The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-02-25

: John j. Hastings, financial aide to
A. c. TOwnley, president Of the Non
partisan league, does not consider that
the amount Of his commission on the
Valley City bank deal was "any .Of the
husnnss"of The, farmers. rho, put, np
the S2OD,nOO capital and $4,000 sur
plus with which to purchase the Amer
lean National bank stock which Hast
ings bid in at $162, ,OOO
This lis said to have been Hastings
reply to a question from q member of
the state banking board who desired
to know whether the Nonpartisan
league farmers who financed Hastings
Valley City operations were '"hep" to
the deal - ao g,.,st. .,.5cs3,
Hastings admitted that it, was ,rath-
.er difficult to explain to the banking
board all of the involved details Of the
Valley City transaction. He referred
to the assets which could not be re-
'vealed and TO private accounts and
to resources which could be recovered
only through judgments.
He spoke in detail Of the banking
practice which enabled him to charge
the American Exchange hank, the state
institution financed by Barnes county
farmers. $4,000 for bank building
which the American National bank
had carried as an asset Of but $4o, 900.
The fact that President Grady also
succeeded in unloading his home dur
ing the transaction was also something
else again. Mr.. Hastings is reported to
have Informed the banking board.
CONSUMERS STORE co. IN
The, Consumers United Stores Co..
was in on the deal to the extent Of 100
shares. The Consumers Co., for which
Hastings. claims to be acting as fiscal
agent without remuneration, also in
vested in some of the stock of bank
at Hatton which Hastings bought or
founded for the league The Kimball-
Hastings Co. was mentioned, but it did
not appear to have cut much figure
in the Valley City deal
Indignant when the ability Of the
Consumers United Store Co. to meet
its obligations as shareholder. which
would make it liable for twice the
amount Of it's stock. Hastings is said
to have informed the board that the
half in assets, and that it would be-
considered good anywhere for at least
81 .OOO These resources. Hastings
is Said ITO have stated, are entirely
at the disposal Of the directors Of the
Consumers Co. The stockholders, ap-
narently. have no claim on them.
Hastings explained that not over
$4,000 was invested in any consup-
erS' store and that these stores were
restricted to an earning of not to ex-
ceed 10 per cent. Any single store
company might. however. he stated.
have 800 certificate-holders, each pay
ing 500. and the difference would 60
into the general jackpot. which the
directors were authorized to nse for
the good of the cause. for. the ptrchase
of banks. the financingsdf other leag,ie
enterprises, or for ''education and
propaganda.
TOWNLEY KNEW OF PLAN
The reorganization or ylrchase at
the American National Of Valley City,
Hastings is said to claim. was direct
ed by President A. G. Townley Of the
National Nonnartisan league last June.
None Of the hanks which Hastings or
ganiZed, he contends were considered
without the fun knowledge and an
proval Of those who would principally
profit from the enterprise The bank.
ing onerations. he stated, were con-
Quoted with view to increasing the
leagues financial resources and to give
it added prestige In various c0mmuni-
ties.
Originally the organization of haAka
was undertaken without charge ia. fie
stockholders. This plan resulted In 4
Continued on Page Neaf.)