The Bismarck Tribune Newspaper, August 13, 1920, Page 3

7 FRIDAY, AUGUST 13, 1920 WATERS’ CHARGE OF FORGERY ON RESIGNA- TION IS: ATTACKED (Continued trom“Page One) about his resignation, the Courier- Néws article, referring to attacks of J. W. Brinton, continues: Attacks Begun \, “The real reason is that ever since his resignation his partner in the at- tack, Mr. Brinton, has been seeking political office at the hands of the Nonpartisan league ‘and he himself has tried to intimate and force the League into paying him money to prevent an attack by himself and his co-conspirator and finally because he knows and any one who, exam- ines the evidence above knows that his statement that he did not resign and that his resignation is a forgery is absolutely untrpe and without any foundation whatever. “In view of the attack made upon the League or its leaders its. candi- dates its president and its workers it is only fair to give the public the full story of the relationship that has ex~ isted between’ J. W. Brinton, J. R. Waters, the state administration and the Nonpartisan league. Letter Written “On May 17, 1920, after-J. W. Brin- ton had been forced ‘out of the Con- sumers United Stores company, after he had been forced out of the Pab- lishers’ National Service ‘bureau, af- ter his sisal trust had become deac on his hands, after Waters had re- signed, ‘after the League conventions had failed to endorse Brinton for congress; when he and Waters nc longer had a job he took occasion to write a letter to the governor of the state of North Dakota setting ont fully the charges which he had te make against persons in the League management, in the Bank of Nort Dakota and elsewhere. He forwardec a copy of this letter to A. C. Town- ley at Minneapolis... - ; * Practically ‘every one. of Waters’ charges are categorically denied it the league defense. His charge that Lemke promised thé job of director- general of the Bank of North Dakota to Cathro prior to the organizatior of the bank is assailed as a false- hood. if Cathro, in a letter written June 11, 1920, Bays: “I “had ‘never seer Lemke until after I had received m; apnointment as director-general.” Concerning his salary he said: made no stipulation as to salary, the only stipulation I did make to the Industrial commission was that my expenses were to be paid from the time I left Bottineau until I returned to Bottineau. I did not propose that the First National bank of Bottineau of F. W..Cathro or any other institu- tion should pay, my expenses while I was working for the Bank of North Dakota.” He denies that he asked the state to pay his laundry Dill. saying it was well understood that his board and room expenses were to be paid. Pointing to the fac-simile signa~ ture of Waters on the letter of re- signation and his legal signature, the league defense declares there can he no doubt: but that the.two are th same. The Courier-News continues: Same Signatures i “If the statement is true that Mr Waters signed the resignation we are publishing as a result of threats tha he would be prosecuted criminally then he must-have. felt or known that he was guilty of some crime for had he not so felt the threat would not have caused him to become so fearful and intimidated as to resign from the best job. he had ever had. “If it is true. that Mr. Waters did submit. to duress no matters what threat was made, it is then conclu- sively true that he had no business remaining in charge of public funds and it is indeed fortunate that his resignation was put in and accepted, no matter how it was secured. “Clearly then the statements that the resignation’ was perfected with duress and coercion and the state- ment that it was perfected with for- gery cannot both be true. One must be a lie, the other is probably a lie and even if the coerc- ion charge were true it has removed from the management of the bank of North Dakotd a man who has since revealed himself as without moral \cthics.” i The league defense asserts that Brinton sought to run for Congress with league endorsement and failed to get it. Continuing it says: Turn, then to his co-conspirator, J. R .Waters, and we find that in addition to the letter in which he says that he had not resigned, Mr. Waters has written’ a letter to the 7 Bismarck Tribune which read: Forést Lake, Minn., August 8, 1920. Dear Sir: I notice an editorial in your paper of August 7, saying I claim to have enough dynamite to blow the ‘Townley machine into atoms, but I set a price on it.’ I shall expect a retrac- tion of this as_ Iam not a blackmailer, and when did I ever set a price on my knowledge? I must admit I have plenty of dynamite, but I am not of- fering it for sale, and you know it. When I get ready to go after the Townley crowd, I will use it, but I defy you to show where I have ever set a price on it. Ishall’expect a reply and retraction by return mail. Yours trly, J. R. Waters.” ‘Waters Wants Money “Mr. Waters must have forgotten thet on July 19, 1920, he wrote the following note: “Forest /Lake, Minn. A.C. Townley, Minneapolis, Minn, Dear Sir: I will be into see you in a few days and must have at least $1,000. Trusting that I wil! not be disappointed. Iam yours truly, J.R. Waters.” And he must have forgotten that he wrote the following letter, dated Aug- ust 7, 1920: Forest Lake, Minnesota. Rav Craig. Dear Ray: I decided to come home after I left you. Ar- rived home yesterday. Ray, can’t SERVICE ‘GARAGE: Now open for busi- ness. Guarantee good work. Repair all ‘makes of cars. T. J. JONAS PROPRIETOR with such a note and was advised by, | his attorney that the note was of no value unless it was executed ‘by ‘the proper officers and authorized by, the you send me $500, It will help me out greatly, and I assure you I will appreelate it. You can:send ft as a personal matter or ‘any other way you choose. Iam not | corporation, A demand was made trying any ‘Sharp practice or any- upon Mr. Brinton to replace the thing on you. Ray, I-saw J. W. | money and shortly afterward he did 3 after | saw you. He said he | so. It was suspected: by one of th2 would talk to you, if you would come to him. 1 think matters can be adjusted. Yours truly, J B, Waters.” - And he must ‘have forgotten the telegram he sent to Ray Craig of Fargo, N. D., from Minneapolis at 12:50 p.m. on July 28, 1920, which reads: “Can I 'get my money by coniing ‘up tonight? ' Must have at least thousand. ‘by, tomorrow or will officers that in order to replace’ the $2,000 he had borrowed money on the credit of the Consumers United Stores company. An inquiry. was made at the bank where it was sus- pected he had made the loan. ‘the loan! had not been made at. that place, but about a year afterward a note for $2,000, signed by J. W. Brinton and C..M. Brinton ‘and made payable at the bank of Cathay, North have to start fireworks . Answer] Dakota, turned up ‘with the endorse- quick. ‘Dyckman Hotel. J. R. Wat-{ ment on the back of the Consumers] ers. United States company by J. \W. Was J. W_ .Brinton or his co-con- spirator, J. R. Waters, seeking either political preferment or money? Judge! tor ‘yourself. ae | Tooting Own Horn It is interesting to note that in Mr. Brinton’s communication to the gov- ernor he claimed that ‘he “laid the ‘oundation for the Nopartisan league.” We' wonder why he has been modest 30 long and let A. C. Townley rece! ull the credit. His communication ‘ull. of charges of corruption, graft criminality, etc., and in the letter sign- ed by Mr. Waters it is said that “the management of the bank was never in my hands/”’ That being the case, if Mr. Waters were a man of character, anc were not remaining there simply for ‘he salary, which was the best he had over reccived, why did he not resign ind gét out if he did not approve of things that were being dcne; and dur. ng all of the years that Mr. Brinton vas been associated with the league ind league enterprises, if things were} stepped down as a director and vice s ‘crooked ‘and rotten as he claims! president, he attempted to still con hey were. why did he remain with] tinue to collect his salary and was he organization ing to disclos furious when foiled. hat was going on and continuing to Tried (0 Profit 3 art of such a corrupt, crooked, “Mr, Brinton also says in his ar- 1 Bang? [ers in the Burleigh County Farm- Brinton, general manager. Tt now ‘ap- pears that this note to the Cathay bank was made at the 'time he raised the $2,000 to'repay ‘the money to the Consumers United Stores company. Why He Resi ned “It is not contended that M ton stole this money for the aN: j Which received it; as it was after- wards charged to their accounts by th® Publishers National Service bu- reau, and the Publishers National Service bureau ‘paid the note even- tually to the Cathay bank. It was because .of this transaction and be- sause of his attempt to use the Consumers United Stores companys funds for newspaper work that the trouble arose as’a result of which arluton resigned. “In view of Mr. Brintons attitude it is only fair to tell the public that after he had resigned as manager of the Stores ‘company and_ hiac xamine the history of J. AV.) ers ‘Press that in 1918 he started an in connection with the er organizatior » we'find’ some wuines® which? which brought War upon him by. the e a beta ue seus S| League “higher-ups. It is a well a eect Racy vd known fact that shortly after Mr Art ae ) Brinton. started ‘the Publishers Na- ae pen ar tional Service bureau, it) was rum- After Coin ored ‘in many parts of the state thal independent newspa hts firs real conection was whet} he was buying: Newspapers’ for 50: ve begun the organizat‘on of the -9-| and 75e on thé ‘dollar ‘and selling sumer> United Stores Company. Ste! them to the Publishers National Ser- conceived the idva that a great charges Lemke, who has been declared Cathro’s Job Again referring to the bank, Brinton by many people to be the real boss of the’ league in the state, has _promiseil | Cathro a $10;000 job in the bank leng before the bank was created, With two heads to the ingtitution—Cathro and Waters—it was not long before friction developed, ‘according to Brin- ton, and there was continuous strife “until Mr. Waters was forced out which is now a matter of record, ex- cept that Mr. Waters’ resignation was. a forged instrument— ‘evidently writ-|] ten by Mr. ‘Lémke and published in his Courier-News without Mr. Waters’ ; | knowledge and during his absence from the state.” The first controversy between Cathro and ‘Waters, it is claimed,; arose over the allowance of Cathrow| not only of 2:$10,000 a year salary but board, room, Jaundry and auto hire to} and from his home in Bottineau. Continuing, he says: “The next controversy between the two managers arose over the ‘matter of depositing money with other banks and particualrly the matter of the de posit to be placed with the Scandina- vian American. Bank of Fargo--un- known at that time to be ina very delicate condition Mr. Waters as bank examiner ‘knew that this bank |} was not in a strong condition and had not been for a long time; that the bank’s stock was being hypo ‘hecated and held by persons not financially responsible. In this Mr.\4 femke assumed’ ta know more abnut the bank than did Mr. Waters and the bank examiners’ office. Later de- posits were made with the Fargo Yank with your -attorney’s. approval |" and over Mr. Waters’ protest. Another Controversy “Still later another controversy arose Vetween the two ‘bank heads over the matter of a large loan which the Scandinavian American Bank — re. juested from the State bank, amount- ing tq over a quarter million dollars, ‘and in accordance with an agree- ment made with Lemke and Cathro ‘Ne Fargo bank sent notes. in that amount to be’ rediscounted. In this instance Mr. Waters refused to ac- sept the paper or make the loan, and, in my presence, threatened to resign if the Scandinavian American Bank paper was taken into the state insti- tution. He not only threatened to, resign but stated he would make the} deal public. As a result the notes| were carried back to Fargo by the 1 or mosey could be made by larg? ar ions And white h- Jed eaders of the leagide to believe chat ie ‘wanted to save money forthe farm- vs and the league, he did tHis sv t iat he could 1i4e into newer‘on the pr st- 3e of the Icague. * “itis very clear that Mr. Brinton has always been connected with in- stitutions which he felt would zive aim a chance to gain financially and though he says he resigned because the Stores company funds were used .o play politics and the stores were aot open, the fact is that the only poii- tical notices which have appeared in he papers and were paid for by the Sonsumers United Stores were over he signature of J. W. Brinton. “During all of the time that Mr. Brinton’ was connected with the 3tores company he was general man- ager and the bylaws which he had Irawn provided that the general man ger should have all the authority of the board of directors when they were not in session. If then, there was anything rotten, corrupt, crooked or dishonest that went on in the Consumers. United Stores ‘company up to the date of his resignation, Mr. Brinton alone was responsible. In his article, Brinton states that the Consumers United Stores company was taken over by Townley against. his protest apd final resignation. As a matter of fact, A: C. Townley has nev- er owned a share of stock in the Con- 3umers United Stores company nor has -he been a director of it, and dur- ing all of the time that Brinton was, connected with it, he, Brinton, was @ dir manager with full power of the beard of directors. His resignation was not the result of Townley taking over the Stores company, but the result of his neglect of the business. In the fall of 1918 Brinton started out on his newspaper project. Dur ing that fall he did not put in any time with the Stores company al- though he continued to draw his sal- ary until early in the year of 1919. Puts Money Back Upon his return from a trip to Nolarado. he stopped off at Beach and Belfield, N. D., and’ shortly after wnat two drafts for $1,000 each ap- peared at the Consumers Stores com- pany in St. Paul. When questioned regarding these drafts, Mr. Brinton stated that he had loaned money to some néwspapers in the western fart of North Dakota, and when asked for notes showing the loans, he furnished a note for $2,000, signed ; And I am not mentioning the criminal Northwestern Service Bureau, by J.°W. Brinton, director.” The -secre- tary and treasurer of the Consumers Stores company was not satisfied we im SERVICE. this schedule. INTEUOUALNVALAUHAUOGEQAPQULUGRUAAENUGERUAAUOUUAAUUCAOEUUAERUUAORUGEONUAAO EEUU fl ctor and officer as well as general | INAUVUTUUTUAA ERATE 'QS.5. Buy your groceries of ils and wear a smile of satisfaction. Our aim is to always satisfy with QUALITY AND For Saturday we have a complete line of vegetables and fruits: Yellow Bantom Sweet Corn, Cucumbers, Toma- toes, Water Melons, Cantaloupes, etc. EY PEACHES, PING CHERRIES, PLUMS, ORANGES, _ BANANAS, Ete. pe EERE SWIFT’S PREMIUM BACON—SWIFT’S PREMIUM HAM—SUMMER SAUSAGE, LARD, Ete. LS SWEET CREAM Our deliveries leave the store daily at 10:00 A. M. and 2:30 and 4:50 P. M.; Saturday at 9:00 and 10:30 A. M. and 2:30 and 4:30 P. M. Please ordez early, so we can get your goods to you by NUTT vice bureau and farmets at 100 ¢ on the dollar, and it is well known that at that time it was rumored in many. parts of the state that Mr. Brinton was borrowing money on newspaper collateral from one county and using it to build up newspapers in other counties. As a result of the difficul- ties over this situation Mr. Brinton resigned and withdrew from the Publishers National Service bureau.” ‘ Letter to Governor J. W. Brinton, it develops, according to the charges of the Fargo organ wrote a letter to Governor Lyny J vazier on May 17, 1920 elaborating upon affairs of the state. “Now, my dear Governor, I wish to set forth the following facts which you can substantiate by, calling for the official records as Governor and chairman of the industrial cqmmission and then call for the resignation, of Mr. Cathro as manager of the Bank of ‘North Dakota and insist upon the with- drawal of Mr. Lemke as a candidate for membership on the industrial com- mission as Attorney-general.” ~ Brinton says that shortly after the law creating the bank was passed J. R. Waters, then bank examiner, was appointed manager of the institution at a salary of $5,000 per year; that he was to get $10,000 the second year if} © his services were satisfactory, and that this agreement was violated by Cathro being appointed director-gen- eral at $10,000 a year and expenses. Against Ladd In another letter written to A. C. Townley, Brinton asked that Townley co-operate with Governor, Frazier in setting rid of Lemke and Cathro. In his letter to Townley, written May 17, 1920, he said: 2 “Now, Art, you know the League has taken on a hard fight by putting ‘add up for the senate against Gron- na and having Lemke, while drawing . big salary and expense from the League, to come out for office, and with his name flying at the head of the Courier-News, its owner in fact, using that paper to boost himself. This is all bad stuff and farmers are not so blind but that they can see it— Mr. Lemke using their. organiza- tion, their money and their news- paper: to elevate himself into office I never dreamed that, an_ official of the League, would steop to, this, and I think it is time for his retirement— 1 am demanding it. In fact. Ladd should have been,,put.on the indus- trial commission and ‘Frazier to the senate if Lemke insisted on opposing Gronna,. which I think is a mistake cashier of the Fargo bank, “And this is ‘what put Bill Langer off the trail as he was being informed by Jack Hastings and a bank ex- aminer as to what was being donc at the Fargo end. Langer was given access tO the letter files wherein a copy of a letter written by the Far- go bank showed that the quarter million ‘dollars worth .of notes had been sent by registered mail to the Bank of North Dakota. But of course the letter didn't show that the notes were taken back to Fargo in a hand bag by the cashier. Thus Bull in his haste to pull off a ‘midnight raid’ forgot to examine or look in the bank vault for the supposed missing notes but immediately and instead gave out press notice that Waters was a crook and had rediscounted the notes, and poor Crazy Carl failed to get into the State Bank of North Dakota to correct the Bull; and thus while my friend Mann was giving headlines to supposed looting of the state institu- tion and our deal old Fargo Fool’em was barking up a tree, the snug little bundle of a quarter million dollars of. questionable paper was securely lock- ed up in the Fargo bank.” And Bull Langer falied to win a reputation a a great detective and a follower of| idence. | Condition of Bank i ernor, you may not be aware of, as it illustratés and shows not only ‘that Langer was insincere in his charges against Waters, but it shows also, that Mr. Water position was i correct and the embarrassment and; sure destraction of the Fargo bank and the Nonpartigan League was only | prevented by his good business judg-! “HUMPTY BRE management of the State Bank—the records will speak for themselves. shall expect immediate atcion’ from plant in every town in our ter: and the State Food Produced by BARKER SS EEL a a tt tt te Et TE AUNGQANUUUOGANUOUAUOGRREUSGGNENEEUGGOQAUREAUUAGGRELGGOAEUEEUUAGAOOAUGUONAGROUUAAAERUEUUAOEAUUAAAUA our out) In six months we have grown from a small shop to the largest manufacturing’ HUMPTY DUMPTY BREAD’ is now on sale at your grocers in nearly is the same as you use in your own kitchen ~ . given us a perfect.score. Insist on ‘Humpty Dumpty Bread’ Phone 912. HNUHAOU UHHH | ecmncmnte THE NEW: ———— "| oa og Marshall Neilan’s latest ‘special feature, ‘Don't Ever Marry’ featuring Wesley “Freckles” Barry Marjorie Daw and Matt Moore Marshall. Neilan ‘produced “Daddy Long Legs”; “The River’s End”; “In Old Kentucky.” See his fourth big picture, “Don’t Ever Marry.” Monday—“The Sporting Duchess” Mr. Waters included notes of League enterprises, League organizers as well as a personal note of Mr, Lemke's and other League employees. Al- though this action on the part of Mr. Waters saved the situation, it only widened:.the breach between. the two bank heads, as Waters ‘took too} much ‘credit and told too many people: (Continued on Page Five) } MOTHER! -. “California Syrup of Figs” Child’s Best Laxative: Accept “California” “Syrup of Figs only—look for the name California on the package, then you are sure your best. and ‘most 1) s| harmless physic for the little stomacit, Children love its child is having the liver and bowels. fruity taste, Full df bottle. You must say “California.” “Now I mention this incident, Gov-) e=———_——_———————— a Would Iike*to rent’ 16 or 12“guage gun for this season, Very best of care ahd guarantee against loss or breakacie. Mail description to Box 161, ‘Bismarck, N. D. ment—as the paper turned down by <qqqureeatcanarsuneineneneess HUE In the past sixty days we have trebled DUMPT! the city. ritory. Our formula Inspector has again BAKERY Bismarck, No. Dak. COLUMBIA *. offers Shirley Mason “LOVES HARVEST’ ‘A dramatic comedy of ‘love:and thé stage.” Also Hoot Gibson in a thrilling western drama. Monday, Norma Talmadge | PHONOGRAPHS COLUMBIA RECORDS ON EASY TERMS IF DESIRED _ COWAN’S DRUG STORE j Richholt’s Cash and’ Carry clions on each |} [ Phone 631 | Grocery [7th & Thayer | as GOOD TO EAT WE HAVE IT Our Canned Goods are as Fresh as in Harvest Tim Marjo Salmon, 1-pound size; regular 30c seller ; 1 can. for 18¢; 2 cans for........ , F 35c We just happened to be able to . buy up:a good lot of this splendid salmon. ‘These prices for: Satur- day only. You had better hurry. Red Ace sugar corn, No. 2 size; 1 can 15¢; T cans for... vcs sses $ 1 .00 B nis aed only) 3 ic-Nic Ham, good and- juicy, per‘pound........ 28c Fresh Dressed Chickens, just from the farm; per pound ....35¢e “(Sweet cream for Saturday) The Original Cash and Carry Store BLAME YOURSELF—If you pay too much for your gro- ceries. This store offers you the opportunity to buy right but if you are indifferent and careless, and pay credit store prices, you can not expect to enjoy the saving that careful duvers at this store enjoy. Try us tomorrow. : Cottage Cheese and Buttermilk. No order taken over the phone for this Fleishman’s Yeast Fresh Daily Bakers’ Goods “We Thank You” WATERMELONS | PEACHES PLUMS PEARS GRAPES APPLES CUCUMBERS SWEET CORN TOMATOES CAULIFLOWER CARNATION, DANISH PRIZE, ARMOUR’S MILK Lay ina supply before we advance our price. Milk has raised to $8.75 a case wholesale, but we have a limited supply at the old price. Act now. HEINZ’ VINEGAR Last week’s ad caused vinegar to go out nicely. We still have a very good supply, so be sure and get yours before long. NATIONAL BISCUITS, COOKIES AND CRACKERS. ~ We always have a-nice line of these goods which always please. 118 3rd St. Both Phones 211 Last Delivery Saturday 4:30 p. m. Other week days - - 4:00 p. m. , CLOSE AT 8 P. M. SATURDAY EVENING