The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-04-10

The consolidated report OF the in.
dustries under the control of the In
dustrial Commission reflects the fol-
lowing outstanding features:
l. Total book deficits are: Bank
of North Dakota, $150,475.6 a; Mill
and Elevator Association, $1S7,194.17;
Home Building Association, $780,
97474; Industrial Commission $685.
34S.73-total $653,9932S.
2. Current or demand assets of the
combined industries are $2,849 ,903.12
which the current or demand liabili-
tics are $4,654,324.56, the excess OF
demand liabilities being 81, ,421.44.
3. Appropriations by the state to-
falling $449,374.45, consisting Of con-
tributions from the general tax lev
les for the operation of the Home
Building and Mill and Elevator Asso-
Citations. and Industrial Commission,
have been entirely dissipated. This
amount, a look dificit of $204,618.S3,
together with the additional and ul.
innate depreciation and losses, must
necessarily be contributed from the
general tax levics," the report states.
4. A very great shrinkage in sew.
eral million dollars Of assets in the
Bank Of North Dakota will result from
final settlement of affairs with closed
banks and liquidation Of other paper.
5. A total Of $263,219.5S interest is
due the rBank-0f North Dakota and un-,
paid, of which $163,057.19 is interest
accrued but not paid on farm mort
cages.
6. Expenditures in the bond cam
paign of the [Nonpartisan league ad-
ADMINISTRATION amounted to 1886, 110.47,
and all Of the expense cannot be ac-
counted for. This includes $1,000
commission paid George T. Webb. The
minutes of the bank finance commit
tee show this transaction as OF June
IS, 1921, but testimony was given
auditors that the minutes actually
were written November %, 1921, the
day the Nonpartisan administration
went out Of office and dated back on
orders of F. w. Cathro.
Bank Situation.
The Bank Of North Dakota, the re-
port shows, constitutes the most seri.
GUS situation in the finances Of the
industries. In addition to the losses
reported and which will ultimately re-
suit, two deals Of unusual character
are reported by the auditors.
One Of these is to the effect that
money of the Bank of North Dakota
was used in the deal for issuance of
new stock in the now defunct Scandi-
navian- American Bank of Fargo. The
report states that among the assets of
the Bank Of North Dakota is listed
this account: Peoples State Bank,
Casselton, Rodeposit of $77,062.49."
The audit report says: "The veri-
fication received from the Peoples
State Bank, Casselton, advises a bal.
ance of $31 ,059.23, and they submit
ted the following explanation:
"'We hold $42,225.00 of notes given
for new stock in the Scandinavian
Bank of Fargo and which were taken
on by us upon the assurance of the
Bank of North Dakota that they would
be covered with redeposit and that the
redepos't account would not be drawn
against until the notes were taken off
our hands. See correspondence in
files there. We have charged the
notes and interest to the redeposit ac-
count"
The audit report adds that "a search
was made of the correspondence files
of the Bank Of North Dakota but no
correspondence was found relating to
the said redeposit."
Say Books Dated Back.
Regarding the George T. Webb ac-
count the report states: "The Com
mission of $4,000 paid to Geo. T. Webb
November %, 1921, was returned to
the Bank Of North Dakota in pay.
ment pf an apparent overdraft in the
Special Account, and the Bank in
turn issued a Cashiers Check to Geo.
Il. Webb in the amount Of $146!59 to
balance the amount"
A letter was found, in which F. W.
Cathro, then manager of the bank
promised to pay Webb commission
of $4,000 bonus if bond sales of over
$1,000,000 resulted from his efforts.
The audit report adds: "The Min
ties of the Finance Committee under
date Of June 1S, 1921, contain an entry
authorizing the payment Of the com
mission to Geo. T. Webb of 100000
but Mrs. Nellie Mari, clerk of the
Finance Committee, informed us thai
these minutes We're written November
%, 1921, and dated back to June 19
1921, on instructions of Mr.. F. w
Cathro. director general and manager
Of the bank"
Total expenditures made by Webl
in the bond sale campaign were $1O2,
3o7.96 Vouchers for all expenditure
could not be found in detail, the repor
! says.
, Discussing conditions which shoy
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