The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-01-25
CR00KS70N DEAL IS
INVOLVED IN A
FRAUD CASE
To Conducting a .Disorderly
House-Quits Business
June !.

a Crookston land lead enters into
the hearing that is being conducted
this week in St. Paul, and the Dis
patch of that city reports the pro-
ceedings involving the deal in the fol-
lowing article:
Testimony intended by the govern
mcnt to show that competition was
suppressed in the sale Of timber on
four reservation townships at Crooks
ton in 1900 was offered at the congress
sional hearing being held this norm
ing in Minneapolis.
Luther Davies of Oshkosh, Wis, told
of buying $4,000 worth of pine timber
land on the first day of the sale and
tho forenoon of the second day. He
ond day he sold his holdings for ap-
proximately $4,000 to Covey C.. Clark.
said to have been connected with the
Nichols Chisholm Lumber company.
Mr.. Davies realized about $1,000 on
the investment in which he used no
funds. He said he bought them in
tending to get credit from his bank.
Davies Denies knowledge of Pool.
When Representative j. w. Graham
asked Mr.. Davies whether the trans
action with Clark involved an agree
ment with him to quit business. MIR.
Davies finally met the repeated ques-
ions with the statement that he had
ceased bidding for the reason that all
the lands which he had in mind had
been disposed of. Mr.. Davies denied
he had any knowledge of a combina-
ton or pool of lumhermen.
Mr.. Davies testified that he never
had actual title to the holdings filed.
They were filed in the name of II. C.
Clark. some years later. AT the time
that Davies transferred the holdings
to Clark for $4,000 on the second day
of the auction sale. a written agree
mont was the only instrument be-
tween them.
John ]. Lynch. formerly of White
Earth. now of Minneapo polls, said that
the government estimate Of the pine
lands in the four townships amounted
to ahou SIS, 900. 900. while the esti-
mate of the cruisers of The H. G.
Akely Lumber company amounted ap-
proximately to $1,000 o 900.
Henry George. Jr.. Takes a Hand.
The morning session was devoted
from Mr.. Davies and MIR. Lynch. The
former said he was specializing when
buying the timber. and when Con-
gresham Henry George. Jr., asked
him why he did not continue his in
vostments after realizing $1,000 in a
day and a half. MI. Davies explained
that he had inspected only those lands
"'AtNI hou dIiVruS pSeu SOIu dC IOOIl
on the second day. Davies denied that
there was an agreement either ex-
pressed or implied with Mr.. Clark to
drop out of competition.
The testimony of Mr.. Lynch, be-
sides bringing out the difference be-
tween h estimate placed on the pine
land by the government and by the
cruisers of the lumber company, also
gave the chairman the information
that at the time Of the sale there were
many rumors Of a combine. Mr.. Lynch
knew nothing definite about any col
lustons between the companies. but
said 1t was common talk at the time
Of the sale.
VIII Examine Company's Books.
At the request of r. j. Powell, at.
torney for the Nichols Chisholm Lum-
Der company. Mr.. Nichols will be en-
cused from appearing before the com.
mittee until they adjourn the hearing
to Detroit. MINI. The books of the
company will he inspected at that
time. Mr.. Nichols is just recovering
from an operation. and the request of
Attorney General Powell was agreed
to by the committee and NJ. C. Burch,
who Is representing the department of
justice in the inquiry. Mr.. Lynch
again took the stand at . p. IN. today.