Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-03-02

the law specifically states that he shall
reside at the capital OF the state.
We are OF the opinion that the increase
of salary was made for the purpose OF
compensating the officials named for
whatever inconvenience was incurred by
change Of residence and III loubtedly
residece was required at the capital Of
the state in order that the office should
receive the personal attention of such
official and also to enhance the dignity
and Importance of the office and of the
capital OF the state as far as possible
by having state officials make their resi-
dence at the capital of the state, actually
and in fact. during their term of afllcc.
Further investigation has been a'ong
the lines and recommendations suggested
by former committees n we find That
the committee appointed by the Eleventh
Legislative Assembly with Mr.. Roberts
as chairman went very thoroughly in:o
the question of carrying deposits of
state honey in banks in excess Of the
amount for which said banks are dcsig-
mated and recommended thai the pra-
ctice cease.
Your committee finds that at certain
times of the year large excess deposits
are carried IN certain banks, some nf
this is unavoidable and some even dcsir-
able for business reasons but we recon-
! mend that strict attention should be pad
to reducing excess deposits rs rapiaIy as
possible and cqualizing the amounts
! among the various depositarics according
to the bonds furnished, especially 4;
! there is some question as to thu security
! Of deposit carried in banks in excess of
the bonds furnished by such banks.
We find that the recommendation of
the special committee with Mr., Ployhar
as chairman, with regard to keeping re-
cords of various securities placed in the
hands of the State Treasurer by Trust
companies as security, has been com
piled with and Il record is now kept
! showing just what securities are de-
positea at all times.
Further investigation into this question
of security deposits however convinces
us that some system should be adopted
of %inuuiring into the validity OF the sccu-
rity offered for deposit.
Sec. 1879, of the Revised Codes Of 1905
require various Trust companies to de-
post $50 900 OF securities, which may be
first mortgages or deeds of trust upon
uncncumbcred real estate, situated with
in the state of North Dakota and worth
| three times the mount Of the obligation
50 secured. with the state treasurer as
collateral security for the dcpositors and
creditors of said corporation.
We lind that several companies have
deposited first mortgages and notes rs
security as provided above but we find
that no abstract or opinion as to title OF
prior liens or valuation Of the real estate
or validity of the mortgage or notes &C.
company such securities.
We feel that Il trust company getting
into difficulties such as would require the
use Of the deposit made with the State
Treasurer would also have a large amounI
of shaky securities and no place woult
they be able to negotiate the same Sc
readily as by deposit in the State Treas
urcr's office under the recent system ant
that in such event what is intended Il!
Il measure of security would in reality bt
a menace as the public would rely on tn,
$50, 900 deposited with the state as alb
soiutcly good protection when it nigh
easily be the most worthless of the com
pany'S assets.
We would suggest that in the future
before accepting such securities as dc
p0sit Tor trust companies, an abstract o
title or an opinion by Il reputable attornc.
as to the title and as to the lcin of thu
mortgage should accompany each mort
gage offered as deposit.
In regard to keeping records Of TIT
various Investments of the permanent
school funds and the crediting Of the in
tcrcst received from these investments
we find that two former committees hav'
recommended that some system be in
stalled to provide a check for same bu
no such provision has yet been made. w
suggest that ON effort be made alonl
this line.
Your committee did not make a com
prete examination of the Treasurer's Of
flee at various times and from such re
ports are convinced that the State Fund
are well and intelligcntly handled.
We find that the cash carried on han
and not earning interest is kept extremel!
low in amount and that the average rat
Of interest earned by the state money OF
deposit is steadily on the increase, rang
ing in different months from 2.75 per cen
to as high as 3.lI per cent with Il,
average for the year of about 2.97 pc
cent on daily balances.
Your committee would say that ",
find the clerical work in the office in ex
tremely good shape and the officials arr
courteous and obliging and every facilit!
was offered for the purpose of this in
v%estigation.
In conclusion, your committee would
summarize this report as follows:
Although the work in the State Treas
urer's office is well and efficiently taker
care of, in the opinion Of YOU committee
Mr.. Gunder Olson does not reside at thl
capital Of the state strictly in compliance
with the law as laid down in Section 4
Chapter ZIG, Session Laws of 1909.
We inc that some large excess de
posts are carried in banks at certain
times and recommend that the practice
be discouraged as far as possible.
We find that no examination is made
Of the securities offered as deposit b,
trust companies and suggest that some
proof at validity be required with eacl
such deposit.
' tVy ~ 4- = i, 81. -.'-Hsf ,