The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-03-28
BANK CASE TO
JURY; INVOLVES
OVER $4,000
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He said he told Mr.. McAnaney
that the Scanainavian-Americ
Bank of Fargo had sent another
bunch of notes" to the Peoples
State and sent sight draft with
them, which they demanded the
Peoples State Bank issue on the
Bank of North Dakota. He said
they" said that the Scandinavian
American Bank of Fargo had to have
money to meet objections of the
banking board and the courts. Mr..
LeBuse said he told Mr.. Ellis to U.
X. the draft for $4,000
In response to a question as to
how he came in possession of the
notes he said that when they
handed me the notes at the Scan
dinavian- American Bank they said
things were all fiXcd.'
Lcmke Testimony Barred
An attempt to bring into the rec
ord that William Lemkc had know
ledge of the transaction, aud also
the conversations which were said
to have taken place with the Off
GERS Of the Scandinavian-Amcric an
Bank, failed when objections of
Theodore koffel, attorney for the
Bank Of North Dakota were sus~
tanned.
Mr.. Ellis traced in detail the
transactions. He was, he said,
cashier of the Peoples State Bank
for three years, from Feb. 1913 to
Dec. 1921. He said it was IL "lcaguc
bank" and that Thomas ALLEN Box
and j. j. Hastings were prominen.
in it. Mr.. Ellis now is teaching
school at Fredonia, he said.
lie said the Peoples State Bank
was pressed for cash in 1920
Had you during the fall OF 1920
made deals with the Bank OF North
Dakota for financial ASSISTANCE, he
was asked.
81 had"
For how long pcricl in the
summer and fall of 1920 were You
having negotiations with the Bank
of North Dakota in an effort to get
further financial assistncc?'
"A considerable period"
Were you approached about the
latter part of November with Il
proposition in connection wi.n tax
ing over notes Of the scandinavian
American Bank and the Bank of
North Dakota
yes, by p. l.. Arrhus.'
ANYONE else"
"F. B. Wood, a little later on.
He said about Nov. 90, 1929 he
had an interview with Arrhus and
later with Wood.
did you shortly thereafter re-
port to McAnaney at the Bank C
North Dakota regarding convelsa-
ton with Arrhus and Wood?"
Il did, on Dec. p"
Details Convcr sation
He was asked to detail the con-
vcrsation.
He said Arrhus said there had
been a meeting of Scandinavian
American and Bank Of North Dakota
representative with reference to
capital stock notes Of the former
bank, that the Bank of North Da-
kota had put lot of money in the
Scandinavian American Bank TO
make it a stronger bank and to pro-
tect it, and that there was an agree
ment between the Bank of North Da-
kota and the Scandinavian-Am American
Bank that the Bank of North Da-
kota was to finance increased cap
ital stock notes.
He said that Arrhus told him a
draft would be issued for the notes,
given by farmers chiefly, that the
draft would not be paid by the
Fargo bank but would increase it's
obligation to the Bank of North Da-
kota. He said Arr'hus told him he
was instructed to see friendly
banks" with reference to taking
over the notes "for certain reasons"
as he did not want it shown that
Observation-Disclosures had the
notes. He was to send the notes to
the Bank of North Dakota.
He said he was called from Far
go by phone and on Dec. 2 came to
Bismarck with Arrhus to see l.. P.
McAneny, credits Department. direc-
tor of the Bank of North Dakota.
He said McAnaucy called attention
to the fact he had not endorsed the
notes. Ellis said he replied that
according to the agreement as he
understood it the Peoples State bank
was to take the increased capitak
stock notes and send them on to
the Bank Of North Dakota, that the