Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-22
LOFTHUS TELLS OF
CASSELTON BANK

uSAlS Olf luc IeOVLcS oldlS lain 81
Casselton are related in the testimony
Of O. E. Lofthus:
@. Now, Mr.. Lofthus, I am show
ing you a paper marked Committees
Exhibit los, with reference to the
Peoples State Bank Of Casselton. This
is your committees report as of date
September 13. 1920?
A. Yes, sir.
@. And who was your examiner
there, Mr.. Lofthus?
A. l.. c. Reep. !,
z. Is he the same person who IS
in charge Of the Scandinavian-Amerl-
can Bank of Fargo at this time?
A. Yes, sir.
: @. Now, from the Bishop Briss-
man company's report. the Peoples
State Bank Of Casselton appear to
have a deposit on December 3, 1920,
of ~$46,209.23?
A. Yes, sir.
Unpaid Drafts.
O., They appear to have unpaid
drafts in the sum of $1,000 and cur
rent items of IS, making a total LA
bility in addition to their r~edepos4ts.
of $7,oo5?
A. Yes, sir.
@. This Peoples State Bank of
Casselton had a capital of $4,000, a
surplus of $4,000 and an item known
as reserve dCCOuIL VI $SSooV. t
A.. Yes, sir.
@. Going back to the Farmers
State Bank of C~oleharbor, they had a
capital of $4,000, a surplus of $4,000,
did they not?
A. Yes, sir.
c.. Now, then, Mr.. Lofthus, will
you tell US what was the limit OF a
loan that the Farmers State Bank OF
C%oleharbor could make to one con-
Germ lawfully.
A.. $3,450.
Loan Was Excessive.
O.. Then that $4,000 loan to the
Publishers National Service Bureau
you would say, at least, was some
what excessive, would you not ?aSss
A. 1t was.
@. Now, this Peoples State Bank
of Casselton don't appear to have any
loans at all from the Bank of North
Dakota, but they had their accommo-
dation all in deposits. Among h di-
rectors in that bank was Otto Jahnke,
and r. C. Jahnke. You have heard
that name before, haven't you?
A. Yes, sir.
@. That was in the Scandinavian
American bank deal? :.
A. Yes, sir.
@. And Mr.. P. Jahnke appeared
to be assistant cashier in that Bank
as of date of this report? N;
A. am not certain, n is F. G.
and the other P. Jahnke.
@. Well, do you know whether or
not they were the same fellows, or
different fellows?
A. 1 don't. ]
O.. notice F. C. Jahnke appears
to have a loan of $S,896.S6, and is
described as a renter and the loan Is
described as mostly unsecured, that
is true, isn't it?
A. 1t would appear so.
@. And P. Jahnke appears to- be
assistant cashier of the hank?: 80
A. Yes, sir. =
O. We find among the stockhold-
ers of the bank a man by the name
of Thomas Allen Box, owning twenty
two shares, hat is correct, isn't 1t?
A. Yes, sir.
@. We find a gentleman commonly
known. and designated as J.sJ. Hast
ings, St. Paul, who has thirty-two
shares?
A. Yes, sir.
@. That would appear then, Mr.
Lofthus, to be one of the so-called
of the stockholders, that would be
the conclusion you would come tt
yourself from that situation, isn't it
A.. Well. from previous knowledge
I had l knew that they were con
nected in some way.
t He Knew 1t.
@. You knew it-well that will
help us quite a bit, that is the con
e clusion we came to, but If you knew
it that will help is. Then that make
inquiry pertinent in view of the fac
that the bank didn't have any loan
and all of their money was in deposit
n from the Bank of North Dakota
0 would then be pertinent to find .ou
e what they did with the money 3. W
find as a part of your examiners s. oh
|, servations. a loan to ]. j.. Hasting
and Thomas Allen Box Of $500?
A. Yes. sir.
O.. And your examiner says "thi
is secured" by a junk heap, that l
correct. isn't it?
A. Yes-where is this-oh, I see
a two-story brick store building in tn
same block as the bank was, burne
up
POOR SECURITY.
Mr.. Shiplcy: Read that so VIC
hear it. H.
Mr.. Sullivan: "a two-story
brick store building in the am
block as the bank. was burned up,
= leaving the usual display OF ruins.
= iuEI VI t1c TtNk WALLS uFe StanO.
ing. The a was q on the
st property as it so stood and not
prior to the fire. I cannO deter
mine the value Of the property,
but it seems like poor loan to
so me and I don't like the looks of
ID the deal. 1t looks like 1t Is being
lie sold to the bank. 1 cannot sc<.
ID any loan value in this property"
s. @. The next one appears to be o.
to Janke?
A. Yes, sir.
@. A note of $4,000?
A. Yes, sir.
@. And the next appear to
ID P. c. Jahnke?
~ Mr.. Sullivan: 1 think possibly
view of the fact that the time is shor
it might be as we'll to adjourn at tn
time.
Mr.. Chairman: Just before we al
journ, 1 would suggest that you hay
ny inquired as to the records of a ce
rs tain bank as Of June 20 and Decen
e Der 3. Wouldn't it be possible
TO- %reconcile the dates, so the compar
sons can be made as Of thu san
T.
Mr.. Sullivan: We have alread
asked Mr.. Cathro to bring those r.
ports over so we can reconcile II
dates.
On motion Of Mr.. Freeman, Sc
onded by Mr.. Nagel, adjournmel
taken until $3.50 a. m. February, 2
1921.
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