Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-25
Interesting Testimony
Given By Starry Regarding
Dealings With n. d. Bank
.lContinued from pare i,

from the Conway storage company
among these were loans amounting to
some $4,000 from the Michigan city
bank Of Michigan, N. D. and the bank
1t had previously been shown by
the Bank of North Dakota audit that
notes of his concern amounting to
had been discounted by tho Michigan
City bank with the Bank Sof. North
Dakota.
Tho witness also produced q letter
from q. E. Lofthus. state examiner.
giving the opinion that loans on ware
house reGetptsS for automobiles were
legal for a bank although in excess Of
Is per cent Of its capital and su, plus.
Asked as to how he had pursued
small, banks to make, such large loans
he. answered.
Waters Gave Assurance.
II saw MI. Waters about 1t and lie
said the Bank OF North Dakota would
take any paper that q good slbetan-
tial bank had endorsed. 1 told Oryik
this" -
(, Mr.. Orvik was n of the officers of
the Michigan City bank.
Questioned as to his relations with
the Nonpartisan league. starry said
that he had sold a large number of
automobiles to the league leaders, or
ganizers, etc, in the early days of the
organization, including A. C. Townley,
J. w. Brinton, j. r. Waters, r. A,
Bowen and others.
He had accepted farmers notes
p%ostdated checks, ETC.. in payment he
said
Starry also admitted that although
tn narenvuse receipts which were
the Bank of North Dakota's security
for the money advanced to Michigan
City bank were issued on certain
specified cars, he had frequently sold
W "'rt'rN'er cars in question, reulac.
Ing them other just as good.
Il Arrangement was satisfactory
to the Michigan City bank he said.
- Starry claimed that his only dealing.
with the Bank of North Dakota was
his conversation with J. r. Waters
when the latter agreed that bank
would discount his paper. He cor.
rected his original testimony on thi.
point saying that the conversation had
taken place over tho longs distance
telephone, Waters being in Bismarck
The conversation he said took place
in March 1920. apparently only a
short time before Waters gave up the
active management Of the Bank Of
North Dakota and went to Florida.
Follkcs' Testimony Interesting.
The testimony Of L.. l.. Foukes OF
the Security National bank of Valley
City was interesting. Testifying as tc
his reasons for refusing to honor
drafts from the Bank of North Dako.
ia vas interesting.
Mr.. Foukes said:
president Grady instructed MI
that If any drafts from the Bank Of
North Dakota came in. 1 vas to senc
them back with a notation hat they
would not ho hNnnraN until a corfoir
agreement was lived up to-"
TAKE Investigation.
This agreement he said related tt
loans made on certificates Of deposi
from several banks, the exact amour
Of which he could not remember
Among them he said were two certif
Gates for $3.50 each Of the American
Exchange bank of Watford City ant
one from the First National bank O.
Plentywood, Montana.
When drafts were drawn by tn
state bank Mr.. Foukes said he sinlpl.
wrote. to Mr.. McAneney, director Q
credits. calling his attention to tn
agreement in question, and some SIG,
900 of public funds, one thousand dol
lars more than the amount loaned o.
notes Of six league farmers living nea.
Valley City, remained in the bank.
One of the enjoyable features Of tn
hearing was a near personal clash be
tween John Sullivan, of Mandan, at
5 torney for the house committee, am
| Mr.. Paddock.
When the committee instructed tn
marshal to eject Mr.. Paddock unles
he subsidized. Mr.. Sullivan wanted t
know why bother the marshall" an
indicated that he was willing to do
. himself.
, Taken all in all it was an enjoyabl
occasion.