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ELDORADO BANK IS RECOVERING FORMER STATUS
BY W. R. POUNDSTONE ELDORADO, O., Nov. 18.-Despite such obstacles as two years of crop failures in the district serves, court delays on litigation for the recovery of loans on notes and mortgages and for collection of overdrafts end, last but not least, a considerable mount of frozen assets, the Farmers' State bank, the only financial institution in the town, which was forced to close in September, 1927. following the suicide of its cashier, : D. Miller, is slowly but surely reurning to its former prosperity unler new management, headed by E. Shewmore, president, and M. Spry, cashier. At the time the bank suspended operations agents of the Ohio state banking company shortage of approximately $100,000, of which about $45,000 had been taken from the funds of the institution. Bad loans accounted for the remainder of the shortage, it is said. To cover up this shortage it was necessary to levy 100 per cent assessment against the stockholders and to retain 20 per cent of all deposits. Depositors were asked to sign agreements for the retention of a part of their accounts until such a time as the bank would be in a position to make refunds. and the large majority of the depositors entered into this The levied against the stockholders made it necessary for some of them to dispose of their shares but ready market for them was found. indicative of the confidence of the community in the future of the institution. "Conditions which have existed in this particular section of Preble county the past two years been bad. Our farmers have had to contend with crop failures and their misfortunes have affected business in Eldorado, but the reorganized bank has been overcoming these handicaps in satisfactory manner and it doing its full share toward helping the community it serves,' Prestdent Shewmore said today. "The state banking department has advised against a partial refund to depositors for the time being, but this action will be taken as soon as possible. At this time our deposits approximate Two years ago suit was instituted by the bank against Fred Schlicutz & Son Elevator company and recently the bank was given judgment in excess of $20,000 but the court has not yet issued an order for the sale of the property to satisfy the judgment. Farm property represents much of the frozen assets of the bank. Crop failures have caused a stagnation of the farm property market. It is peculiar fact that farming conditions only six miles south of Eldorado have been normal throughout the period of crop failures in the country surrounding the town. It either has been a drought or excessive rainfall in this part of Preble county the past two years, whereas normal weather conditions have prevailed just a short distance south of town. The Farmers' State bank now has seven directors only three of whom served on the board previous to the closing of the institution. Formerly there were five directors. The president of the bank, Mr. Shewmore. operates a hardware store. His optimism to the future prosperit of the bank and of the community apparently is shared by the other business men of the town. They are going right ahead with their activities as if such a misfortune as a bank failure had never occurred.
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