Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-22
BANK INQUIRY May lead TO Am
INVESTIGATION OF FINANCIAL
RECORDS OF HASTINGS AND BOX
LANCER Secures Enough De-.
tails on Valley City Affair
D. to Warrant an Investiga-
ton into Other Matters.
(By Stan correspondencel

Bismarck. N. D.. Feb. 22-The
North Dakota banking boards inquiry
into the Valley City banking deal re-
Gently pulled off by John Hastings and
Thomas Allen Box may result in an
investigation into the entire financial
careers of these two affable gentlemen.
Attorney General VIM. LANCER, In his
investigation this week secured
enough details anent the Valley City
affair to warrant an investigation into
other matters, it is said, and some in
teresting developments are anticipat-
ed.
Hastings and Box, it is said, have
realized $4,000 profit in fourteen
months and the financial deals whore
by they realized this amount may
come under the scrutiny of the attor.
ney general. In his inquiry. Thursday,
LANCER learned few interesting
ceived $4,000 from the farmers to
whom they sold stock in the Ameri-
can Exchange bank. Over night. the
value of the American National bank
building of Valley City was increased
from $4,000 to $4,000. The assets Of
the American National bank Of Valley
City have been impaired $4,000.
Hastings and Box also had private
deal with James Grady, president Of
the American National bank, whereby
they profited for aiding him in the
sale of the bank to the American Ex-
change bank. Hastings refused to tell
LANCER how much Grady paid him for
the sale of the National bank
The Consumers United Stores COM
pany subscribed $4,000 of the stock
of the American Exchange bank.
Thomas Box had. in the bank, an
unsecured note for $4,000 for stock in
ment company, in which Box and
Hastings are officers. had, in the bank,
an unsecured note for $4,000 covering
the purchase price for James Grady's
stock in a bank at Courtenay, N. d.
Said Townley Sent Him.
A significant fact in connection with
the examination of Hastings is that
he declared, in answer to a question
by LANCER. that he had been sent to
Valley City to consummlte the bank
deal by A. c. Townley, personally. It
also is interesting to note that he said
ne would rather not tell" how much
James Grady paid him and Box for
negotiating the deal with Barnes coun-
I, ty farmers.
Hastings declared that it was prop-
er to employ $4,000 of the Consum-
ers United Stores company in the pur-
chase of bank stocks because the
purchasers certificates provide that
certain funds may be used for "edu-
cation and propaganda" under which
made. s. - =
Hastings is president Of the Con-
sumers' United Stores Co. and he
told the banking board that the or
ganization had assets of one and
quarter million. The application of
the American Exchange bank to
amalgamate with the American Ma
tional bank resulted in the investiga-
ton. William Olson, Barnes
county farmer, came to Risnarclx
early this week to ask permission to
amalgamate the two institutions. He
| went to the banking board, composed
of Governor Frazier, Secretary. Of
State Hall and Attorney General
! LANCER. and asked permission. He
was questioned by LANCER as to the
| details of the transaction and one Of
| his first admissions was that Box
| and Hastings had received $50. 900
| from the farmers in the form OF COM
missions for putting the deal across.
| Olson did not know great deal about
the transaction, SO Hastings and Box
were subpoenaed and they arrived
here Wednesday. Hastings was aues-