Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-01
House Committee
Ends Hearings Ii The
Probe Of State Industries
scontlnasd rom pas. =,

Detall No. I, Sslows deposits
which include public t~rca0urcrs
open aOcounts t0taling $16,455..
1876. Other liabilities include
chshiers' checks, appraised fee
/. deposits amounting to s147,sos.-
In q snmmaFy.of the r
it is found that there Is slow paper
which include items mast due.
farm loans, bonds OF the bank 4
series and supplies to totaaiae
$7.074,0S3.60. of total resources
listed rs Of December 3rd, 1870,
Of 18a8SO.l 1855.
Surplus and profits IRE listed At
$180,33S.57 with no deductions
for any losses that may be suffer-
ed as . result OF funds tied up In
closed banks.
Analysts Impossible
In regard to the Home Building as
report, he said frankly that
no analysis. was possiblei since the
report was practically useless rs far
Of organization might be. The usual
custom in such cases. he said, was to
keep track of the cost Of each house
and compareit with the contract cost.
but in this case nothing OF the sort
was possible.
In his analysis of the Mill and Ele-
vator association report, Mr.. Temple
found, that the organization had a
deficit OF Owe $4,000 instead Of S17,-
SOS as was shown. In the report of
the industrial commission, which was
w. Thatcher Of the Equitable Audit
company Of Fargo.
He arrived at this conclusion, he
said. from the fact that there was
$15,08S of organization expense for
which no return has been received
and which must therefore be counted
az q deficit.
Bank Statement Declared Faulty
lie also presented a large mass of
figures in connection with the payroll
and other overhead expenses OF the
Drake mill.
In connection with the statement re-
garding the Bank Of North Dakota.
Mr.. Temple declared that this was
faulty for the reason that no mention
was made of the fact tina Of the
the capital of that institution was
based. 100000 had been ,hypothcc-
ated with a Chicago firm. \
The state legislature in creating the
bank, he said, had intended that the
bonds should be sold and the proceeds
used as capital, with the state as sole
s~tockhoider. The bonds should be
shown as an asset of the state in tho
Bank of North Dakota as a part of
the bonded Indebtedness OF the state
on the books of the state treasurer.
In addition to Mr.. Temple, A.. J.
Winter, banker of Werner, n. D., was
put on the stand and testified briefs,
how his bank had been promised. So
600 Of redeposits OF public funds to
secure working capital furnished to
the Werner Cooperative Creamery,
when that establishment was taken
over for experimental purposes by the
state. The redeposits, he said, were
still in the bank.
Thomas Hall, secretary Of state, on
being called to the witness stand, iden-
titled a long series of letters in which
Mr.: Lenke had arranged for the in
corporation Of most Of the Nonparti
san League weeklies OF the state.
The senate whitewash committee
had intended to devote last evening to
cross-examining j.. r. Waters. whose
testimony regarding the relations of
the Bank of North Dakota and the
Scandinavian-American Bank of Far
go, n. D., given before he tainted at
the house hearing last Saturday, fur
nished n of the big sensations Of the
present session.
Contempt Threats Made.
Mr.. Waters was not sufficiently re-
covered to answer questions tonight.
however.
A. A. IAcderbncll, chairman of
the senate committee, intimatcd
asst night that, If Francis MUIR.
ply and j.. F.. Sullivan, attorneys
for the house committee. obeyed
n instructions given by the house
committee and continued their re-
fnsal to appear before the senate
committee, they would be cited for
contempt of the senate.
During the session Of the senate
whitewash committee yesterday after
noon, H. A. Paddock, appearing this
time in his capacity as secretary Of the
industrial commission, than
his own satisfaction, at least, in add
ing $780, 900 to the assets Of the
Bank Of North Dakota.
A simple Transaction"
1t was very simple, as Mr.. Paddock
check to the state treasurer for $780,
900 for Interest on the bank series
bonds. AS the bank had bought the
bonds from the state industrial COM
mission, 1t was now the owner Of said
. bonds, and as the law provided that
the capital of the bs nix was to be the
proceeds from the sale of the bonds,
the bank as present holder of the
bonds was entitled to said interest. In
addition to this, the interest vas pre-
paid. Paddock pointed out, so the
bank was entitled to some interest on
the repayment, too.
Drake Mill Employees Heard.
As grand master of ceremonies for
hthe hearing, Paddock put several en-
ployes Of the Drake mill on the stand.
They declared that the. auditors OF
Bishop Brissman & Co had not actu-
ally counted all Of the sacks Of bran
/, on hand a the mill at the time Of the
audit.
Mrs. Rose Kellar, bookkeeper Of the
Drake mill, was put on the witness
stand to swear that the Bishop Briss-
man & Co.. men had access to all the
records of the mill which were in her
possession at the time Of the audit.
Certain records. she admitted, howev-
er, were in the hands of the Equitable
Audit company. q.
Testimony presumed to indicate that
banks of the state are guilty OF
nefarious boycotting Of the Bank OF
North Dakota was introduced near the
close Of the senate audit committG
hearing.
Rufus Tree. county treasurer Of
McHenry county. placed on the stand
identified drafts drawn through local
banks on the Bank Of North Dakota
for sums totaling $500. He testified
that the CHECKS came back marked