The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1919-08-07
the time was capitalized for $4,000
and had a surplus of $12,50O and total
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LIE CllIle was cdplCdllZcu LOT 91U,OUO
and had surplus of $12,500 and total
footings of $4,000.
On April IL Egan wrote from Min
neapolis to E. H. Mann, who had been
installed as cashier requesting him to
accept notes to the sum of $19,4OO,
and credit Egan's account that sum.
A short time later Egan added St, 400
more notes to the collection and like
sum was credited to his account. All
of this paper is alleged to be worth
less. Most of these notes were dated
back of the time when Egan and Mann
took over the bank, thus putting the
former owners of the bank up against
the buzz saw for responsibility for the
poor paper. However, that is where
paper" figured strongly, for the paper
on which these notes were printed was
of much lighter texture and quality
than the stock form of the old bank
And this clever play is spoiled, say the
state officials.
Most of the notes proffered by
Egan to his cashier were presumably
executed by residents of Golden Val
ley county around Beach, N. D., and
over the line into Montana, the Mon
tana paper bearing IL per cent inter
est.
Tips that led state officers to an
examination of the bank resulted last
Friday in the arrest Of E. H. Mann,
cashier, on the charge of making
false entries. swell, Egan made me
long haired goat and pulled my whis-
kers, might as well confess" he
said. His confession made public to-
day by the attorney general will have
the banking boards in three other
states busy for some time.
Egan wrote Mann from MINNEAPOLIS
that he was going to buy the First
State bank of Amboy. MINI. ~ is
sued cashiers check for $4,000 in
favor Of c.. w. Baumgartner who
Egan was to buy the Amboy bank
from" said Mr. Mann Egan said he
would send me personal check on
the First State Bank of Amboy to
cover this as soon as he completed the
purchase of the bank. I entered the
cashiers check I drew for $4,000, as
in the sum of 500 to cover the trans
action"
South Dakota Bank Bought.
With the Amboy, Mimi, deal still
in the air, Egan sought to buy a bank
at Harrisburg, S. D., and drew on the
First State bank of Jud for 1880.
He ordered Mann to draw on the Har-
risburg bank in two $4,000 drafts af-
ter the transfer of the South Dakota
institution. One of these $4,000
drafts was honored, but the other was
protested and not paid. This revert
ed to the First State bank of Judd and
raised Egan's overdraft account to
$13,70O. However, this was cut down
to $1,000 by draft for $4,000 from
the Beach State bank, Beach. N. D.
The Beach State bank holds $35, 900
worth Of certificates of deposit issued
by Egan. How many of these are
worthless has not as yet been deter
mined.
Early in July Egan left for the west
for his health, which had failed under
his strenuous work. He took with
him pad Of blank certificates Of de-
post, numbers 1900 to 5000. The
state officials were late Saturday in
receipt of wire from the Utah State
National bank of Salt Lake city advis-
ing that they held certificate of deposit
No. 2912 negotiated by Egan through
the Central Bank Of Bingham, Utah
This was in the sum Of SO, 708.38, and
executed not in or by the First State
bank Of Jud, but personally by Egan
and cashed in Bingham, Utah. The
North Dakota officials cite the fact
that this Bingham transaction was
with certificate Of deposit No. 1912
from the pad numbered 1900 to 5000,
and wonder from which end Egan used
the blanks, whether there are SO others
in circulation or but IL.
Mill City Bank Hit
And the Liberty State bank Of Min
neapolis holds the empty sack. On
the very day, Aug. /, when Assistant
Attorney General Sheets ordered the
bank closed and State Bank Examin--
er o. E. Lofthus declared the bank de-
funct came to Jud representative Of
the Minneapolis institution. They held
as collateral "a shares Of stock in the
First State bank Of Jud which Pierce
Egan had given them Is security for
: loan Of 5000 he used % secure the