The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-23

tne mousse committee. He was
before the senate committee late
ng made of records Of the Home
committee.
What Waters Said
In seeking to establish the first
conclusion outlined above, the com.
nittee counsel used this procedure
MIR. McAneney, credits depart
ment director of the Bank of
North Dakota, said that he would
not have made large loans
/ to the Scandinavian Amer.
lean bank when it was
in the condition he knew it
was, and that the obligations of
that bank represented other in.
fuence. A. Johannsen, audits
department director, had testified
that he would not have made the
deposits and loans as he knew
conditions of the bank. Mt,.
CathrO is the only other member
of the finance committee Of the
bank. J. r. Waters, former man
ager of the bank, had told Gov
ernor Frazier after Jan. l, 1920
Of the condition Of the Scandina-
vian- n-American bank and had
conveyed his opinion that the
banks condition was rotten"
according to the testimony,
Before Waters resignation was
announced he had written q let
ter to- Governor Frazier making
certain demands which he said he
did not expect to be granted and
! which he expected would cause
his resignation. .,.'
How Bank is Said Short
In reaching the second conclusion
he committee counsel took this
1ethod: a
Mr.. CathrO was asked to figure
the liquid resources and liabilities
of the bank upon the basis of the
Feb. Is statement, deducing ST.
25O,000 estimated redep0sits and
loans tied up in closed banks, and
deducting sinking funds other
than state, and obtain the condi-
ton the bank would be in if it
were liquidated or put on cash
basis Immediately. The figure
showed the bank would be short
$2,197,329.14. Mr.. Cathro differ.
ed with Mr.. Sullivan as to the
latter's Interpretation of the law
regarding sinking funds. Under
CathrO's Interpretation, on the
same figures, the bank would be
u million ahead, he said.
The Florida Visit :
Mr.. McAneney told of his visit t.
lorida, which he said was taken al
er conversation with Ray Craig, then
tate manager Of the Nonpartisan
,ague, when Craig told him that he
nderstood true bill had been re-
lrned by a federal grand jury
gainst James r. Waters, then man.
ger of the bank, who was at Miami,
lorida. He saidshe made the trip as
friend Of Mr.. Waters. He said he
as not told and did not know if any
rue bills were ever voted by grand
Try.
Mr.. Waters, he said, told him that
e had written letter to Governor
razier setting out certain demands,
'hich he did not expect to be COM
lied with, and which he expected
'ould mean his resignation.
He told of visit made to Governor
razier with Waters after they had
isited the Scandinavian-American
ank in which Waters told the Gov
rnor his opinion Of the bank, which
as that it was "rotten." Efforts to
how Attorney General Lemke had
given by Waters failed.
Figuring on Bank
Just before the close of the morn
lg testimony Mr.. Sullivan brought
ut the Feb. Is statement Of the Bank
North Dakota and, with Mr.. Cath
, on the stand, asked him to make
as requested by Mr..
ullivan as to how the Bank of North
'akota would stand if it were immed-
.tely placed upon a cash basis.
After deducting all state deposits
nd sinking funds, as not being sub
,ct to withdrawal by treasurers un-
er the initiated law, and adding up
ublic general deposits, amount owed
epository banks, collection items,
nd bills payable, a figure Of $9,o72,-
1894, Of demand liabilities was
cached.
Mr.. Sullivan then had Mr.. Cathco
Continued on Page s.