Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1920-08-26
TOWNLEY CHARGED
WITHs0WNERSHIP
OF SISAL TRUST

Suit Filed by Waters For AL
legged Promised Payment Of
Five Thousand Dollars May
Reopen Old Townley Bank
ruptcy Case.
Fargo, NJ. D. Aug. 24.-Charges
that A. c.. Townley, president of the
Nonpartisan league owns controll-
ing interest in the United States
Sisal TrustFpf Miami, Florida, are
contained in a suit filed this MORN
ing in the Cass county district court
by James r.. Waters, former man
ager of the Bank of North Dakota.
Mr. Waters demands payment of
$4,000, which he asserts was the an
nual salary promised him by Mr..
Townley for handling his, Townley's
interests, in the sisal trust.
Stock in the company, held in his
name, says Waters, actually belongs
to Mr. TOwnley, and is being held in
Waters name in trust.
Testified He Had No Property
In the United States district court,
where he testified in bankruptcy pro-
ceedings by which he seeks to avoid
payment of approximately $4,000
of debts incurred when he plunged
in flax production in western North
Dakota, Townley asserted two years
ago that heAhad no interest of any
kind in any property ,of any nature
whatsoever.
At that time, if Waters charge
contained In his suit filed today is
substantiated, TQwnley was engaged
in closing the deal by which the Uni
ted States Sisal Trust was organized,
and by which 1t becomes the holding
corporation owning tract of 22.-
400 acres Of land in Florida.
Made Demands for Payment
Waters asserts in his suit that he
has made frequent demands on
Townley for,the payment of the sal
ary Of 5000 q year, which he as
serts ToWnley promised him under
the terms ;of verbal contract en-
tered into ii about March, 1919.
No part Of the salary has been
paid, Waters charges.
Mr. Waters who has been in Far
go several days, refused this morn
ing to discuss the case.
II am not trying the suit on the
sidewalks" said Mr.. Waters.
Spectacular Step in New Crash
The filing of the suit today fur
nishes probably the most spectacular
step In the sensational smash within
league circles by which j. r. Waters
and j. Wells Brinton, for three years
Townley's personal representative,
became arrayed in opposition to the
clique headed by Townley and VIM.
Lemke. H
According to the complaint filed
spaldins and saifs st f Fargo isiisshs it IS
asserted that Townley began the
purchase of the 22,4OO acre tract of
Florida land in 1916, and that he
has constantly controlled the, pro-
perty since that time.
Today's action on the part of
Waters follows strenuous attempts
on the part of Townley and Lemke,
through the string of newspapers
they control, to discredit Brinton
and Waters.
LID oCIoChS IL AOW uStCIOpo, was
precipitated by demands that Waters
appears to have made on Townley
for the payment of money Waters
charges is due to him for represent
ing Townley in the sisal trust deal.
Had Demanded His Salary
Several letters, written by Waters
to Ray Craig of Fargo, state man
ager of the league, demanding pay
ment to him of certain stated. sums,
are interpretated as referring to
Waters claim for the salaray he al
leges Townley promised him.
Waters became a factor in the
United States Sisal Trust in 1919. He
followed John Hastings and Thomas
Allan Box in the management of the
enterprise. About that same time,
]. w. Brinton appears to have be-
come publicly identified with the
Florida enterprise.
Box and Hastings, it was explain
ed at that timey were eliminated
from the sisal trust because of the
explosion in connection with the no.
torious Valley City bank deal.
Lands Extremely Valuable
According to a report made to the
oLaSO OoAhlA6 Ooo1u NY VI Cs LoL0
tus, state bank examiner, warm de-
fender of Townley, the Florida lands
that Waters charges were purchased
by Townley, are extremely valuable.
LOTUS made a trip to Florida for
the purpose of checking up the en-
terprise when application was made
by the company for permission to
sell stock in North Dakota. ~
In this report, filed under date of
Oct. Z, 1919, Lotus places the area
of the company's holdings at 2.40O
acres. He compares values of this
land with adjoining lands asserting
that half of the land is valuable for
raising tomatoes or cane, and will
have value of 500 an acre and
upwards"
On this basis, the company's land
should be worth $2,24O,OOO, or cut
ting Lotus valuation in two on
the theory that he probably would
be inclined to paint rosy picture
of the Florida lands which Waters
charges are owned by Townley,
would still leave them worth $1,120.
900.
Filled with the company's applica-
tion for the right to sell stock in
this state was q letter from the
chairman OF the agricultural bureau
Of the Miami Chamber of Commerce,
which, in part, follows: / s. .s
I'm regard to the value of the
lands owned by the United States
Sisal Trust, / can say that land adj.
Joining their property is being held
at from $40 to $50 an acre. Their
lands ara cOmDfln0d OF both nine and