Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-19
Testimony Shows
How Thatcher Was
Driven Into Corner
CONTINUED From Page S.

of the banks that were then cioseo 9
Didn't you?
A. Yes, sir. -,
@. In other words, you SAID
in effect and substance that II
your method Of computation E
correct the Bank of North Da.
kOta had u reserve in banks that
were insolvent and actually
closed?
A. That computation includ.
cd all the banks regardless oil
what condition they were In.
O.. Whether they were busted or
A. Yes, sir. I was asked up there
to give the figures the same as l am
asked here. I can add two and two
together or I can subtract them. l
don't know the condition Of these
banks.
@. Well, is hat true now, about
what you were asked up there? Are
you trying to give was the impression
that you were no the gentleman VINO
framed this all up, you don't say that
my friend Sinkler did anything like
that?
A. This was extemporaneous. I
was handed this report and asked to
give these figures.
@. You are not an e~xtemporan-
eous auditor?
A. 1 am, not.
@. And when they asked you to
do something extemporaneously, you
don't want to be responsible for what
you say or do?
A. I want to be responsible for
anything l say or do, but if l have q
qualification to make, l want to make
it.
@. Your work consists of about
one-fifth work and four-fifths quail
fications, as a rule?
A. If it is necessary, 1t does.
@. New let's see how that came
about, because 1 don't want the news
papers to get any false impressions
Now, Mr.. Sinkler said to you, after he
identified you: And as such public
accountant has it been your business
to audit banks and other institutions?
And you answered hat it had?
A.. Yes.
Q. That was true, of course?
A. Yes.
@. And he said: @. Mr.. Thatcher,
have you had occasion to look at the
report of the Bishop Brissman & Co.?
and you said very little?"
A. Yes.
Q. You haven't seer them at all
A. l have, but not very much.
Q. Now here is this question: Q. ]
want to call your attention to page q
of exhibit S, and will ask o to tel
the committee, if you can, after max.
ing the computations, what the lega'
reserve Of the Bank of North Dakota
was on the third sday of December
1920. That is the question put to you
iby Mr.. Sinkler? @
A. Yes.
@. And you answered by asking
q rnofha rpNnctioN ~ NrypH11 V0py' enSI
Is the Bank Of North Dakota subject
to the same reserve law as state
banks? and you were informed tina,
it wasn't. That is correct, too? r
A. Yes, sir. "%3s
Q. Well, Mr.. sinkler says: @. No
there is not, but I want to figure il
under the law up to the first Of July
1920, that is the Law there. And 20,
answered: Well, o want me to fig
Dakota, December 3, 1920, based OF
hat law?
A. Yes, sir.
Q. On the 1915 law?
A. Yes, sir.
Q. And he went on and says: @
Based on that law and then l am 20.
ing to ask you to figure it based OF
the custom that was in vogue at thai
time. and then I am going to ask yor
" A6uAS IL O!lNCi l1Ac Id" IAdL WdS Ii
effect or that was passed at the 1915
session of the legislature. And I as.
sumo he meant the special session ir
December, 1919?
A. Yes, sir.
@. You said it would take quite 8
while?
A. Yes, sir.
@. And they had. an adjournment
and you went out and took your pen.
Ni1 o~5 4-J 100000
A. Yes. sir. -
@. And then you returned and Mr.
Sinkler says: @. Mr. Thatcher, hav.
you figured the reserve in the Bank o.
North Dakota, Under the law, as it ex
listed or as the law reads in the 1911!
statute?
A.. Yes. sir.
@. And you answered thusly: a.
have on the balance sheet of the Banl
of North Dakota, as of December 3
1920, as prepared by Bishop Brissma,
Co..? . -
A. Yes. sir. that is right. orn
Q: And MI. Sinklcr says: 20.
And have the Bishop .Brissman
Co. report been taken as your
foundation and you answered
will you kindly state"-or rather
he asked You; "Wnl you kindly
state what that reserve was''?
dhA FOu saAu: 1I0 Fe6eFVe was
that r~e-deposits OF banks and
amounts due from correspondent
banks and cash on hand aggrc-
gated 81, sos ,O63 81. That WINS re-
serve of the Bank of North Da-
kota on December 3rd, 1902
A. Yes, SIR. "
q. And the mex question::
According to the 1915 law?"
and here is your answer: Eyes,
literally"
Q. You put that word literally
in there?
A. Yes. sir.
@. And: "Deducting the amount o
money owing to other banks?" an,
you answered.: Yes, the statement
made showed the total reserve; tina
Is. the banks cash. o you asked m
to cover this from three angles"
A. Yes, sir.
and you said: "Shall I proceed ~ an
then you covered it in the three dit
ferent ways?
A.. Yes.
@. Now, you wish this committe
to understand that somebody sat 70
up there on the witness stand and CAV
you a paper and pencil and told yo
! what to figure?
A. Not at all. 1 recall that I mad
it on this statement, but this state
ment doesn't say how much Of thes
seven million dollars in r~e-deposits
good or not good. I
~ He Knows 1t.
@. I know all about that, and 70
knew at the time that some was goo
and some was not good?
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