Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-21
Thatcher Testimony
Regarding Affidavit
On Bank At Fargo

10y N2I. n1uIpnya> lou comment on
Examiner Halldorson's report and say
Examiner Halldorson reports a line
of credit to the United Consumers
Stores company $4,000" you say
this Is a misstatelnent as the loans
are made to several individuals and
the notes of these individuals are
secured by farmers notes." So;
Nj. Thatcher: Yes, sir.
Q. Now, you knew, did you not.
who those individuals were? You
must have examined to find out who
the individuals were?
A. Well, I was more interested in
the collateral than the makers of the
notes.
.. But o were speaking of the
notes, too. You say Halldorson's
statement that that money was loaned
to the United Consumers Stores com
pany is a misstatement because you
say the loans were made to several
individuals and the notes of the indi-
viduals were adequately secured, now
who were the individuals?
A. I don't recall.
Q. Well, you knew who thsy were
at the time you said that?
A. Well, I do know this, that they
were accommodation notes.
Q. And you knew those individ-
uals We're either league employees or
employees of the United Consumers
Stores company?
A. 1 don't know, some Of them
were as I remember it.
@. All of them were, weren't they?
A. I don't know as to that.
.. Well, didn't you make any in
quiry az to who these men were when
making this audit?
A. I presume l made all the in
quiry necessary, but I can't recall all
of this detail you want to go into a
year and a half afterwards.
Q. Well, does it tax your men,
Dry at all, Mr.. Thatcher, in the face
Of the fac Of your long acquaintance
with these men? You knew perfectly
well when you read the notes-these
accommodation notes that were in
there, that as a matter Of fact. they
were all of them either connected
with the Nonpartisan league, League
Exchange, the Consumers United
Stores company, the National Publish
ers' Service Bureau, or some one of
these allied organizations?
A. They may have been, all or
most of them.
Q. And you knew that the money
on that loan or the loans Of $4,000
actually went to the Consumers ,Untt-
ed States company, a corporation?
IA AZ NS ASs ~ ~S - "
do with this statement here.
@. Oh, yes, it has. Mr.. Halldor-
son told the supreme court in his re-
port that this bank has loaned the
Consumers United Stores company
$40, 900 and that is what it amounted
to-, and you told the supreme court
he made a miSstatenlent you
say it wasn't loaned to the Consum-
-ers' United Stores company, it was
loaned to individuals?
A. That is the, statement
On Different Subjects.
O.. Now, doesn't it make some Diff
ference, when you knew as a matter
Of fact, that that loan was made to
the Consumers United stores COM
pany, and that concern got the mon
ey, and not the individuals?
A. I am not talking about whs
eventually got the money?
G. Well, 1 am. g.
A. I am not.
= o. Well, I am, and I want right
now to have you admit that you knew
that regardless of what .
A. / never checked this money in
to the United Consumers Stores COM
pany.
his OPINION.
=. kV1LACOAV NANOAAu my
YOU knew that WAS the method
adopted by the Consumers Unit
ed Stores company?
A. 1t wa my opinion that
these accommodation notes led
that this money went into the
United Consumers Stores COM
pany. y.
20. And it was your opinion at the
<s->1 ~,@, -nAa> <h>k ~A~~u% 20 &hA c~,
preme. court, too?
A. What?
@. This same opinion you now
have expressed you had at the time
you made your report to the supreme
court, hat the money or these ac-
commodation notes led to the Con-
sumers' United Stores company?
A.. My statement is that Examiner
Halldorson's report
@. I know what your statement
is.
A. I know, too, that is what I
have to stand on. !
Didn't Understand. 4
@. I know, but If you will answc
my question, your standing wont be
so good. This same opinion you now
have expressed you had at the time
you made your report to the supreme
| NouAL LlAoI - ! 4AAOASy VIA SAO<C o~-
commodation notes led to the Con-
sumers' United Stores company, do
you understand that?
A.. No.
@. You just told us a little while
ago that in your opinion the money
that was represented by these individ-
ual notes you were talking about Jed
to the Consumers United Stores come
pany? !
notes. .
Q. Yes, surely.
A. But the loans were made to
these individuals.
G.. Well, that was a mere device,
A. I can't pass an opinion on q
device or anything else, because that
is regular banking business. :.
@. That Is regular banking busi-
ness? Z
A. Absolutely. You can't GO intd
any bank but you will find accomlmo-
dalton paper. 4 ]
@. I don't doubt that. The: world
is full OF accommodation paper, and
especially the banks in North Dakota
but what I want to get at, you knew
the paper was merely accommodates
paper, and who was being accom-.
modated. Who is the accommodates
I gue3 you would call it-wasn't thu
Consumers United Stores company:
A. You are getting clear ava,
from the statement.
@. Well, you are getting cleal
away from any answers to my ques
tons, too. You understand me per
fectly, don't you? :
A.. I think I do.
Q. Well then answer it, IL you do
You say these were accommodates
notes, II they were. then somebod.
va accommodated?