Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-03-31

actively engaged in promoting the
United Sisal Trust, scheme as an em-
ploye Of the defendant A. , Town
ley. and that he wrote a letter to the
said Harvey. who was manager at
Miami. Florida. introducing his sue
cessor, Mr.. Brinton. the said Brinton
being the representative of the de-.
PENDANT A. G. Townley.
Embczzlement shown.
The state deems upon this condi-
ton Of the record that it has estab-
lished a prima facie case of embexzle-
ment within the provisions Of Sec
ton 1929, which defines embezzle-
ment as follows: "Embezzlement is
the fraudulent appropriation Of prop-
Ssrty by a person to whom it has been
entrusted" And also within the
terms of Section 1921, governing the
fraudulent Misrepresentation of money
by an officer of a corporation.
The state deems that it has estsb-
lished the fraudulent intent and the
fraudulent purpose in this, that the
money was taken in violation of law
and is Within the decision of state VS..
kortgard, in which Justice Mitchell OF
the Supreme Court Of Minnesota,
among other things. says: But if
this intent exists it is wholly imma-
terial under what form or cover the
property is t h u S appropriated.
whether under the form of a, loan or
over draft, or going into the bank
judge further ''Yf the fraudu-
lent intent is not TO be presumed from
the commission of an unlawful act it
| would be very difficult in any case to
prove the intent to cmbezzle on the
part Of a bank officer who had un-
lawfully appropriated hank funds to
his own use." h evidence in this
case shows that Hastings appfopriat-
ed banks funds to the use of a pro-
motion scheme in which he was in
tercsted as the representative, in any
ley.
Would Connect Townley.
Upon this state of the record the
State believes that it has laid sufi
cient f%ouqdation by showing actual
and fraudulent misrepresentation OF
the funds Of the bank for introducing
evidence to connect the defendant, A
e. Townloy, with this crime. We be.
licvc that we are now entitled to Of
fer evidence, as we proposed early in
this hearing, to show hat Mr.. Hast.
ings was the agent and representative
of, and under the control, DONNA
" IA "ASSSApl VI IL uS1CllOoIi
A.. e. Townley, first. in the United
Sisal Trust venture at Miami
Florida. and, secondly, as vice presi
dent and active officer OF the Scandi.
navian American bank.
We believe that We are entitled tt
show and develop more fully by cvi,
dence, documentary and otherwise
| that the defendant Townley directed
the said J. J. Hastings to advance
f.~-. q. tL- 80, =
bank funds up to $4,000, funds witt
which To promote the United sisa
enterprise in Florida, and that 'ir
obedience to that direction and upol
that authority only. Hastings did ad
vance $4,000 of the funds of thu
Scandinavian American bank to thu
use Of the United States Slsal Trust
in which the defendant, A. G. Town
ley, then had an interest. and O
which sum Of $4,000 the 5000
charged In the complaint was q part
Dismissal Asked.
In view OF the fact that the rnagis
trate has indicated that'in his opin
ion insufficient foundation has beer
laid to entitle the state to INTRODUCED
evidence to connect the defendant, A
G. Townley, with the transa ction which
we charge constitutes an enbezzle
Iuc'lt' VIC u@SIh ~ PiOpCl L u IN
to apply to the court for. the disrnissa
Of this complaint without prejudic'
to the commencement of, other pro
ceedings relating to this transaction
should such action be justified in thu
opinion of the state authorities. ls.ssss.
And inaconnection with"thiasfnptiol
we deem it proper to observe thatsth,
magistrate has Indicated from til
bench that the evidence here has dis
closed the condition of the business o
the Observation-Disclosures Bank t.
be in such a puddle that it was ant
is the duty Of the attorney general
office to take appropriate action look
ing towards the vindication of an,
criminal laws that may have zee
violated. and looking towards the fur
Their investigation Of the Scandinavian
American Bank situation to the ent
that the responsibility for the wreck
ing of that institution may be places
under the law where it belongs.
Will Ask Grand Jury.
In view of the expressions of tn
magistrate from The bench. as here
tofor referred to, we deem it proper t,
advise his honor, that we shall. a
promptly as may be, apply to the au
thorities Of Cass county for the i'm
paneting of a grand jury to investi
gate thoroughly the facts with refer
encc to the wrecking of the Scandi
navian-Amcrican Bank and to fix def
initely the responsibility therefor.
ur1,,r ~ 7H,~ ~