Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-07-28

The following signed statement
has been issued by B. F. Spalding,
Sveinbjorn johnson, A. B. Jackson
and Theo G.. Nelson on "The Truth
About the Bond Blockade"
We have been accused Of going to
eastern cities for the purpose of
blocking the sale of North Dakota
bonds and OF being responsible for
tion to complete the mill and ele-
vator project the homes and from
making farm loans. It is proper,
therefore, that the public have the
facts so mis-statements made by
members of the Industrial Commis-
sions and others may be corrected.
We did not go to Chicago or else
where in March, or at any time to
prevent the sale of bonds. The facts
are that meeting was held in Grand
Forks about the middle Of March,
attended by the members of the
Joint Campaign Committee and
other representative opponents of
the present administration from dif-
ferent parts of the state. This meet
ing was held for the purpose of dis
cussing the possibility of carrying
out constructive program in the
event of successful recall election.
The question had freqeuetly been
asked, What assurance is there
that if the present members of the
Industrial Commission are recalled
North Dakota bonds can be sold and
the present mess cleaned up?" This
meeting decided to send Mr.. Spald-
ing to Chicago with instructions to
secure from the firm of Wood &
Oakley, bond attorneys, an opinion
as to the validity Of any Of the pro-
posed bond issues and If that firm
found the bonds or any part of
them could not be legally issued, to
get an opinion as to what, new laws
were necessary to, if possible, make
such issues valid. 55
Mr.. Spalding declined to go alone.
on such mission. It was then ar
ranged that the signers hereof
should meet Mr.. ,Spalding in Chi
cago. The scope Of inquiry was also
enlarged SO as to cover more than
legal Inquiries, Upon sour arrival Ia
Chicago we called on the law firm
as instructed. This! firm had been
adYiset' of the visit and date fixed
for, an interview We found a mem
ber of the firm working on; an opin-.
ion on the bond issue. We at first
SUPPOSED it to be in response to the
notice Of our visit. It, however, later
developed that he had been, enrployedt
by the. Bank Of North Dakota to
prepare an opinion, - -a.?.:
He found himself unable to. reach
conclusion ION the subject while
we were in Chicago as evidence of:
many necessary facts had not been,
furnished by the Nerth Dakota Of
ficialS. z ::,,iitl I. !.
At the, same time we found one
George Webb represented as pub
licity agent of the Bank of North
Dakota, camping on the trail Of che,
lawyers apparently for the purpose
of getting an opinion Immediately.
Wood & Oakley, having been en-
ployed by the Bank of North Da-
kota, could mot give us their pro-
fessional opinion on the subject. But
as a result of interviews with reput-
able bond attorneys and bond sales
men in Chicago and other cities, we
reached the conclusion that it was
advisable, to submit constitutional
amendment specifying. the purpose
for which the bonds issued could be
used and limiting those purposes
and the amounts issued and placing
the use and disbursements Of the
funds in the hands of those In whom
the people would have confidence,
and that it was necessary to initi-
ate the laws later approved by the
Devils Lake Convention to carry out
the program and make the bonds
desirable investment; one which
would be attractive to purchasers,
which the issues already provided
for were not, even tho they might
be held valid. sssi
Bonds Unattrsctive
In consultation with experts we
learned many reasons why such
bonds were unattractive even IL their
was 'conceded\ and illustra-
tive Of some Of them were reasons
given by Mr.. Hubert, president Of
the Merchants Loan & Trust Com
pany, who had advanced to the Bank
of North Dakota million dollars
on some of these bonds as collateral
for a short time loan. Hi.
That letter reads as follows:
THE MERCHANTS LOAN & TRUST
CO., s85 Is n A ...a5s
b. Capital and Surplus SIS, 900 900.
Chicago, March oath, 1921.
Hon. b. f. spalding,
Fargo, North Dakota.
Il MY dear Judge Spalding:
Referring to the matter OF the
North Dakota Bonds, In my OPP
M p4hion the credit OF the State
Y OF North Dakota is high and an
ordinary issue Of bonds Of that
state, with all the usual legal
N formalities complied with, Il n
y y would be \ e / good and salable
bond. isss 4 4.
An objection to the present
Issue .0f bonds Is that they are e3.i a!5s
j Ii spec cificallyl issued for the pro-
motion of certain Ind dustrie sSs sE|s
such aas banks, flour mills and
n elevators ID the idea2 2has ap-