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REPORTS ON O'BRIEN Committee Finds State Lost Money Because of Former Treasurer's Acts BY STAFF CORRESPONDENT Pierre, Feb. and diligent of persons guilty of violations of the banking of these many urged by the legislative banking completed today and filed the leg. loans to loans authority the directors and substituof by bankers in the and in forgery alteration ords and the report There were few presfar made, because sympathy the jury, tactless sympathy the prosecuting attorney, because the states young and Inexthe skilled counsel the banking department falled to supply data. Encouraged Violations result and prosecution has encouraged the violators of these banking laws to stand trial," report sembled regard the future use general and bank and cases state's have failed and those in office and punishment of those whose terms expired recom- Books Never Audited The fund, started had audited, An audit and shows that the Stock Growers Bank of Fort allowed banking department declare an eight per cent in 1918, when the debad shape in and not materially the committee found that the Bennett bank Martin failed early 1924, that an examiners report "In the spring 1923" showed that nothing done by the was by of of high the bank, of exdeposits the state treasurer, W. Brien, and causes. the commission this bank. an unsecured excess loan therein." Small for the department and difficulty capable employes crippled the superintendent, and follow on examiner's reports was because of the report with the dling of the bank problem by John ning and guaranty "These performed great work, Speculations Are Cited Speculation of the principal failure of banks, There condemnation of the practice of examiners banks free hand in ministration without approval depositors selected, employes Widely fees for attorneys torney spent "some seven office and little time the office some amounting and charged He obtained circuit at the pay all from the the Branson bank Mitchell might say therewith that from this bank will pay all depositors Take Rap at Hoese William ident the and Sloux Falls, now under grand jury Sloux Falls Trust and Savings bank" an which "savors looks bad. and It not inclined to find the Ings bank of Sioux and that his shipping to sight upon the practice the for the firm of the that bill value lading attached to their drafts but deposited the the Frank commission that check the money he that would divert the shipment to sight would be dishonored the The would be out charging to the money and his account carried cash this practice continued for Frank indebted the bank for like the that of the bank worthless officers that would appear as that said could easily been by examiner examsaid bank while was In (Continued on page two. column six)
