The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-10-10

LANGtk ANU HALL
BLOW AT FARM
In supreme effort to wreck the
Nonpartisan 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 men,
ber of the board. who demanded a
discussion 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 its 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 al.
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' quar-
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 ac-
cepted such security, warning them
to take "all precautions" to prevent
4 a and egdesing the banking
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 a run on the
farmer banks. Such result would
constitute powerful financial blow
against the Nonpartisan League and
the farmers movement even if it did
so at the cost of a financial crash in
North Dakota.
Political Plot Revealed
That these actions were the cul-
mination of a well laid political plot
is Indicated by the following facts:
At meeting of the banking board
a week ago, LANCER and Hall persuad-
ed State Bank Examiner Lofthus to
send Mr.. Haldorson to check up a
trust company in Fargo against which
a stockholder had made a complaint.
Assistant Attorney General Albert
Sheets was sent with him. Instead
of checking up the trust company
Halldorson and Sheets made special
examination of the Scandinavian
American Bank.
In the meantime, State Bank FIX
aminer Lofthus was gotten out Of the
way on subterfugc, LANCER and Hall
having sent him to Florida to invest1-
stock in North Dakota. With Acting
gate a corporation desiring to sell
Bank Examiner Simmingson ignorant
Of what was going on, HalIdorson
made a report which was used at the
Thursday meeting as an excuse to
close the bank and appoint Haildor
son temporary receiver.
The attorney general refused to
give out the report Of Halldorson and
Sheets, although the report was
printed in apparent verbatim form IN
the l. V. A. organ.
Law Over-ridden
Although the law specifies that the
bank guarantee fund commission
shall be called in by the state bank
examiner when he shall suspect that
conditions are not as they should be,
LANCER and Hall over-rode the de-
mand Of Gilbert Sommingson, acting
bank examiner, that the members of
the commission be called in as pro-
vided by law, and ordered the bank
closed.
In the report given to the l. V. A..
organs are the following list Of loans
alleged to be the cause for the action
of the banking board:
Loans on Which Closing is Based
Loans of $4,000 to the Consum-
ers' United Stores Company.
Loans of $148,824.26 to the Nation
al Nonpartisan League.
Loans of $66,182.28 to the League
Exchange.
Loans of $47,95O.O6 to the Publish
ers' National Service Bureau.
Loans of $1,000 0 to the United
States Sisal Trust, on the notes of
J. r. Waters, former bank examiner.
and manager of the Bank of North
Dakota.
Loans of s47,0S8 to H. D. Hagger~
ty, former associate of John Hastings