The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1919-10-09
0. f. L0FTRUS IS IN
CHARGE FARGO BANK
Supreme Court Gusts p. E. Halld0rson.
Temporary Receiver Appointed by
LANCER and Hall-Hearing Oct. Is.

LANCER and Hall-Hearing Oct. Is.
Fargo, N. D., Oct. SO. E. Lolthus,
state bank examiner, is today in
charge of the scandinavian American
bank of Fargo, being established by an
order of the supreme court, filed at 5
o'clock yesterday afternoon.
Mr.. Lofthus, the successor of j. r.
Waters, former bank examiner, soon
after taking charge of the Fargo
bank, posted the following notice on
the door Of the bank:
"This bank is now in control of
the state bank examiner Of the
State of North Dakota. All de-
positors of this bank are notified
that they will be paid in full. No
depositor should sell his account
for less than it's full amount.
20. E. LOFTHUS,
estate Bank Examiner"
Halldorson is Ousted.
Mr.. Lofthus assumed control I'M
der an order Of the supreme court
which ousted p. E. Halldorson, the
temporary receiver appointed by the
state banking board, and which tenn
sporarily restraints Halldorson and
members of the state banking board,
Attorney General LANCER and Secre-
tary Of State Hall, from performing
any duties or exercising any functions
in connection with the closed Fargo
bank.
The temporary injunction order,
returnable on October Is, also re-
strains the banking board members
from doing any acts either as men,
bers of the board or as state officers,
in connection with the closed Fargo
bank.
Affects Post Dated Checks.
The banking boards order invali-
dating post dated checks for collat-
eral purposes also is joined with the
administration of the closed bank
affairs, and the board is enjoined by
the court from putting that order into
operation.
Bank and Lofthus Join.
Next Wednesday, October IS, the
banking board members, Messrs
LANCER and Hall, are required to show
cause why they should not be perma-
nently enjoined from doing the things
complained of by o. E. Lofthus, state
bank examiner, and by the Scandinav.
ian American bank on the relation Of
P. R. Sherman, cashier. Lofthus anG
the Fargo bank are joint REALTORS ir
the action.
The Petition.
The petition that was filed in thu
supreme court is by "The State Of
North Dakota on the relation of 0. e
Lofthus, as state bank examiner; ths
Observation-Disclosures bank of Far
go, corporation, and H. j. Hagen
N. G. Eggen, Lars Christensen, H. [
/. Bolley, Sturgeon Odell, Emil j. Head
land and F. j. Holmes, directors ant
stockholders Of the Scandinavian Am
erican bank of Fargo, and P. R. Sher
man, cashier and stakeholder" and
is directed against civilian LANCER
as attorney general, and as an individ
ual, and as a member of the stat
banking board, and Thomas Hall, sec
rotary of state, and as a member 0
dividual, and Albert E. Sheets. Jr., a
individual, and the state bankin
board, and P. E. Halldorson, as pre-
tending receiver of said bank. as a
individual"
Lofthus Says Bank is Sound.
In the petition it is asserted b
Bank Examiner Lofthus and the banl
in behalf of the Fargo bank, that eth
actual cash market value of its as
sets is sufficient to pay it's liabilitie
and it is able to meet the demands I
it's creditors in the usual and custom
ary manner, and has kept its reserv
as required by law" and it is furthe
asserted by the bank examiner an
the bank directors that the bank cha
in all respects since it's organization
complied with the banking laws Of I'll
State of North Dakota; and was &C
, ing in strict compliance with sal
banking laws on and since. the secon
day of October, 1919," Which is tt
day the bank was closed by the stat
banking board.
Claims No Authority Givsn.
On behalf of Examiner I,ofthus
is asserted that he "has never aut]
orized the closing of said bank; M
has he delegated such authority
---others," and it is further asserted tn,
"said Halldorson is without authorit
of law, usurping the powers Of relate
o. E. Lofthus."
Charge LANCER Initiated "Run
Ob.R'aybP % B6vrfo9u Cgvm8ersOe
It is further charged that prior
the appointment of said receiver al
Cne Closing OIL Sdlu UdAh, viz uEeS'"
ant, William LANCER, secretly lnforr
ed depositors of said bank to wit
draw their money from said bal
for the sole aim and purpose OF eau
ing run upon the bank and destro
ING it's financial standing"
Attorneys for the REALTORS are w
+ liam Lemke, vice president OF T
Nonpartisan League; Vince Day, !!
attorney from Spokane, Wash, in t
employ Of the Nonpartisan Leag.
and Henry Paddock, manager OF t
Consumers United Stores Co., and
attorney for the Nonpartisan Leagt
Sherman Makes Affidavit.
An affidavit supporting the. ma
case is provided BY P. R. sherms
cashier Of the closed bank. Sherm
saws that con or about Sept. ~ 19l
one Halldorson, deputy. bank exa1
liner, completed an examination OF So y.
bank and left without any suggest.l
or criticism made by the banki1
board, except that affiantt received
letter from the bank examiner on Sc
"a 1910. notifying affiant to charge