Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-02

= osAANS NvAseDNS GAkU 1bC S8Aus
"about one hundred thousand dol
lars"
@. What did you say to that?
A. I said, "My God, this bank
hosn't got a hundred thousand dol
lars Of anybody's money, except what
is redepositcd where it belongs"
q. What did he say then?
A. He said, ''Wcll, I will he UP in
. day or SO, and / will see you. :.
Q. Did he come up? y
A.. Yes, SIR. -
+ q. Did you see him?
A.. Yes, sir.
q. Where?
l. A. In the Mckenzie hotel.
@. Who was there?
A. There was no one there when I
+; first went. up to see him.
Q. Later on, Mr.. Cathro am in ?
A.. Yes, sir.
@. Was there any talk about. send
ing money to the scandinavian-Amer-
lean bank?
@. In the presence of you, Town
ley and Cathro?
A.. Yes, sir.
y. What was said?
A.. Mr.. Cathro took up the daily
balance sheet and showed him where
this money was Eedeposited and ex-
planned to him it was pretty hard to
get a-hold Of hundred thousand
dollars. The Bank Of North Dakota
didn't have that much available. Then
while they were engaged in this con-
~versation, I got up and went out. !,
O.. Did you talk to Mr.. Cathro
about it after that?
A.. 1 did the next day.
Q. Where?
A. Down in the bank.
sCathro Decided.
O. What did he say?
A.. y said, "well. Fred, how did you
come ECU with the Big Chief last
night?H and he said, "well. I am going
to send them down some money, but
I am not going to send them q hun
dred thousand dollars"
O.. Well, did you have any-we will
call them invitations-from anybody
else to send money down to that bank?
A. Oh, yes, we always had a stand
ing invitation from Mr.. Hagen.
Q. Well, did Mr.. Hagen just leave
that a standing invitation. or did he
sort Of renew the invitation from time
to time 70 1t wouldn't get stale?
A. He kept 1t green in our memory
all the time.
@. This Hagan you refer to, who
is he?
A. He was president of the Scan
dinavian-Ameriean bank.
Q. You, yourself, never saw the
letter from p. R. Sherman, the cash
Ter, to Mr.. A. c. .Townley, dated May
&c, 1919?
A. No, sir.
@. You have read OF that letter be-
Ing discussed in the newspapers?
A.. Yes, sir.
@. And you have learned of the
fact that Mr.. LANCER obtained that
letter and had a photograph taken OF
it?
l. A. Yes, sir. +
Q. 1t has become public property
in the state, so to refresh your mem
ory on it. I will read it to you, and ]
want to ask you a question or SO about
It.
sherman's Letter.
EXHIBIT 124.
May 26th, 1919.
Mr.. A. c. Townley, City.
Dear Mr.. Townlev-Agreeable with
your request, to inform you. when we
were in need Of funds I desire to state
we shall be called upon to pay out In
the next thirty days about $4,000
The money which we obtained from
Duluth and Minneapolis has been used
up, and there has heen a rapid de.
~ S00O AA bAAVEhSOoAASA 0AA OoAoAANCo
We are running from day to day with
very close reserves and anticipate fur.
ther Withdrawals. which will necessi.
tate funds to the extent of probably
100000 to $25o,ooo between now and
harvest ~ ' = 'H /,
Mr.. Hagan tells me you were to gel
us 100000 in addition to the state
deposits which we received, and urge
that you give this your immediate at.
! fnrffnn and ouo}af s1yo ntlv ... ".
We are getting in funds from DIFF,
ferent sources daily, but some are de.
layed SO there are no large amount
coming to us al this season. Our onl,
source of credit is the Bank Of Com,
merce & Savings, Duluth, and Mer
camille State Bank, Minneapolis. botl
being small and limited in capacity t.
accommodate. We cannot expect q dol
lar of help from larger banks. and ~,
cannot tel. from day to day when on
reserve will be wiped out.
The fact that We have assisted thu
League and the Consumers Unitet
Stores Company to an amount o
5000, 900 naturally depletes our avail
able that much. While we are gladlt
be Of assistance, the time has aErtvel
when we must have assistance If "
difficulty.
Awaiting your early consideration
in this matter, and trusting that 70,
will give this your earnest attention
we beg to remain, very truly yours
(Signed) p. r. sherman.1
! Cashier.
Townley Was Helpful
q. What was P. r. Sherman cash
Ter Of?
A. The Scandinavian : American
lBAnk ak-Fargo.
Q. We'll, now. Mr.. Waters, from
IyouE connection with-Mr. Townley an,
the conversation you had with hin
during this period, would you ray. q
Ia conclusion that Mr.. Townley wa
giving all the assistance that he couf,
tundsr the circumstances to get none.
down to the Observation-Disclosures,
! think he Wa. &
q. He was ~appasently, you Woull
tlmy. rs4her atteytptfnt TO carry o0
I 1 0yffh ufVa the koYyna ~ fkSaSs1nf<Ar ~