The Bismarck Tribune Newspaper, January 24, 1917, Page 1

The Weather | Warmer tonight. | THIRTY-SEVENTH YEAR, NO. 21 THE BIS UNITED PRESS BISMARCK, NORTH DAKOTA, WEDNESDAY, JAN. 24, 1917. ASSOCIATED PRESS INTRODUCED CONSTITUTIONAL | |. - SAFEGUARDS FOR FUNDS OMITTED Fight Made by Divet Fails To Protect Public School and University Moneys HOUSE BILL 44 MAY GO TO THIRD READING TODAY Committee on Whole Rises, Re- commending Passage of Bill as ‘Amended TEMPERANCE BILL UP. House Bill 37 to create office for one or not more than three special law enforcement officials was up before the house late today. It has been amended to give the ap- pointive power to the attorney general and to permit him to hire anyone to come into the state in the capacity of.. special. sleuth. These amendments proposed in committee were endorsed by the house today. Representative E. E. Cole of Fargo led the attack on the meas- ure, i The committee of the whole re- commended the bill to pass by a vote of 53 to 38. Cole finally switched from opposing bill to supporting it. Constitutional safeguards thrown by the present. constitution around the state’s trust funds for its public schools and educational institutions were intentionally omitted from the new constitution proposed ‘by house bill No. 44, when the. house majority this morning; as a unit voted down Representative Divet's amendment to Sec. 158 of the new constitution, read- ing as follows: “Provided, however, that none of the school funds ‘shall be invested in bonds issued or guaranteed by the state of North Dakota or any political sub-division thereof under the. provi- sions.of Sec, 173. of this. cqnstitution in excess of the debt limit specified in Sections 170, 171 and 172 of this constitution.” 5: ‘ To Guafg, Sacred Trust Divet explained; that this amend- ment was introduced with a. view to guarding the sacred trust represented in the ‘school funds of this state and to exclude them, from speculation, “I think,” said the.minority leader, “that this amendment should prevail to the end that tl hool fund, this sacred trust which our forebears have com- mitted to our possession, shall never be invested in this class of wildcat eecuritites that is proposed to be is- sued in unlimited amounts” In opposing the amendment, Church stated that’ this section was omitted from the new constitution because ample statutory protection now ex- isted and would continue to exist so long as the legislature desired it. Goes to Third Reading Debate on the new constitution was brought to a close after a half-hour session this morning, when C. F. Peterson maved that when the coin- mittees on the whole rise it report for passage house bills that the committee recommend the bill to pass and to, be vlaced on the third reading. No. 44. as amended. This motion carried, and was followed immediately by a second motion from Peterson that the committee rise. The speaker then took the chair, and the report of the committee on the whole was received and accepted, and house bill No. 44 was ordered advanced to third -read- ing. seoqat shi Inasmuch as thig; morping’s session was a continuation of yesterday's legislative day, house bill No. 44 can, if enrolled in time, come up for third reading this afternoon. It is doubt- ful, however, whether the enrolling committee will report it ready for Passage until tomorrow. F No Patriotism or Morality Another amendment proposed by Divet, and which went down before the league steam rolled, was for the insertion of the words “patriotism and morality” in section 141 of the new constitution, which replaces 147 of the old. Fraser opposed the amendment on the ground that “pub- lic spirit” and “purity” which appear in the new constitution are synony- mous with “patriotism” and “moral- ity.” Search For Safety 3 “Yesterday we made a search for a limit to the amount of indebtedness which the state may incur or guaran- tee, and we found none,” said ‘Repre- sentative Divet in offering his amend- ment safeguarding the public trust funds. “Now we are conducting a search for safety, and we fail to find that.” Townley Satisfied President Townley after the com- mittees arose this morning advised The Tribune that he is well satisfied with progress being made in the con- sideration of the new constitution. Townley goes to Hillsboro on Satur- day to conduct a mass meeting for immediate revision. A large number of petitions, printed in the Non- Par tisan ‘Leader last week, and directed to W. J. Prater, secretary of the sen- ate, as per instructions ‘from the league, are being received, addressed to various senators. They probably will be read in the senate this after- noon, House. bill. 44, the. Nompartisan (Continued ca ro) | personal use. Sen. Heckle Places Lid on Booze Introduces Practically the West Virginia Law Recently Up- held by Supreme Court POINT INVOLVED IN . WEBB-KENYON ACT Will Do Away With Necessity of Special Officers To Enforce Liquor Laws Senator Heckle, of Ransom county, the man who ably assist- ed in defeating the special law enforeemnt salary grab aet, two years ago in the senate, today in- troduced a bone dry law for North Dakota. It follows closely the West Virginia law, the constitutionality of which was upheld by the Unit- ed States: supreme court in eon- neetion with the Webb - Kenyon aet covering shipments of liquor into dry states Tf the law passes, North Dakota will be as dry as the great Amer- ican desert. There will be no need for Watkins and his c¢o- workers. It will become illegal to ship liquor into the state for tions are provided but they are so safeguarded that no one ean procure liquor for home consump-} tion, Senator Martin. of Morton, in- troduced a modified form of a bone dry bill. WOULO BUILD FARMERS” HOME A bill calling for an: appropriation of $10,000 was introduced in the house early this afternoon by Representative Byrne, Exkert, Kurtz, Hoare and Du- buis, providing for the eréction of a two-story frame building to be known as the farmer’s home on the grounds of the North Dakota erimental sub- station at Williston for the purpose of providing headquarters for farmers’ gatherings, institutes, exhibitions and conventions, BANK EXAMINER OF NEW YORK LOSES JOB (Associated Press) Washington, Jan. 24—Removal of Charles Starek from office as chief national bank examiner, for the sec- ond Federal Reserve district, with headquarters at New York, and the appointment in his place of William P, Malburn, assistant secretary of the treasury, was announced today by Comptroller Williams, The reason for removing Mr. Star- ek was not made public in the Comp- troller’s statement, BALL PLAYERS WOULD JOIN LABOR UNIONS ‘Philadelphia, Jan. 24—The appli- cation. of members of the Baseball Players’ Fraternity for membership in the American Federation of Labor will be considered late today, officials of the Federation of Labor announced here this afternoon. TO RUN FOR SOCIALISTS’ SEAT. |; (Associated Press) Berlin, Jan. 24.—Franz Mehring, the German Socialist leader who was re- cently released from internment, has accepted an invitation to contest the seat made vacant by the imprison- ment of Dr. Kar] Liebknecht. Only a few exeep-! SENATE. DECLINES! TO DEBATE ON PEACE SPEECH Senator Cummins Resolution To: Discuss Address of President Voted Down OPINION DIVIDED ON PROPRIETY OF MOVE New York World Says Civil War, Ended in ‘‘Peace Without Victory” TRUE AMERICANISM “I believe President Wood- row Wilson is following the spirit of true Americanism in his support of the league of nations’ plan, having for its purpose the bringing about of universal peace and form- ing a real protectorate for the weaker nations,’ assert- ed Governor Lynn J. Frazier of North Dakota, this after- noon, in an interview to the United Press correspondent. (United Press) ; Washington, Jan. 24.—The United States senate today declined to debate on President Wilson's speech to the senate last Monday. A resolution by Senator Cummins, of Iowa. calling for the debate on the issue lost on a vote today. The debate was to have been held next Monday. Senator Cummins demanded action on his resolution calling for the dehate immediately after the senate conven- ed today. He declared that the speech was the most important evet ‘made by an executive of the United States and that he did not desire a protracted debate. He argued, however, that it was do- ing the country justice and the presi- dent due courtesy to let both know , What the senate thought about the address, SOUTH AMERICA AGREES, (United Press) Buenos - Aires, Jan, 24.—South Am- erica was generally delaying her ver; dict on. President Wilson's senate speech today, pending a better under- standing of his aims, Among the men in the street, there was an unexpect- ed unwillingness expressed today against the extension of the Monroe doctrine for the apparent fear that such an extension would mean an abandonment of the doctrine. On the other hand the press was overwhelin- ingly in favor of the acts of President Wilson. 5 CIVIL WAR PEACE, (United Press) New York, Jan. 24.—Peace without victory terminated the Civil war, the New York World today printed, in editorially defending the president in his speech to the senate, against the attacks on his phrase made by news- papers of Europe. The World states that in the Civil war the North crush- ed Southern militarism, but it did not impose upon the Southern losers any of the terms of victors, FERGUSON OPPOSED. (United Press) Dallas, Tex., Jan. 24.—Gov. James E. Ferguson, Texas: “I do not think that we should enter a league to en- force peace. We have kept out of Europe's affairs thus far. I am un alterably opposed.” BACK PRESIDENT. (United Press) Harrisburg, Pa., Jan. 24.—Gov. Bum- baugh, Republican, Pennsylvania: “There should be no difference be- tween us on international problems. !We should stand behind the presi- | dent.” | TRANSMITS SPEECH. (United Press) Berlin, Jan. “24.—Ambassador Ger- ard today transmitted to the foreign office a copy of President Wilson’s speech to the United States’ senate on (Continued on page two. Little Tots Bay Alone, but cheerful in her sufferings, with all of the fingers of one hand and all except the thumb of the other gone as a result of her terrible experience in a deserted shack near Beach, where she was marooned for the night by a blizzard, little seven-years-old Phile- mena Musil, a patient in the Bismarck hospital, is not forgotten. This morning Gladwyn Mitchell, young daughter of Mrs. Wm. 8S. Mitcl ell, presented to fellow students of the sixth grade at the high school'a peti- tion for fands with which to buy flow- . Flowers for Unfortunate Blizzard Victim in Local Hospital The school ers for the little sufferer. children contributed liberally, and henceforth dainty blooms each day will gladden the heart of the lassie who has been so brave in her mis- fortune. Mr. and Mrs. Joseph Musil of Beach, parents of little Philemena, have been unable to remain with their daughter here. Separated from parents and all of her friends, Philemena will find welcome comrades in the volunteer sisters and brothers of the high school, who plan to visit her as often as the hospital rules will permit. STOCK BROKERS TO GOLOPERATE IN LEAK PROBE Consent To Give “List of Men Profiting on ‘‘Short’’ Sales at Time of Peace ‘‘Tip’”’ ATTORNEY HAS TILT WITH CHIPPERFIELD Illinois Congressman Objects 1o Manner of Boston Attorney in Conducting Inquiry (Associated Press.) New York, Jan. 24.—The members of the New York Stock Exchange who have been requested..by their board of governors to make available for examination by the rules committee of the house, records $f their transac- tions during. the period when ‘Wall street was supposed to have received advance information ~-on the presi- dent’s peace note, are. not expected by the board of governors to with- hold information. This assurance was given by President Noble at the resumption of the leak inquiry here today. Mr. Noble appeared to inform the committee of the adoption last night of the resolution of the board requesting the 600 or so brokerage houses to turn over the desired data for submission to the rules commit: tee’s experts, who will examine them to learn the identity of the operators who were dealing heavily on the short side of the market, prior to the publication of the peace note. Replies Tomorrow. Sherman L. Whipple, the commit- tee’s counsel, wanted to know at the outset how soon’ the first responses might be expected. Mr. Noble said copies of the resolution had been gent members thi safterngon and that sonte replies’ provably“ttutd ve ex: pected by tomorrow or the day after. The attorney then resumed his ex- amination of Noble on stock market methods, particularly about “short” sales. Noble obtained permission to ave his counsel, IH. K. Pomeroy, chairman of the stock list committee at his side. Criticises Whipple. ‘Representative. Chipperfield of Ili- nois, whose clashes with Tho: Lawson enlivened the hea Vashington, injected sume py into the inquiry today sizing Whipple's methods of examin: ing Noblo and declaring he would have more to say in the future as individual member of the committee, without regard to counsel or comm tees. During Whipple's — examinatic Noble regarding the retiring of from the market, attorney and witness failed to agree on the inter: pretation of a “pool.” \Whipple then asked. Noble if he had not had one thing in mind and said another. N ble started to reply, when Chipper- field, in a loud voice interrupted. ie id, “I don't (Continued “on Page Three) LID GOES DOWN LPOW GRAND FORKS NEXT SUNDAY (Associated Press) Grand Forks, N. D., Jan. 24.—Can- cellation of orders for Sunday news- papers, and the buying of large sup- plies of cigars was in progress here today, following an announcement is- sued by States Attorney T. B, Elton, that the “lid” would be clamped down tightly on this city the coming Sunday. According to the announce- ment, all houses in which sales are forbidden by the Blue Laws will be closed promptly at 12 o'clock Satur- day night. MESSENGER WITH TANS VOTE HAS NOT REPORTED (United Pr Washington, Jan. 24. Lost, one messenger bearing the official vote on the Presidential election from Utah. The last steps in the completion of last fall’s Presidential election were | held up today pending the arrival of the men from Utah. ‘ The secretary of State’s office noti- fied the Secretary of Utah that his messenger bearing Utah's presiden- tial electors’ votes, was lost, strayed, or stolen. The Utah official was instructed to’ secure the one remaining copy of an]. of |, Famous Boston Attorney Who Is Handling Note Leak Probe Sherman L. Whipple, shown here, Is conducting the house committee's in- quiry into the alleged “leak” of the president’s peace note into Wall-st. He is a famous trial lawyer of Boston. SERIOUS WRECK — ON PENNSYLANI (United Press) Oil City, Pa., Jan. 24.—All available ambulances this afternoon were rush- ed to the McClintonville railway yards where two Pennsylvania line trains were reported smashed up with sev- eral injured, A passenger train from Correy, is reported to have jumped the track and a fast freight crashed into the train almost instantly. |HOW TOM LAWSON AND HIS. FRIENDS WADE CLEANUP John Moody, Financial Writer, Tells in Interview How Trick Was Turned RECONMENDS WORE LIBERAL LOAN ON STOCK Jackson of Hurley, 8. D., Farmer. Banker, Says It Is the Best Security MYSTERY OF SHORT TRADING,EXPLAINED New York, Jan, 24.—How did Thom- as W. Lawson and the ‘bear’ crowd make money when stocks went down » with a bang—that is, if he did make money? Can mon- ey be made when stocks are ping on the change? KRUM SPEAKS ON THE SUBJECT “FORAGE CROPS” THUR SDAY’S PROGRAM (Auditorium) 9:00 A. M. “Mutton and Wool Production « + and Marketing in North Dakota’ WH man, » Peters, animal husband- s \ North Dakota experiment © A H Z : 10 A, M. ~") “Modern Methods of Dairy Pro- © duction”--H. Kildee, chi partment of dairying, Univer of Minnesota 11:00 A, M. epwenty Years of » With North Dakota's Dairy Cattle Breeding Cir H. Shepperd, vice director, orth Dakota experiment station. ¢ 1:30 P. M. 5 Sas ex- | I Jonn Mooby “You mean how are short sales made,” said John Moody, financial writer and expert, one of the best in- formed men on Wall Street, oe : Very Simple. Fiat ess y ste r “That is very simple, Suppose you M Hee session oF Ne atale | sell 100 shares of United States steel 6:30 P. M iat 125, going on the theory that steel z stock will be worth less money short- ® ly. The customer goes to a broker, de- posits a ‘margin’ or 10, 20, 30 per cent of the price of the stock (which at 125 is $12,500 for 100 shares), and ins structs the broker to sell 100 shares ,at 125. The broker executes the or- der, That customer's account stands short 100 shares of stock, Now ac- cording to the rules of the stock ex- change, the broker must deliver 100 shares of stock to the buyer tomor- row. The broker goes into the ‘loan crowd’ and borrows a certificate for convention of North Dakota live-stock | 100 shares of steel stock. That certi- men, who opened their two-day meet-|ficate, at the market price is worth ing in the Auditorium this morning. | $12,500, and the broker must put up Secretary Krum spoke on the subject |that amount of money as security for of “Forage Crops as a Factor in Econ-|the loan of the stock. The broker omical Pork Production.” ; uses his borrowed certificate to de- Recommendation of a more liberal liver to the man to whom he sold in policy on the part of all rural bankers the first instance. in loaning money to farmers in order} “That is the way the transaction| to build up a live-stock industry in the stands until the stock is ‘covered.’ To state, was made by F. E. Hurley, S. D..' cover is to buy enough stock to cover farmer-banker and a successful cattle a sale. To broker, for the customer, breeder. Banker Jackson made the has sold 100 shares of steel at 125. assertion that his bank has loaned! But the customer does not own any money to young men in the home lo- steel stock; he has merely borrowed! cality for the purchase of pure-blood 100 shares, putting up for it $12,500. stock and that his bank considered He stands short until has has secured | these loans as the safest investment 10u shares of stock to deliver to the that could be made. He explained in person who loaned the certificate. detail the method of making the loans; “Suppose the transaction stands for, and the supervising of them, North a week or so. In ordinary times he, Dakota. he pictured, as one of the has no premium to pay because the greatest live-stock producing centers man who loans the certificate has the in the world, if the bankers would $12,500 to use. Of course, if the mar- adopt his idea. He was emphatic in ket should go up, instead of down, as his statement that there could be 00 he expects and hopes it will, he will loss. thave to ‘cover’ by buying steel stock One hundred live-stock men from at a higher price than he sold for, and every part of the state, fifty of them in that case he will lose, or if he con- being new members and in attendance tinues to stand ‘short’ he will have to ‘Another hundred members are expect- keep putting up additional margin as ed on the arrival of the afternoon and jong as the stock goes up. the evening trains. According to W.; “But he made the sale in the first H, Peters, animal husbandman of the instance on the theory that the mar- North Dakota experiment station, and ket is going to break. Suppose it does who will address the convention to’ break ten points, and he decides that morrow morning on the subject of js about as far as it is going. He de- “Mutton and Wool Production and | cides to ‘cover.’ He gives his broker Marketing,” it is surprising to the of-!an order to buy 100 shares of steel at ficers of the associations to see such 4/115, That takes $11,500, and the cer- large representation from the Slope jtificate for the 100 shares, which he country. gets by purchase, goes to replace the Legislators as Guests. one he has borrowed. The certificate quet to members of the as- ion ana friends. That the cost of pork production ean be reduced one-third by growing alfalfa for pasturage feeding only a limited grain ration, and the turnin of hogs into the corn field allowin, them to harvest it themselves, was one of the striking points made by Harry G. Krum, secretary of the Amer- ican Yorkshire club, St. Paul, in his address before the fifteenth annual drop-|; (INE DESTROYER OF ALLIES 1S REPORTED SUNK Naval Battle Fought in Darknesa and in Intensely Cold - Weather GERMAN CRAFT RETURN — BUT SLIGHTLY DAMAGED Only Meagre Detaila'at: Sapage. ment Have Been Given Out °; by Admiralty at London Berlin, Jan. 2 stroyer was: sunk, and another, was observed ta’ be in'a sinking condition in the North ‘@®a naval engagement, the admiralty announces, One Ger man torpedo‘boat put in at Ymuiden in a-damaged condition.: The others returned with sight damage. The announcement says; “In an enterprise undertaken by & portion of our destroyer forces, an en- gagement occurred early January. 23, with British naval forces. One enemy destroyer was sunk. Aftef the en- gagement a second was observed vy our aeroplanes to be in a sinking cop: dition. Loss of 47 ‘Men. + “One of our torpedo boats whic] was in distress owing to damage. tained, according to. news received, has arrived at Ymuiden. All the oth- er boats returned with slight dam- age.” : The official British account of the engagement which was given out } night said a British destroyer was pedoed with a loss of 47 men, and that a German destroyer was sunk. FOUGHT IN DARKNESS, ..,» (Associated Press) e London, Jan. 24.—Special dispatch: es from Holland give stories of the battle between German and British destroyers in the North sea, but the details, on which some points are cows’ * flicting, are mostly derived from heat! say and not substantiated. It seers’ certain, however, that the main en- gagement began about 2 o'clock ‘in the morning and lasted until about seven. It was fought in intense dark- while the severity of the cold judged from the fact that eight g s on the V-69, the German flag- ship, were so frozen to the deck that they had to be hewn free with axes, No Confirmation, The correspondents report gossip that seven to ten vessels were sunk, but there is nothing confirmatory in regard to this. According to one ver- sion the Germans started from Helgo- land with the intention of raiding the British coast, but were driven back toward Flanders, where some took re- fuge in Zeebrugge. It is confirmed that Commander Boehm of the V-69 is alive and accord- ing to one report uninjured. It is stated that he superintended the re- moval of the crew of a destroyer, a8 examination of the ship showed the impossibility of repairing her within 24 hours. This of course, implies an intention to intern, but nothing off- cially is obtainable in regard thereto. A number of survivors of the sunken vessel have arrived on the east coast. GUARDING BOAT. (United Press) London, Jan. 24.—Persistent reports from Holland today were that‘ six to ten German torpedo boats had been destroyed in the naval action on the North sea on Monday. The official statement that one German and one British torpedo boat had been de stroyed remained unchanged today. Dutch dispatches today were that Dutch sailors were guarding the Ger- man torpedo boat V-69, which was forced into a Dutch port during the engagement, but that the German crew of the vessel was planning to convert it into a peaceful vessel and thus secure clearance papers for it for a dash to sea. ELUGTING MAN TO SUCCEED EQUITY HEAD (Associated Press) Wausau, Jan. 24—The National Directors of the Society of Equity. met in secret session today to select @ national secretary to succeéd, H. G. Tank, of Wausau, and transect other business On the board is 4. P. Johnson, of Tolley, 'N. D.. elected Railroad Commissioner of North Dakota. PLEASES CRANT ; Grant county is pleased with Ses- Senators and representatives of the' returned, the broker gets the $12,500 fifteenth legislative assembly have pack, and the customer has made been invited by Alex Macdonald, ‘$1,000 on the deal, less commissions, president of the association, to attend “and so on. the session tonight. Speakers will be; “That is how short trading is ac the official vote of Utah and rush it to Washington by, another messenger. ‘All electoral votes were to have been in last Monday. John N..Hagen, commissioner of @&-}complished. On the other hand the riculture of North Dakota; A. E. Cham }Process. ig. reversed and money, x gpinin._ service commissioner ce Se made or lost on a rising market._ The ® (Continued on Page Three.) (Continued on Page Three) * ator Cahill’s bill No. 75, introd yesterday, compelling the e3t7 ment of reciprocal switch'ne “a! between paralleling — railroads, aimed. particusariy. ai the. cot -Grant- counties, with: regard to. thS operations. of the: Mitwaukeo.-