The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-02-25
ALLEGES FUND M1sUsLD

Charges in Suit Begun Here thai
Portions of Fund Were Mis-.
applied by Lemke
Charges that former Attorney Gen
eral William Lemke applied portion:
of the so-called "Lemke Fund" tt
"other purposes and other uses not IN
tended by the donors, and to his owr
personal and private uses, purposes
and ends," and that the Fargo Courier
News "did not up to and including the
11th day of February, 1921, deposit al
the collections Heretofore received by
it in the said Lemke Fund.-, and that
"the said Fred Wing (former business
manager of the Courier News), on in:
formation and belief, as this plaintiff
alleges, appropriated and converted
to other uses and purposes than those
intended by the donors,' are made by
Attorney General Sveinbjorn john
son in a suit filed in the Burleigh
county district court today.
The attorney general asks the court
to declare trust existed in the fund
with the State of North Dakota as the
beneficiary, and that the treasurer OF
the state be made custodian OF the un-
expended portion Of the fund to be
expended as provided in the trust.
The attorney general alleges that
there are several thousand dollars OF
unpaid bills, incurred by the former
attorney general, which should be
paid out Of the "Lemke Fund" as di-
rected by the donors. .
Mr.. johnson does not ask that he
be given control of the fund, but sug-
gests that the state treasurer be
named to execute the provisions of the
trust.
The "Lemke Fund" controversy has
been in progress for some time. The
Courier-News has attacked the attor-
ney general in the matter, and has de-
clared a fight would be made against
his action.
Defendants Named
The suit is brought against William
Lemke, The Courier-News Publishing
Company a corporation; F. w. Cathro,
Fred Wing, and the State Of North
Dakota doing business as the Bank
Of North Dakota.
The complaint sets out that the
"Lemke Fund" was collected through
the Courier News for the purpose Of
providing funds for Mr.. Lemke to use
in prosecuting railroad rate cases, and
that the purpose was so stated in the
Courier-News when it appealed for
funds. The appeal for funds is set
out, with Lemke's statement he could
not otherwise fight the rate cases.
The attorney general sets out that
it is his information and belief that
the contributions to the fund were not
less than $4,000, and that up to and
including Feb. II, 1921, the Courier
News had deposited in the Bank Of
North Dakota the sum of $8,432.82
collected for the fund. A deposit slip
was issued to William Lemke.
The complaint charges that not all
money collected was deposited, and
reads:
"That the said defendant, the Cour-
ier-News, did not up to and including
the 11th day Of February, 1921, de-
post all the collections heretofore
received by it in the said Lemke Fund
for the purpose heretofore described;
that the said defendant, the Courier
News Publishing Company, has at all
times refused, neglected and wholly
failed to account for any further re-
ceipts for the said Lemke Fund donat-
ed for the purposes herein set forth,
although the said Courier News Pub
fishing Company, the defendant here
in, has received for said fund, and
for THE purposes herein set forth,
from various donors, citizens Of this
state, large sums" and that the
Courier-News has wholly failed, re-
fused and neglected to turn over to
the plaintiff, or the present attorney
general" or to any other source the
balance to be used for the purpose for
which it was given.
Custody of Fund
The complaint charges that F. w:
Cathro, former director-general and
manager of the Bank of North Da-
kota, short time after a deposit was
made in the bank, "took personal
charge and custody of said trust fund,
the exact amount being unknown to
this plaintiff, and the records relating
thereto, and that the said defendants
herein last mentioned have at all
times refused and neglected to ac-
count for such portion taken"
The complaint charges that Fred
Wing son information and belief, as
this plaintiff alleges, appropriated and
converted to other uses than those
intended by the donors and contem-
plated by the trust as hereinbefore al
legged. large portion of the said fund,
and that the said Fred Wing has re-
fused and neglected at all times to ac-
count for such money and such fund,
and the portion thereof converted by
him as hereinbefore alleged, to other
uses and purposes than those intended
by the trust, to-wit: to the uses and
purposes of the defendant herein, the
Courier-News Publishing Company, q
corporation, of which said Fred Wing
was manager at all times herein men.
tioned.'
Other Charges
1t is charged that "the defendants
William Lemke. F. w. Cathro, FREQ
Wing, and the Courier-News Publish
ing Company, have by common agree
ment, and by concerted action, fraudu
lently conspired together for the pur
pose of preventing a disclosure of tn,
Continued on Page y