Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-02
CATHRO TELLS
HOW FUNDS WERE
DISTRIBUTED

will just take Exhibit 126 and turn
to Cas- county, please. You have that |
part Of it relating to Casst county be-
fore you, have you; Mr.. Cathro?
A.. Yes sir.
Q. What is the total shown. to be
redeposited in the bapks Of Cass
e0a a. ;4~s4, sos.s1.
@. Now what are the amount Of !
loans and discounts in the banks Of
Cass county?
A. $1S1,1S9.8l.
q. I take it there are no farm
loans down there?
A.. There are not. i
@. What is the total amount !
shown as due to all ~treasurers within
the county?
A. 3%33o,sss.1s. \
@. What. is the total amount that i
the Bank of North Dakota has main
A. $615. 396.12.
funds? :" 0"s sN''ss PUBIC
a. s~2o4.4o7.ss.
@. That is the excess Of public
funds in Cass county oyer and above
rt~reasurers? A. 1t is.
Q.,sNow of that sum Of $434,206.31
what amount is redeposited in the
Observation-Disclosures bank?
A. .s229,SS3.o5?
9: And what amount is redeposited
in the Peoples State bank Of Cassel-
ton? A. $6s,osS. go.
! Q. And In addition to the amount
r~edeposited in the Scandinavian-Am-
erican bank what amount. was loaned
to that bank?
A. $176,189.81.
the loans in that. county the Scandi-
navian-American bank on January
~, 1921, had $175,189.s1?
/; A. They did.
q. That is. there vas only $4,000
that went somewhere else?
A. Yes sir, that is right.
@. And where did that go?
A. To. the Prosper State bank of
Prosper.
u. @. Now I will call your attention
to the sheet marked Williams county?
What is the total amoun of re-
deposits in Williams county?
A. $34s,372.24.
O. And of that amount how much
was redeposited in the Williams
A. $~124,145.07.
Q. What a the amount of loans
and discounts?
A. 4%45,59O.72.
@. And of that amount what were
the loans and discounts to the Will
l1aunS county state O8Nk
A. $144,663.72.
@. How many banks are there in
that county?
A. There are thirty-two. Re-
discounts. however, are not granted to
banks that don't ask for them.
Q. Well, I have no doubt of that.
Did you send anything out, to banks
without their asking for them?
A. We did redeposits.
O. Wall Vnl1 UrlV11nst ~oolya -
loan to a bank unless they requested
it? A.. Certainly not. I thought the
character Of our question would in
dictate that rediscounts should be ap-
portioned the same as redeposits.
Q. Well, your answer would indi-
cate that If a bank, no matter what
its condition was, should ask you for
it. you would rediscount their paper
merely because they asked it. Is that
the idea?
> A. Oh, no, not at all. :.
@. Well, you know the Williams
County State bank was and had beer
insolvent for some time prior to the
time these ~rediscounts and redeposits
were made. didn't you? Hadn't you
!, heard about the condition Of that
bank up there some time prior to the
time you made these big loans and
r~ediscounts with them and redeposits
; with them?
/ A. If the bank had sufficient elig-
ible collateral in order to entitle them
reserve it would be a proper loan to
make.
@. Now as an abstract proposition,
I agree with you. but I am asking you
not for an abstract
A. That was the course adopted in
making Of loans to banks.
. Q. I want you to answer my ques.
| <{4- ~ 49, Hn~41s-~ 49,, At -
r cific bank. the Williams County State
bank. and 1 am asking you if you
didn't know that at the time the Bank
of North Dakota made these re-
deposits n loans and ,rediscounts
+, with this bank, that it was in bad
: condition?
!! A.. Well. not necessarily. Any. bank
: that wants to borrow money is no.
I necessarily in bad condition.
l @. Certainly it is not necessary that
: because a ban wants to borrow
money it is necessarily in bad condi-
: ton. 1 agree with you. But 1 am
: asking vol II
I A. That is your question.
Q. 1t is certainly not my question
I am asking you, Mr.. Cathro, as di-
rector general Of the Bank Of North
: the time this bank Of which you ARK
director general, were making these
huge redeposits and huge loans and
rediscounts that you did make tc
them. that that bank was in poor
condition?
A.. No necessarily.
. @. What do you mean when you
, say moi necessarily"
A. They had eligible paper for re.
discount.
@. Well, set the r~ediscounts aside
and we will talk only Of the re
deposits. Would you %redeposit in a
: bank you knew was in bad condi-
ton?
| A. No, I think not.
3 Q. You wouldn't do that as a mat
e ter Of policy?, 49,,
A. No.
8 @. Well. what do you know about
the condition Of this bank?
A. I cannot give the details of it
. at this moment, but the major por-
+, ticn Of this fund vas found there. !
couldn't tell you offhand how much
was found there, deposited by former
. treasurers.
@. You think that is true?
A.. Well, it is true in the main. ]
. am not prepared to say whether all
Of this vas there.
@. Do you want to state as a fact
! that even one-third Of that redeposit
was found there? Is.
A.. Now in the case Of the Scandi.
navian-American bank, In which the
situation is somewhat analogous, al
. the redeposits in the Scandinavian.
American bank except $4,000 and
some cents were found there.
@. Certainly, because you know
I and I know that the Scandinavian.
: American bank had the agriculture,