The Fargo forum and daily republican., 1918-12-30
TOWN. T REED
FROM HIS DEBTS
BY AhIDON ORDER
ISSUED TOD A Y
Nonpartisan Presid ent
Held to Have No Prop
erty Interests
PAPERS BELONG
TO THE LEAGUE
Court Holds That He .Di-
rects Them Because Of
Political Position

: e.. . :
A. C. Townley, president of the
National Nonpartisan league, was to-
day discharged from bankruptcy by
Judge C. +. Amidon Of the United
States district court.
The order frees Mr.. Townley and
his brother. c. S. Townley, from OBJ
legations aggregating nearly $4,000,
against which they balanced assets
of less than $500.
Doesn't Own Papers.
In his decision, Judge Anidon sets
aside all claims made by counsel for
the trustee in bankruptcy, holding
that the evidence has disclosed that
a. @. ToWnley has no interest in the
Nonparttsan league newspaper prop
critics, and that he has received no
grants of money from the Nonparti-
san league except his monthly sal
ary of $500. Other moneys paid to
President Townley, the court holds
were used by him in promoting the
interests of the Nonpartisan league.
Accepts Coates Story.
The trustee in bankruptcy. E. B.
McCutcheon, had asked the court. to
order A. G. Townley to surrender to
him for the benefit of the creditors,
certain moneys that had been paid to
ToWnley in the form of lump sums;
$1,000 paid to him which Mr. Town
ley said was the repayment by the
league of a loan received from d. G.
Coates; and that he be required to
turn over the newspaper properties
standing in the name of the Nom
partisan Publishing Co.. and Messrs.
Edwin Wood and A. j. Fox, league
organizers.
League Property.
Each Of these requests is denied by
Judge Arnidon, who holds that the
evidence disclosed that the newspa- a
per properties really are being held
in the manner indicated for the BEN
eft of the Nonpartisan league, and
that President Townley has no i'm
terest in them.
The court accepts the explanation
made by Mr.. Townley relative to the
$1,000 loan from Mr.. Coates.
AS to the items paid by the league
to Mr.. Town1ey, is is held that these
were book credits from time to time
asi3 ss.sat the n1oAeys they rePf ssents
were actually expended by Mr.. Town
ley for the benefit of the NonpaTtisan
league.
No Secret Deposits.
The court holds that the evidence
discloses no secret deposits or funds
or property interests of any nature
whatsoever being held for President
Townley.
Judge Arnidon recites that detec-
tives were employed to ingratiate
themselves with Mrs Townley in an
effort to obtain information relative
to secret deposits. but that such in
vestigations led OF nothing.
Power As President.
AS to Mr.. Townley's direction Of the
news and editorial policies of such
newspapers and organs owned by the
Nonpartisan Publishing company, 1t
is held by the court that this exer-
else of authority is in line with his
position as president of the league,
and conducted for the purpose OF fur-
thering the leagues interests.
Relative to the claim that Town
lev failed to disclose credit OF SAW
due from the league when he filed his
schedule in bankruptcy, it, is. held
that. Townley had in fact drawn
ahead and really owed money to the
league at the. time.
The only payment that A. G. Town |
lev is reauired..to make for the bene-
fit of his creditors is $1789, which is
the value of his possessions in excess
of his legal exemptions.
In discussing the newspaper sit
nation. Judge Amidon says in part:
.'The administration of this estate l
has been unusual in many of its fea-
(Continued on page %