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FARGO BANK CLOSED FARGO, N. D., Oct. 2.-The Scandinavian American Bank of Fargo, with habilities aggregating more than $1 600.000 N today declared insolvent by the ba king board of North Dakota. It was ordered closed and placed in the hands of a temporary receiver
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BIG BANK FAILS IN NORTH DAKOTA (By The Associated Press) FARGO, N. D., Oct. 2-The Scandinavian-American bank of Fargo, with liabilities of more than $1,600,000, has been declared insolvent by the North Dakota banking board and ordered closed and a receiver appointed.
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North Dakota Bank Insolvent. Fargo, N. D., Oct. 2.-The Scandinavian American Bank of Fargo, with liabilities aggregating more than $1,600,000, was today declared insolvent by the banking board of North Dakota. It was ordered closed and placed in the hands of a temporary receiver.
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Fargo Bank Insolvent. Fargo, N. D., Oct. 3.-The Scandinavian American Bank of Fargo( with liabilities aggregating more than $1,600,000, was declared insolvent by the banking board of North Dakota. It was ordered closed and placed in the hands of a temporary receiver.
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LANGER HEADED OFF BY SUPREME COURT DECISION Motion For Writ Directing Cole to Assume Jurisdiction Denied. Bismarck, N. D., Oct. 11.-Heading off of Attorney General Langer in the Scandinavian-American bank probe was made complete this morning when the supreme court denied his motion for a writ directing Judge A. T. Cole of the Cass county district court to assume jurisdiction in the action which Langer brought last week for the appointment. of a re? celver for the Fargo institution. Attorney General Langer recited the fact that by virtue of a resolution state. banking he-brought appointment a for the action of manent the for receiver the Fargo of bank perand that such action was pending before Judge Cole at Fargo when the supreme court issued its order restraining the banking board from further procedure in the matter. A hearing in this matter had been set in Judge Cole's court for October 13, but Judge Cole this week filed notice with the attorney general that he believed he had no authority to hear this action and that the order of the supreme court restraining the banking board also restrains him as district judge from hearing this case. Attorney General Langer's motion urged that the supreme court's order in his opinion did not bar District Judge Cole from acting in this case, and he prayed from the supreme court an order directing Judge Cole to proceed with the hearing on October 13. Fargo, N. D., Oct. 11.-An active for the purpose on assets of the collection realizing campaign Scandinavi- of an-American Bank of Fargo, closed ten days ago by the state banking board, is being undertaken by E. O. Lofthus, state bank examiner, he announced today. Examiner Lofthus said today that he has not yet received the papers and letters taken from the bank's files by the Attorney General's department and which were ordered returned to the custody of the examiner. P. E. Halldorson, the receiver appointed by the state banking board, said today that he had declined to acknowledge a turnover of the property of the bank to the state examiner on the ground that he had been summarily removed from custody of the bank by the state examiner, and had had no control over its assets while the process of checking up was undertaken by the state examiner and his clerks. The fact that the supreme court yesterday afternoon denied the motion of William Lemke, attorney for the bank examiner and bank directors, for a postponement of the hearing on the injunctional order, will bring the case to a hearing next Wednesday. This is the action in which the banking board and its receiver, P. E. Halldorson, were temporarily dispossessed of control of the bank. Attorney Lemke said more time was necessary to prepare a showing for the bank. The banking board asks dissolution of the temporary injunction and the reinstatement of Halldorson as receiver.
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# FARMERS CONFIDENT # BANK WILL REOPEN By United Press: VALLEY CITY, N. D., Oct. 16.- Non-Partisan league farmers are confident that the Scandinavian-American Bank of Fargo will be re-opened after the favorable testimony before the state supreme court. They will hold a rally in Fargo Oct. 21, driving in processions from all parts of the state. Two hundred farmers of Barnes county have painted signs reading "We are taking $70,000 cash to deposit in the Scandinavian-American bank for six months." This is in the expectation of having to meet a run on the farmer bank when it re-opens.
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Bank Is Reopened. [United Press Leased Wire Service. ] FARGO, N. D., Oct. Z5.-The Scandinavian-American bank, closed by the state banking board recently, was reopened for business today. State Bank Examiner Lofthus surrendered receivership following a decision of the supreme court yesterday that the bank was solvent.
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Fargo, N. D., Oct. 25.-The Scandinavian-American bank closed by the state banking board recently, was re+ opened for business today. State Banking Examiner Lofthus surrendered receivership following a decision of the supreme court yesterday that the bank was solvent.
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The Scandinavian-American bank of Fargo has been reopened, the supreme court of North Dakota having removed the receiver and declared the bank solvent. The acid test will come when the depositors try to get their money.
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GREAT FARMER RALLY BOOSTS FARGO BANK Vote to Raise Capital and Surplus From $60,000 to $600,000. By E. B. Fussell. Fargo, N. D.-as an answer to the attempts to wreck the Scandinavian-American bank at Fargo, 7,000 League farmers gathered here on Tuesday, October 21, and decided to increase the capital and surplus of the bank, now $60,000, to $600,000, making it the largest bank in North Dakota. It was the greatest meeting in the history of the League. The Fargo Auditorium, seating 3,500, was crowded a half-hour before the meeting started and after all avallable standing space had been filled it was necessary to hold afternoon and evening overflow meetings out of doors. Farmers from the northern part of the state were on hand with two bands boosting for Grand Forks for the location of the big $1,500,000 mill and elevator. "There are no bank wreckers in Grand Forks," was their chief argument, and though the meeting was held in Fargo, the chief rival of the Forks for the mill and elevator, the Auditorium resounded with cheers for the northern town.' Governor Speaks. Governor Lynn J. Frazier was accorded a tremendous ovation when he addressed the night meeting. Minnesota and North Dakota "Frazier-for-President" clubs were on hand urging his choice by the Republican national convention for first place on the presidential ticket in 1920. President A. C. Townley of the League addressed both afternoon and evening sessions and held the big crowd spellbound as he told of the founding of the League, the fights that it had met and won and of the final effort made now to down it through financial influences. M. W. Thatcher, president of the Equitable Audit company of Minneapolis, told the farmers the true condition of the Scandinavian-American bank. Despite the attempts to break it by starting a run the bank has cash resources of nearly $400,000, he pointed out, and had nearly twice the legal reserve required. Run to Deposit. Following the meeting a sure-enough "run" on the bank was started. It was not a run to withdraw deposits, however, but to put up more money. A dozen tellers and volunteer clerks were kept busy until after midnight, receipting for subscriptions to additional stock and for deposits to be placed in the bank as soon as it re-opened. Individual deposits ranged from $50 up to $5,000, while telegrams were received at the meeting offering deposits from banks and individuals. Other speakers at the meeting included President J. M. Anderson of the Equity exchange, former Congressman James Manahan of Minneapolis, Speaker L. L. Stair of the North Dakota house of representatives, Senator J. I. Cahill, William Lemke, A. E. Bowen, George D. Brewer and N. S. Randall. A big night parade was a spectacular feature of the day's events. Resolutions adopted by the meeting pledge the League members' united support to the management of the League and the state officers who are working to carry out the industrial program authorized by the people and the last legislature.
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FARGO BANK SAVED Three weeks ago the move to close all farmer-owned banks in the Northwest was put on foot. The money trust crowd, working through the turncoat attorney general of North Dakota, descended on the Scandinavian-American bank of Fargo contrary to law. The thing which was to start the run on the other farmer banks was the widely heralded announcement that farmers' notes and checks were not good banking security. But the run did not materialize for two reasons, which the money crowd underestimated. The farmers have a big press of their own in North Dakota, and they are serious enough about the fight against special privilege to do some real thinking. Five years ago tactics like those used in this case would have started a near panic in the whole state. The money trust bankers were SO confident of success that they turned down drafts on farmer banks for two weeks before the raid was started. Now the run is going the other way. Instead of taking money out of farmer banks, money is pouring into them from farmers who by force of habit have been doing their banking with avowed enemies of the organized farmers. The League has just held a great farmer meeting in Fargo and it was voted to raise the capital stock from $50,000 to $320,000 and the surplus from $10,000 to $290,000. The ScandinavianAmerican bank's capital wilv be increased from $60,000 to $600.000, and it will become the largest bank in North Dakota outside of the state-owned central bank. This attempted bank wrecking will do more to promote cooperative and state banking in North Dakota than reams of general argument. Unlike such states as Minnesota and Nebraska, North Dakota'offers co-operative banking a fair chance. As the central state bank gets into full working trim it will be able to offer special assistance against any money trust raids. Due to the present bad example thousands of farmers there now see the ned of protecting their co-operative and political organizations by doing their banking business cooperativevy rather than with th little servants of the special interests. There will be a real backfire.
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FARGO BANK SAVED Three weeks ago the move to close all farmer-owned banks in the Northwest was put on foot. The money trust crowd, working through the turncoat attorney general of North Dakota, descended on the Scandinavian-American bank of Fargo contrary to law. The thing which was to start the run on the other farmer banks was the widely heralded announcement that farmers' notes and checks were not good banking security. But the run did not materialize for two reasons, which the money crowd underestimated. The farmers have a big press of their own in North Dakota, and they are serious enough about the fight against special privilege to do some real thinking. Five years ago tactics like those used in this case would have started a near panic in the whole state. The money trust bankers were SO confident of success that they turned down drafts on farmer banks for two weeks before the raid was started. Now the run is going the other way. Instead of taking money out of farmer banks, money is pouring into them from farmers who by force of habit have been doing their banking with avowed enemies of the organized farmers. The League has just held a great farmer meeting in Fargo and it was voted to raise the capital stock from $50,000 to $320,000 and the surplus from $10,000 to $290,000. The ScandinavianAmerican bank's capital wilv be increased from $60,000 to $600,000, and it will become the largest bank in North Dakota outside of the state-owned central bank. This attempted bank wrecking will do more to promote cooperative and state banking in North Dakota than reams of general argument. Unlike such states as Minnesota and Nebraska, North Dakota offers co-operative banking a fair chance. As the central state bank gets into full working trim it will be able to offer special assistance against any money trust raids. Due to the present bad example thousands of farmers there now see the ned of protecting their co-operative and political organizations by doing their banking business cooperativevy rather than with th little servants of the special interests. There will be a real backfire.
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COURT HOLDS FARGO BANK IS SOLVENT Bismarck.-In a decision handed down last Friday the state supreme court declared the Scándinavian-American bank of Fargo to be solvent; that postdated checks are negotiable instruments and therefore proper collateral; that the state banking board has no power to appoint a bank receiver; and that the board cannot determine a bank insolvent and cause it to be closed without the knowledge and consent of the state examiner. The opinion was written by Justice Bronson, Justices Robinson and Grace concurring. Following the decision, the bank was immediately reopened for business.
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NO RECEIVER YET APPOINTED Fargo, Feb. 15.-No receiver had been appointed today. to take over the affairs of the Scandinavian-American bank, closed yesterday. Officials of the bank said that two deputy bank examiners were conducting an examination of the books.
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. BANK CLOSES IN N. DAKOTA BISMARCK. N. D., Feb. 14.-Announcement was made from the office of State Bank Examined O. E. Lofthus today that the Scandinavian American bank of Fargo, N. D., did not open its doors this morning. Break of crop prices making the bank's paper "slow" was assigned by the examiner's office for the closing of the institution.
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Fargo bank in September, 1919, the joker was applied. It had never been the custom to do so in examinations of any other banks. The examiner himself, in reports on other institutions, had written: "Sums due to banks are classed as demand deposits." One widely known judge, who was attorney for the North Dakota Bankers' association even prior to that time, had pointed out the absurdity of the law. It made it practically impossible to operate a privately owned state bank as a reserve bank. The supreme court, in ousting the attorney general and his agents from the Fargo institution upheld the custom, and not the joker. In fact, the supreme court decision made what has been custom, the law. The law itself has been amended since. Nevertheless, the political opponents of the administration have attempted to apply this ancient joker to the Bank of North Dakota and the ScandinavianAmerican bank. It ceases to be a wonder that a run developed again on the Fargo institution and it was forced to close its doors recently. Testimony proving that many banks were far below legal reserve was introduced in the senate committee from reports on file in the office of the state bank examiner.
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Fargo bank in September, 1919, the joker was applied. It had never been the custom to do so in examinations of any other banks. The examiner himself, in reports on other institutions, had written: "Sums due to banks are classed as demand deposits." One widely known judge, who was attorney for the North Dakota Bankers' association even prior to that time, had pointed out the absurdity of the law. It made it practically impossible to operate a privately owned state bank as a reserve bank. The supreme court, in ousting the attorney general and his agents from the Fargo institution upheld the custom, and not the joker. In fact, the supreme court decision made what has been custom, the law. The law itself has been amended since. Nevertheless, the political opponents of the administration have attempted to apply this ancient joker to the Bank of North Dakota and the ScandinavianAmerican bank. It ceases to be a wonder that a run developed again on the Fargo institution and it was forced to close its doors recently. Testimony proving that many banks were far below legal reserve was introduced in the senate committee from reports on file in the office of the state bank examiner.
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# FARM TAXES Governor Nestos' stand that there should be a reduction in the proportion of the burden of taxation borne by farm property in North Dakota is no less significant than the figures he gives to show how this proportion has increased during the time the Nonpartisan league held control of the tax machinery of the state. Although when the league came into office the exemption of farm improvements from taxation was announced with a flourish of trumpets, it has been shown that this exemption was more than offset by the increase in taxes on farm lands. As a result of the league's taxation policy the farmers of the state are today bearing a proportion of the tax burden materially greater than that which they bore when the league came into power in 1917. All this, in spite of the love for the farmers of the state constantly expressed in words by the league leaders. It has remained for the Independent governor of the state to call attention to a condition which the league administration brought about or at least aquiesced in and to demand that it be remedied. But still, the League press calls Governor Nestos the Anti-farmer candidate. Who says the high cost of living isn't coming down? In Minnesota memberships in the Nonpartisan league are being sold for $6.50. This is getting close to the pre-war figure. Even J. W. Brinton seems to have found signing Nonpartisan league notes an expensive process. We are breathlessly awaiting the publication of Justice Robinson's book of essays at two dollars per. The Fargo-Courier News is peeved because the farm loan bank of South Dakota helped the private banks of that state. Let's see, wasn't it rumored that the Bank of North Dakota gave some help to the Scandinavian-American bank of Fargo? But maybe the South Dakota institution helped some banks which were hot run by deserving Non-partisan leaguers. Can't you just imagine what a high old time Peter Garberg would have prosecuting the men indicted for the wrecking of the Scandinavian-American Bank at Fargo? If either the tariff or the soldiers' compensation measures are completed this year, congress will have to speed up much faster than it is moving at the present time. Somehow we haven't heard very much from Bill Lemke during the present primary campaign, and A. C. Townley is too busy "raising the rocks" to pull off any airplane stunts. The Republican senatorial committee announces that it will support Brookhart in Iowa. It is not crazy about him, however. A legless pair eloped in Indiana, making use of an automobile. Legs are superduous in these mo
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AFFIDAVIT OF PREJUDICE FILED IN S. A. BANK CASE Fargo, N. D., Jan. 5.—An affidavit of prejudice against Judge A. T. Cole in Cass county district court was filed Thursday by the plaintiffs in the case brought by stockholders against the directors of the defunct Scandinavian American bank of Fargo, precluding possibility of the case being tried at the January term of court. In the suit, the stockholders demand an accounting of the director's management of the bank and an accounting for the value of any property of money which the first accounting may show was transferred to the directors or others. M. A. Hildreth, a stockholder and attorney for
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COOLEY TO NAME BANK CASE JUDGE Has Authority As Arraigning Jurist, High Court Holds Bismarck, N. D., Dec. 28.—Judge Chas. M. Cooley will appoint the judge which will sit in the so-called Scandinavian American bank cases. According to the clerk of the supreme court, that body construes the law in regard to filing affidavits of prejudice against both the presiding judge and county so as to authorize the judge before whom the action was instituted not only to designate the county to which the case will be sent, but to name the judge who will preside. When the defendants in the cases were arraigned before Judge Cooley, their attorneys filed affidavits of prejudice against both the judge and county, and change of venue to Grand Forks county was granted. The case arose from the failure of the Scandinavian American bank of Fargo which closed in 1921 with thousands of dollars of the state's money. Indictments against former officers of the bank and of former officers of the Bank of North Dakota were returned by a Cass county grand jury called by Attorney General Shafer to investigate the matter.
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Case of Former Fargo Banker To Be Argued in Supreme Court Here Tuesday (By The Associated Press) Fargo, N. D., May 1.—Counsel for H. J. Hagen, former president of the closed Scandinavian American Bank of Fargo, convicted on a charge of receiving deposits in an insolvent bank, will ask for new trial on grounds that records have been lost, when the case comes before the state supreme court at Bismarck, probably on May 5, U. L. Burdick of Fargo announced today. Motion to dismiss the appeal was filed several weeks ago by G. A. Bangs, Grand Forks, special assistant attorney general, who expects to go to Bismarck in connection with the case. Mr. Burdick said an extension of time might be asked by the state. The Fargo defense attorney said he would be in Bismarck Tuesday to present affidavits in the case and ask for disposition of the matter. IN COURT TUESDAY Grand Forks, N. D., May 1.—Geo. A. Bangs, special assistant attorney general, said today that so far as he knew there was no intention on the part of the state to ask for any extension of time in the H. J. Hagen appeal, and that he expected the matter to be presented to the supreme court next Tuesday as scheduled.