Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-12
lees Testimony Regarding
Michigan City Bank Deal

Q. Conway Storage company to the
Michigan City bank, $500? A. Yes.
A. t27,8oo.
@. The precise amount carried up
on the books of the bank as q redis-
count OF these notes? A. Yes.
9. White would indicate that they
were not discounted as far as their
face was concerned? A. Yes.
Notes Secured.
Q. Now these notes were secured.
described at Index 420? A. Yes.
@. And the security is rs follows:
Michigan City bank, storage receipt.
This is storage receipt No. 4S, issued
by the Conway Storage company, dat
ed 18th Of March. 1920, covering four
Buick autos valued at $500 and in
sured against fire and theft. B. H.
@. That is the security for the first
note of $500? A. Yes.
q. Note No. 500? A. Yes.
Q. The x note Of $500, No. 6Ss,
secured in the following manner:
Storage Receipt No. 43 issued by the
Conway Storage company, dated the
18th of March. 1920. covering fozr
A. Yes.
Q. And h next note No. 71s. for
$4,000, security as follows: Storage re-
ceipt No. So, issued by Conway Stor-
age company, dated the 18th of April.
1920, covering fve Overland automo-
biles, valued at $4,000. That is correct
is it not? A. Yes.
Mr.. Sinkler: Does it show the in
surance?
All Insured.
Mr.. Murphy: They are all insured.
Q. The next note. No. sos, $4,000,
is secured in the following manner:
Storage receipt No. 4S. issued by the
Conway Storage company, dated the
18th Of March. 1920, covering fve
Chevrolet automobiles. valued at $4,-
zoo in their storage receipt? A. Yes.
@. And the next note for $1,000, be-
ing No. 644, secured in. the following
manner: Storage receipt No. 50, issued
by the Conway Storage company, dat
ed the oath Of March, 1920. covering
five Wallace tractors, valued at ST.
900? A. Yes.
Q. And the next note, No. s7s, $4,-
500, is secured by Storage receipt No.
81. issued by the Conway Storage
company, dated the sth Of April. 1874,
covering seven Fords valued at $4,-
900? A. Yes.
Mr.. Murphy: Ever hear Of seven
Fords worth $4,000?
Q. Just before you go-you have al
ACdOy A6 III GU y US LI1c LOJAl lAUl11xl0S
OF the Scandinavian American bank OF
Fargo. have you not? A. Yes.
@. Kindly figure the total liabilities
of the other inks in Fargo as Of
December 3. eco? A. All. right.
Figr,t'S Liabilities.
Recess take: for ten minutes. after
which hearin" resumed with all ar
ties present, I'D the witness Lee on
the stand.
g. Mr.. Lee, have you now figured
out the total net liability Of all the
banks in Fargo saw and except the
Scandinavian American bank of Far
go? A. Yes sir.
G. What is it? A. $~5s.45s.s1.
Q. AS against $444,127? A. No. that
Is the net liability-as against $434,-
MI. Oathro's Testimony.
@. Now I want to 8 you a few
questions. please. Mr.. Cathro, is 1t
not a fact that the Bank Of North
Dakota within the last week or ton
days has not been able to pay its cur
rent items?
A. The bank has not been able to
get money in fast enough from banks
to take are Of all it's items a.
promptly as it should.
Q. You know n item in the city
Of Bismarck that is here now around
$4,000 that the Bank Of North Da-
kota has not been able to take care of?
A. No.
@. Never heard of that?
A. No.
@. How much is it?
A. I heard there was a $685. oo
draft In Minneapolis that had not yet
been paid the first of the week.
@. Now before we get off this
subject. I wish you would post your
self on another matter-the records
show an unhonored draft against the
Bismarck bank of this city of $50, 900
I wanty you to tell us when and where
that draft was ever presented to the
Bismarck bank, Inc if it wasn't pre-.
sented, give US the reasons
Wants Other Data.
Q. Then will you kindly also inves.
ugate the loans in Renville county al
the same time. I think I asked you
the other day might be mistaken
It might not have been you. it might
have been Mr.. Johannsen. but I asked
for a list Of the rediscounts as Of Oc'
tober 80, 1920. Was it you, Mr.
Cathro. or was it Mr.. Johannsen?
;, A. I have no recollection of an,
such question.
: @. Well. one or the other. but
will ask you to produce 1t, and If yoy
haven't it here would you kindly ge'
P that list Of r~ediscounts as Of October
1 80, 1920. or 31st. if the 30th Happen.
to fall on Sunday, one Of the last day,
! in October?
:. A. Yes.
2 How Interest Was Paid,
=. Now those statements that
, you have brought us here. those
printed statements. show that
+ 100000 was taken from the
, profits Or earnings OF the bank,
sO-ca1ied. and deposited with the
t state treasurer. I take it o. the
:, purpose OF paying interest upon
the bonds. bank series?
i, A. Yes.
t @. And that was t nay the
e interest falling due on January
e I. 1921. and July 1, 1921?
A. Yes.
e Q. The Interest for the preced-
ing yesr. that wasn't paid, was it?
A. Yes.
q. BY auditors warrant, how
ever?
q q A. II was paid as a result OF
3 taxation.
@. And you got a warrant from
r the state auditor for 800. 900 for tn
purpose OF paying that. taken out O
t the general taxes OF he state?
e A.. No.
e @. Well, how was 1t paid by tax
Not 100000. =
A.. We probably received a stat
!. auditors warrant all right, but 1
. wasn't for 500. 600.
@. Whatever amount the tnteres
was. was paid by state auditors war
rant. and that came from the eeners