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State Officers Order Bank at Verdon to Close Farmers and Merchants Bank Likely to Be Placed in Receiver's Hands-Worthless Notes Responsible. Lincoln, Nov. 28.-The Farmers and Merchants State bank of Verdon will probably be placed in the hands of a receiver, according to information coming from the state banking bureau. The prospects up to Friday were that the bank might be able to get back on its feet, but the loading up of the institution with about $16,000 worth of bad paper and the attitude of some of the stockholders stand in the way of readjustment of its difficulties. The bank has a capital stock of $18,000 and owners of two-thirds of its stock were favorable to putting up 100 cents on the dollar in order to put it on its feet, but the rest of the stockholders did not care to advance the amount. It is said that this minority stock is owned by stockholders in the rival bank. Ordered Bank Closed. When it became apparent that nothing could be done, Secretary Hart of the Department of Trade and Commerce instructed the president of the bank, E. E. Auxier, to close it and send Bank Examiner R. O. Chase to take charge. Attorney reto for quested General Davis institute has proceeding also been the appointment of a receiver. D. E. Lower, formerly of Lincoln but now living in Oregon, is the largest individual stockholder, having $6,300 invested. while the rest of the stock is owned by President Auxier, $800; Vice President H. N. Timmerman, $800; Cashier L. S. Johnson, $2,500 J. J. Parons, $800; and J. L. Orr, Crowley, Colo, $1,000. C. H. Hall, George E. Hall and C. H. Weir of the opposition bank own $5,800, the balance of the stock. Deposits Are $80,067. Deposits of the bank aggregate $80,067. Undivided profits are given as $1,573, guaranty reserve fund, $1,308, and these. with the capital stock. make liabilities of the bank $101,808. The book assets are loans, $73,120; bonds. $10,974. cash and due from other banks, $10,966; overdrafts, $275; banking house, furniture and fixtures, $5.713. D. E. Lower. the largest stockholder, is father of R. A. Lower. responsible for the failure of the Valparaiso State bank about a year ago and recently convicted of illegal loaning of funds to himself. According to Secretary Hart. D. E. Lower was the man who delivered the $16,000 of bad paper which the bank is holding, to the bank. while one of the notes held by the bank for $4,315 was given by R. A. Lower, but, is said to be covered by sufficient collateral to make it good.
