The Bismarck tribune., 1919-03-28
T0WNLEY CHAIN:
ST0R ES AGAIN
DEFY THESTATE
Officials Completely Ignore Re.
quest From North Dakota
Banking Commission
TO USE STERNER MEASURE
Possible That Board Will Not
Again Resort Merely to
Polite Invitation -
TO USE STERNER MEASURE

Tho officers of the Consumers
United Stores Co., one of the several
league business Institutions controlled
by TOwnley, accentuated their de-
fiance Of the edicts of the state bank.
ing board by a second time Thursday
refusing to appear in response to an
invitation from the blue sky com
mission for a conference.
The blue sky commission took no
further note of this defiance than
to issue another invitation. If this
invitation is ignored, it is understood
that more powerful means Of suasion
may be resOrted to.
The blue sky commission acted un-
i der an opinion from the supreme
court. holding to be speculative certi-
ficates similar to those offered for
sale by the Consumers Stores Co., in
this instance being sold by the Lig-
mite Consumers Mining Co., of which
Samuel j. Aandahl OF Litchville.
chairman of the state railway com
mission.
This opinion was handed down two
weeks ago, and imme iiately thereaf
ter the blue sky board served the
Consumers' Co. with an order to
cetase selling it's certificates until it
had complied with the provisions of
the states blue sky laws.
This order was ignored in curt
letter from officials OF the company
in which they informed the blue sky
commission that it had no control
over their business. The blue sky
=! board then issued an invitation to the
. officials Of the Consumers Co. to
come III Thursday and talk things
over, purlSulurly with view to-. re-
establishing, the Conspmers United
Stores Co. on cooperative basis un-
der which the certificate-hoIders
who have invested more than 81 800
900 in the concern, will have, some
}Eshare in its profits and a voice in
its management.
The second communication has been
ignored entirely, except in the Town
ley newspaper organ at Fargo, which
has used the action of the bue sky
commission as preteXt for series
of attacks upon Attorney General
LANCER, who with Secretary of State
Hall and Governor Frazier constitute
the blue sky commission.
1t was in connection with one of
the ToWnley's organs stories impugn-
ing the motives of Attorney General
LANCER in seeking an investigation OF
the TOWnley chain store system that
charges were made that a fund Of
$4,000, to which Fargo wholesalers
and joobers had contributed, was be-
ing raised in the Twin Cities for the
purpose of throttling the Consumers
Co. The publication Of these allie
cations was Immediately followed by
an offer Of O. reward of 81 900 by At
torney LANCER, who served notice per-
sOnally upon President A. C. Townley
and the Courier-News that this sum
had been deposited in a Mandan
bank to the credit of amy person who
would produce proof that the Courier.
News charges of an illegal combina-
tion against the Consumers Stores
Co were founded on fact
The Consumers Co. is much in the
position of the Equity Cooperative
Packing Co. of Fargo and the Equity
Exchange of St. Paul. Both of these
concerns were alleged to be operating
in North Dakota without having COM
piled with the provisions of the blue
sky act. They were notified to cease
\ selling stock in North Dakota until
they had procured. the approval Of
the blue sky board. Both companies
promptly appeared before the blue
e1,,y ,,,Niy y,fny Crir u
clean bill Of health. The ban on the
sale OF their stock was, immediately
removed. ~ q
The banking commission is at a
loss to understand why the. Consum.
ers United Stores Co., a TOwnley or
ganization, should not be equally will
ing to have it's affairs investigated,
in order that the official seal of the
state may be placed on it's opera
tions and the confidence OF it's share
holders, somewhat shaken. it is said,
by recent disclosures, restored.
Bank Case Goes Over.
The further investigation of the
Valley City banking transactions Of
Jack Hastings and Tom Box. Townley
financial agents, which was to have
come up Thursday was postponed a
week because Deputy Examiner Hal
dorson was not ready to report. A.
Torkelson, cashier of the American
National bank, taken over by the
league, and County Auditor Nelson Of
Barnes were here from Valley City
J. to testify. The Ignite Consumers
Mining Co.. with home offices at New
England and mines at HavelOck, was
admitted
''THE WATCH ON THE