The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1919-10-24
FARGO BANK SOLVENT,
ACCOUNTANTS REPORT

Fargo, N. D.-CnargeS Of gross
misrepresentation and outright lying
were made this week by auditors EN-
North Dakota against Attorney Gen
eral Langer and Secretary of State
Hall, who closed the Scandinavian
American Bank at Fargo, one of the
North Dakota faMner-owned Non
partisan league and other farmers
cooperative enterprises.
The charge was made in report
of the Equitable Audit company,
which examined the affairs of the
bank for State Bank Examiner Lof-
thus, VINO was placed by the supreme
court in charge OF the institution af-
ter receiver appointed contrary to
law by LANCER and Hall had been
ousted.
The audit shows beyond question
that the bank was solvent at the time
it was closed, and therefore that its
closing was political move against
the Nonrartisan league, which, while
not directly interested in the bank.
was heavy borrower of it.
Deputy State Examiner p. e. Hall
dorson, acting under instructions of
Langer and Hall, reported that the
Scandinavian American had "bad
debts of $46,5O3.65.
q !
been closed $7,765.34 had been paid
on these bad debts" the audit COM
pany's report shows, and directors of
the bank have taken up an additional
$25, 600. "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 Halldorsen also listed
loans of $169,97S 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 Tennescn & Cuplsr of
( Fargo, asked to pass on the paper
listed by Halldorson as sspast due
considers only S5,S49.5o to be poor
paper.
The audit comptA report shows
that Halldorscn apSs was wrong in
calculating the reservss 1eq IL / 4einents,
applying one method of calculation to
Il: A
fort to show that it was below reserve
limits, and applying more liberal
methods to other banks which he exl
amined. A number of other glarina
mistakes are pointed out in the Hall.
dorson report, making that document
worthless on any, consideration, ac-
cording to the banking department.
The Equitable Audit company
has found, moreover, that $780,
000 OF real estate first mort
gage bonds, held by the Scam
dinavi;sn american bank, have
disappeared.
State Eanll Examiner o. t..
Lofthus has served notice upon
the Fidelity 4 Casualty Com
pany OF New York City, which
went on HalIdorson's bonds,
that there is Il shortage in the
property of the bank and that
the bonding company will be
held responsible.
MANY PAPERS FLyNCHED
Hal'ldorson has admitted that dur
ing the six days in which he was act
ing 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 rec
ords and documents taken from the
bank during the time he was receiver.
Employees of the bank have made af-
fidavit that private attorneys and
aides of LANCER spent hours at timc
80 SAO VoulC, CdMnS OuG WldC Lley
pleased, without giving receipts or let
ting anybody know what they were
taking.
Bank Examiner Lofthus, as the re-
suit OF receiving. this information.
served notice upon Langer recurring
tne return of a. property taken from
the bank. After yainly trying to get
court order so that he would not
have to return this property, LANCER
after two days delay, sent back
package Of documents. When this
was checked over. however, it did not
contain the missing $1,000 bonds.
The North Dakota Guaranty fund
commission held a meeting last Tues
day to examine the affairs Of the bank.
The members of the commisston look
ed into the report Of the Equitable
Audit company. special report sub.
n, tod hV, no,,I, EN,,o vt.aA,