New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-10-22
DAKOTA BANK MAS
SOLVENT REPORT ! |
ACCOUNTANTS FIND FARGO IN
sTITUTIoN IN GOOD
CONDITION.
CHARGES OF INSOLVENCY BY
LANCER AND HALL ARE
FALSE, is CLAIM.

FARGO, N D. Charges of gross
! Misrepresentation and outright lying
were made this week by auditors en-
ployed by the banking department
, of North Dakota against Attorney
I General LANCER and Secretary of State
| Hall, who closed the scandinavian
/ American bank at Fargo, one of the.
North Dakota farnaer-owned banks
which has loaned money to the Non
! partisan league and other farmers CO.
! operative enterprises.
| The charges are made in report
of the Equitable Audit company, which
examined the affairs of the bank for
State Bank Examiner Lofthus, who was
/ placed by the supreme court in charge
of the institution after a receiver APP
pointed contrary to law by LANCER and
Hall had been ousted.
The audit shows beyond question.
/ that the bank was solvent at the time
! it was closed, and therefore that its,
4 closing was a political move against
4 the Nonpartisan league. which, while
not directly interested in the bank, was
a heavy borrower of it.
+ Deputy State Examiner P E. Hall
dorson, acting under instructions of
LANCER and Hall, reported that the
Scandinavian-Americ had 'sbad debts"
4 of SAG, 1886.
4 Within II days after the bank had
been closed s7,765.34 had been paid
on these bad debts, z the audit COM
pany's report shows, and directors of
the bank had taken up an additional
a Sc, 900. "Of the amount taken up
| by the directors large portion is col
i lectible, but is too slow TO the bank
to carry the report states.
OF er harges Also False.
Deputy Halldorson also listed loans
!. of 81 80 3 as past due paper The
audit company's report shows that
: Halldorson was entirely wrong as to
! his figures and states that the law firm
| of Tenneson & Cupler Of Fargo, asked
to pass on the paper liste by Hall
dorson as past DUE consider; only
SIS, 1880 to be poor paper.
/ The audit company report S oWs
that Halldorson also was wrong in
. calculating the reserve requirements,
!. applying one method of calculation to
the Scandinavian-American in eff
fort to show that it was below reserve
limits, and applying more liberal
method to other banks which he ex-
amined. A number of other glazing
mistakes are pointed out in the Hall
dorson report, making that document
worthless on any consideration, accord
ing to the banking department.
i The Equitable Audit company has
found, moreover, that $4,000 of real
estate first mortgage bonds, held by
the American bank, have
disappeared.
State Bank Examiner @. E. Lofthus
has served notice upon the Fidelity &
1 Casualty company Of New York City,
/ which went on Halldorson's bonds,
that there is shortage in the property
of the bank and that the bonding COM
pany will be held responsible.
/ Many Papers Filchec.
Halldorson has admitted that dur
ing the six days in which he was act
ing illegally as temporary receiver,
/ private attorneys, aides of Attorney
4 General LANCER and employees Of the
bank had full access to the bank vaults,
where the missing $4,000 securities
. were kept Halldorson has admitted
/ over his own signature that he would be
4 would be unable to identify records and
documents taken from the bank dulng
the time he was receiver. Employees
I Of the bank have made affidavit that
private attorneys and aides OF LANCER
spent hours at time in the vault, taking
out what they pleased without giving
receipts or letting anybody know what
they were taking. HI
Bank Examiner Lofthus, as the re-
suit of receiving this information, served
notice upon LANCER requiring the return
d all property taken from the bank.
After vainly trying to get q court order
SO that he would not have to return
this property, LANCER, after two days
delay, sent back a package Of documents.
When this was checked over, however.
lit did not contain the missing $4,000
bonds.
Farmers Checks Good.
Collection Of loans proceeded dur
ling only the last six days, since Bank
Examiner Lofthus took charge Of the
bank. While Halldorson was in charge
as pretended receiver no effort was
! made to collect loans.
| An affidavit BY President n. ]. Hagen,
| Vice President N. G. Eggen and Cashier
.4E - II.