The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-12-11
NEWS FROM THE
STATE CAPITOL

Bismarck, N. D., Dec. 1O-Usine
the famous "shoot it out to the other
league banks" letter as the basis for
argument. Representative L. u
FTwitchell Of Fargo Monday after
| noon introduced concurrent resolu-
| tion which demanded that the indus
trial commission insist on and accept
the resignation of J. R. Waters as
manager of the Bank Of North Da-
kota, and the resignation Of Rey. M.
Halliday as deputy director Of pub
LEFTY and audits.
The demand further insisted that
before the industrial commission ac-
cept the resignation Of j. R. Waters
and he be given his last months
salary that he be required to take up
all outstanding Indebtedness against
him on the books of the Scandinavian
American Bank Of Fargo, the Bank Of
North Dakota, or any other state in
stitution; that Carl Kositzky as state
auditor be empowered to examine the
Bank of North Dakota, make an au-
dit of it's books and make his report
to Attorney General William LANCER
for the purpose of commencing Grim
inal action and insuring compliance
with the resolution. .&al-
The document introduced cites that
Waters is the manager of the Bank
of North Dakota and was former state
bank examiner; that Halliday is now
deputy director of publicity and audits
for the state bank and was formerly
a deputy bank examiner; that Halli-
day wrote letter by order OF Waters
which outlined the scheme for evad-
ing the bank examination require
.nents; that Waters secured loan of
$1,000 from the Scandinavian Amer
lean bank for his private enterprise
the United States Sisal Trust; that
Waters in writing a letter to the Off
GERS of the Fargo bank said "you can
readily see that your reserve would
be many thousand dollars less than no
reserve at all s. :: 4: your bank should
carry in reserve at all times at least
S4OO,OOO; that though Waters knew
of this condition he permitted the
bank to remain open for business.
It cites further that Waters, follow
ing the institution of the state bank
wrote a letter saying that he could
let the Fargo bank have $4,000 cash
in a few, days 1t it would help; and
that Cathro a subordinate of Waters
openly boasted that the Bank Of
North Dakota had in it's possession
$4,000 worth of total of $685., 900
notes sent it by the Fargo bank:
The resolution then reads Whereas
Such conduct on the part of j. R. Wat
ers and Roy NJ. Halliday constitutes
violation of trust and misfeasance
in office; that while sworn to uphold
the laws of the state, they have held
them in wanton disregard to be evad-
ed and not to be enforced; that they
have failed to disclose crimes within
their knowledge as public servants
against the banking laws; and have
hagrantly violated their oath of office;
that they have permitted and assisted
banking/institutio to violate the
banking laws under which they were
created, and then condoned those VIC
lations; that they have permitted
monied corporations under their sup
ervision to run wild and without re-
straint, although the power to curb
financial ventures was in their hands,
now therefore be it resolved* :; :" : *S
That their designations be demanded
and the various other provisions as
c;rnd ohovo .a..,sH fFE.,.eas. 4