The Miller press. [volume] (Miller, S.D.) 190?-current, 1922-09-28

VINO handled the loan applications In
the Horseshoe Ranch deals. He is
still active In politics. This same Will
liam Scott was president of the Mo
bridge bank at the time, and II the
bank turned the $32, 900 over to Presi-
dent William SCOTS brother, j. e.
Scott, 1t is considered both probable
and possible hat the former may have
heard rumors to that effect during the
intervening three years.
Ranch North Of Glenham
The former Horseshoe Ranch is a
tract of 5000 acres located Is miles
north OF Glenham, s. ID. Prior to the
famous rural credit deal 1t was en-
numbered by mortgage ioans amount
ing to 100000, held by the National
Life Insurance company. Portions of
the tract also were encountered by
second mortgages. William Scott and
j.. T.. Scott, making use of the form
er's political influence in South Da-
kcta, engineered a deal by which one
Or both of them pulled down" $32, 900
of rural credit money on these ranch
lands.
Although the Horseshoe Ranch land
was all under n fence, and is all
under n fence today, an alleged sale
Of the ranch lands was made to per-
sons who desired to live upon and
farm the said lands" duly conforming
to the requirements of rural credit
board is restrained by its own laws
from loaning more than $4,000 on
any one farm. That's where the
"chop up" comes in.)
Ostentatiously Sold Land
Anyway, William Scott and his
brother, J.. r. Scott, apparently sold
the ranch lands to four separate and
distinct farmers" and secured from
'hese owners-to-be rural credit appli-
cations totaling 1872, 000-two for ST.
500 each and two for $500 each.
And they got the money for these APP
~plicants, too--right off pronto-all
within 10 or Is days.
While soulless corporations are not
supposed to be included within the in
innate personal scope of rural credit
loans, there was an exception in this
case. The Horseshoe company, as
such, drew down $500 on a rural
credit application made in its W
name. Then there were three indi-
vidual applicants, said to be mere
dummies" who paid no attention to
the land after pretending to purchase
it. One of these loan applicants was
L. A. Lamphere, residing at Hecla.
Another was Charles Law, who resides
In North Dakota just like South Da-
kota's state coal mine.
Credit Board Sent the Money
The rural credit board, although ap-
parently well advised that William
Scott had a promotion interest in the
Horseshoe ranch land loans, sent the
$50, 900 completing these loans to Mr..
SCOTS bank at Mobridge. From that
point on. things seem to have been
quite blank to a number of interested
persons. It's hard to tell just what
happened. But the rural credit board
now alleges, after a lapse of three
years, that j. e. Scott got the $4,000
and the state got some securities very
much on the lemon" order.
II is charged by the board that the
Mobridge bank violated instructions in
turning over the money without first
providing for the release of certain
first mortgages, as had been agreed
upon.
Where the Money Went
Nobody claims, or e suspects
that the dummy borrowers got any
OF the rural credit funds-with the
possible exception of that enterprising
farmer. the Horseshoe Ranch com
pany. on It's individual application for
s $500.
In connection with the j. e. Scott
receivership hearing in Sioux Falls
yesterday. an order was made per-
hitting the National Life Insurance
company to institute foreclosure pro-
ceedings on its mortgages covering
the Horseshoe ranch lands. These
claims and the second mortgage
claims will leave the states $4,000
"out in the wet" so far as that secur-
ity is concerned. Including deiin-
quent interest, the states claim now
has grown to about $37. 900.