Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-08-26
Government Contends Contest
Vas Shown 70 Have Been
Dishonest Affair
Money Secured on subscfIp'
ton Was Used for Papers
Running Expense

Nuc hSiu W tAO AOuCAoA d 0alN JuA
at the conclusion Of his preliminary
arraignment just at the noon hour
Saturday before United States Com
missioner Montgomery, on the charge
Of using the United States mails in
the execution OF a fraudulent scheme.
! He was placed under bonds fixed at
81, 900 which he was able 10 give.
At the conclusion of the evidence
introduced Judge Engerud contended
in his argument that fraud was
shown by the fact that the defendant
knew the Courier Publishing Co., was
| on the verge of insolvency before
the contest was started and that the
prizes offered and advertised as pur-
chased and in the possession of the
company ready to be awarded were
proven not to be purchased aud that
! no personal effort had been made by
the defendant to award the prizes un-
til the governments prosecution was
started
Charged Dishonesty.
The government contended that the
contest was shown not to have been
honestly conducted and that the con.
test money as fast as 1t came IN ,WaA
used for the current expenses Sh tho
paper. II
| w. s. Stambaugh, who with A. Nv.
Fowler, was counsel for the defend
ant, claimed that the motion OF the
United States attorney to hold him
to the federal grand jury was un1ec-
essary as he was responsible per.
| son who was not going away. He
stated that the defendant could In no
way be held accountable for the &C.
tions Of Mr.. Ashley. the contest man
ager, and was not in any way guilty
OF any crime.
1t was hald by the commissioner
that inasmuch as the contest money
was first turned over to the contest
manager, Mr. Ashley, and then to The
Courier4News subscription depart
ment manager, and finally, to the
compay bookkeeper that the defend.
ant who was actively engaged in the
management of that paper should be
held to the federal grand jury.
Baker Case Dismissed.
On motion of the United States at
torney the action against A. M, Bak.
er, advertising manager of The Cour.
ier-News prior to its recent sale, was
dismissed
When the hearing was resumed
Saturday morning Miss Mary Jorgen-
son, The Courier4News bookkeeper,
was recalled and stated an error had
been made in computing her figures
and that the total receipts of the con.
test amounted to $14,9O6.1S instead
Of $19;906.16. She said she had In.
cluded some OF the advertising dur.
ing that period in the first figures
given.
Hatcher Expected Help.
A letter from Mr.. Hatcher to Stew.
art Mcmillan, winner Of the house
and lot. in which the former stated
he was not in position to look into
the details of the matter just then
and also in which Acknowledgement
was made of the failure OF the con.
test from a financial standpoint, was
introduced as an exhibit.
Mr.. Mcmillan was recalled to the
stand and testified that on about Aug.
Z, he had discussed the adjustment
OF the matter with Mr.. Hatcher in
person. He said on that occasion Mr..
Hatcher told him he was holding on
on the payment Of the prizes In the
possibility of getting the bondholders
or new purchasers to come. through
with part of the prizes.
The last two witnesses called were
Henry Amerland and M. L. Hibbard,
who were both judges OF the votes
in the contest. Their testimony stat
ed they had counted all the ballots
which included SINE which had arriv-
ed by belated mails. All those, they
said, that were sent in from outside
points and were postmarked prior to
3 o'clock Saturday night, July 1S.
We're counted. Two posted after that
hour We're discarded without being
counted.
Figures Didn't Agree.
At the hearing Friday afternoon,
Miss Jorgenson, bookkeeper In The
Courier-N News business Office, was
again called to the stand to tell about
certain features Of the business meth-
DDS Of the paper during the contest.
She stated that Mr.. Ashley, the man.
ager of the contest company, receiv-
ed everything in the mail marked
contest department, that after he
was through with the communications
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