The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-05-26
CLAIM BANKERS
GOT APPROVAL. p |. !.
OF Of COL. J WHITE; Hi 3
II is Alleged y J. \ :'1Ip, That Act is Punish.
able BY Fine and Ren,o,sl 4.
From Office '..t VI.
STORMY SESSION FOLLOWS
Pioneer ? Press CORRESPONDENT
Hooks Ladd up with Valley I.
City Mans Appointment
STORMY SESSION FOLLOWS

y The st. Paul Pioneer Press Wash
ington correspondent gives this story
Of the \ White endorsement Of State
bonds under q washington date line:
A signed statement by Frank White
as United States Treasurer indorsing
the North Dakota bond issue which an
peared In advertisements Of New York
newspapers today, caused consterna-
tion in the Treasury department OF
the use Of Mr.. Whites name and p0-
sition. The statement was issued
from the office Of Assistant Secretary
Gilbert.
Heavy Penalty Provlded. "' !.
The law forbids such an indorso
ment by the treasurer unless special
ly authorized BY Congress-. The o..
tense Is punishable by heavy fines
and removal from office. .tn -.
New Ork financial and banking
circles, which refused to help float
the $3,O00;00O state bond issue which
the State Bank ;Of North Dakota Is
trying to sell, were reported to be
greatly excited over what appeared to
be administration Endorsement Of the
Nonpartisan league venture. Their
wrath went to the point Of getting in
touch with Treasury department Of
ficials. -@"
z" Stormy Session Follows 4:
The Treasury department repudia-
ton of the use Of Mr.. Whites name
came after a|stOrmy session in which
! it is said Secretary Mellon, Assistant
Secretaries Gilbert and Wadsw0rth
and Mr.. White participated. 1t Is un-
derstood that Mr.. White convinced
department officials he had no inten-
ton wrongfully'Sto use the influence
Of his office in behalf of the Bank Of
North Dakota or the Nonpartisan
League. He frankly admitted that
he knew nothing of the Federal law
which f0rbids what he had done. Mr..
White has been In office less than q
month and has many things about 1t
yet to learn. = !
u What Department Says.
The department statement merely
said,
1.-THE statement in the advertise
ment of bonds Of the state Of North
Dakota which appears In ftoday's
newspapers. spurporting to be signed
BY the Treasurer of the United
States, Is entirely without authority
O fthe Treasury department"
Mr.. Whites said last nightsthat he
was entirely innocent of trying to use
his office to promote. the sale Of the
North Dakota bonds. Not being aware
Of the Federal law denying him the
right to testify to the financial stabil-
ity Of his home state, he felt there was
no improperly. when he made the
statement to a young man several
days ago. Mr.. White had no idea
It was to be used. The young man was
the representative of the New York
agents of the Bank of North Dakota
and Mr.. White thought it proper to
make the statement requested.
This Caused the Trouble. O
The statement which was dated May
is. 1921 and caused all of the trouble
follows: ,"I| ..
These bonds have been passed on
by both the state and Federal courts
and are valid obligation of the state
OF North Dakota. "
"The present state debt outside OF
this issue is less than $250.OOO. lefs
than two cents on each $10Q>of the
assessed valuation of the taxable
property of the state. :.
"This bond issue has back Of 1t the
entire resources Of 4 great state-.a
state with $4,000, 900 acres Of fertile
farm land with hundreds Of thriving
cities and towns. ..e
"The assessed valuation of all prop
erty Of the state is about, $1,5Oo,Wo,-
0OO. This bond issue Of $3,OoO,ooo
amounts to but twenty cents to eacn
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