The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-10-24
CLOSED BANK IS
PROVED SOLVENT

Gacn OF Lne makers OI I1lSSC lloICo Gil
the loans are secured by bonds OF a
first class mortgage on about 5000
acres of land in Delta county, Mich.
Mr.. Thatcher reports that there were
supposed to be $4,000 of these bonds
| in the bank, but ''we have iodnd only
| $4,000" This report is the first In
timation since Examiner Lofthus'
checkup started that any of the
banks collateral have been removed
from the bank.
- DISCRIMINATION SHOWN ?
The Audit company's report furth-
er shows that during the present
wear Halldorson has examined three
banks and has passed on them favor
| ablv in spite of the fact that the re-
serves required by law in these banks
was smaller than those in the closed
bank.
The report shows that there is a
discrepancy between the law and
practice regarding these reserves in
North Dakota. 1t says:
Suppose the amount due to banks
is $20O,OOQ.00 Then according to
the law the reserve should provide II
{ full 100000. But according to the
practice the reserve is figured 20 pei
cent or $4,000.
"a comparison of the statement:
: made by Deputy Bank Examiner Hall
; dorson of these three banks shown
4 before with the statements as the.
: should have been shown, as requlre'
0 by law shows:
t Northern Savings Bank: Reserve
: amount, $606, ,124.26, shortage pc
cent 56, cash res. amount 1884, III .5t
:. in bank shortage per cent oo.
Northern State bank: Reserve amt
e s344, 1884, shortage percent os
/ cash. res. amount $144, ,682.16, in bl
e shortage per cent 66.
d Capitol Security bank: Resetv
e amount $42,281.55, shortage per Ger
h 70. cash res. amount S18,7O7.O6,
: bk. shortage per cent 7o.
"From the statements made
above shown in the report OF Stat
,e Examiner O. E. Loftkus-it strength
r ems our opinion that Halldorson
l. statements in his report Of Sept. Z
k and marked exhibit GA" and anneXe
ID to his affidavit, are in the majorit
I'd false and in respect to the legal r
serve. a discrimination against tn
r bank"
% $4,000 DISAPPEARS
as An affidavit by o. E. Lofthus al
NJ submitted to the Supreme Court tel
he of the disappearance of the $1O,O
at in bonds. All effort to recover the
he bonds Or secure an accounting
be them have failed.
A Joint affidavit by Cashier ?.
Sherman, N. J. Brovig, G. o. Bjo1
by F. c.. Hoaton, Jane Nystrom and OF
IT. er employees states that John Polio
so of Pollock & Pollock, Fargo attorne!
Ir. and assistant Attorney Albert
of Sheets, Jr., "went into the vaults
o. and removed documents and to
them out of the bank without givi
;he anv receipts to Mr.. Halldorson
by the same. And that it was inpossl
as for Mr.. Halldorson to know WI
res thew were doing and what they w
sen removing from said bank"
VAULTS LEFT OPEN
ag- The affidavit further states Il
by "the vaults were left open and
wn cessible to all the employes as v
IA. as to said Sheets and Pollock"
dit When pressed to check over the
ese pers. records and collateral in
uch hank. so as to be relieved of furt
but responsibility, Halldorson refused,
IN r,itting then as the reason t
Sheets and Pollock had taken reeo
and letters from the bank with
of CONTINUED on Page Eight)