The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-10-21
B0NDC0NTRACT
IS MADE PUBLIC
BY BANK OF n. D.
Lays Details of Transactions
With Toledo, Ohio, Firm on
Bonds in Record
CONTRACT FOR $5,2so,ooo
Bank TO Pay 5 Per Cent For Sale
of Some Bonds and 4 Per
Cent on Others

VI oOANC DOAluo taIlu I eI
Cent on Others
Gull publicity concerning the bond
sale made by the Bank Of North Da-
kota IS given by the bank and state
officials in their papers filed in the
supreme court in the Jamestown in
junction case and to De served upon
the plaintiff taxpayers. The bond sales
OF the bank and future plans also
were touched upon by Attorney Cen
era Lemke in his petition.
The contract with Splitter, Rorick
and company Of Toledo, O., calls for
the sale of $5,2SO,OOO Of bonds. The
contract calls for delivery of $14O, 900
OF bonds due in 1871; $525,O0O due in
1916; $715,0GO due in t94S, and $3,-
100000 due at dates mutually agreed
upon.
1t calls for delivery of bonds as
follows: $50O.O00 on September 26,
1921: $500,O0O on October 26, 1921;
$50O,O00 on Nov 26, 1921; and $780,
900 on the 26th day of each month
thereafter up to and including August,
1922, and the remainder on Septem-
Der 10, 1922.
The Price Of Bonds.
The price on these bonds, real es-
tate series is given as follows: In
the main contract at par and accrued
interest. In so-called rider contracts,
it is stated the Bank, of North Dakota
agrees to pay three per cent on par
on bonds real estate series sold in
said contract amounting to approx
imately $5,2S000O and two per cent
contract except the six per cent mill
and elevator bonds amounting to ap-
proximately $590,OOO.
A second additional stipulation says
the bank agrees to pay at the time
each consignment of bonds is taken
up and paid for by Splitter, Rorick
and company. including those on
which option may be exercised, two
per cent on par, this payment to be
in addition to the payment specified
in the first rider contract.
F w. Cathro, manager of the bank,
stated in his affidavit that the COM
mission paid "in connection with the
sale of bonds amounts to twO-fifths
OF one per cent (2-5 OF per cent?
per annum."
Miscellaneous. Sales.
Regarding sales of miscellaneous
amounts of bonds, Mr.. Cathro stated
that there had been sold to miscel-
laneous purchasers $49l,65 of the
bonds of the real estate series, and
that $590,0OO out of $1,V00,OOO of mill
and elevator bonds remained unsOld,
indicating miscellaneous sales of
$41O,OO0. The Splitter, Rorick and
company has paid for $1,200,O00 Of
bends, Mr.. Cathro stated, which, to-
gether with the miscellaneous sales
makes up the total proceeds of bonds
banks monthly statement.
The Bank of North Dakota, Mr..
Cathro stated, proposes tc make farm
loans at 6 3-4 per cent interest, and
states that since Oct. 3, when it be-
came known the bank mad negotiated
the sale of bonds, it has been beseig
ed with applications.
Plan Home Builders 1SsSe.
The contract relating to future
bond plans of the state says in part.
"The state of North dakota has au-
thorized an issue of $1,O00,000 of =
per centum bonds, mill and elevator
series, dated July l, 1921, due one
July 1, 1916 Denominations of $1,000
of which are unsold approximately
$590,OOO We have made arrange
ments to secure these bonds and in
consideration of the above purchase
you are given an exclusive option on
the said $590,000 bonds at par and ac-
crued interest, said option to expire
on Dec. 26, 1921, unless exercised by
you.
"The state of North Dakota con-
templates the issuance during the year
1922 of not exceeding $1,50O,000 ad-
ditional bonds, mill and elevator
series, to bear 5 S4 per centum inter-
est per annum, payable semi-annual-
ly. We have made arrangements to Sc
cure these bonds when issued and
agree that you are to have the ex-
elusive right to purchase said bonds
/, at par and accrued Interest. 1t is
agreed that when said bonds are
ready for issuance from time to time
that we shall notify you in writing to
that effect and you must exercise your
option tc purchase at the price within
thirty days from the date when you
receive this written notice from us.
"The state of North Dakota contem-
plates the issuance during the year Of
1922 of bonds, home building series, in
amounts not exceeding sl,OO0,000; said
bonds are to be in denominations OF
$1,000 each bearing interest at 5 3-4
per centum per annum, payable semi
annually We have made arrange
ments to secure these bonds when is
sued and agree that you are to have
the exclusive option to prchase the
same or any part thereof of which are
issued, at par and accrued interest, at
any time within sixty days from the
time when you receive written no.
tice from us that said bonds are ready
for delivery.
THE above option given in consii.