Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-14

Fuel and Clay Products company by
Porter Kimball for ~$5,041.75 with no
security, making a total of $14.041.75
of that paper in the Bank Of North
don't.
Q. You are not prepared to say that
is not true? A. No.
THREE
@. Look at what is called the E. j.
Wheeler deal, at No. IS in his report?
A. (Reads) '"This liability consists
of several notes signed by e. j. Wheel
er personally, and two notes signed
by the Peoples Realty company,
amounting to $~1,429.31, and aggregat-
ing $9,l59.78. The Peoples Realty ON
pany is a co-partnership consisting of
E. j. Wheeler and M. G.. Myhre. This
is considered a very poor claim. It has
been under criticism by the banking
department for years past, but has
gradually been increasing in the bank.
Wheeler's financial responsibility is
very questionable. The bank claims to
have some security which is supposed
to consist Of second real estate mort
cages on on land. the value OF
which is very questionable. The total
removal Of this claim is Desirable"
@. Don't you know that it is a fact
hat on the 3rd Of December, 1920,
h Bank of North Dakota held as col
lateral to the o of the Scandinavian
American bank of Fargo, the note of
E. j. Wheeler for $~8,642.54? A. 1 don't.
FOUR
Q. Well. turn to what is called No.
10, NJ. G. Wyhre deal.
A.. (Reads) This loan is made up
as follows: Direct liability of M. G..
Myhre, $1,000, and notes signed by the
Peoples Realty company, amounting
81. This loan is excessive in law and
also considered excessive from q credit
point Of view. Myhre's responsibility
is questioned for a line of credit any
where near this limit. This loan should
be materially reduced"
@. I will ask you if you know wheth-
er it is q fact o. not hat the Bank
OF North Dakota now holds the note
Of NJ. G. Myhre for $1,000 as collateral
to the loan Of the Scandinavian Ameri-
can bank. or rather did on December
3, 1920? A. I do not.
Q. Well, look at the P. c. Jahnke
deal, No. 20? =.
A. (Reads) "P. C. Jahnke, $9,52s.69.
shares of stock in the Peoples State
bank of Casselton. the par value of
which is $500. The maker of this
Joan is the assistant cashier Of the
Peoples State bank of Casselton, and
is without financial responsibility, as
all his property holdings consist of III
shares of stock in the Peoples State
bank of Casselton. This party owes
the Casselton bank yer $1,000. These
two liabilities constitute a considerable
excess over the actual value Of the
stock. This loan is highly objection
able and a removal Of the same is
recommended"
@. How much was that? A. The to-
tai was $s,523.69.
Q. Now I will show you Exhibit 49,,
temporarily, and ask you to look at the
affidavits of Mr.. Hagen, Mr.. Eggen
and Mr.. Sherman and read what they
say?
A. (Reads) "P. c. Jahnke, s2,so7.eo
CATION Of s~s,52s.ss. and leaving a bal
ance thereon Of $7.215.99."
Q. $7,215.99-now Mr.. Lofthus, do
you not know that the Bank Of North
Dakota on December g.. 1920, held the
note Of P. c. Jahnke for $7,215.99 and
secured by the same shares described
in Mr.. Haldorson's report? A. I do not.
SIX =
Q. Look at what he says about O.
N. Hatley-I think you win find it to-
wards the end
A. (Reads) Mr.. Hatley has in the
bank, notes which he has discounted,
in the sum of $12,820. In this amount
there is also included some direct liza
bility obligations Of his own. Mr.. Hat
ley's financial responsibility is ques-