Article Text
Farmers State Bank Depositors Meet DEPOSITORS COMMITEE ELECTED TO WORK WITH RECEIVER The depositors of the Farmers State Bank, which discontinued doing business a week ago Wednesday, met in the Court room in Nelson Saturday afternoon The meeting was well attended and was called to order by George W. Woods, Bank Commisioner of the State Department of Trade and Commerce. A chairman was selected to preside over the meeting. Choice fell to H. A. Brubaker and F. A. Scherzinger acted as secretary. Mr. Woods suggested as first proceedure to select a depositors committee. This was not done according to law, 80 he advised, but was a matter of policy and had been successfully carried on in other places. And they found it worked out better because there was not so much criticism offered by the public in the policy of handling the business of the bank Here are a few of the figures he gave: There were $111,000 deposits, $9,600 in bonds, some $113,000 in loans and some loans were sold to other banks, furniture and fixtures $11,900, $25,000 in bills payable. He stated that the first money collected now would go on the bills payable. Mr. Woods also stated the real estate which the bank took over at the time of its reorganization was a big factor in the failure of the bank, that and the slow borrowers. This real estate was taken in on appraised value and since then the depression and general condition of things has decreased its value and the ability to convert it into cash. Their first proceedure would be to find buyers for this real estate. Mr. Woods highly praised the Board of Directors of the bank and the maner in which they stool by, and said he never dealt with a more honorable, consciencious, or better crowd of men, who did all in their power to save the bank. This Committee of Depositors would act as an advisory board to the bank's receiver and the receiver of said bank would have this committee approve all sales before being made. They would work toward the early settlement and closing up of the bank's affairs. A body of ten men were nominated and elected, who with Mr. Stone who is in charge of the bank and sent here by the State Commission, retired and nominated a committee of five who were to act as the Depositor's Committee. They were: E. E. Hedgcock, chairman, Ed Bishoff, secretary, Wm. Brennforder, Andrew Henry and T. M. Wilson. This committee was ratified by the meeting. While the nominating commitee were out selecting the Depositor's Committee, Mr. Woods made the above remarks. His talk was very good and gave a clear understanding to the situation. Mr. Woods suggested that the body assembled adopt a resolution embracing things teh Committee of Depositors was to do. They were: "I move depositor's committee be authorized and empowered to act as advisory committee to the bank receiver. Second, "Committee be authorized to bid for ond purchase with approval and confirmation of District Court the residue of assets of bank if offered at public auction". "Committee to have power to fill vacancies" These resolutions were adopted Mr. Woods in his closing remarks said that all debtors must pay what he owes to his utmost. All would be given fair treatment. Mr. Charles Stone who is now in charge of the bank and will no doubt continue in that capacity, has had the Superior and Cadams banks affairs to clear up and has been doing excellent work. So far Cadams has paid out 85%.
