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Show MERCHANTS BANK INSOLVENT LONG BEFORE THE END. ,. -' SO httlcregarding the inside story of the failure of the Merchant's . Bank is known "by the public generally and the thousands of de- w positors, and real information on the subject is seemingly so sca,rce I that we believe it is no more than fair to go into the matter with some facts and figures which the dailies have not published. Possibly A , they have been unable to secure the information, but whether they " have or not, only a vague outline of the reasons for putting the bank in the hands of a receiver have been published and few of the most interesting facts and figures have previously been available. Following an examination of the condition of the Merchant's -' Bank, which commenced at 3 o'clock p. m. on May 8, 1918, and closed Iat noon on May 13, 1918. which was made by S. G. Sargent of Federal Reserve District Number 12 assisted by Charles Stewa'rt and F. W. Ball, a most interesting report was made by the examiners ,a number of excerpts from which are published below. The report contains so much that it is impossible to publish it in full in these columns, but most of the important matter is reprinted. As stated above some details of the original report are lacking, but from the examiners figures and remarks that are reproduced, we be-4 be-4 lieve that those especially interested will have a clearer insight into - the affair than heretofore. In the summary following the report, the examiner remarks that "from the start this bank has had a checquered existence," saying that the bank was unable to meet the demands for the money on deposit by the state, over $1,000,000, and that though the insolvent condition of the bank was known to the State Banking Department, liquidation was not resorted to. This was in 1914 when W. H. Clark was removed from the bank and Mr. Pingree and Mr. Ford were placed in charge. The examiner says "When they had been in the bank long enough to I become familiar with it's affairs they found that on a capital of $250,-I $250,-I 000 they were carrying over $700,000 in bad assets." Mr. Sargent's report was made, of course, several weeks before the bank was closed I and this time must be taken into consideration when reading the ex-I ex-I cerpts from his report. I In'another part of his resume, the examiner said : I "The Board of Directors is composed of prominent and capable 1 business men, but their stock interests in the bank is small. The JL active manager, Mr. Pingree and Mr. Ford, are experienced and re-' re-' sourceful bankers. They have done more than could reasonably have 1 been expected toward the rehabilitation of a bank that should long 1 ago have been liquidated, and would have been if the State Bank Commissioner had done his plain duty. 4 "Various corporations have been organized to take over the assets I of insolvent borrowers and the notes of these corporations substituted for those of. the original debtors. Assets of every description, good K and bad, have been acquired. Most of them are entirely improper as bank investments, but were the only salvage available. J, Loans and Discounts, $1,139,915.66. "The loans taken as a whole are in a very unsatisfactory condi- jatipn and need constant attention, if heavy losses are to be prevented. I 6ut of a total of $1,139,915.66 only $738,989.75 were found in the bank's I possession, the balance of $390,925.91 bein geither hypothecated or 1 in the hands of attorneys or collection agencies. Three hundred and, I , eleven notes, aggregating $332,629.25, were found past due. The of- 'lancers state that it has been physically impossible for them to. send I out proper notifications and to give the necessary attention to the loans during the past thirty days, during which time their note teller has been loaned to the Salt.Lake branch of the Federal Reserve Bank, ' and they are personally busy 'with the Liberty Loan campaign and other important matters. While it is true that a majority of the de- H linquent notes have run less than sixty days past maturity, a large H number have been due for several months, indicating either negligence H on the part of the management or extreme weakness in the loans and ability of the makers to liquidate. H "In analyzing the loans a total of $169,601.46 has been classed as M 'slow.' This amount includes all notes secured by real estate mort- H gages. No ultimate loss is expected on these loans, but they will have M to be carried indefinitely. "In the 'doubtful' class have been placed notes totaling $94,505.60. M They are in a very unsatisfactory condition, but cannot at this time M be classed as definitely 'bad.' There will be some loss, but the amount M can only be approximated. It would probably be fair to estimate and H Jit has been 'the examiner's epe'rience,"that at least 50 per cent or about $47,500.00 will develop further weaknesses before another ex- animation and will ultimately have to be charged to the Profit and Loss account. H "Notes aggregating $48,734.99 have been classed as 'bad' recovery, ' H if any, will be very small and they should not be carried. longer as an M asset. , M "The Utah law requires that all loans to officers and directors hi) secured by collateral 'the value of which is at least twice the loan. Directors' notes, on which no security has been taken, were found as follows : ; "L. n. Eccels l.:...$13,000.00 Pingree, Ford & Binnard ! 9,500.00 H "Note of B. S. Hinckley for $1,000.00 is secured by 10 shares of bank's own -stock. Collateral is both improper and inadequate. M "Loans to officers and directors and to corporations in which they are interested, aggregating $208,578.84, are not only excessive, fl but in many instances, represent investments which are of a more or H less speculative nature. These obligations ohould be materially re- H duced. jH Bonds, Stocks and Securities, $374,782.99. M "It will be noted that the bank's book value of sieQurities listed H under this schedule exceeds the examiner's estimateXby q301548;88. H However, it is not to be understood that a loss of this amount will be H sustained. An estimated value was placed only on securities, the H worth of which could be ascertained; the others must necessarily be classed as 'doubtful.' In the opinion of the examiner, loss on such (H items will be heavy, but there is no way to determine the amount. H They are all improper investments, undesirable as an asset, and in H nearly every instance were taken to replace bad loans. The directors jH profess to believe that the items carried in this account will ultimately :H yield book value, but.it would appear that their optimism is not iW justified. jl Claims and Judgments, $2,713.32. J I "Loss in this account, as estimated by the bank's officers will M be $1,527.94. II Other Real Estate Owned, $123,678.67. jfl .'s ' "Officers are of the opinion that actual values of the properties M ' carried in this account are in excess of book values. Their estimate ' ' on the various local properties are checked over with a disinterested ; party who is of the opinion that no loss will result. f ' M 1 1 H Lasses Estimated. "An estimate of the amount of loss that will be sustained by this J bank on assets as now carried is purely a matter of conjecture; a m large majority of the stocks and bonds are unlisted and at present H. have no market value. Probable losses are estimated by the examiner H' as follows : "Bad loans :. $48,734.99 Doubtful loans (94,505.60) '.... 47,500.00 B Doubtful stocks and bonds (301,548.88) - 150,000.00 H Claims and judgments - 1,527.94 H Total 4250,139.71 H v Undesirable and Improper Assets. H "Below will be found a tabulation of assets considered as unde- H sirable and improper bank investments, the elimniation of which must H be accomplished before the institution can be classed as clean: Bad loans '. .. $ 48,734.99 H Doubtful loans 94,505.60 H Bonds, stocks and certificates 372,898.98 H (This includes every item in the account except Liberty H bonds, Salt Lake & Millard Co. Drainage Dist. warrants, H and Revenue stamps ) H Claims and judgments 2,713.32 H Other real estate owned 123,678.67 H Furniture and fixtures 2,376.78 H Total $644,908.34 H Conclusions. H "While the condition of the bank no doubt shows an improvement B over that of four years ago, when the present management took H ' charge, there is no question in the mind of the examiner but what it H is still insolvent and could not be liquidated without serious loss to M its depositors. As already stated, the management is composed of m experienced and resourceful bankers, and it is possible that they will B' eventually be able to ge enough salvage from their miscellaneous H assortment of assets to make good the present capital impairment. M Officers feel that they are making considerable headway and are con- fl fident that they will be able to place their institution in a sound and M, solvent condition. 1 "Although considerable improvement has been made in the gen- H eral condition of the bank, the officers are subject to severe criticism H for having paid dividends to their stockholders during a period when M the capitol stock was actually impaired. Your examiner is of the fl opinion that the institution is in a very critical condition and that the m situation demands prompt and drastic action if serious complications M i are to be submitted." j In this connection, we should like to ask Governor Bamberger if B a stockholder of the bank, some time before the bank was closed, went B , to him or communicated with him' insisting upon a receiver. We un- i derstand that this was done and also that the request was refused at I that time. We should like to know from the governor himself whether or not he ever received such a request in writing or in person, and in hh j the event that he did, whether or not he refused to grant it. J From what, we can make out of the examiner's report, it looks 'f very much to us as though the bank were insolvent last spring, and HI apparently during the interim between that time and July 8, 'some of H the largest depositors became aware of the fact and .took out their (money. It is also rather remarkable that at the time of the appointment hh of a receiver, it was not deemed necessary to also appoint an auditor, H considering the gravity of the situation as outlined by Examiner Sargent-. H We believe the last report to the deposition of the defunct Mer- H chant's Bank was that of September 23, in the course of which we H find, in reference to the opening of a new bank, "The new bank is to H liquidate the assets of the old bank as fast as possible with due re- gard to business procedure and from the first liquidation they will pay H themselves the 55 per cent which they have paid to the receiver with H, the legal interest thereon. Hi "When this is accomplished all f the balance of the assets ufljf, b,ej set aside in a separate or Trust Fund, the 'same will be liquidated under un-der the direction and control of three of the Directors of the Bank, two of whom shall be two of the directors who are named'by the depositor's de-positor's committee." Possibly such a new organization is to assist the depositors, the a, best token of good faith being the assurance of such men as A. H. 1 J Godbe, A. P. Soule, M. O. Packard and J. M. Peterson. But some of the depositors are still skeptical, having had one trying experience, and it is common report T:hat considerable difficulty is being experienced experi-enced in secured the signatures to the contract agreeing to the terms outlined. The report of Mr. Sargent begins with a tabulation of the resources re-sources and liabilities of the bank, then we find the following : DIRECTORS. No. of . Liability as i Shares Meetings Liability as Endorser Owned Name, Occupation, P. O. Address Attended Payer Guarantor 4 15 John Pingree (President, Salt Lake 10 $29,777.51 $27,222.35 fcf 10 Geo. E. Ford (Secretary), Salt Lake 10 9,500.00 12,100.00 50 Moroni Heiner (Coal Dealer), Salt Lake- 9 15,222.35 , 10 O. P. Soule (Attorney), Salt Lake 8 3,000.00 ' 10 W. H. Cardley (Smelting), Joplin, Mo , 30 F. W. Price (Miner), Salt Lake 6 1,500.00 - 56 P. J. Cannon (Investment), Salt Lake 4 7,250.00 ' 53 B. Binnard (Investment), Salt Lake 8 21,798.29 15,000.00 10 A. H. Godbe (Investment), Salt Lake 9 6,740.00 12,000.00 35 M. O. Packard (Merchant), Springville. 9 ' , 7 L. R. Eccles (Sugar Mfgr.), Ogden 1 13,000.00 10 A. B. Apperson, Salt Lake 1 3,497.20 . ol 5 Jas. F. Burton (Cash. 1st Nat. B.), Ogden.ll 185 Jas. M. Peterson (Banker), Richfield 1 Total $88,813.00 $88,794.70 NOTE In the column after "Names" number of directors' meetings attended by each director since last examination, Jan. 1, 1917. . t Unsecured Secured Total of direct loans to officers and directors$22,500.00 $663,313.00 32 7 Total of direct loans to corporations, etc., in which directors and officers are interested. 109,471.00 39 9 OFFICERS AND EMPLOYEES. Liability Liability as as Endorser Name and Occupation Payer of Guarantor Bond . Prest. John Pingree $29,777.51 $27,222.35 J V. Prest. O. P. Soule (Attorney) 3,000.00 15,222.35 -"?,' V. Prest. Moroni Heiner (Coal Dealer) 9,500.00 12,100.00 Cash.-Secy. Geo. E. Ford 9,500.00 12,100.00 L Asst-Cash. Radcliffe Q. Cannon $2,500.00 I Asst.-Cash. L. J. Hayes 5,000.00 D Total u$42,277.51 $54,544.70 Apparently it was not necessary to own much stock in the Merchant's Bank to be a strong director with considerable authority in the matter of securing fancy loans. LOANS AND DISCOUNTS (Summary). Demand notes and loans$ 173,788.53 Unsecured paper demand $ 143,896.91 Times notes and loans , 633,497.88 Unsecured paper time 637,153.68 Past due notes 332,629.25 Secured by agricultural products, prod-ucts, live stock, or merchandise, merchan-dise, warehouse receipts, etc. 1,218.91 Secured by stocks and bonds 186,170.85 Liberty Bonds 6,188.47 Secured by real estate collat- eral, Including mortgages and stocks and bonds issued by , real estate corporations or based upon real estate se- curities 49.928.lltf- Miscellaneous collateral 118,358.70 Total $1,139,915.66 $1,139,915.66 LOANS TO OFFICERS, DIRECTORS AND TO CORPORATIONS IN WHICH THEY ARE INTERESTED. Apperson, A. B., $3,497.20. Director of bank. Binnard, B., $5,000.00; Hansen, G. T., $5,000.00. Binnard is a director worth 3600,000. Butte-Salt Lakelnv. Co., $37,921.79. Bank owns this corporation, M. Heiner, president, and Geo. E. Ford, vice-president. Burke, C. R., $100.00. Note endorsed by Director A. H. Godbe. Copper Basin Mining Co., Jno. Pingress, president, $15,222.35. Notes endorsed en-dorsed by Directors Pingree and Heiner, except to liquidate loans by ore shipments ship-ments this summer. Deseret Film Co., $7,250.00. Endorsed by Director P. J. Cannon. Dayton Placer Recovery Corp., $4,000.00. Endorsed by Director Binnard. t W. A. Dunn & Co., B. Binnard, G. L. Hansen, $2,298.29. Partnership, Bffi nard a director. Eccles, L. R., $13,000.00. Director of bank, no collateral security 'as re- , quired by law. Eccles worth from three to four million. I Georgia Mining Co., A. O. Jacobson, president, $6,000.00, Endorsed by Di- 1 Tectors Pingree, Ford and Godbe. Mine not operation. Note also endorsed by j A. O. Jacobson and E. W. Matson. Each endorser expects to pay his part. I Godbe, A. H., $6,000.00. Director of bank, worth $300,000. jHp$, fJhas., and A. H. Godbe, $200.00. Director Godbe signs as security. ,-.... ... . ,UL. flL I Jacobson, A. O., $6,000.00. Endorsed by Directors Pingree, Ford and Godbe, fl nlso B. W. Matson, A. O. Jacobson and the Georgia Mining Co. '- , . I Kenyon Hotel, Inc., $28,779.13. Bank owns this corporation. Lease and 6 property taken over to save loss. I Kennedy Copper Co., B. Binnard, president, $2,500.00. Endorsed by Dayton j Placer Recovery Co. and C. H. Smith. Director Binnard is president of company. Knowlton, Given and A. H. Godbe, $200.00. Director Godbe signs as surety. 1 W Knowlton, Edith C, $240.00. Director Godbe signs as surety. ' J McManus, J. W., $19,992.57. This represents the Kenyon Cafe, taken over by the bank in connection with the Kenyon Hotel, big loss. Mldvale Minerals Co., $11,000.00. Notes all endorsed by Director Binnard who owns company. Montgomery, A., $100.00. Note endorsed by Director Ford. Rykert, B. M., $1,500.00. Director Price is also signer on this note. ' Soule, O. P., $3,000.00. Director of bank. Stephens, Frank B., $9,500.00. Note is also signed by Directors Pingree, Ford and Binnard. No collateral as required by law. ' Utah Packing and Provision Co., $20,277.51. Director Pingree is president and Director Ford, secrotary and treasurer of this corporation. Total, $208,578.84. SUMMARY OF OBLIGATIONS OF OFFICERS AND DIRECTORS. 1 As Maker As Endorser Corporation Total Apperson, A. B $ 3,497.20 $ 3,497.20 Binnard, B 21,798.29 $15,000.00 $ 2,500.00 39,298.29 Cannon, P. J 7,250.00 7,250.00 Eccles, L. R. 13,000.00 13,000.00 i Ford, Geo. E 9,500.00 12,100.00 20,277.51 41,877.51 Godbe, A. H. 6,740.00 12,000.00 18,140.00 j Heiner, Moroni 15,222.35 15,222.35 J' Price, F. W fc 1,500.00 1,500.00 Pingree, Jno. 29,777.51 27,222.35 56,999.85 Soule, O. P 3,000.00 3,000.00 Corps, owned by bank 86,693.49 86,693.49 $88,813.00 $88,794.70 $109,471.00 $287,078.70 J Less amounts counted twice or more 78,499.86 SLOW, DOUBTFUL AND BAD LOANS. Arthur Zinc Mining Co. $3,000.00, doubtful. Signed personally by A. J. Miller. Renewed several times. Mine has no value. Bertram, Peter L., $10.00, bad. Long past due. Bonnerud, C. O., $193.67, slow. Farmer, good but very slow. , Behunin, W. C, $325.00, doubtful. Long past due. No interest C-M on old truck. Big Four Exploration Co., $4,710.74, bad. Company in hands of receiver. Property sold but bank will get very little, if any. Boruff, W. E. and J, K., $4,000.00, bad. Notes turned over to R. G. Dunn & Co., for collection. Makers live at Kansas City. Boston Development Co., $9,721.66, slow. Notes long past due. Endrsed by Fred H. Vahrenkamp, president. Pingree holds some stock which he expects ex-pects to appropriate and thinks there will be no loss. Brown, A. S., $275.00, slow.' Due since Aug. 16, 1916. Bank holds his mother's moth-er's note as collateral, which they hope to collect. Broadwater Mills Co., $452.74, slow. Note past due with no Interest. Mill " " closed down, not a success. It Brown, J. E., $5,000.00, slow. In hands of attorney for suit. Maker has , some property and bank hopes to be able to collect. Buchanan, "Wm., $1,590.00, bad. Maker speculated in mining stocks and lost all his money. Honest but can't pay. Bullock, W. R., $150.00, slow. Notes long past due, farmer. Butts, J. S $59.10, bad. Unable to locate. Cannon, W. T., $6,200.00, slow. Physician, loan of long standing. Officers say loan will either be secured or they will force collection. I Cannon, Clarence M. Lewis and Quaylo, $900.24, doubtful. Note in hands of attorney for suit. Have a little property. U Carruth, J. T., $2,000.00, slow. Lives at Blackfoot, Idaho. Endorsed by B. I S. Rupp. Mining stock of unknown value as collaterial. I Cartwright, Jas. ., $100.00, doubtful. Long past due. Party out of town. 1 Clawson, S. Y., $25.00, bad. Moving picture man. . I Clayton Talking Machine Shop, $1,724.98, doubtful. Notes in judgment, I $2,285.88. Endorsed by several individuals from whom bank hopes to collect. 1 Collins, D. H., $54.55, bad. Long past due, out of town. I Cole, H. B. and W. E. Hubbard, $6,000.00, doubtful. Due since March 27, 1913. In hands of attorney. Bank holds some unlisted stocks and other miscel laneous collaterial. Cooke, Geo. F., $40.00, doubtful. Long past due. I Core, W. P. and Nannie F., $350.00, doubtful. In hands of attorney. Wife has some property. Collection is very doubtful. 4f) Cummings, H. L., $324.50, bad. Bank holds a diamond pin worth $40.00, balance loss. Curtis, Agnes Ryan, $800.00, doubtful. Carried since Feb. 26, 1916.. Dalrymple, H. H., $1,000.00, doubtful. Past due, sent to Bank of Montpelier for collection. Dougherty, Jno. M., $800.04, doubtful. "With R. G. Dunn & Co. for collection. Desoret Film Co., $18,050.00, slow. See "Important Loans." Eble, Francis X. A., $1,000.00, slow. Long past due, no interest. Edwards, H. C, $4,000.00, bad. Carried since 1916. Attorney who claims that bank owes him this amount as fees, refuses payment and bank will have to bring suit. Electric Service Co., $129.00. Considered collectible. , Farrell, Agnes, $34.00, doubtful. Past due, no interest. a Fox Farm and Jesse W. Fox, $150.00, doubtful. Another bank has all of his property. Foubert, E. O., $250.00, doubtful. Carried a long time. Goff, Harold, $15.00, slow. Reducing. $, Hammer, Frank A., $49.50, bad. Long past due, pays no attention, v Hanson & McDonald, $90.00, bad. Out of business, no assets. Hart, James E., $155.50, doubtful. In hand of attorney. Duo June 23, 1917. Hansen, N. P., $1,087.50, doubtful. Mining stock collateral of unknown value. Heath, A. Roy, $55.00, slow. Real estate man, good but slow. Hebaus, Jos. R. and wife, $890.00, doubtful. Property all in wife's -name, who will probably claim exemption. IHendrlckson, Jon , $150.00, slow. Considered good but slow. Henderson, T W., $180.00, slow. Endorsed by Utah Nat. Underwriters Corp. who will h vo to pay. Homer, Russell K. et al, $100.00, bad. Been in hands of attorney for a fl long time, no results. ' H Horr, J. H., $2,060.00, doubtful. Carried and renewed many times. H Jensen, Otto L., $71.10, slow. Attorney has received an assignment of in- III forest in bonds, Will ultimately collect. M Kane, A. J., $20.00, bad. Money loaned- maker in order that he might re- H turn to Nevada. H Koyes, F. O., $100.00, slow. Very slow, but good. 1 M Keystone Cons. Mining Co., $5,000.00, slow. Endorsed by T. H. Fitzgerald, -M G. S. Holmes, W. O. Kay. Holmes is perfectly good, bank looks to him for pay- H ment H Kenton Hotel Inc., $28,779.13, slow. Bank has taken property' over. See H ''Important Loans." H Kelly, E. W., $2,025.00, slow. Clothin gstore. Good but slow. $275.00 is M endorsed by L. C. Kelly. H King, C. E., $250.00, doubtful. Contractor, no property. H Kittle, P. C, $11,503.19, bad. Loan unsecured. Maker lost all his money H and has no property. Bank hopes to collect some day, as party has made and H lost two or three fortunes. H Langford, J. E., $3,880.80, bad. Unsecured. Maker has nothing but some M mining properties which are only prospects. H Lawton, Esther E. and Ida A., $725.00, slow. $1,225.00, C-M on dental out- H fit from which bank will get about $725.00, balance loss. H Larragan, Anastocis, $500.00, doubtful. Sheepman, can't locate. H Lehners, John F. and C. H. Carlquist, $125.00, doubtful. Lohners, N. G. H and Carlquist trying to get out of paying. H Little, R. W., $185.00, doubtful. In hands of attorney. M Lund, Henry C, $500.00, bad. In hands of attorney, no property. H McClatchey, Thos., $100.00, bad. Gone to England. No replies. H Mclntyre, D. C, $100.00, bad. A year past due. No property. H McManus, J. W. ($19,91)2.57), $5,000.00, slow; $2,500.00, doubtful; $12,492.57, B bad. Kenyon Cafe. Owned by bank, rented for $600 per month, of which bank ,H gets half. H Miller, David and Richards, J. H., $30,000.00, doubtful. H March, W. H., $149.00, doubtful. C M on old automobile carried since March H 1, 1917. No interest. M Mattson, David, $14,018.05, doubtful. Loan carried since 1914. Banker has H some collateral securities which they hope to collect. H Martindau, L. R., $1,150.00, slow. Secured by stocks. H Marshall & Johnson, $2,756.17, slow. Carried since 1914. In hands of at- H torney. No loss. H Margetts, Edw. J., $1,000.00, slow. In hands of attorney. Personal property :H attached. H Meilstrup, A. P., $100.00, doubtful. Renewed many times. H Miller, D. T., $125.00, bad. Collateral notes all past due. M Miller, C. W., $500.00, slow. Reduced from $1,200.00. M Morris, Geo. Q., $390.00, slow. Good but very slow. H Moore, L. S., $200.00, bad. In hands of attorney. Can't locate. jjH Moir, A. J., $75,00, doubtful. M Moss, E. Ed., $425.00, doubtful. In hands of attorney, Idaho Falls. 'H Mulholland, I. A., $700.00, slow. Very slow and doubtful. M National Cash Co., F. X. Eble, president, $700.00, slow. Company out of M business. Eble in army. Bank holds some stocks worth about $700.00, balance M loss. H Naylor, W. S., $478.91, slow. Old C-M on cows. iH Newman Sheet Metal Wks., $300.00, bad. In hands of attorney. Bankrupt. 'B Northrup, Andrew H., $50.00, slow. Endorsed by Wm. Buchanan. iH Olson, A. A., $495.45, doubtful. In hands of attorney. M Perkins, D. C, $100.00, doubtful. Signed also by F. A. Stram. M Price, Jr., Lorenzo, $5,280.00, slow. In hands of attorney. Long past due. M Prince, J. S., $50.00, bad. Gone away, long past due. H Puvidy, Geo. E., $537.26, slow. Dividends from collateral stock gradually M reducing. H Quincy Land & Lease Stock Co., $1,955.20, doubtful. Long past due, no M interest. H Quealy, J. A., $300.00, doubtful. In hands of attorney. M Ray, Fred E., $125.00, slow. Signed also by J. H. Turner. . M Feffling, A., $130.00, doubtful. Duo for some time, no interest. M Richards, J. Heber, $1,000.00, slow. Deceased, estate good. M Rognon, R. G., $340.00, doubtful. Works in garage, no property. H Rudv, Ira R., $100.00, slow. Signed by Frank R. Rudy who is good. H Saddler, W. G., $130.00, slow. Also signed by A. Van Dyke. H Salt Lake Tungstonia Mines Co.. $2,000.00, slow. Ten personal endorse- H ments from whom note can be collected. jH Schrader, Otto E., $95.00, slow. Long past due. M Seymour, Caroline, $200.00, bad. Gone away. M Shurtllff, Jno. W., $500.00, doubtful. In hands of attorney. . M Silk Shop, The, $1,200.00, doubtful. In hands of attorney. Fire insurance H Smith', E. O., $145.50, doubtful. In hands of attorney, collateral of no value. Smith, I. E., $952.56, bad. Past due for two years. H Smith, Jr E. A., $99.67, doubtful. In hands of attorney. M Smith, Bert L., $2,112.11, doubtful. Past duo, no interest. Smith & Sons, Nathan, $299.48, bad. Carried since Sept. 13, 1915, N. G. H '"' Smith, Franklin E., $808.96, slow. Slow, but considered good. H Stout W H.. $150.00, doubtful. In hands of attorney. m luHivan Plastei -Block Co., $4,700.00, slow. Bank has stock as collateral H See "Important Loans." iQnnDi H Taylor.Richards Co,, $655.00, slow. Richards deceased. H Taylor Bros., $1,000.00, slow. Past due, no interest. H Tannart, R. H., $300.00, slow. Past due no 1' -M Throup, Jno. I., $20.30, slow. Endorsed by W. I. Cannon. M ZZTlZh!Tl :ea d. F. b.,. See "Important Loans." ntovPt 1 Walker, H. W.. $575.00, doubtful. Long P. ? V ,5Sn H A' CSUTIST.- Gone tow Cfr,f jjnj. 1.1.. No . Thirteen real estate loans aggregating $6,928.i4, siow. m H' LOANS TO OFFICERS OF OTHER BANKS. M O. C. Beobo, cashier Zion's Savings Bank and TruBt Co., $17,500.00. Bonds, M Montana-Utah Sugar Co., $11,750.00; Stock, S. L. Iron & Steel Co., $7,300.00. m Geo. G. Knox, assistant cashier Nafl Bank of Republic, Salt Lake, $7,000.00. ' 4,000 shares Midvale Mineral Co.. worth $12,000.00. M Butler, G. H., assistant cashier Utah State National, $300.00. Unsecured. 1 Cannon, Preston J., secretary S. L. Security & Trust Co., $1,600.00. Un- H secured. B. Davis, W. T.. cashier State Bank Brigham City, $550.00. Unsecured. m Hendricks, Geo. G., cashier State Bank Richmond, $300.00. Unsecured. H ; Swan, Douglas A., cashier Pocatello National, Boise, $500.00. Unsecured. H Nelson, Sumner, assistant cashier Commercial National Bank, Ogden, $4,- H 450.00. 2,000 Empire Copper and 1.000 Michigan-Utah. B Parrish. Joel R.. cashier Farmers State Bank, Woods Cross, $600.00, Mich- H igan-Utah, $600.00; $360.00. Pingress, D. R cash'er Stockgrowers' B. & T. Co., Pocatello, Ida., $5,000.00. H 60 shares stock B. & T. Co., Pocatello; 50 shares Pingree Cattle Co.; 1,900 m shares Prince Cons. M. Co. H Randall, J. B. vice-president Oakley State Bank, $5,000.00. 35 shares Oak- m ley State Bank; 400 shares American Fork Exp. Co. H Randall. Earl, cashier Bingham State Bank, $3,400.00. 1,000 shares Sani- Jm tary Market, Bingham. H Ross, A. S., president Lemhi Valley Bank, Gilmore, Idaho, $6,000.00. 11,400 M shares Pittsburgh-Idaho Co.; 90 shares' Lemhi Valley Bank. H Sheppard, Joe, president Bear Lake State Bank, Idaho, $2,500.00. Un- m secured. H Thompson, C. H., president Bingham State Bank, $3,250.00. Unsecured. H Thompson, C. H $4,120.74. Unsecured. H O. C. Beebe, $17,500.00. Bonds, Montana-Utah Sugar Co., $11,750.00; 225.54 i shares Salt Lake Iron & Steel Co., worth $7,300.00; total, $19,050.00. Hi Butte-Salt Lake Inv. Co., $37,921.79. Mr. Heiner, president; Geo. E. Ford, m i vice-president. Real Estate Holding Co., shows net assets of $115,000 in con- m servative valuation. H Copper Basin M. Co., Jno. Pingree, president, $15,222.35. Endorsed by DI- 1 rectors Pingree and Heiner, each of whom is good. H Deseret Film Co., $18 050.00. $6,800.00 endorsed by J. L. Adams and K. Q. H Cannon; $7,250.00 endorsed by Director P. J. Cannon; $4,000.60 endorsed by H Chas. F. Wilcox. Bank will have to look to endorsers for payment. H ' Georgia Mining Co., $6,000.00 and Jacobson, A. C, $6,000.00. Both loans M are for benefit of mine endorsed by A. C. Jacobson, E. W. Natson and Directors H Pingree, Ford and Godbe. Mine not in operation and each endorser expects to H pay his part of the loan. Endorsers are good. Hi Holmes, G. S., $5,000.00. Unsecured. No statement. Owns considerable B property and said to be worth $750,000. H Hubbard, W. E., $5,200.00. Real estate man. Secured by 11,100 shares of -, Lim Hill Con.; 20,000 shares Montana-Bingham Con.; 11,600 shares State L. & T. H ' Co. Total value sufficient. Kay Merc. Co., $22,250.00 and Kay Investment Co., $7,000.00. Bank holds H all stock in both companies, except $5,000.00 in Kay Merc. Co. Combined assets H of both companies total $284,000.00. Liabilities $47,250.00. H Kenyon Hotel Inc., $28,779.13. Company owns furniture and operates Ken- M yon Hotel on a lease. It was organized by bank to take out notes of former H " leaser. Assets could not be disposed of for amount of loan, but company is now H making money. Note reduced $2,500.00 from last year's profits, and interest H paid. B Knox, Geo. G., $7,000.00. Assistant cashier Nnational Bank of the Republic, H now in army. Secured by 4,000 shares Midvale Mineral Co., worth $12,000.00. H McDonald, A. M., $7,500.00. In shipbuilding game at Seattle. Secured by H 5,000 shares of Prince Consolidated Mine Co., listed value $2,500.00. Maker ' probably worth $50,000.00. H McManus, J. W., $19,992.57. Kenyon Cafe. Dummy note representing fix- H) tures of Kenyon Cafe now owned by bank. They are probably worth from $5,- H 000.00 to $7,500.00. Bank received $200.00 per month from rent. Probably loss M from $10,000.00 to $12,000.00. H Miller, David and Richards, J. H., $30,000.00. Richards, president, and H Miller, vice-president of Idaho National Bank, Boise. Richards was considered H worth about $70,000.00 before becoming associated with Mr. Miller. The as- H sociation has not proven profitable for Mr. Richards and his present financial H ' condition is a matter of speculation. H Monahan, J. E., $6,500.00. Discounted for Stockgrowers and Ranchers H Bank, Reno, who agree to repurchase. Note is long past due and should be H collected. H Mullett, Kelly Co., $7,350.00. Gent's Clothing, 1917 statement shows assets M $80,108.00, all buick but $7,000.00. Debts $27,000.00. H ' Naylor Auto Co., $6,398.38. Warehouse receipt for seven new Studebaker H autos in storage with Studebaker Bros. Co. of Utah. H Naylor Co., L. C, $24,937.75. Auto dealer at Idaho Falls, stoc kin Naylor H Auto Car Co., par value $2,470.00 and assigned note totaling $20,314.92. State- B ' ment shows assets of $192,151.00, liabilities $142,666.00, net $49,485.00. j Nicol, R. W., $14,500.00. President Capital Electric Co. Secured by 24,234 H shares of Capital Electric C, wrth $24,234.00. Company wholesale electric sup- H ' plies. Hti Noblitt, Jno. D., $11,000.00. Secretary, Cokevllle Land & Livestock Co. Se- f cured by 100 shares of Cokeville Land & Livestock Co., worth $14,000.00. .' Oakley State Bank, $20,000.00. Certificate of deposit. H Parrott Bros. Co., $10,332.22. Notes are past due. Endorsed by D. J. Par- B rott, R. J. Cooper and C. H. Thompson, Thompson said to be perfectly gnod Hil for amount. Hl Rathman, Geo. H., $8,416.85. Bonds of American Flag Mining Co., $18,- il 500.00, worth about $9,250.00. Hf Rose Pickle and Vinegar Co., $9 275.00. Company owned by bank. State- h ment shows quick assets $24,482.00, C. L. $14,535.00, net $31,600.00. i Rust, Geo., $6,630.00. Secured by 7,400 shares of Prince Con. Mines' Co. j worth $3,700.00. Also mortgnge on 309 acres of land at Park City, Utah. ': Schweitzer, Thos., $7,400.00. Secured by chattel on 440 cattle, worth $25,000. 1 Sevier River L. & W. Co., $10,000.00. Secured by land contracts totaling $15, ! 762.00. . Shaw Motor Co., $6 974.77. Collateral notes $2,400.00. Bank claims to have more than enough to cover. Could not locate them during examination. Stephens, Frank B $9 500.00. Notes also signed by Directors Binnard, Ford and Pingree, and is not secured as required by law. State Loan & Trust Co., $5,500.00. No statement. Company owns good building. Considered good by directors. m Summerhays, J. W., Sons. Co., $10,800.00. Wool brokers; assets, $22,423.00; debts, $18,139.00. No capital in business. All borrowed money invested in wool. Utah Packing.Provlsion Co., $20,277.51. Director Pingree is president and Director Ford, secretary of this corporation. Deal on to sell plant for $100,-000.00. $100,-000.00. Personal property considered worth $40,000; owe $16,000, besides bank notes. Utah Wool Pulling Co., $9,800.00. Have wool on hand to take care of all debts. . Vahrenkamp, F. H. & Bauer, B. F., $14,447.38. Bauer is heavy stockholder? J in Salt Lake Copper Co. He is said to be worth $500.00. Vahrenkamp, F. H $7,326.93. President Pingree personally holds 67,500 shares mining stock belonging to maker. Considered worth $33,750. Wasatch Woolen Mills Co., $8,050.00. Late statement shows assets $80,-300.00; $80,-300.00; debts, $42,700.00. Western Resources Promotion Co., $5,500.38. Endorsed by S. A. Greenwood and Clinton R. Ray, both of whom are wealthy. Western Livestock Loan Co., C. A. Glazier, $35,255.00. Secured collateral notes $35,260.00. Then follow loans and discounts secured by real estate mortgages, and other liens on realty, and a compilation of the bonds, stocks and securities on hand, with the face value, rate, book value and estimated value. Many of them have the notation: "Slow and undesirable;" "worth face value or nothing;" "Not present known value;" "Value unknown;" "Stock probably of very little value," etc., etc. Then follow bonds and warrants, claims and judgments, and other rertf, estate owned, and statements of moneies due to and from banks, rediscount and borrowed money, etc Then the list of notes pledged as collateral for bills payable, copies of which are carried by the bank, which include a large number of names of individuals in-dividuals and companies, more or less prominent and variously rated. PROFIT AND LOSS FOR 1917. Receipts. Balance forward $ 41,205.11 Interest and discount $ 88,756.09 Exchange 3,126.31 Service charges 2.908.00 Rents 8,750.88 Dividends from stocks 7,107.00 Recoveries on items previously charged off 13,009.63 123,657.71 $164,862.82 Disbursements. Expense $ 69,362.15 Interest paid 23,184.08 Taxes . 5,360.38 Less charged of 11,890.49 109,797.10 $ 55,065.72 Dividends paid 11,250.00 Transferred to surplus ! 25,000.00 36,250.00 Balance In Undivided Profits Accounts $ 18,815.72 Recapitulation. Gross earnings (not including recoveries) $110,648,08 Less expense, taxes and interest paid 97,906.61 Net earnings for year $ 12,741.47 Losses recovered 13,009.63 Balance carried forward from 1916 . 41,205.11 $ 66,956.21 Disbursements: Losses chargd off $ 11,890.49 Dividends 11,250.00 To surplus fund & 25,000.00 48,140.49 Balance in Undivided Profits Account, Jan. 1, 1918 $ 18,815.72 ASSETS OR LIABILITIES NOT SHOWN ON BOOKS. Charged Off Notes of Doubtful Value. RECAPITULATION LOSSES, ETC. Estimated Value of Assets Estimated not Shown Resources Slow Doubtful Losses on Book "Bad Debts," other overdue paper, all other loans and discounts $169,601.46 $ 94,505.60 $ 48,734.99 1 Premlum on U. S. bonds Bonds, securities, eta 151,548.88 150,000.00 Furniture and fixtureZZIlIZI 2,376.78 Other real estate 123,678.67 Cash items . Total $293,280.13 $246,054.48 $201,111.77 SURPLU8, UNDIVIDED PROFITS, ETC. Estimated accrued Interest receivable, Surplus fund $25,000.00 Estimated accrued interest, taxes and expenses payable, Net undivided profits .... 20,897.94 Total $45,897.94 |