The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-06-29
BIG SENSATION
SPRUNG TODAY
BY THE EPR0BERS
Declares That Over $4,000 Was
Given For Maintaining
Excess Balances
CIVIC ACTION Threatened
BY RECEIVERS OF TWO BANKS
Demand Made for Cash was Denied
State of North Dakota Also
Shown to Have Lost $4,000
Through Method Of Handling the
Moneys in Treasury Office.

rVFmor 0CaC0 treasurer peterson OF
North Dakota is charged by the legis-
lative investigation committee that
conducted an inquiry into the meth
DDS Of administering the affairs Of
the state treasury with having re-
ceived from Andy Jones, the convict
ed Rugby banker, a bonus Of $4,720
tor maintaining balances in excess Of
those designated in the Barton State
bank at Barton, N. D., and the First
National bank Of Rugby, N. D., and
both Of which banks failed.
That Is the most sensational fea-
ture of the report of the legislative
committee that was appointed in the
closing hours of the last assembly,
and which committee was composed
of Representatives Ployhar of Barnes
and Robinson of Billings and Senator
Allen of Emmons county.
The report was placed in the hands
OF the governor yesterday afternoon,
while Its contents were made public
today by Representative PIoyhar,
secretary Of the committee.
AS consequence Of the failure of
the two banks in January, 1909, the
state is out about $4,000 now, having
secured $4,000 judgment against a
bonding company already. Receiver
Swords Of the First National bank
and Dahoney Of the Barton bank have
already retained attorneys to secure
the return from the former state
treasurer Of the bonus that he is al
legged to have received, and civil ac-
tion may be instituted.
Excessive Balances.
In the report that has been sub
mftted 1t is also indicated that the
state has lost total Of about $4,000
through the handling of funds in the
state treasury during the eight year
period that was covered ybby the in
vestigadon. This loss comes through
interest that should have been gained
but which was lost by reason Of
maintaining excessive balances in the
Office. During the McMilen adminis-
tration these balances were main
tained at daily average for one year
Of $271 ,806. The highest Peterson
daily average is $4,000, while the
highest Bickford daily cash balance
was $93.2s0 for one year.
The report that has been filed is
very comprehensive. Summarizing
the conduct Of affairs in the treas
ury during the period covered. It
shows that certain collections against
Stutsman county amounting to $95
were overlooked in 1908; that Rich
land county owed the state s525.05.
II also shows that there had been a
remittance Of 424O from the perma-
nent school fund which Treasurer D.
H Mcmillan had failed to credit, and
th4e amount was paid to the state by
MI. MCMILLAN June IA. Under the
same head an entry of $65 is made
against Peterson and $28.S3 against
Hchord.
Irregularities Many.
The loss to the state during the
eight year period In the handling of
the school fund is Indicated at So
468.S7. while the loss through the dill
Atofy turning over Of fees by the Of
fee OF commissioner Of insurance IA
fixed at $1,000. Refunds Of money on
illegal payment Of exchange through
the same Office is fixed at $3,06s.44.
On cash balances. 1t is charged that
the state lost over $1,000 during Nc
Millan's administration by reason of
excessive balances on hand; during.
lPeterson's administration loss Of
$1,000. and during the Bicsford ad-
ministration loss Of about $4,000.
Several banks were examined with
reference to their dealings with the
state treasury department, only the
First National bank Of Mandan refus-
ing to permit such examination.
Losses by Years.
The losses by years from the in
forest on excessive balances In the
ONCE Of the state treasurer are as,]
follows:
D. H. Mcmillan Administration
For year Of 1903, daily cash bal
ance was $271 1,906, resulting in loss
Of $S,167.18 in interest.