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HOLDING COMPANY PROBABLE FOR FAILED BANK DEPOSITORS
A meeting of depositors in the Farmers State bank, which closed its doors on March 11, was held at the I. O. O. F. hall last Saturday even-' ing and many of those who had money in the bank were present. A short time ago it was thought a deal would be made whereby the Dalton State bank would take over all assets and liabilities of the closed institution and pay the depositors 75 percent. This deal did not materialize, so a contract was drawn submitting the proposition of forming a holding company of depositors. This was discussed Saturday evening and nearly all the depositors present were favorable to the plan. The proposed company, before it may be called such, must have in the neighborhood of 95 percent of the deposits signed. The company would then take over all assets. Three trustees were named, these being L. W. Dirks, G. H. Worth and J. M. Kreader. They are to employ a collecter or take any course they deem advisable in liquidating the paper, disposing of real estate, etc. These trustees are to draw no salary, but will be paid actual expenses. Within thirty days after completing the organization, the collector is instructed to pay a dividend of at least 25 percent, this sum being decided on when it was learned that there is nearly enough etc. in the bank now to pay that much. Mr. Wiand, agent in charge of the bank now, stated that the contract drawn up for organization purposes states that the stockholders will pay liability in the sum of $5,200 in cash, with an additional $4,500 to be paid in by one stockholder who accepts from the bank a piece of real estate valued on the books of the bank at $2,400, and a personal note of $2,000 on a person who has left the town. Right here the Delegate wishes to state that up to this time only about 25 percent of the liability has been paid into the guarantee fund by stockholders in failed banks in the state, and It is a surprising thing that that much has been received. So it would seem that this sum coming from the stockholders now is a matter of vital importance to the depositors. If the holding company is not organized and the bank is thrown into the lap of the commission, no demand will be made upon the stockholders until the available assets of the bank have been exhausted in paying claims. That time will not come for two years, unless the business of the bank can be closed in a shorter time than that, because two years are allowed a receiver to complete the business of winding up the affairs of the bank. No receiver has yet been appointed. The guarantee fund is behind in its obligations to depositors in failed banks in the state to the extent of from ten million dollars to twenty million dollars-depending upon the source of information available. In the opinion of this writer, this deficit will not wiped out for many years, if at all. In event it is cleaned up the depositors in the first banks to fail after the deficit was established will be given priority claims and this would put depositors in the local institution near the foot of the list. By and large, it seems that any route open is preferable to permitting the affairs of the bank to be handled by the commission. Mr. Wiand, Mr. Worth and Mr. Dirks firmly believe that at least 75 percent will be returned to depositors, they basing their hgures on bids that have been made on some of the real estate. A total dividend of 75 percent within A year 02 two would be more valuable than to wait a number of years for 100 percentand a gamble if that much will ever be paid depositors. It is doubtful If handling the matter locally will entail any more, or as much, expense as would be charged if the commission took charge. Measrs. Dirks, Worth and Kreader have been working this week on securing the signatures of depositors and extra good progress is reported. Members of the holding company, in other words the depositors, waive all claim on the guaranty fund. Perhaps some of the depositors have not yet been interviewed by the trustees and they are asked to call at the bank, read the contract and sign if they wish.
A year ago last December officers took a 250 gallon outfit which up to the present time had held the record. The record was surpassed last Saturday when a still of double that capacity was taken by State Deputy Sheriff E. E. Clark of Bridgeport, Deputy Sheriff Atwood of Kimball county, Deputy Sheriffs McNeff and Barnes of Dawes county, Constable Frank Cherick of Mitchell and Erick Johnson of Johnson precinct. The plant, which included everything necessary to make up a firstclass distillery, was taken from the old Booth place in the southwest cor ner of the county, the same place where the one was found fifteen months ago. The farm and outfit is owned by Fred Reger of Denver. Reger was at the place when the raid was made, loading a day's run to take to Denver. The men in charge of the manufacture are Fred Reinhart, who lived on the place, Frank DeBell and John Shane of Denver. A woman, who gave her name as Ethel Barlow of Denver, was at the place and taken into custody by the officers. All are now in the county jail here. They were arraigned in county court Monday, entered a plea of not guilty to each and all of the eight counts, and were placed under bond in the sum of $2,000 each. The bond was about to be furnished when a telegram was received from Federal authorities to "hold everything," men, still, vats, liquor, mash cars,
The still is of the double-process type with a cooking :apacity of 500 gallons of mash and a daily output of 150 gallons of liquor. Thirty-one five-gallon kegs, a day's run, was being loaded by Reger at the time the officers arrived. Seven thousand gallons of mash was made up. There were 600 pounds of sugar and other ingredients taken, in addition to Reger's Hudson car and a Chevrolet truck, which is registered in the name of Albert Masterinna of Denver. Reger's car is registered in the name of Herbert Burrows, a garage
It is not believed that any of the liquor was sold in this vicinity. Reger is a big manufacturer and supplies retailers in Denver. At $6 per gallon the output of the still would be $900 per day. It is thought that they had been running about two weeks. Rhinehart has been living on the place for several months and pretended to be a farmer. They had in 25 acres of wheat. Reger was to receive a share of the crop.
