The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-10-10
| ANGER AND HALL DIRECT FINANCIAL
BLOW AT FARMER MOVEMENT

In a supreme effort to wreck the
League and its allied or
ganizations, William LANCER and
Thomas Hall, comprising the majori-
ty of the State Banking Board, or
dered the Observation-Disclosures
bank in Fargo closed Thursday and
placed Deputy Bank Examiner P. E.
Halldorson in charge as receiver.
This action was taken over the pro-
tests of Governor Frazier, third MEM
Der of the board. who demanded a
of the question before ac-
ton, and who vetoed the proposal.
Hall and LANCER ordered the bank
closed for two alleged reasons First,
that it is insolvent; second, that it has
violated state banking laws in max
ing certain excessive loans. Officers
of the bank declare that the bank is
not insolvent, but is in the most pros
porous condition in it's history. They
point out that if excessive loans have
been made, the directors should have
been given the opportunity to reduce
them. This procedure, they say, has
always been followed before. If all
the banks were closed which have ex.
cessive loans on their books, they say
half the banks in the state would not
be allowed to open their doors today.
Masked Assault on League
The reasons alleged by LANCER and
Hall for closing the bank are clearly
d blind. Following the closing of the
bark, LANCER and Hall took it upon
themselves to order all banks in the
state to eliminate post-dated check
from among their security holdings.
Such action was in direct contrast to
the attitude of the depositors' guar
antee fund commission, which has
gone on record that post-dated checks
are acceptable security. The following
day these men issued a public state
ment to the farmer-owned banks
throughout the state that have &C.
cepted such security, warning them
to take "all precautions" to prevent
a "run," and ordering the banking
examiner to make an investigation OF
these banks. The effect of these acts,
so far as they were able to break
down public confidence, would be to
destroy the value of farmers paper
as collateral and start run on the
farmer banks. Such a result would
constitute a powerful financial blow
against the Nonpartisan League ano
the farmers movement even it it die
so at the cost of a financial crash In
North Dakota.
Political Plot Revealed
That these actions were the cul
mination of a we'll laid political plo1
is indicated by the following facts:
At meeting of the banking boart
week ago, LANCER and Hall persuad
ed State Bank Examiner Lofthus tt
send Mr.. Haldorson to check up
trust company in Fargo against which
stockholder had made a complaint
Assistant Attorney General Alber
| Sheets was sent with him. lnsteat
of checking up the trust compan.
Halldorson and Sheets made specia
examination of the Scandinavian
American Bank.
In the meantime, State Bank t,X
aminer Lofthus was gotten out OF tn
way on a subterfuge, LANCER and Hal
having sent him to Florida to invest1
stock in North Dakota. With ActinI
gate a corporation desiring to sci
Bank Examiner Simmingson ignoran
of what was going on, Halldorso
made a report which was used at tn
Thursday meeting as an excuse t
close the bank and appoint Halldo1
son temporary receiver.
The attorney general refused t
give out the report of Halldorson an
i Sheets, although the report wa
i printed in apparent verbatim form 1
the |. V. A. organ.
Law Over-ridden
i Although the law specifies that tn
bank guarantee fund commissio
, shall be called in by the state ban
examiner when he shall suspect thu
, conditions are not as they should b
LANCER and Hall over-rode the d'
mand of Gilbert Sommingson, actin
bank examiner, that the members {
. the commission be called in as PR
vided by law, and ordered the ban
t closed.
81 In the TcpoIt given W VIZ
: organs are the following list of loal
: alleged to be the cause for the actie
of the banking board:
= Loans on Which Closing is Baset
Loans of $4,000 to the Consur
ers' United Stores Company.
Loans of $148,824.26 to the Natio
al Nonpartisan League.
Loans of $66,182.28 to the Leag'
Exchange. -
Loans of $47,950.06 to the Publis
ers' National Service Bureau.
Loans of $1,000 0 to the Unit
States Sisal Trust, on the notes
j. r. Waters, former bank examine
end manager of the Bank of Nor
Dakota.
Loans of $47,O8S to H. D. Hagge
l. Ill. l. Irac% %rV1