Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-02
SENATOR FOSkETT TELLS HOW
HE QUIT OFFICE IN FACE
OF PROBE.
USED OFFICIAL JOB
TO PUSH NOTE SALES
Retrenchment and Reform Commit
tee Of Legislature Prepared to In
vestigate Bank Superintendent In
Connection With Finances Of Mid
land Packing Company.

Des Molnes, Sept, 2.-George Mes
senger, state superintendent OF bank
ing, resigned his place with the state
just ahead of an investigation Of the
conduct of his office by the legisla-
tive committee on retrenchment and
reform, according to Senator Fl. ].
F'oskett, cammittee member who was
In Des Moines yesterday.
"A few days before Mr.. Messen-
ger quit" said Mr.. Foskett, 81 was
Informed that he was selling, over
his signature as banking commits
sioner. certificates of deposit In n
Mason City financial institution
which certificates were based upon
promotion paper.
II had started an investigation to
establish this matter. and was in
tending to bring it to the attention
OF the committee as soon az the facts
cation was completed III. MESSENGER
severed his connection with the
state.
Committee Ready to Probe.
"The committee on retrenchment
and reform stands ready and anxious
at all times to investigate conditions
in offices at the capitol and 1t is the
| duty as citizens, OF evary person in
Iowa, to bring irre2 uIarities TO the
| attention OF the committee rs soon
as they are discovered"
Iowa politicians, gathered in large
| numbers here for state day at tie
fair, are talking little else han the
| two packing scandals.
They report that recent Associat-
ed and Midland revelation have Gre
| ated profound Impressions in all
| parts Of the state.
1t is very reliably reported that
| Mr. Messengers connection with
| Midland packing will wear an ugi,er
aspect than it does now, when all of
| the evidence now in the possession
of the attorney general, is produced.
While Mr.. Messenger Is being sought
as n witness in the present Asso-
ciated Packing trial, HIS connection
with that case. SO far as can be learn
cd, is comparatively trivial.
The auditors report OF his investi-
sation OF Midland packing books ac-
| cuses the former banking commits
sioner OF marketing many notes given
in payment for Midland stock, by
| stock subscribers.
/ That report makes no showing as
/ as to whether Mr.. Messenger used
/ the power of his state office to aid
/ him in selling these notes. tho IL is;
clear that he was still superintendent
of banking when many OF the notes
] were sold.
/ Worked Both Ways.
! The attorney generals office
| however, is said to have a consider
able volume of proof that in some
cases Messenger, as banking COM
missioner used that office to help
4 Messenger fiscal agent.
The correspondence in one case
all of which the attorney general is
said to possess, involves stock sale
note given by South Dakota farm
er. unsecured, for something In ex-
/ cess Of $4,000. in payment for
Midland stock, which Messenger
tried to sell to an Iowa bank. The
banker wrote to Messenger, as COM
missioner, and stated that he would
not like to buy the note unless he
could be assured that 1t would be
passed upon fayorably by the bank
examiners, when they inspected his
institution. Messengers reply to the
bankers letter, it is reported, was
that the banking department would
/ pass the note.
/ Mr.. Messenger is said. to have ad-
United profits of more than $780,
600 out Of his private transactions
of the last year or two.
Hopes to Reorsanize.
| Fred c. Sawyer, president Of the
Midland Packing Company. in a
signed statement made public yes
terday, declared his intention OF
immediately ealing meeting Of the
Midland company stockholders and
! making an attempt to readjust ,af-
fairs Of the company. Sawyer denies
all knowledge Of irregularities
charged In the receivers REPORT re-
Gently filed with the clerk of the
federal court here. He expresses the
belief that the company is solvent
and will be able to resume operations
and weather the present storm with
out loss to anyone.
-T-
GrinneIl and Vic;ni&v