The Bismarck tribune., 1922-05-22

TWELVE NAMES ANNOUNCED
The names Of u of the 13 per-
sons indicted by the cass county
ol'and jury in connection with
the Seandiravian-American bank
case had been announced today.
They include: William Lemke,
Lars Christianson, p. r. Sherman,
N. G. Eooen. J. j. Hastings, A. G.
Town,ey, 1. p. McAneney, Il. A.
Paddock, E. w. cathro, II. D. Ellis
H. J. Hagen and George Totten,
Jr.. on . charge Of embezzlement
separate from the bank matters,
Fargo, May PA. c. Townley,
former president of the National Non
partisan league. gave bond Of $4,000
in Cass county district court today in
connection with six indictments
against him returned by the recent
Grand jury which investigated affairs
of the defunct 'Scandinavian.Ameri-
oan bank of Fargo.
Five of the indictments charge en-
bezzlement in connection with money
transfers between the Fargo bank
and the Bank of North Dakota. The
)ther indictment alleges false entries
IN relation to the Fargo institution
nd the Consumers United Stores.
H. A. Paddock, former secretary OF
he North Dakota industrial commits
sion, gave bond of $1,000 in connec-
l)n with one indictment charging
false entries. This also deals with
relations between the Scandinavian
American Bank and the Consumers
United Stores.
Others indicted
Cass county officials made indict-
ncnts regarding three other men as
ollows:
F. w. Cathro, Bottineau, former di
actpr- general OF the Bank Of North
Dakota, charged sans tive .indictmenfs
vith embazzlement of public funds
connection with the, relation be-
I. ween the Scandinavian American
bank and the state institution and ir
one indictment of aiding and abettine
the making of false reports to the
state examiner. He has been notified
it was announced, and will appear
voluntarily.
II. J. Hagen, former president o
the Observation-Disclosures bank
named in six indictments charging
acceptance of deposits when th'
bank was known to be insolvent; II
five charging embezzlement of pub
lie funds from the Bank of North Da
kota; in three charging of making
false etries in connection of loans tt
the Consumers United Stores; in fou1
other false, entry indictments and IL
four charging making of false report
to the state bank examiner.
IMcAneney Charge
III. D. Ellis, former cashier Of thu
Peoples State Bank of Casselton
charged in one indictment with max
ing false entries in connection of fl
nancing of capital stock increase o
the Scandinavian American Bank.
Indictment of Louis P. McAneney
former director Of the credits depart
ment of the Bank OF North Dakota
was announced Saturday afternoon
Mr.. McAneney now holds an import
ant position with the War Financ
Corporation in Washington. He ha,
returned to North Dakota to look afte
farming interests and heard that h
was indicted. He visited Bismarc
Sunday before returning to Washing
ton. He gave bond.
Basis Of Charges.
Six of the defendants are named
the group of five indictments invol,
ing the alleged transfer of money frol
the Bank of North Dakota to the Seal
dinavian.American bank Of Fargo.
Three of these indictments charg
embezzlement Of approximately SILT
600, while the other two charge tn
embezzlement of $4,000 each. TIL
charges of embezzlement run again'
| Messrs. Cathro, McAneney, Lemk
Townley, Eggen and Hagen.
1t is charged that the $4,000 We
transferred from the Bank of Mort
Dakota to the Scandinavian-America
bank from the date of actual openir
OF the Bank of North Dakota down
Jan. 81, 1921.
4 Covers Redeposits.
It covers redeposits and loans mac
I,by the state bank and to the Ears
bank and the grand jury took the p
sition that this money was transfe
red for the private benefit of perso1
named in the indictments.
The two charges Of embezzling 500
each. covers the transfer of two iten
of that amount Feb. IA, 1921. that {
, ing the date on which the Scandin
Wan American bank was closed by Il
bank examiner.
The transaction by which 1t
charged that funds of the Bank
North Dakota were used to finance
Y capital stock increase of the Scan
\ nayian-American bank and on viii
} deal charges of making false represe
tation to the state banking departme
have been returned involves six OF t
:, accused men. q.
y Indictments Made
) In cases announced "a of the
n indictments returned have been ma
r public as follows:
d Sixteen indictments charge acce
t. ance Of funds in the Scandinavia
Continued on Page 81