Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-07
FIXED
THINGS WHEN
HAGEN ORDERED
Gives Details of Occurrence
es at S.-A. Bank When 4
Cross-Exa1nined.
Defendant Processes Lack Of
knowledge on Certain
Points.
(By Staff Correspondent )

(By Staff Correspondent
Fargo, n. d., Jan. Gross exam
;nation Of F. C. Heaton. former CASH
Ter of the Scandinavian-Ameri
Bank Of Fargo, who took the stand
IN his own defense in his trial on
charge of embezzlement, occupied the
morning session OF the Cass county
district court today
The session was comparatively quiet
coming after the sensational charges
made by Heaton on the stand during
Ills direct examination Friday, which
included allegations of Justification OF
the books of the bank against Presi-,
dent H: J. Hagen and an alleged at
tempt by former Attorney General
William Lenke to get Heaton to
agree to give false testimony before
the house investigation committee at
Bismarck last winter.
Gave Details
Under the cross examination; Of
States Attorney w. E. Green today,
however. Heaton gave several details
as to the alleged deception Of the
state examiner through the changing
Of a $4,000 overdraft which origin
ally appeared on the bank books In
red Ink, by writing the figures over in
black and thus making it appear a
credit. When the books were shown
to the examiner, Heaton said today
President Hagen placed his hand on
the page In such manner that q
number of the figures preceding the
faxed entry were covered over, and
the examiner thus failed to notice the
discrepancy.
In connection with the alleged fax
Ing Of an item Of $4,000 in connec-
tion with the account Of the state
agricultural college to which he testi-
fled Friday, Heaton said today that
he had no idea how this item had
ultimately been covered up
<as4 Ordered Accounts 'Fqxcd .Upg,'
The defendant had no explanat ation
Of several false entries on, .thes tiooks
Of the bank which had been previous
~. shown by comparison with Gus
| toners pass books. monthly state
!; nents. etc. He said that they might
, have been due to mistakes" ana also
declared that on s"veral r-~r~~-.,
President Hagen had ordered that
| various accounts Should uuf Ia.
| up" 50
In this connection he said that on
January a., 1921. the day before the
check up Of the bank was made, he
had made out number of deposit
slips from data furnished him BY NJ.
j. Brevig. the chief assistant cashier
OF the bank. No actual deposits cor
responding with these slips were made
on THAT day. Heaton said. and the
slips were made up to cover shortages
which were known to exist.
| Hagen sometimes come over to me
with slip and said This account had
botter be fixed up ;" Heaton said.
Did as Ordered,
"And when he did so did you fis
it?" asked the states attorney.
Yes" replied Heaton
Tho defendant corrected some Of
tho testimony he had given unde,
cross examination Friday regarding
conversations lie had hold with sew.
eral of the banks directors regarding
the shortages saying that he had be
come confused between two converse.
tons which had taken place.
He professed lack of, knowledge re.
garding several transactions concern.
ing which he was questioned by thu
states attorney The cross examina.
ton had not been completed wher
the court recessed at noon today and
will be continued this afternoon. Al
its conclusion Francis J. Murphy, at.
torney for the defense is expected
to keep Heaton on the stand for fur.
ther direct examination. Present in.
i fdicattons are that the case will mo-
4 go to the Jury before next Tuesday
4 as the defense has still a few more
4 witnesses to place on the stand and
the state may put on some rebutta
evidence.
Fridays Session.
| During the session Friday afternoon
a number of sensational charges were
made by Heaton against several o,
the bank officers and state officials
These included the following allega.
tions:
That arrangements were made Il
have new stock issue of the Scandi
navtan American bank financed BY
the Bank of North Dakota through
deposits and loans to other league
banks. and that the carrying out o.
this plan was only prevented by tn.
investigation of the Bank Of Nortf
Dakota by the house Of representa-
! tives committee last winter.
/ That William Lemke. then attorne,
general of the state urged Heaton Il
a commit perjury when it appeared
I likely that he would be called on t.
4 testify before the house investigating
committee.
\ That ]. H. Hagen president Of tn,
A Seandinavian-America bank, on q
least one occasion falsified the book,
of that bank and that on another oc
casion these books were falsified b,
4 Heaton himself acting under Hagen
instructions.
That o. 3. Lofthus, state examiner
accepted check from J. w. Brintol
las payment of q loan made to the u
! s. Sisal Trust and certified that loal
to the supreme court was paid. al
though he knew tina. Rrinton aid NO
4 have funds to cover the check. Thi
is the sane story that Brinton tclt
when testifying before the house in
vestigatsng committee last winter.