Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-07-07
The Chief Sensation.

This morning was devoted to m
ing up the odds and ends of I'll
tmony., The chief sensations
morning came in connection vi
testimony of J. r. Waters, wh6
recalled to the witness stand bS
defense, Waters told of his HoSE
nous alleged conversation with
liam Lemke on the subject nkss
Scandinavian-Americ bank Es
had been receiving large depoGtN
loans from the Bank Of North nS
n "If the scandinayten-Ans
~ bank-bfowe -ul befbSe Jh6d
Langer will be the next M r.
ernor," Waters declared he ~ Al
Lcmkc.
'.By God, we win keep
bank open if 1t takes every sg}
North Dakota was Lna
reply, according to Watesa n
timony. Ss5s
"Then you can flnd4x ano}
manager for the Bank 0fSN6ft1 -
Dakota" was Waters answer. And
shortly afterwards he resigned. ~,
Improper Rebuttal.
In rebuttal this morning the STATE
called H. A. Paddock and VIM. Lemke.
Little of the formers testimony was
allowed by the court to go in. how
ever. on the ground that it was i'm.
proper rebuttal and that any testi-
have been put in during the main
case. Lemke was allowed to deny HE
alleged statement to Waters He
claimed that his only talk with
Waters relative to the Scandinavian
American bank took place in the Of
fee of Governor Lynn J. Frazier
shortly before the June primaries in
1920
Thereupon the defense recalled Mr..
Waters to the witness stand. He tes-
titled that he had not been in Bis
marck from March to the end of
June, 1920 except for about two
weeks early in May that this was
subsequent to his resignation as mana
ger of the Bank of North Dakota and
that during this period he had no
conversation with either Lemke or the
governor along the lines indicated by
Mr.. Lemke. There was only a brief
cross examination by Mr.. Weeks.
! Overruled Motion
! Judge Nuessle overruled motion
by Mr.. LeSueur that the report Of the
house investigating committee be
placed in evidence and given to the
jury as an exhibit. Both sides then
rested and the Judge excused the jury
until o'clock this afternoon, at
"AllSIl l1oOl 2uI " cchS WAS SCu0O-
uled to begin his argument. In the
meantime Judge Nuessle conferred
with the two lawyers regarding the
instructions to be given to the jury
and other matters of like nature
! Wednesdays Hearing.
Bismarck, N. D., July 7.--Furthef
details of the alleged frenled finance
! scheme of A. C. Townley were barred
by j. R. Waters, former manager OF
] the Bank Of North Dakota, testifyins
yesterday afternoon in the J. w
Brinton perjury case.
Townleys plans. according to
Waters included the adding Of a farm,
machinery department to the Con.
sumers' United Stores Co. and the
establishment of a statewide chair
OF banks, both projects to be financed
by the Bank Of North Dakota through
the Scandinavian-America bank ol
Fargo and other league institutions q
The proposal, Waters said. was thai
the candinavian- banA
should receive deposits and loans from
| the Bank OF North Dakota, which
4 were In turn to be loaned to the Con.
isumers' United Stores Co. for ths
establishment OF the farm machiner,
department.
/. The chain Of banks scheme was tt
be On somewhat more elaborate
scale. The funds for the purchase O
the first bank were to be furnished b,
the Bank OF North Dakota through
the Scandinavian- an-American bank
Bank No. 2 was then to be financet
in the same way through bank NO 1
land SO on ad irflni.um.
\ In each case the loans were to b
secured by the bank stock pmrchaset,
Waters said that this plan was dis
4