The Monte Vista journal. (Monte Vista, Rio Grande County, Colo.) 1888-1921, 1920-10-16

thih' ''sth' ~ 49, '" ''
ci.r and J. ]. Hastings. his financial
secretary. was selected Hastings
va. vice president OF Towni"y's
Fargo bank aud money continued To
flow southwark In 1915 deal was
contaminated la take over lars"
tract Of land ., must be- inspected.
Hastings was too busy organizing
banks and financing other aud num-
~rous To~ni.y enterprises. so am
other was selected. Thomas Allen
Box. then secretary Of the Council
81 Defense. was chosen. He had
been given thi. stat. appointment by
Towni.y. He was in high favor, lie
went to Miami. ~. viewed .ntir.
southern Florida. II. was enter
tanned in u private yacht. He also
brought back glowing reports. Lat
or u mcctin. was arranged. under
Townicy's instruction. at Chicago.
where :2.t00-acrc land deal was
closed with $4,000 the immediate
consideration. box and Hastings
were to he the trustees OF the enter
prise. similar to the trustccship
through which Townlcy owned the
League Official papers. Box and
Hastings organized holding com
pany In South DakoJ, to hold Town.
lcy"s interest In secrecy In the form
Of trust certificates" and Box and
Hastings were to receive mn inter.
est In the trust" for their activity
and association. Papers to organ
ice the United State Sisal Trust were
also drawn. with Hsxtings and Box
ms officers. and $4,000 Of the am
cunt agreed upon ut Chicago had
been advanced through Hastings and
Townley's Fargo bank. This did
not include money invested in
Florida by Townley In 1916 and
1917.
But just ms this point something
happened. Hastings and Box had
been organizing banks In North Da-
kota for Townley. They had organ
lied several and reorganized one at
Valley City--a 5000. 900 deal-the
story OF which alone would MI n
book. But the outcome was an in
vestigation by the federal grand
jury. involving not only Box and
Hastings but Townley and his attor-
ney. William Lemke. the bank being
n national bank.
Townley, the politician. was seized
with fear. His Florida deal up to
this time had been entirely secret.
but here was his financial secretary
under federal investigation. IL
might lead to Florida. There WINS
his testimony In federal court that
he had no property The legisla
ture was in session. 1t might lead
to Legislative investigation, az
state funds had been deposited I'm
Townley's Fargo bank and invested
or loaned to the sisal enterprise
'Ihere was an cmbezzlement of
$4,000 unsettled in the Fargo in
stitution. funds which had gone To
Florida. Documents. proof of these
statements. are in the hands of tho
writer. Proof OF financial transoc-
lions that would make Ponzi an
amateur. 1t was Townley. the poIi-
tcian's. time to act. II was no
time to dream. The politicians mol.
iticai life was at stake And so Town
ley, the politician. kicked Townley.
the promoter. out of the league He
kicked Box and Hastings out of tho
League; he repudiated Townley. the
promoters. banking promotions
and In his fear lest the sisal en,er-
prise would become known he in.
structed Hastings to send the fol.
lowing telegram to the plantation
manager at Miami:
My attention called to prosnec-
tus which you sent to Leader. Wire
me any other parties to which one
mas been sent. Want no publicity
Whatever farther north than Jack-
soh'i'ie DO not want Box and self
10 De known as trustees. Expect IN
come soon. J. J. Hastings"
1t was planned to have Hastinps
20 to Miami and claim ownershin
OF the entire project-and Town,ey
10 repudiate Hastings for a cons,d-
Grafton 30 as to clear the political