Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-01-30

! NEOlOlO ALL
INVESTIGATION
Record of Court Proceed
ings in Original Hearing Of
Original Bankruptcy Case
Bismarck. n. d.. Jan: 3o:-A. c.
N~onpartisan league. is prepared to re-
siSt with every ounce OF his energy,
the efforts of his creditors to investi-
gate the affairs of the National Nom
partisan league. the North Dakota
NonDartisan league. the N~onpartisan
corporations organized under the au-
spices 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 connec-
ton with Mr.. Townley's varied bust
ness activities since the organization
of the Nonpartisan league will be in
quired into by the attorney for Mr..
Townley's creditors.
MI. Townley, in voluntary bank
ruptcy proceedings, is seeking to have
himself exempted from the payment
of a long schedule OF liabilities, as
against which he disclosed assets of
only a few hundred dollars. Mr..
Townley, individually. and as mem
Der of the co-partnership known as
Townley Brothers. wherein he was as
ISOLATED with c. S. Townley. seeks the
bankruptcy bath, as does his brother.
First Hearing in October.
The first hearing was held on Oc-
tober &c, 1917. inc the hearings de-
layed from time to time up to this
date.
In the original hearing of the case,
the examination of Mr.. Townley
brought out some interesting state
ments concerning the management Of
the National N%onpartisan league.
which. he says, is solely in the hands
of himself. f. 3. Wood. formerly Of
Deering. N. D.. and William Lemke
of Fargo. Only three men are men,
hers of the executive committee that
Mr.. Townley says directs the entire
affairs of the national organization.
Mr.. Townley also made some inter-
esting statements with respect to the
ownership of the Nonpartisan Leader.
formerly published in Fargo. but now
published in st. Paul. n with re-
spect to the ownership of the Courier
News. published in Fargo.
Mr.. Townley told the referee in
bankruptcy that he personally direct
ed the editorial policies of both the
Nonpartisan Leader and the Courier
News. and for such receives a salary
of 500 a. month, paid to him by the
tNonpartisan Publishing
The Nonpartisan Publishing COM
pany is a co-partnership, according to
nv. Townley, consisting Of Edwin
Wood, an organizer for the league,
and A. J. Fox. also a league organizer.
That co-partnership, according to Mr..
Townley's statement. controls the
Courier-Eews.
Portions Of h testimony taken in
the first hearing of Mr.. Townlcy's
case are extremely interesting.
The Examination.
Relative to the business affairs of
the state and national league, the ex-
animation of Mr.. Townley runs as
follows:
G. What is your present business?
a. Managing the work of the Ma
tional Nonpartisan misunderstanding
the work Of the Nonpartisan league.
q. What is the character of that
organization in respect to it's legal
cha racter: I mean whether it is a
partnership or corporation or joint as
ISOLATION of individuals or what is it Z?
A. 1t is a voluntary association -->-
Q. But how is it's the business
Of this organization conducted?
Mr.. Manahan: ! desire to enter an
appearance here especially for the
National N%onpartisan league regard
ing which the inquiries ave been di-
rected by Mr.. Murphy. and want to
enter the objection at this time that
the affairs of that organization are
not properly subject to examination in
these proceedings. and to object to any
affairs of that organization. I don't
object to them as a preliminary ques-
ton.
MIR. Murphy: I understand coun-
sells statement is that he makes a
Especial appearance in behalf of the
National Eonpartisan league. | OBJ
ject to n such appearance unless it
appears that this organization is a
party to this litigation, either as a
bankrupt or a creditor; and as to the
balance of his objection I will state
that the creditors whom l represent
are merely seeking to ascertain
whether or not this bankrupt is in
the possession of any funds or assets
or sources of income that are not de-
clared in the schedules.
Mr.. Manahan: No objection to
that, then.
MI. Murphy: And that we reserve
the right in the endeavor to so ascer-
tain to Investigate fully and infinitely
and in detail all of his business con-
%nections with this organizat ton or any
other organization that it may appear
that he has business connections with.
Mr.. Manahan: No objection on our
part to a full inquiry as to Mr..
Townley's connections with this or
ganization or any other Of his sources
of income. out as to the internal af-
fairs of this organization. of course it
would be improper. and this court
them.
Not to Political End.
Mr.. Murphy: 1 may state for the
benefit of Mr.. Manahan that my in
quiry is not directed to what we might
call the political end of that organi-
cation. if it has one but rather to the
management with a view to ascertain
ing whether or not this bankrupt has
been and is in possession of funds.
Mr.. Manahan: Funds which he
OWNS himself?
MT. Murphy: CerLhlnIy. una pass
ing through his hands and whether
any portions belonged to him. and If
SO. what. My inquiry is not at all di-
rected to the political affiliations or
purposes Of the orga nization.>.. with
which ] have no concern whatever.
Mr.. O'Hare:f Your objection,
understand, is withdrawn?
Mr.. Manahan: Yes, on that under
standing. No objection to going
thoroughly into Mr.. Townley's rela-
tions and his earnings from that