Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1919-10-22

he bank was solvent at the time it was
closed, and therefore that its closing
vas political move against the Non
partisan league, which, while not di-
rectly interested in the bank, was a
heavy borrower of it.
Deputy State Examiner P. e. Hail.
dorson, acting under instructions of
LANCER and Hall, reported that the Scan
dinavian-American had bad debts" of
$46,5
Within IL days after the bank had
been closed $7,765,34 had been paid on
these bad debts" the audit company's
report shows, and directors of the bank
had taken up an additional $4,000. "Of
the amount taken up by the directors a
large portion is collectible, but is too
slow for the bank to carry" the report
states
Other Charges Also False.
Deputy Halldorson also listed loans
of $169,973 as past due paper" The
audit company's report shows that
Halldorson was entirely wrong as to
his figures and states that the law
firm of Tenneson & Cupler of Fargo,
asked to pass on the paper listed by
Halldorson as past dus," considers
only $5,S4960 to be poor" paper.
The audit company report shows that
Halldorson also was wrong in calcu-
lating the reserve requirements, apply
ing one method of calculation to the
OBSERVATION-DISCLOSURES in an effort to
show that it was below reserve limits
and applying more liberal method to
other banks which he examined. A
number of other glazing mistakes are
pointed out in the Halldorson report,
making that document worthless on any
consideration, according to the banking
department.
The Equitable Audit company has
found, moreover. that $1,000 of real
estate first mortgage bonds, held by
the Observation-Disclosures bank,
disappeared.
State Bank Examiner o. E. Loft
hus has served notice upon the Fid-
city & Casualty company of New
York, which went on Halldorson's
bonds that there is a shortage in
the property of the bank and that
the bonding company will be held
responsible.
Many Papers Pitched.
Halldorson has admitted that during
the six days in which he was acting
illegally as temporary receiver, private
attorneys, aides of Attorney General
LANCER and employees of the bank had
full access to the bank vaults, where
the missing $4,000 securities were kept
Halldorson has admitted over his own
signature that he would be unable to
Identify records and documents taken
from the bank during the time he was
receiver. Employees of the bank have
made affidavit that private attorneys
aides of LANCER spent hours at a time
in the vault, taking out what the " pleas
ed withiut giving receipts or letting any
body know what they were taking.
Bank Examiner Lofthus, as the re-
suit of receiving this information, serv.
ed notice upon LANCER requiring the re-
turn of all property taken from the
bank. After vainly trying to get a court
order so that he would not have to re-
turn this property, LANCER, after two
days delay, sent back a package of doc.
uments. When this was checked over
however, it did not contain the missing
$4,000 bonds.
The North Dakota guaranty fund com
mission held a meeting last Tuesday to
examine the affairs of the bank The
members of the commission looked into
the report of the Equitable Audit COM
pany, special reports submitted by Bank
Examiner Lofthus and the books of the
bank, and at the close Of the meeting q
resolution was adopted, stating, in part
I'VE wish to commend State Bank
Examiner O. E. Lofthus for the manner
in which he has handled the affairs of
the bank while in his charge and we are
especially pleased to note that a large
number of loans have been paid in full
while others have been reduced, and that
the work of collection is being carried
on with diligence and every effort made
to conserve and preserve the rights OF
all persons interested as we'll as the
stockholders and officers of the bank
Farmers Checks Good.
Collection of loans proceeded during
NH n
aminer Lofthus took charge of the bank
While Halldorson was in charge as pre-
tended receiver no effort was made to
collect loans.
An affidavit by President H. j. Hagen
Vice President N. G. Eggen and Cash
Ter P. r. Sherman of the bank shows
that individual loans. in which the Non
partisan league was in no way interest
ed, have been reduced $35, $3.50.
Loans made on notes to the United
Consumers Stores have been reduced by
payments of $4,000, showing that these
loans are made on excellent security and
are readily collectible.
Loans made on post-dated checks OF
the Nonpartisan league, the audit com
pany points out are not excessive loans
and the report of the Audit Bureau OF
IS cents on the dollar. The Equitable
Audit company says: These loans are
fully secured and it is good and safe
business for this bank"
Loans to the League exchange anG
Publishers National Service bureau are
listed as Excessive but fully secured.
The total collateral held by the Scan.
a report by Bank Examiner Lofthus, is
nearly two and one-half times the
amount Of it's loans.
Under the method Of calculating re
serve requirements applied by the state
banking department for years, the banl
has reserves far in excess of require
ments. A few loans appear to have beer
made in excess of the amount that thu
bank was allowed by law to loan to {
single individual or corporation. bu
steps are being taken to reduce these
loans In any event the presence of ex
cess loans does not give lgal warrant %,
tn closing of bank
1t appears from the Equitable Audi
company report that there was not thu
slightest excuse for closing the bank, ex
cept that by doing so the enemies of thu
Nonpartisan league hoped to cripple i
financially.
Leagusrs to Meet.
They have failed in this attempt a.
is evidenced by the stream of money
that is flowing into League headquarters
in payment of post-dated checks ahead
of the time that they are due. The de-
positors in the Scandinavian-America
bank have also been reasured as a result
of the searching investigation into thu
banks affairs and it is predicted tina
| thousands Of dollars in new account:
will come into the bank as soon as i
| is reopened. .., ~ - ---s.4 = =
At Fargo, October Fl, the farmers o.
the League will voice their opinion: o:
the attempt to wreck: the League
| through a bank-wrecking program
Plans are, being made for q series o
automobile parades from various points
| in North Dakota to Fargo. Presiden
A. c. Townley Of the Nonpartisan leagu'
| and Governor Lynn / Frazier are anon.