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Banks, with Deposits $1,300,000, Closed by Bank Examiner Monday shell was thrown into while the remaining ones would be compelled to await liquidation of all Stearns county Moonday assets or re-organization when the news spread that line of banks had been "With these probabilities in mind by order of State Bank and with a view of protecting the inA. J. Veigel. The banks terests of all depositors without exception we have reported to and conwere the Security State Melrose, The Farmers State sulted the State Banking Department. Grove; New Munich State The immediate closing of all banks of the Bank St. State was considered the proper step to take in order to do justice to all concerned. to the death of Mr. Hilbert "We are well aware of, and exago, these banks were in connection with banks at ceedingly regret the inconveniences Ekaloka, and Pebona, Mont. caused by the tieing up of all funds ousand dollars worth of the entrusted to us. We have particularly in mind those of limited means by the Montana banks to the Stearns county who have part or all of their savings with us. of the unusually atrate of interest which they "Special representatives of the Shrunken land values and Banking Department now have charge for five years have comof the banks. These men will confrozen the securities carried duct a thorough examination, deterStearns County banks. mine as nearly as possible the exact the death of Mr. Hilbert, conditions of the banks, and then proceed to take whatever action is for Spieker, president of the SeState Bank at Melrose, E. the best interests of the depositors. cashier of the Meire Grove It is quite probable that a meeting of all creditors and stockholders will be and H. J. Terhaar, of the New Munich State called for the purpose of explaining named as executors of and discussing all matters in detail estate, but because of and for the further purpose of formuin Montana have faced lating plans by which there will be a to endeavor in wall exan minimum of losses, if any. estate from its difficulties. "As above stated, we sincerely reclosed were officered by gret the inconveniences caused. We men: have in the past done everything withState Bank, Melrose-J in our power to safeguard all funds left with us and it will be our aim to Pres., H. T Loosbrock, H. C. Stalboerger, cashprocure for our creditors the quickH. H. Rehkamp, assistant est and most satisfactory settlement possible under the circumstances. "Dated, November 26th, 1923. Bank of Meire Grove-J. "John H. Spieker, Melrose. Pres.; J. H. Nathe, V. "Herman J. Terhar, New Munich. cashier. Ortmann, "Edward Ortmann, Meire Grove. Munich State Bank-M. Pitzi, "Robert A. Kuhl, St. Martin." asper Zierden, V. P.; H. J. -a cashier, and J. M. Terhaar, ashier. Mon was pay day for the creamof Bank Martin eries at Meirose, Meire Grove, and Va! New Munich, and $27,000 belonging Pres.; H. J. Terhaar, V. P.; R. cashier. 0 these three co-operative creameries vere tied up in three of the four Security State Bank of Mel anks closed. The directors for the a capital stock of $50,000 hree creameries affected. made ar10,000 surplus. The New angements and borrowed the necesbank has a capital stock of ary funds from the Borgerding and $5,000 surplus. St. State Bank at Melrose, paying the Bank has a capital stock of Carmers for their October butterfat. and $3,000 surplus. The The Herald understands that a bank has a capital stock number of Melrose citizens had conand $3,500 surplus. siderable sums of money deposited in last call for a statement by the Ryegate bank on time certificates Banking Department because of the attracttive rate of 1923, the four banks in quesnterest paid. deposits as follows: Security The Herald editor visited Melrose Melrose, $589,000; FarmWednesday and talked with a numBank, Meire Grove, $206,ber of business men. There was no Munich State Bank, $309,excitement and neither has there Bank of St. Martin, been, and to those who were familiar or a total deposit of $1,with the situation the closing of the banks had been looked upon as inollowing joint statement preevitable. On every hand profound the active managers of the will be of interest to sympathy is expressed for Mr. Spiekerald readers: er and his co-workers in Melrose and the other banks, and there is no critundersigned, as active offiicism of mis-management on their this means of apprising editors of the facts in conpart; in fact, it is generally admitted that the executors of the Hilbert with and the causes that have to and have resulted in the estate has made every human effort of the above named to get away from the Montana affiliation. the close of business on The late Dr. Pierre Hilbert owned 1923. 24th, a controlling interest in each of the the time of his death, durbanks closed and the officers in month of September 1921. charge were compelled to follow out A. Hilbert was extensively in the four banks named, his instructions in taking over the Montana securities. Each one of the in three certain banks in four banks was however a separate of Montana, which fact, we and distinct corporation. is generally known through& county. While SO interested In conversation with John E. Welle, having these connections, a cashier of the Borgerding State Bank amount of Montana at Melrose, Wednesday afternoon, he placed in his Minnesota stated to the Herald editor that in the direction of Dr. Hilbert. spite of the closing of the other crop failures in Montana. banks not one account had been withdeath of Dr. Hilbert and drawn from the Borgerding State abnormal and adverse condiBank. At the close of business on brought about the recent November 26th, the Borgerding State one of the Montana banks Bank carried deposits of $872,125,encountering of serious dif82. by the remaining two. The account the for nditions slowThere is much speculation as to a large amount of Montana just how badly the banks are inby the Minnesota banks volved. It is confidently expected depreciation of the security that all of the banks closed will be connection therewith to such re-opened, but it may take some time that a portion of these to iron out all of the difficulties, and now be considered as of it is quite probable that it will revalue. The difficulties enquire heavy assessments of the capby the Montana banks ital stock of the banks. materially lessened the posThe Herald understands that the of liquidating the Montana by the Minnesota banks. closing of the Stearns county banks same beafter difficulties, was precipitated by the failure of the known to the local depositors Ryegate State Bank in Montana last undoubtedly would become week. Following the close of the near future-would lead Ryegate bank the Montana bank exIrawls until reserves in the aminer made a demand upon the Hilbanks were depleted, with bert estate for a heavy assessment that the Minnesota banks on the capital stock of the Ryegate ventually be forced to susbank owned by the esate. The ex-
