Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-06-27
Northwestern Neus
rendered 1t imperative that We take
definite steps to vindicate the law.
The Grand Jury

SAAAS W. W"
definite steps to vindicate the law.
The Grand Jury
After we had made these investfgA-
tons, two courses were open TO us.
First, we could bring those we be-
lieved to be guilty before a police
magistrate or a Justice Of the peace;
present the evidence and put it up
to the officer to bind them over to the
ask that. a grand jury be called to in
vestigate the entire situation. We
started two prosecutions under the
first procedure, but we decided, IN
view OF the experience We had with
these prosecutions. that it would take
us three months to present all the
evidence, we had in this manner ana
in all the cases which. We believed
should be investigated. We dismissed
these actions ourselves and we applied
to the judge Of the district for the
%convening of a grand jury. This APP
plication was granted, A grand jury
consisting Of II men and 4 women
were impaneled, from the body OF
Cass county and we laid before them
the evidence we had.
Thirty.six Indictments
The grand jury is instructed by the
court, and The law is that they may
return, no Indictment unless they are
satisfied beyond a reasonable doubt
that the person indictedsis guilty Of
the crime charged. Thirty-six indict-
! ments were returned. t
This, Of. course. included only
crimes and offenses which appeared
to have been com mitted, within the
iurisdiction>o of Cass county. Any Of
lenses committed outside OF Casa
county would not be within the juris-
dictions Of the grand jury.
II would be unseemly and improper
for me, on this occasion. to- say any
thing indicating my personal belief
in the guilt or innocence of any OF
not to be tried in the newspapers nor
upon the public platform. | find 1t
necessary to refer to what has been
done. simply because 2aoraa-TofsAths
men indicted have chosen tt take the
cases into the press n have sought
to make a political issue OF The in
dictments. Notwithstanding the bad
example set by them, I shall not dis
cuss the asses. / am simply going to
cuss the eases. l am simply, going to
Investigation OF the relations existing
between the Bank Of North Dakota
and the Scandinavian American bank
nj Fargo, and between the Sea ndina-
4 vian-American bank Of Fargo and 4
i large number or league institutions
enterprises and corporations, One
sample must suffice.
There is d law which prohibits 9
bank from making Il loan TO any one
individual in excess OF Is per cent
Of its combined. capital and surplus
The Scandinavian American bank had
a combined capital and surplus Of
$50, 900, and therefore the maximum
loan to any, one concern. under tht
law, was $4,000. Nevertheless. this
hank, after It came under tho iii
nuence Of the f~:rnpartisan League
you recall, Of course. that the League
purchased that hank at II time II
its history-this bank; loaned to ON
league concern $1,000 within abol'
five Of ak weeks. more than nine
times what the law permitted. A de
vice to -cvade the law was then adopt
ed in tho form OF false records ant
bookkeeping to conceal the illeka
character 81 the transaction. Thu
was done In a large number Of case'
and hundreds of thousands of dollars
were illegally loaned in this manner
We found that the ScAndina-
an-Ah1efican hank closed about
the 14th ri February. 1891. but
that for 4 long time prior there
to during oil Of which time IL wa
utterly and hopelcssly i~1solvent.