Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-05-10

Townley Raised $4,000 on
Notes Furnished by
Valley Farmers Il

Bismarck, Nd, May10-EoW330
900, which "A. G. Townley raised In
Bismarck on collateral furnished by
Red River valley farmers In the form.
notes, for the purchase Of the Courier
News from Fentress and Marsh, for
mer Des Moines, Iowa, newspaper
men, who only a few months before
had purchased the paper from DR..
Guild, was indicated this afternoon
produced in Referee in Bankruptcy
.O'Hare's Offices the cancelled draft
change by F. B. Wood and re-en-s
dorsed by F. G. Fentress and Charles
e. Marsh. &
The date on, which the draft
originally was issued, was shown to be
November 81, 1916. It was paid De-
cember s., 1916. $
Under cross questioning, Mr.. Shop
ard testified that the note upon
which the draft had been issued had
been discharged partially through
farmers taking up notes and pre-dated
checks furnished by Townley Is coll
lateral and partly by 2 draft from
also stated that some Of this collateral.
dated back in 1916, still remained In
local hands for collection.
Colonel c. B. Little told the de-
tails of the loan, which Colonel Little
made the league through Townley
some time in 1916. The witness stat-
ed that Townley had deposited With
him in security for the loan $4,000
in collateral in the form Of notes and
mont of league dues. with possibly
a few 800 notes paid in purchases Of
stock in the Equity Cooperative
packing plant at Fargo. Colonel LIT:
tie testified that he barely knew
Townley al the time. having been In
troduced to him q few days before.
and that the league president per-
negotiated the loan. Colonel Little
stated that he spent some time in go
ing over the collateral principally in!
the form of one-name notes, with let
tiers from local bankers explaining the
financial standing Of the makers:
and accepted enough Of 1t to furnish.
in his judgment, g~ilt-edge security
for the loan. His judgment, he stat
ed. had been verified by the payment
Of these notes. The obligation has
been cancelled, and Townley has been
returned his note for $4,000 given
on behalf Of tho league.
not friendly to tho league 1t the time.
but stated hat he did not confuse
friendship with business, and that. this
had been purely q business tr4neac-
ton. He stated most emphatically
that no political consideration entsr-
ed into the matter. He was not cer-
tain as to the date Of the negotta-
lions; he thought 1t might have been
in January, 1916. or that It may have
been nearer. election time that year.
He testified that he was a candidate
for the state senate at that time. OPP
posing a league nominee. =
The collateral accepted came prtn-
cipally from Red River Valley coun-
ties in which crops had been good
and where Colonel Little had reason
to, believe the farmers amply able
to pay the small obligations repre-
scented by their Individual notes.
r "We are running down all Of these
lrumors in order that no one can. say;
after the proceedings have been fin
ally closed, that We did not do our
best on behalf Of the creditors t o lo-
cate any assets which Townley may
have failed voluntarily to disclose."'
said Trustee in Bankruptcy f. b. Nc.
Cutcheon Of Minot, who is here fol
the hearing. "A thousand and one
Of these stories reach US every day
Some are so wild that We can-afford
to ignore them; others are given such
general circulation that We cannot af-
ford to ignore them. and it is neces-
sary that we go through with thi.
probe n prove these stories false OF
get their denial on our records unde,
oath. or, il there really is anything
to them, to follow up the lead thus
unearthed. We intend to give people
who claim to knoW about ,ToWnley,,
affairs an opportunity to stake the
stand and tell what they know"