The Oakes times. [volume] (Oakes, N.D.) 1906-current, 1919-01-16
STEWARDSHIP IS
0K'D BY COURT
ToWNLEYs RECORD is Barred
IN FEDERAL COURT
And Discharged from Obligations
Amounting to Something Like
$4,000

Minot, N. D., Dec. 3O.-When
shown the report today from Fargo
of the discharge of A. G. Townley
from bankruptcy. E. B. McCutcheon,
trustee for Townley said:
"The case will certainly be taken
to the circuit court of appeals as
rapidly as possible after we receive
copy of the court order. We are
satisfied that we presented evidence
that warrants such a STEP"
Fargo, N. D., Dec. 31.-A. c. Town
ley. president of the National Non
partisan League, and his brother, C..
S. Townley, were discharged from
bankruptcy through an order handed
down yesterday by Federal Judge G.
F. Amidon after a thorough probe of
the finances and affairs of the Non
partisan league as we'll as the Town
leys.
The order not only exonerates A.
c .Townley from the charge of hid
ing assets and wrongfully sequester-
ing funds of the Nonpartisan league,
but declares that the trustee for the
creditors, in a hearing which lasted
more than year, "has been permit
ted to go through the record of all
these concerns as with a lighted
candle" and "He has found no trace
of the use of any part of the funds
or properties by Mr.. Townley for per-
sonal purposes. or for any purpose
except the accomplishments of the
objects of the political party of
which he is the leader.".
Record Honestly Kept
The order goes on to say that the
record of these funds "is full. and
has been honestly kept, and shows
an honest purpose to give an account
of an honest stewardship" and that
"his "a. C.Townley's) only interest
in the property and funds of the
Nonpartisan League and of the other
firms. associations and corporations
referred to in the evidence, is simply
that Of a leader of the League, and
all his power over the same is for the
purpose of the League, and that he
has no private or personal interest
either directly or indirectly, in any
of said funds or properties except to
the extent of his salary of $500 a
month"
The failure Of the Townley broth.
ers, who were engaged in extensive
farming operations in Golden Valley
county in 1911 and 1912, was primar-
lily due to an early snow storm on
Sept. ~, 1912, which caught their
10000 acre flax crop in bloom and
ruined 5000 acres so it was never
cut. A drop in prices just as the
salvaged portion of the crop was be-
ing marketed, completed their ruin.
The Towhleys had been encouraged
in their venture by real estate men,
implement dealers, grain and seed
dealers and railroad companies. They
went into debt for seed, stock and
machinery. When their flax crop
was ruined, such property as they
had left was sold and the proceeds ap-
piled to their debts, leaving balance
of some $4,000, of which they asked
to be relieved through bankruptcy
proceedings.
Unsupported Charges
E. B. McCutcheon of Minot was
elected trustee by the creditors and
Attorney Francis Murphy of that city
was employed as legal counsel. When
the petition of bankruptcy was filed
Mr.. Towney had been president of
the Nonpartisan League for two and
one-half years. The League then was
conducting political campaigns in
several states From the first, the
counsel for the creditors and the
trustee constantly endeavored to use
the case as means of circulating un-
favorable political propaganda and
other allegations made, most of them
without any supporting evidence,
were heralded through the northwest
by the opposing newspapers in an ef-
fort to convince the public that Mr..
Townley was dishonest and that his
management Of the Nonpartisan
League was marked by corruption