Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-05-20
E. U. STORES
LOANS, 5 FIGURE
IN INDICTMENT
Ernbezzlenent and Accept
ing Deposits Charged
Against Eggen. Y,
Six Have Now Been Taken
Into Custody; Seven
More to Come.
(Herald Special Service

Fargo, N. D., May 20.-Ihree
more arrests have been, made as
result OF the indiCtmnts re-
turned by the grand jury which
,probed the wrecking Of the Scan
dinavian-American Bank Of.
Fargo. !
The men whose arrests wue
announced today arc: .h.3
p. X Sherman, former cnshier
Of the Scandinavfan-Amcrfc ,
Bank. G4 7t q &,
N. G. Ekxen, also. former
cashier of the bank.
J. J. Hastings, former busi.
tncss manager Of tho NoupaFti.
san league, and vioo president of
the Scan(1inavfan-Amexdc 0Ank.
Sherman and EgEen wers. hcth.e .er,
rested at Los Angeles. CALI naes1laa
Is reported to be already On iuB IN.
to- Fargo, but it lis understood tia,
Egsen may fight extradition. Has
tings was arrested at Poccatello,y Y Idz
1t. is understood that he will tbe. n
lowed to remain there for aIsfew daya
as his wife has Just iiadergonei "a
operation. e q .ss,s ~
There are four charges against
Sherman of making false entries.
These, are based partly at least, it IL
sSS~oAS
to the Consumers United Stores Co..
one of the subsidiary enterprises OF
the Nonpartisan league, but which
were reported as Individual loans.
/. Hastings faces one charge Of max
ing false entries.
Against Eggen there are five charE-
es Of embezzlement arising from the
transfer of funds from the Bank of
North Dakota to the Scandinavian
Do oh 80 n
ing false reports, and 16 charges Of
accepting deposits when the Scandi-
navian- Bank was insol-
vent -
Sherman was cashier OF the Scan.
dinavian American Bank at the. time
of its closing by the state banking
board in October, 1919. Shortly after
that time he was succeeded BY Mr..
Eggen.
Six Now Arrested.
The three arrests announced today
make total of six. the arrests Of
former Attorney General William
Lemke, George A. Totten, Jr., and
Lars Christianson. one Of the direc-
tors of the defunct bank having been
announced Friday AS indictments
were returned against 13 individuals.
there are seven more arrests to be
made
The five embezzlement charges
against Eggen arc understood to be
tions as those on which the embexxie-
ment charges against Mr.. Lemke are
preferred. 5tt.
Lemke. Christianson and Totem
were all released under bonds late
Friday. Lemke's bail was fixed at
Sc, 900, Totten's at $4,000, and Chris
tianson's at $1,000.
Bill Is Pcevish.
Lemke. former attorney general Of
North Dakota and member of the ex-
ecutive committee of the, National
Nonpartisan league tonight attacked
indictments brought against himself
and others by Cass county grand jury
q political move by Sveinbjorn John
son, attorney general who is mem
ber Of the Independent Of anti-non-
partisan faction.
TT is a sad day when the machinery
Of the law is invoked to function ~ 4
mud-throwing machine just before :
primary election" he said in q state
ment issued ahis evening, adding thar
it is impossible for the trials to take
place until after the primaries.
Nineteen members OF the jury we're
residents Of Fargo. says the statement
while only two were farmers and sew
eral OF these members were known ~
notorious enemies of the NonpartiAan
league NJ IN u
The only men the state could de-
pend on as principal witnesses were
men who have been kept upon the
state payroll in order that they would
testify against me and others who they
months made 4 regular husinesS OF
| it-and thew are men whom the pN0D1e