The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-03-06

! "iliSH ne Hodteu objected TO Cne pay
ment of this fee. The work was done
speedily and efficiently. he declared
and the stockholders generally were
pleased with the result
| Loans Were Shut OFF.
The reorganization of the Valley
| City bank was undertakn after Presi-
dent Grady had shut off loans to the
league. He had loaned, it is claimed,
as high rs $3.50 to the organiza-
ton. He shut down on league credit,
it is alleged, when "Bill' Lemke,
chairman of the republican state CEN
trail committee and one Of the Big
/ Five in the National 'Nonpartisan
league, appeared as attorney in an ac-
ton on which Grady, Hastings is said
to have claimed stood to lose.
Grady, Hastings is alleged to have
Informed the banking board, resented
Lemke's activity in this matter and
insisted that in return for the accom-
; mediation he had given the league,
Lemke should withdraw. Lemke, said
Hasting, for "ethical reasons" could
not do this, but shortly thereafter the
action was dismissed for prejudice.
Earned His Bit
I HC 1SoI SAIlALdClO1l VI CLC AlI1CllNdll
: : National proceeded Hastings alleged
~ =. this job, and he felt that any little
: side money that he may have realized
, from the transaction was earned.
o The earnings, roughly estimated,
! were.
Promotion fee of 10 per cent
on S2O0,00O00 .......S 100000
q Profit on purchase Of ma
y Jority stock in American
: National .............. 100000
j. Margin on price of bank
q building, the difference be-
6 tween $4,000, the Ameri-
q can Nationals valuation,
! and $4,000, the Ameri-
!, can Exchange price. 49,. 100000
10 TOTAL 9oL ,UUU.O'
~ Of this amount Hastings is said tt
- have been required to put back int
~ the American Exchange bank tn
;s morning of the banking boards in
IT vestigation $4,000, the bank exam
~ iner having stated that the bank
w capital and surplus Of S230,000 wer'
II impaired to that extent. This woult
~ leave net earning on the transaction
" of only SAT 900, not including any bi
" which may have been margined on tn
,e turning of President Grady's home il
=, Valley City, which Mr.. Hastings i
-, -. said to hold, was purely a persona
y, matter.
- And, at that, Jack doesn't like tn
&c banking game. He told the bankin,
y. - board he would much prefer to cut i
.fo11 hool- ~ hic old i0h h11
~ that Townley did not seem able t.
Y find anyone else to handle this work
70 and, "for the good Of the cause
~ Hastings stuck, even when a diligen
- seven or eight months business pro
20 duced but $4,000 profit.
.55 Olson Doesn't Know
ia When President Olson of the Amer
lean Exchange bank admitted to tn
banking board that some farme
u stockholders had been told by some
y. one that the bank could get none
t. at two per cent and loan it at eight
le Mr.. Olson was slightly confused,
st according to Hastings version. Hast
t. ings admitted that the man picked b
n the league to head the Valley Cit
se institution didn't know much abou
n banking, and that an "active" ma
re was to be placed in charge.
re Has Been Fall Guy
lg Organizing league banks hasn'
to been all milk and honey, said Hast
n :ngs. Down at Leith, for instance
the cashier placed in charge Of tn
IS league bank, without bond, drew som
re $1,000 worth Of drafts which he ney
a err charged up and skipped with tn
a proceeds and Jack had to make thi
tt good out Of his own pocket.
k Then there was another instance
ms in some other enterprise. where