Sawyer State Bank (Sawyer, ND)

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Hald, yes. com Motion carried. Moved by Com. Vandenoever seconded by Com. Spicher that the following resolution be accepted and approved and placed on file: RESOLUTION: WHEREAS, Ward County at the present time has deposited with the Bank of North Dakota in checking account the sum of $194,802.86 together with accrued interest thereon since the first of February, 1921, and WHEREAS, the Board of County Commissioners of Ward county have heretofore designated the banks of Ward County, North Dakota, as the present depositors of its funds, and WHEREAS, the Bank of North Dakota has refused to honor checks of the Treasurer of Ward County, North Dakota. legally drawn on its said checking account. and WHEREAS, the said Bank of North Dakota now has on redeposit in the here inafter mentioned banks of North Dakota, large sums of money, and WHEREAS, the Supreme Court of North Dakota has recently decided that garnishment proceedings may be brot against said Bank of North Dakota, and WHEREAS, the County Commissioners consider it for the best interest of Ward county to bring garnishment proceedings against the funds in the hands of the hereinafter mentioned banks belonging to the Bank of North Dakota. NOW. THEREFORE, BE IT RESOLVED. that the state's attorney of Ward County, North Dakota, be and hereby is instructed to forthwith commence action against the Bank of North Dakota for the sum of money now on deposit with the Bank of North Dakota on checking account belonging to Ward County, North Dakota, and garnishee the following banks. to-wilt: Scandinavian American Bank of Minot, N. D. Second National Bank of Minot. N D., The Union National Bank of Minot N. D., Citizens State Bank of Minot. N. D., First International Bank of Minot. N. D., American State Bank of Burlington, N. D., First State Bank of Burlington, N. D., Citizens State Bank of Douglas, N. D., The First State Bank of Ryder, N. D., First National Bank of Ryder, N. D., First State Bank of Sawyer, N. D., Sawyer State Bank of Sawyer, N. D. The Security State Bank of Deering, N. D., Deering State Bank of Deering, N. D., First State Bank of Surrey, N. D., and the First State Bank of Lone Tree, N. D. On roll call the members voted as follows: Com. Vandenoever, yes. Com. Toftner. yes. Com. Spicher, yes. Com. Haldi, yes. Com. Krantz, yes. Motion carried. Moved by Com. Haldi seconded by Com. Vandenoever that the Board adjourn until 9 a. m., March 16th. 1921. Motion carried. March 16th, 1921 The Board met as per adjournment at 9 a. m., on above date, with all members present and Com. Krantz in the chair. Moved by Com. Vandenoever seconded by Com. Spicher that the report of A. P. Scofield, sheriff of Ward county, for the month of January, for collection of delinquent personal property taxes for the year 1919. to the amount of $167.85. be accepted. approved and placed on file. Motion carried. Moved by Com. Vandenoever seconded by Com. Haldi that the road petition signed by R. L. Ladd and 70 others of Sauk Prairie and Greenbush Townships, for a change of the county road as follows: Beginning at the NW corner of Sec. 19, Twp. 160, Range 87, running east five miles to the NE corner of Sec. 23, thence south three miles to the SW corner of Sec. 36, Twp. 160, Range 87, thence south six miles to the SW corner of Sec. 36, Twp. 159, Range 87, thence two miles southwest down to Donnybrook, be accepted and approved, and placed on file and the chairman instructed to appoint viewers. Motion carried. The chairman appointed the following viewers: Commissioners Vandenoever, Spicher, Haldi and Krantz. Moved by Com. Spicher seconded by Com. Vandenoever that the following

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Efforts Being Made to Re-open Sawyer Banks Thorwald Mostad, receiver of the Sawyer State Bank, was in Minot Saturday. Mr. Mostad states that the effort which has been made for several weeks to re-open the bank, has not yet been abandoned and it is possible that one of the two Sawyer banks that were closed, will be reopened within a short time. When the Sawyer State Bank closed, Ole Saastad a well known farmer, had nearly $50,000.00 on deposit in the institution. The state banking board questions whether Saastad's claim will come under the state guarantee act, inasmuch as the money instead of drawing 6%, is said to have been actually drawing 71/2%. There has never been a decision on this point by the state supreme court, but such a decision will eventually have to be made. An effort is being made to get Saastad to permit his funds to remain in the bank in order to re-open it and it is possible that he will decide to take up twenty or thirty thousand dollars worth of slow paper. The First State Bank of Sawyer is also making an attempt to re-open. Mr. Hilliboe, formerly of Minot, returned from Minnesota recently and has held a number of conferences with Mr. Tofflemire, former cashier of the bank, and with some of the depositors. Hard Times Have Struck Wisconsin John J. Nedreloe returned Saturday from Prairie du Chien, Wis., where he was called by the illness of his mother, whose condition is improved. Mr. Nedreloe says the weather was rainy each day in Wisconsin and the roads so muddy that autos, cannot run on the country roads. Hard times have struck that section of Wisconsin. A great deal of tobacco is grown there A year ago the tobacco grower received 45 cents a pound for their crop and this year the price is but 8 or 10 cents with little demand for the product at that price.

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NOTICE IS HEREBY GIVEN, That

by virtue of a judgment and decree in foreclosure, rendered and given by the District Court of the Fifth Judicial District, in and for the County of Ward and State of North Dakota, and entered and docketed in the office of the Clerk of said Court in and for said County on the 8th day of May, 1922, in an action wherein Hanover State Bank, a corporation, of Hanover, Minnesota, Plaintiff, and E. L. Dalen; H. O. Dalen; First State Bank of Rollingstone, Minn., a corporation; Second National Bank of Minot, N. Dak., a corporation; The Haber Mortgage Company, a corporation; Sawyer State Bank, a corporation; Scandinavian American Bank, a corporation; State Bank of Buffalo, a corporation; Citizens Bank of Cokato, Minn., a corporation; Ward County, a Municipal corporation and Governmental division of the State of North Dakota; H. B. Good; Mrs. H. B. Good, (true name unknown), wife of defendant H. B. Good; J. A. Price; Thorwald Mostad, as receiver of Sawyer State Bank, now in the process of Liquidation, Defendants, in the favor of the said Plaintiff and against the said Defendants, E. L. Dalen, H. O. Dalen, et al., for the sum of Three Thousand Eighty-two Dollars, which judgment and decree among other things directed the sale by me of the real estate hereinafter described, to satisfy the amount of said judgment, with interest thereon and the cost of expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ to me issued out of the office of the Clerk of said Court in and for said County of Ward, and under the seal of said Court, directing me to sell said real property pursuant to said judgment and decree, I, A. P. Scofield, Sheriff of said County, and person appointed by said Court to make said sale, will sell the hereinafter described real estate to the highest bidder, for cash, at public auction, at the front door of the Court House in the City of Minot, in the County of Ward, and State of North Dakota, on the 17th day of June, A. D. 1922, at 2:00 o'clock P. M., of that day, to satisfy the said judgment, with interest and costs thereon, and the costs and expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. The premises to be sold as aforesaid pursuant to said judgment and decree, and to said writ, and to this notice, are described in said judgment, decree and writ, as follows, to-wit:

The Southwest quarter (SW¼) of the Northwest quarter (NW¼) and the West One-half (W½) of the Southwest quarter (SW¼) of Section Twelve (12) and the Northwest quarter (NW¼) of the Northwest quarter (NW¼) of Section Thirteen (13) all in Township One Hundred Fifty-three (153) North of Range Eighty-two (82) west of the fifth principal meridian, all in the County of Ward and State of North Dakota.

A. P. SCOFIELD, Sheriff of Ward County, North Dakota.

F. B. LAMBERT, Attorney for Plaintiff Minot, N. D. May 11, 1922. 5/11-5t

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NOTICE OF SPECIAL EXECUTION SALE

NOTICE IS HEREBY GIVEN, That by virtue of a judgment and decree in foreclosure, rendered and given by the District Court of the Fifth Judicial District, in and for the County of Ward and State of North Dakota, and entered and docketed in the office of the Clerk of said Court in and for said County, on the 8th day of May, 1922, in an action wherein Hanover State Bank, a corporation, of Hanover, Minnesota, Plaintiff, and E. L. Dalen; H. O. Dalen; First State Bank of Rollingstone, Minn., a corporation; Second National Bank of Minot, N. Dak., a corporation; The Haber Mortgage Company, a corporation; Sawyer State Bank, a corporation; Scandinavian American Bank, a corporation; State Bank of Buffalo, a corporation; Citizens Bank of Cokato, Minn., a corporation; Ward County, a Municipal corporation and Governmental division of the State of North Dakota; H. B. Good; Mrs. H. B. Good, (true name unknown), wife of defendant H. B. Good; J. A. Price; Thorwald Mostad, as receiver of Sawyer State Bank, now in the process of Liquidation, Defendants, in the favor of the said Plaintiff and against the said Defendants, E. L. Dalen, H. O. Dalen, et al., for the sum of Three Thousand Eighty-two Dollars, which judgment and decree among other things directed the sale by me of the real estate hereinafter described, to satisfy the amount of said judgment, with interest thereon and the cost of expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ to me issued out of the office of the Clerk of said Court in and for said County of Ward, and under the seal of said Court, directing me to sell said real property pursuant to said judgment and decree, I, A. P. Scofield, Sheriff of said County, and person appointed by said Court to make said sale, will sell the hereinafter described real estate to the highest bidder, for cash, at public auction, at the front door of the Court House in the City of Minot, in the County of Ward, and State of North Dakota, on the 17th day of June, A. D. 1922, at 2:00 o'clock P. M., of that day, to satisfy the said judgment, with interest and costs thereon, and the costs and expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. The premises to be sold as aforesaid pursuant to said judgment and decree, and to said writ, and to this notice, are described in said judgment, decree and writ, as follows, to-wit:

The Southwest quarter (SW¼) of the Northwest quarter (NW¼) and the West One-half (W½) of the Southwest quarter (SW¼) of Section Twelve (12) and the Northwest quarter (NW¼) of the Northwest quarter (NW¼) of Section Thirteen (13) all in Township One Hundred Fifty-three (153) North of Range Eighty-two (82) west of the fifth principal meridian, all in the County of Ward and State of North Dakota.

A. P. SCOFIELD, Sheriff of Ward County North Dakota.

F. B. LAMBERT, Attorney for Plaintiff, Minot, N. D. May 11, 1922. 5/11-5t

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RECEIVER NAMED Minot

N. D., June 17-The appointment of G. R. Van Sickle as receiver of the Sawyer State bank of Sawyer, N. D. was formally announced by the banking board. Thorwald Mostad remains in command of the banking institution and has served notice that he proposes to continue on the job. Mr. Van Sickle has served as district receiver for a number of banks in the Minot territory.

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A fine lot of horses and cattle will be placed on sale Community Sale Saturday, July 1st. Receiver Named The appointment of G. R. Van Sickle as receiver of the Sawyer State bank of Sawyer, N. D. was formally announced by the banking board. Thorwald Mostad remains in command of the banking institution and has served notice that he proposes to continue on the job. Mr. Van Sickle has served as district receiver for a number of banks in the Minot territory.

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RECEIVERSHIP TO BE SETTLED

Sawyer. N. D., Aug. 25.-Judge John C. Lowe of Minot, announced today he would likely make a. decision soon in the case of G. R. Van Sickle, as receiver of the Sawyer State bank VS. Thorwald Mostad. wherein the plaintiff seeks to have the defendant restrained from acting as receiver of the bank-during the pendancy of an action started in district court to have Mostad removed as receiver of the bank.

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Sept. 6 Is Date For Sawyer Bank Hearing

Minot, N. D., Sept. 1.-Judge Geo. H. Moellring, in an order issued at Williston to show cause why Thorwald Mostad should not be appointed as receiver of the Sawyer State bank, set September 6 at 10 a. m. as the date of the hearing on the order, which will be held at the district court chambers in the federal building at Minot.

Each of the defendants in the action, including the attorneys, servants and agents, together with the trustees, directors, managers and other officers of the bank, except such, if any, as may be appointed receiver by the court, are restrained and enjoined in the order from collecting or receiving any of the assets of the bank, or in any manner transferring any of the business of the bank during the pendency of the action.

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Thorwald Mostad Weds Prominent Minnesota Young Woman

Thorwald Mostad, well known Minot man, was united in marriage to Miss Anna C. Johnson of Bemidji, Minn., Monday, Oct. 9, at the home of the bride's sister, Mrs. W. P. Elliott, 3650 Eleventh Ave. S., Minneapolis, the ceremony being performed by Rev. E. C. Stone, pastor of the Lutheran church. The wedding was a very quiet affair.

Mr. Mostad has returned to Minot, after spending a week's honeymoon at Mankato and Bemidji, Minn., and Grand Forks, and his bride has returned to Bemidji, where she has been in charge of the Johnson Bros. store for several years. As soon as a new manager can be secured, Mrs. Mostad will join her husband in this city.

The bride is the charming daughter of Mr. and Mrs. J. C. Johnson of Mankato, Minn. She met Mr. Mostad, while he was serving his district as Senator at Bismarck some years ago and at the time she was manager of the Johnson Bros. store in Bismarck. She is a sister of Otto C. Johnson, manager of Johnson's Popular Priced Store in Minot, and of Carl Johnson, manager of the Johnson store in Grand Forks. She is a young woman of the most pleasing personality and exceedingly capable in business.

Mr. Mostad has resided in Ward county practically all of his life. He served our district as Senator for four years and at present is serving as receiver of the Sawyer State Bank. He is the son of Mr. and Mrs. T. C. Mostad, who are among our most highly respected pioneer settlers. A host of friends join the Independent in offering felicitations.

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BENEFIT OF BANK ASSETS SALE Editor Ward County Independent. N. D. Educational AssoDear Mr. Editor: It isn't often that we break into print and would not at this time, were ciation Met In Fargo it not for the fact that people who are not acquainted with the gentleThe 35th Annual meeting of the man and not familiar with foreclosure State Teachers' Association was held sales, might possibly think that exat Fargo three days last week, openSenator Mostad is a man of some iming its sessions on Wednesday under portance and accustomed to writing the leadership of G. W. Hanna, retirthe truth. ing President of the Association. All Under the circumstances, however, of the prominent educators of the it is not fair to my associates on the state helped make the meeting a sucGuaranty Fund Commission, to percess while the enrollment showed that mit his communication published in a greater number of the state teachyour valuabe paper to go without ing force than usual took advantage comment. The Guaranty Fund Comof the departmental work. mission is composed of Gov. Nestos, Principal speakers included GoverMr. C. B. McMillan of Hannah, North nor R. A. Nestos, Senator B. F. Baker, Dakota, an appointee of Gov. Nestos, Supt. Minnie J. Nielson, Judge A. M. Gilbert Semingson, State Examiner, Christianson, Nelson Sauvain of Mr. S. G. Severtson, former State ExDevils Lake, who is President for this aminer under Gov. Hanna and the unyear, and William Bishop Owen, Presidersigned, and these gentlemen are dent of the National Educational Asmen of at least ordinary intelligence, sociation. Special music was providwere aware of what was going on and ed by the Minneapolis Symphony Orwould hardly permit one of their memchestra. bers to take advantage of the situaOne of the most interesting features tion in the manner suggested by of this year's program was the sesfriend Mostad. sion devoted to the recollection of terHowever, Thorwald has good rearitorial pioneer days in education. sons to feel peeved and somewhat disGeorge A. McFarland, President of the gruntled over the situation. His acMinot Normal School and one of the ceptance of the Receivership of the founders of the Association, took Sawyer State Bank, is evidence that charge while persons who had served he believes the only qualifications as teachers during these early days necessary are to be able to control a were seated on the stage. Immedifew votes and draw his salary. From ately afterward an exhibit, illustrative the time of the closing of the bank of territorial history was shown, conuntil his removal by the State Banksisting of text books, pamphlets, reing Board in the spring of 1922, less ports, programs, photographs, and exthan one year, the expenses were amples of equipment and furniture. more than $3,900, and while we have Reunions, in the form of dinners not made a careful examination, we and luncheons, were held by the alumare informed that Thorwald, during ni, former students and teachers of that time, collected possibly $300 and the Mayville Normal, the Minot Nor.renewed one note. mal, and the Valley City Normal, and The Banking Board removed him in State Teachers College. the spring of 1922, but he didn't apThe Minot Normal School was repa prove of their actions and made resented at the Association by Elsie fuss, the matter much later was taken J. Cook and Mary Rud of the Model before Judge J. C. Lowe and he upSchool department, and by Huldah held the Banking Board, and Thorwald Winsted, Mrs. Florence Perkett and wasn't satisfied then, so he took the Julia McDonough of the Normal matter up before Judge Moellring, faculty. who also decided against him. In the Eleanor Bryson, who was unable to meantime, however, foreclosure of the attend the meeting, sent the paper collateral mentioned in Thorwald's which she had prepared, to be read. article had been commenced and for Miss Cook took this opportunity to the reason that those most interested present a text book which she had just in the bank did not want Thorwald to completed, "The Pupil's Workbook in handle the paper. He was obstreperGeography.' The Minot State Norous and evidently imagined that a Remal School enjoys the distinction of ceiver appointed by Gov. Frazier and having had a one hundred per cent O. E. Lofthus was larger than a mere membership in the Association since Nestos administration and the Courts the establishment of the local institution. had not at that time shown him someOfficers elected at the sectional thing about the law. The collateral which he sets out so meetings of the teachers were: elaborately is mostly good, being on Principal's section-H. S. Kirk, honest, well-to-do farmers who take Jamestown, president; Peter Anderpride in paying their debts whenever son, Lakota, vice president. crops and prices will permit, and the Elementary-Agnes Kjorlie, Enderfact that it was bid in for a small lin, president. amount merely indicates that there Commercial--A. J. Ostby, Fargo, were no other bidders. There is sufpresident; J. H. Bond, University, vice president. ficient after the Bills Payable are taken care of to pay Thorwad's salary Rural schools-Shirley Fox, Bisand expenses for several years, and marck, president. much of it is so good that it would Agricultural-R. D. Stewart, president. have required very little effort upon his part to collect it. Home economics-Myrtle G. Cole, Now, Thorwald made a lot of misA. C., president; Eleanor Bryson, Mitakes in his statement. We wouldn't not, vice president; Art, Miss Rasing, use a harsher term for we sympathize Jamestown, vice president. with him in his bereavement, the cutMusic-E. H. Wilcox, Grand Forks, president. ting off, during the first year of its Modern languages and Latin young life, of a perfectly good $10.00 Henry Haxo, Grand Forks, vice per day salary. We might enumerate president. these mistakes as follows: The Guaranty Fund Commission reEnglish-Mary Laycock, Grand ceives the full benefit of the foreForks, secretary-treasurer; Vera Bolclosure for the purpose of paying delinger, member executive committee. positors of the bank and the Northern Trust Co. now holds the paper in Impressive Funeral Services for Trust for the Guaranty Fund ComPerry L Hodge mission. The funeral of Perry L. Hodge, who The deficiency judgment vs. O. A. passed away at his home in this city Saastad has been satisfied. last Thursday evening, was held from The Northern Trust Co. does not the Masonic Temple Sunday afterown any stock in the Scandinavian noon at two o'clock, a large number American bank nor does any of its of friends joining with the members stockholders, and the writer owns no of the various Masonic bodies in paystock in the Northern Trust Co. ing their tribute of love and respect The writer represented the Guarto one of our very best citizens. anyt Fund Commission in all this In accordance with the wishes of transaction. the deceased, the funeral was conductYours very truly, M. R. PORTER. ed by Knights Templar, members of

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NOTICE OF SALE NOTICE IS HEREBY GIVEN, That by virtue of a judgment and decree in foreclosure, rendered and given by the District Court of the Fifth Judicial District, in and for the County of Ward and State of North Dakota, and entered and docketed in the office of the Clerk of said Court in and for said County on the 29th day of November. 1922, in an action wherein U. G. Orendorff and Wm. P. Ingersoll, Plaintiffs, and M. P. Podhola; P. D. Podhola; Sawyer State Bank, a corporation; The Sawyer State Bank, a corporation; G. R. Van Sickle, as Receiver of Sawyer State Bank of Sawyer, North Dakota, a corporation; O. J. Mortenson, and William Hodges, formerly co-partners doing business under the firm name and style of The Sawyer Implement Company, and C. J. Farney, Defendants, in favor of the said Plaintiffs, and against the said Defendants, M. H. Podhola and P. D. Podhola, for the sum of Fifteen Thousand Two Hundred Fifty-eight Dollars and Fifty-three Cents, which judgment and decree among other things directed the sale by me of the real estate hereinafter described, to satisfy the amount of said judgment, with interest thereon and the cost and expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ to me issued out of the office of the Clerk of said Court in and for said County of Ward, and under the seal of said Court, directing me to sell said real property pursuant to said judgment and decree, I, A. P. Scofield, Sheriff of said County, and person appointed by said Court to make said sale, will sell the hereinafter described real estate to the highest bidder, for cash, at public auction, at the front door of the Court House in the City of Minot, in the County of Ward, and State of North Dakota. on the 20th day. of January, A. D. 1923, at two o'clock P. M., of that day, to satisfy said judgment, with interest and costs thereon, and the costs and expenses of such sale or so

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200 BANKS IN N

D. SAVED BY GUARANTYBODY Claim Is Made That Closings Might Have Been Much Greater in North Dakota EXPLAINED CHARGES Members Had Collateral Bought to Conserve it For Closed Bank, Declaration With good crops in the state, deposits in banks increasing and individuals paying off debts, the banking situation has about righted itself, according to members of the Depositors Guaranty Fund Commission. With this situation existing there has been divulged by members of the commission many of the actions taken during the long period of anxiety in the state, and answers made to wide-flung charges of carelessness and dishonesty. The policies pursued by the commission, it is asserted by C. B. McMillan of Hannah, a member, probably prevented 200 to 250 additional bank in same policies closings resulted the in state. preventing The foreclosure proceedings against thousands of farmers in the state, who would have been driven from their homes, he asserts. The Depositors Guaranty Fund has not been wasted, and although the commission used some of the funds, under the law, to help conserve assets and prevent closings, virtually every dollar of the fund is intact, for the benefit of all depositors of closed banks, it is declared. of of of the Charges collateral corruption Bank in Bank the of New sale and Rockford, Williston State Sawyer State Bank were made under a misapprehension, with the commisto conserve the which now sion banks, acting is collateral in the hands for of the receiver of the banks, it is asserted. The Guaranty Fund Commission is composed of Governor Nestos, exofficio chairman, C. R. Green, manof the ex-officio ager member, Bank of Gilbert North Seming- Dakota, son, state examiner, ex-officio secretary, C. B. McMillan of Hannah and S. G. Severtson of Minot. M. R. |Porter of Minot formerly was a member. Preventing Closings One of the greatest accomplishments claimed by the commission for itself and other state officials was the agreement announced Satwill urday return whereby over-plus Twin collateral Cities banks to closed North Dakota banks. One of the main problems of the commission for the last 18 months was the prevention of bank closings and foreclosures. that from 200 to 250 were closings "I believe prevented by negotiations and offering to allow the bills to renew payable by holders with the and extend collateral, and conthe receiver to comsent promises," of declared Mr. McMillan. effect banks the chief who The were big outside bills foreclose the payable state holders didn't want to on notes held, the North they Dawota but farmers under the whose law if the other anyone than granted original made an maker-the extension to North notes originally were Dakota banks who borrowed from other banks and gave the notes as collateral security-the security holder became the owner of the note and could have no recourse on the North Dakota bank, it is explained This could be avoided in cases were where here. there the receiverships consent of the of banks by getting receivers. The Guaranty Fund Commission, cooperating in this manner, (Continued on page 3)

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200 BANKS IN

N. D. SAVED BY

GUARANTY BODY

(Continued from page one.) was able to prevent the foreclosure of thousands of farmers, and as a result many more thousands of bushels of grain were raised in the state this year, it is declared.

Concentration Needed In this situation is seen by members of the Guaranty Fund Commission one of the big justifications for the bank administration law of 1923, which gave the jurisdiction of closed banks to the supreme court. It would have been wholly impossible to deal with the situation with 100 receivers and 16 district judges, it is asserted. With L. R. Baird as general receiver of closed banks, much could be done in this matter. A considerable amount of the Guaranty Fund was left with the individual banks, until it should be called for, for distribution. Some of these banks closed. The money helped others to weather the storm of financial depression by keeping up their reserve.

Under the law, also, the Guaranty Fun Commission could use this money to protect assets of closed banks, by buying collateral. Under the law, the Guaranty Fund has a first lien on all assets of closed banks, to pay in the assessment to the Guaranty Fund. Receiver Baird has recognized this obligation, and the commission, therefore, will not have lost money by reason of banks closing, it is declared. The commission acquired some collateral, and this is being liquidated, so that it also will lose little, if any money, in this respect, it is asserted by members.

Another charge was made that collateral of the Bank of New Rockford, Sawyer State Bank and Williston State Bank was sold at ridiculously low figures, and that members of the Guaranty Fund Commission bought it in for their own use. It now develops that the Guaranty Fund Commission, according to members, either bought this collateral itself or had its agents buy it, to conserve it for the defunct banks, and when the general receiver, L. R. Baird was named, it was all turned over to him.

## The Collateral Sales

Members of the Guaranty Fund Commission had steadfastly refused to enter into controversy over charges made against it, one member declaring months ago he "didn't have to prove I am not stealing." Charges of fraud made long ago, called specifically to the attention of Mr. McMillan, a member of the commission a few days ago, were met by a reference to the books of the Guaranty Fund Commission, which shows that the collateral from the three banks at New Rockford, Williston and Sawyer, which was bid in for the commission, was turned over to the receiver on December 18, 1923, before many of the charges of corruption were made and soon after L. R. Baird became general receiver. The resolution shows the collateral was turned over to the receiver in return for reimbursement on the net value of the investment. Instead of looting the banks, commission members say, they saved the depositors of these closed banks large sums of money. The Guaranty Fund Commission would like to have been able to buy up more collateral than it did, when sales were forced and large blocks of farmers' notes were sold cheaply. It was privileged under the law to apply the funds it had for this purpose, but could not have used all of them, or it would have been diverting them from the purpose for which they were raised, according to Mr. McMillan. With conditions as they are now, the commission does not expect to have to invest funds again.

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GUARANTYFUND NOW MILLION AUDITORS SAY Amount Available on October 31 of $806,898.24 Supplemented by Payments 32 BANKS NATIONALIZE This Many Take Out National Charters Since Guaranty Law Is Effective "In our opinion the Depositors Guaranty fund has been properly accounted for on its records, and that all disbursements are consistent and in order and properly authorized and authenticated." This is the statement made by the Temple, Brissman Co., certified publie accountants at the conclusion of their audit report of the depositors guaranty fund made as of October 31, 1924. The report shows that on Oct. 31, last. the amount available for the purposes for which the fund was created was $806,898.24. This is exclusive of $204,661 due from closed banks in the state on deposits and assessments. No figures are given however as to the total liability of the fund to depositors in closed banks, this being beyond the province of the examination. Total Expenses The total expenses of the commission since its inception in 1917 to the date of the audit was $78,801.19. Of this $37,848.79 has been paid from legislative appropriation and the remaining $40,952 from the assessment fund. On October 31, 1924 the commission had on deposit in closed banks $112,966.29. A supplementary report shows that since the date of the audit $18,901.55 has been withdrawn. These deposits are divided among 16 closed institutions, the largest amount in any one bank being $21,398.39 in the defunct Williams County State Bank at Williston. There was also $21,515.26 on deposit in banks which were on the special deposit list on October 31, but of this $15,773.88 has been withdrawn since that date. Closed banks which still hold deposits of the guaranty fund are the Clyde State Bank, Bank of Cogswell, Farmers Bank of Dunn County, Dunn Center; Farmers State Bank of East Fairview, Sawyer State Bank, Williston State Bank, Farmers Bank of Garrison, State Bank of Grenora, Farmers Bank, Hampden; Security State Bank of Hanks, State Bank of Maxbass, Farmers State Bank of Nome, Farmers State Bank of Rawson, Farmers Bank of Ray, Farmers and Merchants State Bank of Sherwood, Tolley State Bank, Farmers State Bank of Watford City, Williams County State Bank of Williston. There was also due from these closed banks $89,303 on assessments to the guaranty fund, but $34,625 of this has been remitted by the state receiver since the date of the audit. In addition to these obligations there is the sum of $2,341.99 listed as notes receivable. These notes represent loans made to the receiver of the Farmers' and Merchants Bank of Robinson for receivership expenses. Intervene In Affairs It is shown in the audit report that the commission has intervened in the affairs of a number of closed banks in order to protect its interests. Some of these were as follows: The Sawyer State Bank had pledged collateral to secure certain loans. (Continued on page 4)