The New York herald., 1921-02-18
TOWNLEY'S LEAGUE
NOW FACING CRISIS
North Dakota on Threshold of
Bitter Fight to Settle Fu-
ture of State.
NAY FORCE AN ELECTION
Supporters of Theory Admit
Leaders Duplicity, but
Cling to Ideals.

Special Despatch TO THE New York HERALD.
MINNEAPoILs, Feb. 17.-Efforts at
nom political adjustment of the affairs
of the State Bank OF North Dakota have
failed completely. it was announced In
Minneapolis tonight
Meantime Indications are that the
State soon will be plunged into the most
bitter battle Of the long political STRIFE
between the Non-Partisan League ana
its opponents. in recall election affec'-
ing all State officers,
II. effect the situation has shaped
itself into finish fight between the
league and its enemies. in which the
people of the State will referee. There
is every prospect that the result of tne
battle will be the complete defeat OF tne
Non Partisan League orSapizatioh'
brought about through exposure OF the
duplicity of its leaders.
Meantime, anticipating this condition
league supporters who admit the duplic-
ity Of Townley. Lenike and others VIII
make a desperate effort to save the So
called farmers programme. comprising
elaborate public ownership UNDERTAKINGS
contending the programme never mas
had fair trial and that it has been
betrayed by the men who pledged the
rank and file that II would be carried
out and divorced from politics.
The Non-Partisan League admins
trative organization has choice of three
desperate courses. One is TO STAND TOT
q recall election. with every prospect
that its majority in the Supreme Court
will be overcome and Attorney-Generai
William Lemke and GOV. Frazier un-
seated To. avoid the recall election is
for every member of the Industrial Com
mission to resign,
The other course is TO sanction pas
sage of Legislation introduced to-day
taking finances OF the State out OF the
hands of the league and limiting ex-
penditures for the State mill and eleva-
tor planned to cost approximately
5000, 600. to $4,000 900. One bill pro-
vdes also for the depositing of public
money in private banks. This would
take all the State money from the Bank
of North Dakota and automatically
force its liquidation.
independents assert the situation III
the State is clearly UP to league admin
istrative heads of State affairs. whose
methods of political banking, they say
have resulted in a situation where forced
collections by tho state Bank of NORTH
Dakota, ordered by the Industrial Com
mission. will result In the closing of be-
tween $50 and zoo banks holding be.
tween ss,000,000 and $10,000,000 in re-
deposits of the State Bank and unable
to meet these obligations because of the
financial strlngency.
They held this as sufficient evidence
of mismanagenrent by the leagues po-
litical Industrial Commission to warrant
demands for Its resignation and failing
in that to institute recall proceedings di-
recied at all league State officials.
Meantime Arthur Lesuer, former Non
Partisan Lacquer and now attorney in
st. Paul. in an open letter sent to all the
newspapers of North Dakota to-day, and
disregardlng leaders of all factions. ap-
pealed to the people Of the State TO end
the fight by taking all the State indus
tries out of politics.
Leseur is the bitter enemy of both
Townley and LemlSe. he split the league
leaders when Townley's connection with
the United States sisai trust was devel-
oped 1t was announced to-day that
Leseur will defend j. w. Brinton Town
ley's former private secretary, against
the charges Of criminal libel and per-
jury brought against him in connection
with statements he has published in his
book "A. c. Town,ey. Dreamer Pro-
moter and Boss Politician: His Failure
and Defeat OF the Non-Partisan
League" and charges of embezzlement
Brinton made against LemlSe and i. w.
Cathro, managing director of the Bank
of North Dakota, In his testimony be-
fore the House committee investigating
State industries.