Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-21
A SHAMEFUL RECORD.

The trial Of an employee of the Scandinavian
American Bank of Fargo has been continued for a
week in view of the illness of the chief prosecuting
attorney. 1t would be improper during the period
while the case is before the court to attempt to pass
Judgment in any way on the innocence or guilt of
the defendant. 1t is permissible, however, to call
attention to the fact that evidence ubmitted by
both prosecution and defense reveals the existence
in the past of acondition of affairs in the Scandina-
vian-American Bank thoroughly discreditable to the
officials in charge and to the political element in
whose interest the~bank was. being operated. The
Observation-Disclosures bank was taken over by
persons acting under the direction of the Nonparti-
san League management in order that it might be
the chief financial agency of that political organiza-
ton, acting in conjunction with the Bank of North
dakota on the one hand, representing the state and
handling its finances, and with a projected string of
banks throughout the state on the other hand which
were to be used partly as collecting and partly as
distributing agencies, the whole structure to be- op-
Grated as a means of using the public funds of the
state of North Dakota and it's subdivisions in the
promotion of political plans, engineered by Mr..
Lovingly and his associates. In common with all
the other enterprises of that remarkable association,
the bank stood in complicated and confused rela-
ton to the other banks which were a part of the
same plan, and to the Bank of North Dakota. It is
difficult to determine in particular cases lust what
the relationship was or was intended to be-, lust as
1T IS difficult to determine at times the exact relation
between the Nonpartisan League and the Consun-
ers' Stores or any other Of the financial ventures Of
the Townley combination. 1t is a fact that the bank
was and was intended to be an intregal part of that
combination, and in the working out of the plans it
is apparent that no regard was had for the security
OF deposltors any more than in the working out of
the plans pertaining to the Bank of North Dakota
any regard was had for the security of the taxpayers
OF the state whose money was being used in inn
proper ways.
The actual facts brought out thus far in the
trial are new only in form and in their official re-
cltal In substance they have been known to the
public for some time, and it was upon the knowledge
of some of them that an attempt was made many.
months ago to close up the bank and keep it closed
until its affairs could be properly investigated and,
If necessary, wound up. This plan was.resisted by
the political element in charge OF the affairs offthe
state for the reason that it would have, resulted in
a too free exposure of their own acts and plans. The
resistance at that time was successful, and. for a
short period the bank remained open and continued
to transact business. Later, even with the assist
ance OF the administration, this was found to be
hopeless and a belated closing of the bank was eff
ifected. This is but one more instance added to
many which have gone before it which confirms the
accusations made formerly against the late admins
~tration and the politicians connected with it, and
which were strenuously denied on the stump, but
without avail.