The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-10-06
FRAZIER BREAKS
SILENCE; THINKS
NOTHING WRONG
Tells Depositors If Money Is
Squandered Guaranty Fund
Will Protect EN-
HAGEN is IN THE DARK
League Banker Suspects, Tho,
Interests" Have Axe
Out for Him
HAGEN is IN THE DARK

Governor Frazier broke his lon,
silence on the matter of the Scandi-
navian-American bank scandal Sunday
when statement credited to him was
published in the Fargo Courier-News.
ToWnley's principal North Dakota Or
gan and which had shared with other
Townley enterprises the favors Of the
Fargo bank whose doors were closed by
the state banking board last Thursday
ImOrning upon report from two depu-
| ty state bank eXominers and Assistant
Attorney General Sheets alleging that
! the bank had made $734 100 in excess
loans not properly secured by bankable
collateral.
Mr.. Frazier's statement, given much
prominence in the CourierNews Sun
day, follows:
ut is my opinion that the attorney
general and the secretary of state over.
stepped the bounds of their authority
and have violated all rules Of common
justice by their action in closing the
Scandinavian-American bank of Far.
so.
dHl CouAiSlll, 1lOul IllC 1dSto
which have been disclosed, that the
Scandinavian-American bank is not in
solvent, and that it can take care Of
all its obligations, and judging from
the actions of the attorney general and
the secretary of state it would seem
they are making a determined effort to
wreck and destroy all farmer organiza-
tions and all banking institutions
friendly to farmers organizations.
II wish to assure the depositors of
the Scandinavian.American bank. as
well as all other banks of North Dako-
ia, that there is no cause for alarm, as
the state guaranty fund act protects
them against loss, and will do every
thing in my power to see that justice
is done. and to see that the credit of
our state is not needlesly or unneces-
sarily embarrassed.
81 am heartily opposed to these
high-handed methods and will do my
best to put a stop to them"
HAGEN ABUSES INTERESTS
The "interests' are responsible for
all his trouble, declares President H. J.
Hagen of the Scandinavian-American,
who with his cashier, was placed I'M
der arrest Saturday on warrant IS
sued on complaint Of p. e. HaldOrson,
temporary receiver. Mr.. Haldorson al
legged that Hagen and Cashier Sherman
had made false exhibits to the deputy
state examiners. Mr.. Hagen's view Of
the situation, as presented by the
Courier News, which is listed among
the borrowers from the ScandinaviaE-
American in the state examiners re-
port, follow: .....
II am in the dark as to what this
charge is based on" said President
Hagen last night "The arrest was
as much surprise to me as was the
closing Of the bank.
II know of no actions of mine il
connection with the affairs Of the
Scandinavian American bank or anv
of the other banks with which I am
connected on which criminal charges
could possibly be based. have been
in the banking business for p years
in North Dakota and 1 have weather
ed several banks through several pan
les but during all that time all my
banks have paid interest and dlvi-
dends.
BANK HAD PROSPEROUS
BUSINESS
'"The Scandinavian bank
has made an unprecedented record for
growth, especially the past year until
it is now the second largest bank in
the city. Since the bank affiliated
with the farmers movement in this
state it has been the subject of all
manner of attacks from interests
inimical to the farmers, but in spite or
this the business has increased in
every department at rate not equaled
,by any of the other financial institn-
tions of the city.
'"The interests fighting the farmers
movement all over this country have
for some time been apprehensive over
| tho financial strength 1evelOned in