Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-22
Will Continue His Testimony
Wednesday; Complicated
Process Necessary To Get
At Relations OF Bank OF
North Dakota With The
Peoples State Bank OF
Casselton.
(By Staff Correspondent.)

(By Staff Correspondent)
Bismarck, \. D., Feb. 22.---The op-
cning installment of what promises to
be one Of the most interesting cantos |
in the epic of the Bank of North Da-
kota appeared this morning at the
hearing before the audit committee of |
the house of representatives; when L.
p. McAneny, director of credits of the
bank. began the story of trip which
he took to Miami, Florida, in Febru-
airy. 1920.
Further testimony along this line
Wednesday is expected to bring out
some interesting facts regarding the
resignation of j. r. Waters, as man. f,
ager of the Bank of North Dakota. and
other features of the banks history
OF that transaction will be barred in
the witness stand.
Followed Instructions.
I'm his evidence given today, MIR. Nc
Aneney said that he went to Florida
in February, 1920, after a talk with
Ray Craig, state manager of the Non
partisan league. The trip, he said was
partly taken on his own volition, but
that-at Craig's request he first con
ferred with the league managers al
Fargo, and that the. trip was largely in
accordance with the desires of the lat
ter. :;
He informed F. W. Cathro, director
general of the Bank Of North Dakota.
but said nothing about the object Of
the journey, he declared. What this
object was is expected to be brought
out in the testimony Wednesday.
''On arriving at Miami did you see
any North Dakota people?' j. +. Sui
Ivan of Mandan, attorney for the
committee, asked.
"Yes, I saw j. X. Waters and j. W.
Brinton," answered the witness.
And old friend Alex Mckenzie,
didn't you?" proceeded Mr.. Sullivan.
Yes" answered Mr.. McAneney.
Did you register under your own
name at the hotel?" Mr.. Sullivan ask
The witness hesitated, and finally
answered that he thought he did.
&. well, the fact that you only think
/ 80 implies doubt; >aren't you sure
about IT." the attorney wanted to
know.
"Well, / was not particularly anx-
,iops to have it known was there
Mr.. McAneney explained, adding that
he had considered using an assumed
name, It was while he was being
!. cross-exan,ined on this point that the
. clearing ad io,,Sr, u -sESA be reGailed
to the witness stand "Wednesday for
further evidence regarding his Flori-
da trip. .y.-.. .....
Lofthus Examined.
Outside of Mr.. McAneney's testi-
nony the morning was given over to
examination of o. e. Lofthus, state
examiner. in the effort to show just
what the relations were between the
Bank of North Dakota and the Peo-
plc's State bank of Casselton.
This was complicated process. but
l,v comparison of the report of one
rf Nr fat o H.
ers on the Casselton bank compari-
son Of it with the report made by
Bishop, Brissman and company on the
Bank of North Dakota. number Of
points were brought out.
1t was shown for instance, that the
Peoples State bank of Casselton loan
Ell 5000 to Thomas Allan Box and j.
J.. Hastings on a building which had
burned down previous to the time the
loan was made. They were criticized
in the bank examiners report.
There was loan of $3.50, made on
a note of the "Behring Sea Fishery
Co.." endorsed by II. J. Hagan. presi-
dent Of the Scandinavian American
hank of Fargo with which the Cassel-
ton bank eventually closed connec-
tions. This note later found it's way
back to the Scandinavian American
bank. and was shot to the Bank of
North Dakota as part of the security
There were other peculiar land
deals in both Minnesota Snd North Da-
kota which were severely criticized by
the bank examiner.
II. D. Ellis cashier of the Casselton
bank. secured loan of sS,168 from
Fargo on So shares Of stock in the
Casselton bank, which had face val.
ne Of $500, it was shown. This col
lateral also eventually found it's way
into the Bank of North Dakota.
Shot to Bank of North Dakota.
To sum up the situation the records
showed that some $25.634 worth Of
paper from the Casselton bank, much
OF it Of the class indicated by the
above samples. found Its way eventual
ly in the Bank of North Dakota ir
most cases via the Scandinavian Amer.
lean bank of Fargo.
It was also shown from the Bishop
Brissman and company report that the
Bank of North Dakota had made re-
deposits, loans, re-discounts, ETC.. will
the Casselton bank, making the tota
liabilities of the Casselton bank to thu
Bank of North Dakota $53,714.23, ant
deducting from this the liabilities o.
the Bank of North Dakota to the Cas-
sclton bank amounting to $4,931.32
the net liabilities of the Casseltor
bank to the Bank Of North Dakot;
Mr.. Sullivan then established tn
fact that the officers Of the Bank o
North Dakota could have free acces
TO the reports in the state examiner
department whenever they desired. H
then asked:
Nov, Mr.. Lofthus, in your judg
,nent would it be good business prac
tice to put such an amount of publi
funds as this into a bank Of the char
acter which the reports of your exam
iners show this one to be?"
mo, sir,' Mr.. Lofthus admitted.
BROKEN NECK CAUSES DEATH.
Erie, Penn, Feb. 22.-Steve Gorney
first baseman of the Polish nationa
baseball team in the Erie city league
died yesterday from injuries received
in a game last July. Gorney collide'
with a baserunner and his neck wa
broken. An operation was performed
shortly after the accident, but tn
patient continued to fail.
n 1T II II II