The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-10-04
FARMERS LEAGUE HITS
FARGO NATIONAL BANK
Another Attempt to Reform World
BY sys.em in Trouble in North
Dakota

Fargo. N. D., Oct. 2.-The Scandi-
nayian- American Bank of Fargo was to
day declared insolvent by the State
Banking Board and was ordered plac-
ed in the hands cf a receiver. Violat-
ions of the State banking law are
charged by the Banking Board.
The banks liabilities are $l,606, S47.-
40, but depositors are protected against
loss by the State Guaranty of Deposits
act.
The banks association with the Ma
tional Nonpartisan League, for which
il has acted in financial capacity for
about two years, is largely responsible
for todays action, according to the of
fetal report of the banks condition. A
e. Sheetz, assistant Attorney General
and two deputy hank examiners, who
have been in the bank since last Sun
day afternoon, placed before the bank
ing board the information on which
today's action was based, and in his
report Mr.. Sheetz characterizes the
bank as "a vast, unwie dy financial
monstrosity unable to take care of its
obligations
Conditions which have contributed
to the alleged insolvency of the bank,
as given in the report OF the Assist
ant Attorney General and the Bank
Examiners include, among others,
loans of $4,000 to the Consumers
United States Company, Sl43,S24 20 to
the National Nonpartisan League, $685.
lS2.2S to the League Exchange. and
SAT 9500G to the Publishers National
Service Bureau Excess loans, that is,
loans made to companies and to indi-
viduais in excess of the legal limit of
loans which may be made by the bank
on the basis of its $4,000 capital and
$4,000 surp'u us, are placed in the ex-
animation report at $734,194S2,
The consumers United Stores com
pany is private mercantile establish
ment capitalized at $4,000, controlled
by A, C. Townley President of the
Non-P Partisan League. The League
Exchange is a corporation also organ
lied by MIR. Townley, controlled by
him and which he some time age
testified in bankruptcy proceedings
was intended to finance the Non-Par
tisan Leagues political activities The
Publishers National Service Bureau is
a corporation which owns and controls
a string of country newspapers in
North Dakota. 1t was also organized
by Mr.. Townley and is intended to
control country newspapers financed
by farmer members of the Non-Parti
san League. The National Non-Parti
san Learue itse is a voluntary as
ISOLATION" and no personal responsible
ty for the leagues debts is attached
to the membership,
A further startling revelation in the
report is that several hundred thous-
and dollars Of collateral, such as post
dated checks, notes, &c, given to the
non Partisan League and the Consu
mers Store company are, it is charged
not even controlled by the bank, but
are incharge of the league and the
Consumers Store company OF the
collateral supposed to be in the bank
supporting loans to the Conusmefs
Store company the report by the as
sistant attorney general and the de-
putty bank examiners discloses that
much of it has been taken out of the
bank and is in the hands of the Con.
sumers Store company. which A. c.
Townley, president of the non-Partisan
League, is now personally promoting