Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-02-10
BRIN|T0N RESUMES !
TESTIMONY BEFcl
HOUSE Gov Zee
Declares He Was Told by
Waters That Cathro Was
Guilty Of Embezzlement-
Liggett Accused Waters
and Waters Accused Cath

Bismarck, Feb. 9.-(By Associat-
ed Press) j. w. Brinton, formerly
private secretary of A. C. Townley,
president Of the National Nonparti-
san League, continued his testimony
today before the North Dakota house
: committee Investigating the recent
audit of state owned industries.
J. r. Waters, former manager Of
the Bank Of North Dakota, had in
formed Brinton, the latter testified,
that II. W. Cathro, present director
and general manager of the bank
"was guilty of embezzlement
'YOu charge Mr.. Cathro with en-
bezzlement'', John Sullivan the COM
mittee's attorney . asked. please
explain.
II also had information from Wal
ter Liggett, league employee of
embezzlement taking place in the
Bank of North Dakota, ''Brinton went
on. "Liggett said he knew EN-
bezzlement was taking place. Lig-
gett was accusing Waters and Waters
accusing Cathro".
Bismarck. N. d., Febr. 9.-The as
sertion OF ]. w. Brinton, that at the
suggestion Of William Lemke and o.
q. Lofthus he had given check for
about $$11,000 to the Merchantile
State bank of Minneapolis was not
the only startling assertion made by
the former League leader before the
house investigating committee.
Brinton testified that Lemke and
Lcfthus knew he did not have that
amount of money in the Minneapolis
bank, but wished to have the check
appear in the cash items of the
Scandinavian American bank at Far
go, that showing might be made to
the supreme court of the state that
the bank was in good shape, so that
it could be reopened following the
raid of Bill LANCER" on the institu-
tion. He further testified that That
cher, q certified public accountant,
was present at the time the arrange
ment was made and undoubtedly
knew of it.
Brinton in his testimony charged
that there had been misappropria-
tion and embezzlement OF the funds
CT the Bank of North Dakota III the
fact that the funds of the institution
North Dakota to the Scandinavian
American bank in Fargo, and that
the funds were used for political pur-
poses.
He testified that he had been
brought into touch with the situation
by being called to Fargo by A. G.
Townley, president of the league,
Lemke or some other league leader
to run down and care for a shortage
Of nearly $4,000 caused by some
former employe of the Fargo bank
High Lights of Brinton's Testimony
Some of the high lights of Drin-
tons testimony follows:
That $360,000 was deposited in
Fargo during the first 40 days the
the Scandinavian American bank in
Bank of North Dakota was in opera
ton, and that checks drawn on the
bank totaled about $4,000, leaving
a balance of about $280,0OO by the
middle Of September, 1919, less than
two months after the Bank OF North
Dakota was organized.
That his information on this point
was obtained from A.. E. Snyder,
former transit manager of the Bank
OF North Dakota, and J. r. Waters,
former manager, and he produced a
letter written by Snyder on Oct. 3,
1919, to Mr.. Waters, detailing the
manner in which moneys were de-
posted in the Fargo bank. Deposits,
in one instance, Were declared by
Snyder to havesi9en made as the re-
suit of Instructions from Cathro, af-
ter telephone conversation with H.
j. Hagen, former president of the
Fargo bank.
That the Fargo bank is .'controll-
ed and conducted by league leaders,
that it was bought to aid in the fin
ancing of league enterprises; that
il is partly owned by them and is
4 controlled by them; that control
was bought by John Hastings in 1917
after conferences in st. Paul, in
which Townley, Lemke, Brinton and
Hastings participated; that the
league was having difficulty at that
! time in financing it's paper, and
bought the bank to remedy that sit.
tuation. .a
That there had been, only one
change in the Fargo banks manage
ment, that being on the occasion of
Hastings retirement and the ascen-
dency of Lemke and II. A. Paddock,
i now secretary of the industrial COM
mission. The witness said he be-
lieved today that Lemke still con-
trolls the Bank; that he had personal
knowledge OF the money being loan
ed to dummy league corporal tionsn
1 organized by Lemke and that direc-.
tors OF these dummy corporations
held no stock and did not function
4 IN their capacity as directors. /, ,5f7
That these dummy corr tions,
organized to promote the Nonparti-8
san league interests; Sin c1ude their
Consumers, United Stores company,
] the Publishers National Service Bur-
eau, the Northwest Service bureau v
4 the Fargo Courie NeWs,s the !ionpar-3
tisan Publishing company the:
League exc change, s and thAt those.
corpora tionss sbsns tad {ro arnth pol