Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1927-02-17
(By Martin w. Odland)


The bill calling for referendum on
modification of the Volstead act, so as
to permit the sale of beer and light
wines came up for consideration by
the house temperance committee the
first of last week, but no action was
taken, except to order a public hear
ing early this week. The vets real
ize that a referendum of this kind
would not be binding upon congress,
but they reason that If the people of
Minnesota roll up majority for mod
ification, the Minnesota congressman
and senators will take heed of the
popular will and govern themselves
accordingly. The vets have nothing
to lose and possibly something to
gain by referendum.
The joint committee of house and
senate, appointed to study the bank
ing situation, is having frequent ses-
sions now, and is hearing from vari-
GUS bankers and from Mr.. Veigel, the
state superintendent of banks. AL
most without exception, the banking
fraternity are opposed to all forms
of bank guaranty. urging instead a
more rigid system of inspection and
greater care in the management of
financial institutions.
The Farmer-Labor bank guaranty
bill made it's appearance in the senate
Tuesday. 1t is modelled on the Neb
raska law and is sponsored by Sen
ators Victor E. Lawson, Iver ]. Lee,
C. j. Pulitzer, L. P. Lund, A. M. Land
by, Henry Ahrens, Frank Romberg
and Moses L. Frost The bill pro-
poses a tax of one-half of one per cent
on all deposits in the state banks, the
proceeds to go into. fund out of
which to pay depositors who suffer
losses in defunct banks.
The elections committee of the
house made final disposition of the
Rutledge- Youngdahl election contest
some days ago. Mr.. Youngdahl is
given the seat, in accordance with the
finding of the district court of Henne
pin county.
About the same time, the senate
elections committee rendered its YER
dict in the case against Senator Err
ling Swenson brought by John G.
Priebe, his defeated opponent in the
election While the committee depre
Gates the attacks made upon Mr..
Priebe by the Minneapolis Chronicle
the day before election and intimates
that Mr.. Swenson had knowledge that
such attacks were being planned, it
finds that Mr.. Swenson is entitled to
his seat.
Only one election contest now re-
mains unsettled-that against Sen
ator A. L. Lennon of Minneapolis, who
is under sentence of violating the Vol
stead act. How soon this will come
to a climax nobody seems to know
There will be hearing on it tonight.
and action may be taken by the COM
mittee soon afterward.
Some time ago it was announced
that Senator Widell of Mankato would
call for an investigation of the state
rural credits bureau. This bureau was
established by the legislature of 1923
and began functioning during the sum-
mer of that year. 1t was not long be-
fore charges were made that the bu-
reau was doing business inefficiently
and recklessly; that loans were made
without adequate security; that the
state was used as a dupe by certain
bankers who were anxious to unload
upon the commonwealth bad loans;
that politicians with a pull got big
ger loans on farms than were justi-
fed; that unless halt were called
upon the recklessness and extra
vagance, the state would be caught
with thousands of rundown farms on
it's hands, etc. AS a result of these
charges, the legislature of 1925 made
careful investigation of the bureau.
Much to criticise was found and re-
the law and the future con-
duct of the bureau were made.
Governor Christensen, one of the
leaders in the fight to establish the
bureau, appointed new board, COM
posed of Senator Ole Sageng, H. H.
Flowers and Mr. Gullickson of the
attorney generals office. 1t was UNI
derstood that these men would tighten
the policy of the rural credits bureau
with respect to making loans, and
the report they have just filed bears
out this expectation. Outstanding
features of the bureaus record are
these:
A total of 1858 loans closed in the
eighteen months ending December 81,
1926, aggregating $7,40S,000, of which
there were only 3S delinquents.
A net income of S2S7,447 from a to-
tai revenue of $454,723.
No foreclosure on mortgages signed
during the eighteen months opera
ton of the new board.
In its report the board shows the
sources of it's revenue as interest earn
ings, 1897, S25.60; application fees,
| $54, 10000; miscellaneous revenue,
S1,299.93; interest ON bank deposits,
$S92.27.
Senator Widell's- resolution for an
other investigation of the rural credits
bureau has not yet been introduced,
| and it may be that the report just