The producers news., 1930-10-24


were low. The banks were hard
pressed, and all were borrowing
large sums from the War Finance I
Board and from correspondent
banks in the financial centers and
especially in the Twin Cities.
! During the years 1921, 1922 and
1928, the Farmers State Bank of
Medicine Lake, in order to save
itself, and to provide funds to
meet the needs Of its customers
and the constant withdrawal of
deposits resulting from the finan-
cial depression and the shortage
of money, borrowed in common
with the rest Of the banks. 1t bor-
rowed from time to time in 1922
and the spring and summer Of
1923, from the Midland National
Bank of Minneapolis. The Mid
land National, the same as the 4
rest Of the big banks, asked for
plenty of security. The only Sc
curity which the banks had were
the notes from the farmers TO
whom it had loaned money.
In the spring OF 1923 the Farm
erS State Bank borrowed about
$4,000 from the Midland National
of Minneapolis for which it was
compelled to put up about four TO
one for security, so it sent about
$4,000 of the notes it had, the
property Of its depositors, to the
Midland National for security. In
the fall as the returns from the
wheat came in and as collections
were made, the Farmers State
Bank paid the Midland National
from time TO time, and at the time
the Farmers State Bank closed its
: doors, near the end of November
or the first Of December, it owed
l the Midland National something IN
the neighborhood of $1,000 or S.
' 900 for which the Midland Nation
al still held the $4,000, more OF
o less, Of collateral notes.
5 Stork Swenson, the cashier OF
the failed bank, was appointed re-
{ ceiver. He went TO work earnest
4 IL TO salvage the bank the best ne
: could. The Midland National sen
y a collector up and they collected
: enough 10 reduce the amount DweC
IS TO the Midland 10 a sum betweeI
81 900 and $1,000. But the Mid
land National kept all Of the Sc
cnrity, except that which was col
lected and applied on loan
Inrthe summer of 1924, Storl
Swenson took sick and went 10 tn
Veterans Hospital at ST. Pau
Mark Olson of Medicine Lake wa
appointed receiver 10 take hi
place.
&c About this time, VIM Davidson
be Cashier of the First National Ban
of Williston, a noted high finar
ley cier of this section, made a des
'olf with the Midland National Ban
ere to buy this paper.
ing The notes were sold TO Wn
the Davidson, on what basis is know
Gus only TO Davidson and the Official
re- OF the Midland National.
ms The law provides that notes pg
up as collateral security must |
Mr.. foreclosed, and notice properly gi'
ted en- to borrower. This was n,
ing done. The paper was arbitrari
and without process or authorii
had OF law, and without process turn'
inst over to VIM Davidson. The Ia
Mr.. provides that when enough Of &C
not lateral security is collected 10 p;
that the money for which it was put l
self for security the remainder if Al
the shall be returned To the borrowe
and None of this was done.
had Shortly after VIM. Davidson S
nets cured these notes, In the sum
the $4,000 more or less, which repI
he sented the money Of the depoSitu
sible of the Farmers State Bank, a
lpon their only hope of getting tn,
e in money out Of the bank, appear
in the First State Bank of Ne
, cine Lake, OF which Ed Powers
.;.+a the cashier and heavy stockhold
! 49, II seems and is alleged that
-. Powers and maybe others were /;
= sociated IN this transaction. D.
laa5 idson put the deal over, with I
SG~ Midland National, and Powers v
--;. r. to do the collecting. Neither Pc
49, ers nor Davidson had any ella
+Iat 49,. upon this paper, otherwise, q
- were entirely disintereSted part
Mark Olson heard OF the ira,
@ action and that the property of {
bank OF which he was the rece
NJ er was In the possession of
- Powers over at the First St
- Bank. He Immediately came
- Plentywood, hired q lawyer and
sued a writ Of attachment. WI
- the sheriff arrived IN Medic
-ss Lake, IN the morning, the pa,
- -. had disappeared, tho it was at
-, -, bank the night before. Ed Pow
% had gotten wind OF the alta
~ ment and rushed the notes h,
iili to Williston IN North Dakota
" outside of the state Of Mont;
sen and the jurisdiction OF the NJ
- tana courts.
ILnlt Mark Olson was thus defea
la1eu from securing the possession
9e1Si- the assets OF the Farmers s.
o Bank. though enough Of the NJ
!. .liilS' !, had been collected to hquidate
: ne claims of the Midland Natic
g. Bank
- The paper was kept IN WI
, c. ton bv VIM Davidson. He !
ssric.- collectors into the Medicine L
country frnm Williston and coll
nelly ed lot OF the notes He ;
started some actions for eoIleci
rmer- but some Of the note givers
have Tended.
Wolf Mark Olson took steps to b.
4 BY action against the Midland Nat
re IN Al for the recovery Of the as,
They Of the bank OUT n tne spring
srs Of 1925 he was suceeeoeo as recei
harles by Fred Ibsen OF rienrywood