The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-04
CATHR0 CLAIMS
BANK RELATION
MUST BESECRET
Fails to- Produce Scandinavian
American Redeposit Record
as Requested
TRYTO MEND RULES
Representative Johnson, Nom
partisan, Charges Unfair
ness by Majority
RYTO A NJ EN- D RULES

state industries was impeded
today when records of the Bank
Of North Dakota. asked for by
counsel for the committee, were
not presented after a recess had
been taken to allow time for
production of the records.
When the hearing resumed
after recess, r. w. Cathro, di-
rector general of the Bank of
North Dakota, who was asked
to produce the record of the re-
deposits in the Scandinavian
American bank of Fargo and
other banks in that city, declar-
ed that it might destroy conf
dence in many banks in the
state to make public records of
redeposits.
Mr.. Cathro was given time in
which to take the matter up
with the Industrial Commission
to find out if he commission
would consent to the records
being produced.
After Mr.. Cathro left the
stand, Representative johnson,
Of Steele county, N0npartisan,
moved in the committee to
amend rule nine to permit wit
ncsses called before the commit
zee to be represented by coun.
sci, charging unfairness to the
minority by the majority. The
motion was lost by a six to
three vote. The committee,
which holds morning hearings
only adjourned until $50 to-
morrow morning, when it is cx-
pected' Mr.. Cathro will present
the answer of the Industrial
Commission.
How tie.up came
The question which caused the re.
cess Of the committee came at lO:l5
a. nj. Mr.. Murphy, counsel for The
committee, had been questioning ;Mr.
Cathro relative to the bank loan of
$l0oVOoo and the method of making
redeposits and loans to banks.
Mr.. Cathro was asked to bring to
the committee the loose.leaf record
or the deposits OF the Scandinavian
American bank and other banks in
Fargo, after Mr.. Cathro had enunciat-
ed as the policy Of the bank in max.
ing redepOsits to distribute them
without favor. Mr. Cathro said that
this was what he had tried to caution
he committee against-divulging rec.
ords of relations with banks which
might tend to hurt confidence in
banks. A recess was taken so that
Mr.. Cathro might get the record.
During the interim Mr.. Cathro con-
ferred with Attorney General Lemkc,
Secretary Of the Industrial Commits
sion Fl. A. Paddock, Senator Baker
and others, remaining in the court,
room where the hearings are held un-
til Chairman Grangaard called the
committee to order at IL: As am.
Have you the records asked for?'
Mr.. Murphy asked, enumerating again
the records asked for.
Mr.. Cathro asked permission to
have correspondence relating to the
$1,000,O00 loan negotiated last sum.
mer, read into the record. This was
granted. The question on records
was repeated.
Cathro's idea
IT have used my utmost endeavor
to furnish information you DESIRE"
said Mr. CathrO, to the committee. Il
wish the committee could realize the
import of the question you ask. The
banks of the state are built on conf
dence. If you destroy that confidence
you would destroy the banks. If you
start on one of them you open up the
whole proposition. And i believe you
fail to realize the seriousness of the
question. That is about the only
thing that should be kept confidential,
not so much as the confidential relRs
tion between the Bank of North Da-
kota and these banks but as it affects
conditions generally"
"This is committee of the house
of representatives inquiring into
affairs of public institutions"
said Mr.. Murphy. "The only thing
asked of you is the one matter re-
garding the Fargo banks. Will you
answer the question:
To ask Commission
Mr.. CathrO wanted to ask Mr.. LEM
ke if he might answer the question,
but Mr.. Murphy suggested that there
were others on the Industrial Com
mission and that if Mr.. Cathro desir.
ed to take the matter up with the
commission the committee would give
him all the time he desired"
After MIR. Murphy had asked the
distance from the courthouse to the
Bank of North Dakota; and Mr., Cath
70 had answered -four or five blocks,
Representative Johnson made his at
tempt to amend the rules of the com
mittee. .........
Representative Johnson, OF Ward.