Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-10
Peculiar, Deal Between
al Bank OF North Dakota
And Michigan Bank
.s.s.s Revealed At Hearing
tcontinued from paee ~

Rlstnaral-nowr? Mr.. Murphy asked.
I'M. replied Mr.. Cathro, although /
believe there IL an item Of $4,000 in
asBtsmarck bank
Ar. sCathro was asked to bring be-
fare the committee Friday the facts
regardinE draft Of $4,000 against q
A1trlarck bank. which the records Of
the Bank Of North Dakota arc said to
nave shown as being unhonored. and
IN regard to which the committee de-
stres further Information.
a.. Want Loan Figures.
I3e va a~lecsssked to bring in hg-
Observation-Disclosures in 1920.
J6St AAfeSAss tie hearing adjourned
Mr.. Murphy Agted II JourEen Olson
Of M1not, chief owner OF several banks
in the northwestern part Of the stats,
was present. *. ~
Olson Absent.
Mr.. Olson failed to answer, and Mr..
Murphy asked to have the records
show that Mr.. Olson was ~subpoenaed
to be present at $3.50 o'clock this
morning but had not shown up.
This ended the hearing OF the house
committee tfos- the day.
In the senate chamber this after
noon, J. W. Brinton will again be on
the witness ntAnd, ard 1t IL expected
that e. r. Stnkler will continue his
ecss&-"e1anination regarding his
charges against william Lemke and
other league leaders In connection
Slarth Dakota.
VIZ Wednesdays Testimony.
asRrinton's testimony before the house
investigating committe on Wednesday
tt9Nows:
a. - k0~~> No. NJ NEn-~A-
Nd. Nj. Brnton. n your exAmina-
y yesterday. M I remember 1t. you
NAfed Iha&substance that there was
~ e~mbexxlement in the Bank Of
ASrth Dakota. You also stated that
ga, charged Mr.. Cathro with embeH-
M0nent. There Is an apparent incon-
1@fency there. I believe. and I would
4k you to explain Just what you
IRsAnt by those two statements?
"a. charged Mr.. Cathro with
&Sxlement on my information received
nssm Mr.. Waters and other employees
0athe bank regarding certain money
that was paid out OF the bank. that
GsMs represented to M to be covered
III on the books. and instead of being
Maid In the regular way with a check
NSsvas paid In currency and carried by
4@aFneasenser. That Is the only item
tnet 1 referred TO in charging NJ. Ca
40 Win embexElement IN tho bank,
&Sept as an officer Of the bank in
slsting there n making arrange
Assnts and allowing the money to 90
DIT of the bank he was a party TO the
SaAbezzlement that later tool place
When the actual money was turned
Over at Fargo.
80. Now, referring 10 this money
ftfAt you say was sent by messenger.
RHll you please tell US h source Of
yoAr Information OF that subject. Mr..
HSanton7 Who told you thnt7
sss Says Waters Told Him.
"A. 1t was told to me by Mr.. Wa
tess and Mr.. Ma,ey Townsend. Z
I'D. Will you tell US who
aaA. That included. I think. four
lMerent transactions. 1 also had in
{8fmation sort Of confirming this
S&6m Mr.. LigEett. I don't think there
Wis any dispute this particular
S@bexxlcment because Mr.. lAggett
tGd mo that in conversation with Mr..
Eastingn, who received the money.
&&t he knew the e~mbs:xlement had
Gken place IN thcrc. and 1t wasn't a
dSeession OF whether or not the embeE-
$&6naent had taken place, but It seoms