The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-21
PROBE OF $4,000
LOAN TO SATIRE IS.
ASKED BY GOVERNOR.
Advance by Bank Of North Da-
kota to Attorney General
Ordered June is
DAY LANCER HELD GUILTY
Resolution Says Purpose Was
to Finance Court Fight in
Utility Tax Case
(By the Associated Pressl

Acting Governor Ole III. Olson FRI
day announced he would ask the state
industrial commission, Of which he is
chairman, to investigate q loan Of
$4,000 by the Bank Of North Da-
kota to Attorney General P. O..
Satire to supplement the appropria-
ton for the latter's department.
The loan was authorized by an in
dustrial commission resolution to hire
special attorneys to aid in defending
the state in the II per cent gross earn
ings utility tax suit brought against
the state by utilities companies.
Satire was out Of the city and could
not be reached for comment on the
matter.
Olson announced his decision at the
same, time, that John HUSKY, state
commissioner Of agriculture and la
Dor, voiced criticism of the loan, and
questioned the legality of the trans
action.
Olson. HUSKY and Satire compose
the present industrial commission.
The loan attacked by HUSKY and sub
ject Of the proposed investigation was
made under the administration Of
ousted Gov. william LANCER.
Made on June is
Records of the industrial commits
sion show the loan was approved June
Is, with LANCER and Satire the only
members present. HUSKY Is listed as
absent. Olson since then has re-
v,Ionad o,arnr g oos,nr,orx q NJ nh a ~.
man of the industrial commission be-
cause of Langer's federal court con-
viction the night Of June Is and re-
moval from office month later.
Olson said he would ask that in
vestigation be made both Of the loan
transaction itself and Of disburse-
ments out Of the $4,000 fund which,
according to HUSKY, has been depos-
tied in the Bank Of North Dakota.
HUSKY charged expenditures from
the fund were being made by per-
sonal check of Satire, and that the
fund was not dis cursed through off,
cial channels"
Present at the meeting, at which the
loan was approved, minutes Of the
industrial commission show, were
LANCER and Satire. The resolution
provided that:
Text Of Loan Order
whereas, there is pending in the
United States district court for the
district Of North Dakota, certain liti-
CATION by utilities companies against
the State of North Dakota to enjoin
collection OF taxes provided under
Chapter $50, Session laws OF 1888, and
whereas, the attorney generals
department has not sufficient funds
left from its appropriation with which
to hire special attorneys trained In
tax procedure,
"Now, therefore. be 1t Resolved.
that the Bank Of North Dakota Is
hereby directed to loan to the attor-
new generals department the sum OF
$4,000 and to take the note Of ?. Q:
Satire, attorney general Of the State
of North Dakota, for that amount,
which note shall be payable February
10. 1885, and shall draw interest at
the rate Of four per cent per annum
until paid"
Minutes Of the meeting further
reveal that following passage Of the
resolution no further business was
transacted and the meet ad-
journed.
HUSKY questioned the practice Of
paving out Of public funds with per-
sonal checks" and said he under
stood the loan had been obtained on
the personal note OF Satire"
No Check on Spending
What check can the state have
against disbursement Of the funds"
Husby asked. Il question the right
Of Satire to exceed his approprta-
ton by the legislature, and ques-
Continued on Page 8