Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-06-21
HASTINGS SAID
TOWNLEY GAVE
ORDERS FORDEAL
Declared That He, Went. to
A#Valley City at League
k# Chiefs Orders.
XSSETS OF BANK
WERE IMPAIRED
The Impairment Was Made
Good by Hastings and
Thomas Allen Box!

Testimony of H. c.. Aamoth. OF
Valley City. and John Hastings, Nom
partisan league bank organizer. be-
fore the state bank board early in the
year when the Valley City bank deal
was Investigated. was made public to-
Mday by Attorney General LANCER. The
Testimony reveals some very interest
Fang facts in connection with the Val
Eaey City deal and with league IL
AAnces.
Eth 1t reveals. for instance, that Town
Sey, according to Hastings own state.
E7nnent, ordered the Valley City deal
nut through.
And further, ii reveals as The Her
td already has reported, that Box
I'D Aamoth, according to Aamoth's 8
N statement. that Townley and
mike got their share of the profits
iAde in putting; the deal across.
56ssWith the testimony, Mr.. LANCER re-
fased photographs of the four
Es&ashiers checks which figured in the
tansactions. The checks are signed
H. G. Aamoth and are as follows:
f5he to the Federal Development, COM
.Sany for $3,005.3S: one to the Scan
Afnavian American bank Of Fargo.
The league institution, for, Sc, 010.77;
me to VIM. Olsen Of Valley City, for
k8,0O5,3S, and one to Thomas Allen
Iha3 los sttTMo y.,shows4 n ow the as
stE0t The, bank were impaired to. the
Nt4nt of S 900, and how Box and
Hastings made this good after warned
~ j. / H. Waters. then bank examiner
y Md now manager of the Bank OF
~ Forth Dakota. Z. 81 al-...t "
Aanoth, in his testimony, declared
H. hat when the question of selling first
Has put to him, Hastings. told him
lat he (Hastings) was buying it for
amself and not for the farmers.
4 hter. after Olson had made trip to
b Paul, Aamoth and Olson decided
sell because, according to Aamoth' 8
testimony, league officials Informed
bison that the league was going to
H. Nit bank in valley City and that an
~ opportunity would be given Olson and
amoth to sell. If they did not sell,
Z &e testimony says, the league would
BS tablish a bank. 1T was, then. that
TX ey decided to SELL Aamoth declared.
2as Mr.. Aamoth's testimony in full fol-
r ws: tl.
&BeMr. Aamoth was duly sworn on
Eth and testified as follows:
e&By Mr.. LANCER.
#&o. What is your name? A. H. G.
moth.
ES. How old are you? A. was 50
skhe first day of January last.
You were cashier Of. the Amer
M$hr or five years, were you? A. was.
2EsySN. Do you remember what you car
&SSd the building at on the books
n IN there? A. I do.
~ What was it? A. $42,250, think
4 ~ How long were you the cashier
6Sf III there? A. cannot recollect-
IF since 1914 or 1913. Before
EI was assistant cashier.
! When did you first become con-
"a with the bank? A. 1904.
When did Grady become con-
Ia with tt7. A.. Grady was conc
"a with it. from the very first
"A IT, was organized.
h What is that building actually
kh?N A. That. building cost the
rican National bank at the time
built it, oh between $65,0oo and
When was it built? A. Built in
sen, started in 1907 and finished
SSos. \,
M Nov. who controlled the stock
226at bank down there? A.. Well,
srady and myself and his family
is. his wife and his mother-in-
TSti1ey had sufficient stock to
how many shares was that that
sd Grady's family owned? A. I
&6aye to figure on that I guess
~. .COulQisIetlSyOu. Hdu tWeHIJ
Hndred shares, not twenty-five
fta2, K, / had twenty-five shares.
Ysatad one hundred ninety mine.
fsTady had q shares, and Mrs.
0wned 10 shares That made
ltSxes.
IA you enter into contract
4hese 2b5 shares or any part
S97 A. We did. @. Who with ?
astings and a; fellow named
X. B. Il Is
I've you got a. copy Of that
Rs.A.. No thers.-was. not. any
only verbal agreewent you
1T was the price supposed to
IA. The price agreed upon In
1917 was .$362.50.a . share.
Eli,ded, 25 additional shares.
with Hastings included $50
We had two other parties
Staken care Of at the same
yH5 ~ see. ~ q 81.
Sings and Haggerty finally
onttntled on Page 81;