The weekly times-record. (Valley City, N.D.) 1912-1922, 1919-09-25
A. c. TOWNLEY
IN new LIGHT

Rich Quick Wallingf ford I" is SO danger
GUS to the farmers Of North Dakota,
that the state banking board, sensing
the danger and grave possibilities that
might result from Townley's effort to
form country banks in the state has
instructed Attorney General William
LANCER to Immediately warn all farm
ers Of the form Of bank organization
being projected and promoted by,
Townley. NJ
The board, in resolution passed
yesterday, expressed in no uncertain
terms the dangers Of the Townley
method of forming banks among the
farmers. It urges that farmers who
wish to organize banks do 50 in such
q manner that they will be able to say
who will be the officers Of the institu-
tion, the kind of notes it should take
and other matters affecting the actual
operation Of the bank which is inn
possible under Townley's plan.
Fownley's scheme is to 60 into
community, suggest to the farmers
there that they need a bank and then
volunteer to. raise more than one half
of the desired capital himself. The
farmers believing, as they have been,
instructed to believe, that Townley is
god and is always striving to help,
the farmer, thank him profusely for
his splendid offer, get the money need
ed and the bank is formed and started
with Townley owing more than half of
the stock and thereby controlling the
bank, naming it's officers, directing it's
policy and saying what shall be done
with the banks funds.
The banking board points to the
danger nthis method of high finance
stating that such banks fare inimical
to thebest interests of the state guar
antee fund" and that it considers "the
double liability Of the league exchange
valueless." The board urges the farm
ers to form their own banks so that
they will mot be subjected to 1dicta-
tion Of any person or corporation"
The resolution as passed by the
banking board Thursday in full is as
follows: ~
Whereas information has come to
this State Banking board that A. G.
Townley and man from San Fran
cisco by the name of Cutting, are out
among the farmers of this state or
ganizing banks which are SO organ
lied that a corporation controlled by
A. C. Townley owns 81 per cent Of the
stock in each bank with the result
that the farmers putting their money
in, will have nothing to say about the
actual operation Of the bank, who will
be officered, what kind of notes it
should take, ETC., and
Whereas, the banking board con-
siders> the double liability of the
league exchange valueless, and
Whereas, banks organized as out
lined above are inimical to the best in
terests of the state guarantee fund.
Be it resolved, that q warning be
sent out by the attorney general Of
this state, warning the farmers of this
form of bank organization and furth-
er that the board urge the farmers
that wherever they feel that bank
is needed that they subscribe to all the
stock themselves, that when they put
their money into a bank that they
have something to say about who is
running it, the kind of notes to be ac-
cepted, that they elect their own board
Of directors and not be subject to die
tation Of any person or corporation,
and further that the board assures the
farmers that they will do everything
they possibly can to assist in the or
ganization of blanks which are actual
ly controlled by the farmers them
selves.