The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-06-15
MAKES
EXPLANATION
OF INTEREST
Declares Technical Tangle Is Be.
ing Made Use of to Black
en- His Reputation
READY TO TURN OVER CASH

State Treasurer John Steen, indie.
pendent voters candidate for the re-.
publican nomination for governor at
the primaries June 26, today issued
the following signed statement cover
ing the Des Moines Mutual Hail &
Cyclone Insurance Co. interest matter
which is being used as campaign ma
terial by his opponents:
Bismarck, N. D., June IA, 1918.
To the People of North Dakota:
Several state officials and other
league speakers have been exceeding
ly busy Of late, telling the people of
the state that l am wrongfully with.
holding certain interest-money earn,
ed by deposit of a certain foreign in
surance company and are attempting
to convey the impression that am
dishonest in the performance of my
duties. ..,,,t !;
The facts In this matter are as fol.
lows II
When | assumed the office of state
treasurer my predecessor turned over
to me the sum of $4,000 deposited
with the state treasurer by the Des
Moines Mutual Hail & Cyclone Insur-
ance Company of pes Moines, Ioda,
to guarantee their contracts in this
state, this being in pursuance OF law
which requires foreign mutuals to-
make a deposit of either cash or Sc.
curities before they are authorized to
do business in North Dakota. ~
This being a trust fund 1t was ne
cessary to keep it separate from state
funds. and there being no provision
under the law for the keeping or In
vesting of such funds, on my own ro.
sponsibility l deposited this money In
banks on demand certificates of de.
posit drawing interest at four per
cent.
When the insurance company de.
cided to withdraw from the state this
money had earned $1.250, in interest,
and the question arose, Who was en-
titled to this INTEREST,", referred tho
matter to Attorney General Linde for
a nopinion. and he gave as his opin,
ion that the state was not entitled to
it, and he was not sure that the com.
pany was, inasmuch as there was no
provision under the law that required
the state treasurer to invest such
funds, and in case it had been lost
through the failure of any bank, or
for any other cause. I would have
been personally liable for 1t.
ocko1 tho in cOmnonv IN
bring friendly action in order to de-
eide who was entitled to this interest,
and although Attorney General Linde
had given his opinion that this money
did not belong to the state, insisted
that he should claim the money on be-
half Of the state, as l wanted the mat
ter settled. u.,
The case was tried in district court
Of Burleigh county and was decided in
favor Of the insurance company last
and an appeal is now
pending in Supreme court. And il
these state officials who are or ap.
pear to be so much interested in the
welfare Of foreign insurance com.
pany would step into my office they
could readily ascertain that the 1850
Is here ready to be paid to whoever
is legally entitled to it.
I have tried my best to have this
matter settled and it is through no
fault of mine that it has dragged along
for over two years. Had l not been
candidate for governor no one would
have attempted to blacken my char
acter on account of the above, but l
feel satisfied that Goevrnor Frazier is
not party to nor approves of this
cowardly attempt to assassinate my
character and reputation.
Respectfully,
".. JOHN STEEN,
-- State TreaSurRr. /