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

John y. Hastings, financial aide to
A. Z. Townley, president of the nom
partisan league, does not consider
that the amount of his commission on
the Valley City bank deal was "any
OF the business" of the farmers who
pat up shs 100000 capital and $50
OGA *anrlus with which to purchase
I'her american National bank stock
which Hastings bid in at $162 900. a..
This is said to have been Hastings
repIyto question from a member of
the state banking board who desired
to know whether the nonpartisan
league farmers who financed Hast
ings' Valley City operations were
hep to the deal.
j, Hastings admitted that it was rath-
err difficult to explain to the banking
board all of the involved details of
the Valley City transaction, He re-
ferred to the assets which could not
be revealed zrrdl to private accounts
and the resources which could be re-
caxersd a111y through judgments.
He spoke in detail of the banking
practice which enabled him to charge
the American Exchange bank, the
state. institution financed by Barnes
county farmers, $4,000 for a bank
Building which the American National
bank had carried os an asset of but
S42,0UU- The fact that President
Grady also succeeded in unloading
his home during the transaction was
also something else again. Mr. Hast
ings is repored to have Informed the
banking board
Consumers Store Co. In
~
was in the deal to the extent of 10C
shares The Consumers Co., fol
which Hastings claims to be acting as
fiscal agent without remuneration, al
so invested in some of the stock of {
bank at Hatton, which Hastings
bought or founded for the league. The
Kimball-Hastings Co. was mentioned
but it did not appear to have cut much
figure in the Valley City deal.
Indignant when the ability of tn
Consumers United Ctore Co. to NEE
its obligations as shareholder
WHICH would make it liable for twice
the amount of it's stock, Hastings i
said to have informed the board tina
the Consumers Co. had a million AM
a half in assets, and that it would b.
considered good anywhere for at leas
s1,250,O0O. These resources, Tasting
is said to have stated, are entirel,
at the disposal of the directors of tn
Consumers Co. The stockholders, ap
parentIy have no claim on them
Hastings explained that not owe
SIG, oGO was invested in any consum
ers' store, and that thes stores wer
restricted to an earning of not to ex
coed 10 per cent. Any single stor
company might, however, he stated
have 800 certifcate-holders, each pay
ing 500, and the difference would g
into the general jackpot, which tn
directors were authorized to use TO
the good of the cause, for the purchas
Of banks, the financing of other leagu
enterprises, or for "education an
propaganda
Tcwnley Knew of Plan
The reorganization or purchase O
the American National of Valley City
hastings is said to claim, was direct
ed by President A. C. Townley Of tn
National Nonpartisan league las
June. None Of the banks which Hast
Tngs organized, he contends, were con
sidered without the full knowledg
and approval of those who would prin
rpaIIy profit from the enterprise. TIL
banking operations, he stated, wer
conducted with a view of increasing
tn leagues financial resources and
give it added prestige in various com
munities.
!. Originally the organization of bank
was undertaken without charge to tn
stockholders. This plan resulted in
loss. Then the scheme of charging
81, Cd H. ~
mes claims that none of the stock
holders of the various institution