The Montana nonpartisan., 1919-01-25

The Nonpartisan league, its pub
locations and their administration
by A. c. Townley are given clean
bill Of health by Federal Judge Char
les F. Amidon, an appointee of the
president Of the United States, in a
5000-word decision in the Townley
bankruptcy case. Judge Amidon
first reviews the legal history of the
case. He tells how the creditors of
Mr.. Townley demanded to be shown
all books and records of the Nonpar-
tisan league, under the claim that
these would show that Mr.. Townley
had obtained, for his own use, money
contributed by the farmers for the
League. Judge Amidon refers to the
order that was issued following this
examination, and says:
Search Was Thorough.
pursuant to this order the books
and records referred to therein were
produced. Counsel for the trustee,
aided by the trustee himself, and an
expert accountant, were given full
access to all the books, papers and
records referred to in this order and
permitted to examine the same fol
the purpose of discovering any assets
which the bankrupts were concealing
from their trustee. The
disclosure, in obedience to the order
was full and complete. Everything
which the order embraced was pro
duced. Any other books, records and
documents called for by counsel from
day to day, as the inquiry progress.
ed, were likewise produced. So
think it must be said that the dis
closure was complete and the exam
ination thorough"
Judge Amidon then proceeds to
take up in detail the requests Of cred
itors that certain amounts of money
be turned over to them. These
amounts Of money, Judge Amidon
finds, are all the property Of the Non
partisan league, and not the property
Of Mr.. Toh;:,ley, and the requests are
denied.
Wanted League Papers.
Next he comes to the question OF
the League publications the Nonpar-
tisan Leader, Minnesota Leader and
other papers. The creditors asked
that all these properties be turned
over to them.
ut was charged" says the decision
"that there was no adequate system
of accounting and that the inference
was justified that he (Mr. Townley)
had betrayed his trust and had either
by the consent Of officers Of the
League subject to his influence OF
without their consent withdrawn
large sums belonging to the League
and its subordinate agencies and had
the same hidden in secret deposits, OF
investments upon secret trusts. This
was made the basis Of claimed
right to examine all the books, rec.
ords and files of the League and its
agencies to see if some clue could
not be found leading to these hidden
treasures.
No Hidden Treasures.
"The search has been pursued moi
only with the zeal of creditors intent
upon collecting their debts, but that
Of political adversaries seeking to
discredit a party believed to be dan.
gerous. Detectives were hired to in.
gratiate themselves with the wife o1
the bankrupt. AS the re-
suit of months of following up these
clues by the trustee, the creditors
and their detectives, counsel for the
trustee stated frankly on the argu.
ment at a recent hearing that no sec.
ret deposit or specific property helc
upon trust has been found. The con.
clrssion is justified, and the court
so finds the fact to be, that the rea
son why this hidden treasure has moi
been found is that it does not exist
"The Nonpartisan league is a po
litical movement which was started
in 1915 in the state of North Dakot;
to redress certain alleged grievance:
of farmers in connection with The
marketing of their products. The
movement has grown rapidly, no
only in North Dakota but in severa
other states. The publishing com
pany and newspaper plants that arr
referred to in the evidence are or
gans of the League, paid for by it:
funds and established as a means o
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