The Miller press. [volume] (Miller, S.D.) 190?-current, 1922-09-28
political Adveriang) ~mM ~ Political Advertsing)
HORSE SHOE RANCH" SCANDAL IS DISCOv-
Erred AT THE STATE CAPITAL
State Likely to Lose $37,OOOOO as q Result of the I'm
Business-like Methods of the Rural Credits Board.
How Many More Similar Loans?
Pierre Staff Cor, Sioux Falls Press.

Pierre. s. D., Sept. 1.-THE famous
Horseshoe Ranch Scandal" which
has been a subject Of political rumol
in South Dakota for the past three
years, broke with a dull thud today
Members OF the rural credit board
started action for the presumed pur'
pose OF trying to recover $4,000
which they loaned on the chopped
up" ranch in the fall Of 1919.
The recovery action. 1t Is announc.
ed. will be launched against the First
National Bank OF Mobridge.
Call Mortgages Worthless
While the rural credit board holds
mortgages covering this transaction
Tor these" transactions, as n may
prefer). 1t is fairly well known and
understood that the mortgages are not
any more, in proportion to amount OF
paper involved. than German marks
or Russian rubles. The states mort
gage security is represented by second
and third mortgages on lands which
apparently cannot be sold for enough
to satisfy the prior liens.
Unless the state can make the claim
stick against the Mobridge bank
therefore, Il will be holding the sack
on the Horseshoe deal. This is said
to be only one of a number Of loose
deals scattered over western South
Dakota.
The Horseshoe Ranch deal Is per-
meated with the odor of machine pol
tiles. william Scott, who Is said to
have had a prominent part In arrang-
ing the deal through the rural credit
board in 1919, was at the time a mem
Der OF the legislature In addition to
being president OF the First National
Bank of Mobridge and secretary
treasurer of the Horseshoe Ranch and
Cattle company.
Whether the rural board was or
was not fully advised as to the plans
and intentions of William Scott, OF
Mobridge. and his brother, j.. Z. Scott
of Hawarden, It seems quite clear and
evident that the board turned over
the $500 and has nothing to show
for except the possibility Of collecting
from the band on an allegation Of
failing to carry out instructions.
No Record Of Complaint
The rural credit board, presumably.
has known since the fall Of 1919 that
the Mobridge bank violated instruc-
lions or It did In completing the
loans on the Horseshoe Ranch lands.
There is no record of any complaint
being made to the national banking
department as to such direlection Of
duty, Eor is there any record OF the
national banking department having
made any Investigation as tp the
banks alleged culpability in this mat
ter.
BY virtue OF the action now launch
ed against the Mobridge bank (merely
a civil action for recovery 1. Is pos
sible that the department may take
cognizance of the charges.
Not one dollar of interest has been
paid on either OF the loans represent
ing the states Horseshoe Ranch deals
during the three years which have
elapsed since the funds were forward
ed to supposed borrowers. During
that period no taxes have been paid
upon the lands. This Is said to be
n of many deals In western South
Dakota which help explain the huge
showing OF delinquent interest in rural
credit affairs. These are cases in
which the supposed borrowers are not
concerned about their equities and
are letting the state whistle for prin-
cipaI and interest.
How McMaster Took IL
IL was delinQuencies such as that
OF the Horseshoe Ranch scheme, on
claims against dummy" borrowers
that brought out Governor McMas-
ter's pre-primary statements at Pierre
and Sioux Falls: $50 long as I am
governor OF South Dakota no enforc-
ed collections will be made against
the rural credit borrowcrs"-or words
to that effect.
II seems that J. T.. Scott, residing
outside of the state. Is to be designat-
ed as the william in the case by the
rural credit board. Possibly he got
the money. as claimed In the present
proceeding. but he is only a director
In the Mobridge bank. Members OF
the rural credit board are well ad-
vised that william Scott was the one