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Another Crooked Banker. ELLENDALE, N. D., Dec. 29.HH. O. Barrett, president of the Farmers and Merchants State bank, which assigned the 24th inst., has been arrested, charged with receiving deposits after he know the bank was insolvent He was arraigned, waived examination and was held to the district court in the sum of $500. Many ugly rumors are afloat in connection with the collapse.
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Bank President Arrested. ELLENDALE, N. D., Dec. 28.-Many ugly rumors in connection with the recent Farmers' and Merchants' state bank failure are afloat. President Barratt was arrested on the charge of receiving deposits when he knew the bank was insolvent. He waived examination and was bound over.
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Barret Arrested. ELLENDALE, Dec. 28.-H. O. Barret, president of the Farmers and Merchants State bank, which assigned on the 24th inst., has been arrested, charged with receiving deposits after he knew the bank was insolvent. He was arraigned this morning, waived examination and was held to the district court in the sum of $500. Many ugly rumors are afloat in connection with the collapse of the bank.
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the case of the suspended Farmers' and Merchauts Bank of Ellendale, the depositors get 25 per cent on deposits and 7 per cent. interest. Look out for mushroom banks.
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NORTH DAKOTA BANKS. Some Recommendations Made by Public Examiner Wallace. Much valuable information about North Dakota banks and the state banking law is found in Public Examiner Wallace's report to the Governor. The report claims that the law has been of great advantage to North Dakota, having added $1,000,000 to the state's assessed valuation. The public examiner recommends that the minimum capital of the state banks should be increased to $10,000. It is also recommended that the public examiner should be given the same authority over state banks as the comptroller of the currency has over national banks, viz., to at once take charge of and appoint a receiver for banks found insolvent. Regarding usury the examiner recommends an amendment to the present law, which he says is violated every day. He suggests that the state and national banks should be placed on an equal footing in this matter. It is recommended that the state banks be required to pay a small sum for examination. according to their capital stock, and that an increase of $2,250 for necessary clerk hire and expenses be allowed by the legislature. The report says four banks have gone out of business during the year, or have been succeeded by other banks. The only failure was the Farmers' and Merchants' bank of Ellendale, which was due to inexperienced banking methods and to the purchase of assets far in advance of their value. The stockholders were about the only losers. Regarding the E. A. Mears institutions, about which a great deal of unfavorable comment has appeared in the northwestern press, the examiner goes into some details in stating the conditions of these banks. They are located at Fargo, Minot, Towner, Rugby and Edgely. He states that "the assets are poor and nothing like charged value can ever be realized from them: that the bills receivable are long past due; that the bond accounts consist of bonds secured by real estate mortgages, many on claims that have been abandoned, and that, unless a great rush of immigration takes place, these securities. in his opinion. will not bring fifty per cent. of their face value." The report declares that no one can ascertain the real condition of these institutions without all are examined at the same time and much additional information furnished by eastern stockholders. The public examiner states in conclusion that no power in the state law gives him the right to force the appointment of receivers for such banks, and that the stockholders themselves have their recourse in the courts.