Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-03-03
SAYS YoUMANs PUT BANK
IN WORSE SHAPE WHEN
ORDERED TO REMOVE BAD
PAPER,
UPHOLD SEVERlsONs ACTION
Committee Says Bank Examiner
Is Entitled to Credit and Not
Censure.

evidence, records, reports and cor
respondence we find that the state
examiners department was not in
conspiracy or collusion with any per-
son in the closing Of the Savings De.
posit Bank Of Minot, North Dakota,
on October Goth, 1918" is the open
ing statement made by the special
joint committee which was appointed
to investigate the charges of conspir.
acy and collusion made against the
state bank examiners department by
Grant Youman's in his book, Legal
lied Bank Robbery"
The committee report goes on to
say, that "in July. 1912, an ex-
animation of the Savings Deposit
Bank of Minot. North Dakota, was
made by Mr.. Bleeker under examiner
Knudson's administration. Upon this
report Mr.. knudson in his letter Of
criticism ordered that paper in the
bank aggragating $44,233.OO be re-
moved from the assets of the bank,
the same to be removed by Novem-
Der 1st, 1913. Pursuant to such or
der, on October 30th, 1912, the paper
ordered out by Mr.. Knudson was re-
moved from the assets of the bank
by Mr.. Youmans through the follow
ing transaction: ...
con October 3Oth, 1912, mortgages
practically all of which were of the
same character of mortgages as the
socalled Lewellyn mortgages, prac-
tically all of which mortgages repre-
sented the purchase price of lands
which were decided back Immediately
upon the execution Of the mortgages;
these mortgages were all assigned on
October 30th, 1912, by the trust conf
pany to the Savings Deposit Bank Of
Minot, North Dakota, and the follow.
ing statement will show the total OF
such transaction. I
Trust Company the Gainer.
! October II, 1912.
Checking account of Saw III
ings Loan 4 Trust Com.
pany credited in the bank $50, $4,000
(This credit consisted of
% notes and mortgages
made by LOumans of date
October 26th, 2Sth and
29th, 1929 -
October 10, 1912.
The Savings Loan & Trust Com
pany account in the bank was charg-
ed with the following items:
Savings Loan & Trust Com.
pany note ...........$ 5,25O.OO
G. S. Youmans note ....... 5,25O.O0
w. M. Youmans note ...... 5,250.0O
Shomer note .............. 5000. 90 !
Lokken note .............. 100000
Interest credited .......... 10000
Paul Crum contract remov. ~
ed 2,225.Oo
Other real estate credited
Trust Company ......... 17,75S.00
Total .................. $44 ,2230D
From the above statement it can
readily be seen that the trust COM
pany, through this transaction, made
a net gain in cash of $8,417.OO, that
being the difference between $52,-
5000, the total of bad paper assign
ed to the bank on October 3Oth, 1912,
and $44,2330O the total Of the bad
paper removed.
Assuming that the $52,650.00 worth
of paper which was on October Goth,
1912, assigned to the bank from the
trust company was worthless paper
as the evidence clearly shows, the
credit was, then Mr.. Youmans by his
method of complying with Mr.. Knud-
sons order, after the transaction was
closed put the bank in worse shape
after complying with the order than
it was before by increasing the aggre-
gate amount of bad paper in the bank
Eurfh hn nrIor
was expressly violated subsequently
in few particulars. On November
18th, 1912, the Savings Loan & Trust
Company note for s5,25O.O0 again
was put into the bank and some Of
the fraudulent ard worthless paper
was taken out and replaced by the
trust company note.
Ordered to Close Bank.
The report then goes on to tell of
numerous other transactions made
during the year 1913, contrary to in
given by Bank Examiner
Knudson and also tells of meeting
of the state banking board, at which
meeting the bank examiner was in
structed to take charge of the Minot
bank if it's condition had not been
This part of the report reads as
follows:
"Pror TO the time of Mr.. Severt-
sons examination of the Savings De.
posit Bank of Minot. North Dakota,
to-wit. on October 18th, 1913, the
Banking Board held meeting, and
a copy of the minutes of said meet.
ing is herein set forth:
"tA special meeting of the State
Ranking Board was held in the exc
,utive offite this 18th day of Octo-
ber A. D. 1913. The members pres.
,nt were: Governor l.. B. Hanna, Sec
'etary of State Thomas Hall, and At
.orney General Andrew Miller. The
report Of the examination of J. B.