Article Text
SECURITY BANK TO OPEN Public Examiner Schaefer of Opinion that Bank Will Soon Be Running Again Brainerd Dispatch, January 12: A. E. Schaefer, the public examiner, left for his home in St. Paul this morning after attending a meeting ot the officers and interested stockholders of the Security State Bank, which closed its doors on Thursday last. Before leaving Mr. Schaeter made a statement to the Brainerd Dispatch, for publication, as to the causes of the failure and the condition of the bank. He stated that the officers of the bank were simply the victim of a rascal. In company with many older bankers they were victims of the swindling operations of Andy Jones, the absconding cashier of the First National Bank of Rugby, N. D., the failure of which caused the closing of the Brainerd bank. The officers of the bank, Mr. Schaefer stated, were of course anxious to get their capital stock to earning and when what appeared to be good securities guaranteed by officers of a National bank, were offered them, bearing 10 per cent interest they purchased them, fully believing them to be all right. Their first inkling to the contrary came with the failure of the Rugby bank. Knowing that this failure endangered their securities Mr. Guerin at once closed the bank. Mr. Schaefer on Mnoday afternoon held a meeting at which the majority of the stock of the bank was represented and levied an assessment of 100 per cent, or $25,000. This he said he had assurance would be paid in full. He had received assurance that George Storck, the father of the cashier, and a wealthy stock raiser of Earlham, Iowa, had expressed his willingness to pay the assessments upon any stock which the owners do not pay the assessment upon. The stockholders, under the law, have 70 days in which to pay the assessments. If they are not paid the stock 1S sold to pay the asssesment. Mr. Schaefer stated that there was no evidence of dishonesty or crookedness and that the books were perfectly straight. But for this unfortunate investment in the securities of the Dakota bank the Brainerd institution would have been in first class shape. He stated that he believed that the assessment would bei paid in full, and as soon as it was he would authorize the bank to re-open its doors and continue business. He further stated that be had charged every dollar of the Engby securities off as worthless, though there might be some good paper among it. If there was any value, of course the stockholders would get the benefit of it. There was none he said of the paper signed by Jones, the absconding Dakota banker, in the lot bought by the Security State Bank, but that it was all covered by his blanket endorsement. Mr. Schaefer asked the Dispatch to urge the people of Brainerd to have confidence in the bank and its officials. The latter, he said, might have been somewhat indiscreet, but that they had been square and deserved the confidence of the people as they certainly would not make the same mistake again, and would be deserving of continued patronage. There will be another meeting of the stockholders of the bank on Friday of this week. at which time Mr. Scaefer will be present and will, perhaps, be able to set the date for the re-opening of the bank.
