The Washington herald., 1920-12-13
TOWNLEY LEAGUE
POWER IMPAIRED
BY LATEST LAWS
Taft Sees North Dakota
AS Laboratory for
Radicalism.
.HECKED BY BALLOT
Referendums Adopted by Peo-
pie Take Control From
1 Nonpartisans.
GHECKED BY BALLOT
BY WILLIAM HOWARD TAFT.


to that which there is in Russian
affairs. North Dakota has been a
laboratory for the trying out of
novel political. social and economic
experiments. and the people are pay
ing the price. Pursuing its usual
course and taking advantage of the
general primary which ii has made
an instrument of political injustice
and sharp practice, the Nonpar-
tisan League sought to retain pos
session of the machinery Of the
Republican party last spring. The
genuine Republicans fought the
league and carried on bitter
struggle to defeat Gov. Frazier for
denomination as the Republican
candidate for governor and to elect
anti-leaguers as members OF the
legislature. BY a majority, largely
reduced from his previous nomina-
tion, Gov. Frazier was again made
the nominal candidate of the Re-
publican party, while Senator Gron-
ma was defeated for the Republican
nomination for the Senate by Presi-
dent Ladd. tine president of the
State University. Mr.. Ladd, while
. Rot an avOwed member of the Nom
partisan League, expresses his SYM
pathy with what he calls the farm
ers' movement" and has always
been regarded as league opponent.
O'Connor Democratic Choice.
There was nominated on the
Democratic ticket against Gov.
Frazier a young Democrat named
O'Connor. of Grand Forks. He was
a speaker of the ornate type, a man
of clean reputation and of much
activity. Most of the antileague
Republicans gave him warm sup
pert, but the trend toward Harding
vas so heavy that il saved Frazier.
Harding carried the state by l3O'-
600, while Frazier defeated O'Con-
nor by only 5000. The lower house
OF the legislature contains a sub
stantial majority of antileague
men. In the senate. the leaguers
have one majority. with one seat in
contest. Thus the league and its
TownIey triumvirate cannot carry
further in legislative plans, and the
lever house will be able to iHvesti-
gate the questionable transactions
OF the league.
One feature of the victory over
the league in the late election was
thc adoption, by initiative and ref
crendum, of ave laws, which were
framed with a view of relieving the
state from the leagues tyranny.
For once, at least, this method of
making laws has proven useful.
In order to understand the sign!-
ficance of these laws one must know
the evils they were intended toI
-r:nedy.
How Townley Works.
Townley, of the league. who, though
b, now lives in St. Paul, still directs
il with absolute sway, in order 10
secure more power. organized me
Bank of North Dakota, which was
put under supervision Of a league
state commission. The league legis-
lsture required that all county funds
should be deposited in this bank and
loaned out as it chose. The local
banks were thus deprived of the
use of the money which might other
wise have been deposited with them
in their respective localities. except
as the league managers of the State
bank determined. This swelled the
deposits in the bank so as to give 1t
great financial power. Rumor that
personal and dishonest discrimi1a-
tfon had been used in making It's
loans reached the public, and a de-
mand was made that the bank and
it's transactions be subjected to an
investigation
The attorney general. Mr.. Lang
ler, who ran against Gov. Frazier
in the Republican primary last
spring and who had been a member
OF the Nonpart.san League, but had
left it. advised that the State audi
tor had the right to examine the
bank, and sought, by a proceeding
in the Supreme Court, to secure the
opportunity for such an investiga-
tion. The Supreme Court. consisting |
of a ajority of Nonpartisan |
Leaguers. held there was no such |
power. This stirred the State.
One of the laws initiated and car
ried by referendum authorizes and |
directs the attorney general, the
state auditor and the secretary of |
state to examine the bank at least \
every six months and make a re-
port of it's condition and transac-
tions.
Boards Leanings Changed.
This board now consists of two
antileaguers and one member of |
the league. The ELECTION. by its
changes in State officers, however. !
gives in the future a majority of |
Ieaguers in the examining board; :;
but there is an interval between |
the installation of the newly elected |
officers: so that the commission for |
a month will be antileague and |
will include eAttorney-GeneralL Lang
Ter, who in his fight against Gov.
Frazier last spring made the ques-
tion of the examination of the bank |
one of the striking issues of his
campaign. The commission will be- |
gin its examination at once.
A second law, passed by referen-
6um, is q law authorizing the county |
officers to withdraw and withhold |
the county deposits from the State
bank and TO deposit them in their re-
spective localities. This law is now |
In effect; and II seems to be conced-
ed on all sides that were the county |
officers to exercise the power of inn
mediate withdrawal 1t would leave /
the Bank of North Dakota in a help |
less and hopeless condition. The
league commission supervisingth the
bank has held that the law is not
and does not authorize /
the withdrawal of the meneN now on
except as its need'for coun-
ty purposes shall be established to |
the satisfaction of the bank. and |
that 1t only applies to future funds
from the counties.
Mieht Cause q Panic.
Tho State bank claims that il has
loaned to farmers some $4,000, 900.
a nd has placed in deposit in local.