Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-02

N1IkAND n
Other than Mr. TDwnley about ibis
hank UchNmAS
A Yea dn.
DtAuaDcd VIM h1M
9. Who did yon talk Nth.
A l talked With Mr.. Lemke about
9. Mr. William Lemker
A. Yea. SIR.
Q. The present attorney general,
A Yes, Rr
6. When did you tank with him
about it,
A. It was after the talk with Mr..
Iovnley, I couldn't. state the exact
time. n
G. What Vas that conversation.
Nj. lemke vas in the Bank Of
Sostn akot and came in my once,
n among other things, he said, did
A g. 20 over his hank proposition
with you!' and ! said YES" And
Nj Lemke said, What do you think
1T? and 1 said. Il don't think
anything Of it at all. The. proposition
is not sound and the principle is
wrong"
"RxIAEvE FARAlERS,.
49, Um ne ny 10 I02ty
A He thought It could be worked
out AL right and would be quite . re-
lief 10 the farmers.
9. You mean tina. 1870 relief?
I suppose. As 4 matter of fact.
Mr.. Townley told me that one of his
IDEAS in his bank scheme was to re-
heye the Observation-Disclosures
bank He said frankly that he knew
they had rNda that orl. %4%4~th --x
that the loans could be divided up
among these different bankS over the
state and it would relieve the situa-
ton with the Scand:navian-American
bank.
Q. Well. do you know whether or
not Mr.. Townley eve did anything to-
ward n contamination Of that pro-
gram?
A 1 think he xent out and ar
ranged for one or two banks himself.
the First National Bank of Sheyenne.
and l believe a bank at Wimbledon
or up in that part of the country
somewhere.
Q. In any event, the program ap-
parently got into such a well defined
position that, at least. there was
something lone in connection with
consummating it?
A.. Yes; sir.
- SSN 49, AK ~ ANol4O11dA
Bank of S~heyenne?
A. Yes, Sir.
Mr.. Sullivan: Well that is the one
We have got on u list here that was
in the Scandinavian-American bank.
Mr.. Sinkler: No. It wasn't in there.
Mr.. Sullivan: Yes it was.
Q. Now. after the so-called Lam
ger raid" o said you didn't have
any particular knowledge of the Scan
dina via ~ A m prican honEo
A No. sir. only just the reports in
the newspapers.
Waters Investigates.
@. Well, did you do anything. Mr..
Waters, to find u what the condi-
o of it was?
A. I did.
Q. And when was that?
uarN, s192O.s
@. And what was the occasion of
your examining it on the first day of
January, 1920?
A.. Mr.. Hagan called me up on the
last day of December, 1919, in the
afternoon. and said we have got to
have some money. and l said. where
are you going to get it, and he said
| you are going to send it down to US
And I replied. Why. I don't know
about that. Mr.. Hagan, 1 think I will
have to come down there and take
a look at that bank n see what
shape you are in,' and he said. II
wish you would"
Q. So you went down?
A.. I went in and talked with Mr..
Cathro about this and told him what
the conversation was and it was very
agreeable to him. In fact, he thought
it was a good suggestion and thought
1 better go. down and examine the
condition Of the bank.
:. q. Did you go down?
A.. l did that evening.
Took McAnency Along.
@. Who went with you?
A.. Mr.. McAneney.
@. And did you examine the bank
the mex day?
A.. Not a critical examination, but
we went through it pretty thoroughly.
The note pouch was the principal
thing we wanted to see and we went
through that.
q. How long were you examining
the note pouch or in the bank?
A. oh, we were there practically
all day.
@. DO you remember about what
time of the day or night it was that
| you finished your examination?
A. We got done with the note
pouch, 1 would say somewhere about
5 or %64o'clock in the evening. And I
said. Mr.. ,Hagan haven't o got any
past due paper, and he turned. around
to Mr.. Sherman and said, Mr.. Sher-
man bring out the past due pouch.
And Mr.. Sherman brought out the
| past due pouch and I made the re-
mark, that looks like quite a big
job" And We hadn't had anything
to. eat since breakfast. SO Mr.. Sher-
man went out and got some sand
wichcs and a fruit jar of coffee and
some cup and some cigars and We
ate our lunch there and then went
to work on the past due paper.
Q. When you finished your ex-
animation, as you stated. did o and
Mr.. McAneney rave any talk or n
vcrsation as to what you men had de
cided as to hi condition of that
bank?
A. Yes, sir.
Bank in Bad Shape!
O. Just tell US what that was?
A. We decided that the bank was
in a very serious condition, much
/ more so than what we had reason
to suspect from what we had read
in the newspapers.
O.. Worse than what you read II
the newspapers?
A. Yes, sir.
@. What newspapers had you read
about it in?
A. The Courier-News.
@. Any others?
A. The Fargo Forum.
@. Was 1t worse than what thu
Forum said it was?
A. I believe it was.
O.. That talk was between you anc
McAneney?
A. Yes, sir.
@. Did you have any talk with an!