Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-06-21
CITY BANK PROBE
/. TESTIMONY IS MADE PUBLIC

@. They were acquiring a bank was
carrying that as other real estate?
A.. Yes. as other real estate. But
Grady and I advised them that they
had not better do that because we
didn't think that the department
would stand for it. and that IL the
department stood for it we didn't
for it. So MI. Olson settled with Mr..
Grady personally for the house. So
far as the house deal o stands it
has no, connection with the bank
deal at ALL.
By Mr.. LANCER:
@. What inducements were offered
to the stockholders, If any, down
there to take. stock in the American
Exchange bank. do you know? A.
banks in the state. They said they
had n at Fargo, and they had one
at Grand Forks, and they wanted one
at Valley City, Jamestown, Minot and
Bismarck. They said they had to
have that in order to carry on the
business of. the Equity Packing Plant
at Fargo. and the Equity Co-opera-
tive Exchange at st. Paul; they
told them h reason they wanted
SNSAA VIC S"pAtdl was because IL
would have to take care Of these two
concerns and other industries the
state would engage in, and they
would get a million dollars of depos-
Its from the state and a million dol
lars of deposits from the Bank of
North Dakota.
Q. Say anything about what rate
they would get for it? A. They sdg-
gested the rate. They did not promise
any. They said that they would have
to loan to the Equity Packing Plant
at six per cent, and they could get
the state to carry it at five and make
m per cent. I think that is all 1
heard them telling about the rate of
Interest," did lot hear them making
any promises to the farmers as ia
the rate. T.
@. Who was doing most of the
talking? A. Box did most Of the talk
Ing because he was there all of the
time. Hastings was there only part
of the time.
@. What else did Box say? A. With
reference to the bank? A. Yes. A.
Well I cannot recollect anything par.
ticular because he was In the direc-
tors and talked to farmers and
that was their business. I did not &c
in and bother very much. -.
@. How long was Box around
there? A. Box was there about si1
OF seven days.:
there? A. Hastings was there abour
three days I think. 3
@: Did you talk to them about thu
commission they were making? A.
did Aot say anything about the com
mission = they were making. Grady
and I talked to Box about the com
mission they were making.
@. What did Box say about it /? A
Well Grady told them he though
they were pulling down a pretty goot
commission. And Box said. Why no
he says, the commission doesn'
amount to anything in the way it ha.
to be split up, and Grady says how
does it have to be split? And he say
it has to be split four ways-put u,
his fingers like that (indicating)-
Hastings n fourth and 1 get on
fourth and Lemke and Townley re
the other half.
q. He told that to you and Grad.
did he? A. Yes.
stockholders came in? Did they tax,
over the bank at that time? A. No
they had a stockholders meeting bu
that was a week or ten days befor'
they took over the bank. They ha,
the stockholders meeting and elected
their directors and the directors me
and elected their officers.
@. Now at the time your bank wa
purchased by Hastings was Hasting
elected an officer of your bank? A
No.
.. Was he ever an officer of'you
National bank? A. No, never was al
officer of the National bank.
@. Was Mr.. Box? A. No. "
Q. Now at the time the farmer
purchased the National bank did the,
know Hastings had bought it a
$146,o0O? A. No they did not know
anything about it at all. I don't re
member any farmer d who inquired
what the deal was.
@. Do you know how demands wer
met for this stock? A. Yes.
Q. How were they done? A. The;
were paid by drafts drawn by tn
American Exchange bank on tn
Scandinavian Bank of Fargo an,
signed by j. j. Hastings as vice presi
dent of the American Exchange bank
Q. DO you know whether cash wa
paid or. notes given? A. Very littl
cash paid for the stock sold. 1T
@. Do you know about how much
A.. Yes, l could tell you approximate
ly. At that time there was in tn
neighborhood Of 80, 900 cash paid on
of, the 100000.
Q. What about the rest? A. TIL
rest are all notes.
G. We're they put back in the bank
A. Yes sir.
Q. How long were they in tn
bank? A. They are still there except
ing what has been paid. Mr.. 'Torkel
son the cashier tells me that the
have been reduced down to a sur
between 10000 and 1000 That i
what is left OF this, right aroun,
10000 is what is left of them.
@. Are &hese notes good do 20
know? A.. Well I would say that. tn
biggest percentage of them are good
They are not all good. H..
,j\ Q. Can you name some of the ba,
ones? A. I could If l had the list an,
could go over them. ,,
@. Here is the list Glands list +
witness). A. OF course there are som
OF them that are slow paper, but wi
undoubtedly work out all right.
By MI. Waters:
O. There was no stock delivered. A
! do not know, I think Torkelson ha
delivered a good deal of the stock.
think he is holding up the stock o
the doubtful ones. Richard Adcoc,
iESb,250 he is good but he is awfu
SLOW. Fred Bell that is no good. Con
sumers Store, you know al mucI
about that as I do. C. A, Baston. vo