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SMALL BANK AT CROOKSTON FAILS New Guaranty Fund Commission to Appoint Receiver to Take Charge. Hart Says Failure Due to Exhaustion of Credit and Cash Reserve. Another small bank failure in northern Nebraska was announced by Trade and Commerce Secretary Hart, Monday noon, in the closing of the Bank of Crookston, Cherry county. A telegram received from G. S. Eastman, state bank examiner, who was sent there to check up the institution, said that it was closed and in his hands This is the first failure to occur since the new guaranty fund commission was organized. Under the law now in effect, that body will appoint a receiver to take charge. The Crookston situation was fully discussed at last week's meeting of the commission, Secretary Hart said. The commission is to meet again on May 29, but a receiver may be installed before that date. Action has been taken by the guaranty fund commission levying a special assessment on all solvent state banks to raise $100,000 for a conservation fund to be used in assisting weakened banks to struggle through their financial difficulties. This will be available in the near future. Whenever aid is extended to a bank, the commission will have authority to supervise its business until the money is repaid to the conservation fund and the bank is on a solid footing once more.
