The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-30
RESUME PROBE OF
FINANCIAL TIE
Bet WEEN LEAGUE
ANDA.C.TOWNLEY
Hearing of Famous Bank
Fuptcy Case lis In Prog
ress At Bismarck
CREDITORS LOOK
FOR HIDDEN ASSETS
Unsecured Liabilities Ag-
gregate $40, 900, With
ksa Assets of $500
lryWw
FIRST HEARING
WAS IN OCTOBER
Some Hitherto Unpublish-
ed Testimony Regard
ing His Duties
FIRST HEARING
WAS IN OCTOBER
(Rv HID. RauIsnn.l

Bismarck, N. D., Jan. 3O.-A. c.
Townley, president of the National
Nonparttsan league, is prepared to
resist with every ounce of his en-
,ergy, the efforts of his creditors to
investigate the affairs Of the Nation
al Nonpartisan league, the North
Dakota Nonpartisan league, The
Nonpartisan Publishing company. as
well aR other corporations organized
under the auspices OF the league.
The hearing before Referee in
Bankruptcy II. F. O'Hare in Bis
marck was scheduled to be resumed
today. and further details in con-
nection with Mr.. Townley's varied
business activities since the organi-
Satton Of the Nonpartisan league will
be inquired into by the attorney for
Mr. Townley's creditors.
Assets $500.
Nm. ToWnley, In voluntary bank
Fuptcy proceedings, is seeking to
have himself exempted from the
payment OF a schedule Of unsecured
liabilities aggregating $4,000, as
against which he disclosed total as
sets of approximately $500. Mr..
Townley, individually, and as a
Eneu16er Of the CO. partnership known
Ra Townley Brothers, wherein he
was associated with c. s. Townley,
seeks the bankruptcy bath, as does
his bFothers
The first hearing was held on Oct.
26s 1917, and the hearings were de-
laysd from time TO time to this date.
Ia the original hearing OF the
case. the examination OF Mr.. Town
lev brought out some interesting
statements concerning the manage
ment Of the. National Nonpartisar IN
leaFue. which, he says is solely in
the hands uf himself, #. b. Wood,
formerly Of Deerfng, N. ID. and VIII
liam Lemke OF Fargo. Only three
men are members of the executive
committee that Mr.. Townley says
directs the entire affairs Of the ma
honal organization.
Mr.. TownIey also made some in
teresting statements with respect to
che ownership Of The Nonpartisan
Leader. formerly published in Far
10. but now published in st. Paul,
and with respect to the ownership
of The Courier-News. published in
FGrBo.
Conducts Editorial Policy.
EIr. Townley told the referee in |
bamlxuptcy that he personally di-
rected the editorial policies of both
Fhe Nonpartisan Leader and The |
Courier-News, and for such services |
receives a salary of $100 q month, |
paid TO him by The Nonpartisan
Publishing company.
The Nonpartisan Publishing COM |
many is a o-paFtnership, according |
70 Mr.. Townley, consisting of Edwin
Wood, an organizer for the league.
and Al. J. Fox, also a league organ
tzar. That o-partnership. according |
Do Mr.. Townley's statement, con-
trolls The Courier-News.
Portions of the testimony taken
i'm the first hearing of Mr.. Townley' l
case are extremely interesting.
Relative TO the business affairs of
the state and national league, the |
examination of Mr.. Townley runs as
q. What Is your present busi-
nesg2
IA. Managing the work Of the Ma
tional Nonpartisan 1eague-directtng
tha work Of the Nonpartisan league.
charaoters Of ORGANIZATION.
q, What Is the character OF that
orRauazation in respect to its legal
mean whether 1t is AT
or corporation or joint
association OF individuals or what
is itg
LtlE now - IL - kAA1 AAAAA@~3t 1
of this organization conducted?
Mr.. Manahan: I desire to enter
an appearance here especially for the
National Nonpartisan league regard
ing which the inquiries have been
directed by Mr. Murphy, and want
~ enter the objection at this time
that the affairs Of that organization
ara not properly subject to eXamln-
alton in these proceedings, and TO
object to any inquiry as to the man
aEement or the other affairs OF that
organization. ] don't object TO them
as a preliminary question.
Mr.. Murphy: 1 understand .coun-
seiss statement is that he makes a
speciaI appearance in behalf of the
National Nonpartisan league. 1 OBJ
Iect to any such appearance unless
n appears that this organization is
! party to this litigation, either as
! bankrupt or a creditor: and as to
The balance OF his objection / will
tate that the creditors whom l rep
resent are merely seeking to ascer-
sin whether or not this bankrupt is
IA the possession Of any funds or
assets or sources Of income that are
rot declared in the schedules.
Mr.. Manahan: No objection 20
that. then.
serve the right in the endeavor to 50
,scertain to investigate fully and
and in detail all Of his
business connections with this or
ganiEation or any other orBani2atio
hat ft may appear that he has !
business connections with.
Mr.. Manahan: No objection on
N