Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-10

a. va my return Q Miami, flOr.
ida, in the spring OF 1920.
Q. Tell Us what you said.
"A. Townley : said he didn't know
anything about tho banking business
n told me to go up and talk to the
boys In North. Dakota.
9. Did you?
A., Yes.
9. To whom did you go to-?
Al first went to the bank and
talked to J~ohannsen,. I believe.
Q. Then who?
A.. I went to the governor.
Explained To Governor.
Q.pDid you explain these transac-'
tons. e. you understood them. to the
A. Yes. very thoroughly and in de-
tail. -. ~ =.
Q. And when was that nov, Mr..
Brhton,'' with reference to the time
OF your falling out with the league?
A.. Well, I had numerous fallings
out. You mean my public falling out?
G.. Yes. your Anal? r
A. Well, that wAs during the lang
er campaign.
9. The primary campaign?
A.. Yes. hiA
Q. And you say you explained these
transactions TO the governor?
A. Yes SIR. 81.
9. Did you give the governor the
benefit Of all the information that
you nave given lis?
.OffeeeL Assistance.
A.. Well, I stated in a long COM
m~unication a few items and then Of
Tered, II he wished to take it up and
needed my assistance in getting other
information. to be subject to his call
any time he wanted me.
@. Did he call you?
A.. No; he called me through the
newspapers?
g.. Well. have you any information,
Mr.. B%rinton, that would indicate that
q deposit had been sent to the, Mer-
camille. State bank in Minneapolis as
q reward for the benefits tho league
had received from. that bank?
A. No. L don't think I could so that
far, but in my investigation of these
outside deposits that l complained of
this deposit OF 5000 was laying
man in this bank.
@. You don't know how long it had
been there?
A. Well, no, I couldn't say posi-
lively. ..
Q. You say laying dormant. What
do you mean, by that?
A. Well, it was there for a long
time at the anne. amount, except with
the interest added to it. The 8
this particular item was discussed was
because l complained that this money
was needed in North Dakota and
wasn't being used down there because
l think it was Mr.. Johannsen that told
me h money was needed down there
out to him that this money was not
needed in that bank for clearing pur-
poses and that the state was losing
2 per cent annually, where the North
Dakota banks would pay 4-per 9 N
n that was one of the items of about
ten million dollars that was down in
these banks at that time or shortly
prior to the time of the complaint.
@. Mr.. Brinton, you told us yester-
day how many Of these organizations
that are connected up with the league
that Mr.. Lemke was connected with.
NowsI would like to inquire from you
as to how many yof were connected
with?
Personal Enpaoye.
A.. Well. l acted in the capacity of
Mr.. 1Townley's personal employ, the
same as Mr.. Lemke acted as his per-
sonal attorney, except that Lemke
had the corporation records and I
didn't have them.
~ Organized Them.
Q. Well. as Mr.. Townley's personal
employe, did you have anything to do
with the Consumers United Stores
company? A. I organized it for him.
ton, that at the time that you were
organizing the Consumers United
Stores company that you were acting
directly as h employe Of Mr.. Town
ley? A. I was.
9. You were connected also weren't
you with the Publishers National Serv-
ice Bureaus. A.. I organized that for
Q. You mean in the organization of
that that you acted as his employer?
A. YessHir. $50 ~ So f--"& ~
g. wen, how many Of those cor
porations that you referred to yester-
day were you connected with. Mr..
ley1 II II
A. Well. I had at different times
work to do that probably would be
strictly and legally termed as working
for the different corporations or may
be all of them, but my only official
capacity as n Of the dummy organ
izers or operators Of one Of these
dummy corporations was the Con-
sumers United Stores company and
the Publishers National Service Blu
reau. and the Northwestern Service
Bureau, the two. newspaper organiza-
tons and Stores company.
Q. This stock in the Stores company,
lie Mr.. Townley have any stock in
that? A. No. his attorney held it. =
Q. How much stock was issued in
that at the time o were connected
with it? A.. Ten shares.
@. Do you remember now, Mr.. Brin-
ton. who held the ten shares? A. I do.
Well. they were originally issued to the
incorporators.
@. The whole ten? A. No. three.
q HnrU fnnonv inanrr4Hat4rnS a
g. And who were the incorporators?
A.. Norbert O'Learv-
TownEey's Stcnoerapber.
Q. Norbert O'Leary, that. is a good
name. What wa his business, Mr..
Brinton ? A. He was Townley's private
stenographer.
Well. who were the other two? A.
Charley Heck.
Q. Who was Mr.. Heck? A. He was
organizer for the league, M Of the
employees.
8. Who was the other! A. Howard
Elliott. -
8. And who was Mr.. Howard Ell
A. He was manager of the Fargo
oMcs--that is state manager Of the
Nonp2rtisan league, At Fargo. -
@. Now these men-was there any
stock issued to them? A. Well. 1t waa
issued And o delivered, but Just is
sued and then transferred.
-Q. Who was it transferred to? A.
The treasurer, Mr.. johnson, one
share: Mr.. Hastings, one share, ana
one, share to myself.
Q. These other incofporators, the
stock that was Issued to them was
never even delivered to them?
A.. NO. these particular men didn't