The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-17
SINKLER SAYS
1915BANK LAW
WAST00SEVERE
Only Two or Three Banks Obey
ed Law, Declares Senate
Attorney
DENY BRINTON RGE
Lemke, Lofthus and Thatcher
All Declare His Testimony
False

Attorney Ed. Sinkler of the senate
Investigating committee charged al
the hearing yesterday afternoon that
only two or three banks In the state
fulfilled the legal requirements of the
1915 law regarding reserves. This
law was changed at the special ses
sion Of the 1919 legislature and made
more liberal in regard to balances re-
quired. The, Nonpartisans, who con
troi'ed both houses at that time, have
been criticised for this change.
M. W. Thatcher, Fargo accountant
was placed on the stand to refute the
charge that the reserve of the state
bank was less than that required of
private banks. Mr.. Thatcher testified
nat on the basis Of the Bishop, Briss.
man & Co., report Of December 3, the
legal reserve of the state bank was
$6,25S,S11.1, or $3.702,99S.31 more
than would have been required under
the old or 1915 law.
Makes Comparison.
When the Scandinavian-Americaa
bank was first closed in the fall of
1919, according to testimony at the
house hearing its legal reserve was
S300,OO0 less than nothing"
Mr.. Thatcher said that based on the
same strict construction of the 1915
law, at the same time the legal re.
serve OF other banks was $780,.
600 less than nothing" and that
the legal reserve Of the Northern State
bank, town not given, was On tsla
same basis $345,OO0, LESS than no.
thing" tr. ~ ,,..., ..+.. +, >,
Takes Up Report.
Tie took up the report of the Rogers
Stae bank for date of Dec, 20, 1920,
and stated that its cash reserve was
less than legal. Senator Ployhar
brought out that this was the bank OF
Chairman Grangaard Of the house in.
vestigatiol committee and intimated
that the attorney was playing politics.
Before the recess was taken this af.
ternoon Mr. Thatcher was instructed
to secure records from the state bank
examiners office relating to some fifty
banks in 1919 and at the present time
and to give the committee informa.
tion in regard to their reserves.
The witness testified that in roughly
looking over the records Of the bank
examiners office, he would say that
the cash reserve Of all the banks Of
the state punched together was ST.
$4,000 less than the legal reserve re-.
quired> by the 1919 law.
Denies Check Episode.
Mr.. Thatcher denied that Mr.. Brin.
ton had ever talked with Mr.. Lemke
and Mr.. Lofthus in his presence re.
garding the $1,000 check which Mr.
Brinton claims was given Oh bank
in which he had no funds to swell the
cash of the Observation-Disclosures
bank at the time of the supreme court
hearing and that he did this in accord.
ance with an agreement with the two
men to hold the check until he could
scape up the funds to meet it. He said
that he did talk to Mr.. Brinton at the
Gardiner hotel during that time and
he was Dragging about how we'll the
Eisal trust was doing and showed him
a pass book in which an alleged bal.
ance Of thousands Of dollars was
shown.
MIR. Lemke and Mr.. LOfthus also de-
MED any connection with the alleged
Brinton deal. Mr.. CathrO was on the
stand for q few moments to give fur
Their testimony regarding money sent
J. J. Hastings by J. r. Waters, then
manager of the bank; as advance on
for sale of state bonds.