Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-16

"A. Yes, sir.
g. And you concurred in that?
A. Yes, sir.
g. Well, this report from which
l AVE been reading was then follow
ed by a supplementary report Of a
later date, Exhibit AZ, was it not?
A. Yes, sir.
Q. Signed by yourself and Mr.,
Thatcher?
A. Yes, sir.
y. In which vas set forth a COM
parlson of financial statements of the
Scandinavian-American Bank of Far
go. That is, 0 compared the find
ings o. Mr.: H~aldorson as of Septem-
per ~ and the findings OF yourself
as or October 2. did you not?
A. Yes. sir.
q. And I assume you concur in
everything that was said in there by
Mr.. Thatcher?
A. I do.
Q. This statement as to the Sisal
Trust loan-(reads) These parties
nave at just this hour hat this re-
port is being paid their notes in full"
You concurred in that, did you?
A: Yes, sir.
Cahtlrs Bank.
@. The record here shows Mr.
Lofthus. that the Bank of North Da-
kota is carrying $~14,539.S7 worth of
certificates of deposit of the Peoples
State Bank of Leith, issued originally
to J. I. Cahill, Frank P. Ehsch and
Adolph Zeller.
Q. Who is j.. I. Cahill?
A. He used to be state senator.
@. What is he now?
A. He is on the board of admins
t~ration.
O.. And Exhibit 6S. which you
handed to me is the last statement of
the Peoples State Bank of Leith, is
it not?
A. Yes, sir.
O.. That shows, does it not, gthat
as Of December 10th, the Peoples
State Bank of Leith had footings of
$%95,79O.S7?
A. Yes, sir.
O.. They had, including individual
deposits, guaranty fund deposit, time
certificates of deposit, and cashiers
checks outstanding a liability of $751;
2S0.S7, did they?
A.. Yes, sir.
@. And bills payable of $4,000 OF
that date?
A. Yes.
O.. And they had actual cash on
hand of $5S.94?
A. Yes, sir.
Q. And cash items of stills?
A. Yes. sir.
@. And due from other banks onl,
$s9s.77? ::
A. Yes.
I Had Small Sum.
O.. So if a man drew a check or
them for a little owe a thousand dol.
lars it would have busted the bank
wouldn't it?
A Yes.
Q. That is the bank that has s14,.
600 of certificates Of deposit ovel
here in the State Bank of North Da,
kota, isn't it?
A. l presume so.
Q. The record shows also that thi.
same bank. Mr.. Cahill's bank, ha.
borrowed $4,000 from the Bank o
North Dakota-the Peoples Stat,
bank of Leith?
A. Yes, sir. That is a loan.
Q. Yes. And the c. DIS hat
read TO you, Mr.. Lofthus, came from
the Scandinavian-American bank o
Fargo. and were put up as collatera
to their loan. Now the situation i
something like this: The collatera
to that $4,000 loan consists of certain
notes-I' didn't know but what thi
would be interesting to you-Mr
iAiAoNAAs Soo oIASC - I'll r1O{ vow
Frank P. Emsch-do you know VIII
he is?
A. No.
@. Well, he is evidently relate,
to Mr.. Charles Emsch who signs thi
report. He is down here for $41
and $1,2o2. And you notice hat J. J
Cahill is down there on his note?.
A. ]. l. Cahill?
Q. Well, it is J. J.. here, but i.
I suppose meant for J. l.?
A. Are they the makers?
Q. Yes. they are the makers. Her
is Wright c. Emsch for $1,4OO-an
other of the Emsch family. l woul
like to call your attention., Mr.. Ex
aminer, that in that same bank in ad
dition to the loan of $1,000, to whic
I have just called your attention, tn
Peoples State bank Of Leith had $1S,
095.22 of redeposits, did it not, appar
emily?
A. Yes, sir.
@. And of course thai is offset t
some extent because they had depos
it's with the Bank of North Dakot
of $2,453.31?
A. Yes.
@. Leaving a net liability of ar
proximately $4,000 on redeposits?
A.. Yes, sir.
@. And $1,000 on loans?
A. Yes, sir.
@. A total of $4,000?
A. Yes, sir.
@. A bank hat has not a thousan
dollars in cash in it?
A. Yes, sir.
@. Would you consider that goo
banking?
A. No, sir, but conditions are sue
now that many of the banks haven
the required reserve and no attem]
is made to compel them.