The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-02-04
MANAGER OF BANK
QUESTIONED about
DEBT CERTIFICATES.
Butler Says Neither He Nor
Mudgett Was Enthusiastic
to Make Purchase
BOND MEN OFFERED LITTLE
Thorp Request Again Is Met
With Order to Put Cues
tons in Writing
BOND MEN OFFERED LITTLE

ASNoANV Va V1VV,VVV WI VA VI VCILl.
ficates Of indebtedness BY the North
Dakota capitol commission and the
need Of such an issue were studied
Saturday by the legislative investi-
eating committee with p. H. Butler.
acting manager OF the Bank Of North
Dakota, being examined during most
Of the hearing.
Butler said neither he nor COL G.
F. Mudgett, manager Of the bank un-
til recently were very enthusiastic"
about purchasing the certificates and
that before they agreed to do any
thing they received an opinion from
the attorney generals office.
Butler reported the issue Of certifi-
Gates was necessary before the "con-
tractors" would sign contracts for
portions Of the capitol building work,
with the comment that former Gov
ernor George F. Shafer had reported
he wanted the capitol building pro-
gram completed under his adminStra-
ton as the incoming administration
might be unfriendly.
Sen. w. G. Bangert, member Of the
investigating committee, read min
utes Of the capitol commission into
the records that referred to the need
of the certificate issue 50 the commits
sion could take advantage Of low
prices on materials. Butler said he
did not know whether any Of the
100000 had been used yet for that
purpose.
Consulted in August
Butler told Of the preliminary ar
rangements for the issuance of the
certificates, relating to the Investigate
ing committee that as early as Au-
gust, 1892, the Bank Of North Dakota
had been consulted concerning their
purchase.
He said shafer took up the matter
with the bank and reported Shafer as
having told bank officials money
from the certificates was needed III
the completion Of the work on the
new $4,000, 900 capitol.
Butler told r. r. Sinkler, investigat.
ing committee counsel who questioned
him concerning the transactions, hs
thought the capitol commission had
on hand about one million dollars.
Butler said 1t was costing the state
$4,000 a year for interest on these
certificates.
He said the last one was payable III
1912.
The acting bank manager said he
had inquired of bond houses concern
ing bids for the certificates but all OF
them had sidestepped with the gen.
eral comment they were not interested
because of the limited tax provisions
for payment of the certificates and
the delinquency Of taxes in the state.
Would Offer Under Par
One bond house said their offer. II
they presented one, would be ABOUT
80 or 81 cents on dollar.
AT this point George Thorp, Fargo,
counsel for the capitol commission
ers. asked that portions Of the min
utes concerning the state auditor and
the certificates be read into the rec
ord with Bangert suggesting IN writ
ing as provided by the rules OF the
committee.
sinkler said It was not necessary
to have the minutes in the record
because all he wanted to know was
whether the Bank of North Dakota
had had any information from the
state auditor about the certificates
Of Indebtedness. Butler said the bank
had no direct word from the auditor.
]. j. Murray, a clerk in the motor
vehicle registration department, was
called and the investigating COM
mittee turned for few minutes from
the certificates to the Hudson car
which q. A. Fraser. commission
member who resigned this week. used
on his Louisiana trip.
He testified the licenses for the
Hudson were issued to Fraser and the
La Sale that later burned was also
licensed by Fraser. He also present.
ed bill of sale showing Fraser trad
ed in the Hudson at Chicago and
gave q personal check Of about $500
for the difference.
state Licenses Cheaper
Murray said II the Hudson or La
Sale had been state -owned 1t would
have cost only 81 to license them.
Sen. Matthaei questioned Frank L.
Anders, secretary Of the capitol COM
mission, regarding the surety bonds
for contractors and Anders said that
II the state had purchased the bond
for the general contractors direct 1t
would have saved about $l.l00 over
the arrangement whereby the con-
tractors paid their own bond and
included it In the general contract
price.
Bangert, sinkler and w. ]. Fan
nigan, another member Of the invest
igating committee. all questioned An
ders regarding the change in the con-
crete mixture. Anders reported the
change was made to provide strong
er concrete. He added the change
was suggested by the architects and
that the capitol commission had no
formal notice Of the change.
I. L. Davis, superintendent Of con-
struction OF Lundoff- Bicknell. Chi
caso general contractors for the
building was on the stand as the