Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-01-31
HIGH POWERED
STOCK SELLING
Although BancO Head Was Acquitted,
the Case Exposed Some Of
Groups Iniquities.
BY HENRY G. TEIGAN

]. Cameron Thomson, president of
the Northwest Incorporation, was ac-
quilted of the charge of second degree
grand larceny by jury at Moorhead
on Thursday of last week.
The verdict of the jury came as a
surprise to those who had followed
the trial. There can be little doubt
that the prosecution had established
the fact that purchasers of "Banco"
stock had been defrauded through
Misrepresentation of the company
and it's agents.
The facts upon which the prosecu-
ton based its case are in brief as
follows:
1. That dividends were being paid
for the years 1880 and 1881 in excess
of earnings.
2. That the Incorporation actu-
ally sustained losses during these
years.
3. That the literature and letters
of the Incorporation to prospective
stockholders and to employees of its
affiliated banks boosted of profits that
did not exist. Claim was made in the
company's literature that it's profits
amounted to 1920 per share, though
dividends paid were only $3.50 per
share
Contradictory Information.
The prosecution showed from the
Incorporation books that Mr.. Thorn
son, the defendant, did not represent
to the directors what his and the
companys literature and letters rep
resented to prospective stockholders.
Thomson's high priced attorneys made
no attempt to establish by witnesses
any facts or figures, to justify the
claims made in the literature. In
fact the defense offered no testimony
whatever but banked upon the claims
that it's attorneys made in the argu-
ments to the jury that the 1920 per
share profit was true as to the affili-
ate banks though not actually true as
to the Northwest Incorporation itself
The claim of profits for the affiliate
banks controlled by the Bancorpora-
ton is absurd since the latter owns
on an average nearly 900 of the
stock of the banks under its control
| Hence profits amounting to $500 per
| share on the part Of the banks would
of necessity have to be reflected in
substantial profits to the holding COM
pany if such profits actually existed
On the contrary the incorporation
own books showed that during the
years of 1880 and 1881 losses were
sustained though this fact was not
made known to the public or to the
employees in the 1874 affiliated banks
who like the public were made the VIC
tins of high-powered stock-selline
campaign.
| Bob" Packs Advice.
In this connection it is interesting
to know that the Bancorporation's
drive to sell stock to it's customer;
was inspired by none other than Rob.
ert F.. Pack, president of the North
ern States Power Company. Mr.. Pacl
told of the success that his company
had had in putting over such cam
paign among its customers and pre-
dicted that the same would work ou
successfully for the Incorporation.
The acquittal of Mr. Thomson il
after all not so important as man,
may imagine. The light has beef
turned on the affairs of the powerful
chain-bank group that Mr.. Thomson
represents. The Banco's method:
have been made known to tens o
thousands of persons who had know
little or nothing of them before. II
the future it will not be as easy TO
big Business" groups to plumber un
lsuspecting investors as easily as thes'
groups have accomplished the same il
years gone by.
Case Ably Prosecuted.
The prosecution was ably conducted
w. e. G. Watson of Minneapolis
special assistant attorney general
acted as chief prosecutor. He was as
sisted by Roger Rutchick. assistan
attorney general, and by Garfield W
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