The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1921-02-17
in SERIOUS PLIGHT
On the Verge of Financial Collapse,
State of North Dakota Knows
Not Which Way to Turn.
Political Strife Endangers Plan tt
Bring About Ratification of
Rehabilitation.


complished. The closing Of the big
OBSERVATION-DISCLOSURES bank at Far
go, a nonuartisan league institution,
in addition to the suspension of numer-
GUS other financial concerns makes the
situation more complicated. Mean
while political strife endangers the
states ratification of it's rehabilita-
ton scheme. In Bismarck there are
two Numerically opposed groups who
are discussing the terms of tentative
plans reached by twin city and Chica-
go bankers to relieve the situation and
put North Dakota on the footing which
it held before Townley and his hire
lings invaded the state and placed it in
such woeful circumstances.
The groups mentioned are the legis-
lators who faunt the Townley button
and those who are known as indepen-
dents. They are both expressing dis
satisfaction with the terms advanced
for rehabilitation of the financial situa-
ton.
The league group is displaying sore
ness over having to give up many of
their pet socialistic schemes, including
the Bank of North Dakota, bulwark Of
the whole program. On the other
hand the Independents are demanding
all sorts of things, none Of them short
of unconditional surrender on the part
Of the league forces. Resignation Of
William C. Lemke, attorney general,
and now one Of the big powers in
league circles, is one of the things they
are now insisting upon.
| After the caucus of the indepen-
dents, Theodore Nelson, secretary of
the Independent Voters association,
known as the I. ". a., made the fiat
statement that the independents would
absolutely insist upon elimination of
William Lemke from the state govern
mcnt. He said that the industrial
commission would have to be re-
vamped so that the league would no
longer control. At present the COM
mission is made up of Governor Fra
zier, Attorney General Lemke, and
John N. Hagan, commissioner of agri-
culture and labor.
This is what has happened in regard
to the proposed bond sale:
The North Dakota bankers COM
mittee made proposals in January on
which they would undertake to find a
market for state bonds. The terms
were rejected by the nonpartisan
league caucus, though advocated by
A. c.. Townley.
The desperate situation Of the Bank
of North Dakota finally brought the
league heads to concedc whatever
should be necessary, but they found
the North Dakota bankers obdurate
Then they appealed to twin city bank
ers to help bring them together.
At Sundays conference, A. C. Town
ley, John M. Hagen and their non
partisan league associates declared
that they would undertake to bring the
league caucus to agree to the terms
the North Dakota bankers had of.
fered if the leaguers could have as,
surance that the bonds would be taken
This proposal calls for liquidation
of the Bank of North Dakota, it's re.
organization as rural credits bank
winding up the affairs of the Home
, Building association, and new legisla.
ton ending the arbitrary powers of the
industrial commission and the present
wide open methods of handling state
finances.
On this basis the twin city and Chi
cago banks and trust companies rep.
resented to the conferences have, con.
sidered the matter.
Light thrown on the methods of the
Bank CT North Dakota by the specia
Investigating committee of the NORTH
Dakota assembly has disclosed many
I strange transactions, and the whole
2 state is 2live with interest as to what
, may still be in stor>:. There is, fo1
: instance, the story of Low the bank
/ got its capital stock, as related by F
S w. Cathro, its manager, VIXEN exam
, ined by Francis J. Murphy, of Minot
fattorncy for the committee. Othe1
t banks start with paid in capital O.
t cash, but not this bank. The bank i.
$ in control Of the industrial commits
,. sion, which by law was given almos
: unlimited power to bond the state
: transfer funds and otherwise manipu
late state finances. The law also re
:, quirod all counties, cities, villages
towns and school districts to deposi