Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-04

aEkALD, FkDAY, FEl
q. And they are flied therein the
bank? IA. Only copy that I
know OF is being filed. Y;
@. What Is; being done. with "a, the
other copies?. A. The only perma-,
nent fle Is tho one that is passed to
my desk.
q. Your personal desk? A. Yes.
custody of the permanent Ale Of the
daily trial balances? A. Yes.
Would Produce Records.
Q. Now I will ask you II you will oe
kind enough to produce for the ex-
animation Of this committee-if you
will make q note of what I want--the
daily trial balance Of the bank as Of
Dec. 3. 1920, and the daily trial ball
ance Of the bank as of Feb. l.
1921 and the daily trial bal
ance as Of April l., 1920. Could you
what disposition will be made of
these. will they be returned to me?
to YOU. A. In other words I have got
to make copies. 1 do not want to
break by file.
Mr.. Lemke: You understand, with
the onsen OF the Industrial Com
mission which they undoubtedly. will
give yOu.t& Jrs :tfs &sh. .@SE "t@f u
Q: You, make that reservation?
Q. However. you and I can agree
on this, that it won't disturb the func-
tons of the bank at all for Us to look
feel disposed to offer every courtesy
that is possible without interfering
with the activity OF the bank.
Q. And It would lot impede the OPP
tefetion.of, the hank If these three
trial balances are brought down here
for thu examination ot,Ethes commit
Mr.. Lemke: i might, Say tia. 6 you
the nsatter of the Industrial Commits
sion minutes. You can go over and
examine 1t.
Mr.. Murphy: Well, I might say
that the committee is conducting the
examination. and not council. and
they might want them here.
|, Q: Now. Mr.: .Cathro. when this
bank opened, July %. 1919, what was
Q. When. IL. at any tinae. did it &C.
auire any capital? A. What is that!
@. When did it acquire capital?
A. Some two or three weeks later
probably, later than that date.
Q. SO then it operated from the
date of its opening. July %, for a
period of two or three weeks without
capital? A. Well. 1 don't think II
was quite that long, but a few days al
least.
Q. When it did acquire capital
what was hat capital? A. Cash.
@. Cash-money? A. Yes, sir, O.
its equivalent.
G. We'll, let us distinguish if ".
can between cash, Or its equivalent
Was it actual cash money. OF was !
something representing money? "A
1t was a check. e
@. From whom? A. From nysel
as manager of the bank.
Q. To whom? A. The Industrial
Commission.
@. The capital consisted Of a checl
from MIR. F. w. Cathro as directo,
general of the bank to the Industria
Commission of the state of North Da
kota did it? A. Yes.
@. What was done with that check
A. Well in place of cashing tina
check as they could have done. the,
Bank of North Dakota.
@. Now. that check was drawn up
on the funds of what institution. A
Drawn on the Bank Of North Dako
ia.
Q. Drawn by you, as director gen
eral, upon the Bank of North Dakot
and. made payable to the Industria
Commission? Yes.
@. The Industrial Commission en-
dorsed it and returned and dcposite
it in the Bank Of North Dakota. A
Yes.
@. Now, upon what fund, if an,
was that check drawn In the Bank Q
tNorth Dakota? A. The same as an
check. any investment. Of: any ban
for any purpose. is drawn. -
@. Just on the general fund? A
the bank. The funds have lost thei
identity when they passed over tn
bank counter and become merged /
the common fund.
J, Q. In the general fund? A. Ye'
sir.
Q. That is true. and this check wa
drawn on the general fund? A.. Ye'
Q. And the funds that were in tina
general fund were almost entirei
moneys Of the public subdivisions c
tn estate; wore they not? A. iWhe
the bank received these deposits fror
? the ~treasurers over the state and "
agreed to pay interest. the ban
found itself obligated to earn som
interest.
@. No, you don't answer my que:
!, ton. A.. I think that will nswer i
4 T.. My question Is, that this chec
YOU say was drawn upon the gener:
fund of the bank, which consisted {
the deposits from all sources that ha
, come into the bank. That is correc
, isn't IT? A. No. that is not correct,
@. That. Is not correct? Well. upo
Ewhat fund was it drawn? A. It WASH
drawn on any funds checks arc ne,
J. er drawn that way.
@. Well, have you got the check
A. I presume it is in the bank:
don't know.
: Q. Will you make a note, and prt
I duce it If. as I assume it won't ii
~terfere with your operations? !
l Checks are never drawn on funds
: the bank.
@. No. I understand that. 1t wa
! drawn on the bank just like any othe
4 check? A. Yes.
Q.>Apd no actual money ev.
2 changed hands between the Bank
North Dakota and the Industri'
Commission in that transaction?
I Well. that question is misleading. I
n No Actual Money. '
@. Well. I am asking you the que
0 ton and If 1t misleads you In any wa