The Oakes times. [volume] (Oakes, N.D.) 1906-current, 1921-02-24
CATHRO HAS
QUEER IDEAS
Says Bank of North Dakota Can Re.
fuse Payment and Remain
Solvent
DIFFERENT WITH OTHER BANKS
House Audit Committee Still Tracing
League Transactions

When the Bank of North Dakota
fails or refuses to meet demands upon
it by public treasurers that have de-
posted funds with it, the bank is not
insolvent.
When private banks fail or refuse
to meet demands made upon them by
the Bank Of North Dakota, they are
insolvent. This is the reasoning of
F. w. Cathro, director general and
manager of the Bank Of North Da-
kota, as stated to the senate audit
committee.
He was before the audit committee
seeking to justify the Bank Of North
Dakota's refusal to pay certain checks
including all state checks except those
of institutions and the checks Of coun-
ties that have discontinued making
deposits with the bank.
Mr.. Cathro's testimony and the sub
mission Of records Of the state banks
transactions in several counties, af-
forded additional opportunity to study
the manner in which the Bank Of
North Dakota has placed q big per-
centage Of public moneys in purely
Nonpartisan league or so-ealled
friendly" banks at the expense Of
other banks.
It was announced that it would be
the purpose Of the administration to
place in the senate audit committee
records a statement Of the dealings
with every county in the state, TO-
gether with letters from banks to
show that the failure Of private banks
to meet the state banks demands
made it impossible for the latter in
stitution to meet some Of the de-
mands to which it has been made
subject.
The house audit committee con-
tinues to devote it's attention TO trac-
ing Nonpartisan league transactions
and deals Of its subsidiary corpora
tions through league banks into the
Bank Of North Dakota. The Peoples
State bank of Casselton was shown
to have $25,634.75 Of paper that ap-
parently had come to it from the
Scandinavian American bank Of Far
go. It had Box and Hastings deals of
$11, 200; a p. r. Sherman deal of
$8,840; and league exchange deal Of
$4,613.70. ut occurred to me that
they, (the officers) must have been
underhandedly influenced in taking
some Of the loans that are on the
books" is the comment a deputy ex-
aminer made of the conduct of the
bank by it's officers in the report that
was presented to the committee Tues
day. One Box and Hastings deal, the
report said, twas secured by junk
heap" a burned building on which the
mortgage was placed after the fire.
The bank has $42,2O9.23 redeposits
from the Bank of North Dakota and
other liabilities of $7,OO5.
Affairs of the Peoples State bank
I Of Hillsboro were analyzed by Exam
iner Lofthus, who showed the bank
to be in very good condition.
i L. p. McAneney, director of cred
it's of the Bank of North Dakota, was
en- the stand for few moments. He
said that he had gone to Miami, Fla,
some time ago at his own suggestion
after discussing the matter with Ray
Craig, former state manager Of the
Nonpartisan league. When asked If
he registered in Miami under any
name other than his own, he replied
that he had not so far as he could re-
member. McAneney said he did not
tell Cathro why he was going to Flor
ida. The trip in question centers
around the retirement of j. r. Waters
from the management Of the state
bank and will be further probed.