The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1920-07-08
LETTER DENIES
LOAN CHARGES
BY MEN WHO EX-
AHMED BANK DECLARES I.
v. A. CRY UNFOUNDED.

V. A. CkY UNFOUNDED.
Bismarck-In a formal letter to thu
industrial commission Bank Examin
iner O. E. LOTUS testifies as to the
condition Of the Bank of North Da
kota. The letter is also signed by thu
eight deputy bank examiners who re-
Gently completed the semi annual ex
animation Of the bank as required b,
law.
Copies of Mr.. LOTUS letter have
been sent to Attorney General Lang
er, as a member of the industrial com.
mission and to Governor Frazier anc
John N. Hagan, commissioner of Ag.
riculture and Labor. The letter says
"Lynn J. Frazier, William LANCER
John N. Hagan, members of the in
dustrial commission.
Gentlemen:
eve have your request for certain
specific information relative to the
affairs Of the Bank of North Dakota
Having completed a regular semi-an-
nual examination of the Bank OF
North Dakota as required by law, as
at the close Of the business May 29
1920, and being fully advised as to the
affairs Of said bank we beg to report
as follows:
No Political Loans
U1 Wo oro of +bo onjo;o, 4l,o+ I'll
bills receivable and other evidence of
debt held by the Bank Of North Da-
kota are amply secured and we'll dis
tributed and that none of said assets
are poor, doubtful or of worthless
character.
"2. That no loans have been made to
the National Nonpartisan League,
The League Exchange Publishers
National Service Bureau, Consumers
United Stores Company, United
States Sisal Trust, or to any political
or semi-political organization.
"3. That no loans have been made
secured by property outside the state
of North Dakota.
No $4,000 Loans
"a. That no real estate loans
amounting to $4,000 secured by prop
erty located in Golden Valley county
or elsewhere have been made.
"5. That judging from, the apprais-
ers' report as to farm land values we
are of the opinion that all real estate
loans made by the Bank of North Da-
kota are secured by real estate value
of which at least double the amount
of such loan as required by law.
That all such loans are amply Sc
cured by duly recorded first mort
cages, the abstract to the real estate
having been continued to date and
having been approved by the office
Of the Attorney General.
"We find that cash balances carried
in correspondent banks outside the
state are very conservative and that
the management of the Bank of North
Dakota would not be justified in car
rying less amounts. We deem it nee
essary and consistent with good bank
ing practice to have at least the
amount now being carried deposited
in one or more reserve banks located
in reserve centers for the purpose
of carrying on the usual business
necessary and incident to the opera
tion of bank of this size and char
acter.
Respectfully submitted,
20. E. Lotus, State Examiner, Gil
bert Semingson, chief deputy examin-
er. L. E. Dickerson, L. E. Wambheim
o. E. Engemoen, F. B. McAneney, Ole
Lovik, o. E. Bergstrom, deputy exam
iners.
Court Denies Authority
Commenting on Attorney General
Langer's Misrepresentation concern
ing the examination Of the Bank Of
North Dakota, w. A. Anderson, Sec
retary of the industrial commission
said today:
"It is indeed a pitable thing to have
the attorney general of the state 60
ing around telling people that the
Bank Of North Dakota cannot be ex'
amined. Mr.. LANCER, as member OF
the industrial commission, knows that
the bank examiner is required by law
to examine the bank twice each year
and that several examinations have
been made. :s- :,.. -,,.a-.s.
AIn an attempt to create a political
furore he is urging that State Audit
or Kositzky be permitted to audit the
bank. Mr.. LANCER as attorney general
should be mindful that the state su-
preme court held that the auditor has
no authority to examine the Bank OF
North Dakota.
Suggests Quiz of Auditor
49, L~1 ~x,npsJanGror2