The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-08-24
WATERS LEGAL ACTION
Especial to the Tribune).

Especial to the Tribune).
Fargo, N. d., Aug. 24-Charges that
A. c. Townley, president of the Nom
partisan league, owns controlling in
terest in the United States Sisal trust,
Of Miami, Florida, are obtained in a
suit filed this morning in the Cass
county district court by James R. Wa
ters, former manager 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 (Townleysl
interests, in the Sisal trust Stock in
the company, held in his name, says
Waters actually belongs to Mr.. Town
ley, and is being held in Waters
name in trust.
In the United States district court,
where he testified in bankruptcy
proceedings by which he seeks to
avoid payment of approximately $780,
900 Of debts incurred when he
plunged in flax production in western
North Dakota, Townely asserted two
years ago that he had no interest of
any kind in any property in any ma
ture whatever
Townley's Interests
At that time, if Waters charge con-
tanned in his suit field today, is sub
stantiated, Towney was engaged in
closing the deal by which the United
States Sisal trust was organized, and
by which it becomes the holding cor
poratiOn owning a tract of 22,400
acres of land in Florida.
Waters asserts in his suits that he
has made frequent demands on Town
ley for the payment of the salary of
$4,000 a year which he asserts Town
ley promised him under the terms of
verbal contract entered into in
about March, 1919
No part of the salary has been
paid, Waters charges.
Mr.. Waters, who has been in Fargo
several days, refused this morning
to- discuss the case.
81 am not trying the suit on the
sidewalks,' said Mr.. Waters.
Fight Within League
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 ]. Wells Brinton, for three years
Townley's personal representative,
became arrayed in opposition to the
clique headed by Townley and VIM.
Lemke. ...,, --,-..,
According to the complaint filed by
Waters through his attorneys, Spald-
ing and Shure, of Fargo, it is asserted
that TOwnley began the purchase OF
the 22,4O0 acre tract in Florida land
in 1916, and that he has constantly
controlled the property since that
time
Today's action on the part of Wa
ters follows spectacular attempts on
the part of Townley, through the
newspapers they control, to discredit
BrintOn and Waters.
Demand For Money
This attack, it now develops, was
precipitated by demands that, Waters
appears to have made on Townley
for the payment of money Waters
charges due to him for representing
Townley in the Sisal Trust deal.
Several letters, written by Waters
to Ray Craig, state manager of the
league, demanding payment to him
OF certain stated sums are interpret
ed as preferring to Waters claim for
the salary he alleges Townley prom
ised him.
Waters became a factor in the Unit
ed 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 publuicly identified with the
Florida enterprise.
Bank Explosion
Box and Hastings, it was explained
at the time, were eliminated from
the Sisal trust because of the ex-
plosion in connection with the notori-
ous Valley City bank deal.
According to report made to the
state banking board by O. E. Lofthus,
state bank examiner, warm defend
er OF Townley, the Florida lands that
Waters charges were purchased by
ToWnley, are extremely valuable.
Lofthus made trip to Florida
for the purpose of checking up the
enterprise when application was made
by the company for permission to