Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-19
TRIES CONTINUALLY
TO EVADE QUESTIONS
PUT BY EXAMINER
Interesting Light Thrown
On League Transactions
At Valley City
Thatcher Forced to Make
Several Admissions After
Much Squirming'
(By staff CORRESPONDENTS }

(By Staff Correspondent
Bismarck, N. d., Feb. I'm. w.
Thatcher, president of the Equitable
Audit company. put himself still deep
er into the hole before the house au-
dit committee today.
He admitted that although in his
affidavit to the supreme court regard
ing the Scandinavian American bank
of Fargo he had condemned as mis-
statement the report OF P. T.. Haldor-
son, state bank examiner, that the
Consumers Stores company had Sc
cured excess loans from the Fargo
bank, amounting in all to $17O.0OO,
claiming that the loans were actually
made to several individuals secured
by farmers paper. His own opinion
was that the money on these accom-
mcdation notes led to the Consumers
Stores company.
Sheds Other Light.
In addition to Mr.. Thatcher's testi-
money some interesting lights were
thrown on some Of the Nonpartisan
leagues transactions around Valley
City when it was shown that the
( league obtained $4,000 through the
Security National bank of Valley City,
on farmers notes, and officers of the
bank testified that they had under
stood an agreement was made by
which the Bank of North Dakota
should place sufficient funds in the
Valley City bank to cover the notes
until they were paid.
S. Ellis, vice president of the Sc
curity National bank of Valley CITY,
testified that some farmers of Barnes
county, l.. Noltemire. 6. N. Rasmus-
sen, j. E.. Staube, William Olson,
Nn1tnmtTn
had given notes for $2,50o each, and
had been issued certificates of deposit
on the bank for these amounts The
certificates were produced and read
into the record as evidence. They
showed that they had all been redis-
counted at other banks.
ELLIS said that he had asked James
Grady, president Of the Security Ma
tional bank, IN regard to these loan'
and that Grady .had to1a ,aa n.ae .asa
receive money from the Bank Cl
North Dakota In. consideration Of
these loans being made:
Lee Cowell, chairman Of the board
of directors of the Security Nationa
bank, was even more spectre in MI
testimony. He said that he had beer
surprised when these loans were
made, and had questioned President
Grady about them.
Grady said, Cowell testified, tha
A. C. Townley had been in Valley Cit,
trying to negotiate the notes at varl
GUS banks of Valley City. but hae
been unable to do so until he. Grady
agreed to take them providing none!
came from the Bank, OF North Da
kota to the Valley City institution.
Cowell's Understanding.
In other words. Townley agreed
to have state money kept in the Sc
curity National bank until the note
we're paid?" asked Francis Murphy
attorney for the committee, and Co
we'll said that was his understanding
of the matter. The Bank of Nortl
Dakota had so deposited funds in tn
Valley City bank, he said, and that IN
stitution had paid 1 per cent interes
on them and reloaned same at ~ pc
cent. "A profitable transaction re
marked Mr. Murphy.
]. E. Staube. the maker OF one
the notes, was called to the stand
He declared that he had not receive'
any of the proceeds of the $2.500 not
that he had given, but that on the Ger
lificate of deposit being issued h
had simply endorsed it and given
to Mr.. Townley for use in the leagu
campaign. He said that l,oao ma
been paid on the note by the Nonpar
tisan league, but that he had pal
the remaining 81 500, due. himself.
is understood that all of these note
have recently been settled on tn
same bass.
Staube declared his conviction tina
he would get his money back fror
some one. All of the Valley City wit
nesses have been sHbpoenaed to ap
wear before the senate committee an
win probably go on the witness stan
1 this afternoon.
Thatcher Again Called. -
Following the investigation Of thl
affair. Mr.. Thatcher was again calle
~ the witness stand. The first ques
lions of Mr.. Murphy were directe
avow to compelling the witness to ac
knowledge his responsibility for tn
affidavit, made to the supreme coul
over his signature, and that OF ..
l.ofthus at the same time of the Scar
.dinavian- American bank litigation
which he finally did.
After much squirming he also ad
mitted that in his opinion the aft
uayit made a favorable showing fo
the Scandinavian-Americ bank. an
that he knew it was to be used befor
the supreme court at the time h
signed It,
Now Mr.. Thatcher" said Attorne
Murphy. ."in your affidavit you attac
the previous report made by Mr.. Ha
dorson that in excess loan amountin
TO $4,000 was made to the Cor
sumers' United Stores company. Yo
say this is misstatement as tn
loans are made to several individua
,and secured by farmers notes. No
as matter Of fact you knew, didn
YOU. that all Of the makers Of the.
notes were connected with the Cor
sumers' Stores company. and thu
money went to that company?'
Thatcher tried to evade a direct al
swer. saying that the notes were a.
commodation paper. "Of course the
we're" declared Murphy and presse
for an answer.