The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-07
TESTIMONY IN
BRINT0N CASE
is COMPLETED
Arguments and Judges Charge
to Jury Will Follow <
WATERS ON THE STAND
Former Manager of State Bank
Makes Statements and
Lemke Denies Them

UCAOlC tAC JUL AA tAO oAAASoA S"oS
this afternoon. Mr.. Weeks and
Arthur LeSueur, defense counsel,
will argue the case. No time
limit was set on their speeches.
Weeks told the jury in opening his
address that if the jury found the
defendant had committed perjury
on any one of the twenty-four as
signments in the information it
was the jury's duty to find him
guilty. In beginning the phase of
his argument involving the Bank
Of North Dakota he read the rules
of the bank showing it's policy.
The Brinton perjury trial neared it's
close today when testimony was
completed and preparation: made for
arguments of the case. The defense
rested its case at 9:15 a. IN, and the
state closed its rebuttal testimony
at II o'clock, when adjournment
was taken until afternoon.
The defense closed its testimony
with additional statements by J. r.
Waters, former manager of the Bank
of North Dakota, and the rebuttai
witnesses of the state were Attorney.
General William Lemke and H. A.
Paddock.
Lemke denied flatly a statement
Waters said he had made to the effect
that, after being warned in January
1920, of the condition of the Scand.
inavian.American bank, he said: "By
God, we'll keep that bank open If
1t takes every dollar of public funds
In the state of North Dakota"
When Waters was on the stand he
was pressed for details by Special
Prosecutor Weeks, following his tes.
timony regarding the Lemke state
ment. Waters said that the conver-
sation was about collateral Of the
Scandinavian bank and that Lemke
said that he thought it would work
out, but said he could not give
many details. Waters asserted that
L. P. McAneny told him Lemke made
the same statement to him.
HI A. Paddock, on the witness
stand, denied that he was ever in
charge of the Scandinavian bank,
saying that he was in the bank for a
time in charge of collection of col
lateral the Consumers Stores COM
pany had placed in the bank, being
In the store company employ.
Mr.. Lemke admitted there was dis
cussion over the condition of the
Scandinavian-American bank in the
Governors office, which he thought
was before the June primary. He
said he had replied to Waters asser-
tions that he thought Waters was
unduly exercised about the bank and
said that he thought Waters was in
fluenced as prospective purchaser
who wanted to squeeze stockholders
out.
Waters on Stand.
j. r. Waters, former manager of the
Bank of North Dakota, was one of the
defense witnesses yesterday afternoon.
Waters detailed his relations with the
Bank of North Dakota and his discus
sions with leaders concerning the con-
duct of the bank. Waters testified OF
his differences with F. w. Cathro, di e.
rector-general OF the bank, said they
were personal friends and that their
differences were solely as to the pol
icy of the bank. AS evidence of their
personal relationship Cathro and Wat
ers sat together outside the court
house after court adjourned last even
ing holding conversation.
Waters reiterated his former state
ments that he had warned Governor
Frazier in January, 1920, about the
condition of the Scandinavian-Ameri
can, bank, which he said was bad, and
that he told the governor that 'if that
bank ever blows up don't say Jim
Waters never warned you
Cathro, Waters said, was picked for
the job Of helping organize the bank
by William Lemke. He said that ne
wanted E. j. Schoregge, Of Williston,
member of the guaranty fund COM
mission, to help organize the bank.
Townley, he said, wanted to send a
man named Swenson from Mime
apolis.
When he kicked on his salary Wat
ers said Townley told him: you've
got no kick coming; you are getting
$4,000 year from the bank and $4,000
from the Sisal Trust"
Regarding Guaranty Law.
Discussing the method the Bank OF
North Dakota proposed to use of rely.
ing on deposits under the guaranty OF
deposits law instead of requiring col.
lateral from banks, or in case collater-
al was obtained, Waters said that hc
had opposed it, because as bank ex.
aminer he had held that if collateral
was given that made it loss and nc
recovery could be claimed under the
guaranty law.
Testifying regarding the s330,OOO o.
paper brought to the Bank of Nortt
Dakota from the Scandinavian-Amer
can bank Waters declared that he Oh
jected to this collateral, except small
pile which he separated, being receiy
ed in the bank. He said that he dit
tell Brinton that if that paper wer,
allowed to come in the Bank of Nortl
Dakota he would resign as manage
and make the deal public.
The first chimney was built IL