The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-31
COLLECTIONS OF
$3,51O,0OL SHOWN
President Makes | eague
Income Matter of Rec
ord in Testimony
PAPER PROFITS Go
TO LEAGUES FUND
Income Derived From Pub
LEGATIONS Made Part of
Propaganda Fund
NV Il. D. PauInon.l

tBy II. D. PauIson.)
Bismarck, n. D., Jan. 31.-Dis-
closures made in bankruptcy court
by A. c. Townley. president of the
National Nonpartisan league, that he
directs and controls the financial
operations OF tho NOnpaTtsan
league, which has collected $16 mem
bsrshIps from about 10000 farmers
an aggregate OF 2,400, 000s the Con-
sumers' United Stores Co. which he
says has collected approximately
$3.50, 900 from farmers; the League
Exchange, in which he says $4,000
worth Of stock has been sold, 5000
being paid in. and the Nonpartisan
Publishing company, win be followed
by . demand upon the federal courts
that the trustees be permitted TO
make an examination Of the financial
affairs Of those four organizations to
determine whether or not Mr.. Town
ley has told the truth with respect
TO his own personal profit there
frum-
The first meeting of creditors, be-
gun Wednesday morning and con-
tinasd tin Feb 20, Is being used to
form the foundation on which credi-
tors are building for a more thorough
examination of Mr.. TOWnlsys
financial operations, to the end that
they may determine whether or not
ne had made = false disclosure of
his financial condition, when he
showed assets Of only about $500 TO
balance against debts aggregating
over So, 600
Paper Profits Aid League.
Mr.. T0Wnley'B financial operations,
as president OF the Nonpartisan
league, and as shown by Mr.. Town
ley'B sworn testimony in the bank
TuptcY proceedings, reveal that he
has the direction Of a total fund OF
S3yE0Q, 900, derived from membership
dues, from the sale Of League Elk
change stock, and from the COnsum-
ers United Stores company, not 10
mention profits garnered by The
Nonpartisan Leader and The Courier
News, league organs, the profits
from which, according to the sworn
testimony OF Edwin +. Wood, mem
Der OF the co-partnership known as
Fox & Wood and doing business I'M
der the fictitious mama OF the Non
partisan Publishing company, are
used in the furtherance Of the Non
partisan leagues propaganda work
in this and other states.
In addition TO the income from the
league membership for the current
the publications, Mr.. TOWnley also
has directed the expenditure since
tha league was organized Of about
S28o. 900, collected from 5000 mem
bers Of the league in North Dakota
prior to Dec. l, 1916, from which
time the new memberships date.
The examination Of Mr.. Townley's
business affairs to be requested by
his creditors viii go to all Of the
several NOnparttsan league corpora
tions, each OF which Mr.. TOwnley
has declared to be the product of his
own thought, and over which he Is
the directing genius today.
Assumes Full Responsibility.
NF. TOWnley's testimony in the
hearing Wednesday with respect to
his connection with the Consumers
United Stores company formed
most interesting feature Of the ses
sion
Pleading ignorance Of the COM
pany's organization secrets, even in
GLIDING the question of whether or
not Thomas Reyes, Mr.. ToWnIey's
employe who is the cashier or treas
urer OF all Of the various ieague en-
teFprises, is the cashier or treasurer
Of the chain store company, the
president finally admitted that he
had a controlling influence over the
examination through his friend, J.
NJ Brinton, who has been Mr.. Town
Lsys personal representative" for
some time.
When Francis J. Murphy. repre-
seutIng the creditors, oiled Mr..
TOWnley with questions relating to
the first sale OF buyers certificates
in the Ksnmare district. the cues
lions going to the sale of such Ger
tidcafes by Mr.. Townlev in company
with A. Il. Bowen and ]. NJ. Brinton,
Of the league, and J. III. Sinclair, Of
Kenmares a member OF the legis-
lsture.
II was subsequent to his admission
that he did participate in the first
active field work for the chain stores
that Mr.. Townley admitted he di-
rected the financial policies Of the
stores company.
Mr.. Towniey also made an inter
esting explanation to the referee
with respect to the o-paFtnership
that holds, In name, the NonpartisRR
Publishing company and The
COuFieF-News
The co-partnershiD Of Fox a. Wood
was organised, Mr.. Townley ex-
psained, for the PSYCHOLOGICAL effect,
~eT he said farmers would be wary
4 jnining the league II they thought
they were 90 be in any manner IL
able for debts that might be con-
trnctad by the publishing concern.
Pepper Ownership Hidden.
Mr.. Townlsy's testimony with ref
erenoa TO the ownership Of the stock
"a The Courier-News, which he de-
claraa In a previous hearing was
held BY Fox q Wood, operating as
the Nonpartisan Publishing COM
pany, dlscloses an interesting line
On operations within the league, as
relates 20 the publishing business.
Mr. T0wniey says the sworn state
menks of ownership published by
IhB CUurier-News do not, I'm fact,
reveal the actual ownership thereof,
the testimony on that point, as
brought out yesterday, following;
c. Before We SO any further, 1
want 60 clear up q point Your testi
Tnomy ae the last hearing, as / recall
90 with respect TO the Nonpartisan
Publishing co. was that this concern
was . -partnership.
As Yes, sir
q ConsistinE Of Ar, q. p. Wood
AID Nr. a. ]. Hox2
a. Yes. sir
~ HmA #MnR that rnwmnRva 4.V7vwan