made out
by j. NJ. Riley, the receiver. and are
now in the hands Of the comptroller
at Washington. awaiting word from
here that all details Of the proposed
liquidation plan have been completed.
This word was sent to Washington
by wire today. and, according to Mr.
Riley, the checks should return here
bv the latter part of next week.
The checks are regular government
dividend checks, payable to the credi-
tor only, at the First National bank,
Mr.. Riley explained today. When
the checks are returned here, each
depositor must call at Mr.. Riley's Of
flee in the City National bank build
ing, sign a receipt for the check and
obtain his stock certificate in the
holding company. The check must
then be taken by the person to whom
ISSUED to the First National bank.
where the balance Of the transaction
will be completed.
An Exceptional Settlement
Settlement of the banks affairs
on this basis is exceptional, not only
as to the amount which will be re-
turned to the dcpositors Immediately.
but particularly as to the short space
of time in which the negotiations
have been completed" said Mr.. Riley
today. NThrough this negotiation the
holding company has been able to
gain possession Of several hundred
of dollars in assets which
were not in the possession of the re.
ceiyer, and this has been Of decided
benefit to the deposit0rs."
Officers and directors Of the hold
ing company expressed themselves to-
day as very much pleased that the
negotiations had been completed so
that the banks depositors will re-
ceive go per cent Of their money soon.
These arrangements have been possi-
BILE only because OF the hearty CO.
operation extended by p. c. Reming-
ton. president Of the closed bank; J:
M. Riley, receiver; and officers of
company directors state. "Very few
and it was only possible here be-
everyone interested said W. H.
VCVV1 PACSlOCut Va Vic uVSAAuk WIN
pany. The directors were also loud
in their praise Of the work done by
MI. Roop, secretary and manager Of
the holding company, in working out
the details of the liquidation plan SO
Credit Given First National
Success Of the plan was made pos
sible through the willingness Of the
First National bank to assist, the
directors say. The bank did not take
over any Of the closed institution
assets, but advanced the holding
company portion Of tae so per cent
payment on the assets held by the
latter. The holding company was
thus able to raise the $4,000 needed
to pay the so per cent dividend, or
the basis of the closed banks assets
and other outside assets which were
secured.
"The First National bank has been
very glad to have been able to place
its resources at the service of the
Depositors' Holding company and
the depositors Of the City National
bank, and in this way to assist in
working out the liquidation OF the
institution. ON the plan which has
been carried through by the holding
company and the roeeiver." said ]. L.
Bell, vice president of the First Ma
tional bank, in commenting today on
completion of the negotiations.
Shortly after the bank closed last
October, q depositors' committee was
named ut a mass meeting Of the
banks creditors The committee held
aeveral meetings and finally decided
nDOn the hOl0InR corn many ulin AZ
the most logieai. This company was