The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-01-30
Townley Chain Store
Scheme Has Taken
100000 from N. D.
CONTINUED From Page One.

of the exchange. The exchange has
sold $4,000 worth OF stock to farm
ers who have taken up their notes
to the extent Of $4,000. Townley pro.
fessed to own but one 500 share.
The exchange was organized by
Townley. with the advice and council
of Lemke The same was true of the
Nonpartisan Publishing Co., and of the
Consumers United Stores co.
The United States Guaranty Co. al
so was initiated by Townley, but he
stated he has had very little to do
with it's business affairs. G. M. Hut
cheson is president Of this institution;
J. j. Hastings. formerly of the You
mans bank at Minot, and now presi-
dent of the Scandtnavian-America
bank at Fargo is secretary, and Mr.
Townley was not surprised to learn
that the same Mr.. Reyes is treasurer"
: Another Townlcy Idea.
The Consumers United Stores Co.
wa sanother Townley idea. He Great
ed and originated the agreement re-
Gently brought to light and which all
stockholders sign. He and A. E. Bow
en- and J. M. Brinton did the first Or
ganiZation work, with Rep. J. H. Sim
clair as an aide. The concern has col
!ected $4,000 since July I, 1917.
rownley was not positive that Mr..
Reyes is treasurer Of this company,
ut believed him to be so. The home
office OF this concern is in the Guar
anty building in st. Paul. Mr.. Keyes
LAS full custody of the books.
Mr. ToWnley owns no stock, draws
no salary and has no financial interest
in the Consumers United Stores Co..
he said. J. NJ. Brinton, a former
Beach newspaper man, is manager,
and he draws the checks. Mr.. Townley
admitted that he had selected Heck
and Elliott to be organizers for this
Cnterpl ise, and tina: he had a general
supervision over the diSburs ement OF
lie funds of all these Institutions, but
that his only financial interest in any
Of them is his hundred.dorral share
of stock in the league exchange
Mr.. ToWnley declared he had no urs-
derstanding with any of these CcH-
Germs, that he will or will not profit
at any future time from their enter.
prises-ilOt any more, said he, than !
have with the Great Northern railway
Or the electric company here He ed
mitted there was some distinction,
however, between his connection with
the league enterprise ami wirh the
treat Northern. IF you got into the
treat Northern cash box, it probably
would lie with burglars jimmy,
1,,lt 81,
,hy. Townley confessed tina; was his
one BEST chance to get anything out
If the Great Northern.
Not Certain About 5ond.
Townley wasn't certain that ne own
ed Liberty bond Ele believed 'aume
of the boys about the office had
bought one for him during the second
campaign, when he was away. He
asked I.emke for verification, and the
latter stated that Townley had been
included with other office employees
when Wood and I-emke decided to IN
vest some Of their employees salaries
in liberty bonds for these employees.
"'We apportioned one to Mr. rownlry
along with the rest" said Mr. J.emke.
Mr.. Townley, apparently, never, had
been interested enough to definitely
ascertain that one solitary bori stood
in his name.
Murphy brought in records Ct high
covered, six-cylindered touring cars
md Hudson roadsters insured at var
ious places in the name of Mr.. Town
ley. The witness admitted such cars
might have been insured by him, as
they probably were two of half-doz-
On Of that kind Of cars which passed
through the organization.
Mrs. TownIey's Diamonds.
The witness said that if Mrs. Town
'ey had any diamonds or any large
bank account she had carefully con-
'ealed that fact from him. she didn't
have any money when married her
and she hasn't had any since except
What have given her." He thought
she might have an account Of 500 to
:15O in some Twin City bank, but was
positive she had no real estate hold
ings anywhere, and that no one else
vas holding real or other property for
himself or for Mrs. Townley.
McCutcheon Trustee.
In opening the hearing, Francis
Murphy filed power of attorney for a
lum Der of creditors in addition to
hose he previously represented, and
cast their votes for the selection of
: q. McCutcheon Of Minot as trustee.
In order to legalize the foundation
hat is being laid for the future ex-
mination OF Mr. Townleys affairs,
Nr. Murphy said it would be neces.
sary to retrace portion of the ,
ground covered in the first hearing.
Mr.. Murphy went into the question
If the ownership of the Courier News
It Fargo, calling to the attention of
he witness the fact that in the first
rearing Mr.. Towniey had testified
hat the Courier News was owned by
ne Nonpartisan Publishing company.
Asked if it wasn't a fact that the
ourier News was ownel by corpor-
ton. and that the sworn statement of
ownership didn't reveal the fNonpar-
isan Publishing company as the hold.
or of any stock, Mr.. Townley said he
lidn't know, and that he wasn't clear
IN all details of that transaction. He
laid The Nonpartisan Publishing COM
,any advanced the money to pay for
rhe Courier News stock.
Mr.. 5Townley said that after his
farming operations in Mckenzie coun-
" he represented land company for
l short time prior to organizing the
league. &