The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-30


ana that through an intricate sys-
tenn OF interlOcking direCtorates Mr..
Townley practically controls this
gigantic corporation as well as the
National NOnpartisan league, and
the North Dakota Nonpartisan
league, and the league exchange and
the Nonpartisan Publishing company
and the United States Guaranty COM
pany, but that his sole financial in
terest or hope of an interest in any
Of these concerns is his 5000 monthly
salary from the league and his 500
monthly salary from the Publishing
company (which can dispense with
his services whenever it sees tit", and
one 800 share i'm the league ex-
change, were interesting admissions
sliCited from the president of the
Nonpartisan league in his bankruptcy
hearing before Referee II. +. O'Hare
this morning.
Drew Big Checks.
Mr.. ToWnley admitted drawing
checks on his own account for large
amounts. During his recent visit to
Idaho he stated, he found the league
ONCE there in need of funds, and he
drew his personal check for $1,000
and wired the league office at St
Paul TO cover. He admitted that in
September, 1917, he drew personal
checks on the league treasury to the
amount OF $500. and he admitted
paying by personal check $500 at one
time and various amounts at others
for large numbers Of copies Of The
Country Gentleman, a Curtis publ
cation, which, a year ago, ran a ser
les Of articles eulOgizing the league.
He might at any time, Mr.. Townley
said, draw his personal check to
cover the purchase of an automobile
or a half dozen automobiles on the
league account. These checks, he
stated, always were protected fkom
the league treasury, in the keeping
OF Mr.. Keyes. Mr.. TOwnley admitted
that w. G. Johnson, a league book
keeper, drawing perhaps $3.50 to SITS
-the month for his services in the
st. Paul headquarters, had drawn
out and deposited to his personal ac-
count in July, 1917, the sum of $10,-
GOO. Mr.. Townley hesitated to ex-
plain this circumstance, but stated
he believed it was done because there
were rumOrs at that time that the
league funds were to be tied up in
some way.
At the beginning of the hearing
the appointment of e. B. McCuteheon
Of Minct, former state game warden,
to be trustee, was announced.
Francis ]. Murphy of Minot, form
er assistant attorney general, is
representing the creditors, while
William Lemke, a vice president and
one Of the three directors of the Ma
tional Nonpartisan league and chair
man Of the Republican State Central
committee, appears for Mr.. Town
Ley.
James Mammalian of st. Paul, VINO
represented the league in former
hearings, is not here for obvious rea-
sons.
Referee O'Hare's office is packed,
the spectators including many league
legislators, who are bu5ily making
notes, particularly as to facts brought
out in relation to the Consumers
United Stores Co. Legislators OPP
posed to Mr.. Townley also are we'll
REPRESENTED.
Funds At His Disposal.
Mr.. Townley's evidence Indicated
that any Of the funds OF the National
NOnpartisan league or Of the Nom
partisan Publishing Co, or Of some
of the other auxiliaries are at his
disposal when he desires to use them
for political purposes.
he admitted having used the funds
OF the Nonpartisan Publishing Co,
which owns The Nonpartisan Lead
81 Of st. Paul and The Courier News
0f Fargo He also admitted that
Edwin @. Wood and a Mr.. Fox, league
organizers who appear as the de factO
copartnership owning these publica-
tons had little. If anything, to do
with the active management Of the
newspapers.
Oliver Morris is the editor and
Herbert CASTOR is business manager
of the Nonpartisan Publishing Co,
testified the petitioner.
las a matter of fact the finances
0f the Eonpartisan Publishing Co.
are ais much under your domination
rs are the finances Of the league, are
they nota2 asked Attorney Murphy.
no" replied Townley, Fox and
Wood can dispense with my serv-
ices in the Publishing company, but
they cannot dispense with my serv-
Ices In the league"
On further examination, however,
the witness admitted that he con-
trolIed the finances Of the Non
partisan League Publishing Co. 3lst
as ne controlled those Of the league
through an executive committee
composed of himself. T. B. Wood Of
che Equity Exchange in ST. Paul. ana