Evening star., 1941-11-07
Witness for LANCER
Defends Bank Policy
On County Bonds
Refused TO Buy Only
When There Was Good
Reason, He Says
- the Associated Press.

- the Associated Press.
A former manager of the Bank OF
North Dakota, who served while
Senator LANCER. Republican, OF
North Dakota, was Governor of the
State. expressed the opinion before
the Senate Elections Committee to-
day that the bank had refused tc
buy county refunding bonds only
when there was "a sufficient good
reason" for doing so.
Robert M. Stangler of Grand
Forks. N. Oak. who served as man.
aeer. and In a subordinate official
capacity with the State-oDerated
hank between 1888 and 1898. testi-
fed that the then Gov. LANCER At
No time gave him instructions which
resulted in refusal to purchase bond
issues offered by North Dakota
counties.
It hardly ever talked to Gov.
LANCER" asserted the witness, first
to be called by Mr.. LANCER in COM
mittee hearings on his fitness to
hold Office.
Questioned by Attorney.
Mr. Stangler was questioned on
the point by Francis Murphy, at
torney for Senator LANCER. who said
earlier witnesses had alleged that
certain western counties of the
State had attempted in 1887 and
1888 to sell refunding bond issues
to the State bank but were unable to
do so and were compelled to pay a
commission to the V. w. Brewer Co.
Mr.. Stangler said he was ap-
pointed manager OF the bank by
former Gov. LANCER in 1888. and
served in that capacity until Janu-
AIRY. 1887. He continued to act in
an official capacity with the bank
for two more years. he added. and
dealt with county officials seeking
to sell bond issues, concurring in all
the banks refuSalS TO buy.
The witness said that when he
took charge of the bank generally
speaking. 1t wasn't very healthy
looking institution and was really
In very precarious condition
there isn't any doubt about that. y
Hit BY Drought.
The bank held large amounts OF
State. county and municipal Securl-
ties. he said. and tax collections had
been sharply reduced by the drought
which hit the State in that period
The bulk of deposits were from
public bodies and were subject to
sharp fluctuations.
Mr.. Murphy said that Senator
LANCER soon would take the stand
himself TO cover every charge
contained in a subcommittee report
which recommended the current
hearings on allegations of moral
turpitude by group of petitioners.
Senator LANCER, Mr.. Stranger
said. at once took the leadership in
enactment of new taxes to meet
State interest payments and in the
following year the bank was able
to borrow between $3.000,000 and
s4.0O0O00 from the Reconstruction
Finance Corp.
AT any time" Mr.. Murphy asked.
did Gov. LANCER ever tell you what
to do in the sense of making loans
or not making loans or interfere in
any way with your management of
that bank?"
II wouldn't want to answer just
yes or no." was the reply.
State the situation, then" Mr.
Murphy told him,
Gov. Langer's principal concern
was to save the institution and to
save the credit of the State" Mr..
Stangler said. He used to send city
and State officials to me and asked
me TO do what could to help them
get along"
The petitioners completed their
presentation of evidence late yester-
day when Andrew B. Feist of Bis
marck. N. OAK. testified that he
gave false testimony at q coroner's
inquest because he followed Senator
Langer's instructions as to what to
say.
Mr.. Feist testified that he was the
driver of Senator Langer's car when
it overturned in 1910 with Senator
LANCER and Mrs Helga Kolstad of
Steele, N. Oak. in the back seat,
with resultant fatal injury to Mrs,
KolStad.
His opinion was. he told the COM
mittee, that a broken steering gear
caused the car to go out of control.
but that upon instructions from
Senator LANCER he testified at the
inquest that Senator LANCER had
distracted his attention, causing the
accident
Is CrOSs-Examined.
You don't care anything about
this insurance company Mr.. Feist
said Senator LANCER told him be-
fore the inquest, and I'm taking
the blame"
Under croSs-eXamination by Mr.
Murphy, the witness acknowledged
that he had served nine months in
Jail for selling alcohol in North
Dakota.