Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-25
Had Full Hearing.


The house audit committee had a
full hearing this morning with the re-
suit that the session extended well
past the noon hour.
Among the testimony brought out
was the following:
B. II. Starry. automobile dealer OF
Conway. n. D.. testified that j. r.
Waters then manager of the Bank OF
North Dakota had assured him th4t
the Bank of North Dakota would take
iiany sor his paper that was endarsed
by any good substantial bank. on the
sire nEth 0f this a assUrance he obtained
large loans from the Michigan City
bank of Michigan. n. D.. and other
banks. 1t had been previously shown
that notes of his given to the Michi-
gan City bank amounting to, $21. 500
were in the Bank of North Dakota at
the time the audit report was made.
starry further testified that his firm
had furnished the Nonpartisan league
with automobiles in the early days Of
that organization.
Ebbert Tcstihes.
A. Ebbert of the First Farmers
bank Of Minot testified that his bank
had accepted a note Of the Equity Co.
operative Packing company for $10.-
600 and that Anthony Walton, presi-
dent of the bank. had told him that
the Equity Packing company had
made arrangements for the re-dis-
count of note b. the Bank of North
Dakota. This re-discount was made
according to schedule.
E. l.. Foukes. assistantcashier Of
the Security National bank of Valley
City shed bright light on the rela-
tions of that institution with the
Bank Of North Dakota. He said that
he had been ordered by James Grady.
president of his bank not to pay any
drafts from the Bank Of North Dako-
ia until certain loans made by the
Valley City bank on certificates Of de-
post in certain other banks of wesi-
ern North Dakota and eastern Mon
tana had been selected. In pursuance
OF the instructions he had turned
down several of the drafts of the
Bank of North Dakota writing to l..
p. McAneney, director OF the
credits department Of the Bank OF
North Dakota and reminding him of
the alleged agreement.
Probably League Notes.
This taken in connection with the
loans amounting to $4,000 made by
the Valley City farmers and the pro-
ceeds alleged to have been used by A.
G. Townley for campaign purposes
apparently indicates that there was an
exchange Of obligations made, and
that the notes from the west were
probably league notes also.
In other words the testimony today
greatly strengthens the charge that
there was an agreement made by
which public funds deposited by the
Bank Of North Dakota in the Valley
City bank were to remain there until
certain notes given for financing the
league campaign were paid.
Attorneys Subpocnaed.
In addition to all this, subpoena.
were served today on Francis Murphy
and j. f. Sullivan. attorneys for til.
house committee sunlnoring them TO
appear before the senate committed
next Monday afternoon.
There was a clash between, Fl. A.
Paddock, secretary Of the industrial
commission and the attorneys for the
committee as result OF which the
special marshal, Staale .Hendrickson
was directed to eject Paddock from
! the room unless he sat down and kept
quiet.
s. II. Starry, the mayor of Conway
was on the stand longest Of any Of
the witnesses this morning. In an
swer to questions by the attorneys he
said that he operated at Conway the
B. H. Stary Auto Co.. and the Con
bonded warehouse concern, both Of
them house in the same building.
Borrowed Money.
He stated that it had been his prac.
ice to borrow money from various
banks on automobiles bought by his
automobile selling company for which
he had issued warehouse receipts
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