The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-06-29
No indication That He Will
Testify in Case in District
Court
LEMKE ACTIONS TRACED
Defense Indicates Further Eff.
fort to Pin Him as Stores
Director


ter to appear, an affidavit of Mr.
Lemke. filed when the case was called,
said. Mr.. Weeks said today that the
state could not reach Mr.. TOWnley by
subpoena because he was outside the
state and no word had been received
from MI. Townley that he would ap-
pear,
With the state preparing to wind up
its case Nels Brevig, assistant receiv.
er Of the Observation-Disclosures bank
of Fargo, was placed on the witness
stand again today to endeavOr to show
that the practice of the Bank of North
Dakota in making loans to the Scandi-
navian-American bank was on certifi-
Gates OF deposit was regular bank
ing practice and to show that many Of
the loans, alleged to aggregate $43O,.
900 in October, 1919, made to League
enterprises" we're simply renewal
notes. 1t has been the defense con-
tention that the Bank of North Dakota
was used to finance league enterprises
such as the Consumers Stores COM
pany and Publishers Service Bureau
by making deposits and loans to the
Scandinavian bank which in turn
loaned heavily to the enterprises.
Trace Lemke Connection.
Counsel for defense indicated its
further attempt to prove the asser-
tions by Brinton that Attorney Gen.
eral William Lemke exercised control
of the Consumers United Stores COM
pany and that the stores company
which sold great amount of stock, to
farmers was simply dummy corpor-
alton used to finance the N0npartisan
league. Mr.. Lemke said on the wit
ness stand that he owned seven OF the
ten shares of stock of the company
and admitted that the Nonpartisan
league borrowed money from the Con-
sumers stores company but denied
knowing how much. -
Frazier On Stand. }z..
Governor Lynn J. Frazier, Attorney
General William Lemke and Commits
sioner of Agriculture of Labor John N.
Hagan, all composing Industrial Com
mission of North Dakota, were on the
witness stand In district court yester"
day afternoon to testify in the. perjury
case against J. w. Brinton.
Governor Frezier's testimony for the
state was directed toward an attempt
to prove Brinton's charge that there
" was controversy over the policy of the
Bank of North Dakota at the time OF
it's organization was false and Hagan's
was directed to the same end. With
Attorney General Lemke the statement
went farther in an effort to show that
Brinton had spoken falsely when he
said that the Scandinavian-American
bank of Fargo was purchased by J. j.
Hastings as financial secretary Of the
NOnpartisan league and on the advice
of A. c. Townley and Lemke, that
Brinton had spoken falsely when he
said the executive committee Of the
Nonpartisan league discussed the pur-
chase of the bank and that Lemke
controlled the Publishers National
Service Bureau.
Witness Grllled.
Both Governor Frazier and Mr..
Lemke were grilled by Arthur Le-
Sueur In a long cross-examinatiOn dur
ing which LeSueur dwelt at length
upon the statement of Lemke that al
though he held the majority Of the
stock in the Consumers United Stores
company, now In receivership, he took
no part in its management.
The fact was established by Le-
Sueur through testimony by Lemke
that the National Nonpartisan league
had borrowed money from the Con-
sumers United Stores company, a mat
ter often debated in North Dakota
politics.
rs not the reason you did not take
active part IL the management be-
cause tie Consumers United Stores
company was dummy corporation
organized for the Nonpartisan leagues
benefit and that the N0npartisan
league at one time had borrowed over
$25O,O0O from the Consumers United
Stores company" asked LeSueur.
Il know nothing about it, said Mr..
Lemke.
On further questioning Mr.. Lemkc
said that the Nonpartisan league had
borrowed money from the Consum-
ers United Stores company, that he
did not know how much but that he
was certain it was not anything like
$25O.O00.
Explains Holdings.
Mr.. Lemke explaining k:s holding
OF seven shares Of the ten in the
stores company declared that he held
the stock in trust for the farmers at
the request Of organizers because they
lacked confidence in J. w. Brinton,
then manager of it. He said he was
always opposed to the stores company
as a matter OF principle.
Seeking to establish Townley's con-
nection with. it, the defense counsel
sought to have Lemke say that Town.
ley controlled the stores company.
Lemke said that Townley had assist
ed in getting members and had been
interested In 1t but de0to0 ie had con-
troll Of 1t.