The Devils Lake world. (Devils Lake, N.D.) 1920-1982, 1921-03-02

had been sold by the State Of North
Dakota would there be in the state
today that financial stringency which
now exists?
A.-There would not. .s.aI
Q.-And why not? y
A.-Because the money received
from the sale of these bonds would
have relieved the situation.
Q.-You have heard much and read
much in the public press, have you
not, and other places concerning what
they call "frozen assets"
Al have.
Q.-Would there have been any
frozen assets in the State Of North
Dakota had these bonds been sold7
A.-Not by any manner of means a.
many as there are.
The contract made for the sale Of
bonds by two companies was offered
In evidence. The contract was made
contingent upon the indorsing legal
opinion Of IN eminent bond attorney.
1t was then brought out that after At.
torney General LANCER had written a
letter to Mr.. Cathro indorsing the
validity Of the bond issue, a suit was
instituted in the federal court by 1.-THE
Forty-two Taxpayers" attacking the
bond issue. Eventually this suit was
carried to the supreme court Of the
United States. After a long time, q
decision was rendered UNFOLDING the
right of the state and the people to
determine what bonds they would.
issue. But a long time was wasted In
that effort. For what purpose, the
commission believes, the people are
aware.
A letter from the bond houses was
introduced showing the attorney re-
fused to consider the issue while
"they remain undetermined judicially."
The contract for the bond issue eH.
pired as the result Of that action.
Thomas N. Dysart, vice-president Of
William r. Compton company, lateR
wrote to Mr.. Cathro. The letter, intro.
duced before the senate committee
says:
II am in receipt of your letter Of
the 3rd. I think you are entirely
right as to the fact that some Of your
citizens are very much to blame for
the fight they have made on the sale
of your bonds. I do not know, how.
ever, what pressure was brought to
bear On the attorneys, If any, but I do
know that they refused absolutely to
pass on them until the litigation wal
settled"
Mr.. Cathro had written to MI. Dr
sart, saying:
II was rather expecting that the
attorneys might be prevailed upon not
to render an opinion on the bonds at
this time on account Of the character
of the fight that has been put up in
our own state by the opposition. A
copy of this contract was obtained
from the attorney general and pub.
lished. attorney General Langer.)
Hence I concluded that a tremendous
amount Of pressure would be brought
to bear to prevent an opinion beinl
rendered. / do not doubt what the
opinion would be in the event that one
is rendered, but I feared pressure
would be brought to bear to prevent
an opinion. There is no censure at.
tached to any one, except our own
citizens, as they are doing everything
they can to block the sale Of bonds"
From that time the fight to prevent
the sale Of bonds has been carried On
determinedly. The result il that the
outside investor IL bewildered. The
credit Of the state suffers. Business
suffers. Farming suffers. Hardship .
brought on the whole people. And q
because a destructive little group q
s~elf-seeking politicians would ratha
see hardship and; suffering on the part
Of the .mass than to ~ the farmersf
J program succeed- -
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