The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-02-24
F0UKES DENIES
T0WLEY DEAL
AT VALLEY CITY
Assistant Cashier of Security
National Testifies at
Hearing
TRUBSHAW STANDS PAT
Paddock Fails to Shake Testi.
mOny of Times-RecOrd
. -. Editor

e. l.. FOulke, assistant cashier OF
the Security National Bank OF Valley
City, denied OH the stand yesterday
in the hearing of the senate investi.
cation committee that to his knowl.
edge an agreement existed between
President Grady of the bank, and A.
c. ToWnley relating to the keeping of
fund of the State bank in his bank
to offset loans made to the Nonparti-
san league. y
lie testified that he had been in.
structed by President Grady, however,
not to honor drafts from the Bank of
North Dakota, and instead to write
to the bank officials that according
to agreement we are returning draft
so and So"
Cites Other c. DIS
He did not know what this agree.
mont was but he understood that it
was to be in effect until from $S,0ON
to $11 900 worth of certificates of de-
post from other banks which they
were holding were paid. He said that
the bank was still holding one OF these
certificates for $2,25Q, from the Amer.
lean Exchange Bank of WatfOrd City.
He attended the directors meeting
when the notes of the five farmers
came up but he did not hear, he de-
clared, any statements which would
give the impression that there was an
agreement between Mr.. Townley and
Mr.. Grady and he thought that Lee
COwell, chairman of the board Of di-
rectors, and S. T. ELLIS, director, were
mistaken in their conclusions.
H. A. Paddock secretary OF the In
dustrial Commission questioned him
as to whether his bank had had suf-
.cient money on hand to meet the
RATS turned back and still maintain
he required reserve. He insisted that
it did. The committee instructed him
to return to Valley City and bring
the statements showing the daily bal
ances for list of dates furnished by
Mr.. Paddock.
Aultman Called. d.
H. l.. Aultman of Bishop, Brissman
& Co., was the first witness called.
He was questioned regarding tele-
gram sent to Bishop, Brissman & Co.,
requesting e. J. Bishop, and others
to come to Bismarck. Mr.. Aultman
said that he had seen the telegram
but that Mr.. Bishop did not say wheth-
er he was coming or not.
The last witness called was Percy
r. Trubshaw, Valley City, editor and
publisher of the Times-Record. Mr.
Trubshaw on request Of the commit
tee brought copies of the paper for
Oct. IA and %, containing the first
references to the alleged Valley City
deal. The articles were written In
vigorous and emphatic language, one
of them closing with the statement
that "A. C. Townley was the chief
sachem Of free love and Socialism,.
Editor Retorts.
Mr.. Paddock unanswered long and
craftily in an endeavOr to trap the
Barnes county editor into an admis-
sion that the article was false. He
would ask if the statement made by
such and such person was true
wasn't his article. Mr.. TrubshaW
would come back defiantly with the re-
tort that he didn't know about the
other fellows statement but that ne
knew that his was the truth
During his examination, Mr.. Trub'
shaw remarked that he was standing
on his published statement and that
if it wasn't true those injured could
seek recourse in the courts.
This led Senator Liederbach, chair
man, to question him regarding his
financial affairs.
"I always pay bills" came back the
sharp reply, "and don't pay them
in post-dated checks either