The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-05-10
T(|NNLEY GOT
$4,000 LOAN II
In BISMARCK
Furnished Farmers Notes to the
League and Equity Pack
ing Plant as Collateral
NO POLITICAL TRANSFER
Capital City FiIancier Says Deal
Was Based Purely on Bust
ness, Principles

How $40, 700 which A. C. Town.
ley raised An Aiamarck on collat-
erai furnished BY Red River val.
Icy farmers in the form of league
and EQUITY packing slant notes
Was used BY league managers
for the purchase al the Courier
News from Fsntress q Marsh
former pes Moines, iaS neWspa-
per man who only few months
before had purchased the paper
from Or. Guild, was disclosed this
afternoon when e. e. Shepard
produced, III Referee in Bank
ruptcy o,hare's office the can.
eelled draft for $4,000 endorsed
to the League. Exchange by E. 8.
Wood and re+erdorsed BY 6. G.
Fentress and Charles E. Marsh.
THE date, on which the draft
originally was issued was shown
to be November 27. 1915. Il was
paid December 5, 1916.
Under cross.examination, Mr..
Shepard testified that the note
upon. which the draft had been 10
sued had been discharged partial
" through farmers taking up
notes and pre-dated checks fur
nished BY ,IownIey g collateral
and partly by 4 draft from league
headquarters. Me-. Shepard also
stated that some Of this eoliater-
al dated back il 1916, still re-
manned ia local hands for ,ooltee-
ton.
h Tells OF Loan.
Col. C. B. Little in Referee O'Hare'.
office this afternoon told E. B. NC
Cutcheon of ,Minot, trustee in bank
ruptcy, and Francis Murphy, attorney
for the creditors Of A. c.. Townley, thu
details Of loan Of $4,000 which Col
Little made the league through Town
ley some time in 1916. The witness
stated that Townley had deposited
with him in security for the loan $40,
900 in collateral in the form Of notes
and checks given by the farmers In
payment of league dues, with possibly
Z. few 500 notes paid in purchase Of
stock in the Equity, Cooperative Pack
ing plant at Fargo. Col. Little testi
fled that he barely knew Townley al
the time, having been introduced tc
him III lev. days before, and that the
ielkue president personally came tc
Little.s~.ss offices and negotiated the
loan. Col Little seated that he spent
some time in going over the collateral
principally In the form Of one-name
notes, with letters from loca. bank
ers explaining the financial STANDING
OF the makers: tha-- lie threw Cas-
some Of the paper and accepted
enough Of it to furnish, in his judg
ment gilt-6dge security for the loan
His jud xment, he stated, had been yer
flied; By the payment OF these notes
The obligation has been cancelled
and TOWnley has beer returned his
note for $4,000 given on behalf Of
the league.
Col. little admitted that he was no,
friendly "a the league at the time, but
stated that he did not confuse friend,
ship. with business, and that this had
been. purely . business transaction
He stated most einph atically that nc
politfcal consideration entered into the
matter. He was not certain as to tho
date Of the. negotiations; he thought
4 might have been In. January. 1916,
Of 1t, may have been nearer election
time that year. He testified that he
was candidate for the state senate
ct that time; opposing a league nom
lace. q s..
The collateral accepted came prins
cipally from Red River valley c0un
Ties In which cr0pe had been good
and where Col. Little had reason to
believe the farmers amply able to pay
TIE small obligations represented by
their individual notes.
Bedding plants ready at Hoskins
Advertisement.
SMILE when you pay your income
tax. II means tear for the kaiser.
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