Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-09

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-. ~ --=:- NOM n .
the purchase 81. the Scandinavian
American g an 5ank k W to this tins'
= os@Syvell. What Is thxty
fhA.- That was when the transfer
was made and the management of the
bank was taken from MI. Hastings
a turned yer to Mr.. Lemke and
Mr.. Paddock. s
Q. It was taken from Mr.. Hast
tngs and turned over to MI. Lemke
and Mr.. Paddock?
A. Yes, SIR.
Q. Now when did you get that in
formation, Mr.. Brinton?
A. 1 got that Information as q re-
sylt Ct being in contact with them at
a. when. g was this. about?. /
A., This was the time Of the Valley
was under ,nysstis ration by the fed.
!, .. What vas the .odrc;e. Of that
Information /? sS"
Personal Conversations.
A.. BY personal conversation with
Lemke and Townley and Hastings and
Thomas Allen Box, and other league
oWD3oyes, Mr. Wood. That. was also
quite af.big event.. 4. -. ~
,Q.r-Do you mean to saysthat. at this
fimesthe policyaof the Scandinavian
-Banksof Fargo To- in aany
manner controlled by: Mr.. William
iemke, attorney general? "=1 t"s
A. In my opinion It Is directly con-
trolled by him. ,.r% a's.3
K. @. What is that based. ON?
:. A. On personal knowledge Of what
transpired in. the bank at different
times when i. was their employee,
transactions that took place.
!. To Dummy Corpotattons.
@. Now coming on to this para
graph, Mr.. Brinton. You say, IT wish
to state further that to my personal
knowledge that substantially every
dollar Of the state money in h
arriount deposited in the Scandinavia
an-American' bank at. Fargo has been
loaned Ios5 to dummy y corporations ' u ,SEgan 4,
Iemke.' What dummy: corporations
do you refer to? A. Corporations
that were organized by the League
Leaders, whose affairs were directed
by them. in which the officers or in
|corporators did not function.
Q. How is that? A. Corporations
organized by the League leaders for
different purposes in which they used
some league leaders as directors or in
W. Al CIV IAN "A SoA~S
directors or incorporates.
Q. Tell the committee what cor
Iporations you. refer to, the Of
A. The Consumers United
Stores company, Publishers National
Service Bureau; Northwestern Service
Bureau; Courier-News. corporation.
the Nonpartisap Publishing company.
Scandinavian American bank. which
was practically operated the same
way,
@. Just take. a certain one of these.
corporations, Mr.. Brinton-take, for
instance the Publishers National
Service Bureau. Do you know who
organized that?
A. Yes. sir.
O., Who? y
@. Well. do you know who the in
perpetrators were? 3
L., A, Yes. siS :.
9. who were the incorporates?
A. Sam Hazlett OF Fargo, Harry
Dence of Dickinson. and Harry DUN
bar of Turtle Lake or Garrison.
@. You mean to tell us that Mr..
Hazlett did not pay n money into
that corporation?
A. He just signed the articles Of in
corporation.
Q. And Dence,?
A. Yes, sir.
o,,sAnd do you mean to say that
Dunbar did no pay any money for
any stock in it?
"A. No, sir, not at the time 1t was
rofganfzed or FOR a number OF months
afterwards while I had possession'76 f
certain Documents pertaining to It,.
Q. Well who is IN control of that
corporation now. - Z. : -
Says Townley Was 'Big Man."
|. A. Mr.. Lemke, principally. That is
as attorneS for the National Nonpar-
tisan league and as one Of its direc-
tors. I am speaking now Of the tine
f., that, this money, was taken from the
Observation-Disclosures bank and
paid ver into this corporation. I un-
derstand it. has been .re-organized
lately. But I var to say this in JUS
tice to Mr.: Lemke,, I don't know what
Mr., Lemke's interest in it is, except
as attorney for. Mr.. Townley. Town.
ley was the dominating figure. Hired
employees and fired them, and Mr.
Lemke looked after the corporation
records and make the thing legal. al
he put it.
@. How~was the organization of the
Consumers United Stores company?
A. The same way.
@. Who owns the stock in that, d.
you know. If there is any?
A. OF course I couldn't tell yor
now. but of, the same time I an
speaking it was Charley Heck. How
ard Elliot and Norbert O'Leary
Townley's. stenographer. They were
the incorporators. :.
secretary:
A. Yes. SIR
Q. And who was Elliott.
'A..State manager at Fargo OF thu
Nonpartisan league.
@. And who was Heck?
A. An organizer in the league.
@. Now Hazlett referred to in you
makeup OF the Publishers Nationa
Service Bureau, what capacity in tn,
league, If any. did he act?
"A. One Of their newspaper n,en.
G. And what was the business o
Harry Dence?
A. One Of their newspaper. EN-
q, And Harry. Dunbar?
A. would call him a utility man
couldn't Keep track OF them. editor
!npte, Mr., Dunbar Is now state inspcc
q. You. say al, three of those ME,
or. all six of them were in the EN-
ploye OF. the league In one capacity o
a. Yes, for a long time back.
e. $50 Now Mr.. Br1nton, YOU sa:
in tht. communication that Won hay,