The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-04-12
T0WNLEY, MANY
OTHERS WERE
HELD TO TRIAL
Judge Holds Indictments De.
fective in Names of Wit
neSseS, Other Points
STATE WILL APPEAL.
Review of Decision Will be
Asked by Supreme Court.
Acknowledgement Says

Fargo, April IL. - Judge
George McKenna of Napoleon
today handed down decision
setting aside all the indict-
mcntS returned by the Cass
county grand jury in comec-
ton with the failure of the
Scandinavian American Bank
of this city.
The indicted men were A.
i c. Townley, William Lemke,
r. W. Cathro, Lewis P. Nc
Ananey, N. G. Eggen, H. J.
Hagen, Lars Christensen, f.
K. Sherman, O. f. Lofthus, J.
j. Hastings and H. A. Pad
dock.
Judge McKenna granted
the motion to quash the in
dlctments on the ground that
the evidence was considered
en- masse with no proper Sc
gregation as to the charges.
so that the names of proper
witnesses could not be en-
dorsed on the indictments.
he held, too. that it was error
to omit the name of former Atto-.
ney-General Sveirbjorn Johnson
and IA other witnesses, all of whom
testified, from the indictments.
Mr.. johnson was a witness against
+. W. Cathro, former manager of
the Bank of North Dakota, and his
name did not appear on any of the
indictments against Cathro.
Only Questions Considered
These were the only questions
raised by the defense which Judge
Mckenna considered He did not
touch upon the question of Arthur
LeSucur's alleged address to the
grand jury or the allegations tina,
he exhibited political pamphlets to
the jury. He did not consider the
contention that the Attorney Gem
eral and his assistant, Geor-n
Bangs of Grand Forks, had no right
to appear in the grand jury room
or that 10 Of the % grand jurors
were residents of Fargo. because
the court being of the opinion that
all of the So indictments returned
against the various defendants
should be set aside for the reason
already given, it is unnecessary to
pass upon or determine the suf1i-
ri
tions raised"
Applied to All
The motion to set aside the indict~
mcnt went to Judge McKenna in
the case against H. j. Hagen, form
er president of the defunct bank.
but the points raised in that ease,
1T was agreed, applied to all and for
that reason the court made his rul-
ing cover all defendants and declar-
ed all indictments set aside
~ Opinion of Judge
The memorandum opinion of
Judge AlcKenna, now sitting at M.
poleon. is a lengthy document. CON
sIsting of 81 pages, i'm which the
history of the cases and the var
iou> steps are discussed.
The opinion states that on April
u.s., 1922, William C.. Green, states
of Cass county, presented
the petition for the grand jury to
Judge Cooley, who called il. On
May 2, 1922! the grand jury was
and drawn. The inrv
was discharged May l8. 1922.
The IS indictments included:
Five indictments covering the max
ing of false reports to the state
examiner; 16 indictments are for
receiving money on deposit in an
lnsoivent bank; eight indictments
cover the making of false state
Inents and entries in the books of
the bank: five indictments are for
embezzlcment"; one indictment is
for perjury"
The court. passing over the first
five points raised by attorneys for
the defendants, took up the sixth:
Can all testimony of a large num-
Der OF witnesses be taken 'cn masse'
before grand jury, relating to
large number of crimes, against =
large number of different persons.
without special reference to any
specific charge, or any specific de-
PENDANT. and. such testimony Ell
masse be considered by the Jury at
The close of the testimony, and in
dictments found against large
number of persons. without vitiat-
ing the indictments so found?'
The court, stating the first prom
Dsition was one of fact, quoted from
the minutes of the grand jury and
arrived at the conclusion that the
testimony was taken en- masse -
that is. Large number Of matters
at one time. and the var
Ous charges not specified.
Answering the second question.
he court held that such action does
fitiate the indictments.
THE object sought by d grand
Jury. or BY prosecuting attorney,
Continued on nann thranl 49, $500