The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-07-21
MANY DISPOSITIONS WILL ALSO
BE BROT INTO NEW PRO.
CEEDINGS BY TRUSTEE
f. b. M'CUTCHEON

e. b. M'CUTCHEON
Bismarck, N. D., July 14.-Direct
testimony of J. w. Brinton and num-
erous dispositions will be presented to
Federal Judge Amidon in Fargo in
the near future with a petition to
have the discharge of A. C.. Townley
from bankruptcy set aside, E. B. Nc
Cutcheon, of Minot, trustee for Town
ley's creditors, said Saturday night
before leaving for Minot McCutch-
con summoned j. w. Brinton before
H. F. O'Hare, referee in bankruptcy,
and recorded his testimony Saturday
afternoon, following Brinton's ac-
quittal Of perjury charge in dis
trict court.
McCutcheon had intended taking
the testimony of j. r. Waters, for
mer manager of the Bank of North
Dakota and who says he and Brinton
are trustees for the United States
Sisal trust for Townley, but Waters
had gone to Minneapolis. McCutcheon
said Waters deposition would be TAX
en- with numerous others of persons
living outside North Dakota.
Florida NEST Egg"
Townley told Brinton in effect, the
latter swore before the referee, that
he knew the Nonpartisan league
could not last forever, and that he
wanted the Florida enterprise as q
nest egg when the league should
blow up.
To finance the scheme he used in
part funds of the Nonpartisan Pub
fishing company of which Brinton
claims Townley is the real owner,
and which We're obtained from North
Dakota farmers as subscription pay
ments for the Nonpartisan Leader,
and other league publications.
According to Brinton's story, he
first heard of the Sisal proposition
late in 1916, when Edwin Lundin, a
Florida land owner attempted to in
terest Townley in the proposition of
acquiring sisal growing property at a
meeting in Fargo. This meeting took
place, Brinton said, at the Gardner
hotel.
Delegated to Study Deal
Early in 1917, Brinton said he was
in Los Angeles, CAL, and received
telegram from Townley asking him to
go to Florida for further investiga-
ton of the sisal proposition. Brinton
made the trip, which took several
weeks, Townley paying the expenses
said the witness.
On his return, Brinton says he
made a report to Townley on the
situation, as result of which
Townley decided to invest in sisal
lands, and did so. At this period
there was invested some $4,000 to
$4,000 by the league boss, who is
accused by Brinton Of using the funds
of the Nonpartisan Publishing COM
pany for the purpose, according to
what Brinton says Townley told him.
In the beginning 100 acres of Flori-
da land were purchased and a sisal
nursery established there.
So far no corporation had been or
ganized, Brinton said, and the deal
was entirely in the hands Of Town
ley personally. This was the situa-
ton in October, 1917, Brinton claims,
when Townley filed his petition in
bankruptcy, but failed to reveal his
ownership Of the Florida land.
Later two companies, a common
law trust and a holding company,
were organized by Townley for the
control Of the property, and J. J.
Hastings put in charge, according, to
Brinton. Townley's plan was that
LuIOUSu UIlC uOlU1llS SOulpoAy ZIG
would control third Of the stock,
personally or through his represen-
tatives, and thus have practical con-
troll Of the company.
The, company was enlarged, ~ p sno
chased under contract over 22,300
acres and went into the sisal bust
interest had face value of about
$4,000, Brinton declared.
Books Declared Changed
Townley's drafts on the Nonparti-
san Publishing company, originally
showed on the books Of that concern,
Brinton said, but later, he was in
formed by M. w. Thatcher of the
Equitable Audit company that the
books had been rewritten, and the
drafts no longer showed.
The publicly known owners Of the
Nonpartisan Publishing company
were merely dummies for Townley,
Brinton declared, and the league boss
was the real owner of the concern at
the time Of the bankruptcy proceed
ings, although his creditors were un-
able to prove this to the satisfaction
of the court.
Only the period Of time covered by
the bankruptcy case was dealt with
in the affidavit made by Brinton. He
had previously testified in the house
Of representatives hearing last win
ter how he and J. r. Waters became
identified with the company.
At the time Of the Valley City
bank scandal early in 1911, Brinton
said Townley became worried for fear
that there would be close examina-
ton Of the affairs Of J. j. Hastings,
and Townley's connection with the
Florida enterprise revealed.
For that reason Townley persuaded
Waters and Brinton to take charge
]$[Z ~ -