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Show That Our Depositors Deposi-tors May Know Editor Citizen: Likely the depositors of the Bank of American Fork would like to know what progress has been made toward to-ward the cashing in of our deposits in the bank since the meeting of the depositors when it was unanimously unanimous-ly agreed to accept the cash offer of the Consolidated Holding Company. Com-pany. There were three conditions to the i offer made. First, that we secure agreements to sell from seventy-five per cent for our deposit liability. Second, that the buyer have ten days in which to go into the records and assets of the bank. Third, that a liquidation corporation corpora-tion be formed to take control of the assets of the bank out of the hands of the State Banking Dept. The first condition has been fully complied with. Depositors representing represent-ing between eighty and ninety per cent of our deposits have signed agreements to sell. In the matter of the second condition, con-dition, the State Banking Dept. refused to allow the auditors of the Consolidated Holding Company to examine the books and records of the Bank. The Depositors' Committee Commit-tee then went to Salt Lake and met with the Bank Commissioner, Mr. Starley and his attorney, and received re-ceived an understanding from tne Commissioner that an inspection might be made by the auditors under un-der the auspices of the Depositors' Committee, the report of the auditors audi-tors to come direct to the committee and not to the buyers. The Commissioner Com-missioner was opposed to goin-j into back history of the administration of the affairs of the Bank, but stated stat-ed that he was not opposed to the present status being determined. The committee acceded to the wishes wish-es of the Commissioner and eliminated elimi-nated the requests for an oxamina-i oxamina-i tion of items pertaining to past lus-tory. lus-tory. To our surprise when our auditors au-ditors presented themselves to make the examination, they were igein refused. We then appealed to the District Court, where, after opposition opposi-tion from the State Banking Dept. we succeeded in getting an order from Judge Turner allowing a member mem-ber of the Depositors' Committee and one agent or attorney to examine ex-amine the books and records of the Bank of American Fork, and Mr. Baxter, of the auding firm of Scholefield, Wells and Baxter, was named as the agent to make the examination. It is just too bad that we were not permitted by the court to make a complete audit of the books and records of the bank, as the judge himself should have been concerned in knowing that the accounts ac-counts were O. K. inasmuch as he had accepted and approved the reports re-ports of the State Banking Dept. In the matter of the third condition, condi-tion, a petition has been filed in the District Court at Provo, seeking the transfer of the assets of the Bank from the State Banking Dept. to a Liquidating Corporation, and the hearing on the petition is scheduled for September 12th.' Now for a comment or two on the situation. It is the apparent aim of the State Banking Department to block our every move to dispose of our deposits for cash to the Consolidated Consol-idated Holding Company, and the unfortunate thing is that this blocking block-ing and all the expenses connected with it, will doubtless be charged to the Bank of American Fork. The Banking Dept. have an agreement with their attorneys to pay them $50.00 per day for every day they appear in Court and $25.00 per day for office work. Just think of it paying their attorney $25.00 per day to sit in his office and plan to keep the depositors from doing what they want to do. The Banking Department say they expect to get a big loan from the Government so that the depositors may realize from thirty-five to forty per cent on their deposits, and then have an equity in the Bank's assets. Interest on the Government loan would have to be paid and expenses both Governmental and State would have to be met. and the loan w-ould have to be all paid back. True, it would give the State Banking men a job at remuerative wages. In the matter of the disposing of our deposits for cash, the Depositors' Committee acted in good faith, feeling feel-ing that it was an opportunity that we could not afford to lose, knowing know-ing conditions as we did, and we feel yet that the proposition is a good one, and we hope our depi-tors depi-tors will stand back of us. Vs a committee we have tried to iaithful-ly iaithful-ly serve our depositors, realizing that the life savings of many of our old people, who are rapidly passing away, and also the savings of our widows and orphans were involved. We feel that the stand of the Utah State Banking Dept. is entirely un-I un-I justified, and actuated by selfish motives. Are you willing to stand by us? Respectfully submitted. Geo. F. Shelley, Secty. Depositors' Committee Bank of American Fork. We have heard that story before without realization. If a loan were secured of sufficient size to help our depositors materially, the Banking Department would have to expend hundreds of dollars in clearing up titles, etc. which would all have to be deducted from the amount received re-ceived from the Government. It is my personal opinion that the underlying un-derlying object of this loan is that the State Banking Department might remain in charge of the Bank and continue to draw their salaries and fees, which, to we common people peo-ple who earn their bread by the sweat of the brow, appear excessive. By a recent decision of the Supreme Court of Utah, no matter how large a loan the Government may make, the State Banking Department would remain in charge of the liquidating liqui-dating of the Bank. The Banking Dept. does not want to kill the goose that lays the golden egg. We do not want a Government loan at this time If a big loan were obtained, so far as further recovery by the depositors, the chances would be so slim that we may as well forget it. |