The Nonpartisan Leader Newspaper, March 30, 1916, Page 4

FOUR ASKS “THE NONPARTI_SAN LEADER BANKS TO PAY - Stutsman County Heavy Loser in Medina Fd:iljl((i; Illegal Acts Charged to Bankers .by Trust Offwzal (" TUTSMAN county, North Dakota, had $5000 of the taxpayers’ money on deposit in the Medina State bank when that bank was closed by the state banking department January 13, 1914. Like the other depositors whose savings made up the $60,000 of the bank’s deposits, Stutsman county is still waiting for its money, after over two years. In connection with the county’s failure to get this money back is another chapter in the history of this remarkable bank failure, the story of which was told in the Leader last week. TRUST COMPANY REFUSES TO PAY COUNTY CASH As required by law the Medina bank had to put up a bond to pro- tect the taxpayers against loss of the public fund should anything happen to the bank. That bond was written by the Dakota Trust company of Fargo. The trust company has refused to make good to the taxpayers this lost deposit. The reason for this re- fusal sheds additional light on the case. . “The reason we have refused to pay the county under this bond is because we refuse to hold the sack after others illegally and without any justification removed some $30,000 of the bank’s assets during the last days it was open,” said B. V. Moore, secretary and treasurer of the Dakota Trust company. “We have informed the receiver of the Medina bank and the county of Stutsman that we stand ready to pay whatever is due under the bond as soon as the securities and collateral, wrongfully taken out of this bank before it was closed by the First National bank of Fargo and the Merchants’ National bank of St. Paul, is restored in full and used as far as it will go to reim- burse the depositors in the Medina bank, including Stutsman county. “Besides the return of the securities taken out of the Medina bank by the two banks mentioned, we also demand that the First National bank return to the Medina bank an additional $5000 which " is wrongfully and illegally charged against the Medina bank aft- er the failure of Wheelock & Whee- lock. This $5000 came to be charged against the Medina bank in the fol- lowing way: . “Prior to the failure of Wheelock & Wheelock (owners of the Medina bank) that firm deposited in the First Cooper HOMAS P. COOPER, director of the North Dakota Agricultural station at Fargo, has in mind a new and most important branch of in- vestigation, for which he will seek an appropriation from the next legisla- ture. The director intends to go into research work connected' with market- ing of products, farm fimance;: etc. The activities of the station hitherto have been along “bétter farming” lines only, with the object of inereas- ing farmers’ profits through more and better production. The new work will be educational along the line of secur- ing better prices for products, through Cooperative marketing. “It is my desire,” said Mr. Cooper recently to ‘a representative of the Leader, “to be able to help farmers solve the marketing and finance problems. “I.should like ‘to conduct such investigations in regard to mar- keting and finance as will enable this station to help farmers in their coop- erative marketing ventures. For in- stance, I would take each product of . a North Dakota farm and follow it through all its movements from the farm to the ultimate consumer, show- ing the cost of each step in'the pro- cess of marketing under the present system. Accurate information on this would be most valuable: ¢ ‘WOULD SEEK FACTS ABOUT PACKING PLANT “Again, this department ought to be in a position to answer any and all questions pertaining - to cooperative armers’ enterprises. For instance, ~there.is a plan for a cooperative pack- - . “ing plant in this state now. - I should National bank at Fargo a check in its favor drawn. on a Scranton (Penn.) bank for $5000 and asked that it be laced to the credit of the Medina ank. The First National refused un- less the check was certified by the Scranton bank, for which purpose it was sent back to Scranton, as I under- stand it. The Scranton bank certified the_check on condition, of course, that Governor Hanna in the executive offi ces at Bismarck; a photograph never . illegally and wrongfully taken out of ~ the Medina bank and paid itself in full this $5000, along with the other in- debtedness it held against the Medina bank. T 1 . “We contend this $5000 as well as the $30,000 in collateral removed from the Medina bank before it was closed .must be returned for the benefit of depositors before we will make good before published. it should be endorsed by Wheelock & Wheelock: The First National then placed the check to the credit of the Medina bank, which drew the money. Then the check was sent to Scranton with the Wheelock indorsement on- it for collection. In _the meantime ‘Wheelock & Wheelock .went into the hands of a receiver and the Scranton bank refused to honor the check, with- drawing its former certification. “The First National then, as we contend, illegally charged this $5000 against the Medina bank, instead of standing the loss itself. The First National cashed the security it had [ X the balance due Stutsman county un- der our bond. We do not intend to stand quiet and suffer a $5000 loss, the amount of Stutsman county’s de- * posit,and let the First National bank get away with any such deal as was pulled off at Medina. OFFICIALS ARE TOLD WHY BOND IS NOT PAID “Stutsman county officials under- stand our position in this matter, as does the receiver of the Medina bank. The receiver has sued the First Na- tional bank and others for the return of the securities taken out or their Director of “Better Farming” Work Now Interested in the Business End like to be in a position to furnish:the backers of this plant with information ‘as to the. management, degree of: suc- cess, problems and’other features of cooperative ‘packing plants in “opera- tion in this country and in other coun- tries. This would be of great help to tiche promoters of the project in this state. * “I believe that in this proposed new: branch' of work we can be of great aid to farmers and their organiza- tions. The matter has been taken up with the state board of regents and I am'in hopes that this board will ask for the necessary appropriation from the next legislature to carry on: the work.” & In the past the experiment station has Qeen widely criticized Tor failure . to take up the purely economic ques- tions concerning the farms—market- ing, financing, etc.—and spending its efforts entirely in trying to increase production. T s Farmers have come ‘to believe that marketing—getting a fairer share for farmers of ‘the price paid by the con-' sumer for the products of the soil— is.now the most important question in North Dakota, and that increased pro- duction is secondary. They believe _that farm profits can be more by getj;mg.%i‘rer prices than by increasing yields; that great injustices now. exist in the present system of middlemen and profit taking by many hands before the products reach the consumer, HIGHER RETURNS BY = ORGANIZATION, HE SAYS ; The statements of Director Cooper indicate that he too is coming to real- ize ‘the importance of the marketing and finaneial side of-the farm ques= tion, Mr. Cooper says further: | which the income of the farm may be increased: the first through' efficient .farm practice and organization; the second by ‘securing increased prices for the products. “The first method ~ of increasing income is in the hands: of the farmer. The second method is = .a world problem which the individual ,afigcts bi;t; slightly. Iiigher returns Three cheers for Tthe-Ndm.)" rtisan League. Tt seems too good to be true, but I believ: om ~ farmer ‘and it makes one feel encouraged for once.—W. J. i DI last some one is for the increased "“There are at least two 'x_nethods_b;; : ~equivalent in° money and the county officials, seeing our stand-is well tak- en, are willing to wait for a decision in that case.. When the: securities wrongfully taken from the Medina bank are returned, through this suit - or otherwise, we will make up any loss Stutsman county has sustained by reason of its deposit in the Medina _bank.” Evan S. Tyler, receiver of Whee- lock & Wheelock, the firm_which owned- all the stock in the Medina ‘bank, refused to give any detailed information to the Leader regard- ing Wheelock & Wheelock’s rela- tions with the Weiser syndicate, - the syndicate of which Governor Hanna and other directors of the First National bank of Fargo were members. \ ; ; & WHEELOCK & WHEELOCK. STILL OWES SYNDICATE “I can only say,” he said, “that Wheelock & Wheelock now. owe the Weiser syndicate something like $100,000 in round figures, but that the indebtedness was about $140,000, the difference being paid up since the receivership.” : The Weiser syndicate is the body of financiers, including the govern- ‘or, president of the state banking printed by the Leader last week, controlled Wheelock & Wheelock and actually held some of the stock of the Medina State bank as collateral. C. A. Wheelock of the Wheelock firm, now interested in the Whee- lock Auto company at Fargo, also declined to discuss the failure of - Wheelock & Wheelock, the firm’s Telations” with. the Weiser. syndi- cate and the Medina bank case.. < “I have nothing to say,” he told the Leader reporter. “The mat- ter is very complicated and I do not know much about it.” : EDWARD KLEBAUM: Here's three: cheers for the Leader. We surely. need. such a paper as it is to keep us together. Every member is wide awake and wants to do all he can. A. W. McCULLOCH: T have been . reading the Leader for some time and think it is giving us the right kind of dope for our own benefit. I do like to hear some of the facts con- cerning the last legislature for that is rarely printed in the other papers and then it is misrepresented. ; Vants to Study Marketing may be secured-by farmers for their- . commodities through organization and standardization of products. - “Informatign is. needed on many problems with which the farmer comes in contact, that is,'with prob-- lems that are not primarily agricul-- - tural, Accurate information relative - to rural finance, markets-and organ- ization is required if the best deval- opment of agriculture in the state is to. take ‘place. Poor methods of fin- ance, of marketing: or of ‘rural organ- izagtion may lose the farmer as much as do poor varieties of grain’ or un- ek profitable classes of live stock, WOULD STUDY BUSINESS SIDE OF FARMING “There is a widespread interest in many of the phases of farm operation as related to business. Too little at- - - tention has been given these relation- ships by experiment: stations; and an /investigation " of ‘the - possibilities is = necessary. Undoubtedly certain gen- - eral principles govern the successful forms_of cooperative enterprise and should determine - economic: legisla-- tion pertaining to - the ‘agricultural industry. 2 = “The experiment’ station should be prell‘mred Yo study the situation and make plain: the principles’ which will bring about the most successful com- munity - welfare, ‘Development = of investigations of this character. It is time that organized research 'wi should attack the problems which con cerns the farmer and his'relationshi: to other industries and professior S € board, which, according to evidence - such: studies- requires much time and special funds should be provided for n