Page:North Dakota Reports (vol. 48).pdf/629

 the original contract for the sale and option of the bonds of North Dakota as referred to herein.

“Bank of North Dakota,

“By F. W. Cathro, Manager.”

“September 21, 1921. “We hereby confirm the foregoing agreement in all respects and here- by faithfully agree to carry out the same. “Spitzer, Rorick & Company, “By A. V. Foster.”

Under the above contract, $1,486,500 of North Dakota bonds, real estate series, were sold and delivered to Spitzer, Rorick & Co. between September 26, 1921, and November 5, 1921, for which the latter paid $1,486,500. On November 2d and 8th, the Bank of North Dakota paid to the Industrial Commission the amount paid to the Bank by Spitzer, Rorick & Co. on account of the bonds sold, less $25,000. It also paid to the commission $491,000, which it had received through the sale of other bonds of the real estate series to other purchasers.

As the bonds of the real estate series were delivered from time to time by the state treasurer, they were placed in the Bank of North Dakota for safe-keeping, and their receipt for this purpose by the bank was specifically acknowledged. As evidence of the capacity in which the Lank held and disposed of the bonds, on November 2d, by its manager and director general, it advised the Industrial Commission that it (the commission) had, prior thereto, delivered to the bank as “custodian and for safe-keeping” bonds of the real estate series aggregating $2,000,000; that under the direction of the Industrial Commission and at its expense, the bank had conducted a campaign for the sale of the bonds, resulting in the sale of $1,712,800. Cashier’s check was inclosed for this amount to cover all of the bonds so sold. This check was indorsed back to the bank by the Industrial Commission and paid. On November 8th the bank further advised the Industrial Commission that it had sold additional bonds of the same series amounting to $239,100, under the same circumstances as indicated in the previous letter of November 2d. Cashier’s check was inclosed for this amount, which was paid in the same manner. Certain bonds of the mill and elevator series were like- wise delivered to the Industrial Commission, and in turn receipted for