The Bismarck Tribune Newspaper, June 2, 1925, Page 8

PAGE EIGHT CLAIMS TOTAL $680,962 IN BANK SUITS Administrators Williams County Bank Named Defendants one filed in the name , receiver of closed against Williams Williston, Civil actions ct LR. Bai banks, have been instituted former trustees of the County State Bank a N. D,, to recover $680,962.93 with in terest from Dee. 13, 1920. This 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 Williams county, asks for $12: with interest from Dec. 13, 16 e amount of county funds on deposit in the ba The contention of the plaintiffs is that during the three years the bank was operated under the management of J. FP. Desmond, one of the agents of the eastern it was “no bank at all,” but strictly a private institution which was used o “further the interests and bene-| fit the creditors to the expense of the| depositors.” First service in the case was had on C. T. Jaffray of Minneapolis, | president of the Soo 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 | night, just before he addressed a) meeting of the Commercial club in| that city. Many Defendants _The defendants in the actions are: | National bank of St. Paul,| st National, bank of Minneapolis, orihfield National bank of ‘No rth- field, Minn., the Ulland, Meale ley company of Minneapo! Ctizens Commercial trusy compan | of Buffalo, N. Y., the Union National bank of Minot, } berg, Ed. Schutenberg, George F.| Bates, 0. A. Drews, J. P. Desmond} and A, W. Bollum. The individuals named are alleged to have been|, agents of the creditor corporations | taking over the Williams Count State bank and in operating it. rhe suits were instituted by Er- nest A. Francis, state's attorney of Williams county, and William Lemke of Fargo, who, at Mr. Francis’ quest, was named special a state’s attorney. U, Burdick of Fargo is associated (cm, After the county begun, Mr. Baird instru ancis and Mr, Lemke to bring’ an action in his be- half to recover the entire amount oc 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 over $400.00, and that they knew that the bank was “hopelessly insolvent under the banking laws of North Dakota.” The condition of the bank on Nov. 1, 1920, is set forth as follows in the complaint: Tt had deposits of $823,319.21, and had on hand cash, including cash items and cash due from other banks 25,963.94, and overdrafts of $26,- 147.89, and overdrafts against no re- serve amounting to $181.95. On Nov. 13, 1920, the condition of the bank as set forth in the com- plaint was: Deposits amounted to $788,871.81, and cash on hand, including cash items and cash due from other banks, was $26,760.18, and overdrafts Were $50,321.02, and overdrafts against no reserve were $23,560.84. The complaint says that on Dee. 1, 192¢, its condition was: : It had deposits of $737,062.49, and | had cash on hand, including cash items and cash due from other banks, $24,881.92, and overdrafts of $97, 244 d overdrafts against no re- Serve amounting to $72,377.27. t On Dec. 13, 1920, the condition is! alleged to have been: It had deposits of $727,161.36, and had cashon hand of $21,387.78, and had overdrafts of $79,598.40, and overdrafts against no reserve of $58,221.62, | On Dee. 13, 1920, the complaint | says, the assets of the bank were | $1,526,955.47, and that among these | assets were loans and 7 Tacnants of | $1,167,685.18, at least 25 percent of | which were worthless. "Tt also says | that at least 25 percent of the bal- | ance of the assets, consisting of | overdrafts, warrants, furniture and | fixtures, real estate, etc., were worth. | less. It is charged that the defendant | creditors had made frequent demands upon the bank for payment of its obligations to them, but that the ———————— WHY SKINNY FOLKS TAKE COD LIVER OIL Gain 5 Pounds in 30 D: Your Money Bac! Because it is richer in vitamines than any other food in the world. Doctors prescribe it for rickets and anaemia in children and for tuber- culosis, malnutrition and convales- cence in grown up pei As a producer of weight—good healthy flesh—there is nothing in the world so good. tasting, horrible _. But it’s nast ‘smelling stuff that often upsets the stomach so doctors now are order- ing cod liver oil in tablet form. You've got to take on weight when McCoy’s Cod Liver Compound Table’ XS seken regularly—you simply can’t so good that if it Caran put live pounds of good sh ny skinny man or aeeeet in thir. days th Coy Laboratories of jew York authorize All druggists to ein the price fan p@d for it. Be sure to ask for McCoy's Cod Liver Oil Compound Tablets—sixty One wom: by | per of Closed itor institutions, |» jcient funds to st during that to meet thes the de bank never was able demands, and that knew that the bunk we bes ime. € rge Threats ber, 1920, the defendants compelled the tors, by threat f prose closing of the bank and othe to dh them a majority bank. Tt compelled the nit them to take ove tha oh te v nancial dif. a solve! it is charged, were made for t pose of “inducing the plaintitf the public to deposit their funds” the bomk, and for “defrauding plaintiff and other depositors wt the tunds It is charged that the | placed ui the aay iol of the bank as a subterfug s dum mies, pretending to hold directors meetings, ete, and to vote the stock They are alléged to have controlled the the directors times, not in behalf of the Williams County State Bank, but solely in their own interests, After Desmond was made manager, it is charged thyt he took full chi resources of the ons of bank in behalf of nd that the directors | i officers revented from! taking any part whatsoever in the affairs of the institution. Insolvent At. Time The complaint declares the bank was hopelessly insolvent when Des- mond took charge, ars thereafter the defendants erated it as a bank and transacted a banking business; that during this | time they published advertisements to the effect that the bank was sol- vent, that they would furnish suffi- ighten out its financial difficulties and that they | would protect all depositors to the full amount of their deposits; that, by virtue of these representations, the county and the public deposited riod a total of $680,-, that they prom- of these deposits on ae al ank aeiecd or whee due hoe XD, Erie A, Thor. Pite frequent demands, the defend- at ants have “wholly retused ana neg- lected to pay the same or any part ed that the bank was your wits are keener and your nerves are steadier with Wrigley's to help. Soothing and sweet to smokers -refreshi when youre “dry ~ for that stuffy ling after hearty meals. Wrigley’s will stim- ulate appetite and digestion, remove bad taste, and keep you fit. It cleanses St Of All - dants the affairs e it us a pri- ng in return - counted fo defendants 2, appropriated by at all) we of the assets and! but that for three | closed on June 11, 19% and that the ppropriated and the defendants to their their control and at there are no to pay the plain- ateral out of the | mortgages and bills receivable sregating approximately among thi collater loans they and pledged for| we and for over- sum of approxi- ind the entire col- ted and appropri- r uwn use and not ac- The Dec. 13, f the by. laint declares , when they took charge ank, the institution had louns and discounts amounting — to{ | $1,167,865, and that all these loans and discounts were dissipated and. the defendants ex- cept approximately $36,000; that the bank had warrants and claims $144,386 on Dec. 13, 1920, but that| all save about $4,000 was appropri- ated by the defendants, and that, in fact, the assets and resources of the} bank were ‘sold to the defendants ithemselves or to their friends and ‘business associates, and taken out of the institution con LOANS REDUCED }. Grand Forks, N. D, June 2- In speaking of the financial situation of the state of North Dakota, C. T. \Jaffray, chairman of the board of [rectors of the First National bank of Minneapolis, that whereas loans in this state through his bank had | amounted to $11,000,000 a short time ago, it was now carrying less than $1,200,000 in North Dakota loans. he Agricultural Credit corpora- ion of which Mr. Jaffray is pres- ident has loaned $6,000,000 in this state for the purchase of livestock. Of this amount losses have been so small as to be negligible, he said, and | thousands of farmers have been en- abled to place their affairs again on a solid footing. Of the 4.000 head lof cattle purchased through the as- 2,500 were placed in North 000 of the 40,000 head taken by North Da- ‘on, Dakota and 5, ‘of sheen were kota farmers. Mr. Jaffray was principal speaker the monthly commercial club |membership dinner which was held here Thursday night. f READ “TRIBUNE WANT ADDS | $300,000, jtributers, announces the nl ered jnto a trus it in price of the i t had permitted the| dus volume of sales of this model. {this territory and every owner is a of | struction, the Cost is Small’ croabdvens rare ‘sedan $1,195 at Bismarck, the Lahr | Motor Sales company announced this | morning, and leaves the six-cylinder {deluxe sedan at $1,350, Bismarck, that on! THE BISMARCK TRIBUNE SIX CYLINDER | AUTO PRICE IS REDUCED A telegram from the Willys-Over- land company to the Luhr Motor Sales company, North Dakota dis- reduction } Overland six eylinder | height withe Gone lof some: American |ihasiBeun® purpdesta’ “byw 28) story but a building in Buenos Aires| structure just completed in Monte- stories, including its tower,| video. The Uruguayan building rises finished during the past. year, and| 338 feet, and in addition to establish- |then the highest in South America,| ing a new South American skyscraper ul tl ALASKA Easy to Reach cay, 4 earn in each direction from Meas lle cruise through the ne Dictureague “ost A ihe Totem Fole Route-to the Lai ‘The yacht-like Canadian “Princess” st there in luxurious comfort. Ui | reduction of "390. The reason stat- ed for the reduction is the tremen- This price makes the six-cylinder side Pe Victoria. lid ips Meals and Berth Included See Banff, Lake Louise, Emerald Lake and ee “each the great glacier, on the way, fe det jook early.” Comp! application at Canadiaa Pacific Office 611—2nd Avenue, South Minneapolis, Minn. H. M. TAIT General Agent jun. “The six-cylinder Overland 3 you made good,” Mr. Lahr said today. “We have put out many of them in booster, There are few people who realize what an exceptional cur the Overland six is and how far ,ad vanced it is in engineering and con At the new price of | $1,195, Bismarck, this model cer- tainly leads the field in cars at any where near the price. SOUTH AMERICA STARTS TO BUILD SKYSCRAPERS Buenos Aires, June 2.—(AP)—The cities of the River Plate, Buenos Aires and Montevideo, are entering | into an era of sky scraper competi- tion in office building. The edifices are not comparable in Smash the Toll-Gates! Through-Route Your Grain to Profitable Markets ABANDON the old round-about expensive process of marketing your grain. Prevent the passing back and forth through many hands, eacl*taking its toll or making its profit. Advance one step closer to your market —the ultimateconsumer. (3: better returns for yourtime, labor and invested capital. 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