Bank story part 3

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Bank story part 3 - HIS WAS MERELY AGENT OF 40URGEN OL8EN, WHO...
HIS WAS MERELY AGENT OF 40URGEN OL8EN, WHO OWNED CHAIN OF BANKS. EXAMINING RELATIONS OF LATTER TO INSTITUTION Paper from North Dakota that He Sent to His Banks In Illinois Being Scrutinized. Springfield, III., Oct. 18.—The Union State bank at Hanover and ti'.e Bardoiph State bank will be the only Illinois banking institutions required to close as the result of the operations of Jourgen Olsen, North Dakota financier, State Auditor Andrew Russel has announced. , Olsen', whose operations are said to have impaired the asets in banks in North Dakota, Illinois, Wisconsin and Indiana, also was interested in the People's bank at Colchester and the Winona bank, but stockholders of both institutions will make good their losses. The auditor's office announced the money was secured from the Illinois banks on worthless notes that probably will total 1200,00. Olsen sent the worthless paper to the Illinois institutions from Minneapolis, the audtor's office says. The state examiners who are scrutinizing the affairs of the Union State Bank of Hanover, Jo Daviess county, and the Bardoiph State bank at Bardoiph, 111., are viewing with interests the relations of the. principal owner, Jourgen Olsen of Mlnot, N. D., to these institutions. According to the examiners, neither Lieo N. Koepland, cashier Of the first-named bank, nor E. J. Woolever, cashier of the Bardoiph bank, had any interest in their respective concerns, but were placed in' their positions as agents of Olscn. Koep- land. however, got himself In bad by runping away. • He is now in the Jo Daviess county jail at Galena under a charge pf embezzlement. " • A *'<>•• Olsen> pperatlons .:.. iC if.Is''«Hd by the examiners, had ( sent. farm paper from the north- we.^,t,'"into':,:th,B" -. bonks just closed and into' bo^r'at • ^Colchester and W«nona, 111.,'where, it ^fB^declared, local stockholders will make up the :}(5«ses-,and the banks Will remain opeiri." 'It is not known how much Of the paper said to have been sent by ,6lscn to the banks in Illinois is Questionable. At previous examinations these notes, mostly covering farm loans, .had been regarded as good. The 'Hanover Union State bank is said to have $36,000 In paper from North Dakota. It is, not known just how much of this has been questioned by the examiners. $200,000 Paper Bod? It ia said the'bank examiners have founds total of about $200,000 in worthless or doubtful paper in the banks just closed and in the banks where the stockholders have agreed to make good the losses and continue the banks in operation. Olsen Is said to have banks in North Dakota, Minnesota, Indiana, and Michigan, He was developing into a financier in farm paper. His first success is said to have been in North Dakota, and with profits made there he branched out Into Illinois and other states. So far no statement has been obtained from him aa to whether the notes that are questioned or said to be worthless have become so because of shrinkage in farm values or were not proper securities when sent from his other institutions into his Illinois banks. He is a heavy stockholder in the two banks just closed. Estimates Hanover Shortage W. W. Calhoun, during whose examination of the Hanover Union State bank Koepland ran away, declared today that the shortage was about $135,000. When arrested, Koepland had only • smalt amount of money, and it was not known what had become of $72,000 In bonds that had been placed in the Hanover bank for aafekeepng. Some persons suggested that Koepland had buried them somewhere. Mr. Calhoun does not believe that Koepland had associates in the work of taking the $180,000 which ht is charged with embezzling. Koepland's Disappearance Bank examiners of Illinois are making a general inspection of all the banks in the state of Illinois. Last Tuesday, State Examiner Calhoun came to Hanover and started work on Koepland's books. Koepland was with Calhoun at the time. Tuesday afternoon the men made a trip to Elizabeth, 111. It was then that Koepland disappeared. Wednesday morning the cashier did not show up. Officials of the bank then became suspicious. As they delved closer into the accounts, shortage was discovered. A country wide search .was then started for Koepland. How Arrest Was Made Koepland roamed about the country in an automobile. Sunday be was seen about ihe streets of Savanna. He later went to a garage where he purchased four extra tlree, saying that he expected to make s, long trip. He had no cash and gave the garage keeper a check., drawn upon the Hanover bank. He then disappeared. Later he was seen boardjng a train at Savanna. The sheriff was notified and V Davis Junction Koepland was taken from the train. Koepland was then taken to Savanna, where be was to be locked DIFFICULTIES for tfe« njfbt. " Of Haaovor oOciala TWO PARLIAMENTS MEET WHILE WIRTH GOVERNMENT ; IS NEAR FALL. (By United Presa Leased Wire) London, Oct. IS.—Two European parliaments, the British and French were to assemble today while the Kov-rnment of a third power, Ger many, was expected to fall. Lloyd George, Aristlde Brland and Chancellor Wirth of Germany found themselves faced with tremendous difficulties. Tasks of Allied Premiers The British premier was expected to make a most important statement in the house of commons on the subject of tho Washington confer ence. He had postponed discussion of unemployment, Britain's most important domestic problem, until to morrow. Tha Irish negotiations had not progressed sufficiently to enable Lloyd George to make more thanra brief statement that the conference had opened. In Paris, Premier Brland faced the re-assembled French parliament with probably the hardest task of his career before him. There were nearly 50 interpellations awaiting his appearance, questions which cov ered every angle of home and for 1 eign policy. A concentrated effort to unseat the prime minister was believed possible. If the attempt succeeds ti will mean entire re-arrangement of the French personnel for the Washington limitation of arms conference, Wirth In Thorniest Position The fall of the Wirth government was predicted for today by competent observers of German politics. Two factors made the downfall of the present government seem likely; 1. The complete collapse of the mark which fell to nearly 200 to the dollar today. 3. The defeat of the aocialiats in Berlin's municipal elections where the bourgeois parties gained a majority, ESCAPED LUNATIC HOLDS STATEJOSSE AT BAY (By Dnlted PreiTxieaied Wire) Ithaca, Mich., Oct. 18.—Frank Parlovttch, escaped inmate of the Traverse City Hospital, today held 4 posse of state troopers and deputy sheriffs at bay. Parlovitch escaped from the hospital two weeks ago. He waa located at his home, six miles from here, by authorities. Fears that the man was armed caused troopers to lay siege to the house. suggested that the prisoner should not be brought to Hanover because of the feeling against the young cashier there. The sheriff then brought the prisoner to Galena, 111., where he was placed in the Jo Daviess county jail. It was expected that a signed warrant would be forthcoming within the next 34 hours. Owns Many Ranks Olsen i* said to own seventeen banks in North Dakota alone. Some attribute b,ts troubles'to the general tt ttat «»t*

Clipped from
  1. Freeport Journal-Standard,
  2. 18 Oct 1921, Tue,
  3. Page 1

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