Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-06-27
CAIl1R0'S TESTIMONY DURING
{ EXAMINATION BY IuElSUEUR IN
4. PERJURY TRIAL OF BRINTON

Bismarck. N, D., june 27.-Fouow-3
inE II part Of cross examination OF r.
W Gathro bysArthur Lesueur In the
traalSof :. y. Brtnton Saturday:
After MI. Cathro had tAstined that
he had met Mr.H. j. Hagen of the
SCANDINAVIAN American bank in III
lobby OF the Mckenzie hotel and had
2 conversation with him in which he
told him he did not want him to sand
mp q league paper1to the Bank
g North Dakota. Mr.. LeSueur cross
tnaned him relative to the $3S3. 900
,v,arth ct paper which Mr.. Cathro tes-
Ly.led Mr.. Hagen thereafter sem up
70 the Bank OF North Dakota for re-
Haecm's IekAer.
q. Now ]. notice in Mr.. HAgen'sI let
tar to you--and you will probably I'M
derstazfd it better than I do-this
statement:
TN accordance with our recent
conversation, I am enclosing for
rediscount our bills receivable en-
dorsed and guaranteed by this
bank IN the sum OF $333,463. SO.
Please deposit to bur credit"
9. Now do youssay. that was not in
accordance with your conversation /?
-.HNhe~e - N"0o NASSANkOAy uOJ LII 0SNOxu !.
anco with our conversation.
9. He says further, II am enclos-
ing also resolution of our board Of
directors, duly adopted and of record
authorizing this transaction. Should
some OF. these notes be unsatisfactory,
We wiz replace them with others. We
hold, for your account farmers notes
md postdated checks in the aggre-
SSEAtesamountvof $500. 900 .00=to protect
!sahe above bills receivable. We will
Ssproceed with the collection Of same
GAnd remit proceeds shoulA-such COLI
lection be made.prior TO the maturity
SSof the notes which they secure" Now,
taking that last paragraph I'VE hold
aafor your account farmers notes and
amount of $500. 100000 to protect the
above bills receivable" il that in ac-
cord with regular banking practices
TO make q loan and allow the borrow
Eng bank to hold the collateral?
A. That was not ii accordance with
my conversation, with Mr.. Hagen:
No Collateral Sent.
IL Q, And was that ever done with the
Observation-Disclosures bank to hold
collateral pledged for security, to your
bank?
Q. You swear that that was neve,
II "A. C0tlAEefdl may nave. been sent
them fprscolection, but 1.don't know
that theyswere I'VE allowed to- hold
4 o.%What Is the difference between
Sanding tt for collection and holding
i A. A good deal.
Il Q. He say here 1--WE hold the pledge
Sof the National Nonpartisan league
and the United Consumers Store.
company, both OF which assign ant
guarantee all collateral notes .ant
Apost-dated checks. We enclose state
9Sd11ent of the Consumers United Storei
company."
A. That was all Numerically on
posed to what I asked him to sent
O. And there was no conversatio,
aabout the United Consumers storel
company? p a.
A, I told him not to send any Unit
tased Consumers Stores paper.
q Q. Eotseven as collateral?
IS A. No. =, -
81 A. And you did have a converse
as3ion, about that, then? >,
~ A. Istold hiu to send no paper tina
would be considered in any way a.
allied With the league activities, post
slated checks or anything else.
. Q. Did he say anything about tn
XDnited Consumers Stores Co.?
A. He agreed with me at that time
@. Did he a anything about TIN
United Consumers Stores Cot
I A. No, sir.