Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-17
LEA!IlG;U,I]ERS FIRM
ON. POINT THAT
BRINTON LIES
D
Lemke, Lofthus, Thatcher
; Deny Advising Use of
( Check Without Backing
(By STAFF Correspondent

Bismarck. n. D.. Feb. 17.-William
Iemke. attorney general, o. E. Loft
hus. state examiner, and NJ. w.
Thatcher, public accountant. assured
.1e senate audi committeeSyesterday
afternoon that Brinton was a liar.
. This was in connection with Brin-
tons testimony that his action in pay
ing the obligations of the Sisal trust
to the Bank of North Dakota. with a
check not backed up with sufficient
funds to cover, had been taken with
the knowledge n approval of some
Or all of the three men mentioned.
All three denied having ever advis-
ed. OF approved of such a plan, and
were decidedly vehement in their re-
marx on the subject.
Check Was Introduced
The actual check in question. with
%>>orrobotative documents showing
when it had been deposited and paid
was introduced by Brinton yesterday
morning at the hearing held by the
house committee. MIR. Lofthus. in his
testimony before the same committee
Tuesday. indicated hat he wasn't par
ticularly proud of the.affair. but these
details were not gone into by the
senate committee yesterday after
noon.
Tho main point nj the testimony
brought u in the senate committee
yesterday afternoon was the effort 10
prove that few ii any OF the banks in
tho state had ever oheyed the law Of
1915 regarding reserves. and suppos-
eddy :ha; :he Bank Of North Dakota
the Scandinavian-A merican bank
of Fargo were no wotS" than others
in this respect.
f. r. Sinkler. attorney for the com-
mittee, contended that the Bank of
North Dakota had the right &c count
as available reserve ali funds rade-
posted in banks in and outside Of
the state Of North Dakota, although
he admitted that as a matter OF fact
a large portion of these funds were
not available.
1t has never been commended as Il
matter of fact thar the Bank of North
Dakota was legally bound by the re-
serve law.
At the close of the proceedings, Mr..
Thatcher was asked 10 take a num-
Der of banks at random. and see how
their reserves would check up with
the reserve law of 1915, and that sub
sequently passed in 1918 which is less
stringent.
F. w. Cathro. manager of the Bank
of North Dakota was put on the stand
at the beginning of the hearing and
produced the draft or which ]. J,
hastings lHd DePl palu S0uo, dS du-
vance commission for selling North
Dakota bonds which he never sold
in addition to the $500 in cash &c
which Mr.. Cathro had testified be-
fore the senate committee Tuesday.
This was one of the matters or
which Mr.. Cathro had been grilled tc
some~extent by the house committee
yesterday morning. but there was nc
cross-examination yesterday after.
noon as far as Mr.. Sinkler was con.
cerned.
Figured Up Reserve
A large part of the session yester.
day afternoon a taken up by Mr.
Thatcher in figuring up the reserve
Of the Bank of North Dakota.
He declared that the total reserve
Of the state institution including the
re-depositS carried in other banks wa:
required by law for the private bank:
over $4,000. 900 in excess of that re
of the state. He admitted. however
that the cash reserve of the STATE in
stitution was considerably less thar
thlt Required by law for private
banks.
The same general policy that hal
hitherto characterized the senat'
hearings of Introducing chiefly evi
5denco designed to rebut that Offered
at the house hearing was followed
Yesterday afternoon the chief testi
mony which was under fire was tina
of J.. w. Brinton in regard to the Sisa
Trust check which he took up in con
siderable details yesterday morning.
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