Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-08

RAN FOKkS Ill
to clashes, between Waters as mama
ger, and .Cathro, as director general,
Of the Bank of North Dnhota. i
Waters and / thought 1t was a
'damnfool' policy said Brinton, and
Waters told Townley he was putting
him up against the penitentiary."
1t was agreed that Waters should
and later Townley. told him that Ca
thro was to be director general. When
Brinton expressed surprise at this ar
langement, TOwnley said, he declares.
I'VE, want CathrO in the bank because
he's agreed to sail" +,
Lemke knew Of this arrangement, !
Brinton declared.
From Official Records. !
In this connection Mr.. Brinton's tes-
timony was as follows, the quotations
being from the official records Of the
hearing:
Brinton said: I'm my conversation
Townley was very anxious to have
Mr.. C;athro in the bank and | referred
to a certain position that the league
had taken challenging Mr.. Cathro's.
position as a good Lacquer. l viii ad-
nit to the committee that I played
politics when l was in the league. l
am not ashamed of it, for l have been
in politics quite a while. l can't help
it.
"Mr. Townley mad the expression:
we want Mr.. Cathro in that bank be-
cause he has agreed to-sail-with
u.s. and of course in the conversation
that followed he explained to me that
they were going to use that bank to
assist in financing the National Nom
partisan league"
Mr.. Shipley: What bank?"
Continual dangling.
Brinton: The Bank of North Da-
kota and that was where the row
started, and there was continual jang-
! side, and Mr.. Lemke and Mr.. Townley
and, L presume, Mr.. Cathro on the
other, as to the use % this money in
the bank, and they being in control
of the national committee; why they
dominated it, and Mr.. Lemke being
the attorney of the industrial COM
mission, he represented the industrial
commission and we simply backed
! out"
Mr.. Freeman: do you make the
statement that this was one of the de-
termining factors that went into the
appointment of Mr.. Waters and Mr..
! Cathro as officers of the bank, that
they would in some sense lend the
t%hcorylof their position to these trans
~actions?"
Mr.. Brinton: "Well, that is a doubt
full question. l say that this controver-
sy and row in the Bank of North Da-
kota was because of that determined
policy on the part of league leaders.
l am not saying that MIR. Cathro did
do it; but 1 assume as an intelligent
man, that he agreed to it. Because he
Il, .+;lI ~ tho honk and Mr. Waters is
out Of the bank, and the Scandinavian
American bank a some $450,OO0 of
public funds and 1 want to say further
that I ave, charged Mr.. Lemke and
Mr.. Cathro with embezzlement and
they haven't manhood enough to pull
me into court and l charge them to-
day"
Mr.. Chairman: "Just a moment,
Mr.. B%rinton."
Mr.. Brinton: well, he is chdlleng-
s%ition."
MIR. B%rinton: II have no objection
to anyone asking me questions, bu
don't like to nave n one insinuate
that I was in any kind of an arrange
ment to defraud the state of NORTH
Dakota"
Freeman: "Well, l apologize, 1 JUS
wish to arrive at the facts"
B%rinton: Il want to say that 1 have
brought enough trouble on myself or
account Of this row. I have beer
called a crook and if I had stayed gu
of it, 1 probably could have got a goot
appointment. I might yer have gottel
a house."
Questioned by Sullivan.
Sullivan: Now you have indicated
that Townley himself had told 70,
that Cathro had agreed to sail on hi
policy you have told us about?'
Dos-k1~. ssVoc ci~b
Now do you mean to say, that MI
Lemke. the attorney general of thi
STATE, knew of that policy and approx
ed it.
Not only knew of it and approve
of it, but he participated in it and ad
vised it."
Resume Examination.
After a recess of a few minute:
Brinton's examination was resumed.
Sullivan: DO you want this com
mittee to understand that there wa
lnisa precipitation and embezzlemen
in the Bank of North Dakota?"
Brinton: mo, not in the Bank G
North Dakota. The funds We're lake
from the Bank of North k an
taken to the private bank of Farg
and the transportation and embez
element took place there
Tells of Shortage.
Brinton then told how a shortag
of 100000 or $1,000 had been DIS
covered on the books of the Scand
navian American bank and that til
money had been invested in the sis;
trust; that when this shortage wa
discovered it was insisted that til
sisal trust make this good. An al
rangement at that time was ma
whereby the shortage was carried o
the books of the bank as a loan to tn
; lsisal trust. After the LANCER raid Q
the Scandina Wan American bank, NJ
Brinton testified that he a called I
Fargo for Il conference with Towr
: lev, Lofthus and Lemke when it VIZ
q arranged hat this obligation Shout
be taken up at once.
Sullivan: WAS there anything els
= said at hat conference?
Brinton: well. the result of OF
conference was h I informed Nj
- Lemke and Mr.. Lofthus that tt
= company couldn't take it up on sue
. short notice. They would have to gi'
2 us some time. And it was arranged
such a manner that it was taken |
and presume marked off the books
Sullivan: well what manner {
YOU refer to? Just what was sa
there tina would ind:s ate the MAJ
ner?"
What Happened.
B%rinton: We'll. l will tell o VIII
actually took place rather than VIII;
was said. l gave a check 10 the Scar
dinavian American bank for II
amount of none that was involved
this obligation. I think 1t was abo'
s11, OOO."
Sullivan: What bank was tn
chock IN 2b