Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-18
@. BY the way, when was this
United sisal Trust Incorporated. II

you know:
"A. 1t is a common law trust.
A Common Trust.
Q: A common law trust company?
A. Yes.
@. When was the trust entered in
to?
A. That was entered into after MIR.
Waters and I went to Miami. That
Is. the deal was pending and there
not executed. under the agreement
between Mr.. T6wnley and Hastings,
and we went to some attorney that
had acted for Mr.. Townley and Mr..
Hastings and he redrew the papers
and then after the additional sums
were paid-the deed was in escrow-
1t was delivered to us<and accepted
nnd then we filed the aeticles of as
Socsation or trust agreement, and
Q. What year?
q. Where were they filed?
A. In Dade county, Florida.
@. The execution of the papers
was on the same dag this O was
executed?
A. That was one Of the notes we
took care OF at the time we organ
lied because that was pending.
@. Then Mr.. Brinton. the inference,
to be drawn from tha, would be that
on January 20, 1919, when Mr.. Hast
ings signed the. United States Sisal
Trust by J. j. Hastings, trustee, that
as u matter of fact. a corporation or
common law trust had not been en-
tered into at that time?
A. Well. in justice to Mr.. Hast
ines. it was q proDcse: company that
was about to be entered into.
Q. Committees Exhibit IS il as
follows:
THE Bank of Bay Biscayne, Of
Miami, Fla. 100000
Miami. Fla. April Z, 1919:
= November /. 1919, after date we
promise to Pay to the order of J. r.
Waters and j. W. Brinton. Nine
Thousand Dollars. at the Bank OF
! value received. with interest after ma
turity at the rate Of ten per cent per
'annum until paid. The drawers and
cndorsers sevcraliy waive present
ment for payment. protest and notice
OF protest II non-paynlent OF this
note. and should it become necessary
to collect this note through an attor-
curity, or %endorser on this note.
hereby agrees to pay all costs Of each
collection, including a reasonable at
torney.s fec.
United States Sisal Trust.
J. r. Waters, president.
AS trustee, but no personally, on
both checks appears to be written
Gen. Mgr" I that mean
general manager?
A. Yes. sir.
@. What were YOU general man.
aser Of?
A. Mr.. Townley's interest in that
Q. In the sisal Trust?
"A. Yes, sir. but I used that form OF
check in all Mr.. .Townley's activities
that I worked for him in the organi'
zation of the Publishers National
Service Bureau, the Sisal enterprise
company.
@. You also used it i'll connection
with your management Of his affairs
! in the Sisal Trust?
A. Yes, sir.
Farmers Helped.
@. Now one OF these things jus'
leads to something else, Mr.. Brinton
After you gave Mr.. Lofthus thi!
check on October 20, you were II
then go out mo raise the money Sc
that finally you smight make thu
to where you got the money?
A. l went to Mr.. Townley's-sonl'
friends of Mr.. Towrley's up In Walsh
county. +
o. Back to the farmer, ch?
q. Let's see who the friends Of MI
fTownley up in Walsh county were
Who were they?
A.. Dan" Sutherland.
q. Have you got any evidence o
this?
A. I have the documents her
with me. They cover the amour
raised to make that check good.
@. Mr.. Brinton, these papers
which you ave handed to me are tn
documents that you referred to tina
indicate the source Of the financia
which to take care OF the check tina
you had previously given to Mr.. Loft
hus?
A. Yes. sir. 1 was in the process
Of raising this money at the time
! was informed they wanted the chez
!, issued to them. and this deal wa
consummated after the check was is
sued. that is, it was closed.
&. These deals with these variou
persons mentioned here. you say wa
closed after the check was given t
!, Lofthus? They seem to be, dated
> Secured Notes.
A.. Well. these notes were secure
!, prior to my going to the Scandina
: yian-American bank. I secured tn
! notes from these farmers and the
hypothetical the notes to raise tn
!. money.
@. Afterwards?
A.. Yes. sir.
And these are the receipts 70
Z the Sisal stock which I put up wit
. them as collateral.
. @. One appears to be Ole. Fansk
: Of Edinburg. and he got certificate
a.. AS. and. 46 and At. for $1,000
4 worth of stock in the u. S. Siss
Trust. as security for a $4,000 loar
: due November /, 1920, and the nes
I appears to be a receipt TO J. w. Brir
T. ton certificates Of shares in the U.
: Sisal Trust for 10000, represente
, by certificates No. L.. IS, and 1874, il
sued or assigned to j.. r. Waters, an
assigned by him in blank as securit
for a $4,000 loan from William Max
we'll. and Fred Close. of Conwa,
North Dakota. Another one signe
. by Dan Sutherland Of Conway, Mort
Dakota. where he acknowledges RI
eeipt of. certificate So for s12,5ov {
y share in the u. S. Slsal Trust as 81
ourity for a $4,000 loan Of even dat,
receipt being given to ]. w. Brinto,
signed Dan Sutherland. Another on
from Edinburg. n. D., received Of
w. Brinton. certificate "a for rs
shares in the y: S. sisal Trust as s.
h curity for $1,000 loan due Nov.
1920. by Henning Gunhus, a total
e $4,000?
4. Yes: sir.