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

w VI Il11CSS
(By Staff Oorreepondent.)
Bismarck, N. D. Feb. 21.-Follow-
John Hastings, organizer Of the Non
partisan league banks and an officer
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
to have cleaned up.
T. The board refused to approve the
amalgamation. of the two institutions
on the ground that a number of the
notes taken from Barnes county
farmers in exchange for stock in the
100000, American Exchange bank
which is to be incorporated under n
laws of North Dakota, were not Sc
cured by collateral or individual sig
natures
The American National bank Of
Valley City. through the Hastings re-
organization. becomes a state bank,
StS W " ASA6 okAAi6 I'll oAS4A
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:
Whereas. it has come to the notice
Of the members of the state banking
board that scores Of promoters and
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, or 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 the
that such associations are fostered
and encouraged by the state admin
istration or some political party or
faction, and
Whereas, many Of the securities
ture, having. but little or no real mer-
it or value OF feasibility Of plan upon
which to base a practical going bust
ness, n many Of III 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 h provisions of chapter 81,
session laws 1915. and to section 1868
OF the compiled laws Of 1913, and
B it 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, in 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 represen-
t~ations made by the horde of cor
poration spawners now infestine our
state, and be it
Further resolved. that the ex-
pense 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
put in Nchapter ~, 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
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-
buttons that are even more scathing.
It is q very conservative estimate
to state. Hall declares. that several
million dollars have zen 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 par
ly instance Of this kind. Whether
with the approval Of the company IT,
self or otherwise. It Is claimed that
stock saiesmen did represent to pros
pective investors that Governor Fra
xier, Attorney General LANCER and
other big leaguers were back Of this
concern and that stock sales were
made on this basis.
It 10 also alleged that at least n
group of some so farmers in the VI
entity. Of Werner who invested in
stock Of the Home Lumber company,
with the. understanding that orders
placed Nth the agents, would be
filed at 50 per E n OF the prevailing
market erice. are still awaiting the
delivery Of their lumber. It also IN