Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-08

A FORKS H.
ger, and .Cathro, as director general
Of the Bank of North Dnhota.
waters and I thought 1T was a
'damnfool' policy" said Brinton, and
Waters told To~nley he was putting
him up against the p~enitentiary:"
1t was agreed that Waters should
be manager of the bank, Brinton said,
and later Townley. told him that Ca
thro was to be director general. When
Brinton expressed surprise at this ar
~langement, Townley said, he declares.
I'VE want Cathro in the bank because
he's agreed to SAIL"
Lemke knew Of his arrangement,
Brinton declared.
From Official Records.
In this connection Mr.. Brinton's tes-
timony was as follows, the quotations
being from the official records Of the
hearing:
Brinton said: "In my conversation
with Mr.. Townley, I learned that Mr..
Townley was very anxious to have
Mr.. C,athro in the bank and l referred
to a certain position that the league
had taken challenging Mr.. Cathro's
position as a good Lacquer. l Will ad-
nit to- the committee that l played
politics When l was in the league. l
am not ashamed Of it, for l have been
in politics quite a while. l can't help
it.. r.
"Mr. Townley made the expression:
We want Mr.. Cathro in that bank be-
cause he has agreed to-sail-with
u.s. and of course in the conversation
that followed he explained to me that
they were going to use that bank to
assist in financing the National Non
partisan league"
Mr.. Shipley: What bank?"
Continual dangling.
Brinton: 1.-The Bank of North Da-
kota. and that was where the row
started, and there was continual jang-
ling between Mr.. Waters and | on one
side, and. Mr.. Lemke and Mr.. Townley
and, l presume, Mr.. Cathro on the
other, as to the use % this money in
the bank, Inc they being in control
of the national committee; why they
dominated it, and Mr.. Lemke being
the attorney of the industrial COM
mission, he represented the industrial
commission and we simply backed
out"
Mr.. Freeman: do o make the
statement thai this was one of the de-
terTnining factors that went into the
appointment of Mr.. Waters and Mr.,
Cathro as officers of the bank, tina,
they would in some lend the
theory of their position to these trans
%actions?"
Mr.. Brinton: well, that is a doubt
full question. l say that this controver.
sy and row in the Bank of North Da-
kota was because of that determined
policy on the part of league leaders
1 am not saying that MIR. Cathro did
do it; but I assume, as an intelligent
man, that he agreed to it. Because he
is still in the bank and Mr.. Waters is
out Of the bank, and the Scandinavian
American bank has some $450,OO0 OF
public funds and 1 van to say further
that 1 have, charged Mr.. Lemke ane
Mr.. Cathro with embezzlement ant
they haven't manhood enough to pull
me into court and l charge them to-
day"
Mr.. Chairman: "Just a moment
Mr.. Brinton."
Mr.. Brinton: well, he is chdlleng
ing nv correctness of taking that pc
sition."
MIR. Brinton: II have nc objection
to anyone asking me questions, but
(don't like to have any one %insinuat'
that 1 was in any kind of an arrange
ment to defraud the state of Nortl
|. Dakota"
PREGNANT: "Well, 1 apologize, 1 jus
wish to arrive at the facts"
Brinton: Il want to say that / hav
brought enough trouble on myself OF
account Of this row. 1 have bee
called a crook and if I a stayed GU
of it, 1 probably could have got a goo
appointment. 1 might even nave gotte
a house."
Questioned by Sullivan.
Sullivan: Now o have indicate
that Townley himself had told 70
that Cathro a agreed to sail on hi
policy you hav old US about?"
Brinton: Yes, sir"
Now do you mean to say tina NJ
Lemke. the attorney general of tn;
safe, knew of that policy and approx
ed it.
Not only knew of it and approve
of it, but he participated in it and a6
vised it,"
Resume Examination.
After a recess Of a few minute
Brinton's examination was resumed
Sullivan: do o want this CON
mittee to understand that there Z
misrepresentation and embezzleme
in the Bank of North Dakota?"
Brinton: mo, not in the Bank
North Dakota. The funds were take
from the Bank of North Dakota an
taken to the private bank of Fare
and the misrepresentation and embe:
element took place there
lCllS y NllOIIlSCs
Brinton then told how a shortae
of $4,000 or $1,000 had been di
covered on the books of the Scand
navian American bank and that tt
money had been invested in the sis
trust: that when this shortage W;
discovered it was insisted that Il
sisal trust make this good. An a
rangement al that time was mac
whereby the shortage was carried {
the books of the bank as a loan to tt
= esisal trust. After the LANCER raid
the Scandinavian American bank, M
Brinton testified hat he was called
Fargo for a conference with Tow
: ley, Lofthus and Lemke when it w;
i arranged that this obligation shou
- be taken up at once.
< Sullivan: Was there anything ell
> said at that conference"
Brinton: We'll. the result of o.
conference was that I informed NJ
- Lemke and Mr.. Lofthus that II
company couldn't take it up on SUI
- short notice. They would have to 81
y us some time. And it was arranged
such a that it was taken
and ! presume marked off the books
Sullivan: well. what manner
you refer to? Just what was sa
there hat would ind:' ate the ma
ner?"