The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1919-10-31
DETERMINED THAT POST DATED
CHECKS ARE SAME
AS NOTES

Bismarck,N ~ d. Oct 90, 19l9-P. E.
Halldorson, the oldest deputy on the
state examiners force, and who had
served in this capacity since the time
Of Governor John Burke, was dis
charged last Saturday by State Exam
iner O. E. Lofthus, The letter of dis
missal was written in Fargo, and it
read:
This is to notify you that you are
, state examiner.
The part you took in the attempt of
wrecking the Scandinavian American
bank convinces me that you are not
worthy to hold any position of PUB
Lie TRUST OR HONOR. You have
ben altogether too willing tool of
those who criminally attempted to
wreck this bank, if not an active par
ticipant therein.-O. f. Lofthus. State
Examiner"
Halldorson was one of the two dep
uty examiners who under the direction
of the state banking board made an in
spection of the Scandinavian-Ameri
can banks books the last of Septem-
ber AS result of their report, which
declared that the bank had made more
than $734,000 in excessive loans, and
that in their opinion the institution
was clearly insolvent, the Fargo bank
was closed by order Of the banking
board Oct 2, and Halldorson was m
stalled as temporary receiver. o. e.
Engemoen, who had joined with Hall
dorson in making the examination and
in signing the report, made an af11-
davit when the matter came before the
supreme court two weeks ago to the
effect that he knew little or nothing of
the contents of the report when he
signed it. The ire Of the Nonpartisan
league chiefs was concentrated from
he first up on Halldorson, and his dts
missal was generally expected.
The Fargo bank opened Saturday
morning within fourteen hours after g.
divided supreme. court had declared it
sanitary institution, from the stand
point of sound banking and safe fnan-
ciering. Power to reopen the institu-
ton was vested in Examiner Lofthus
by the three league members Of the
supreme court who signed the major
ity opinion. Lofthus had joined with
William Lemke Of the league head
quarters and the Scandinavian-Amefi-
can bank and it's officials In petitioning
the supreme court to intervene ana
save the bank
The Courier News, President Town
ley's principal newspaper organ in this
state, declares that "Messrs. Lofthus,
e<k
rected with the bank case we're kept
busy the entire afternoon receiving tho
congratulations Of the patrons of tho
bank and numerous other friends"
Mr.. Lofthus makes an other state
ment in behalf of the Hagen.Townley
Bank:
"The people Of Fargo evidently
take no stock in Langer's charges
faith shown by the institution to,daI.
They apparently have become thor
oughly convinced that the closing Of
political trick. and such is the fact.
1.-THE Scandinavian-America is and
was one of the strongest banks in the
state There was no valid excuse for
closing it. 1t was a criminal act, q
the farmers banks OF the state. 1t is
to be hoped that the guilty ones may
be brought to time and get their Just
punishment"
Then President H. j. Hagen. author
of the letter in which President A. C.
Townley Of the National Nonpartisan
league was asked to make good his
promise to loan the bank $50O,000 OF
the public funds of the state of North
Dakota. "in order that we may be
saved from the fear of embarrassment
and Disgrace which the banks flnan-
cling of Townley and his enterprises
had brought very close, according to
Mr.. Hagen, has something to say:
"They" (referring to the farmers)
"have shown that in a crisis they are
willing to make sacrifices to protect
their credit. They resent the unlaw-
full assault Of the attorney general of
North Dakota, who they know is
nothing more or Jess than a willing
tool of the monopolistic interest with
in and without the state
Altho the supreme court held post
dated checks to be first class collateral
negotiable to the same extent as any
other bill Of exchange, payable at
some future date" President Hagen
would appear to have some doubts, as
he advises a prospective customer
that "The post-dated checks are being
naid. AND OUR BANK TODAY IS IN
THE BEST POSSIBLE FINANCIAL
condition" He also states that 1T is
our plan to get individual deposits
from the farmers throughout North
Dakota, so thatno assault can be made
upon it by the bank wreckers In thes
future"
BOY! PAGE ART ToHNGEN.