Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-21
DELIVERY
! d. CASE WILL BE r,
HEARD TUESDAY
CONTINUED from page -

digging away for facts in the case.
So far as the records show the bank
has made q present of the $24,064.
In addition to failure to col ect
money due the state the bank has in
effect confessed the violation of the
state. law, in the disposition Of bonds,
according to Mr.. kehoe. The state
law requires bonds be disposed Of at
par, and in law par means ALSO ac-'
3crued interest. The bond contract
provides for payment of accrued in
.terest. But there is no record show
ing the Bank Of North Dakota collect
ed the accrued interest, amounting to
$24, 064.t 60 ts4
The bank had, however. paid the
Splitter, Rorick & Co. total discount
amounting to $74,325 on bonds al
ready delivered.
, In Judge Coles findings Of facts,
which are to go before the supreme
court when it hears arguments in
the bond contract case Tuesday, the
method Of handling the bonds is
shown.
L Transactions in Detail
Il The. industrial commission, which
claims to have sod the bonds to the
Bank of North Dakota, delivered ''for
safe-keeping' bonds Of the real es-
tate segies as follows: $4,000 on
uiJ 8OOV,VVV OIL <1u6 uoI q $oVVp-
200 on September %. All OF tho
50, 900, 900 of. "a estate bonds bear
interest from. July l, at the rate Of
SIX per cent, maturing in 1881, 1895,
1941, 1916 and 194s.
:: After. having had the bonds in its
possession for safe-keeping" the
Bank of North Dakota delivered on
September 26 s211,00 Of 1916 bonds
and $2S9,000 of. 1948 bonds to the
1e&o~ F:~-~ --I ~o1osyoJ $Enn nm
No accrued interest was collected, ac-
/, cording to the finding of facts.
:, On October IA the bank delivered
a total of $725,o00 of bonds and re-
.ceived $725,OOO. No accrued interest
was collected.
On October IS the bank delivered
$4,000 of 1941 bonds and received
$4,000. No accrued interest was
collected.
The state law provides that bonds
a be sold only. for par and for
cash. The findings Of fact show
that the Bank of North Dakota did
pay cash for the bonds, but on
November 2, after delivery Of bonds
to Splitter, Rorick & Co.. paid the in
dustrial. commission ~31,25O,o00.
On November S the bank delivered
: $2S6,500 of real estate bonds and col
lected the game amount, no accrued
Interest USllS COllcJIcu. u SALkCl
the bank paid the Industrial commis-
sion $236,500.
The bank has not yet paid all of
the money to: the industrial commits
sion. still owing the commission $685.
900, according to the finding Of facts
although the law requires the bonds
to- be sold for cash.
Judge Cole, in making permanent
the injunction prohibiting further de-
livery Of bonds, found:
Whole Transaction Unlawful.
"That the whole transaction at
tempted to be effected by said letter
and riders and combinations is un-
lawful and IN violation Of the express
limitations imposed by law on the
: powers and authority of the industrial
commission and the defendant bank
acting as the agency of said Industrial
commission. and the defendant Cathrc
acting as the agent Of the industrial
commission and said bank and al!
other agencies Of the state Of North
Dakota for the sale of it's bonds, Of
all which illegality, express violation