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Exhibit - "Scandinavian American Bank": Regular Legislative Session, 1919

The State Banking Board, the political battle between the Nonpartisan League (NPL) and the Independent Voters Association (IVA), the Bank of North Dakota, NPL enterprises, the "bank wreckers," and the scandals surrounding the Scandinavian American Bank.

Scandinavian American Bank - The Story - Regular Legislative Session, 1919

In January 1919, the Sixteenth Legislative Assembly of North Dakota convened for its regular session. The Nonpartisan League (NPL) had their man, Lynn J. Frazier, as governor, and they now had majority control of the House and Senate. The NPL could pass its programs and legislation virtually unopposed.

In February 1919, the NPL-controlled state legislature passed House Bill 18, creating the Bank of North Dakota to encourage and promote agriculture, commerce, and industry.

The legislature also created the Industrial Commission (House Bill 17) to oversee the utilities, industries, enterprises, and business projects owned, administered, and operated by the state. The commission was responsible for the Bank of North Dakota, the Mill and Elevator Association, and the Home Builders Association, all of which were products of the NPL.

Since its inception, the North Dakota Industrial Commission has consisted of the:

  • Governor
  • Attorney General
  • Commissioner of Agriculture and Labor (later known as the Commissioner of Agriculture)

Its inaugural members were:

For speaking out against certain NPL bills during the legislative session, like the newspaper bills (Senate Bills 157 and 158) and the Board of Administration bill (Senate Bill 134), the Valley City bank incident, and the investigation into the Consumers United Stores Company, A. C. Townley (leader of the NPL) labeled certain individuals in state government as cowards, fools, and traitors. His attack was particularly focused on:

A rift was forming between this trio and the NPL.

For Langer, tension between himself and the NPL's leaders had been building for months. During the general election of 1918 in November, Langer, as Attorney General, issued an opinion validating the candidacy of Minnie J. Nielson for Superintendent of Public Instruction. This "endorsement" may have been the deciding factor. Nielson defeated the NPL incumbent Neil C. Macdonald. Langer would later write in his book (The Nonpartisan League: Its Birth, Activities and Leaders) that Townley confronted him after the election and blamed him for Macdonald's loss.

 

Portrait of Gov. Lynn Frazier, 1910s

Portrait of Gov. Lynn J. Frazier, circa 1916-1919

Langer, Kositzky and Hall political cartoon

An anti-NPL cartoon depicting a man presenting images of William Langer (Attorney General), Carl R. Kositzky (State Auditor), and Thomas Hall (Secretary of State) to a crowd. The man says the trio are servants of the people and because of this A. C. Townley, leader of the NPL, wants to impeach them.

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