The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-10-23
"LIE LIKE A HORSE THIEF"
Bismarck, October z, 1919
:. Kositzky, State Auditor,

Bismarck, NOrCn UakOCa.
Dear Sir: Due to the false state
ment to the effect that the Bank of
North Dakota was carrying $325,OO0
of the dinavian-American Banks
paper, we permitted you to examine
the rediscounts ond bills receivable to
satisfy yourself Of the falsity of the
charge. You completed that examina-
tion on Monday afternoon and dis
! covered none of the items you came
here to find.
There are reasons why your examin-
alton of the Bank of North Dakota
should not continue. First, you have
no legal authority to examine the in
situation. But, principally, the Bank
of North Dakota recognizes that it's
confidential relations with it's custo-
mers must be protected. Furthermore,
the Bank of North Dakota has under
taken to keep clear of political entan-
clements and has adopted a policy in
line Herewith. Your record for falsi-
flying and misrepresenting in other
matters, therefore makes it impera-
tive that we prevent you from going
further.
We are perfectly willing, however,
that an examination of the books and
records of the Institution be made by
those authorized by law to make an
examination.
Very truly yours,
(Copy) F. w. CATHRO.
Affidavit
State of North Dakota,
County of Burleigh-ss
III k4 k1ox r
ner, am the duly appointed and quail
flied Deputy State Auditor Of North
Dakota, and that on the 9Th day Of
October, 1919, at one o'clock in the
afternoon Of said day, myself, in COM
pany with H. E. Gansz, Sam Thomp-
son and John Bowers, all being exper-
fenced men in the banking business,
and under the direction Of State Au-
ditor Carl r. Kositzky, proceeded to
check and audit the books Of the Bank
of North Dakota; that during the
time we had possession of the books
and records of said bank we counted
| the cash in the vault, proved the re-
| deposits in the various repositories
and checked about half Of the bills re-
ceivable; that on the 7th day of Octo-
ber, 1919, we again appeared at the
bank for the purpose Of continuing
! our checking and were refused admis-
sion by F. W. Cathro, director general
of said bank; that we did not have an
! opportunity to check and audit any Of
the other sixteen accounts such as
items out for collections, correspond
! ent banks, farm loans, sinking funds,
interest earned, etc., that in totaling
1,o ,;o,,, ;&o,,,o oF 1o;11e 11o
the total amount Of said account is
and was at the time of this check
$145,624.54, while the book record
shows $150,574.54, or $4950 more than
charged. -, H. -.--.
W. G. WORNER.
Subscribed and sworn to before me
this 7th day of October, A. D. 1919.
r. A. YEATER,
Notary public, Burleigh County, N. D.
My commission expires May 4, 1922.
Audit report covering the operation
Of the Drake mill for period COM
mencing Aug. Goth, 1919, to and in
Guiding September 26, 1919. Part of
this report is made by the Schultz
Audit Co., and part gy C. R. Kosit-
zky, state auditor,
Cost of wheat bought Au-
gust 20, 1919, and Sept. Il
rs, 1919. .$17, 1916
Cotton and paper bags used. 1,170.55
Pay roll at the mill ....... 1,O87.44
Office supplies, oils, post
age, exchange and miscel-
laneous ........,,>..... 1879
Loss on open orders and fu-
ture sales .............. 188.5Oi
Expense, auditing books at
the mill (estimated) .... 10000
Coal 211.16
Depreciation n............ 1920
audit Company failed to-
mention name of this
item) 1,241.67
Interest accrued on notes at
. the Bank Of North Dako-
ia ($4e,00O) ............,. 203.58
Interest accrued on notes at =
the Farmers State Bank
$4,000 at per cent ..'..
Salaries and expenses paid
manager, secretary and
stenographers of the mill
and elevator association. 1862 .4S