The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-15
When Answer Was Refused.

When Answer Was Refused.
The most tense moments of the
hearing came during the examination
Of Mr.. Lofthus by Attorney Francis
Murphy, when LOfthus declined to an
swer a question on the ground that
it might incriminate himself. Mr..
Murphy had been questioning Mr.. Lof-
thus as to a report made on the Scan
dinavian-American bank by Examiner
lialdorson, later by Lofthus Md Mr..
Thatcher, of the Equitable Auditing
company, on which was before the
supreme court.
Mr.. Murphy had asked Lofthus If
ne would not agree that Thatcher
had made a misstatement to the su-
preme court. The witness did not
reply directly, but said that banks
had abused privileges. The official
transcript then gives the testimony
regarding Sisll Trust loan as follows:
Mr.. Murphy: Well, this report
from which l have been reading was
then followed by a supplemental re.
port of later date, Exhibit AZ, was
it not? Mr.. Lofthus: Yes sir.
Mr.. Murphy: Signed by yourself
and Mr.. Thatcher? Mr.. Lofthus: Yes
sir. -
Mr.. Murphy: In which was set
forth comparison of financial state
ments of the Scandinavian-Ameri
bank of Fargo. That is, you CON-
pared the findings Of Mr.. Haldorson
as Of September 9th and the find
ings Of yourself as of October End.
did you not? Mr.. Lofthus: Yes sir.
Mr.. Murphy: And l assume you
concur In everything that was said In
here by Mr.. Thatcher? Mr.. Lofthus
l do.
Mr.. Murphy: This statement as to
the Sisal Trust loan--(reads) "Thesc
parties have at just this hour that
this report is being made paid their
notes In full" You concurred in thnt
too, did you? Mr.. Lofthus: Yes sir.
Mr.. Murphy: Well that wasn':
true, was it? 1t wasn't paid, was il!
Mr.. .L0fthus: 1t was paid by checl:
and the check was honOred.
Mr.. Murphy: Later on the check
was honored, was it not? Is that
correct? Is it not a fact that sno
payment was made at the time that
that report was put in, and as you
represented to the supreme court!
No answer.
Mr.. Murphy: Do you want to an
swer that or don't you, or would you
prefer the advise of counsel? MIR.
Lofthus: l refuse to answer that.
Mr.. Murphy: Why, because you
think it might incriminate you? Is
that the idea, that you might be
charged with making a false state
ment? Is that correct? You see, Mr..
Lofthus, the committee is entitled to
know why you refuse to answer, and
il you desire to refuse on the grounds
that it might incriminate you l will
not pursue it any further. Is that
what You wish to do? Mr.. Lofthus:
Yes sir
After Recess.
Mr.. Loftfus: Mr.. Chairman of the
committee; have had talk with
Mr.. Sinkler and l wish to change a
matter that went on record in regard
to the fact that to reply to this ques-
ton would incriminate me.
Mr.. Murphy: In other words, Mr..
Sinkler advised you that it wouldn't?
Mr.. Lofthus: Yes.
Mr.. Murphy: But you are just as
ashamed of it, as though it would.
aren't you? That is correct, isn't it,
Mr.. Lofthus? Your conscience told
you that the deal wasn't right wheth-
err it is criminal or not, and I believe
you are an absolutely honest man,
who has gotten himself in bad hole
but that is correct, isn't it? Mr..
Lofthus: The fact that this has been
the suggestion came afterwards is
the reason for it. At the time ac-
cepted it as perfectly honest and in an
honest manner.
Mr.. Murphy: Yes sir, and think
you are today, as far as am con-
cerned, and l think everybody else
does, and like an honest man you are
ashamed of that transaction, but you
are up against it. That is correct,
isn't it? Isn't that right now, just
between you and me? No answer.
During the questioning of Mr.. Lof-
thus, Mr.. Murphy referred to notes
given to the First State Bank of klo-
ten, referred to as Mr.. Lofthus' bank,
by George Moellering. and H. A. Nell
son, which subsequently went into
the Bank of North Dakota.
Financing Consumers Stores.
DO you not know that this paper
carried in your bank was signed by
these men for financing the Consum.
ers United Stores company, of which
they are directors" the witness was
asked.
Mr.. Lofthus said he didn't know
positively, that it was that or allied
concerns.
Mr.. Murphy asked if this method
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