Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-01-22
f. D. Haggerty Co. Was
One Of Firms to Which
Scandinavian American
Bank at Fargo Had Loan
ed Large Amounts.

uocsAoH WILL IeCents eV0n0 In NOfIn
Dakota and several North Dakota
men II taken from the lincoln, Neb.
Star Of Sunday, January lS.
Information received from Mime
apolis by state banking bureau ofli-
cials of Nebraska, is that the II. d,
Aasgerty firm of that city. whose
secretary-treas1rer. F. M. Ridings, d
under a criminal charge in this stats
OF converting funds Of the Farmers'
State bank at Halsey to his own use,
bas been closed UP by its creditors
and its Office furniture taken to sat
isfy some of the claims.
This is the concern with which 4
number of prominent North Dakota
Nonpartisan leaguers were identf6ed.
1t Is claimed. one Of them being J.
X. Waters, manager Of the state
owned bank of North Dakota. under
the Townley regime. Rulings was
the connecting link between it and
the Halsey bank, of which he became
president Last svne. when his crowd
purchased it's controlling stock, the
Nebraska official says.
suite of rooms In one Of the principal
buildings in Minneapolis. with large
force OF employees, mahogany furni-
ture and other pretentious features.
10 all appearances it was doing
prosperous business; but develop
ments since the Halsey bank failure
indicate that the Arm was not on q
very solid financial footing. r.
Minneapolis attorney named
Hanley, representing banks in Iowa
and Minnesota, that bought certia.
Gates Of deposit in the Halsey bank
Tor $1,000 each. was in Lincoln on
Saturday. looking up the Nebraska
banking laws. He talked with Sec
retary Hart Of the trade and COM
not AvnI
about the collapse of the Hagxerty
concern. = ~
May Fight Certificate Claims
Secretary Hart and Attorney Gem
eraI Davis are inclined to put up .
SUIT light against allowing banks
outside the state which bought Ger
tificates of deposit taken out Of the
Halsey bank by Ridings and turned
over to other hands, to realize there-
on: They believe that these banks
did not show good banking judgment
or common prudence in thus paying
out good money for claims against
an obscure country bank in Nebras-
ka, regarding whose affairs they pre-
sumably knew nothing. &
! AS the Nebraska bank guaranty
fund viii have to make good the
losses to depositors in the Halsey
failure. the state officials will object
to any but bona-nde depostts being
considered. The SIS. 800 in certtf-
Gates takeHs 9Ht by Ridinss st differ
cash put into the bank, but only by
a number of notes signed by Hag-
Eerty and others Of the Minneapolis
! North Dakota crowd, which are be-
lieved to be worth little or nothing.
The Scandinavian-Americ bank
OF Fargo. leading Nonparttsan league
bank of North Dakota. obtained
| q A.
ago against HagEerty, Rulings and
their business associates aggrekating
between $4,000 and $50, ,000. This
/ knocks the Halsey Institution out Of
any chance It might have had to re-
cover from them on the notes that
1t holds for total Of $1S,5o0. Hag-
gerty and Ridings had been heavy
/ American bank aa:4
Checks Were PROJECTED.
1 When Ridings was at Thedford two
weeks ago and gave bond for $25,0OO
there on criminal charge against
him, he drew check on a Mime
arolis bank for SIS or $40 in pay
to the Judge. The check afterward
came back protested. according to
the statement of County Attorney
Reisner, who is in charge Of the
prosecution. The costs are still un-
paid.
The bond itself Is signed by n. d.
Haggerty and Minneapolis attor-
ney named Evans. How much could
be collected on it If Rulings failed to
show up for trial is problematicSl.
However, he could be extradited and
brought back to Nebraska for trial.
in any event.
Secretary Hart got another check
from Ridings for 500 as ten days
per diem, at $40 day during tho
time that Bank Examiner A. D. Tou-
zalin was in the Twin Cities and
North Dakota waiting~on Ridings, and
Haggerty to raise some money which
would relieve the Halsey banks
shortage. This also came back pro-
tested, but was sent a second time
and paid. Touxalin had the same
experience on a $75 check he got
from Ridings at Minneapolis. in pay
ment Of his personal expenses. The
per diem and expenses were charged
up by the banking bureau the same
as is done when. q bank il being ex-