The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-02-20
UNDER
BANK RECEIVER
INVESTIGATED
Affidavit Reported To State
Bond Fund on Lieutenant
Governor Wood
) HELD BLAMELESS
Head of Department Says Mat
ter is Adjusted and Wood
8 49,
Is Not To Blame

Information to the effect that claim
for "the alleged wrongful act and
breach of trust" of Lieutenant-Gov-
ernor Howard r. Wood, may be made
formally on the State Bonding Fund
has been transmitted to Commissioner
of Insurance S. A. Olsness, lit was
learned today.
The matter involves two separate
allegations, amounting to $3,35O. The
money is claimed to be owing the
Prosper State Bank, Cass. county, OF
which Lieutenant-Governor Wood
formerly was the receiver.
The present receiver, Ole Engen,
who referred the matter to the Com
missioner Of Insurance, who has su-
pervision of the State Bonding Fund,
took the matter up with Mr.. Wood
about three weeks ago, and failing to
be satisfied in the matter, several days
ago filed an affidavit with the Com
missioner of Insurance as the basis
of claim to be made against the
State Bonding Fund. in which Lieut.
Gov. Wood was bonded as receiver.
The claims, briefly, are that WOOD
released security on one note for ST..
$50 in the Prosper bank and dls-
posed of grain checks ample to cover
another $1,4OO without giving credit
to the bank.
ExOnerates Wood
Harold Hopton, manager OF the state
bonding fund, who has returned from
an investigation of the affair, said that
the acts complained of were the re-
suit OF trust placed by Wood in en-
ployes and others, that there would
he no loss to the bonding fund and
that Wood as soon as he was informed
of the matter took steps to insure the
bank and fund against any loss what
\ever.
The affidavit of Mr.. Engen, who
was appointed receiver Of the Prosper
Bank to succeed Lieut.-Gov. Wood on
Dec. 13, 1921, and qualified on Dec.
20, 1921, sets out the claims as 1ol-
lows: .
That among the assets of the Pros
per State Bank were two promlsscry
notes executed by Mary E. Johnson,
payable to the order of the bank-one
for $3.50 executed Dec. Is, 1920, due
in one year, at s per cent, and an
other for $1,4Oo executed on June
80, 1920, due in 60 days at . per cent
The affidavit declares that to the
best knowledge and belief OF the al
fiant, O. L., Engen, the promlssory
notes are now unsecured, that Mary
p. Johnson is not financially respons-
iple and that the notes are uncol-
lectible.
Involves Grain Tickets
That he has been informed that as
collateral to the $1,400 note sufficient
wheat storage tickets to more than
cover the amount due on the date were
given, but that 1.-The said Howard X.
Wood while acting as receiver OF the
Prosper State Bank, returned sald
wheat storage tickets to the SAID Mary
q. Johnson or her agent or otherwise
dissipated said security and the sad
security is not now in possession OF
this affiant and was not delivered to
this affiant as Receiver aforesaid, on
December 20, 1921"
The affiant says the $3.50 note was
secured by first mortgage on Ger
tain Minnesota real estate ana that
the value of the security more than
equalled the note, but that 'the said
Howard r. Wood while acting as re-
ceiyer Of the Prosper State Bank, sat,
isfied the said mortgage and dellvereu
said satisfaction to the said Mary Il.
Johnson or her agent or otherwise
dissipated said security and the sad
security is not now in the possession
of this affiant.'
It was learned that Engen had in
formed Wood that he had received, IN
formation that Wood had released the
$3.50 mortgage for the purpose OF
trading Of the land by Wood and Har-
old e. Johnson to some Minnesota
party for 21 shares of stock IN the
Prosper State Bank.