Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-10
GRAND FoRKst HERALD, THURsDAY, FEBRUARY 10. 1921.

GRAND FOkk,
g. DID any one Of those parties that
You have referred to explain to you
why this money should be sent in cur
rency. and in a fictitious name Instead
OF being sent in the regular course?
AL can't say that anyone, less it
Mas Waters, and ! think Waters told
me that the reason they sent IL in cur
reney was that he didn't want to send
check Tor it or wouldn't send q
check, as = result Of apparently some
controversy over h regularity Of 1t.
T.: Do you know who 1t was In the
Bank of North Dakota that started
this money on it's way in that manner?
A. I couldn't say al to that.
T.. Have you any information that
would connect Mr.. Cathro with that ?
A. No. no information whatever.
Z. The only manne that you con-
meet Mr.. Cathro with it. Mr.. Brinton,
then. as I Understand it, was because
Mr.. Waters said that ne would Sign a
check for it, and you therefore assun1-
who caused 1t to be sent in that nan
ner OF under his direction?
A. I assumed Mr.. Cathro was the
person because Mr.. Cathro at the time
tnS controversy came up waS running
the bank, and the fact that the money
was sent, according to the information
given me by h officials Of the bank
in a round about way through a draft
and paid in currency n delivered by
messenger, who had to go on the train
In order to deliver it instead Of
through tho United States mail. that
there must be something irregular
about it.
Nobody Eliminated.
g. And as I take it, you eliminate
" MA %~~A n
mate anybody from 1t. I am just CIV
ing o my knowledge Of it. Mr.. Wa
ters may have committed it. / only
have his word for It from the things
he has told me.
9. You divided this into transactions
from the statement that you have
made Mr.. Brinton-
tions.
Q. Now from these conversations
that you had will o tell US what the
four. transactions were? A. Did I say
@. Maybe I misunderstood you. A.
1t was three transactions. There wa
the currency transaction, and the wire
transaction confirmed by Mr.. Liggett.
and the draft transa ction that went
through a bank up near Devils Lake
somewhere.
g. Can you give us n information,
Mr.. Brinton, as to about the time, just
I approximately the time that this draft
came through this bank, you say, up
near Devils Lake some place?
Based on Letter.
A. couldn't give you anything as to
the time because I wasn't particularly
Interested in it at the time. 1 simply
inquired about it. I will add that, I
asked Mr.. Waters to get me the in
formation from Mr.. Snyder. and Mr..
Snyder wrote a letter to Mr.. Waters
in which he told about this particular
transaction and that 1t was-after it
was entered on the books-it was
changed-that is when he wa transit
manager-it was changed by someone
else in the bank-chaneed on the rec
ords, and he stated in this letter that
1t looked peculiar to him or irregular
to him. or something of hat kind. So
my Information as to the manipulation
or this transaction is based on that
letter. -.
G.. That is the letter you have re-
fered to IA. Yes. - ~
g. And that is the one you will pro
ouce' Tor US as o as you have an
opportunity to? A. Yes, I may have
that letter here in town. I will look
it up.
Q. Now yesterday you referred to
the Scandinavian American bank al
the favored institution Of the manage
ment OF the Bank Of North Dakota.
Now l will 3 you If you knew of
any other institutions that you claim
were favored by the Bank Of North
Dakota that you have knowledge Of?
Deposits. a Compensation.
A. n only one I have personal
knowledge OF is the Mercantile State
bank in Minneapolis. That. is I am
saying now that Is the only one I have
personal knowledge wherein state
FUNDS were deposited as a reward or
as compensation for something that
the bank had performed for the league
organization. or Townley or some 9TH
er OFFICER or employe Of his.
=: o. sAy there was a deposit made
in this Mercantile State bank of Min
neapohs "a a reward for some benefit
received from this bank, a benefit
coming to the league? A. Yes.
=. Now let us analyse that. Mr..
Erinton. what was the benefit that the
Mercantile State bank gave to the
league? A. They extended-the par
ttcular item I have in mind-they car
rled at one time the stock or c~ontroil-
ing interest, or sufficient stock to give
Mr.. Hastings control of the Scandi-
navtan American bank. They carried
that as a financial obligation in the
way of a loan, holding this stock in
the bank as collateral. "
=. That was the, original t~ransac-
ton? A. No, not the original.
q. What was the original transac-
ton? A. The original transaction was
through the Exchange National bank
lin st. Paul.
@. The Exchange National bank,
a: Yes sir, based on the information
Mr.. Hastings gave me at the time the
deal was contaminated.
q. Now that was tho roneeo%;o
wherein Mr.. Hastings, on behalf of
Mr.. Townley and the league. as I
take 1t, purchased the Scandinavian
american bank? A. Got control of it.
Money Furnished.
O.. And YOU say this St. Paul bank
furnished the money with which to
finance this purchase. A. Yes,
q. How did the Mercantile State
Bank Of Minneapolis figure in the
transaction? A. Well. the loan was
called. and then MI. Hastings -
G.. Loan was called By whom? A.
The st. Paul bank.
Q. All right; then what happened I?
A. Mr.. Hastings went to this party
that was running the bank In Minne-
apolis and got him to take the loan
over.
@. That would be the Mercantile
State bank? A. Yes.
Q. The Mercantile State bank took
it ~overdoes the Mercantile state
bank still carry It? A.. l understand
1t is not. q