51de7f56Full suspension, Books examined
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Idaho Savings Bank Forced To Suspend [Republican A. P. Leased Wire] LEWISTON, Idaho, Nov. 29,-The Grangeville Savings and Trust company of Grangeville, Idaho, near here, was closed today and now is in the hands of the state department of commerce and industry. The deposits are $110,000. The bank is considered solvent but has been unable to release on its paper, officials said.
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SAVINGS AND TRUST BANK IS FORCED SHUT Local Institution Loaded on Paper and Has Not Enough Cash to Transact Business Crash Comes Monday Afternoon When Deputy State Examiner Orders Doors Closed Doors of the Grangeville Savings & Trust Co., a bank in Grangeville, were closed Monday afternoon at 3 o'clock by E. V. Beck, deputy state bank examiner, following a small run on the bank. The bank is now in charge of the state department of commerce and industry. I While Mr. Beck refused to make a statement regarding condition of the bank, pending completion of a full t report, on which he is now working, t it is declared that the bank is solvent. t DEPOSITS ABOUT $125,000 Deposits, it is said, approximate V $125,000, while loans amount to I about $198,000. Failure of farmers to meet their maturing paper is said to n have been, in a measure. responsible J for the closing of the bank. Paper A that is due remains unpaid, it is deW clared, because of the prevailing low E price of wheat, which has caused farm I M ers to refrain from selling their grain. Percy Puyear, against whom charges of fraud were filed last week, is declared to have owed the bank a large sum and other large loans had been made. d Reserve fund in the bank was low, tl it is pointed out, and on Monday sevM eral depositors became alarmed and ei withdrew their deposits, bringing the W reserve below the legal limit, which se caused the state official to close the 3 institution. P Officers of the bank assert that a ve deal was in course of completion on ci Sunday whereby the bank would be no sold to Wallace interests and that a de man was on the way from Wallace to ig take over the institution when the di crash came. If it had been possible, fil officers declare, to have kept the bank st open until Tuesday night, the sale ha would have been completed, and the st bank would not have been forced to Se close its doors. Ju Hundreds of depositors were startled fin Monday night when word was spread to that the bank had been closed. A numwl ber of Grangeville business men had ou accounts in the bank. One account th approximated $8000, it is said, and pe another $4000. Accounts of the deposfe itors are indefinitely tied up by the th closing f the bank, and have caused fiki nancial embarrassment to some, who dis had no funds in any other bank. the Officers of the bank are: on President-Henry Telcher. an Secretary-Herman Von Bargen. 00 Cashier-R. H. Russell. bu Directors-Officers and C. B. Knorr or and J. A. Bradbury. Th ca CAPITAL STOCK $45,000 Capital stock of the bank is $45,000 and surplus about $5000. The bank ter owns the banking housef which is valued at about $24,000. Rediscounts, the the it is asserte approximate $80,000. be It is declared by stockholders in the bank that the bank is not insoltru vent, and that depositors will be paid in full. The state bank examiner is expected to arrive in Grangeville shortly to take charge of the institution. It IS M reported the bank may be sold within a few days.
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Meeting Called for Last Saturday Afternoon Was Largely Attended. AGREEMENT REACHED / In Case Assets are Sold, Certificates of Deposit Will be Issued. The meeting of the depositors called over the signature of Cashier R. H. Russell ,was held at the banking roome of the Grangeville Savings & Trust Co. last Saturday afternoon and was very generally attended by those interested, the lobby being packed from the front door to the rear. n The commissioner of the state do partment of commerce and industry, S appointed by Gov. D. W Davis, was in echarge of the meeting. Deputy E V 1Beck was stationed at the front door n taking the names of the depositors as r they entered. When all had passed the It portals of the institution the commisdsioner called the assembly to order o and stated the objects of the meeting, reiterating the words of the call, "that it was for the purpose of arriving at the best method of handling the afhe fairs of the bank." isAfter going into detail regarding the n conditions surrounding the closing of le the Trust company, the commissioner k stated he and his assistants, after schecking up the assets of the instituin tion, had found it to be in exceptionhe ally good condition "for a closed bank" ), The usual procedure of liquidation ir was explained to the depositors by isthe commissioner and the proposition of signing an agreement to hold good until Jan 15, 1921, was put to those assembled, the statement being made od that propositions were then being const sidered, which, if successful, would rehis sult in the reopening of the bank with Ed new capital and new officers If the ey deal is consummated certificates of ng deposit payable 25 per cent in three shmonths, 25 per cent in six months, and rid 50 per cent in one year, would be is eir sued to the depositor 8. thus affording he ample time for the management to realize on the bank's paper. If the depositors did not care to grant this D assurance that their money would not ris be withdrawn as soon as the doors of azz the institution opened, the commissiongo er stated that the affairs of the bank ere would be liquidated in the usual manish ner, by the appointment of a receiver lay which would entail an expense of from lay $15,000 to $20,000 and require from three to four years to close up at a per centage of the face value. "There is always a strinkage, and some of orn th assets fade away into the thin atat mosphere," said the commissioner, as ngs nearly as we can quote his words at len this time. It is current rumor but no authentic information can be gleaned regarding om any proposed sale of the assets, but it eld, is known that the stockholders have C. been assess d for the par value of ich their stock, which is said to be in the interests of the depositors. eys oneA representative of th appartment of wn commerce and industry, selected by the heir commissioner, is expected to reach ring here in a few days to take charge usiof the business. red. Thre are many rumors regarding oce of currences prior to the closing of the lowbank on which we expect to have more are information in the near future. this
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PLEA IS MADE FOR TIME TO OPEN DOORS Fralick Tells of Proposition by Which Institution May Resume Business by Jan. 15 Assessment Levied Against Stockholders Equivalent to Full Amount of Holdings Scores of depositors in the closed Grangeville Savings & Trust Co. gather ed in the banking house last Saturday afternoon, in response to a call, and heard a proposition submitted by State Banking Commissioner Fralick in which possibility of the bank reopening for business by January 15 was indicated. Approximately eighty depositors signed an agreement under which, if the bank resumes business by January 15, they would accept for their deposits time certificates of deposit, paying 25 percent of the deposits within six months after the opening of the bank, 25 percent within nine months, and 50 percent within one year. HOPE To FIND PROPER MAN This proposition was submitted, it is said, in lieu of a receivership for the bank, and liquidation of the institution, in hope that between now and January 15 some person could be found who would take over the bank and resume the business. At a meeting of directors of the bank, Saturday, it was voted to levy an assessment upon stockholders of the corporation, equal to the par value of their stock. The stockholders of the corporation were given ten days, or until December 23 to meet the assessment. If it is possible to collect all assessments levied, it is pointed out, the bank will be possessed of sufficient funds to resume business on its own accord. Capital stock is $45,000, and the assessments, if all paid, would provide a similar amount. If the assessments are not paid within ten days, stockholders are granted ten days of grace in which to make the payments, and if the payments are not made at the expiration of twenty days, the stock becomes delinquent and is advertised for sale. MANY MAY NOT PAY It is hinted in some quarters that many of the stockholders will not pay the assessment, preferring to permit their stock to become delinquent. If such proves to be the case, it is pointed out, the assessment will merely clarify the situation, permit the gathering in of much stock, and facilitate the sale of the bank. Some of the stockholders, it is said, are of the opinion that their stock is lost, and they will refuse to put another dollar into the bank. They can not be required to meet the assessment. nor to pay to the institution any money, except in case of liquidation of the bank. If a receiver is appointed, and assets are not sufficient to meet the liabilities, the stockholders are liable for an amount equal to their stock, and payment can be forced. TILT WITH ATTORNEY At a meeting of depositors, Saturday. caerful check was kept at the door of the bank, lest persons other than depositors enter the banking house. Commissioner (Fralick attempted to exclude local attorney from the bank The
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G. W. SUPPIGER IS RECEIVER OF BANK MOSCOW MAN TAKES CHARGE OF BANK AT GRANGEVILLE-MAY BE SOLD. GRANGEVILLE, Idaho-That the Grangeville Savings & Trust Co., a banking institution in this city, was insolvent at the close of business November 29, is the statement made by the state of Idaho, through J. G. Fralick, commissioner of commerce and industry, in a complaint filed in the district court of Idaho county, asking the court to confirm the appointment of George W. Suppiger, of Moscow, as a special deputy for the state, to take charge of the institution and close its affairs. Bond Is $25,000 Judge Wallace N. Scales, at Lewiston, has approved the appointment of Mr. Suppiger who now is in the city, and has fixed his bond at $25,000. Mr. Suppiger is directed by the court to collect all debts and claims, sell and compound all doubtful debts, and to sell real and personal property of the bank, on such terms as the court may direct. "At the close of business November 29," the complaint reads, "the defendant did not have on hand in available funds 15 percent of the aggregate of deposits." Bank Is Insolvent The complaint further says that on November 29, and at all times since, I the bank has been insolvent, and that the bank, on Nevember 29, refused to pay sundry and divers of its 1 depositors, who demanded their funds. Appointment of Mr. Suppiger as a special deputy does not necessarily I mean that the bank's affairs will be I liquidated, it is pointed out by obI servers, but nevertheless opens the I way for liquidation, in case the bank is not sold within a short time. Mr. Suppiger now is in charge of the bank. Days May Buy The Bank I According to the Free Press there I is a report current in Grangeville IN that the Day interests at Wallace might purchase the Grangeville Savings & Trust Co., which recently closed its doors, and revive the instin tution. The Day brothers are milo lionaire mining men and bankers of r the Coeur d'Alene region and if they IN decide to take over the Grangevfile bank, they will bring to Idaho counS ty much money and prestige which I will be of distinct benefit. It is also pointed out that if these men do decide to enter that field, it will be largely on account of the mining inI dustry in the mountains adjacent to S Grangéville and they will likely enp gage principally in developing the gold fields, using their financial interests as a foundation.
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PAYS ANOTHER 10 P. C. Receiver Suppiger, in charge of the defunct Grangeville Savings & Trust Co., at Grangeville, Tuesday ordered the distribution of another 10 per cent dividend to depositors of that institution. This makes the third dividend, of 10 per cent each to have been declared since the bank closed its doors.
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BANK PAYS 10 PERCENT MORE TO DEPOSITORS G. W. Suppiger, special deputy in charge of the defunct Grangeville Savings & Trust Co., this week mailed dividend checks to depositors for 10 percent of the amounts of their deposits when the bank closed. The last payment makes 40 percent of deposits paid by the receiver for the closed bank.
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G. W. Suppiger Visits Moscow Attorney G. W. Suppiger, receiver for the defunct Grangeville Savings Trust company, is in Moscow today, having been called here to meet J. G. Fralick, state commissioner of finance. Mr. Suppiger is uncertain as to how long he will be required to remain in Grangeville in charge of the affairs of the institution.