The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-03-13
THATCHER AND
L0FTHUS UNDER
FALSITY CHARGE
Warrants for Arrest of Former
Examiner and Accountant
Are Issued
SCANDINAVIAN BANK DEAF.
Charged with Making False Re-
port to the Supreme Court
in the Matter
SCANDINAVIAN BANK DEAL

Thatcher, Minneapolis accountant, and
0. E. Lofthus, Bismarck, former state
bank examiner, with perjury.
The prosecution is founded on an af-
fidavit signed by Messrs. Thatcher
and Lofthus and used before the SUI
preme court of North Dakota to OBJ
tain re-opening of the Scandinavian
American bank of Fargo in October.
1919, after it had been closed by tE,
banking board
Arrest of Lofthus and Thatcher will
bring the number of persons against
whom charges have been filed in con-
nection with investigation into the af-
fairs of the defunct Scandinavian.
American Bank Of Fargo to four, A. G.
Townley, president OF the National
Nonpartisan League, and J. ]. Hast
ings, former vice president Of the bank
and former financial secretary of the
league, having been charged with en-
bezzlement.
The charge against Lofthus and
Thatcher figured in the examination
conducted by the 1921 legislature into
the state-owned industries and the ac-
tivities Of several league leaders or
officials in so-called league banks" or
league enterprises"
MIR. Thatcher is president of the
Equitable Audit company Of M.nne-
apol.s and was in charge Of the audit
rbf the Fargo bank after it first closed.
Report to Court.
The report whicl Lofthus, as bank
examiner, and Thatcher, as an ac-
countant, submitted to the supreme
court following the "I4anger raid on
the Scandinavian-American bank in
Fargo in October, 1919, was before the
legislative committee of the house. j.
w. Brinton, former Lacquer, testified
that HE gave check for $$11 900 to-
cover. a shortage existing inatae Scam
dinavian-American bank through mis-
appropriation Of funds for the U. s.
Sisal Trust, that he had no funds in
'the Minneapolis bank on which he
drewthe check and trat Lofthus agreed
to hold t.le check until date when
funds could be placed in the bank.
Brinton testified that LOfthus swore to
the supreme court that the $11, 900
item had been paid
The LANCER raid" was made on or
ders Of members of the banking board.
controlled by opponents of the league
administration. William LANCER, then
attorney general, investigated its az
fairs An examination made for the
board, known as the Haldorson report.
said the bank was insolvent. Lofthus
entered the bank and made an exam
ination. The supreme court on the
showing made ordered the bank re-
opened.
Brinton also testified that former
Attorney General William Lemke, then
acting as attorney in the case, knew
that he did not have funds to meet
the check he gave. It was during the
legislative Investigation year ago
that the Scandinavian-American bank
finally closed. 1t Is now in tle hands
of receiver.
Specific Charges.
The case was instituted by Attorney
General Johnson through w. C. Green,
states attorney of Cass county. The
affidavit charges:
'That the said Myron W. Thatcher
and 0. L. Lofthus did at said time and
place falsely, corruptly, knowingly, de-
liberately, unlawfully, Willfully, felon-
iously, and contrary to their oath, and
to the oath of each of them, depose
and declare and testify in material
matter that which the defendants, and
each of them, knew to be false, upon
their oath duly taken to the truth Of
said material matter before N. J. Bre-
Wig, a notary public within and for
said Cass county, North Dakota, to be
used in a proceeding, and which was
used therein, and which proceeding
was then and at said time pending be-
! for the supreme court of the state Of
North Dakota, said proceeding being
entitled in the said supreme court of
the state of North Dakota, as follows:
The case referred to being that of
the state of North Dakota on the rela-
ton of the Scandinavian-American
bank, o. E. Lofthus, ct al. against Will
liam LANCER, ct al.
The affidavit of Thatcher and Lof-
thus declaring that they had submit
ted true and correct report Of the
condition of the bank is set forth.
Quotation From Affidavit.
The following quotation from the af-
fidavit of Lofthus and Thatcher is CIV
en- as follows:
"The Sisal Trust loan is shown as
outstanding and unpaid in the tinan-
cial statement that is submitted. These
parties have just at the hour that this
report is being made paid their notes
in full, Sill 100000
The affidavit continues:
"That said statement and evidence
sworn to by the defendants, and eacn
of them, was false and untrue, and
known by them, and each of them, to
be false and untrue, and was willfully,
deliberately, knowingly and corruptly
sworn to by said defendants, and eac,l
of them, knowing the same to be false
and untrue in this, that the said Sisal
Trust loan was not paid by the parties
making said loan, or at ALL.
~ g.