The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-03-03
Why the Salary Increases.


We are of the opinion that the in
cleaseof salary was made for the pur,
pose of compromising the officials
named for whatever inconvenience
Was incurred by change of residence
and undoubtedly residence was re.
CURED at the capital of the state in
order that the office should receive
the personal. attention of such official
and also to enhaace the dignity and
capital of h state as far as possible
by having state officials make their
residence at the capital of the state.
actually and in fact, during their term
of Office.
Further investigation has been along
the lines and recommendations sug-
eested by former committees and we
find that the committee appointed by
the eleventh legislative assembly with
MIR. Roberts as chairman went very
thoroughly into the question of carry
ing deposits Of state money in banks
in excess Of the amount for which said
banks are r~esign4ted and recommend
ed that the practice cease.
Your committee finds hat at certain
times of the year large excess deposits
are carried in certain banks. some of
desirable for business reasons but we
recommend that strict attention should
be paid to reducing excess deposits as
rapidly AS possible and e%qualizing the
amounts among the various deposi.
taries according to the bonds fur
nished. especially as there is some
question as to the security Of deposit
carried in banks in excess Of the
bonds furnished by such banks.
Recommendation Complied With.
We find that the recommendation
OF the special committee with Mr..
P1oyhar as chairman, with regard to
keeping records Of various securities
placed in the hands of the state treas
urcr by trust companies as security,
has been complied with and a record
is now kept showing just what securi-
ties are deposited at all times.
Further investigation into this ques.
ton Of security deposits however con-
vinces us that some system should be
adopted Of inquiring into the validity
of the %securitv offered for deposit.
of 1905 require various trust com.
panics to deposit $4,000 of securi-
ties. which may be first mortgages O,
deeds OF trust upon unencumbered
real estate, situated within the state
of North Dakota and worth three
times the amount Of the obligation
so secured. with the state treasurer
10 SCSuIlSS AOF lIc UeUOSl.
tors and creditors of said corporation.
We find that several companies have
deposited first mortgages and notes as
security as provided above but We
find thai no abstract or opinion as to
title or prior liens or valuation of the
real estate or validity of the mortgage
or notes accompany such securities.
We feel that a fruits company get
ting into difficulties such as would re-
inirc the use of the deposit made with
the state treasurer would also have a
large o Of shaky securities and
no place would they be able to nego-
tate the same 40 readily as by deposit
in the state treasurer's office under
the recent system and that in such
event what is intended as a measure
OF Eecurity would In reality be a men.
ace as the public would rely on tho
$4,000 deposited. with the state as alb
snlutely good protection when 1t might
easily be h most worthless Of the
company's asscts.
Examine Securities.
We would suggest that in the future
before accepting such securities as de.
post for trust companies. an abstracl
OF title or an opinion by n reputable
attorney as to the title and as to the
lein OF the mort"ag~ should accom-.
pany each mortgage offered as de-
post.
In regard to keeping records of the
various Investments Of the permanen,
school funds and the crediting of the
interest received from these invest.
ments, we find that two former com.
mittees have recommended that some
system be installed to provide a checl
for same but no such provision has
yet been made. We suggest that sOmc
effort be made along this line.
Your committee did mot mako =
complete examinations of the treasur.
er's office at various times and from
such reports are convinced that thu
state funds are we'll and intelligently
handled.
We find that the cash carried on