Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-22
BOARD DENIES =
APPROVAL OF
BANK MERGER
Resolution Condemns Use Of
Factions Name to Sell
Worthless Stock.
/ (By STAFF Correspondence

w or IllleSS 0IOCk.
(By STAFF Oorrespondent.)
Bismarck, N. D. Feb. 21.-Follow-
ing an interesting examination Of
John Hastings, organizer Of the Non
Of the Peoples State Bank Of Grand
Forks, the state banking board fail
ed to approve the merger of the Am
erican National bank and the Ameri-
can Exchange bank of Valley City.
Thirty-five thousand dollars is the
amount the promoters, headed by
John Hastings. of this Valley City
bank reorganization scheme, are said
to have cleaned up.
/ h board refused to approve the
amalgamation. of the two institutions
on the ground that a number of the
notes taken from Barnes county
$500. 900, American Exchange bank
which is to be incorporated under the
laws of North Dakota, were not Sc
cured by collateral o. individual sig
natures
The American National bank of
Valley City, through the Hastings re-
organization, becomes a state bank,
of a long string Of such institu-
tons which Hastings, operating in
the name of the league, has purchas-
ed or established during the last year!
The promoters y of league banks,
league newspapers. league lumber
companies and other league "organ-
nations are assailed in the follow
ing resolution prepared by Secretary
of State Tom Hall:
ts1yL.... "a A. 49, -4ASno
! of the members Of the state banking
board that scores Of promoters and
stock statesmen are travelling over the
state representing to prospective pur-
chasers that the stock they are offer
ing is endorsed by the members OF
the state banking board, the state ad-
ministration OF by the Nonpartisan
league or by some other political as
ISOLATION and
whereas, it has come to the no
tice Of the members Of the state
banking board that because Of these
representations and largely on sthe
that such associations are fostered
and encouraged by the state admin
%istration OF some political party or
faction, and
Whereas, many Of the securities
offered were wholly speculative in ma
LuAO, 4AdvAli6 ouI-A1kSAS VI ~ 1SolT 4AtOAs
it or value or feasibility Of plan upon
which to base a practical going bust
ness, and many OF people are in
vesting their money in such stock and
enterprise, and
Whereas, such. speculative securi-
ties are being sold in this state in Vi
olation of what is known as our blue
sky law, therefore
"Bt it resolved, that the governor,
as the chief executive and as the
president of the state~banking board.
be requested to call the the attention
of all prosecuting attorneys in the
state to the provisions of chapter 81,
session laws 1915. and to section 1868
of the compiled Jaws Of 1913, and
BE 1t further resolved, that the
secretary of the state banking board
publish a notice of warning substan-
TALLY of the effect Of this resolution
and in conformity thereto, il each of
the daily newspapers OF the state and
five other papers having the greatest
circulation, to the end that the pub
lie generally may be warned against
the Vaccinations and false represent
%tations made by the horde Of cor
poration spawners now %infesting our
state, and be it +.
Further resolved, that the ex-
pcnse Of publishing these notices one
time in each of the above mentioned
publications, be paid out Of the ap-
preparation for public printing, as set
out In Nchapter "A, sessions laws Of
1917. upon vouchers to be submitted
by the state auditing board for ap-
prevail"
Governor Does Not Sign.
Governor Frazier and Attorney
General LANCER did not ioin Hall in
signing the resolutions, but LANCER is
said to have declared at the end of
the interview with Hastings that he
favored such resolutions, but that
they were not drastic enough. 1t is
understood that he is preparing reso-
lutions that are even more scathing.
1t !s a very conservative estimate
to state, Hall declares, that several
million dollars have been subscribed
since the league began operations In
this state to alleged league industrial
and commercial enterprises, using the
name of the league to influence
farmers to part with their money.
The Home Lumber Co. was an ear
~ instance Of this kind. Whether
with the approval Of the company It.
self or otherwise. Il ID claimed that
stock statesmen did represent to pros
pective investors that Governor Fra
zier. Attorney General LANCER and
other big leaguers were back Of this
oncern and that stock sales were
made on this basis.
It 10 also alleged that at least one
group OF some 80 farmers in the VI
/ entity OF Werner who invested In
stock Of the Home Lumber company,
with the. understanding that orders
Q lumber. post and other supplies,
| placed With the agents, would be
hlled at}6o per cent OF the prevaiiing
market price. are still awaiting the
delivery Of their lumber. Il also n
claimed that their notes have been
n~eEotiated and money secured upon
Other investigations 81 the activi-
ties OF the so-cailAd Corporation
spawnersg may follow the banking
I valley City bank deal