The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-12-05
HAGEN IS GUILTY.
OF FALSIFYING;;
SENATOR ACTIVE
Mees of Morton County De.
mands the Resignation of
Lofthus in Legislature
BITTER FIGHT EXPECTED
State Bank Examiner Charged
With ''Wanton Disregard
of Duties"


president Of the Scandinavian-Ameri-
can bank of Fargo who was found
guilty by jury in Cass county dis
trict court here last night on a charge
Of exhibiting false records to the bank
examiner will appear in court this at
tcrnoon to be sentenced.
Counsel for Hagen announced that q
stay of sentence would be asked epnd-
ing an appeal. Announcement Of the
intention to appeal from the jury's
verdict after four hours and half Of
deliberations was made last night by
Hagen's counsel who declared that in
the event the appeal is denied the case
would be taken to the state supreme
court
The crime of which Hagen was
found guilty is felony and is punish
able by imprisonment in the state pcni.
tcntiary for not less than one nor more
than ten years Imprisonment, or not
less than one year Imprisonment in the
county Jail, or fine not to exceed
$4,000. ..t ."
Both the house and the senate this
afternoon thru the usual league ma
jOrity in, both assemblies successfully
kept all references of the conviction
Of John N Ha/en, president of the
Scandinavian American bank of Fargo
from becomig part of the legislatures
record Of proceedings
In the senate the gag rule was en-
ployed against the submission of Sen
J ator Mees' resolution demanding the
resignation of o. E. Lofthus, state
bank examiner and Hagen as a mem.
her Of the guaranty fund. Neither the
resolution or any remarks made by
speakers on the matter was permit
ted in the official records following an
order to expurge all references from
the journal.
Not to be outdone in the matter, the
house adopted similar gag rule tao
tics when Representative Burtness
tried to read Roy Hallidays letter Ia
Scandinavian-American bank officials
explaining how they should clean
house in order to "get by the state
bank examiners. The cloture was ap-
piled when Burtness had half com.
pleted the reading Of the letter, but
later on managed to have the remain
der of the letter read into the letter
Hyland offered resolution prOvid.
ing that it was the sense of the sen.
ate that inasmuch as Hagen had been
convicted by farmers jury of fell
ony against the state of North Dakota
that he be removed from the state
board Of which he is a member. This
resolution was rejected by the usual
league majority which evidently had
instructions to protect Hagen at all
costs. Thereupon Hyland offered a
resolution stating it was the sense OF
the senate that Hagen be retained in
Office. This resolution was laid on the
table.
The senate later in the afternoon
adopted resolution offered by Cahil
that the statements made by Attorney
General LANCER at Finley regarding
the Scandinavian-American bank and
it's officers were untrue ad demanding
Layers retractions.
DEMAND LOFTHUS RESIGNATION
A concurrent resolution demanding
the resignation Of 0. Il. Lofthus, state
bank examiner and of II. J. Hagen
president Of the Scandinavian-Am
can bank OF Fargo as member of the
guaranty fund commission was pre-.
sented in the senate this afternoon BY
Senator F. w. Mees of Morton county
The resolution in full is as follows
Whereas, One 0. Il. Lofthus was by
Governor Lynn ]. Frazier, on the 16t!1
day OF June, 119, appointed to the Of
fice OF State Examiner, and thereafter
made a solemn declaration that h.
would faithfully discharge the duties
OF the office, which required HIM to
discover and report crimes committed
by the officers Of banks, and protect
the depositors of banks, the state guar
anty fund and the general public from
being subjected to the hazard Of unlaw-
ful raids upon trust funds under the
control and direction Of bank officers
and directors; and
Whereas, Attorney General William
LANCER. in the discharge of his duties
obtained from the files of the Scandi.
navian-American bank of Fargo Ger.
tain letters disclosing a criminal agree.
ment between III. j., Hagen, president
with the Bank Of Commerce and Say.
ings of Duluth, Minn., and whereby il
was made to appear on the books Of
the Scandinavian-American bank OF
Fargo that tho said bank had a cash
reserve due it from other banks, in the
/. sum of more than S1OOOOO.OO greater
than in truth and in fact it actually
did have due to it as a part of its re
serve; and,
Whereas, The supreme court Of this
state did require Attorney General
LANCER to deliver SAID letters upon
which prosecution had been com
menced against II. J. Hagen and p. e.
Sherman into the possession of 0. Il.
LOfthus; and.
Whereas. After the said letters, con.
tanning the criminal agreement be.
tween the said H. j. Hagen, p. r.
Sherman and others, had been return
ed to O. r. Lofthus, the said O. r.
Lofthns did thereafter make solemn
oath by affidavit in the supreme court
stating in substance that no such un.