1.
January 27, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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State Bank Examiner Shuts Up People's State Bank SUSPENSION IS TEMPORARY FRANK FLORIN, RECENTLY CONVICTED IN FEDERAL COURT, CASHIER OF CLOSED INSTITUTION - BANK CAPATILIZED AT $10,000-CAUSE A MYSTERY. Lakota, N. D., Jan. 27.-The People's State bank of Lakota was ordered closed last night by State Bank Examiner Oliver Knudson. According to a statement given out today the bank's suspension will be but temporary, and it is expected that the institution will reopen for business shortly. The state bank examiner, who is now in charge of the bank, and the bank officials both decline to divulge the nature of the present embarassment. Frank Florin, who was convicted in the federal court at Fargo on Tuesday on a charge of sending obscene matter through the mails, is cashier of the closed banking house. The bank is capitalized at $10,000. Efforts made today to learn the amount of deposits in the bank proved of no avail.
2.
January 29, 1910
Bismarck Daily Tribune
Bismarck, ND
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LAKOTA BANK CLOSED BY THE EXAMINER Lakota, N. D, Jan. 28,-The People's State bank of Lakota was ordered closed by State Bank Examiner Oliver Knudson. According to a statement given out the bank's suspension will be but temporary, and it is expected that the institution will reopen for business shortly. The state bank examiner, who is now in charge of the bank, and the bank officials both decline to divulge the nature of the present embarrassment. Frank Florin, who was convicted in the federal court at Fargo on Tuesday on a charge of sending obscene matter through the mails, is cashier of the closed banking house.
3.
January 29, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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BANK'S DRAFTS WERE PROTESTED NO NEW DEVELOPMENTS IN CLOSING OF PEOPLES' BANK AT LAKOTA-HAD $100,000 DEPOSITS. Lakota, N. D., Jan. 29.-No statement as to the condition of the Peoples' State bank at Lakota would be given for publication today by State Bank Examiner Oliver Knudson. Mr. Knudson closed the doors of the bank Thursday morning after having stepped in and taken charge the previous evening. For the present he remains in charge of the institution. It is expected that within a few days something definite as to the prospects of reopening and reorganizing will be given out. Last Public Statement. Cashier F. A. Floren is absent from town and his whereabouts are unknown. although it is presumed he is in the twin cities. No statement of the bank's condition has been made public. The last published statement shows deposits of about $100,000. The capital of the bank is $7,500. The statement last published showed bills payable to the amount of about $15,000 and bills receivable of $40,000. The president of the bank. Mr. Hhaders, has been ill for some time and is still confined to his home. For sometime the affairs of the bank have been entrusted entirely to the hands of Cashier Floren. Recently the bank has been paying its clearance balances with drafts on banks below, and it was when these drafts commenced to come back protested that the doors were ordered closed. It is believed that the bank's resources are ample to cover all liabilities, and that the suspension is due to shortage of cash which it was impossible to obtain on short notice.
4.
February 5, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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Lakota, N. D., Feb: 5.-The sensation that has been expected in connection with the closing of the People's State bank of this city a couple of weeks ago by State Bank Examiner Oliver Knudson, was forthcoming yesterday when F. A. Rahders, the president of the bank, was arrested on a charge of forgery. He waived preliminary hearing and was bound over to the next term of the district court under $3,500 bail, which was furnished. S. A. Floren, the cashier of the bank, will be arrested today on a similar charge and undoubtedly the same commse of procedure will be gone through with, as in the case against Rahders. The amourt of the deficit is $3,500 and both men have turned their property over to the receivers of the bank to make restitution. The offense is that of subscribing to a false statemert which was issued Nov. 16, and under the North Dakota statute this becomes a forgery. Owing to the prominence of the men arrested, the case is attracting considerable interest all over this section of the state.
5.
February 5, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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LAKOTA BANKERS HELD FOR FORGERY PRESIDENT RAHDERS AND CASHIER FLOREN OF CLOSED BANK ARE PLACED UNDER ARREST. SHORTAGE IS $90,000 Lakota, N. D., Feb. 5.-According to a statement given out today by the state bank examiner, the shortage in the accounts of the Peoples' State bank of Lakota will aggregate $90,000. Both Messrs. Rahders and Floren have been placed under $7,500 bonds each. On Monday, it is, said, an application will be made to have a receiver appointed for the defunct institution.
6.
February 9, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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DEPOSITORS OF LAKOTA BANK ACT STATE BANK examiner KNUDSON IS REQUESTED TO REMAIN IN CHARGE PENDING REORGANIZATION. Lakota, N. D., Feb. 9.-Between two and three hundred depositors of the defunct People's State bank of Lakota gathered yesterday at the courthouse to take action regarding the appointment of a. receiver. Contrary to rumors that the meeting would be in the nature of an indigation gathering, there was nothing sensational and the business before the depositors was dispensed with in a very orderly manner. Robert Grant was chosen chairman of the meeting and Charles R. Pettis. sercetary. Bank Examiner Oliver Knudson told of the condition of the bank and stated that the shortage was exactly $98,400.88. Then followed a three hours' discussion of the situation by the depositors. It was generally expected that the meeting would take action toward the election of a receiver but this did not prove to be the case. A resolution was passed, asking that Bank Examiner Knudson remain in charge pending a reorganization. Mr. Knudson thanked the depositors for the confidence shown by their action and will proceed with the investigation. To Assist Examiner. The only other action of the depositors was to appoint a. committee of seven to assist the examiners in their work. The state officials will undoubtedly report in a few days as to the bank's assets when an inventory has been made of the property turned over to the bank by Pres. F. H. Rahders and Cashier S. A. Floren. It is stated on good authority that although the irregulars date back several years, the greater part of the $98,400.88 went to S. A. Floren. Further than this nothing can be officially known until the state officials are willing to give out their report.
7.
February 19, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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EXPERTS AT WORK ON BOOKS Depositors of Defunct Bank at Lakota Urge Appointment of Receiver. Lakota, N. D., Feb. 19.-The executive committee selected by depositors of the defunct People's State bank to look after their interests has engaged the services of J. Gordon Stole, a certifled public accountant of Minneapolis. He arrived yesterday and is engaged in ferreting out the affairs of the bank under the supervision of the state bank examiner's department. A petition signed by a majority of the depositors asks Judge Templeton to appoint G. A. Kellogg of this place receiver.
8.
February 25, 1910
The Pioneer Express
Pembina, ND
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Expert Works on Books. Lakota.-The executive committee selected by depositors of the defunct Peoples' State bank to look after their interests has engaged the services of J. Gordon Stole, a certified public accountant of Minneapolis. He arrived yesterday and is engaged in ferreting out the affairs of the bank under the supervision of the state bank examIner's department. A petition signed by a majority of the depositors asks Judge Templeton to appoint G. A. Kellogg of this place receiver.
9.
March 2, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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RECEIVER FOR LAKOTA BANK. Depositors of Defunct Institution Elect George A. Kellogg. Lakota, N. D., March 2.-Judge C. F. Templeton today appointed George A. Kellogg of this place receiver of the failed People's State bank. Mr. Kellogg was backed by the depositors and is the choice from all the candidates mentioned for the place. The fight against Mr. Kellogg was most bitter. He will enter upon his duties as soon as his bond has been approved by the court. A Forum Want Ad Will Sell It For You
10.
July 17, 1910
Bismarck Daily Tribune
Bismarck, ND
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A SENSATIONAL BANK LOOTING CASE ENDED Grand Forks, N. D., July 16.-The sentence of President Rhaders and cashier Flohren of the Peoples State bank ends one of the sensational cases of bank looting in the state. The Peoples' State bank was organized at Lakota on Nov. 5, 1892, the stockholders being F. A. Rhaders. Merritt and several others closely associated with the former in business. The capital stock of the bank was the very small sum of $7,500. About ten years ago S. A. Floren, then of Minneapolis, came to Lakota and became cashier of the bank. Mr. Merritt withdrawing and removing to another state. Later the health of Mr. Rhaders failed considerably and the business of the bank was largely transacted by Mr. Floren. Upon the closing of the bank in January of this year. action was commenced before Judge Templeton of the district court asking that the institution be dissolved and that it forfeit its charter, and in these proceedings Judge Templeton appointed George A. Kellogg of Lakota as receiver. Immediately after the failure, Mr. Floren was arrested on three separate charges of falsifying the records, and forgery. and Mr. Rhaders was arrested on the charge of forgery, these charges being based upon his statements made to the state banking board. On July 6 additional complaints were filed against Floren, he being charged this time with receiving on three different occassions, three separate deposits after the bank became insolvent. while Mr. Rahders was charged with one offense of a similar nature. Both defendants waived examination and at the opening of the term of the district court this week both entered their pleas of guilty. The failure of the institution was ext-mely disastrous, and the depositors will receive only about twentyfive per cent. The books showed that on the day of closing there should have been $14,467 in cash on hand. when as a matter of fact there was but $2.774. Further examinations of the books showed that the process of looting had been in progress for a period of more than eight years prior to the time its doors were closed; the method by which this was accomplished and concealed was systematically under-stating the liabilities of the bank in the footings as the liability of the bank; the method was exceedingly crude but served its purpose in the absence of supervision by the banking officers and directors. In 1902 the shortage of the bank was first found by the expert accountants, being $2,500; in 1903 it had increased to $5,000; in 1904 to $8,000; in 1905 to $11,000, and in 1907 to $20,0000. The year of 1908 ended with an increased shortage of $10,000, making the total amount of the shortage Jan. 1, 1909, $30,000. From that time forward the increase was rapid; on July 24. 1909, $7,000 appears to have been taken from the vault in the bank; on September 10, another $1,000 was removed; on September 28 $1,000 more
11.
July 21, 1910
The Fargo Forum and Daily Republican
Fargo, ND
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BANKERS TAKEN TO PRISON. F. H. Rahders and S. A. Floren Begin Serving Time in Penitentiary, Lakota, N. D., July 21.-F. H. Rahders, formerly president of the defunct People's State bank of this city, and S. A. Floren, the former cashier, were taken to the state penitentiary at Bismarck last evening to commence serving the sentences given them, Rahders for two and a half years and Floren for seven and a half years. Both the convicted men are bearing up well under the sentences imposed, and it is said no effort will be made at this time to secure a retrial or a parole. Both defendants have been out on bonds, but were taken into custody today. With the criminal prosecution in the case finished it is thought by Receiver George Kellogg that the affairs of the defunct bank can be speedily wound up, and several important items have lately been discovered which will swell the amount saved from the wreck of the bank.
12.
June 19, 1911
The Fargo Forum and Daily Republican
Fargo, ND
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# SUPREME COURT IS HERE TODAY
NORTH DAKOTA COURT HEADED
BY JUDGE SPALDING IS SITTING
IN FARGO TODAY - POLLOCK
SITTING WITH THE COURT AT
THIS TERM.
For the first time in several years the North Dakota supreme court is sitting in Fargo today for the purpose of hearing cases. Two cases were argued today before the court and two more were entered.
The supreme court is headed by Judge B. F. Spalding of Fargo, the acting chief justice. The other judges here are O. J. Fisk, E. T Burke, and E. B. Goss. Judge Morgan, the chief justice of the court is not here to sit with the other jurists. The court being minus one of its members, asked Judge Charles A. Pollock of Fargo to sit In place of the absent member. In the case argued this morning, Judge Burke was ruled out and only four of the jurists will decide the matter.
The case argued this morning was that of Stewart vs. Lyness brought in from Valley City. It deals with a mortgage of some land and the argument was not on the merits of the case but on the validity of the appeal. C. J. Maddux of New Rockford is the attorney for the respondent and Herman Winterer is the attorney for the appellant, although D. S. Ritchie of Valley City acted for Mr. Winterer this morning.
Two other cases were entered this morning. One of these was the township of Davenport vs. the township of Leonard, both of Cass county. V. R. Loval is the attorney for the appellant and Engerud, Holt & Frame, the attorneys for the respondents.
The case of R. M. Pollock vs. W. B. and W. G. Jordan, et al was also entered, but was not argued The matter is one in which Mr. Pollock was the trustee of a store in Griggs county and Johnson & Johnson conducted a sale at the store four months before the fiing of the petition of bankruptcy and put the money on their own account. The trustee held that such was a preference and is contesting the matter. The respondent and plaintiff is his own attorney and Stambaugh & Fowler are the attorneys for the appellants.
This afternoon the case of L. C. Widman vs. George A. Kellogg, as receiver was heard on the ground that Widman is a preferred creditor of the People's State bank of Lakota, of which Kellogg is the receiver. Widman purchased, as agent for the Great Northern, drafts on the bank, which was insolvent. Frick & Kelley of Lakota are the attorneys for the appellant and Bangs aand Robbins are for the respondent.
The court will sit tomorrow. Ben Tillotson of Moorhead, private secretaray of Judge Spalding, is with the court as acting clerk.
13.
August 26, 1911
The Fargo Forum and Daily Republican
Fargo, ND
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DECIDED AGAINST BANK RECEIVER TEMPLETON DECIDED IN FAVOR OF PLAINTIFF IN CASE OF DEFUNCT BANK. Lakota, N. D., Aug. 26.-A decision has just been handed down by Judge Templeton at Grand Forks, N. D., in the case of Simon Schmid of Bartlett, N. D., against the receiver of the defunct Peoples' State Bank of Lakota for the plaintiff in the full amount involved, which was $612. The facts in the case were rather peeuliar and made the matter somewhat complicated. It seems that about a year before the bank failed Mr. Schmid borrowed this amount of money and signed a note for the same which he thought was due to the Peoples' State bank when in fact the note ran to the Bank of Pekin, who were really making the loan through the Peoples' béfore the failure of the Peoples' State bank. When the note was due shortly before the failure of the Peoples' State bank, Mr. Schmid sent them a check for the amount of the note and interest and it afterwards turned out that instead of paying the note the Peoples' State bank sent the check to the Security Bank of Minneapolis and had it placed to their credit there. Then the bank failed and Mr. Schmid found that his check had been cashed and the note unpaid. He then brought action against the receiver and the decision which has just been rendered in his favor makes a judgment for the full amount due him a lien on certain collateral paper that was returned to the receiver from the Security Bank of Minneapolis and this will result in the full amount being paid instead of a few cents on the dollar, which is all that will be paid on the general claims against the defunct bank. John J. Samson of Devils Lake and Scott Rex of Grand Forks appeared for the plaintiff, Mr. Schmid, and Geo. A.- Bangs of Grand Forks for the defendant, the receiver of the Peoples' State Bank of Lakota.
14.
February 7, 1912
Bismarck Daily Tribune
Bismarck, ND
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IN SUPREME COURT. The case of the defunct Peoples State bank at Lakota was argued in supreme court. When that bank became insolvent the people of Nelson county asked that thedeposits of the county held by the bank be made preferred claims which were granted by the district court. Then the receiver appealed to the higher court in order that the claims of individuals might receive some protection. A case will also be argued before the supreme court today to decide some of the differences between Ward and Mountrail counties. Among the attorneys here are George Bangs and Scott Rex of Grand Forks, C. D. Kelly of Lakota, John E. Greene and Dudley L. Nash of Minot.
15.
February 8, 1912
The Fargo Forum and Daily Republican
Fargo, ND
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NEWS NOTES FROM
THE STATE CAPITOL.
# Books for Schools.
Bismarck, N. D., Feb. 8.-Mrs. Budlong, secretary of the library commission, says that the demand for traveling libraries is so far ahead of the supply that arrangements have been made where rural schools can secure an indefinite loan of books taken from the traveling libraries. These books are soiled and worn and not worth recleaning for traveling library purposes, but will be sent to schools wanting them at only the cost of transportation for one way. These books are not to be considered a sample of the traveling libraries, as those books are thoroughly cleaned and shellaced and are sanitary and attractive. There is only a limited number of these books, but it is the only way the schools can be taken care of at present. The books will remain the property of the state, but the schools will have permission to use them until they are entirely worn out.
# In Supreme Court.
The case of the defunct People's State bank at Lakota was argued in supreme court. When that bank became insolvent the people of Nelson county asked that the deposits of the county held by the bank be made preferred claims which were granted by the district court. Then the receiver appealed to the higher court in order that the claims of individuals might receive some protection. A case will also be argued before the supreme court today to decide some of the differences between Ward and Mountrail counties. Among the attorneys here are George Bangs and Scott Rex of Grand Forks, C. D. Kelly of Lakota, John E. Greene and Dudley L. Nash of Minot.
# Militia Inspection Order.
The adjutant general's department has issued a general order providing for the inspection of the state guard. The work will commence March 12, and the Mandan company will be the first inspected. Captain G. H. Williams, Sixteenth infantry, inspector-instructor, who is now stationed at Fargo, will conduct the inspection accompanied by Col. J. H. Fraine. Major Louis Brechemin of the medical corps at Fort Lincoln, accompanied by Major R. R. Steedman, military secretary to the governor, will inspect the hospital corps at Lisbon at a date not yet given in the order.
# Land Collections.
The largest amount of collections ever received for any one month by the state land department was for the month of December, 1911. The total amount of collections for that month, consisting of principal and interest on farm loans, and principal and interest and rentals on school lands amounts to $705,762.85. On farm loans in all the counties there was only $4,682 principal paid, but $12,-
16.
February 29, 1912
The Fargo Forum and Daily Republican
Fargo, ND
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NELSON CO. HAS PREFERRED CLAIM RECEIVER OF DEFUNCT BANK PRECLUDED FROM APPEALING FROM DECISION. Lakota, N. D., Feb. 29.-Under the decision of the supreme court, Receiver George W. Kellogg of the People's State bank of Lakota, which failed two years ago, has no right to appeal from the order made by Judge Templeton under which Nelson county is adjudged a prior claimant as against other depositors. The county of Nelson had a deposit of $10,000 in the institution, and the judge has ordered that that amount shall be paid before other claims of depositors are considered. As a result of the supreme court's decision refusing to entertain an appeal from the receiver, action probably will be started by individual depositors. The court holds that the receiver has no authority to take sides against any depositor, having no personal interest in the estate.
17.
April 3, 1913
The Evening Times
Grand Forks, ND
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NOTICE OF SALE. Notice is hereby given that in pursuance of an order of the District Court of the First Judicial District of the State of North Dakota in and for the County of Nelson, the undersigned Receiver of the Peoples State Bank of Lakota, N. D., will sell at public auction, at the City of Lakota, N. D., on April 21st, 1913, at two o'clock, P. M., of said day, all the remaining assets of the said Peoples State Bank particularly described as follows: