The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-02
BRINT0N TELLS
OF LOAN MADE
FOR SISAL co.
49,.
Says he Borrowed $4,000 and
Claims T0wnley Pledged
80 League Credit
-
GIVES DETAILS OF DEAL
Court Adjourns Perjury Trial
Until Next Tuesday After
GIVES DETAILS OF DEAL

Testimony to the effect that A. c
Townley, president Of the Nationa
Nonpartisan League, used the credi
of the league to endorse note fol
$4,000, borrowed for the United States
Sisal Trust. was given in his per
jury trial here today by J. w. Brin
ton.
"A cancelled note for $4,000 on q
local bank, made to United States
Sisal Trust, J. w. Brinton and J. r
Waters, trustees. carried endorse
ment on back, "Guaranteed, National
Nonpartisan League, A. &c. Townley
president" ....e .
NBrinton testified that 1t was neces
sary to make up the shortage in the
Scandinavian American bank at Far
go and that he borrowed this money
at Townley's suggestion to help make
up the shortage BrintOn testified
Townley said that J. J. Hastings, for
merly vice.president of the Scandina
.vian bank, was short about $4,000
and the Sisal Trust, the Florida en-
terprise, Brinton alleges Townley con
trolled, got part of the money.
Take Adjournment
At noon adjournment was taken un'
til 2 p. m, July 5, because Of other
court business to be transa cted this
afternoon and Tuesday morning.
\ The check which Brinton said he
gave to cover up the shortage in the
Scandinavian bank was gone into
thoroughly. He was questioned, as
to- his statement that he gave the
check on the suggestion of William
Lemke and O. E. Lofthus. In his
testimony he said that Lofthus sug
gested it to him in the Fargo bank
He did not say that Lemke directly
,uggested 1T. He said that Lofthus
talked to M. w. Thatcher and Lemke
about 1t after suggesting it to him
and then told him TO do it.. .
Dunbar on Stand :.
Other witnesses during the morn
ing included II. B. Dunbar, now state
license inspector. Pursuing his line
OF proof in an endeavor to show that
many of the league corporations were
but dummy corporations, Counsel LIE
Sueur showed Dunbar the stock rec
ord book Of the Burleigh County
Farmers Press, a league newspaper
showing Dunbar stOckhOlder ant
director. t.'
Dunbar said he never paid for the
stock and he could not say If there
ever was a directors meeting held. :,
Peter l.. Arrhus, who said he wa!
general manager Of the Publisher!
National Service Bureau from Jan. I
1919 until yesterday, when his resig
nation was given but not accepted
was called to the stand to produce
minute books of that organization
He proved an unsatisfactory witnes.
and Counsel LeSueur dismissed hin
saying he would lay the foundation
for what he intended to prove in az
other manner.
Arrhus did divulge that one of tn,
meth IDS of raising money in this con
cern was through the sale Of 81!
memberships, a fact not before made
public.
Stock book and other records o
the Publishers National Service Blu
reau were introduced. They were in
trOduced, Counsel LeSueur said, TO
the purpose of showing that double
set of records was kept by the col
poration and would be inquired int
later ~,
Said He Wrote Minutes
On the witness stand BrintOn sWOr
that no records were made In tn,
minutes book from Feb. 3 to Sept
II, 1919, that w. w. Liggett came t
him, told him he was an officer II
the company and asked him If b
would sign the minutes records o
the board of directors meetings RI
Quired to he held between those date
If Liggett would write them. Brinto
said Liggett wrote them and he sigr
| ed them. The minutes in most case
read: "The time having arrived fo
transaction of business there was n
one present and no business wa
transacted" 3D.
This was another step in LeSueur
! efforts to show that practically all G
the so-called league corporation
were dummy corporations with fe
league leaders really directing thei
activities
One portion of the informatio
charging J. w. Brinton with perjul
today is removed from the case, a
cording to J. J. Weeks, special r:os
cutor for Attorney General Lemke.
Mr.. Weeks told the court during
lawyers battle over the admissibili
of certain evidence that the state hi
offered mo proof Of anything in refe
ence to the Sisal Trust as l recall il
Mr.. Weeks said that the state h;
offered no proof relating to the Sis
Trust in "any way, shape or manne
and said he did not think 1t was
proper matter for the legislative col
mittee to investigate or a proper O
) on which the state could predicate
charge Of perjury.
Among the things contained in
Il signment % of the perjury inform
I ton that Brinton said regarding t
s Sisal Trust was, in answer to que
e ton, I'm Just what manner were y
e brought into this connection with t
), Scandinavian-Amer bank by t
n embezlement" Brinton answere
OUondnue9 on page p