Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-02-10

~ .ce bureau was organized Dy TOWN.
icy with three dummy directors, Sam
Haislet, Harry Dence and Harry Dun
bar, and that these directors held no
interest in the organization, merely
signing the organization papers.
That the Publishers National Ser
vice bureau is now controlled by
Lemke, as attorney for the National
Nonpartisan league, as a director OF
the company.
That Iemke controls the Consumers
United Stores company by owning a
majority of the stock, aud that the
directors of that company were mere
ly dummy director without voice in
its management.
That Mr.. Lemke has acted as at
torney for the National Nonpartisan
league; member of the National Nom
partisan league executive committee;
attorney for the Nonpartisan Pub
fishing company; Republican state
chairman; president of the Fargo
Courier-News; majority owner of the
Consumers United Stores company,
organizer and director OF the North
west Service bureau, attorney for
the Bank of North Dakota, attorney
for the Scandinavian American bank
of Fargo, attorney for the Industrial
commission, special assistant attor-
ney general by appointment from
the governor, and now attorney gen.
eral of the state.
That the financial policy of the
Bank of North Dakota always was
the subject of bitter strife in which
!Brinton. himself, Waters and sny-
der lined up on one side, with Town
lev, Lemke and Cathro lining up on
the opposite side.
That Townley and Lemke wanted
to use the Bank Of North Daokta to
aid in financing Nonpartisan league
projects, and that Townley had told
him, Brinton, that Cathro had
agreed to SAIL
That this financial policy advocat-
ed by Townley and Lemke. concurr-
ed in by Cathro, resulted in the re-
tirement of Waters from the bank.
That on one occasion 100000 of
league paper had been brought to
Bismarck to the Bank Of North Da.
kota from the Scandinavian=Ameri
can bank in Fargo for rediscOunt or
for loan collateral.
That this paper included per sonal
notes and other obligations of
Lemke.
That Waters and Brinton opposed
Cathro's and Lemke's demand that
the paper be taken by the Bank OF
North Dakota and that it was final
ly returned to Fargo by P. r. Sher-
man, then cashier of the Fargo bank
who carried it home in grip.
That amounts loaned to the sub
sidiary league }, corporations total
from s35O,O0O to. $4O0, 900:
That he, Brinton, and Waters OPP
posed the policy Of using the Bank
of North Dakota in financing politi-
cal projects for the reason that lit
was damn fool political policy"
That Waters told Townley and
Lemke they were putting him up
against the penitentiary in certain
of the transactions demanded OF him.
That bad blood between Cathro
and Waters in the Bank of North Da-
kota developed after Waters ap-
pointment had been promised by
Townley following conference with
Brinton, and Cathro's subsequent
appointment as director general with
out Waters knowledge; that Cathro
ordinarily criticized any action in
the bank dictated by Waters, and
that Waters reciprocated When
CathrO initiated anything.
That a policy was agreed to be.
tween the Bank of North Dakota and
a private bank by which heavy re-
deposits were made with the under
standing that the money would be
loaned to league corporations.
That this money was not loaned
tn tho nrivate hank for the reason
that it was deemed unwise to have
league paper in the Bank OF North
Dakota. Brinton said he personally
opposed Cathros appointment on
the grounds that he was not a good
leaguer''. To this objection, Brinton
quoted Townley as saying: We
want Mr.. Cathro in the bank because
he has agreed to sail" He said:
'"Townley later told me Of the plan
to use the Bank of North Dakota to
finance the loans.'' The witness
said he had charged officials with
embezzlement and that they had fail
ed to have him arrested.
Brinton said also that when ne
found there was no chance to break
the agreement covering the handling
of public funds, he wrote lengthy
letter to the governor and that the
governor violated his confidence by
turning the letter over to Lemke and
later publishing it. He said he did
not think the governor was cogniz-
ant of the situation in the bank for
the reason that "it has been misrep-
resented to him."
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