Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-10-16

GRAND FORKS. j
49, ~ IS 4 ..9 IA -
.c+,,, IL +ha d;.tr;rt oo,,r+ .rd
come nm thrnur,, ~. 81, nne, 80 80
Rronson asi.ed mon ~hat ovid enca
+ho hanSi. ~, ~ ~ 80 its onrcI,,
Sim that thss hanI, @ ,,,ss o .stona,.s.,,, IN
solvent" !" and sheetss nmnted items
from the recant rennr+ ~ ths danntv
state aYaminers Ha alao declared
that last Anti s+ata E~an,inar N
waters had i,ed ranort d;rect,nr
fhat hnd naver ha rernnvai from the
scandina Wan American hank and
that he had referred to the items
nl,oted in almost idanticaI,v the same
terms as thnsa annaa rine IN tha reno,t
,,non u,hici, tha ha nLin9 hoard .ntsd
IA assertad That The SanIs had not
talen sine,e stem tow. n,nn ,,ii.n nce me-
with state Eraminer Waters, nrders
sheets further asserted that aven an
Attorney Iamke,s. shnu,ing the scan.
dinavian- American hank was nroven
at this moment to have h,,ndrads of
fhousands - douor. ~ sH ,as. lthan Hreas Gu ro ol
serve. Judge bronson called the at.
tornevs attention to an item IN M.
III I,emka,s stataman+ ~ INC aefan. tha+
the bank had sa5o o0o cash IN hand
Sheets retorted that the same ranort
showed sS1S. 900 due other hanks and
that deposits from other hanIs whicn
might be checked out anv n'onoant
conld MT undar the laws ~ Nett na
kota he ,arr;ad -. iaraI $780,
declared I,emke,s very statement
showed that the bank now has more
than 100000 less that no legal re-,
serve.
Sheets, declared the item of $4,000
/ covering furniture and fixtures, car
! ried by the bank as an asset, was ST.
I; 900 in excess Of the amount legally
allowed for furniture, fixtures and
banking house, and that the Scandi-
navian- American bank did not own it's
banking house. He also declared this
item to be $1,000 in excess of what
these fixtures could be replaced for,
according to the report of reputable
Fargo architect.
! He explained at length what was
meant by the kiting of paper, telling
| how emergency loans from q Duluth
bank were made on collateral consist
/ ing largely of the same sort of pa
per which the banking board had
found in the Fargo bank, with the
understanding that the credit SO OBJ
! tanned. for the alleged purpose of boil
stering the banks reserves up to a
point where it would stand inspec-
ton, was not to be drawn upon. Some
of the paper sent to Duluth in securi-
" Tor ,sucn an alleged loan of $4,000
.ha tlu rtate nneeis, naa osen eonoemned oy
o',t emt s'ase OaAAlAs uoaIa anu oroereo
r.,,,.,,. r,,,,.,..
sNoe Opc"Ans oun'
Attorney William cLemke's opening
otate Examlner Eneemoren to the ell
rect that ne relied largely upon what
attorney Sheets and Deputy Examiner
Halidorson told him as to the contents
OF the report on the condluon OF the
scandinavlan-Ame bank which
ne signed, that he had very little per-
sonar KNOWLEDGE OF the facts set forth
ana that ne mad been connected with
the examination only In checking up
bookkeeping routine and accounting.
Attorney Lemke took his stand
principally upon the amdaVit ol
thatcher, the Minneapolis accountant
IN Wn1ch the latter declared ne mao
checked over the oank and round u
entirely solvent. Thatcher followed
the report OF his detailed examination
Wltn sunory comments upon wnicn
Mr. Lemke lald great stress. Mr
American banks contention that the
j consumer Onitea stores COMPANY
were maoe 10 lno4YaAuals ana not to
sne ,corpofat1on, ana tnate nat sthey We're
d not excessive. 3'
49, An Excessive Loan.
4 Lemke did admit that the league
newspaner svndicate lori, was an ex.
4 cessive one and that IL should he
thrown ont. and rs acknowledeed
that there were other excessive loans
but he insisted that si1nilar Situation
wo,iid he found in manv other hanks
Of the state. He emphasized the fac1
THAT the Kimball Hastings Co. one ~
the alleged excessive borrowers. had
paid $4,000 on account. and that Inc
Consumers, United stores Co loan,
of s17o. 0,o had been reduced nv s5e
900 since Lofthus took charre.
state Examiner II ,oftl,us on a nues.
tion from .Iustice Rirdzell adimitted
that the scandinavian- American hanL
had Maid an unearned dividend lasi
Januarv Following a wear in which
earnings did not exceed exnanses and
that the hank had been criticized 70,
such action - -
IJnon Attorney Temke,s statemen,
asssn' s both ef 8ao@ Nv We're lsi1ess: si1esss
were @ reducing their . t oe!ieations, n% p .,
christsnson asked % # it 1as er not 'a1ses fae1
hibiting the practice Of bank official.
borrowing from their own Golfers
Il Mr.. I,emk0 admitted that this WAS 8