The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-05
STATES POLICY
ON RECORDS NOT
YET ANNOUNCED
Committee to Take Up Investi-
CATION of Industries Again
on Monday
TOWNLEY STIRS THINGS?
Cathr0 Says New Withdrawals
Will Be Made From Banks
in State

The investigation of the house of
representatives committee into the
conduct of the state industries was
halted today until Monday.
The adjournment of the committee
was taken shortly after the commit
tee was called to order in the court
house this morning, without objection
from counsel. w.. .-
AttOrney-General Lemke suggested
that the committee take the adjourn.
ment, after conference between q re-
preventative of Mr.. Lemke and attor.
neys for the committee had been held.
The senate committee was to begin
its hearing late this afternoon in the
stae bank. The senate agreed
to meet at 1 p. m. daily and adjourn
at 4 p. m., for the purpose of conduct
ing it's inquiry. .A.
The status Of the inquiry remained
the same as it was when adjournment
was taken yesterday, after F. w. Cath
ro, director-general Of the Bank of
North Dakota, had declined to 60 into
details of the deposits of the Scandi-
navian-American bank, saying that
this would open up the whole question
of publicity on relations between
banks Of the state and the Bank of
North Dakota which might result dis
astrously.
Mr.. Cathro was present with a
number of records, but the answer of
the Industrial Commission on the
question Of producing the rcords will
not ibe given until Monday, it is under
stood,
Complete Friday Transcript.
Following is a complete transcript
of the testimony given Friday by F.
w. Cathro, manager of the Bank of
North Dakota, regarding the redepos-
it Of funds in the banks Of the state.
Q. BY Mr. Murphy: Now, calling
your attention to the question Of re-
sources, there is an item of redeposit
of public funds Of $4,O4O,S99.19. See
II I am reading this correctly. A.
Yes. ..a
Q. Now just what does that mean
-redeposit of public funds? A. This
was money that was carried in local
banks throughout the state of North
Dakota in the name OF the Bank of
North Dakota.
G. Let me see if understand this
correctly. These public funds OF
course, constitute the bulk of the de-
posits in the Bank of North Dakota.
do they not? A. Yes.
@. The Bank of North Dakota then
redeposits a portion Of these fumes
in different banks throughout the
state of North Dakota in its name
that is the Bank of North Dakota be-
comes a depositor in various banks
throughout the state? A. When the
Bank of North Dakota was organized
a large proportion Of these funds
were in these banks, and the Bank
of North Dakota adopted policy Of
redepositing in these same banks. In
other words a check by local treas
urer was sent to the Bank of North
Dakota, and that identical check was
returned to those banks for deposit
in place of being retained by the
Bank of North Dakota. These banks
at that time were unable to pay the
money to the Bank Of North Dakota.
They had it at that time, but they
couldn't let go of it. They couldn't
meet their obligations, and pay it to
the bank. Consequently in order not
to embarrass these banks it has been
there ever since in a good many
cases. and we have been unable to
get it out.
Percent Paid.
@. AS far as the books are con.
cerned the public funds actually be-
long in the Bank of North Dakota,
but they are trying to have it rede-
posted in the fashion you have in
dicated? A. Yes.
@. Now of course upon these
funds you pay two percent to the
counties or cities or public institu-
tions do you not? A. We do.
@. And you charge the redeposi
tory bank four percent? A. Yes.
@. Now as l understand you, you
say that was your policy throughout
that you redeposited the exact
amount in the bank as was taken out
of it and deposited with you? A. No,
not the exact amount.
@. Well, similar amount? A.
Our position always was in the main
how we never assumed that we
could sustain an exact balance-but
in the main we would try to retain
redeposits in local banks, about in
proportion to the amount that CAME
from these localities.
@. So that the distribution would
be substantially the same as it was
before the organization Of the Bank
of North Dakota? A. Yes.
@. You think that is correct
statement? A. Approximately so'
that is the general plan we tried to
follow
@. Is that true as to counties or
districts or localities. or has there
been some change in the distribution
of public funds since the organization
of the bank, and the adoption Of tn s
method of redepositing, substantially,
| mean? A. Well, portions Of the
state that were not in urgent neetl IT
mOney--from those portions we with
drew some of their funds and pas