The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-04-28
Senator B. F. Baker.
+. J. Murphy Debate
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luton transferred, transformed and
diverted $1,20O,O00 of public money
to mills and elevators, to homes for
| William Lemke and John N. Hogan,
| the formers home being valued at
! $4,000 to $4,000 by expert apprais-
ers, and invested in what Atty. John
Sullivan of Mandan calls permanent
/ investments.
"And remember" the speaker de-
clared with emphasis, "school teach
ers of North Dakota cannot get money
yet it goes for these other purposes"
Following up the charge that public
money had been transferred illegally,
the speaker laid emphasis on the fact
that between $45O,OO0 and 100000
had been loaned to the Scandinavian
American bank Of Fargo, now insol-
vent, and these loans were made in
face of the fact that the institution
had been closed but short time be-
fore.
LOfthus Scored
In reference to the Scandinavian
American bank Of Fargo, the speaker
said the blacklist pages in the history
of the state tell of the connection
State Bank Examiner o. E. Lofthus
and Myron w. Thatcher, the leagues
expert auditor, with that institution.
He declared these two men testified
under oath in affidavits presented to
the supreme court, when the effort
was made to reopen the Fargo bank
after it was closed by Atty. General
William LANCER, that the Scandinav-
ian-American bank had larger legal
reserve than demanded by law, yet
when they figured it out while tes-
tifying before the house investigating
committee it developed that the legal
reserve Of the bank was thousands of
dollars under no reserve at all.
The speaker declared that he re-
GREETED the time allotted him would
not permit extended reference to the
northumberland bank but he
wanted to explain how a Duluth bank
accommodated the Fargo league bank
with credit which appeared on paper
only to enable it to make a proper
showing before the supreme court.
He also told of the Sisal Trusts con-
nection with the Fargo bank. The
Sisal Trust, he said, was organized
by A. C. Townley and his associates,
including Job Wells Brinton.
Senator Baker will disavow Brin-
ton," Mr.. Murphy said, "but let it be
remembered that Townley used him
for number Of years as his secretary
and confidential agent. In regard to
Brinton / have just this to say, he
is the smartest man / ever met. l
can say no more about him."
$1,000 Check Deal
Mr.. Murphy told of the now famous
$11 900 check given by Brinton on a
Minneapolis bank in which he had no
funds to cover up what he called
"theft" of that amount by John Has
tings. When Lofthus, the state bank
examiner, testified before the house
committee and was asked concerning
this transaction he refused to answer,
advising that he might incriminate
himself, the speaker declared.
The speaker told Of the efforts the
league leaders made to keep informa-
ton concerning this $11 900 check deal
from reaching the house investigat-
ing committee. He said Atty. Gen.
William Lemke telephoned a man who
had been identified with the Scandi-
navian- American bank and who was
summoned before the house commit
tee and advised him that the league
leaders were Tin hole" and he would
have to tell the committee something
to get them out of it.
"Lemke told that man." Mr.. Muir
ply said, shat no one would ever
know. / say that in all sincerity
and you men and women listening to
me know that if have libelled Will
liam Lemke in making such a state
ment it is serious matter"
Re-Deposits Discussed
| Coming to Senator Bakers remarks
concerning the western part of North
Dakota beneftting by the manipula-
ton of funds by the Bank Of North
Dakota. Mr.. Murphy declared that
when Cathro produced list Of re-
deposits made by the Bank of North
Dakota, for the benefit Of the senate
investigating committee, the house Ee-
cured copy and called Mr.. Cathro to
the stand. The director general Of
the bank, he said, admitted under
oath that when the list was compiled
by January, 1921, the Bank Of North
Dakota was owed $4,000 by banks of
Burleigh county and OF that amount
$4,000 was owed the state bank by
the league bank at Regain which has
since closed it's doors. He charged
that the list revealed that rs per cent
Of the state banks money in Bur-
leigh county banks has found it's way
into league banks.
I "If it is proper" he said, "that TO
the victor belongs the spoils', then the
Bank Of North Dakota was properly
managed. And if I were in the posi-
ton Of those who 50 managed the af-
fairs OF that institution, would not
} dney that had shown favoritism. ]
} would glory in it,"
] Cass County Situation
\ Referring again to Cass county in
~