The Bridgeport times and evening farmer., 1919-10-03
LOANS MADE ID TOHNLEY CLOSE
 BANK IN FARGO Dealings With Nonpartisan League Companies Re vealed and Questioned. RECEIVER IS
 NOW IN POWER Officials Accused of Ad- vancing Funds in Axcess
 of Legal Limit.

Fargo, N. D., Oct 3-The Scandi- navian-A1n nerican Bank of Fargo was yesterday declared insolvent by the State Banking Board and was order eI placed in the hands of a receiver. Violations of the state banking law are charged by the Banking Board.
 The banks liabilities are $1,606.- S47.43, but depositors are protected against loss by the State Guaranty of Deposits act.
 The banks association with the National partisan League, for which it has acted in a financial ca pacity for about two years, is largely responsible for yesterdays action, ac- cording to the official report of the banks condition. 4. E. Sheetz, As sistant Attorney General, and two deputy bank examiners, who have been in the bank since last Sunday afternoon, placed before the Banking Beard the Information on which yes terday's action was based, and in his report MT. Sheetz characterizes the bank as "a vast, unwieldIy financial monstrosity unable to take care of it's obligations
 Conditions which have contributed to the alleged insolvency of the bank. as given in the report of the Assistant Attorney General and the Bank Ex- anliners include, among others, loans of $170,000 to the Consumers United Stores Co.,, $143, ,S24.26 to the Nation al Non-Partisan League, S66,1S22S to the League Exchange. and $47,95O.OG to the Publishers National Service Bureau. Excess loans, that is loans made to companies and to individuals in excess of the legal limit of loans which may be made by the bank on the basis of it's $50. 900 capital and $10,O0O surplus, are placed in the ex- animation report at $134,194.S2
 The consumers United Stores Com pany is a private mercantile establish ment capitalized at 0,OOO. controlled by A. c. TownIey, President of the Non-Partsan Leagu The League Exchange is corporation also or ganized by Mir. TOwnley, controlled by him, and which he some time ago testified in bankruptcy proceedings was intedned to finance the Non Partisan Leagues political activities
 The Publishers National Service Bureau is a, corporation which owns and controls a string of country news papers in North Dakota. It was also organized by MT. TownIey and is in tended to control country newspapers financed Dy farmer members of the Non-Partisan League. The National Non-Partisan League itself as a '.voI- untary association and no personal responsibility for the leagues debts is attached to the mem bership.
 4 further startling revelation in the report is that several hundred thousand dollars of collateral. such as post-dated checks. notes, &,c., given to the Non-Partisan League and the Consumers Store Company are, it is charged, not even controlled by the bank, but are in charge of woman in the employ of the league and the Consumers Store company. Of the collateral supposed to be in the bank supporting loans to the Consumers Store Company, the report by the as- sistant Attorney General and the deputy bank examiners discloses that much of it has been taken out of the bank and is in the hands of the Consumers Store Company, which A. c. Townley, President of the Non Partisan League, is now personally promoting.