The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-02-27

ines OF tne joint legislative committee
appointed to investigate conditions
existing in the office of the state treas
urer were laid before the two houses
this afternoon. The report, covering
period of eight years, is very thor
ough and the committee has found
during the entire period methods that
are subject to criticism.
During the first portion of the
period excess bank balances or excess
balances Of cash on hand are shown
up, and the state is shown to be out
large amount Of interest by reason
of such handling of the cash. The
work In the Office during the last two
years under the administration of G.
l.. Bfckford Is covered more compre-
hensively than the previous terms,
and numerous irregularities are
brought to light. In its recommends
tions the committee sets forth the
following:
"First-That only one report from
the state board of auditors covering
the examinations Of the state treas
urer's Office is on file with the gov
ernor, although the law requires two
such examinations annually and this
one report was only fled because of
the complaint Of the surety company
bonding Mr.. Bickford.
/ "Second-That section 231 of the
revised codes of 1906 requiring such
biennial examinations of the treasur-
er's office be amended to allow the
board of auditors to employ an ex-
pert accountant to assist the board
to make such examinations, it being
pointed out that very often members
of the board are not expert account
ants and that the duties Of the respec-
tive offices are such that only limit
ed space Of time can be spared for
this purpose.
"Third-That the state examiners
office is crowded with work and it is
difficult to secure assistance from
that office for this purpose.
"Fourth-That an examination of
the treasurer's Office in order to be
carried on with any degree of thor
oughness, required good deal Of
work and knowledge Of accounting.
"Ntth-That under the present sys-
I tenn OF accounting tor the interest
paid on bonds hsid by the state.it ap-
pears that there is no check on the
treasurer by which credit for the
money 80 received is established, ex-
cept to examine each and every bond
and determine whether the coupons
clipped have been properly credited.
"Sixth-That record should be
kept by the state treasurer Of trust
bonds deposited in his Office as there
is none such kept at the present time.
Excess balances shown in the Fargo
and Bismarck banks were temperor-
ary and came by reason of their being
used in cases where large sums were
received by the state"
In conclusion the committee points
out the matters into which 1t has been
unable to inquire because of lack OF
time. Believing that these matters
should be further investigated and de-
string to be relieved from any further
duties in the matter the committee
recommends that the legislative as
sembly by appropriate resolution, pro-
vide for the appointment OF commit
tee to take up this investigation, CIV
ing 1t such power and authority as
will enable it to carry on the work
and binding the state for the expense
incurred thereby.
The members of this committee ap-
pointed early in this session are Sen
ators Allen and Elken, and Repre-
sentatives Norhein, Hawkinson and
Ployhar.
The committee states that it was
unable to make a complete study OF
the bonds of the different state de-
positories for the period mentioned
in such a short space Of time, nor
was 1t possible to. ascertain the daily
average balance Of each bank during
he eight year period in question
There are reports on hand covering
the years of 1906 to 1910, inclusive,
but the state examiner was unable
to find any reports covering the de-
posits in 1904 and 1905.
According to the report of deposits
lin the several state repositories on
July s, 1906, there were '154 state de-
lpositories, with eight banks In the
state, not regularly designated de-
lpositories. that were carrying de-
Iposits, amounting all told to about
S15,0 600. Eighty-three banks were
carrying deposits in excess Of the
amount to which they had been
designated, with $4,000 excess bal
ance in the First National bank OF
Fargo as the largest OF these. that
institution having a total deposit OF
SSs,39s.2o as against q designation
for $4,000. In the First National
bank Of Rugby, since failed, there
was s19,951.o3 on deposit with only
a $1,000 bond. :.
on the Jan. 2. 1907, report. It
shows that there were 1872 regularly
designated state repositories, sixty
four Of which were carrying excess
lbalahces, with twelve non-designated
banks carrying state money. In the
non-designated banks there was then
a total Of about $4,000. In the First
National bank of Fargo there was q
balance Of $92,971.02 as against a
deslgntion for $4,000. while the
First National bank Of Bismarck had
$3.50, 900 on deposit with a 100000
designation. The First National
bank of Rugby had balance Of $34.-
03e.11, with $4,000 designated.
4 while the Barton State bank. also