The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1920-10-14

mistake in investing money in Dade
county, Florida. But he made mis-
take when he involved Townley the
politician, Townley the bankrupt and
Townley the farmers friend in a
promotion and money-making scheme
in distant land. 1t involved his in
tegrty as politician, it involved his
testimony of poverty in his bank
ruptcy proceedings and it involved his
future prestige with his farmer
friends. But as l have related, Town
ley, the promoter, took possession Of
Townley, the boss politician. His old
fever to promote and make money got
the best Of him, and during 1917, 1918
and 1919, Townley, the promoter,
wired and otherwise sent funds, thou
sands Of dollars, to E. Lundeen and
others at Miami, Florida. He had
Thomas Keys, treasurer Of the Non
partisan League, wire money to Mia
mi He had Norbert O'Leary, his pri
vate stenographer, wire money to
Miami, as the financial records Of the
Western Union at st. Paul and Miami
will show.
And thus his Florida venture be-
came reality. 1t needed financer
and j. j. Hastings, his financial sec
rotary, was selected. Hastings was
vice president of Townley's Fargo
bank and money continued to flow
southwark. In 1918 deal was con-
summated to take over large tract
Of land. 1t must be inspected. Hast
ings was too busy organizing banks
and financing other and numerous
Townley enterprises, so another was
selected. Thomas Allen Box, then
secretary of the Council Of Defense,
was chosen. He had been given this
state appointment by Townley. He
was in high favor He went to Mia
mi. He viewed entire Southern Flori-
da. He was entertained in a private
yacht. He also brought back glowing
reports. Later a meeting was ar
ranged, under Townley's instruction,
at Chicago, where a 22,400-acre land
deal was closed with $4,000 the i'm
mediate consideration. Box and
Hastings were to be the trustees of
the enterprise, similar to the trustee
ship through which Townley owned
the League official" papers. Box
and Hastings organized a holding
company in South Dakota to hold
Townley's interest in secrecy in the
form of "trust certificates" and Box
and Hastings were to receive an in
terest in the "trust" for their activity
and association. Papers to organize
the United States Sisal Trust were
also drawn, with Hastings and Box as
officers, and 1000 of the amount
agreed upon at Chicago had been ad-
vanced through Hastings and Town
1.,J, E,,no h,,l, The J;I NIT in
clude money invested in Florida by
Towney in 1916 and 1917.
But just at this point something
happened. Hastings and Box had been
organizing banks in North Dakota for
Towney. They had organized sew
eral and reorganized one at Valley
City-a 100000 deal-the story Of
which alone would fill book. But
the outcome was an investigation by
the federal grand jury, involving not
only Box and Hastings, but Townley
and his attorney, William Lemke, the
bank being 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. 1t might lead
to Florida. There was his testimony
nj federal court that he had no prop
erty. The legislature was in session..
j might lead to legislative investi-
cation, as state funds had been de-
posted in Townley's Fargo bank and
invested or loaned to the sisal enter
prise. There was an embezzlement OF
S12 900 unsettled in the Fargo institu-
ton, funds which had gone to Florida.
Documents, proof of these statements.
are in the hands of the writer. Proof
of financial transactions that would
make .Ponzi an amateur. 1t was
Townley, the politicians time to act.
1t was no time to dream. The politi-
clans political life was at stake. And
so Townley, the politician, kicked
Townley, the promoter, out of the
League. He kicked Box and Hastings
out of the League; he repudiated
Townley, the promoters banking pro
motions, and in his fear lest the sisal
instructed Hastings to send the fol,
lowing telegram to the plantation
manager at Miami:
"My attention called to prospectus
which you sent to Leader. Wire me
any Otner partleS 10 when one mas
been sent. Want no publicity what
ever farther north than Jacksonville
Do not want Box and self to be known
as trustees. Expect to come soon.
J. ]. Hastings"
1t was planned to have Hastings go
to Miami and claim ownership of hte
entire project-and Townley to re-
pudiate Hastings for consideration
SO as to clear the political boss from
public association with the Florida
deal But like challenge from po-
litical opponent came the reply from
the plantation manager. He had over
stepped his authority. He wired back:
prospectus given to tourists from
Maine to California" The situation
was desperate. There was no time to
lose. Hastings was still being inves-
tigatedl by the grand jury. A new
proprietor must be found for Town
ley's Florida venture. And one was
found in the person of j. R. Waters,
Townley's friend and Townley's APP
pointee aos manager Of the Bank Of
North Dakota. 1t was happy
thought. At midnight Mr.. Waters
was called from his bed and deal
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