The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-01-27

u
go and answer to the charge.
| 1t IS alleged that Townley aided and
abetted j. j. Hastings, former vice
president Of the Scandinayian-Ameri-
can bank of Fargo and financial agent
for the Nonpartisan League, in COM
mitting the crime of embezzling s3-
OOO from the Scandinavian-America
bank. A warrant was issued by the
states attorney of Cass county for
the arrest Of Hastings and he slipped
into hiding after he had been notified
in Seattle that he was to be arrested,
Hastings Charge.
The specific charge against Hast
ings was that he had borrowed $4,000
from the Scandinavian-Americ bank
for "U. S. Sisal Trust, ]. J. Hastings,
trustee" while he was vice president
OF the bank and before the sisal trust
was in existence.
The law under which the charge is
brought against Townley is Section
921S of the North Dakota penal code
with makes it an offense for "all
persons concerned in the commission
Of crime, whether it is a felony or
a misdemeanor, and whether they di-
rectly commit the act constituting the
offense or aid and abet in its COM
mission"
The penalty for embezzlement is
one to five years in prison. One aid
ing and abetting in the commission
of embezzlement is guilty OF this crime,
it is stated by officials.
Sisal Trust Ownership.
| The U. S. Sisal Trust was a stock
company formed to purchase land in
Florida for the growing of sisal, used
in making binder twine. The COM
pany sold a great deal of stock to
North Dakota farmers and is said to
own $4,000 acres of land in Florida.
The Sisal trust was assailed in North
Dakota as a league enterprise" and
it was alleged it was method where
by Townley and aids fleeced the far
mers. The ownership Of the Sisal
Trust is somewhat in doubt at the
resent time ]. w. Brinton, formerly
closely associated with Townley and
J. r. Waters, former manager Of the
Bank of North Dakota, claim to hold
.he Sisal Trust land as trustees, and
n the legislative investigation held
ast winter maintained they held it
n trust for TOwniey.
Note Matter Raised.
The history of Sisal Trust dealings
was gone into during the house legis-
lative inquiry, last winter, including
the particular. item of $4,000 involved
in the Hastings and Townley charges.
Brinton exhibited notes marked ex-
hibits "a and S5. Brinton declared
that Townley had complained Hast
ings had taken $4,000 out of the bank.
A note for $4,000, dated January 20,
1919, was exhibited. 1t was 9o-day
note to the Scandinavian-American
hank signed by United States Sisal
Trust, J. ]. Hastings. trustee"
Brinton swore that Hastings told
him he was acting as Townley's trus-
tee. Brinton, in answer to a ques-
ton, as to whether or dot the COM
mon law trust for the Sisal Trust had
been entered into at the time said
that in Justice to Hastings it was
proposed company that was about 10
be entered into. He said that the ar
ticles Of association and trust agree
ment were filed on April Z, 1919.
Witnesses for State
Witnesses for the state lnclude ;.
'R. Waters, j. w. Brinton. Receiver
Engen of the Scandinavlan-A American
Bank and an accountant who mas Deen
working at the bank.
The complaint filed in Fargo says
that on January 20, 1919, at Fargo
Mr.. Townley "feloniously advised
and encouraged Mr.. Hastings to
commit the crime of embezzlement:
that Hastings appropriated the $4,000
obtained on a note for the U. S. Slsal
Trust, alleged not to have been in ex-
istence at that time, to the use OF the
defendant, A. C. Townley, and un-
known persons.
The filing of the charges against
Hastings and Townley recalls the old
Valley City and Scandinavian-Amerl-
can Bank deals which late in 1919 be-
came the burning issues in the tight
against the league. hlt that time
Brinton and Waters were with the
| league, holding important positions,
and were assailed in various matters
Charges Against Bank.
! A letter became public, written
June 10, 1918, by Roy M. Halliday on
the stationery of the office of state
examiner, held by Mr.. Waters, in
which he let out the famous "shoot it
to other banks" admonition.
There was an examination Of the
Scandinavian-Ame bank on, it
being charged the bank had made ex-
cessive loans, most Of them to So
called league enterprises"
l In that letter Halliday said that "Mr.
Waters wishes me to advise you that
lif the examiners object to any of the
paper carried there, you are to tell
them that it will be removed at once.
The plan for taking care OF objection
able matters is to shoot it out to the
! Continued on Page y