The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-06-30
PRACTICES OF
STATE BANK IN
COURT. | DISPUTE
Attorney IN Brinton Case Cross.
Examines DiIector- General
Of Bank
LAWYERS CALLED DOWN
Judge Nuessle Again Cautions
Them Against Side
T., Remarks "."
LAWYERS CALLED DOWN


? The state rested It's case At ATS
this afternoon.
Practices OF the Bank of North Da.
kota in dealing with banks in which
its deposits public funds were gone
into in district court today in the
Brinton trial In the long cross -exami.
nation to which F. w. Cathro, director
general Of the Bank OF North Dakota,
was subjected by Arthur l.eSueur, dc.
Tense counsel. ia.
Attorneys in the case, J. ]. Weeks,
special prosecutor, and LeSueur en-.
gagged In several tits and both were
warned again by Judge Nuessle
against casting side remarks in the
presence of the jury.
LeSueur inquired at length into tho
method OF safeguarding funds in the
Bank of North Dakota, and whether
or not the Bank of North Dakota
made any Investigation Of the various
banks In the state in which large
sums OF public money are deposited.
Mr.. Cathro distinguished between re-
deposits, consisting of money which
was in the banks when the Bank OF
North Dakota was organized and
which was left in the banks, and de-
posits consisting Of money put In the
banks later. LeSueur sought to es-
tablish il there was investigation OF
the responsibility Of banks In which
,,,,h1ir sn0nav ia Aonncifp0.
Practice Of Bank
lis it the practice of the Bank OF
North Dakota to MAKE an investiga-
ton Of the responsibility of banks in
which state or other public money
or other money is deposited?" he
asked.
at is not the practice Of the Bank
of North Dakota to investigate the
standing of banks In which It makes
redeposits," the witness replied.
The witness said there was a difers
ent rule with regard to banks having
deposits and those having redeposits.
He said the rule of the state bank re-
quired that an examination be made
of banks having new deposits. Asked
IL there was an examination made OF
the Scandinavian.American bank OF
Fargo he said that j. r. Waters and
l.. w. McAneney examined 1t at
Thanksgiving time, 1919.
He admitted that the Bank OF North
Dakota had deposits In that bank for
a considerable period . previous to
that time. He said that Waters when
he went. .- to Fargo examined the
bank and had in mind the purchase
of the bank.
Puts In Letter
LeSueur read into the records a
letter written by A. =. Snyder, for'
,mer transit manager OF the state
bank, which has been part OF the
basis OF Brinton's and Waters state
ments. LeSueur sought to establish,
after reading OF deposit In the Mer-
camille state bank of Minneapolis.
that about the same time $780, 900 de-
post was made in Minneapolis bank
that bank placed $4,000 In the Scan
dinavian-American bank. The W.T.
ness said he did not know this. lo'
Sueur asserted the minutes of the
Scandinavian bank showed It.
PAGE Of Book Missing
It was discovered during the trial
yesterday afternoon that stock Ger:
tificate of the Observation-Disclosures
bank Of Fargo is missing.
The stub of the certificate OF the
stock book record OF the bank, ex'
hibited in court by Nels J. Brevig,
formerly assistant receiver Of the
closed bank and assistant receiver at
the present time, showed that 1t was
made out to H. A. Paddock, presum-
ably the same H. A. Paddock who
formerly was general manager and
then counsel Of the Consumers United
Stores Company and now secretary
of the Industrial Commission OF North
Dakota.
The certificate of the stock itself
was missing. Mr.. Brevig said that
the stock, which, according to the
record had been issued to Mr.. Pad
dock but which was not receipted.
had been cancelled Arthur LeSueur,
counsel for Brinton, laid stress on
the fact that. ten shares Of stock
had been shown on the stub as trans
ferred from the League Exchange to
Paddock. Mr.. LeSueur also got into
the record the minutes of a meeting
of the board of directors Of the Scan
dinavian- American bank of Fargo of
Nov. II. 1919, in which Henry Pad
dock was named director of the
bank and elected chairman Of the dis
count committee, it being the inten'
tion OF the attorney to show that a
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