The Devils Lake world and inter-ocean., 1919-01-08
KNOX BANKER
NOW IN PEN
BEGINS SERVING SENTENCE AF.
TER ACKNOWLEDGING GUILT.

Bismarck, N. D., Jan. David H.
Uglum, the Knox banker whose ac-
counts We're found to be technically
100000 to the bad by State Examiner
j. r. Waters, and who appeared be-
fore Judge Buttz at Devils Lake,
pleaded guilty to defalcation, accepted
"a five years sentence, placed his COM
mitment papers in his pocket, boarded
a train for Bismarck and personally
delivered himself up to Acting War
den c. F. Mcdonald, accompanied only
by his counsel, Judge Palda, of Minot,
after ten days in the North Dakota
penitentiary, does not appear to be
losing any flesh over his Incarceration
and is proving model prisoner.
The Knox banker. whose financing
operations have involved hundreds of
thousands of dollars, and whose prince
ly estates in the vicinity of Knox,
where he owned seven elevators in
addition to his bank, have been among
the finest in America, has for ten days
toiled ten hours each day in the prison
twine plant. He has been an apt pu-
pill, readily mastering the details of
the task assigned to him, and he is to-
day one of the most valuable members
Of the twine plant staff. There may
be a few new blisters on his hands,
more accustomed to the polished wheel
Of high powered imported touring
car than to the break levers of twine
| machine, and there are some unac-
| toned cricks and kinks in his back, but
! the Uglum smile is still on the job,
| and has not once complained nor sulk-
ed, and his prison career has begun
most auspiciously.
Creditors Get Money.
While on paper the Uglum bank at
Knox was 100000 to the bad when
it was closed by State Examiner Wat
'ers, actually the assets very nearly
sufficed to meet all obligations. Major
Jim Waters, state examiner, did
something rather unusual and per-
haps not strictly according to Hoyle
when he went down to Minneapolis
and called q meeting Of the creditors
principally Minnesota state bankers
to ask them to declare a voluntary
assessment which would provide funds
for the harvesting of thousands Of
acres of flax, wheat an other grains
on the Uglum farms. The Minnesota
creditors rather liked Waters idea
and they coughed up promptly. AS g
result of the few thousands Of gooe
money which they sent after theil
many thousands Of bad, they realized
from the Uglum crops last fall about
100000, which materially cut down
their losses.
In the meantime Major Waters hat
negotiated the sale of two Of the Ug
lum elevators at a good figure, ant
) the collection of outstanding accounts
helped a great deal, so that today tn
actual shortage Of the Uglum bank il
but 100000, with five elevators still
held as assets for the benefit of tn
creditors. In addition there is ques
ton as to whether two certificates O
deposit of sizeable amounts may no
be held as assets of the bank. If tn
: court rules favorably on the examin
er's application in this connection
Dave Uglum will pay his creditors 10
} per cent on the dollar, and a mos
r spectacular "bank failure" will hav
terminated fortunately for all concern
! ed except Dave, who will continue t.
, do his ten-hour daily bit in the stat
!, twine plant.
: Uglum intends to keep abreast o
the times. He subscribed today TO
The Bismarck Tribune, and he ha
provided himself with other good lit
erature. He will have less time fo
reading than heretofore, for lights ar
e turned out early at the state reniten
: tiary, and besides a man who puts i
: a hard daily grind is ready for be
when 9 o'clock comes.
q The Uglum liabilities will be reduc
ed another $1,000 through an adjust
ment being made today with the stat
railway commission by T. w. Hendel
! son of Minneapolis, representing tn
$ National Surety Co., of New Yorl
3 which had bonded the Uglum eleva
), tors. This is the amount of thre
t storage tickets held by farmers VIII
had grain in the Uglum elevator
when the crash came.