The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-04-16
Nd. LEADERS
FLAY ACTION
IN BANK CASE
Dismissal of Indictments
Charging Embczzlement
Causes Surprise
ISSUE OF CAMPAIGN
Many Ask If Court Action
Was Prosecution of
Persecution

DISIHlSSdl III HTduu FOTkS lueSOdy
OF four indictments charging embez-
element against +. w. Cathro, l.. p.
McAneney and N. G.. Eggen, in con-
nection with transactions which pre-
ceded the closing of the Scandina-
vian-American bank at Fargo in Feb
ruary, 1921, has brought the wrath
of many political leaders down on
the attorney generals office and the
question of whether the indictments
were prosecution or persecution is
being asked.
The four indictments against
Cathro, McAneney and Eggen were
dismissed by Judge w. j. knceshaw
on motion of George A. Bangs, who
represented the state. The indict-
ments were returned by Cass coun-
ty grand jury in the fall of 1923, and
dealt with the alleged transfer of
funds from the Bank of North Dako-
Ia to the 9candinavian-Am american
bank just before the latter closed.
Mr.. Cathro was manager of the Bank
of North Dakota at the time, and Mr..
McAneney director of credits. Mr..
Eggen was cashier of the Scandina-
vian-A Anne rican bank.
The four indictments which were
dismissed charged four seperate en-
bezzlements, two Of $4,000 each and
two of $71, ,715 each.
Political observers were surprised
at the dismissal of the indictments.
Much time and money was spent in
securing acvidence to obtain the in
dlctments and the present state adj
ministration made the case one of
it's chief issues in the campaign last
year. At the time the indictments
against him were returned Mr.. Nc
Aneney held a government position in
Washington that paid him $4,000 a
year and he was forced to resign the
position when he was indicted.
The state moved to dismiss the in
dictments, according to the attorney
generals office, for the reason that
material witnesses are absent from
the state and there appears no pros
pect of getting them to return to tes-
tify in the near future.
The dismissal of the indictments
marks a definate period in the litlga-
tion connected with the closing of
the Scandinavian Anne rican bank Of
Fargo which has been pending in one
form or another for the last four
years.
The bank which has been a finan-
cial and political storm center
through its relations with the Non
partisan league, was finally closed
in February, 1921. In the spring Of
1922, Attorney General Shafer had a
grand jury called in Cass county at
ter several attempts to bring officers
of the bank and others to trial in
the ordinary way had failed. This
grand jury returned number of
indictments, but these were subse-
quently dismissed on legal grounds.
In November, 1928, another grand
jury was summoned in Cass county.
This body returned indictments
against Cathro, McAneney and Ha-
gen, and also against II. J. Hagen,
former president of the Seandina-
vian-American bank; j. J. Hastings,
man, former cashier; and F. c. Hea-
ton, former assistant cashier.
Several of the cases against the
four last named came to trial in
Grand Forks before Judge Kneeshaw
in the spring of 1924. In the case of
Sherman the jury returned verdict
of not guilty on the recommendatio
of Judge Kneeshaw, and Hastings
was also acquitted. Hagen was found
guilty of accepting deposits while
his bank was insolvent, and HeatOn
of making false entries on the books
of the bank. Both were sentenced to
prison terms.
Both Hagen and Heaton filed ap-
peals to the state supreme court. In
regard to Hagen the state has moved
for dismissal of the appeal and
this will come up for argument at
the May term of the supreme court.
In Heaton's case, Mr.. Bangs said the
state had just received a transcript
of the testimony.