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Northwestern News rangements to secure assistance from Twin City bankers for emergency purposes. In checking over the paper OWNER BANK held by the bank, Attorney Bagley states, the directors discovered that some of the notes held were forged. DEPOSITORS The discovery was reported to the chief national bank examiner and Harry Yeager, field representative for the Federal Reserve bank of MinneDEEMED SAFE apolis, was sent to Towner, December 17, to invesitgate the matter. On his findings, the board of directors, acting on the suggestions of the chief Cashier Free Under national bank examiner, closed the bank Monday afternoon and the bank Bonds; Offers Private examiner now in charge of the bank was ordered here. Property, it is Said. Mr. Patterson arrived in Towner Tuesday afternoon and after conowner, N. D., Dec. 23.-Henry H. ferring with the directors began vice president and cashier of checking up the institution. He had First National bank of Towner, not made sufficient progress early towas arrested Tuesday afternoon day to make any statements concerncharge of forgery, preferred ing the bank. He intimated that it him by Attorney Horace Bagwill require several days to complete of Towner. attorney for the board his work. The bank will be placed in directors of the bank, waived prepermanent receivership when Patterhearing when arraigned beson's report is submitted and in all County Judge T. C. Ellis of probability it will require an extendand was bound over to the ed period. to liquidate the bank. the court. His bonds, fixed at $5,financial situation in this section bewere furnished by F. J. Roble, ing such that forced collections of of court for McHenry county, outstanding notes would not bring a W.F. Sommerdorf of Towner. proper financial return. "he bank was closed Monday afterAt a conference of Twin City bankby the board of directors, acting ers, officers of the Federal Reserve instructions from Fred L Brown bank and T. L. Beiseker in MinneMinneapolis. chief national bank apolis on Monday it was decided that miner and B. F. Patterson of Minnecessary credit was available for orpolis, national bank examiner, is dinary needs but in as much as the in charge of the institution. Any national bank examiner had uncoverto be taken against Bergh in ed irregularities the usual procedure federal courts will depend on acof closing the bank was permitted to taken by U. S. District Attorney take its course. dreth of Fargo when the report of New Bank Planned. Patterson is filed with the district Towner directors of the institution when the task of checking have announced their intention of or institution is completed. ganizing a new national bank for Large Sum Involved. Towner and taking over the assets Bergh, it is alleged. included beand liabilities of the closed institution. 20 and 30 forged notes in the The First National bank of Towner assets. The aggregate amount was the oldest national bank in Mcresented by the alleged forged inHenry county. It was organized in iments is reported to be between 1905 with $25,000 capital and $5,000 and $50.000. According to surplus. Bergh became interested in orney Bagley. who was in charge the institution in 1915 when he purthe bank for a week prior to its chased one-third of the stock in the a large part of the alleged bank from J. R. Carley. now of Minnotes were used by Bergh to neapolis, then with the First National individual indebtedness of the bank of Grand Forks and A. I. which in several instances exHunter. president of the First Nathe $3,000 limit the bank was tional bank of Grand Forks. to extend to any one IndiAttorney Bagley stated last night and between $10,000 and $15.that Bergh had expressed his willingcannot be accounted for. It is ness to turn over all of his property. that Bergh used this amount valued at about $10,000, to enable depersonal business ventures. He is positors to secure their money. It is erested in sheep raising and farmbelieved that funds Bergh is alleged and. it is reported, these operato have diverted to his own use will have not been a financial sucnot exceed that amount to any great extent. Attorney Bagley stated. There Directors of the bank, including T. is now due the bank approximately Beisker of Fessenden, president; $25,000 in accrued interest all of B. Vercilya. Towner abstractor; J. which may be realized through careWisck of. Towner, automobile dealful management of the affairs of the and G. K. Osjard of Towner, sherinstitution, it was stated. There is no of McHenry county. became guarantee fund to protect depositors concerning the management in national banks as in the case of the bank November 22 when a nastate banks in this state but stockbank examiner, who had exholders in a national bank can be asthe institution, submitted his sessed to protect depositors. to the board. Attorney Bag-
