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O. E. Lofthus

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O. E. Lofthus
North Dakota State Examiner
In office
1919–1921
GovernorLynn Frazier
Preceded byJames R. Waters
Succeeded byGilbert Semingson
Personal details
Born(1868-07-07)July 7, 1868
Nicollet County, Minnesota
DiedJanuary 16, 1960(1960-01-16) (aged 91)
Los Angeles, California
Political partyNonpartisan League
Other political
affiliations		Socialist
Spouse
Christine Evenson
​
​
(m. 1893; died 1935)​

O. E. Lofthus (July 7, 1868 – January 16, 1960) was a teacher, banker, and politician who served as the North Dakota state bank examiner from 1919 to 1921.

Biography

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Early years

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Ole E. Lofthus was born on July 7, 1868, in Nicollet County, Minnesota. He was born to Norwegian parents, Ole O. Lofthus and Albertina (Beck) Lofthus. His father was a veteran of the Civil War. O. E. Lofthus grew up and attended school in Minnesota. He later became a schoolteacher and farmer for several years.[1][2]

Sometime between 1890 and 1900, Lofthus moved to North Dakota. In 1907, he opened the First State Bank of Kloten, North Dakota, and worked as the bank's cashier until 1919.[1] He also operated a farm near Kloten.[2]

Politics

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Lofthus was a believer in progressivism,[1] and in the early 1900s, he became involved in the Socialist Party of Minnesota. In 1904, he unsuccessfully ran as the Socialist candidate for Lieutenant Governor of Minnesota. In 1906, he unsuccessfully ran as the Socialist candidate for Governor of Minnesota. In both of these elections, due to a state law restricting the use of the word "Socialist" on ballots, he was listed under the "Public Ownership Party."[3][4][5][6]

At some point after his foray into Minnesota politics, he turned his attention to politics in North Dakota. In 1914, he ran unsuccessfully for the North Dakota Senate, running as a candidate in Nelson County.[6] He became involved with the Socialist Party of North Dakota and ran as their candidate for North Dakota State Treasurer in 1916.[7] Lofthus came in a distant third behind incumbent John Steen, running as a Republican, and Patrick M. Casey, running as the Nonpartisan League (NPL) candidate[8] under the Democratic Party.[7]

Around this time, the mid to late 1910s, saw the rise of the NPL in the state. Many members of the North Dakota Socialist Party left to join the NPL, Lofthus among them. The NPL had great appeal to many residents of North Dakota, and its membership and influence grew quickly. By 1919, the NPL had control over all three branches of state government.[9][10]

North Dakota State Examiner

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In June 1919, NPL-Governor Lynn Frazier appointed Lofthus to be State Examiner, or state bank examiner.[1][6] He replaced the outgoing James R. Waters, who became the first manager of the newly established Bank of North Dakota.[11]

Only a few months after his appointment, Lofthus, as State Examiner, became engrossed with the issue over the Scandinavian American Bank in Fargo, which was one of the many controversies facing the NPL. The bank, which first opened in early 1911,[12] was purchased by the NPL in October 1917.[13][14][15] Allegedly, the bank was purchased by Porter Kimball, a former state legislator and wealthy farmer, and John J. Hastings, a former secretary of the NPL,[13] at the direction of NPL leaders A. C. Townley and William Lemke.[16] Lemke would later publicly deny this claim.[17] The Scandinavian American Bank would be one of many banks that the NPL would eventually control.[18]

Toward the end of September 1919, Lofthus was sent by the State Banking Board to Florida to investigate the U.S. Sisal Trust Company, which was a business venture with ties to the NPL.[19] The State Banking Board consisted of William Langer (Attorney General), Thomas Hall (Secretary of State), and Lynn Frazier (Governor).[19] Langer and Hall, making up a majority of the board, had been growing dissatisfied with the NPL's leadership.[20][21]

Langer and Hall, already suspicious of the NPL and its banking practices because of previous issues, used the power of the State Banking Board to investigate the Scandinavian American Bank.[18][19] In April 1919, Deputy Examiner P. E. Halldorson reviewed the bank and warned that it was in serious condition.[19]

Also at the end of September 1919, coincidentally when Lofthus was temporary out of the state, Halldorson and Assistant Attorney General Albert E. Sheets arrived in Fargo to conduct another review of the bank. They concluded the bank was not financially stable and had excessive loans.[19][16] The State Banking Board soon called a meeting and declared the bank insolvent, with Frazier voting against closing the bank and Langer and Hall voting for it.[22][23] Halldorson was named temporarily receiver.[19]

Lofthus quickly returned to the state and appealed, along with William Lemke, to the North Dakota Supreme Court so Lofthus could be put in charge of the bank.[19][24] In early October 1919, the Supreme Court sided with Lofthus, and he took control from Halldorson.[25] Lofthus would later fire Halldorson for his role in closing the bank.[26]

Lofthus and other allies of the NPL disregarded the report from Halldorson and Sheets and conducted their own investigation. They concluded there were some excessive loans, but the bank was financially stable and should never have been declared insolvent.[19][27] The pro-NPL press declared Langer and Hall tried to destroy the bank for political reasons.[28]

The bank would be reopened in late October 1919.[19] However, the bank closed permanently in February 1921.[29][30] The scandal surrounding the bank would drag on for years, and many NPL members, state officials, and bank employees were indicted or called to testify in various legislative hearings.[31][32] Lofthus was indicted on charges of falsifying reports and perjury, but the charges would be dismissed.[33][34][35][36]

By the end of 1919, scandals and infighting had weakened the NPL.[9][37] In October 1921, the opponents of the NPL, particularly the Independent Voters Association (IVA), held a successful recall election that removed all members of the Industrial Commission, all of whom were NPL members (Gov. Frazier, Attorney General Lemke, and Commissioner of Agriculture and Labor Hagan).[9][38][39]

Right before the new administration was set to take over the state, Lofthus resigned, and Gov. Frazier appointed Gilbert Semingson to replace him. It was largely assumed that Lofthus resigned before the newly elected governor, R. A. Nestos could remove him from office.[40][41]

Later years

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In the years following his resignation, Lofthus lived in Minnesota for many years (in Hawley and Minneapolis).[42][43] He eventually moved to Los Angeles, California, where he remained until his death on January 16, 1960.[44][45]

Personal life

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On April 5, 1893, O. E. Lofthus married Christine (or Christena) Evenson in Big Stone County, Minnesota. The couple had four children: Owen, Floyd, Adeline, and Irene.[46][1]

See also

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[edit]
Political offices
Preceded by
James R. Waters
 North Dakota State Examiner
1919–1921 		Succeeded by
Gilbert Semingson

References

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  1. ^ a b c d e North Dakota (1919). North Dakota Blue Book. Bismarck, N.D. p. 566.{{cite book}}: CS1 maint: location missing publisher (link)
  2. ^ a b Jervell, Hans (1916). Nordmænd og norske hjem i Amerika [Norwegians and Norwegian Homes in America] (in Norwegian). Fargo, N.D.: Hans Jervell Publishing Company. p. 126. OCLC 6094200. Archived from the original on 2023-06-23.
  3. ^ Minnesota (1905). "Election Returns for State Officers, 1904" (PDF). Minnesota Legislative Manual. Archived (PDF) from the original on 2023-05-21. Retrieved 2023-06-23.
  4. ^ Minnesota (1907). "Election Returns for State Officers, 1906" (PDF). Minnesota Legislative Manual. Archived (PDF) from the original on 2023-05-17. Retrieved 2023-06-23.
  5. ^ "Our Campaigns - MN Governor Race - Nov 06, 1906". www.ourcampaigns.com. Archived from the original on 2020-08-21. Retrieved 2023-06-23.
  6. ^ a b c Tittemore, James N.; Vissers, Aloysius Anthony (1922). The Non-partisan League vs. the home. The Library of Congress. Milwaukee: Burdick-Allen Co. p. 31. LCCN 22015297. OCLC 5670764.
  7. ^ a b North Dakota (1916). "Party Votes, General Election, November 7, 1916" (PDF). North Dakota Secretary of State. Archived (PDF) from the original on 2022-11-12. Retrieved 2023-04-11.
  8. ^ Chronicling America (1916-10-26). "Casey for State Treasurer". The nonpartisan leader. p. 5. ISSN 2469-3529. Retrieved 2023-06-23.
  9. ^ a b c State Historical Society of North Dakota. "Nonpartisan League – Summary of North Dakota History". www.history.nd.gov. Archived from the original on 2022-09-02. Retrieved 2022-10-31.
  10. ^ State Historical Society of North Dakota. "Section 3: The Nonpartisan League in Control of State Government, 1917". North Dakota Studies. Archived from the original on 2023-04-21. Retrieved 2023-06-23.
  11. ^ Chronicling America (1919-06-26). "O. E. Lofthus appointed as state bank examiner". Sioux County pioneer. p. 6. ISSN 2475-9759. Retrieved 2023-06-23.
  12. ^ Chronicling America (1910-12-31). "Announcement! On January 3rd the Scandinavian American Bank will open its doors and we respectfully solicit your business". The Fargo forum and daily republican. p. 6. ISSN 2688-9447. Retrieved 2023-06-23.
  13. ^ a b Chronicling America (1917-10-20). "Scandinavian American to be Nonparty Bank". The Fargo forum and daily republican. p. 2. ISSN 2688-9447. Retrieved 2023-06-23.
  14. ^ Chronicling America (1917-10-22). "League taking over North Dakota banks". The Bismarck tribune. p. 8. ISSN 2330-5967. Retrieved 2023-07-11.
  15. ^ Hastings, John J. (1917-11-08). "To my friends in the Northwest". The nonpartisan leader. p. 23. ISSN 2469-3529. Retrieved 2023-07-11.
  16. ^ a b Tostlebe, Alvin S. (1924). The Bank of North Dakota: an experiment in agrarian banking. Columbia studies in the social sciences; no. 254-255. New York: Columbia University. pp. 97–104. OCLC 4253898.
  17. ^ Chronicling America (1921-06-30). "Townley testimony to be missing at Brinton hearing (continued from page 1)". Jamestown weekly alert. p. 2. ISSN 2332-9998. Retrieved 2023-07-11.
  18. ^ a b Langer, William (1920). The Nonpartisan league; its birth, activities and leaders. Mandan, N. D.: Morton County farmers press. pp. 67–87. OCLC 6178604.
  19. ^ a b c d e f g h i Morlan, Robert Loren (1955). "Political prairie fire : the Nonpartisan League, 1915-1922". www.worldcat.org. pp. 263–266. OCLC 230685. Retrieved 2023-06-23.
  20. ^ State Historical Society of North Dakota. "Section 3: William Langer". North Dakota Studies. Archived from the original on 2022-10-31. Retrieved 2022-10-31.
  21. ^ Robinson, Elwyn (2017-09-01). "History of North Dakota". Open Educational Resources: 333, 342–344. doi:10.31356/oers001.
  22. ^ Chronicling America (1919-10-02). "Receiver for Fargo Scan.-American Bank". The Ward County independent. p. 13. ISSN 2333-0031. Retrieved 2023-06-23.
  23. ^ Chronicling America (1919-10-02). "League bank with $734,000 in excess loans closed by board". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  24. ^ Chronicling America (1919-10-07). "Lemke asks Supreme Court to restrain banking board". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  25. ^ Chronicling America (1919-10-08). "Supreme Court dissolves banking board receivership; Fargo bank restored to Examiner Lofthus". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  26. ^ Chronicling America (1919-10-27). "Old member of state examiner staff is fired: O. E. Lofthus dismisses Deputy Halldorson because of report on bank". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-30.
  27. ^ Chronicling America (1919-10-27). "Examiners find Fargo bank solvent: Langer's assistant attempts to dodge issue when confronted by facts in hearing before North Dakota Supreme Court". The nonpartisan leader. p. 5. ISSN 2469-3529. Retrieved 2023-06-30.
  28. ^ Chronicling America (1919-10-20). "Would ruin bank for political gain". The nonpartisan leader. p. 4. ISSN 2469-3529. Retrieved 2023-06-23.
  29. ^ Chronicling America (1921-02-14). "Scandinavian-American Bank of Fargo closed because of inability to pay liabilities". Grand Forks herald. p. 1. ISSN 2379-1209. Retrieved 2023-06-23.
  30. ^ Chronicling America (1921-02-14). "Fargo league bank closed its doors today". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  31. ^ Chronicling America (1921-02-15). "Lofthus cornered, admits loans to Kloten bank went to League". Grand Forks herald. p. 1. ISSN 2379-1209. Retrieved 2023-06-23.
  32. ^ Chronicling America (1921-02-15). "Name legislators who have given notes to banks which turned them into state bank". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  33. ^ Chronicling America (1922-03-13). "Two warrants issued in bank deal: Thatcher and Lofthus under falsity charge". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  34. ^ Chronicling America (1922-05-23). "Lofthus 13th indicted man in Fargo case". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  35. ^ Chronicling America (1923-05-12). "Ask court review of bank cases". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  36. ^ Chronicling America (1923-07-25). "Bank indictment writ refused". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  37. ^ "Section 2: End of the NPL | 8th Grade North Dakota Studies". North Dakota Studies Grade 4 Curriculum. Retrieved 2023-04-28.
  38. ^ "Section 3: Recall | 8th Grade North Dakota Studies". North Dakota Studies Grade 4 Curriculum. Retrieved 2023-04-28.
  39. ^ North Dakota (1921). "Recall Election October 28, 1921: Votes for Governor, Attorney General and Commissioner of Agriculture and Labor" (PDF). North Dakota Secretary of State. Archived (PDF) from the original on 2022-11-12. Retrieved 2023-05-01.
  40. ^ Chronicling America (1921-11-23). "O. E. Lofthus resigns". The Bismarck tribune. p. 1. ISSN 2330-5967. Retrieved 2023-06-23.
  41. ^ Chronicling America (1921-12-01). "The Lofthus resignation". Emmons County record. p. 1. ISSN 2475-9783. Retrieved 2023-06-23.
  42. ^ 1930 United States Federal Census. Hawley, Clay Co., Minnesota; Page: 6B; Enumeration District: 0020; FHL microfilm: 2340818.
  43. ^ 1940 United States Federal Census. Minneapolis, Hennepin Co., Minnesota; Roll: m-t0627-01979; Page: 10A; Enumeration District: 89-115.
  44. ^ 1950 United States Federal Census. Records of the Bureau of the Census, 1790-2007; Record Group Number: 29; Residence Date: 1950; Home in 1950: Los Angeles, Los Angeles, California; Roll: 3397; Sheet Number: 18; Enumeration District: 66-2588.
  45. ^ Ole E Lofthus in the California, U.S., Death Index, 1940-1997. Los Angeles; Date: 16 Jan 1960.
  46. ^ "BOOK B, PAGE 154: LOFTHUS, OLE E.; EVENSEN, CHRISTENA". Minnesota Official Marriage System (MOMS). Retrieved 2023-06-23.
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