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FAILED BANK AFFAIRS Receiver Believes It Will Pay At Least 50 Per Cent. Howard S. Lahman, receiver for the defunct Farmers and Merchants Bank, said to a News reporter this week: "The following comparisons are made from figures taken from the reports of your receiver and other receivers to the Comptroller of the Currency for the period from 1921 to the date this Trust was created and includes only figures from failed National Banks located in Nebraska and territory immediately contiguous. "Out of 33 failed National Banks, many of which have been in liquidation from one to three years longer than this trust, 21 had paid no dividend at all up to the time this bank paid its first dividend of 25 per cent. The most paid by any of these banks was 30 per cent. The average paid by the 33 banks was 8.66 per cent. With several of these 33 banks, was quite familiar and it is therefore reasonable for me to forecast that none will finally pay out better than the Farmers and Merchants National Bank of Fairbury, and few of them will pay as well. One of the four trusts which. had paid 30 per cent at the time this trust had paid its first dividend is already closed for good. Most of the 33 trusts have been in receivership year to three years longer than this one. At least two of the nine receiverships in Nebraska will not likely pay depositors over 15 per cent in the final wind-up. "For this trust, there is no reason, yet, to doubt that depositors will receive less than 50 per cent. Collections still continue to conform quite closely to the original estimates of asset values, with some assets classed doubtful or worthless being collected steadily. "Litigation, so far, has been very favorable to the bank, both as to decisions and amounts involved, and is believed judgments obtained will much more than justify the expenditures required to procure them. "With the view not only to increasing collectibility but to avoid harmful tactics in general, many debts have been extended until next harvest. Therefore, it is not likely another dividend will be paid until August, although one may be possible earlier. The pense of paying dividend discourages paying less than 15 per cent at time. "One obstacle to the payment of dividends is the fact that two claims aggregating $50,000.00 have been filed and although they were rejected, enough cash must be held back to pay these claimants their pro rata share should the courts compel me to recognize them. Thus if were to pay another dividend of 15 per cent in addition to the one of 25 per cent already distributed, before could do so would have to have sufficient cash not only to pay 15 per cent on all proved claims, but sufficient to leave 40 per cent of these two $50,claims in the receiver's hands. Thus $20,000.00 would have to withheld from creditors whose claims have been proved. However, as soon as the case shall have been adjudicated, if in your favor, the will, of course be prorated to you along with other funds collected."
