The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-06-29
OFFICIAL COUNTY PAPER
THE ADOPTION OF THE GUAR
ANTY PLAN.

There really is nothing very COM
fplioated In the guaranty fund plan
adopted by the Mitchell Commercial
Fclub at its annual meeting Tuesday
evening. 1t may require some elabo-
e paper to insure its legality. but
system is simplicity itself.
his '"Williamsport plan' as it is
he'd after the Pennsylvania town
that first used it, is in principle no
different from the process of indors-
Ing some ones note. The subscrib-
ers to the plan indorse the note OF
some industry that is approved by the
organization. Each subscriber thus
becomes liable upon the note in the
percentage that his subscription
bears to the whole amount. If
John Jones has subscribed. $1,000
and the total fund is 500, 900. then
he becomes liable for one hundredth
part of the loan, providing payment
is defaulted. In actual practice his
liability would not be this much. for
the chance OF, a total loss on any loan
would be exceedingly small and the
chance of eve a partial loss would
be remote.
The proposed organization would
be co%nservatively managed. Any APP
plicant for a loan must first pass the
scrutiny of the board of control and,
If he succeeds in getting the approval
Of that body, then he must run the
gauntlet of the board of a~ttorneys-;n-
fact, consisting, no doubt, of bank
ers. Ii this second body also APP
proves the proposed enterprise, then
the loan is authorized. The bank Is
secured by the guaranty Of the sub
scribers to the fund. If the loan is
paid, then the subscribers hear Moth
ing about 1t. If there is a loss on
the loan, then the subscribers prorate !
in making it up.
Naturally those in charge Of the
rr ~ or,io1t{o, I'LL r. @~s.., - -,-i
serve it for future usefulness by
making no mistakes in the way of
backing an unworthy concern. THIS,
together with the fact that the loan
will be watched by the bank making
it just the same as any other loan,
will operate as protection for the
subscribers.
Backed by such an organization,
the Commercial club can become a
most useful agent in securing new in
dustries. If any project promises be-
yond any reasonable doubt that 1t
will make good with the help of tenn
porary assistance, then Mitchell will
stand a better chance than any 9TH
err city in the state to secure 1t, for
the reason that no other city has this
plan of c%ityzbuildins.
With the same spirit in which they
guaranteed the loan made to the
Corn Palace association, the people Of
Mitchell will no doubt be glad to
make liberal subscriptions to this
guaranty fund that will become a
standing invitation to new industries.
A4e<A@
CLAWS AND PINCHOT V1ND1-
GATED.
The Ballinger case may 10 be con-
sidered as closed. The verdict is
against Ballinger
AS told in a dispatch to The Re-
publican yesterday, Secretary Fish
er. Ballinger's successor at the
head of the interior department, an
nounced a decision rejecting the
Cunningham claims. This was done
because it was found the dummy
claimants had promised to turn these
lands. worth a billion dollars, over
a billion dollars, over to the
ACKNOWLEDGEMENTS syndiate. This,
in effect, is what was charged by In
spector CLAWS. CLAWS lost his posi-
ton. Clifford Pinchot. chief forrest
er, backed CLAWS in his charges, and
Pinchot was discharged. Now, after
all the contumely thrown upon the
accusers of Ballinger, the govern