Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-01-31
Townley's Testimony
Reveals His Control Over
The Financial Machine
CONTINUED from. Page ~

'Conttnued FROM, Page ID
heSsatd there was a fund of $3.50, 900
from subscriptions, which, his evil
dence shows, he can withhold or give
TO fthe company.
The object of this hearing, then, is
y 10 lay the foundation for a demand
lor an examination of all records of
INC league and it's auxiliary ~-organiza-
tons. This demand will be made in
the United States district. court at a
later date.
Iownley testified Yesterday that he
drew checks for $1,000 or more or
his personal account to purchase
work, SO the trustee--E. Il. McCutch-
con of Minot-will ask to be per-
mltted to SO into the records to see If
the petitioner has covered up any
tthtns.
When yesterday testimony began.
Townley declared that he had paid
b nothing to any creditors since 1912
and that he had made no arrange
rent. other than his petition in
bankruptcy. to meet his obligations.
Since early in 1915, he said. his
business has been that of president
and manager of the Nonpartisan
league. Hc said he vas the sole or.
: ganizer Of the league and that he did
not. pay q membership fee. He spoke
ofsorganizing in Minnesota, South Da-
kota. Montana, Idaho and other
states. and said each state organiza.
tion was distinct from the national or
ganization. He and VIM. Lemke and
F.iEB. Wood comprise the executive
committee. he said. They do not con-
troll each state organization, he main
tanned.
Lemke. who represented Townley.
objected to prying into the affairs of
"the National league for political pur-
poses" but Mr.. Murphy. declaring
that the principal business of the
league is politics." showed why 1t was
necessary to make such an examina-
ton. .
Mr.. Murphy, then, brought out the
fact tina Mr.. Reyes was financial
agent. either as cashier or treasurer Of
the league. the publishing company.
the Exchange, and in some way. OF
the Consumers United Stores COM
pany.
Directs. Eut Doesn't Own.
Townley said he was u director OF
the League Exchange, which Is incor-
.,porated at Il million dollars in the
States Guaranty company!N recently
organized, he said, at the suggestion
ofsthe South Dakota manager OF the
league, is Incorporated at Il million
dollars in the State of Minnesota. put
has lone little Or no business so tar.
He said that he had no stock in the
l.. S. Guaranty company n that nc
' one was carrying any for him.. and
that he had no understanding OF
agreement as to any in the future
He also said that he had no stock N
the stores. The Consumers United
Stores company. is capitalized at $1O.-
900 in North Dakota. he said.
In reply to a question regarding the
leagues organs, Mr.. Townley said tina!
the Nonpartisan Publishing COMPANY
was ~ c~o-partnership of E.. +. Wood
and w. j.. Fox and that they W the
Leader and The Courier-News
ID you not know that the Courier
News is n corporation and the Non:
partisan Publishing company does not
W any stock? 2" Mr.. Murphy asked.
II don't know; 1 didn't know thai
they didn't own any stock" he replied
~ The official reports show tn
Courier-News a corporation n tae
Nonpartisan Publishing compan
does rot appear as a stockholder," MIR
Murphy explained.
.I don't know said Townley.
when you testified that the CO
artnershir1 aia YOU .sloo a month. syo'
were nlistaken?"7- : u. ...~ >
III you're correct l vas he re
piled.
Nv. Murphy suggested that HI
for he said. Mr.. Lemke's name APP
peared in the sworn statement as o n
of the. stockholders. Townley. then
replied that he didn't know the de
tails" but that Gin effect the Publish
ing company owns the Courier News
"Toespjte the sworn statement he
hind it," he was asked. "are Woo