The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-03-28
BANK CASE TO
JuRY;;INV0LVES
OVER $4,000
Defense Relies on Declaration
Il. of N. ID. Financed Fargo
Bank. Added Stock
RECORD is LOCATED
Reserve Sheet Found, Letters
Still Missing-McAnaney
Denies Note Agreement

Relying on evidence of Adolph lie
Bdsc, president, and II. ID. Ellis, cash
icr Of the Peoples State Bank of Cas-
sclton late in 1920 that the Casselton
bank merely acted as go-between
for the Bank of North Dakota, in
supplying $4,000 to finance added
capital stock for the now defunct
Scandinavian-Ameri bank of Far
go, A. G. Divet, attorney for the Peo-
pies State bank, laid his case before
jury in district court here today.
The claim of the Bank of North Da-
kota over $4,000 against the Cassel-
ton bank is invalid with respect to
the $4,000, he asserted, and the notes
given by farmers for the purchase OF
added capital stock in the Scandinavia
an-Amcricnn bank belong to the
Bank of North Dakota for which bank
the People State bank took them and
received money in the form Of re-.
deposits.
Theodore Koffel, attorney for the
Bank of North Dakota, was to close
the argument, early this afternoon. In
brief opening argument he held that
the money had been advanced to the
CasscltOn bank without an agreement
to take the capital stock notes and
that the Casselton bank is liable for
the $4,000. Mr.. Divet in his speech
charged Mr.. Koffel with appealing to
the prejudice of the jury in declaring
that $4,000 of the taxpayers money
in the Bank of North Dakota was at
stake
Before the case went to argument
it was reported that the missing re-
serve account sheet of Bank of North
Dakota, showing the account of the
Peoples State bank at that time, had
nScn ,Sca:ed. The missing correspOn-
dencc which the defense demanded on
the theory it would prove their con-
tenton of the deals testified to by
Mr.. lie Buse and Mr.. Ellis during
that period was not located and the
case went to the jury without their
seeing these letters. missing from the
files of the Bank of North Dakota.
lie Buses Version
Adolph LeBuse, wh1 was presi-
dent of the Peoples State Bank OF
Casselton at the time, cOrroborated
the testimony of II. ID. Ellis, cashier
of the bank, in district court here,
to the effect that money from the
Bank of North Dakota furnished ad-
ditional capitalization for the nov
defunct Scandinavian American
Bank of Fargo late ip 1920, and that
the Peoples State wAs the medium
through which the deal was hand
Ned.
The case, in which the Bank of
North Dakota seeks to collect
over $4,000 from the Peoples State
Bank, declaring that is due on the
redeposit account of the bank, pro-
badly will reach the jury during the
day. The defense of the Casselton
bank is that over $4,000 of the
money was placed in the bank to
take up Scandinavian-Americ Bank
stock notes for the Bank of North
Dakota, that the notes belong to the
Bank of North Dakota, and the ac-
count Of over $4,000 against the
Casselton bank should be cancell-
ed.
The subject of the use of money
from the Bank of North Dakota to
finance or bolster up league enter
prises has long been subject of
discussion. The house investigation
of 1921 skirted the details of the
Casselton bank transaction, but the
testimony of the officers of the
bank, which they said was a "lea-
que bank" is the first direct testi-
mony that money from the Bank
of North Dakota was used to finance
the Fargo ''league bank" according
to observers here.
Mr.. LeBuse said he came to Bis
marck late in 1920, met p. L. Arr
hus, formerly active in the manage
ment of the Nonpartisan league,
and was introduced to L. P. Nc
Ananey, credits department manager
of the Bank of North Dakota, in the
bank.
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