The Bismarck Tribune Newspaper, February 4, 1919, Page 1

a de “the average’ Joss ratio in'North Caro- pea peee. THE WEATHER Fair tonight. — THE BISMARC =aat THIRTY-NINTH YEAR. NO. 36. BISMARCK, NORTH DAKOTA TUESDAY, FEB. 4, 1919. ROYLANCE IN DEFENSE: OF INCOME TAX League Expert Does Not Believe It Will Drive Insurance Companies Out i TO EXEMPT FARM LOANS Believes Surplus Invested in} Mortgages in This State Should Not Be Taxed | A premium in the form of exception | from the three per cent tax on net) income proposed by Senate Bill 37 was suggested by Prof. W. G. Roylance, the league’s tax expert, appearing, be- fore the joint committee on taxes and} tax. laws this morning as a reward to insurance companies which invest their funds in North Dakota. Prof. Roylance insisted that the three per cent tax onnet incomes should apply to insurance companies, whether their net profit be large or small, but he also argued in favor of exempting from such tax incomes de- rived by insurance companies from’ loans made on farm lands in North | Dakota. Quoting from his statistics he showed that the Union Central Lite insurance Co. would save three per cent on net income derived from more than’ 0,000,000 which this con: cern has invested in North Dakota | farm mortgages. He referred to the Union Central because it has a larg-) er proportion of its funds invested in North Dakota than has any other com- pany engaged “in business in the state, a May Drive Out Companies. Harry Curren Wilbur, secretary of the ‘North Dakota underwriters’ asso- ciation, appeared before the joint committee to protest the application | of the income tax of three per cent) net to incurance companies, He point- ed out that these companies already ure taxed 2 1-2-per cent on their gross | receipts, and that a three per cent; income tax would make the total tax) burden on their net receipts 5 1-2 per cent. He expressed the fear that’ this tax might prove so burdensome that it would drive stock fire insur- ance companies from the state. Because of such budensome taxa- tion said Mr, Wilbur, fire insurance companies: have already withdrawn from:-North Carolina and , Missouri. per cent. In North ee ota’ the average load {s)59:3 per cent, ata the! TaEUPanG man, who yvolun- teered the iurther information that during the last five years the losses plus: expenses of, operating ‘in North Dakota have averaged 99.3 per cent ‘of the total premium income of the’ fir insurance ‘companies ; doing busi- ness in this stal le; ‘pupmitted fig- ures showing that! df, the $379.000,000! annual revenues of all the United States fire Mgurance compantes ‘from their business in 48:states, North’ Da-, kota furnishes * avout | $3,000,000 or eight- tenths of one per. cent, and} that of this $3,000,000 all but seven-; tenths of one'per cent is absorbed by| expenses of operation and losses. rhe taxable net income of domestic stock insurance companies in North Dakota would, therefore, be but $21,- 000 per annum, which, assessed at’ three per cent under the income tax) Jaw, would yield $630 per annum. | Roylance ‘insisted that if the sgate were to exempt from the income tax; all industries and enterprises and bus- inesses which do not show an average | net earning, the farming industry, tne grocery business and various other enterprises would be entirely exempt. | it is a proven fact, said Prof. Roy-! lance, that farming west of the Mis- souri river in ‘North Dakota has not | shown an avérage net. income from the organization of Dakota territory. This condition, he stated, is natural during the period in which a region ig being developed. There were, he said, exceptional instances where net earnings of ten. to twenty per cent) could be shown, but on the other hand there were many cases where all; earnings were absorbed in payments on the -land or its improvement, or| through crop, failures, and as @ result there was no.average net income on the farming industry as a whole-west | ¢ the Missouri. | * only recently, he said, has farming east of the Missouri shown an aver: age net income. Surveys of the have shown that lina, ‘was: grocery business it operates at an’ average net loss, said the tax expert. ‘There are exceptional instances, in the case of chain stores or unusually fortunate or well managed grocery enterprises, where a substantial net income has been shown, but the aver- age net income is reduced to nil by the larger per centage of; failures, losses or establishments in which the propiretor earns only a fair wage for his own time and labor. Roylance insisted that the income tax against insurance companies should stand, as- serting that if the netincome was nil there would be no income tax to pay: and that if the net income was large, the individual company could afford to pay a substantial income tax. He argued against any tax burden so ex: cessive as to increase the cost of in- surance to the consumer, but he aid no believe the proposed income tax would have that effect. ROB STREET CARS New York, Feb. 4.—Five armed men in a touring car held up two street cars in a suburb of Brooklyn. Two of the men pointed their revolvers at the morotmen and robbed the conductors. Later several of the robbers boardcd @ car and compelled the matormen to put on full speed. Then the bandits fobbed ‘the conductor. Ss COMPELLED. TO RETREAT Archangel, Feb. 4—The Russian de- tachment operating with the Ameri- cans retreated several versts yester- day. After having unsuccessfully at- tempted to *attack. the -Bolsheviki forces. Artillery action continues on all froata, ‘ ees ;much opposed to the bill, which would | | fire departments. HAZEN QUINT: In First Interscholastic Game’ tet of the Washburn high school trav- eled to Hazen on Friday, and in the first interscholastic basketball ever played at Hazen, sustained defeat by a score of 24 to 14. team outplayed their opponents so far as team work was concerned but it! erty of could not negotiate the baskets, which] prises or industries in amounts no’ were trice the usual distance from’ exceediitg the backboard, Spalding rules. is Recording to the Reach rules, it is’ of state-owned utilities, enterpris said. athletic field is most auspicious and| it is hoped ‘will’ result in a closer: tie between ‘it: and: Washburn, The. Wash- burn boys reached Hazen, by cross: ing the Missouri: river to Hensler. and | fromthere ‘t#king’ the Northern Pa-! cific miles, away. 7] arivals. to 6 1-2 cents a dozen. The new quota-; ‘tions were from 33¢ to 35c. REPEAL OF-STATE AID IS OPPOSED Bill Now Before House Would | Kill Fire Companies | House Bill 130, repealing state for fire departments, would kill to 80 of the fire companies in the state if made law, State Fire Marshal Reade informed the, house committee On appropirations this morning. The fire marshal declared’ that thic ‘com- paratively small amaunt of state ait’ | i | received by the fire: departments. of |- the state from fire insurance premi- ums paid. in their respective commun- ities has contributed greatly to the maintenance of . these organizatio.as/ and/ that without such aid many of; the departments will: lose interest'and | gradually disintegrate. He was very repeal the present ‘statues -proviiing | for the payment of funds for the or- ganization of city, town and village TAKES NPLEAN TEAM'S NUMBER’ | Ever Played in Mercer Town It Wins i Washburn, N. D., Feb. —The quin- The Washburn prescribed by the The Hazen equipment ; The Washburn team comprises only one of last year's players, but it gives; issue bonds {n any amount not e promise of doing some good work this~ceeding $50,000,000 to build, maintain season. some fine individual work and with) more. experience will be able to give io enable the state to take advantage | ; a@ good account of themselves. Shaw is to be congratulated with the fered in the Bankhead amendment to timber he has and for the work he! the federal post: roads act, which aid has. put on it. The Hazen boys displayed; Prof. | fi i The Washburn boys expect to get) jtheir revenge on the home field in two weeks. Washburn. high schoolgirls -will play the preliminary game. It is espected that the Hazen’s initial appearance in the north, a distance. of thirty; Hazen a thriving town of 450 peo- ‘ple, with’ fine modern brick ‘buildings, | and comfortable homes, only five years | ago ‘was just a prairie. credited with having the second. best consolidated school building in Dakota. ‘Now’it is’ North} . EGGS GO DOWN. Chicago, Feb. 4.—The cost of eggs/ came down today owing to plentifuljon “The Life* Beautiful.” i ‘ bt | "Mrs, English is accompanied by her’ fected. Wholesale. prises fell 4 1-2) FIRST PICTURE OF PEACE CONGRESS > Here’s the first photo to reach America of the formal openi English. Col. House had not $50,000,000.00 NOW PROPOSED League Would Atmemd Consti-, tution to Permit Bonding of North Dakota MOTHERS’ PENSIONS LOST Representative, Harris Fails in| Effort to‘Resurrect House Bill No. 90 ‘Discovering that although the con-| stitution as amended authorizes the levying of taxes for road purposes and permits the use of any fund available 4a the treasury, to be replaced later through such takes, it does not pro- vide for bonding .the state for high- ; way construction, Senator King on} Monday withdrew the high ways com- mitteo bill authorizing the issuance of $4,000.000 in highway bonds and FOR HIGHWAYS | DECLINES TO. __ MEET BOLSHEVIK SEaGIUS SAZONOFF noff is a former Russian min- ister, and now represents the Ye- katrerinodar government and the {Omsk Siberian government, but he doesn’t approve of the proposal of the peace conference that the Bolsheviki substituted for it.a concurrent resolu-|he included in a conference to, de- tion amending the coustitution to au- thorize the issuance ot highway bonds to not exceed 950,000,009. Sonator King s concurent resolution, which would go to the people for ap- proval at the’ next general election, amends Section 182 of, Article 12 to! provide that “the state may issue or; guarantee the payment of bonds, pro-! viding, that all bands in excess* of $2,000,060 shall be secured by first mortgages “upqn real estate, in amounts not, to\ exceed one-half its value, or upon real and personal prop-; state-owned utilities, enters t ii ' its value. and, provided further, that the, state shall not issue| or guarantee bonds upon the property ; OF} ndustries in excess of $10,000,000, and i provided further that the state may) and repair highways within the state.’ The purpose of this amendment is of the much enhanced federal aid of- i must .be matched dollar for dollar by the state, Senator King explained. Mrs. ‘Lilla?G, "English “Closes Talks with Union Meeting * at Methodist Church Washburn, N. D., Beb, 4—Mrs.’ Lil-| JayG.e English, gave a most successful series of ‘le: tures at Washburn, under the aus-! pices of the school board. She held; a big union meeting at the Methodist | church on Sunday evening. She spoke of the strike cf the textile manufac-| {turers found virtually all plants af- | Sheets leaves today for Rugby, whe: |tomorrow he will represent. the state tt whose trial ~will finally begin tomor- itow before: Judge Burr, at Rugby. ‘social hygiene’ worker, | reached ‘east’ termine what shall be done about Rus- sia, and he avers, he will not take part n such a conference. OLSON OF MINOT TO BE TRIED ON. SERIOUS CHARGE State has Three Felony and One Misdemeanor, Countis Against Hotel Man Assistant Attorney General A. E. in its prosecution of Olaf A. Olson of ‘Minot, charged, as. a result of Lang- fer's 1917. raid of Minot, with accépt- Ing the proceeds from. prostitution. j The notable feature of tho case is that ~-bon is ‘rated‘as one of: the wealthiest men in’ North Dakota. | : Vofi. the £ WASHBURN: HAS : City he is charged’ by the state! with , renting rooms to prostitutes and <with ‘AS. propietor ington hotel. in ‘the, Magi yexacting from them.a higher rate than ML | charged. legitimate “trajle. Three fel- ‘ t # onieand -one», misdemeanor are : = i cuarged, Olson’ took a. change “of a. aE lvenne from! Judge Lcighton: of Minot and then ‘bécamo: ill necesistating a turther postponement.’ of the case, MOVING EASTWARD. Norfolk. Feo. 4.—A’ blizzard and ‘is. working PLANTS AFFECTED, Lawrence, Feb. 4.—The second’ day The Everett mills were idle. daughter, who is a most accomplished ; Four of the woolen mills were operat- fultist and whistler, Jing only a few departments. RRR arrived when this:petiure was takesy:mor had | jthe- recent general election, eliminat- jon the emergency clause. In the house | sisti TRIBUNE [== LAST EDITION } - PRICE FIVE CENTS SLACK DAY FOR BILLS | IN SENATE House Fritters Away Time in Discussion of Wide Sleigh Measure { { — i { 1 HENRY FORD IS QUOTED ; Only one other new bill was intro- jduced in the senate Monday, Senate Bill 148 by Mortenson related to the jlicensing of ferries, providing that |when a stream was bounded by one ibank in North Dakota and the other {in another state, the laws of North {Dakota should govern. Further consideration of Senate Bill 66, relating to vocational training, was indefinitely postponed, Senator {Stenmo, chairman of the committee on education, explaining that it was an exact duplicate of Senate Bill 63, which already had been reported out for passage. In the house Senator Ployhar’s con* current resolution conferring the hon- orary title of president emeritus of the Valley City normal schoo] upon Dr. George A. McFarland, was re- reived and referred to the committee on state affairs, Some debate was devoted in both houses to the question of whether un- der the constitutional amendment in- itiated by the league and adopted at the e, health and ‘Safety rate vote was required ing clause,” a se] ting of chell was a committee Sherman, O'Connor and 1 named by the chair to obtain an opin- ion on this subject trom Attorney General Langer. An effort by Rep. J. A. Harris of Mercer to resurrect House | 0. 90, relating to mothers’ pensions, and | whose consideration had heen indef inite was defeated by a vote of 66 to 29, eighteen being ab mt. Malone of Mclean received the unanimous consent of the house to de- fer messaging of House Bill 55, pro-| viding for mine inspection, to the sénate until the attorney general had ruled.zs to the vote required to car:| '¥. un. emergency clause. House Bill cartied by a two-thirds majority turday, but ithe emergency cla voted on, separately, Jost. “Rep. J. F. T. O'Connor + of> the. minor! got (Continued on Page Two. NINE SHIPS ON WAY HOME jton of the project, a framework of fundamental principles will be ALLIES MUST BE ON GUARD AGAINST GERMANY IN RUSSIA, SAYS RELATIVE OF LATE CZAR President Wilson Cheered by Socialists When His Speech Is Read—League of Nations Plans Are Maturing Paris, Feb. 4—The Grand Duke Michaelvitsch, brother-in-law of the former Russian emperor, who has arrived in Paris, as he declares “not for political purposes, but to make known the truth about Russia,” says that the allies must beware of Germany in Russia. “France has every reason to save Russia,” he declares. “If you do not intervene now be sure that Germany will intervene in her own time. Beware of Germany. The people which now is. at your mercy, hides within itself a hate which will find its first revenge in Russia.” Premier Venizelos of Greece, who is asking the peace con- ference for all the islands of the Greek Mediterranean, said today he felt sure England would not refuse to give Cyprus to Greece. The premier added that he also hoped that Italy would: give to Greece the Dodecanesus islands. . The supreme council, at its meeting today, agreed that the question in the statement of Premier Venizelos should be referred to a committee of experts, whose duty it would be to make rec- ommendations for a just settlement. The committee will be composed of two representatives each from the United States, the British empire, France and Italy. Even if the efforts to secure final action on the society of nations before President Wilson’s departure should fail, it is‘con- sidered by sponsors of the plan that the ultimate success of the undertaking has in reality been assured through the adoption by the full conference at its second session of its declaration which solemnly binds the delegates to the creation of such an associa-* tion with its prime object of averting further warfare. President Wilson has several appointments today, among which ,are visits from congressmen who have arrived in Paris. While only two weeks remain before the date set for his return, it is still rcgarded within the realm of possibilities to have the league of nations plan ratified and put into treaty form.. This would make a record for international conferences. For the present, the main effort of the promoters is to keep out all matters from the plan which are not absolutely vital. Thus it may prove that one result will be that little more than the skele- disclosed. It is expected, however, that on this can be hung almost everything essential to the development of the plan whereby it is hoped.to assure the peace of the world for generations to come. Speedily Perfected There is a growing feeling’ here that the treaty of peace should be speedily perfected. Arthur J. Balfour is engaged upon a-proposition to fix the territorial boundaries at once and promptly conclude peace. The program would then go on with a settle: ment of the other questions. With such an agreement on‘ general principles, it is held that there may be no need to treat specifically such questions as freedom of the seas, submarine use and creation of buffer:states. ~ | WITH TROOPS Washington, Feb. 4.—Departure from France of nine ships which will dock at New York, Philadelphia, or Newport News in the next week with, approximately 400 officers and 200,000! men from the American expeditionary force was announced today by the | war department. ! ing of thé peace conference in the “clock room” of the Palais d’Orsay, Paris. President Poincare had just finished speaking from, the chairman's ‘place beneath: the clock. On his right (indicated by the arrow) is President Wilson, and next to Wilson are, in order, Secretary Lansing, ex-Ambassador' White and General Bliss, while on Poincare’s other hand are the British delegates, Lloyd George, Balfour, Law and Barnes. In the center of the picture.is an interpreter (a British officer) reading Poincare’s speech in Préstier Clemenceau of France,i who took Poincare’s place after the lat- BERLIN CARRIER SERVICE | Cologne, Feb. 4.—A limited number,| of, officers and enlisted-men will be! given an opportunity to visit Berlin! SALESMAN DIES ing the volunteer army which is being} organized for service against the Bol- ; i ie sheviks, is ? ‘James A. Dainard, 52, Succumbs According to information each re-! Following Nervous Breakdown (Continued on Page Two.) to carry messages owing to the up| certainty-of the mails. A number of} cruit must have received six months i serv They are being sent to the! discharged German soldiers and join-| eastern front. |. Fargo, N. D., Feb. 4—James A Dainard, | 52, veteran traveling sales- |man residing at 1221 Seventh street |south, died in a Hoorhead hospital at |9:30 o’cloc Sunday morning following a nervous breakdown suffered several weeks ago. Surviving are his widow; !one daughter, Miss Mabel Dainard, re- | siding at home; and one son, Elmer |Daiard, in service at Camp Lewis, {Wash. Funeral arrangements have not been made, but services probably will be held from the Moore chapel on Roberts street next Wednesday after- ; noon. Mr. Dainard was born in Canada, coming to the United States 28 years ago, and to Fargo 20 years ago. He enjoyed a wide acquaintance among North Dakota and western Minnesota merchants. | Overwork and ill health are’ held jTesponsible for Mr. Dainard’s break- down, which resulted in’ a tempor: ary mental derangement. A week {ago today at Leonard, Cass county, in ja fit of despondency incident to his (condition, he slashed both wrists | with a razor. He was rushed to Far- |go and placed in a Moorhead hospital. ; Saturday evening he eluded nurses jand attendants, and jumped from a, {second story window to the frozen [ground breaking his back in the fall. ‘SPECIAL ROLL OF | HONOR MADE UP i | Washington. ‘Feb. 4—AN awards ‘of {medals are on recommendation of |General Pershing. A medal can only {be given for “conspicuous gallantry }and intrepidity above and beyond the | ¢all of duty in action.” |. Many. distinguished service crosses {for gallantry in action and distinguish- | @d service medal given for conspicuous service of any character in connection cane” y have been awarded but the wearers of the onor constitute a special It carries with it guar- certain previleges. and distinguished service ingot be worm by any inde- mmander. The medal is le secretary of war on the tion of the military com- ch recommendation being y the committee of military PROPAGANDA. 2