The Bismarck Tribune Newspaper, June 20, 1919, Page 1

THE WEATHER Generally Fair. THE BIS THIRTY-NINTH YEAR. NO. 140. CASHIER AAMOTH'’S TESTIMONY ON THE FOUR-WAY SPLIT AND MR. TOWNLEY’S LIBEL ACTION Tribune Presents Today First Instalment of In- teresting Abstract of Testimony Introduced in Blue Sky Board’s Valley City Bank Quiz “Well, Grady told them he thought they were pulling down a pretty good commission, and Box said: ‘Why no, > he says, ‘the commission don’t amount to anything in the way it has to be split up,’ and Grady says, ‘How does it have to be split?’ and he says, ‘IT HAS TO BE SPLIT FOUR WAYS’—put up his fingers like that (indicating) —HASTINGS ONE-FOURTH AND I GET ONE- FOURTH AND LEMKE AND TOWNLEY GET THE OTHER HALF’” gk QUESTION: “He told e?” " ANSWER: “YES.” + that to you and Grady, did ~ It is upon this portion of the testimony of Cashier H. C. Aamoth of the American National bank of Valley City, summoned before the state banking board to tell what he knew of the reor- ganization of this institution into a state bank by John J. Hastings and Thomas Allan Box, then financial agents of Arthur C. Town- ley, president of the National Nonpartisan league, that Mr. Townley and William Lemke base their action for libel against The Bismarck Tribune, from which they are seeking to recover $400,000 for their injured reputations. ; The statement of Cashier Aamoth is reproduced verbatim from the official abstract now in the hands of the state banking board, The Tribune promised Mr. Townley to reproduce this abstract in full, and it purposes to do so. The first instalment of this interesting document, containing all of the material testimony adduced'in the examination of Cashier Aamoth, together with a statement made by James R. Waters, then bank examiner, in defense of Mr. Townley, is presented herewith: TESTIMONY OF H. C. AAMOTH OF. VALLEY CITY. Before the Banking Board at Bis- marck, N. Dak, in the matter of the forming of the American Exchange Bank. : Mr. Aamoth was duly sworn oath and testified as follows: By Mr. Langer. -.Q. - What is your name? Aamoth. Q. How old are you? A. I was $8/on the first of January, last. Q. You were cashier of the Ameri- can National Bank= during; the last four or five years, were you? A. ! was. on A. H.C. Q, Do you remember what you car- Hed the building* at on the books down there? “A, I do. 4 Q. What was it?) A. $42,250, I think it was., v Q. What is that building actually worth? A. That @uilding cost the American National Bank at ‘the time they built it, oh, between $65,000 and $70,000. Q.--‘When was it built? A., Built in nineteen, started in 1907 and com- pleted in 1908. Q. Now, who controlled the stock of that bank down there? A, Well, Mr. Grady and myself and his family —that is, his wife and his mother-in- law—they had sufficient stock to con- trol it. Q. How many shares was that that you and Grady’s family owned? A. I will have to figure on that, I guess, before I could tell you. I had twenty- five hundred shares, not twenty-five hundred, I had twenty-five shares. Grady had one hundred ninety-nine. Mrs. Grady had 21 shares, and Mrs. Gelby owned 10 shares. That made 255 shares. Q. Did you enter into a contract to sell these 255 shares or any part of them? A. We did. Q. Who with? A. J. J. Hastings and a fellow named * Hagegarty. Q. Have you got a copy of that contract? A. No, Mere was not any contract, only verbal agreement you know. : Q. What was the price supposed to be paid? A, The price agreed upon in the fall of 1917 was $362.50 a share. That included 25 additional shares. The deal with Hastings in- cluded 280 shares. We had two other parties that was taken care of at the same price, you see. JOINT FUNERAL SERVICES HELD FOR THREE BOYS . Joint funeral ‘services were con- ducted“ at the First Presbyterian church at 3 o'clock this afternoon for the trio of Bismarck ‘boys who lost their lives Monday evening . while wading in the Missouri river. ; The dead were Edward Preston Mowry, son of Mr. and Mrs. Preston Mowry; Nelson Jones, son of Mrs. L. C. Jones, and Henry Schnecker, son of Mr. and Mrs. George Schnecker. All were members of the Sunday school of the First Presbyter- jan church, and it was following a pic- nic supper at Ward's grove participat- ed in with members of their class that the trio engaged in their fatal ex- pedition to the river. Rev. H. C. Postlethwaite officiated in a most impressive funeral service in which the sorrow in which the com. munity shares with the families of the three victims was emphasized. The altar wand biers were banked with floral tributes from the many friends of the young men, and the church was filled. with mburners. Pallbearers were selected from the ranks of the Sunday school classes of which the three boys were members, and were as follows: Walter Brandt, Charles Burke, Robert George, Theodore Smith, Richard Knappen and Sterling Reid. The music for the services was in-charge of Miss Bergliot Caspary. Rev. Postlethwaite in part said: “These boys went to the grove to en- joy an evening in joy and fellowship together. The evening was warm and later the boys wended their way to the cool stream yonder, and brought out what we call life into eternity. We believe that you have come to extend sympathy to the loved ones who re- main, and also ‘to others, and if you have so come you have done well.” Rev. Postlethwaite spoke of the splendid Christian character of the boys, that they were members of the church and also members of his Sun- day school class and were of the spirit that was brave and true. He went Q. Hastings and Haggarty finally; on to say that the strange calamity of bought you out? A, Finally bought us out. j Q. What did they pay? A. At the time they paid us—we had in the meantime from the time we first agreed on a price until they finally came through and paid us, we had sorrow coming into these Christian homes shows how Christians can bear up under sorrow and what they can do when the tests in life come, in! either sorrow, tribulation or adversity. In words of consolation to the be; reaved parents and friends of the boys had a dividend, and paid dividends, | Rev. Postlethwaite said in conclusion: and that was taken off from the orig- inal price, so that they settled with us at $342.50. Q. Did you draw up a contract at that time? A. There was a con- tract entered into between the banks not with Hastings. We just turned our stocks over to Hastings, you see. Q. Has a contract between the banks or between your bank and the Federal Development? A. Contract between the-American National Bank and the American Exchange Bank for the sale of the assets from one institution to the other. . What was the consideration? A. $146,150. ‘ Q. You actually received that mon- ey? A. We actually received that money. Q. Who paid it to you? A. Hast- ings. a Who was your dealings with during the time that the purchase of the bank was: going on? A. We were dealing with J. J. Hastings. Q. Anybody else? A. No. Q. Thomas Allen Box? A. Thom- as Allep Box was there and organiz- ed the new bank but we had no deal- ings with him—our deal had already been closed, that is agreed on with Hastings in the fall, so that there ‘was no further negotiation except we were waiting for our money. “Why do we talk of their future being cut off, when it has just begun, and is glorious in its results. has not died, but gone for a little while.” In closing the services were con- cluded. withthe singing by the choir of the beautiful and comforting hymn, “Abide With Me.” three. boys were members. Escorted by a long cortege, the re- mains were conveyed from the church to their: last’ resting place in Fair- view cemetery. The tragedy is one which Bismarck will never forget. fit has taught the ty a wholesome lesson, and the sacrifice of these boys may be the means of, saving the lives of many others through impressing upon Bis- marck. the: imperative necessity of Providing for its young people some safe place of recreation. Edward Preston Mowry. Edward Preston Mowry, one of the three boys who drowned in the. Mis- souri river Monday evening, was born May 25, 1904, at, Jefferson. Ia., and was 15 years and 22 days old. He was 8 son of Mr. and Mrs. Preston Mowry, who recently came to Bismarck from Barnesville, Ja., and a nephew of G. |J. Johnson of St. Paul, former North Dakota bank examiner. In addition to his parents, there survive a brother, Q. Did you have anything at all i. (Continued om Page Six.) Paul, and two sisters, Rachel and Margaret. Our brother | GERMANY ACCEPTS TREA BISMARCK, NORTH DAKOTA FRIDAY, JUNE 20, 1919. CHECKS THAT PASSED IN THE DEA Valley City bank deal. PROVIDENT PASSES EXAMINATION WITH EXCELLENT MARK An examination of the Provident Insurance Co. of Bismarck completed by Wesley Stiles, St. Paul actuary and accountant, as special examiner, and Devuty Insurance Commissioner A. S. Aslakson has resulted in a report very favorable to the company. Examiner Stiles is especially complimentary in his comments upon the management of the company. Fred L. Conklin of Bismarck is general secretary of the Provident, which celebrated its third anniversary last week. VILLA HURLS DEFY AT YANKS El Paso, June 20.—A courrier from Samalayuca, arrived at the border last night with a communication from General Angeles for Erigadier Gen- eral Erwin. district commander. The communication asks for the rea- son-why American troops crossed to the Mexican side Sunday night. The communication was received by Gen- eral Erwin, acted on, and referred to Major Caddell. | Villa will make no reprisals upon American property ‘1.nd lives in Mex- ico because American troops drove his men back from the border Sunday j night, a currier from a Villa camp ar- riving here last night declared. OLD-TIME SOUTH CAROLINA HACK HERE FOR LEAGUE J. C. McLaurin, a one-time member of the United States senate from South Carolina whose political fun- eral occurred a generation ago, when Pitchfork Ben Tillman smashed him on the nose on the floor of the senate, spoke to a handful’ of people from the balcony of league headquarters on Main street last night. McLaurin is ‘being paid a per diem by Mr, Town- ley for his endorsement of the Town- ley program, and he endeavored last night to earn his money, With McLaurin spoke a young man in the uniform of a lieutenant on ac- tive service with Uncle Sam’s army. Bismarck select service men noted the absence of the red chevron from his sleeve and are wondering wheth- er he is still in the pay of the United States while doing Mr. Townley’s work, McLaurin is the only political figure whom Towriley’s money could buy to come to North Dakota and campaign for Townleyism. Townley’s poll of Washington radicals resulted in one or two letters of endorsement from men. of well known socialistic lean- ings, but none of those approached except McLaurin could be bought. to come into the state and take a’ posi- : tive stand for the Townley program. | vessel of 6,770 tons. FEDERAL DEVELOPMENT COMPAD:7,:.$3,005.38. . Facsimiles of checks signed by Cashier Aamoth:of the Ameri- can National Bank which played an important part in the notorious CHIEF JUSTICE CHRISTIANSON IS RULER OF R. A.M. Second Bismarck Man Honored by North Dakota Masons at Grand Forks Grand Forks, June 20.—Adolf M.| Christianson of Bismarck was elected | Grand High Priest at the session of the Grand Chapter R. A. M. convoca- tion at the Masonic temple.’ Reports of officers and standing committees were read at the meeting and routine matters of business were transacted. Other officers of the Grand Chap- ter elected are: John H. G. Turner, Bottineau, Deputy Grand High Priest; ; George E. Duis, Grand Forks, Grand King; Walter H. Murfin, LaMoure, Grand Scribe; Harry Lord of Cando was re-elected Grand Treasurer; W. L. Stockwell of Fargo was re-elected! Grand Secretary; Henry R. Bitzing, Mandan, Grand Captain of the Host; | John A. Graham, Bismarck, Grand} Principal Sojourner; William T. John- ston; Fargo, Grand Royal Arch Cap- tain. Appointed officers have not yet been named. Afternoon Session Officers of the Grand Chapter elect- ed were formally installed in the aft- ernoon. : ZEALAND HOLDS ITS) FIRST GRADUATION Miss Minnie J. Nielson, state super- intendent of public instruction. re- |cently attended the first eighth grade graduating exercises of the Zealand school, of which Miss Emma Golden is principal. Miss Nielson was most favorable impressed by the exercises and with the spirit shown by the Zea-| lenders. The school boasts of a splendid orchestra which played for! the program. Nine boys and three |girls received diplomas. One of the \ graduation essays, on Americanism, delivered by Leopold Mantel, was of such excellence that it will be re- produced in full in the next school bulletin. County Superintendent Boscliman of McIntosh also attended the exercises and was delighted with them. CENTENARY OPENS Columbus, O., June 20.—Methodists from all sections of the United States and from various foreign countries began to arrive in Columbus today for the opening of the Methodist centen- ary exposition which will continue until July 13. CRUISER SANK, London, June 20.—The Russian cruiser Oleg was sunk Wednesday by a British submarine it is announced in a Russian wireless dispatch to- day. The sinking occurred near the |the Northwestern Telephone Co., spent. , |the wire companies, within a month or | RAIL BOARD TO LOOK INTO NEW ‘PHONE TARIFFS North Dakota Commission Pre- paring for Return of Wires to Private Control WOULD AVOID CONFUSION Fact That Burleson May Relin-; quish Properties at Any Time Cause of Action Northwestern telephone interests are looking. ahead to the time when the wire lines will be restored to pri- vate control and operation. J. W. Pratt of Omaha, general counsel for Thursday in conference with the North Dakota railway commission | with a view to determining its prob- able attitude toward the scale of rates rendered effective today by Postmas- ter General Burleson in the event that | six months are restored to private) ownership. Under public control, the United States supreme court has ‘held that states cannot interfere with the high- er scale of rates applied by Postmas- ter General Burleson. Upon the re-! turn of these properties to private hands, however, the state public util- | ity commissions’ rate-making powers | would be automaticaly restored, and | the schedule of rates prevailing prior | to the change made effective today | under the postmaster general’s order | would prevail. Attorney Pratt wished an agree-| ment from the rail board to the effect | that when the wire lines are restored to private control the commission ; would immediately investigate the new schedule of rates with a view to mak- ing them permanent. The rail board would not commit itself upon the sub- | ject, but it did state its intention to| at once undertake an investigation of | the income, earnings and operating expenses of telephone companies serv- ing North Dakota in order. that ,any j adjustment which may be necessitated with the return to private control.and operation may be made ‘without delay and without confusion. . The’ North- western Telephone Co.’s legal adviser seemed fully .satisfied with this un- derstanding, and the rail board hopes to work out a plan which will save both the commissions and the tele-/ phone companies from the embarrass- ment of an over-night upheaval in rate schedules. SENATOR GORE IS INJURED IN | AUTO SMASH-UP Well Known Democratic States- man Who Spoke Here Monday Hurt at Sioux Falls Sioux Falls, S. D., June 20.—Senator Thomas P. Gore of Oklahoma was in- jured when an automobile in which he was rushing from Mitchell to Solux Falls overturned, throwing the sen- ator out onto the ground, Senator Gore was not painfully in-/ jured, according to attending physi- cians. His shoulder was badly bruis- ed, but he suffered no internal injur- ies. The Oklahoma senator was speeding ; to Sioux Falls to catch a train for Washington when the accident oc- curred. . A front wheel of the automobile caught in a rut, overbalancing the car. He plans to continue his trip tomorrow. Senator Gore was en route south from Bismarck, where he addressed the farmers’ conference Monday. MOLLIE BJURSTED GOES TO DEFEAT Philadelphia, June 20.—Miss Mollie Djursted, for four years champion, went down to defeat today in the semi-final round of the 52nd annual women’s tennis tournament at the Philadelphia Cricket club. She was| defeated by Miss Mary Vinderstein of the Longwood Cricket club. DICKINSON DRY SAYS PIONEER SLOPE MAN W. L. Richards, president of the First National bank of Dickinson and one of the Slope’s oldest and most prominent stock-growers, is here at- tending a meeting of the North Da- kota live stock sanitary board. Mr.: Richards, who served as a member of| the state draft board during the war, hag been a member of the live stock sanitary commission ever since the organization of that body. He reports} the Dickinson country to be very dry; and considerably in need of rain. TOWNLEY TO SPEAK HERE SATURDAY EVE President A. C. Townley of the Na- tional Nonpartisan league will speak from the balcony of the league hotel on Main street Saturday evening, when he makes his first public ap- pearance here. since his meeting at the Auditorium last February. The league press says that farmers from three counties are planning to hear jof which goes into the hopper diet. | |The cost of this mixture will run from Accept The downfall of the Schei fense, was forming a cabinet to s the fall of the ministry. Ebert. Nauen, at 1 o’clock this afternoon The cabinet although it.has’ one. Weimar dispatch received here t zau as foreign secretary, it adds. to the document. HALL ATTRACTS BIG CROWD AT DEVILS LAKE Devils Lake, N. D., June 20.—Secre- tary of State Thomas Hall held a large audience at the Ramsey county court house for two hours last night. Willard-Dempsey Fight to Break All Past Records Toledo, June 20—With the heavy- weight contest between Jess Willard and Dempsey set for two weeks from today, Tex Rickard, the promoter. announces that receipts assure the success of the biggest event in sport- ing history. Federation Refuses to Urge Release of War Objectors Atlantic City, N. J., June 20.—The American Federation of Labor in con- vention here refused today to ask for the release of so-called political and industrial prisoners convicted under the espionage and other war-time acts. Instead. the federation adopted a modified resolution requesting that these acts ‘be rescinded with the form- al coming of peace. 275 TONS OF BRAN TO FEED HOPPERS Deputy County Auditor Wright, with eleven men and two teams has been engaged for a week in parceling out hopper dope. During this time there have been distributed 275 tons of | bran; 12,000 gallons of molasses, | twelve tons of arsenic, 360 cases of | lemons and 24,000 pounds of salt ,all| $22,000 to $23,000, and it is expected to save hundreds of thousands of dol- lars worth of crops. FIRST SELECTIVE SERVICE MEN HOME FROM FRENCH FRONT| Eugene Wachter and Frank John- son, the first two selective service men to leave Bismarck, returned to the city together yesterday, after many months’ service in France. The} boys went to Camp Dodge in advance of the remainder of the first conting- ent from Burleigh county and both were immediately made non-coms. Al- tho they were not together during their whole stay in France, they were mustered out at the same time at/ Tolbugan light house. ‘The:Oleg was Mr. Townley. The subject of his ad- ‘dress is not announced, : Camp Dodge and were united on the homeward journey. : : | Gustav Nofske, the minister of defense will Scheidemann as head of the German ministry The signing of the peace treaty by German Telegraph dispatch from Copenhagen, quoting nieces from Wei- mar, says it is as certain as if the signature had already been put PRICE FIVE CENTS TY IS REPORT SCHIEDEMANN GOVERNMENT HAS FALLEN WHICH MAY ASSURE SIGNING OF PACT New Cabinet Forming and President to Succeed Ebert May Be Selected—lItaly to Terms ACCEPTANCE REPORTED London, June 20.—The German national assembly at Weimar has accepted the peace treaty, according to an Exchange Telegraph dispatch from Paris. Paris, June 20.—The Scheidemann government in Germany has fallen, it was learned here today. News of the event received during the morning was confirmed later by military advices thru Coblenz from both Weimar and Berlin. idemann government was made known to the American delegation through the peace conference. It is believed to assure the signing of the peace treaty by Germany, !as Philip Schiedemann, the premier, was known to be the chief opponent to acceptance of the revised peace terms. FORM NEW GOVERNMENT Early reports stated that Gustav Nofske, the minister of de- ucceed the outgoing government. Four members of the Schiedemann government were insisting on the signing of the treaty, and it is presumed here that this caused It is understood here that the fall of the Schiedemann govern- ment entails the fall also of President Ebert. The national as- sembly probably will take measures to select a successor to Herr REGIME COLLAPSES French official information on the German situation is to the same general effect as that received by the American delegation, namely, that the Schiedemann-Ebert regime has collapsed. The French advices carry the impression that the national assembly is favorable to the signing of the treaty. All reports concerning changes in the German. cabinet are premature, says an official German wireless message sent from The message adds that the national assemblage failed to get a majority of its members for signing the peace terms. resigned will continue in office temporarily until President Ebert has been able to form a new 1 succeed Phillip according to oday. : & , Mathias. Erzberger will-succeed Count Von Brockdorff Rant- an Exchange SEND FOURTH NOTE. St. Germaine, June 20.—The Aus- trian delegation has sent'a fourth note to the peace conference protesting against the “German-Austrian repub- lic being made the heir of all the responsibilities of the Austrian empire, of which it was the smallest, poorest and most peaceable of states.” It was pointed out that when war was de fared in 1914 the foreign minister, his principal collaborator, and almost all members of the cabinet were Hun- garians, and that responsibility for the war “fell equally upon all the states of the empire which have van- ished.” The Austrian counter proposals are being completed by the transmission of notes daily to the council of four. ASK EXTENSION Paris, June 20.—It is reported h that the Germans have asked a fur. ther extension of the time limit in which to sign the treaty. NEW TREATY LONGER Paris, June 20.—The new treaty is a somewhat longer document thah the draft originally submitted to the Ger- mans and published in the United States. It now comprises 240 pages, five more than the original, and even this was effected by closer paging. The article assuring Galjtician coal and minerals to Germans, reads: Poland undertakes to permit for 15 years the exportation to Germany of the products of the mines in any part of Galicia and Poland without export duty or restriction and permit the Germans to purchase these products on the same terms as the Poles. In the revised draft, the “principle associated and allied powers under- take to ‘establish Danzig as a free city.” This language in which the responsibility of the five great pow- ers for the creation of the new city and state is definitely assumed is sub- stituted for the original phraseology declaring merely that “Danzig is, es- tablished as a free city.” The new article for the disarma- |ment of Germany providing for re- duction to a specified point within two months, reads: “Up to the time at which Germany is admitted as a member of the league of nations the German army shall not possess armaments greater than that fixed in the table submitted in this treaty,” and continues, “Germany agrees after she has be- come a member of the league the armament fixed by the table shall re- main in force until changed by the {council of the league.” At various points the drafting com- mittee sought to adhere as far as pos- sible to the original numbering of the articles and tried to make up for in- sertions or omissions by combining or splitting articles. As at first arranged, the new in- strument still contains the original fourteen points and 440 articles, NOT UNEXPECTED. Washington, June 20.—Fall of the German cabinet was not unexpected by offiicals here who said today that they had information that a coalition cabinet of socialists and independent socialists was to be formed. 3 (Continued on Page Three.) _,