The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-08-15
JUD BANKER rs THOUGHT
TO HAVE MADE $4,000
IN TRANSACTIONS
Assistant Attorney General Makes
Examinations of Books.

facts alleged to have developed since
a week ago last Friday when a war
rant was issued for the banker on
charges of enbezzling $4,000 and
an examination of the books purport
to show that Egan may have cleaned
up from $4,000 to $4,000 by his
financial juggling. He was arrested
at Salt Lake City.
Egan's main stunt was the buying |
of the First State bank, of Jnd, La
Mourse County, N. D., for the pnr-
pose of cashing in on $4,000 worth
of worthless paper, is the claim of
| Assistant Attorney Generd Albert +.
| Sheets, Jr.
i On April 10, 1919, Pierce Egan
and wife and Erwin H. Mann pur-
chased the First State Bank of Jud,
which at the time was capitalized for
4 $4,000 and had surplus of $4,000
and total footings of $183,O0O.
On April IL, Egan wrote from Min
neapolis to E. H. Mann who had been
installed as cashier requesting him
to accept notes to the sum Of S19,40O,
and credit Egan's account that sum.
A short time later Egan added $4,000
more notes to the collection and a
like sum was credited to his account.
All of this paper is alleged to be
worthless. Most of these notes were
dated back of the time when Egan
and Mann took over the bank, thus
putting the former owners Of the
bank up against the buzz saw for re-
sponsibility for the poor paper. How
ever, that is where paper" figured
strongly, for the paper on which
! these notes were printed was OF a
! much lighted texture and quality than
7 the stock form of the old bank. And
this clever play is spoiled say the
: state officials.
, Most of the notes proffered by Egg
> an to his cashier were presumably
: executed by residents OF the Golden
;, Valley country around Beach, N ~
J and over the line into Montana, the
!, Montana paper bearing IL per cent
/ interest.
n Tips that led state officers to an
!. examination of the bank resulted a
7 week ago last Friday in the arrest
: of E. H. Mann, cashier, on the charge
= of making false entries. "Well Egan
! made me a long haired goat and
y pulled my whiskers, | might as wei
: confess. he said. His confession made
u nublic last week by the attorney gen
eral will have the banking boards III
:. three other states busy for some
- time.
10 Epan wrote Mann from Mlnneapo,
= lis that he was going to buy the First
State Bank of Amboy, Mimi. i IS
p sued a cashiers check for 5000 IL
- favor of C. w. Baumgaftner VINO
y Foam was to fuy the Amboy bant
IS from said Mr.. Mann. Egan said NJ
:, would send me personal cneck o.
81 :, the First State of Amboy 70 cove
!; this as soon as he completed the pul
- chase of that bank. ! entered tnt
ne cashiers check I drew for So,ooo, a.
= in the sum of 500 in order to cove
~ the transaction
al South Dakota Bank Bought !.
With the Amboy, Mimi, deal stll
n in the air Egan sought to BUY a Danl
e at Harrisburg, S. D., . and drew o.
:, 70 the First State Bank of Jud for Slo'
IL 400 He ordered Mann to draw o
az the Harrisburg bank in two Slo'oo
no drafts after the transfer of the Sout
LII. Dakota institution One OF these SlOi
ny O00 drafts was honored, but the or
lily 81 was protested and not paid. I'm
g reverted to the First State BANK 0
ne Indd and raised Egan's overdraft az
ie- count to $1,000. However, tins wa
ty cnt down to $1,000 by draft 10
'ut EN- oOo from the Beach State Dani
Beach, N. d. III, cox
tn, mn worth of certificates OF deposl
a ne issued by Egan. How many Oh Ing =
ne are worthless has not as yet oeen o'
OF Farly in July Egan left for t. tn
IN west for his health, which had Iane
a; under his strenuous work. he zoe
nal with him a paid of blank certlfc cao
l. of deposits, numbers $500 to oOo
lge The state officials were late last "a
ace nrdau in receipt of wire from u
var Utah State National bank OF pa
ov- axe citv advising that they ne
ons certifcate of deposit No. 29l2 neg
gn t;ataa nv Egan through the Centr
panL Of Bingham, Utah. This was
a. sum Of s16,708.38, and execute
OF no, ra in or by the First State Bank
les Ind IuSd hut personally by Egan al
ar o in Bingham, Utah. The Nor
ON naLota officials cite the fact tn
1t his Bingham transaction was WI
Sea c c,a, of deposit No. 29 aao fro
I'D tba mad numbered 1900 to oooo' al y
the Wonder .1 from which end Egan used 9
OF hanks. whether there be 90 oOne
:, circulation or but IL.
Jill - Mill City Bank Hit
gee- And the Liberty State Bank
;ui- Minneapolis holds the empty sal
lers IN On the very day, Aug. l, when a
his G s;stant Attorney General Sheets 9
nan Jared the bank closed and state pa
red F Examined 3. E. Lofthus declared I
nm hank defunct came to Jud rep
Mr.. Sentative of the Minneapolis lnsti,
ag- fion. They held as collateral CO
xas shares slv of stock in the First o5a
ne hank of Jud which Pierce Egan !, Il
D Dan1 to them as security Tor 2 10
IF s. 600 he used to secure the ps
ant iud institution. Inc LipeI
AL e ens Rank of Minneapolis now oW
tha f First State bank of Jud. ~.
.nds oiAI Egan NAV be held IN "