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Cathro, Threatened With Contompt, Produces Records to equalize the tax burden in a more equitable manner. As to the farmers' program, it is With Frazier Townley Breador the intention of the opposition to give the present state administration to the mill and elevator enterprise a full and Le. ke and fair trial. It was orignially the pledge of the Independent Voters association to limit expenditure on this account to two million dollars, but as half of this amount has already been used by the most glaring mismanagement of the affairs of the Mill and Elevator association, it may be necesBRINTON TELLS OF DEALto dig deeper. According to the sary report of the industrial commission itP. self, the work in Grand Forks has al N. WITH INGS LEADERS ready cost the state more than $900 000 there is an overdraft in the Bank of North Dakota for $203,190.91 per January 1, and there is ten dollars left in the treasury. Facts About the Bank of North Dakota The Home Builders association will not find many friends among the InBared---Nearly $5,000,000 of dependents This department has been even worse managed that the State Funds Frozen mill and elevator. Of the 62 buildings started- most of them for rich people, bankers, business men, travelling men, and representatives of railroads, har vester companies and other big piz in other league leader to run down and Defying the house of representathe cities -only twenty houses have care for a shortage of nearly $10, tives investigating committee, the In000 caused by some former employe been completed This "program has dustrial commission Monday ordered so far cost the state all the money of the Fargo bank. Brinton will conF. W. Cathro, director General of the tinue his testimony tomorrow mornBank of North Dakota, to refuse to appropriated by the sixteenth legising. lature, all money paid in by home produce the records asked for by Mr. the Nearly $5,000,000.00 Frozen committee. The committee cited purchasors, $285.000 loaned the association by the Bank of North Dakota Cathro to the house of representatives Bismarck, Feb. With more than and an overdraft in the same bank for contempt. Later Cathro reconhalf of the session gone the seventeeth to the amount of $63,602.31, in all sidered and produced the records. legislative assembly has passed only In eight of 285 proposed measures. $418,630.14. To complete the 42 $5.22 unPreceding Cathro's appearance on finished buildings there are the senate 121 bills have been introthe witness stand before the investiin the association's cash box. duced; 25 of these have been passed by gating committee Monday morning, It is the intention of the Indepenthe upper house, 17 have been indefinthe three league members of the committee withdrew, six members conitely postponed, and two withdrawn; dents to finish the work already start- of ed and then to liquidate the affairs the balance, 77, are still pending in tinuing the hearing. The request to committees for further consideration the department as soon as possible. made of Cathro which he refused The house investigation committee, Besides its own bills the senate has comply with, was to produce the reheaded by Representative M. O. Granpassed four house bills and killed two. records of the bank showing the In the house there had at the begaard, of Barnes county, is making deposits in the Scandinavian-Ameriican Bank of Fargo. some progress in spite of the obstrucginning of the wee been introduced tions put in its way by the industrial 164 bills; of these 22 have been passed Townley Breaks With N. D. League and sent over to the senate; an equal commission At first the commission A Townley, national president of number has been indefinitely postsimply refused to comply with the Nonpartisan League, who had beorders of the Grangaard committee poned, three withdrawn and the balthe been called to Bismarck, appeared and gave orders to the heads and ance are in the various committees. fore a League caucus and urged them The house has also passed four senclerks in the various state institutions to accept the offer of the North Da under investigation not to give infor ate bills and killed one. No bills have kota bankers several weeks ago, basbeen sent to the governor for signature mation to the committee, nor to pro- The ed on the liquidation of the Bank of duce any books or documents. North Dakota, which would insure commission changed its tactics to rearSenator H. H. McNair, or Traill, the state of funds to carry out the guard action while retreating, and who is chairman of the senate educagrain elevator and flour mill provision piece by piece the information wanted of its program. Wm. Lemke and Gov. tional committe, caused considerable last is forthcoming merriment among his collegues Frazier bitterly opposed Townley's to Further investigation of the audit plan. Townley was submitted Saturday afternoon when the upper house had before it for consideration report brings to light unheard of slip much criticism by the leaguers, who H. B. 27 which the committee had shod banking methods. Banks friend declared that he had gone down into recommended to pass. This measure, Kansas and Nebraska to promote his ly to the Nonpartisan league leaders have been favored recklessly Forty introduced in the house of represenown interests, quitting the state when a nine "friendly banks which have tatives by Mr. Kitchin, proposed that the league's troubles were at their combined capital and surplus of $1, thrift should be a part of the curricheight. Only a dozen leaguers reulum in the grade schools. 838,059 have received from the Bank mained loyal to Townley and he reof North Dakota in re-deposits, loans, turned to Kansas early in the week. Senator McNair promised that by etc. sums aggregating $3,189,469. A Nonpartisan league group, headthrift it should be understood that Here, briefly, is the situation: by Senator Baker of Renville counthe teachers should attempt to prove The Bank of North Dakota has to the pupils the advantages of in ed ty went before Col. C. B. Little, prom- his inent Bismarck banker to ask loaned $1,135.000 to the industrial vesting their money in state bonds commission to finance the North Daadvice. Little told the committee that such as Mill and Elevator bonds, Bank kota Mill and Elevator association and the first thing that must be done for of North Dakota bonds and Home asthe North Dakota Homebuilders Builders Association bonds. The senthe state to regain a sound financial of footing is to liquidate the Bank ator from Traill was not joking, at North Dakota. sociation. The bank has invested $2,906,069 in least not so much that anybody could farm loans which run for a period of Townley returned to Bismarck to notice it. Still, even the league sen30 years. at noon. It is not known whethators laughed. House Bill 27 was The bank has on deposit in 32 closed indefinitely postponed. day er he returned to again urge the banks, the sum of $539,879.18, while to league members to agree to liquidaThis week will be "Program Week ting the bank or to answer charges other liabilities from those banks a the I. V. A. contingent in the legthe state bank are $369,950.09, or of made against him by J. W. Brinton, the islature. for In accordance with pledges total libility from suspended banks former lieutenant, who is still on made in the platform of the Indepen$909,829.27 dent Voters' Association, under which The bank has adopted a policy of stand. Brinton went into detail concerning the members opposed to the tactics how the league leaders became the favoring political friends with big and policies of the state administraowners of the Scandinavian-American deposits and other advances; it has tion were elected to the legislature, put $444,127.46 in the ScandinavianBank and accused Atty. Gen. William several bills will be introduced in the American bank of Fargo; it has put Lemke and F. W. Cathro, director genhouse this week in an attempt to preeral of the Bank of North Dakota, of $253,137.89 into a bank with $85,000 vent further waste of public moneys combined capital and surplus; it has embezzling and misappropriating puband save the pieces of the so-called farmers' program. placed $126,123.88 in one bank with lic funds by reason of their policy in combined capital and surplus of $50, handling funds in the Bank of North The administration forces seem to Dakota. He cited certain court cases 000, and has tremendous deposits and have lost all initiative; with every deloans to others of a group of especial regarding misappropriation and emly favored banks. partment under the control and subezzlement of public funds to substanat tiate his charges. pervision of the industrial commission In one of the closed banks practically bankrupt and with work Brinton Charges Embezzlement Donnybrook a bank with a combined at a standstill except at the Drake Bismarck, N. D., Feb. 8.-J. W. capital and surplus of $33.400, the mill, where money is being lost every to Brinton testified at the house investiBank of North Dakota has deposits day, no attempt has been made and other advances in the form of gation of the Bank of North Dakota find a way out of the chaos. The only and other state industries just before loans, etc., of $93,534.31; it has $79, evidence of life on the part of the the close of the day's session, that at 242.82 in a closed bank at Beach; it administration is its continued enhas $65,966.52 in a closer bank at the suggestion of William Lemke, now deavors to lock the legislative inyesMinot; it has $47,111.06 in a closed attorney general, and O. E. Lofthus, check tigation of the state institutions. state bank examiner, he gave a bank at Fortuna; it has 63,588.85 in With the time limit for introducfor about $11,000 to the Mercantile closed bank at New England; it has tion of bills rapidly approaching the State bank of Minneapolis, when he $53,362.70 coming from a closed bank at Tolley. did not have that much money on deIndependents have decided not to wait posit in that bank. In a group of 39 banks that appear any longer for the administration forces to act and the result of several Brinton testified that Lemke and have been especially favored, inconferences on program measures will Lofthus knew he did not have that cluding to such institutions as the league be introduced by the middle of the amount of money in the Minneapolis bank in Fargo, the Bank of North week. These measures will propose Dakota has a total of $2,652, 236.49 bank, but wished to have the check to bring aboutappear in the cash items of the Scanon deposit and in other forms of adAmendment of the industrial comdinavian-American bank of Fargo, mission law, either to three members vances. At the time that this audit was comthat a showing might be made to the the appointed by the governor, or to six supreme court of the state that it piled, the Bank of North Dakota had bank was in good shape, so that advances to all the banks totalling members appointed and with the commissioner of agriculture and labor as about $13,000,000, so the fact that could be reopened following the "raid He ex-officio member of Bill Langer" on the institution. there is more than two and a half Amendment of the law creating the further testified that Thatcher, a cermillion dollars in 39 banks, means Bank of North Dakota to the effect tified pubic accountant, was present that about one-fifth of all the public that this institution will be a real at the time the arangement was made money loaned or deposited at that rural credits bank. and undoubtedly knew of it. time in the banks, was in less than Amendment of the present law govBrinton in his testimony charged one-eighteenth of all the banks that that there had been misappropriation erning public depositaries and to make were doing business with the state and embezzlement of the funds of the every state and national bank in North Dakota an authorized public Bank of North Dakota in the fact that bank. It is knowledge of this situation depositary. the funds of the institution were that the state administration is seektransferred from the Bank of North Amendment of the present election ing to keep from the public in the Dakota to the Scandinavian-American laws so as to make all state cers fight that it is making in Bismarck to bank in Fargo, and that the funds elected on a nonpartisan ballot, with prevent the house audit committee were used for political purposes. from making a full inquiry into the special provisions for national elecHe testified that he had been brot tion requirements, and also to protect status of the Bank of North Dakota into touch with the situation by being and other industries that are under party interests as formerly outlined in these columns. 7 the loose Lombo the direction of the state industrial called to Fargo by A. C. Townley ALA
