Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-02

a ye8, 0lr.
9. And after you cot hack to Bis
narck, what did you do about It when.
came back here?
Went 70 Govcen0r.
A. Well, I thought the matter over
pretty seriously, and ] was very much
over the condition OF this
bank and the noun Of money the
sank OF North Dakota had with them,
ma l decided I would go up and talk
With the governor about 1t. I thought
chief executive he ought to be adj
used OF condition of affairs, so I
mo told him why I was taking him
as I wanted a witness. And
went up and saw the
Ind when We went in Mr.. Lemke was
IN the ONCE with the governor seated
at the table.
@. That is Mr.. William Lemke, the
present attorney general?
A Yes. sir. And he got up and
said, il you gentlemen have anything
OF a private nature to talk about, I
VIII get out And I said. Bill it is
nothing only what you have heard
before. SO you might just rs well stay,
and he did. +
Q. What did you say to the gov
ernor?,
A. Well. l went into details with the
governor in regard to the condition
Of this bank.
Z. What was the reasonable con-
to be drawn from what YOU
told the governor as to the condition
OF this Observation-Disclosures bank
rs you found it?
A. In YER serious. condition.
Q. Mr.. McAneney was there at the
time you told him that?
A Yes, sir.
Q. After you told the governor
that, what did he say?
WARNING TO FRAZIER
A. Well. the governor gave me q
very nice audience. He listened YER
attenttvely to all the statements 1 had
to- make TO him, and when I was
done, he turned around to Mr.. Iemke
and Rid, well, Bill. what do you
think about it:- And Nh. Iemke
said. II think Jim is unduly e1-
"
q. And then what did you say.
A Well I was considerably peeved
and I got up and put on my overcoa1
and said: Governor, this is the las
time 1 am ever going to talk to you
about this matter. but I want You to
remember one thing that II anytime
happens to the northumberland
can bank you emit ever say that jim
Waters knew the condition 1t was h
and didn't come and tell you
@. And you went back to the
bank?
A. Yes, sir.
you?
A. Yes. sir.
Q. And he was present during thi,
entire conversation?
A Yes. sir.
@. And Mr.. Lemke was present.
ent?
A Yes. sir.
Q. Did 20 have any further ad.
ditional talk with Ny. Lemke abou,
this situation?
A. Yes. he was down to the banl
and I had a talk with him about it.
Q. How long after this talk with
the governor?
A. This talk with the governo,
was in the afternoon. and it was eth
er the early part of that evening OF
the next morning that I had the tall
with Mr.. Lemke.
Lemke Again.
Q. And you say that talk with Mr.
Lemke was at the Bank of North Da,
kota?
A. Yes. sir.
@. Well, let's have the contents o:
that conversation?
A. Mr.. McAneney and myself hai
some talk ourselves that We nigh
make a deal for the Scandinavian
American bank provided the RICH
kind of a deal could be made. Ant
during this talk, on the criticism o
the bank. Mr.. Lemke said: well
that you might consider the purchas'
of this bank" and he said. How d,
you feel about it now?" And I said
"Mr. McAneney and I have decided
that we would not only have to hav'
the stock for nothing. but we would
have to have about $3.50 assessment
on each share besides"
Q. That if they would give yot
$3.50 on each share and give you tn.
stock for nothing, you might take it
A. Yes. sir. and he said the.
couldn't make a deal like that and
said We might consider a deal taking
this at par if this paper we have
criticized is good.
good?
A. Yes. sir.
Q. He said all this paper you crit
icized would work out?
A. Yes. And l said we might con
slider taking the stock at par if the!
would take their pay with this papel
which he said was bad and which h
said was good, which would, Of course
let the money for the stock go int
the bank. and that they would TAX
the paper. that would relieve the banl
of the bad paper or paper we claimed
was bad.
q. And under those conditions 20,
agreed to take it?
A.. Yes, sir.
O. Now, when Mr.. Lemke cam,
down to the bank that day and afte
you had this talk with the governor
what did he SAY with reference to tn
governor? :
WATERS WARNING.
A. Well, 1 even went further witt
Mr.. Iemke 1 said: "Now, this is tn
last time i. am vcr going to talk witt
the governor or any of the admins
tration about this bank, because
have done everything that is fair an,
honorable. 1 have gone and informe,
the governor, and 1 want You to re
member one thing. Mr.. Lcmkc, tina
III any tlAu6 AI"pPSbAS o.su JIG oC1AAhOAii
avian-American bank blows up befOr
the 3Oth day Of June, that Bill Ian
ger will be the next governor"
@. That was what you told MI
Lemke?
A. Yes.
LEMKE'S ULTIMATUM.
@. What did Mr.. Iemke say
when you told him that?
A. He hit the table and he
said: "By God. we Will keep that
bank open IL 1t takes every dollar
of public FUNDS in the state of
North Dakota"
O.. And when he indicated h
! would keep the bank open II it too