Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-04
dustries, enterprises or business prof.
Gets OF the state"

AZ u XI18160I 11lN IlAOok JO1tV00IJ
guarded powers, to-wit: The appropri-
alton of moneys raised by taxation.
Under this provision this controlling
commission may appropriate h mon
eya in the Bank of North Dakota 10
any department Of state that it. in its
discretion, may desire, by the simple
e%xpcdient' Of the adoption of a rule "
resolution 1t may transfer 10 the Az
ricultural college. the insane asylum,
the attorney general. the commission
err Of agriculture and labor. the Home
Builders association, or any expert
ment station, any sum deemed wise.
regardless of special appropriations
made therefore by the legislative as
sembly. The statute carries no limita-
ton whatsoever upon this vast delega-
ton Of power.
Transferred Funds.
by way of illustration, there was
transferred by the industrial commits
sion Of the public funds in the Bank
Of North Dakota to the North Dakota
Mill and Elevator association. and up
to Dec. 3. 1920. the sum of $650,000;
to the Home Builders association the
sum Of $225,oo0. and to the state in
7l6.72. This last item. it appears. was
the sum advanced by the industrial
commission to one F. A. Pike. ar at
torncy at law, for alleged legal serv-
tees.
Further informalities were used in
making transfers. n h discretion of
the industrial commission appears to
have been expost facto. That is best
illustrated by the report of the state
industrial commission for the calendar
year Of 1920. filed with the secretary
Of state"
In this report. the committee says.
There appears an overdraft on the
Bank Of North Dakota in the sum of
S2~02,190.20." charged to the North
The explanation Of this items is in
the following language:
THE explanation Of the industrial
commission is quoted, this explanation
being to the effect that it was the pol
icy Of the commission to permit indus
!! tries under its control to overdraw
| their accounts and make a distribute
loans would be ordered to the specific
industry benefit. the commissions ex-
PLANTATION indicated that this system of
overdrafts was necessary to distribute
the cost properly. and on this feature
the house committee comments hat
it is indeed singular that h indus
trial commission could not learn Of the.
distribution OF the disbursements Of
the Mill and Elevator association be-
tween its t~hree>yarious activities with
out the use OF the system Of over
drafts
"As a result Of this power there has
been transferred in the Bank Of North
Dskots to public institutions on Feb;
rs. 1921. as shown by the daily trial
balance sheet of the Bank of North
Dakota produced by Mr.. Cathro, man
ager and director general, the sum Of
$~1,185,000.
Were Public Funds.
"Th plain and simple meaning of
this is that the industrial commission,
by the exercise Of the power afore-
! said, has transferred and transformed
$1,185, 900 Of money raised by taxation
to maintain the schools and other in
situations, n houses, mills and Gle
vators."
appropriations and bond issues
authorized and guaranteed by the
state to carry out the industrial pro-
gram n the moneys actually invest
ed by way of public transfers are fixed
in the committee report at $685.
s22.47.
THE grand total OF 31s,7ss.s2:.47
represents funds to which the good
faith and credit of the state of North
Dakota is pledged. This does not in
clude the state guaranty of bank de-
posts. and vast sums will be required
to raise the money to carry out the
provisions Of that act because OF the
large number Of suspended banks"
says the committee.
A Nioo Spectacle.
1t was disclosed that $4s,53O of the
bank series bonds had been sold up to
December ,. 1920, and between then
and February rs, ns21, additional
sales OF $s5,55o. The report COM
ments on the spectacle of having the
end rN-o rf Nnptb r1l->+~ L@ll -
to ridicule by the alleged offer Of
a most notorious swindler (Charles
Ponzi). who is under Jail sentence for
fraudulent use Of the mails. offering
his service in the sale of these bonds.
Also circulars spread broadcast by
f. G. Kittel. a former resident Of Cas-
selton, recently an inmate Of Learen-
worth penitentiary. 1t appears that
Sturgeon Odell and J. J~ Hastings
dispose OF these bonds"
Why They Object
The committee sums up reasons
North Dakota bonds as follows:
"First-Failure to provide any sink
ing and interest funds to protect those
bond issues.
"second-Granting abnormal pow
ers to the n ustrial commission and
the Bank of North Dakota to rams
fer and divert moneys Of bond sink
ing and interest funds to other pur-
poses" =
The loa that the Bank Of North
Dakota made of a million dollars of
"a Chicago bank is treated at some
length, and the point is made that
h loan was generally offered
among the bankers and investors far
and near, and was finally accepted by