The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-03
CAPITALST0CK
AND BOND LOAN
INQUIRED INTO
Attorneys Ask What Law Au-
thorizes Bank to Hypothe-
cate Capital Stock Bonds
RECORDS ARE PRODUCED
Omission Offers Access TO In
stitutiOns-Lemke Assails
Committee Course
RECORDS ARE PRODUCED

The house investigation of
industries got fairly under way
today.
Records of the Industrial
Commission, over which there
was argument yesterday, were
produced. The commission, at
Il meeting, however, made the
reservation that the particular
records desired must be asked
for and remain in the hands of
the officer who produces them,
and that officer must gain per-
to produce the particu-
lar records.
Rules of the committee were
amended to cover the refusal of
any officer to produce records.
They previously had related to
oral testimony Of individuals.
Unless information desired for
by the committee is given, un-
der the rules, contempt pro-
ceedings may be instituted.
II. w. Paddock, secretary of the
Industrial Commission, and F. w.
CathrO, directOr-general of the Bank
of North Dakota, were on the stand
during the morning. Paddock de-
clared when he took the stand that
the notice served on him to bring TO
the attention of the committee was
not the notice that he had understood
the committee sanction, that it was
presented as the unanimous will of
the committee and that one member CT
the committee had never seen it. He
asked that the original motion of the
committee be read. The committee
noted five to four against it. At
torney-General Lemke, after the
hearing, declared he had no conf
dence in a committee which falsifies
the records"
During the examination Mr.. Pad
dock minutes of the Industrial Com
relating to the organization
were read, and the examination of
Mr. Cathro was only fairly we'll be-
gun. He was called to appear to-
morrow.
Lcmke Appears Again.
When Mr.. Catnro went on the stani
Mr.. Lemke said he desired to enter
appearance as attorney for the stale
and for Mr.. Cathro. Mr.. Cathro gave
his residence as Bottineau, N. D.
He was asked to name department.
al heads. He gave them as l.. p.
credits department direct
or; A. Johannsen, audits department
director, and said the bank had no
head Of the farm loan department or
bond department at the present time,
or Of the statistics and publicity de-
partment. ..s ."
w. H. Mcintosh, formerly associat-
ed with Mr. Cathro in the First Ma
tional bank of Bottineau, was man
ager of the loan department as head
Of the farm loan department until
Jan. l, 1921, Mr.. Cathro said. Mr..
Cathro said he acted as head of the
department, with w. G. Roy
lance in charge of statistics.
= Wants Trial Balance.
Francis Murphy, committee cou1-
sell asked that Mr.. Cathro bring with
him later the daily trial balance Of
the bank as Of Dec. 3, 1920, the date of
the examination by Bishop, Brissman
and company, of Feb. /, 1921, and OF
April l, 1920. On suggestion of MIR.
Lemke, Mr.. Cathro said that he would
do so, if the Industrial Commission
permitted him. Mr.. Murphy plunged
into the question of the
banks capital.
Opens Without Capital.
when the bank opened July %,
1913, what was its capital stock?"
asked Mr.. Murphy.
ut had no capital" Mr.. Cathro re-
piled.
The bank acquired capital, "in cash
or equivalent" between that time and
two or three weeks later, the witness
said.
What do you mean by equiva-
lent?'
ut was check from myself as d.
rector general of the Bank of North
Continued on page 81