The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-10-16
BANK PROBE is
MADE FARCE BY
JOKER IN LAW
Legislature Lets Bank of North
Dakota Down Easy in Requir-
ing Examination
TWO DIFF ERENT LAWS
Close Scrutiny Private Banks
but Bank of N. D. Liabilities
Not Examined

examiner are tied, even if he were
not an appointee of the Governor
with respect to the Bank of North
Dakota, is shown in a comparison
of the laws governing the Bank o;
North Dakota and private state banks
The trick by which those who draft
ed the legislative bill regarding the
bank and the "joker" inserted i:
easily seem in the comparison. These
are the differences:
-o l.. The state examiner is re-
Quired, himself or through depu-
ties to examine thoroughly into
the assets and liabilities of pri-
vate state banks.
g. The state examiner may,
however, investigate only the as
sets of the Bank of North Da-
kota. He has no authority to
investigate it's liabilities.
8. With respect to private state
banks the examiner is required to
80 far investigate the character
and value = Of the assets OF
each corporation as to ascertain
with reasonable certainty that the
values are correctly carried on
the books. He shall further in
yestigate the methods Of opera
tiOn
4. With respect to the Bank
of North Dakota he may invest
igate only the assets in its pos.
session and under its control with
sufficient thoroughness Of in
yestigation to ascertain with
reasonable certainty whether the
valuations are correctly carried
on it's books -. '''-9
BY inserting the words Sin it's pos
session and under its control the Law
is held by attorneys to give the ban!
authority to withhold many of its
records from examiners"
One Law
Chapter %, section 5146 of the com
piled laws Of 1913 says: ~
"The state examiner shall, unde
the direction and subject to the orders
of the state banking board, exercis'
a constant supervision, either persona
or through deputy field examiner:
hereinafter provided for, over. the bus
mess and affairs of financial corpora
tions placed by this act within thu
jurisdiction of the state banking boart
and shall personally or through, th'
deputy examiners herein provided for
visit at least twice each year, all o
said corporations, inspecting and veri
flying the assets and liabilities of eaci
and so far investigate the characte
and value of the assets OF each sucf
corporation as to ascertain will
reasonable certainty that the values
are correctly carried on the books
He shall further investigate the meth
ods of operation and conduct OF salt
corporations and their systems OF &C
counting, to ascertain whether sucl
methods are in accordance with tn
law and sound banking usage ant
principles, and report the findings
conclusions and recommendation up
on such examinations to- the bank
ing board and put in force and Ell
feet such orders and directions as /
NAV make in reference thereto
Another Law
Regarding the Bank of North Da
kota, the Laws of 1919, section u
say:
"The state examiner shall personal
ly or through deputy examiners Vlsl
the Bank of North Dakota at leas
twice annually, and shall inspect an
verify the assets in its possession
and under its control, with suffici
ent thoroughness of investigation T.
ascertain with reasonable certaint
whether the valuations are correcI
lv carried on it's books. He shall in
yestigate it's methods of operation an
accounting He shall report the re
suits of each such examination to tn
Industrial Commission as soon a
nra cticable, and to the legislative as
semblv at it's next ensuing session
and as provided in paragraph NO.
of section 5146, of the civil code com
niled laws. 1913, to the state bank
ing board
o, q. Lofthus, the state examine
has made report to the Governor
similar to reports made by other OF
fcers. which are intended for the us
OK the legislature The only repor
he made on the Bank of North ia
kota is to give the statement OF r. "
Cathro. Whether he plans TO nlaA
another report is not known.