Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-04
Refuses To
TeuIhe Amount OF
s||I;5 sadeposits Placed In
Fargo Scandinavian Bank
from page ~

Ing up the relations of the Bank of
North Dakota with other banks Of the
state" Mr.. Cathro declared.
~ "You stated. Mr.. Cathro, that the
principle adopted by the Bank Of
North Dakota was to redeposit with
the banks as nearly as possible the
amount taken from them, Is this corr
rect Mr.. Murphy asked.
1T was" Mr.. Cathro answered.
did this apply to the Scandinavian
American bank at Fargo" Mr.. Muir
ply demanded.
z" Lcmkc Lends Aid.
THE records are the best answer to
that" Mr.. Lemkc interrupted at that
point.
"I was about to say that myself"
declared Mr.. Cathro.
aeOn motion of Mr.. Murphy the hear
ing vas then adjourned in order to
give Mr.. Cathro time to send to the
Bank Of North Dakota for records.
We want the records on the Scan
dinavian American bank and h 9TH
er Fargo banks in general" Mr.. MUIR
gphy said.
= AS soon as the recess was taken Mr..
ssCathro was surrounded by Mr.. Lemke,
Paddock and other league chiefs and
b hurried council of war was held.
After the Recess.
When the recess was concluded,
and the hearing again began, Mr..
Murphy said:
Mr.. Cathro, just before the recess
you were asked to produce, in &C
cordance with the suggestion of your
self. Inc Mr.. Len,ke. that it would
Pc The best evidence in the n.atter: the
ledger and individuals accounts of the
Observation-Disclosures. and other
Fargo banks for the purpose Of es-
t~ablishing. if it car be established
that the policy of the Bank of North
Dakota in regard to re-dcposits was
rs YOU have outlined it in your testi-
Eony. Have you these here now"
Just a minute" said Mr.. Cathro.
81 now have here the correspondence
5Iegarding the negotiations for the
$~1.000,0O0 loan made in Chicago. that
You asked for earlier in the day" He
then urged that this be read into the
records. and MIR. Murphy consented.
" The correspondence was interesting
as showing that the Chicago loan
whether the Bank of North Dakota
Aas made an actual purchase Of the
state bonds, feeling that the obliga-
= lions would not be valid. unless such
had been made.
: The bank had then sent assurance
that such was the fact.
! This being concluded. Mr.. Murphy
ndu the clerk again Tedu his question
to Mr.. Cathro. and asked hat an
anrver he piven.
st wish this committee would real
Ee the import of the question you are
asking me-" Mr.. Cathro said. conf
dence in the banks is necessary at this
time. We have been trying to hold UP
confidence. This is the one thing in
the Bank of North Dakota tina,
should be kept confidential. it attacks
the confidence in the banks of the
state"
. Yen understood said Mr.. Muir.
Hhy, that this is a committee of the
house2of Representatives. investigating
this matter. We have only asked yor
tor the account Of his one bank, anC
the other banks of Fargo. will yol
answer the question:"
Asks Lemkc.
II will ask Mr.. Lemke as a repre-.
sentative of the Industrial Commits
sion if I nav the right to bring thes,
records here" Mr.. Cathro said.
i Mr.. Lemke may answer you as tt
This, briefly" said Mr.. Murphy, turn
Ihg to h attorney general who sa
lear MIN.
. mo attorney has ever succeeded i,
tagging me yet. and then can't begi,
now" yelled the attorney general.
Here Mr.. Murphy suggested that i
would probably be more c%onvenien
to all if Mr.. Cathro was given unit
Saturday morning to consult the at