Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1894-01-05

ledge on my part I never had anything to do
with placing this stock. s.
On the 11th day OF April he informed me
that he had negotiated his stock and that of
Mrs Kennedy, and that the parties east to
whom he had negotiated the stock preferred
that it should be stock of o bank and not Of q
loan company and requested that We reorgan-
ize and issue shares of stock in equal amounts
with that held by the loan company. We did SO,
incorporating the Bank Of Canton and issuing
to those parties to whom Rowley had negotiat-
ed his loan stock for an equal amount Of bank
stock That is the way those eastern parties
became stockholders in the Bank OF Canton.
They did not put one dollar into the baRk.
They came in by purchasing the stock OF the
American Loan and Trust Company and ex-
changing it for bank stock.
held the majority OF the stock and the con-
trolling interest," ana orperated the bank for o
number Of years. always paying eight per cent.
dividends. In the year 1890 o heavy tax was
levied against bank stocks, and the banks hav-
ing reduced the rate of interest to twelve per
cent in order to comply with the law, the bank
was unable to pay net eight per cent dfvi-
dend, but paid that amount less the taxes
The eastern stockholders objected to paying
their taxes and sent man out here by the
name Of Kingsley to look into matters and If
possible reduce expenses. He made an ex-
animation OF the bank and expressed himself
we'll satisfied with the manner In which the
bank was operated and as director took part in
declaring the December dividend The meet
ing of the stockholders Of the bank for the
election Of officers was appointed to be held on
| the 9th of January 1901. Before that day ar
rived was taken severely i'll with an attack
Of pneumonia and confined to my bed. On the
represe ntation of party east that they did not
desire to control the bank but wanted some
more of the stock as an investment, l sold to
them eight thousand dollars Of my stock; CIV
| ing them the majority. &" ~. .. t.-.
There was certain party in this town VINO
| ent ertained great i'll will against me for the
! reason that had been an attorney against him
| in q lawsuit, q will drag no names into this
controversy unless they come in Voluntarily
who was old acquaintance OF this man
Kingsley. He and Kingsley entered into q
conspiracy to- oust me out Of the bank and
take possession Of my property, On the day Of
the election Kingsley came to my bedside and
informed me that he had decided to make q
| change in the management of the bank and
turn it over to my enemy. They had arranged
to make this enemy president his office
| boy cashier, and certain banker expert
| yice-president and the three with Mr.. Kingsley
directors and requested me to go in as the
| fifth director at once saw this meant O freeze
| out and was taken in figure head to make
| a show of t not being intended to freeze me
out. was to be director but the other four
were Of those who were in the deal to freeze me
! Out. inioT IL. Kingsley that could not
agree with any such arrangement. II they had
| the power legally to freeze me out OF course
should submit but should see that they did it
legally. I requested that the meeting be ad-
| journed one week in order to enable me to be
| present The expert banker, Canton men
and Kingsley were present at my bedside at
about four o'clock In the afternoon OF the day
| on which the meeting was to be held in the
evening. The doctor Rosenbaum) forbid my
going to the meeting stating that it would be
sure death. These parties, bent on freezing
me out refused to make any adjournment in
forming me that it was cold business tran
saction, that they had the power and proposed
to use it, and that could do nothing II I were
there but make trouble.
The cashier and assistant were also stock
4 holders and officers in the bank, each having
all they possessed on earth substantially in the
stock. I directed them to be present at the
meeting and to throw the doors of the bank
open and show these parties all the books and
all the assets of the bank and give them every
assistance in their power to gain an accurate
knowledge of the banks condition. ,.t. ,.
They spent until eleven o'clock Mt night
making an examination and ut eleven o'clock
organized to elect officers. The cashier and
assistant objected and stated that II they In
sisted on electing officers they would 60 out
and take no part. That an adjournment should
be made until could be present, being the
heaviest stockholder in the bank No adjourn
ment would be allowed bull o recess was taken
until the mex morning at nine O'clock and l
was informed at twelve o'clock at night what
was done. sent for DR.. Rosenbaum and ask
ed him his opinion Of the chances II Should
attempt to be present in the morning. He
said that they were ninety-nine to one against
me. told him would take that one chance.
! I had the banks private office warmed up and
nv bed transferred to the ottiee and at nine
o'clo elk was in the bed in the office and the
doctor at my side. When the parties came in
| at nine was there as president Of the bank
| and the bed was the chair 9.
I asked the expert banker what he wculd
say the stock was worth In his judge
ment as shown by the condition in which ne
| found the assets. He said he found the assets
! in good condition and he would call the stock
| good property at ninety cents on the dollar
| I then asked Mr.. Kingsley If he would take
| ninety cents for the holding Of his parties and
! he said he would not, that he did not want to
| sell that he was mot there to sell but to hold
| the meeting. W +".' #sr f.@ ." -'
| I ha6 discovered that Kingsley had transfer
| red some stock to tine Canton men and Sioux
! Falls men and others just the day before and
| that our law prohibited any one taking part
J in n stockholders meeting whose stock had not
| been on the books of the bank ten days. This
disqualified the expert banker and the
Canton man. and left Ms in control. We pro-
| ceeded and elected the board of directors. Civ
ing the eastern parties two and electing three
! ourselves, which left us in control. The de-
feated conspirators went away to Sioux FAILS,
| made an application to the Federal Court for
the appointment of q receiver, alleging that the
| bank was insolvent and its assets were compos-
| ed of ''cats and dogs" and that we were engag-
| ed in conspiracy to wreck it. This affidavit
| was made in the face of the fact that they had
examined the bank and pronounced everything
| all right and in good condition. An injunction
! was issued by the court restraining US from in
! any manner dispOsing OF the assets With ten
thousand dollars of cash in our vaults and
i five thousond dollars with our correspond
| ents and about fifty thousand dollars bills re-