The Bismarck tribune., 1922-06-26
BONUS CLAIMS
SALE IS MADE
BY OFFICIALS
Members Of Industrial Com
mission Sign Agreement
For Disposition
TO WORK OUT DETAILS
Plan Proposes Purchase Of
$6,50O,0OO Of Bonus Ger
tificates at 50
TO WORK OUT DETAILS

Sale Of all soldiers bonus certi-
ficates Of the state was virtually
completed today when all members
of the Industrial Commission had
signed the agreement with, Twin City
financial houses which proposed to
purchase them. Only the sig
nature Of Adjutant-G General Fra
ser, who was out Of the :. city,
was needed to complete the
deal, it was said. General Fraser Is
expected here today to work out de-
tails Of the agreement, which he had
approved on the floor of the Ameri-
can Legion convention. With Gem
eral Fraser's approval only that Of
the bond attorneys will be necessary
to insure completion.
Under the contract the financial
houses would purchase all soldiers
bonus certificates offered, estimat-
ed at several million dollars and
payment would be made as quickly
as the machinery of organization
could be set up. III.
A representative Of the financial
houses-The Minnesota Loan and
Trust company, the Northland Sc
curities company and Lane, Piper
and Jaffray, 1nc.-is in Bismarck to
complete arrangements. Attorney
General Johnson went over with him
the legal phases Of the contract
Governor Nestos, it was said, signed
it in Minot Saturday night.
Legion Named Committee
Maj. J. N. Hanley, chairman Of the
special committee named by the Am.
erican Legion convention at Devil.
Lake, said that committee member,
approved the proposition, which had
been approved in nsgeneralS at thu
convention. Other members Of the
special committee were R. c. McDon.
aid, Valley City; Rheinhart Kamp.
lin, Bismarck and Adjutant- General
Fraser. The proposition is not com.
pulsory.
Discount Fixed
The certificates would be purchas.
ed at IS percent discount. This ba-
sis, according to Major Hanley, is q
par basis with interest at 6 percent
for three years deducted, it being es.
timated that the average time re-
naming certificates would be paid
is three years from this summer
There are probably $4,000 claims yet
to be paid, $500 having been paid
! out Of the soldiers bonus tax Of the
state. Payment by the tax probably
would be completed in six years.
The agreement provides:
The financial houses agree to pur-
chase all soldiers certificates OF
their heirs up to the amount Of $6,-
100000 (which is estimated to be ap-
proximately the amount of such GER
tificates now outstanding or here
after to'be issued"
A cash price Of s2 percent of face
value Of each certificate will he
paid, "the moneys to be paid there
for to be received from the parties
OF the third part (the financial
houses) in exchange for the notes
of the party of the first part.
How Paid
a cash price Of SO percent Of face
value of each certificate viii be
paid. The money would be paid first
by the financial houses to the In!
dustrial Commission for notes is-
sued by the Commission in exchange
for the payment, and the Adjutant!!
General shall furnish, and also the
state treasurer, certified state
ment OF these certificates.
The Adjutant- General must certi-
~ list and description Of ali of
the legally issued and outstanding
soldier certificates. issued from time
to time which certified statement
shall show that such soldiers certi-
ficates are valid obligations of the
state and that no defense exists or
will be interposed to the payment of
the certificates.
The Industrial Commission agrees
upon purchase Of the certificates
from time to time, and upon the de-
post thereof, to issue and deliver ia
the financial houses its negotiable
coupon notes upon the payment to
the commission Of the purchase price
kof the notes, which it is agreed shall
be 81 percent Of the aggregate prin-
cipal sum Of the notes, plus accrued
interest from date Of delivery. The
notes must all be rendered before
November Is, 1922, and the trans
action must be approved by a bond
attorney satisfactory to the finan-
cial houses.
Dated July I
Each Of the notes shall be dated
July l, 1922, shall be in the principal
sum Of $1,000 or multiple Of that
amount, shall bear interest at the
rate of 6 percent per annum, pay
able semi-annually, and shall be pay
able at the office Of the Empire
Trust Company in New York City,
and shall mature in the order issued
as follows:
First 100000 in principal amount
the first day Of January, 1923, and
$250,00O in principal amount the first
day Of each April, May, December
and January thereafter.
All certificates which shall be 30
purchased shall be deposited with
/; the treasurer of North Dakota who
! Continued on page p