Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-01-31

"No." r.sf- |
The witness explained that Mi.
Lemke, whose residence is in Fargo.
Is in st Paul a great deal of the time, /!
and that Mr.. Wood, who is in the
Equity work, also lives there. The
Equity does not take much of Woods
time, he said. He explained that Mr..
lLemke and Mr.. Wood were both vice
presidents. Reyes, whom he said he
hired personally. is secretary-treas-
lurer. !
hi principal business Of the league
exchange he said. is financing the
political organization. 1t was organ
lied to handle farm lands. too, he said.
but had not done much along that
line. Il. b. Wood is president, Thos.
Reyes is secretary-treasurer, and
Townley Is a member Of the board of
he owned 800 worth OF stock, but
had no other interest in it. The .cS-
change is capitalized at a million dol
lars. about $50, 900 of which is paid
in. he said. He said that no one held
any stock or other interest in it for
him. He also testified that the cx-
chanke was organized at his sugges-
tions, including h Consumers
United Stores company.
In t%estifying as to the store scheme,
he said J.. NJ. Brinton. a former Beach
associate, was president, and j. j.
Hastings, secretary. He wasn't sure
about 4hos. keyes' connection as
treasurer.
Now as tt the Consumers United
Stores company; you organized that?"
Yes"
He also admitted that he originated
the idea and drew up the agreement
The store plan was started about last
July, he said. A. f. Bowen, j. NJ.
Brinton and Tewnley did the first or
ganizing. IL
been collected for the stores since last
July.
Townley said he didn't draw any
salary from the stores. that he owned
NJ stool in II aud that j. NJ. Brinton
as manager, signed h checks. He
admitted. however, that he exercised
general supervision over 1t inc q
something to say about disburse-
nlents."
Mr. Murphy again enumerated the
league organization and. In answer
to Il question:, said he had no promise
or understa nding as regards u profit.
Il have no understanding hat I
will or will not benefit" he said.
Mr.. Murphy then looked at Town
Icy , SCIicuulc vi dSScLe. -
Have YOU any Liberty bonds?"
II believe l bought one"
Have you it now? l don't see it
scheduled here"
II think l have"
. How much?"
"One hundred dollars"
did you use any part of this
amount scheduled to buy it?"
yes"
VIM. Lemke ook a hand at this
stage and explained that he and
some of the boys had pooled the
, purchase of several bonds n appor-
, toned one to Mr.. Tewnley, who, he
said, was away when the solicitors ap-
peared.
{ The examination then turned again
> to Townley's income from the league,
He reiterated his statement that he
drew only 5000 a month salary and
expenses from the league and 800 Il
month from the publishing company
He said. however. that he had Sc
cured IS dividend OH his share OF
stock in the exchange.
t Autos Insured.
Mr.. Murphy. then. called MIR. Town
4 ley's attention to records showing
: that two or three high-powered auto
: mobiles had been insured in his name
personally. Townley said he didn't
e know it, but that someone might have
done 1t for him. He said 1t probably
o was dom by the office"
His attention also was called to Il.
nancial records covering the month
Of September, 1917. He said he
wouldn't say that he did not draw
Y more than his 5000 salary that month
Mr.. Murphy called his attention to-
!. $500 check signed by A. c. Town
ley. and he said he wasn't sure as te
! the transactions. that the amour,
might he We heen more.
do you know w. G. Johnson"
YES" Townley explained that he
y was an employee OF the league at {
comparatively small salary.
do you know that in July. 1917
he drew out $4,000 from the pub
him personally"
Yes"
why did he do this?"
o "Rumors hat the league publish
ing company or it's affairs were to b'
tied up by some process prompted III
d to put the money in his name"
e Money for Papers.
Townley told Of drawing a. persona
check for $500 to purchase a larg'
number of copies of The Ceuntr.
10 Gentleman. a Curtis publication which
l. recently eulogized h league.
J., D. YOU carry an account now?"
II "Where? i"
"1n the National Exchange bank
St. Paul"
How pluch?"
At Il can't say"
"a Townley. then. told of drawing
"a checks on his personal account TO
large amounts. He said he was IN Ida
no the other day and. the office Their
needed money. so he drew a checI
y for $1,000 and notified the Office i
st. Paul to He said that o.
numerous occasions he had done tn
same thing for the purchase Of auto
i mobiles or otherwise furthering tn
interest of the league.
He explained a he had no trou
BILE in having his checks covered, that
as head of the organization. he coul
go ahead pretty much as he please
without having any one inquire int
his work. He also said that he ha
no objections to the trustee examinin
!, the league books.
He said he knew nothing Of a lare
account carried by Mrs. Tewnle,
"She had no money when I marie
= her." he said. land she's got no me-
ey since except what I gave. her" Sh
had $87 in her account. he declared
when it was garanished. Neither ha
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