The Bismarck Tribune Newspaper, August 21, 1919, Page 1

WEA Fair tonight. THE BIS CK TRIBUNE == THIRTY-NINTH YEAR, NO. 191. BISMARCK, NORTH DAKOTA THURSDAY, AUGUST 21, 1919 PRICE FIVE CENTS STATE MUST HAVE SPECIAL SESSION TO MAKE UP $4,000,000 DEFICIT T0 FIRST OF YEAR, ASSERTS KOSITZKY Auditor Declares North Dakota Cannot Go to Bank of North Dakota and Say, “Lend Me a Five”—Legislative Assembly Must Enact Laws Authorizing Loan, Providing for Bond Issue as Security and Directing Levy With Which to Pay Back Money Borrowed. Loud boasts from league leaders that their bank, with it8 $12,000,000 in deposits, will “carry” the state of North Dakota as long as it needs carrying and never feel it, were “called” today by State Auditor Kositzky, who referred the leaguers to Sec. 182 of the constitution, in which the forefathers of North Dakota decreed that their state shall not borrow money unless “such debt shall be authorized by law for certain purposes to be definitely mentioned therein.” Mr. Kositzky contends that, while the state owns the Bank of North Dakota, the funds of that bank are not public moneys which can be transferred at will to the state treasury for the defraying of governmental expenses. He insists that if the state borrows a penny from the Bank of North Dakota, the loan must be negotiated in the same manner as though the Bank of North Dakota were a private institution, and the loan must be secured by a bond issue authorized by the legislative assembly. This means, says Mr. Kositzky, that a special session has become imperative. AMERICAN TROOPS BUSILY BAGGING BANDITS ON MEXICAN SIDE OF RIO GRANDE—SLEEP ON TRAIL OF GANG “The state now has $37 and some cents in its general fund. Within ten days we will have a monthly payroll of $62,000 to meet, this including a voucher for $3,333.83 which has just ‘been put in for the salary of Director General Cathro of the ‘Bank of North Dakota dating back to April. Dur- ing the next six months, or up to the time when new general taxes will begin coming in, we will need $1,500,- ‘000. Miscellaneous collections during that period, based on last year’s ex- perience, will be $500,000. ‘That will leave a deficit of $1,000,000 to be made up in some way. “Section 182 in Article 12 of the constitution as amended by the league last fall provides that ‘No future in- debtedness shall ‘be incurred by the state unless evidenced by ‘bond is- sues, which shall be authorized by law for certain purposes, to be clear- ly defined. Every law authorizing a ‘bond issue shall provide for levying an annual tax, or make other provi- sions, sufficient to pay the interest semi-annually, and the principal with- ‘in thirty years,’ and ‘so forth. ‘Legislature ‘Must Act “Constitutionajly, ‘North Dakota cannot borrow a single penny from the Bank‘of North Dakota or any other source unless ‘evidenced by ‘bond issue’ authorized by law for cer- tain purposes ‘to be clearly ‘defined.’ That means that before we can bor- row from the Bank of North Dakota the million ..dojlara .which, we..must have to ‘carry, us ‘over the ‘next six months, a special session of the leg- islature must be held, and laws’ au- thorizing a bond issue for this spe- cific purpose must be passed. Institutions Cared For “The institution funds have been saved to them by action on my part which has been severely criticised by Mr. Townley’s press. If I had not sev aside these funds, as required by law, these institutions soon would be in the same boat that we find ourselves in, and their pay-rolls are many times as large as te one we now have at the capitol, which is big enough in itself. “I am not responsible for the pres- net state of affairs. I warned the leg- islature last winter that it was appro- priating funds in excess of our avail- able income. I have from time to time called the public’s attention to the situation, and I have been criti- cised for it. But I believe the public has a right to know, for the money which has been spent so liberally comes from the public’s pocket, and from the same source must come the huge sum which now is required to make up the deficit. The Oil Tax “In some way, in the public mind, I have been connected by the Town- ley press with the failure of our new oil taxing system. That this act would be attacked inthe federal courts was inevitable. I was present at a meeting of the joint tax commit- tees when Rep. J. F..T. O'Connor cited the federal constitution on this point and predicted such an outcome. (He was overruled by William Lemke, and the assembly passed an act which O'Connor and other lawyer members insisted would not stand up. As a result we are today $40,000 per month under the collections which the as- sembly estimated we would have, and this shortage, together with the free- handed emergency appropriation of special funds for a dozen new' com- missions has placed North Dakota in its present unfavorable position.” SHRINERS GATHER FOR ANNUAL BUTTE OUTING Deer Lodge, Mont., Aug. 21—Shrin- ers from many parts of the state are gathered here today for the annual outing of Bagdad Temple, Mystic Shrine, of Butte. The picnic is being given in connec- tion with the local celebration of Com- mercial Day €@nd thousands are pres- ent. (Mayor Frank Conley of Deer Lodge turned the town over to the Shriners for the day and tonight is to be giv- en over to the humorous stunts for whih the order is famous. ALL-RUSS CHIEFS MOVE ON AS RED INDUSTRY BOARD anomes APPEAR NOT BIDDING IN Omsk Government Position Said to Be Growing Weaker— Siberians Missed Toklo, Sunday, Aug. 17.—The _ all-|‘ Russian government at Omsk has transferred its gold reserves and archives eastward to Irkutsk, accord- ing to a apparently reliable report re- ceived here. Other information indi- cates that the Omsk government’s po- sition is growing weaker because of the advance of the Bolsheviki and the diversion of the Siberian troops. The Hochi Shimbun today published a dispatch from Pekin that the Omsk government had fallen, but added there was no confirmation. ONE OF FIRST CHINESE OFFICERS LEAVES ARMY Louisville, Ky., August 21.—First ‘Lieut, Kimball Ho., 24, one of the first Chinese officers in the United States, has just received an honorable dis- charge at Camp Zachary Taylor. Lieut. Ho entered an- American army school in Honolulu several years ago, and, as a second lieutenant, was de- tailed to Camp Pike, Ark., thence to Camp Gordon and served several months at Camp Taylor in 1918. One Greaser Killed and Two Others Made Prisoner by Cav- alrymen Pursuing Crew Who Captured American Aviators and Held Them for Ransom— Airmen Avenge Insult to Craft by Slaying One Outlaw—Cap- tain Matlack Credited by Cav- alry Sergeant With a Pair. Marfa, Tex., Aug. 21.—One bandit is believed to have been killed and two others made pris- oners by American troops who crossed the Rio Grande into Mex- ico on Tuesday morning. An American cavalry sergeant, it is reported, rode to the border last night and reported that Captain Matlack had captured two ban- dits. One Mexican was killed Tuesday-.by.. American. aviators., The American troops slept last night of the trails of the bandits. Bandit Chase Resumed As soon as it was sufficiently light this morning to follow the trails, the American punitive ex- pedition in Mexico took up the bandit chase for the third day. One column picked up the “hot trail” of two bandits believed to have been companions of the two captured late yesterday by Cap- tain Matlack. At sunrise airplanes left here for Presidio, 60 miles south, where a flying field base for the expedition has been established. Landing there and getting gas- oline and oil the airplanes flew across the Rio Grande and along the Conchos river valley to pick up the trails. The cavalry re- sumed its work of scouting. Cav- alry columns are searching out every canyon which could pos- sibly be the hiding place of the bandits. The work of the aviators is considered extremely dangerous because there are few landing fields in Mexico. It is necessary to fly close to the ground where the bandits may fire on the avia- tors as they did Tuesday. Would Have Mexicans Co-operate Colonel Langhorne, American army commander in the Big Bend district, today suggested to Cosme Bengoechea, Mexican consul at Presidio, Tex., that the consul communicate with General Pruneda, Mexican commander, who now is near Cuhillo Pardo, and sug- gested to Pruneda that American and Mexican troops co-operate in pursuing the bandits who captured Aviators Davis and Peterson. MEXICO WILL PROTEST. Washington, D. C., Aug. 21.—The Mexican ambassador has been in- structed by his government to protest to the state department against he; pispatch of American troops across the border and to request their withdraw- al, according to a statement issued at Mexico City yesterday. QUAKE - PROOF BUILDINGS Rome, Aug. 21.—Italians in the re- cently devastated Mugello Valley have started a reform. movement architec- ture better suited to withstanding earthkuake shocks. BANDITS HOLD UP TRAIN; CUT ENGINE LOOSE AND ALLOW IT TO RUN WILD; RIFLE U. S. MAIL POUCHES Nashville, Tenn., Aug. 21—Masked bandits held, up Louisville and Nash- ville passenger train No. 7 from Cin- cinnati to Montgomery, Ala., between Columbia and Pulaski early today and carried off the mail pouches. None of the passengers was mo- lested. The robbers, four in number, forced the engineer to cut off the mail car and ran some distance with it. Covering the crew, the robbers sent the engine running wild and rifled the mail car. The amount of loot could not be determined. The locomotive finally ran-down at Wales, Tenn. Meantime the bandits made off without molesting the ex- press car. Posses from nearby coun- ties are searching for the robbers, CENTER MAN DIES; TWO BADLY HURT IN AUTOMOBILE SPILL Mandan, N. D., Aug. 21.— George Strong, Gust Mentz and Art Pelka, associated in a threshing outfit, started out from, a farm northwest of Center last night to go in to Center for repairs. Their motor, moving at a high rate of speed, hit a rock and the car turned end over end for several rods. Strong was killed, Mentz was bruis- ed about the head and back, and Pelka was badly hurt. CAHILL PREDICTS SPECIAL SESSION DESPITE FRAZIER League Whip From Grant Coun- ty Indicates Governor Talked Through His Hat SOME IMPEACHMENT TALK Fargo, N. D., Aug. 21—The special session of the North Dakota legisla- ture is not wholly a myth, despite Governor Lynn J. Frazier’s assertion to woman suffrage workers that there would be a session. Confimation of Governor Frazier’s pledges comes now from State Sen- ator J. I. Cahill of Grant county, who was in Fargo early this week. Senator Cahill stated to friends while in Fargo that he anticipated that the’ special session would be called for about the first week in October. This would be a week later than Governor Frazier indicated he would call the session when he was interviewed by representatives:of the National Woman’s Suffrage party about ten days ago. ‘Drought Legislation. It is impossible, of course, to de- termtne in advance just what sort of legislation will be considered if Governor Frazier does call the leg- islature into special session, but Sen- ator Cahill indicated that it would probably be necessary to make some provision to meet the drought in West- ern North Dakota. Montana, Senator Cahill _ told friends, has taken steps to ald the drought stricken farmers of that state, and he cited that as an indi- cation of what North Dakota would probably be obliged to do for her farmers who have lost this year’s crop. As Director General Cathro of the Bank of North Dakota has indicated, the bank is not in position to provide relief, it being necessary for the farm- ers to rely on their local banks, Suffrage Quesction. The problem of endorsing woman sufrage is quite important to the Non- partisan league, and the league lead- ers realize that they cannot afford’ not to be fa€tors in bringing ,about na- tional equal suffrage. The call has gone out for confitm- ation of the suffrage amendment by (Continued on Page Four.) MINNESOTA IRON MINES TO CLOSE; SHORT OF COAL Duluth, Minn., Aug. 21—Minnesota iron mines will close shortly because of the lack of coal, it was stated by iron officials here today. Those mines on the Cuyuna range will be the first to close, it was said. Yesterday an appeal for- coal was made to the railroad administration, which request was refused, there not being enough coal for the railroads’ own use. It was stated then that un- less steam coal was available the mines would have to close. The same condition will confront the mines on the Messeba range in the near future sinless commercial coal becomes avail- able, “ ROQUITY FACTORY Commission Not in Position to Take Over Packing Project, Says Secretary BIG PROPOSITION HELD UP Reported That Selection of Ele- vator Sites Awaits Next Election’s Results In response to a. persistent rumor, Secretary Oliver S. Morris of the in- dustrial commission has assurred the press that that body:has no intention of buying the Equity Co-operative Packing Co. plant at Fargo; that un- der’ the act creating the industrial commission the board could not take over the plant if it desired to, and that no such desire to his knowledge, has been expressed. The Equity Packing Co. several months ago increased its capital from $1,000,000 to $3,000,000. Some were unkind enough to intimate at that time that the concern might be intending to unload its plant on the state at the increased valuation. Sec- retary Morris appears quite positive that nothing of this kind is in pros- pect. The Big Program Held Up, Aside from the oppration ff its. small experimental mill at Drake, which was reopened under state management yesterday, it now ap- pears improbable that the state will engage in the handling of grain and the manufacture of flour on any ex- tensive scale before the fall of 1921, at the earliest. There are what the league appears to consider very. ex- cellent political reasons for not mak- ing an immediate selection of sites|! for the proposed terminai elevator: and flour mills. So Jong as this mat- ter is held in abeyance it 15 said that these industrial: plums, upon whose importance to ny community the league press is laying much stress, may ‘be dangled bofcre the eyes ot ciifes which: might, without this in- centive, be inclined to coutinue. to vote against the league program. Fargo Made An Example. Fargo just now is receiving daily dexes of this form of propaganda. The Townley newspapers there have published glorified cuts of the pro- posed terminal. elevator and flour mill, with enthusiastic stories of the hundreds of men who are to be ‘ur- nished employment by these ind.s- tries and of the thousands of people which they would add to: Fargo’s Population, were “tratbo not 86° blind as to persist -in its opposition ta the league. Recall petitions have been circulated against four memers of the Gate City commission who ara sald to have steadfastly held out against the inducements offered by the Townley press, and from day to day these are front page editorials scolding .and cajoling Fargo for not coming to its senses, embracing the Townley doctrine and making certain of the Townley terminal elevator and flour mill. In somewhat less degree the same course ig being pursued with relation to Grand Forks, Minot, Devils Lake, Williston, Mandan, Dickinson and Jamestown, all of whom are giving a tip that if they’re real good and line up with the league in the next elec- tion industrial democracy will bring (Continued on Page Three) MARTIAL LAW IS AGAIN IN SADDLE FOR HUNGARIANS Series of Beautiful Messes Among Democratized Euro- peans Reported Today Copenhagen, Aug. 21.—Marital law has been proclaimed throughout Hun- gary, said a Budapest dispatch dated Wednesday. Collisions between German and American ‘sailors on Tuesday at Neu- fahrwasser, resulted in the wounding of several civilians and one German seaman, according to Danzig dis- patches received here today. Neufahr- wasser is a seaport four miles north of Danzig. The disorder grew out of a quarrel in a dance hall Monday night, accord- ing to these dispatches, FEW FOREIGNERS WIN ORDER OF MERIT London, Aug. 21—aMrshall Foch, and now Marshall Joffre, are the only Frenchmen to receive the British Order of Merit. Until last year Japan was the only foreign country to receive the honor, Yamagata, Togo and Oyama having been appointed to the order. It was founded by King Edward to mark bis coronation in 1902. Senator Fall today in ‘answer to Tuesday. NATIONWIDE STRIKE OF STEEL MEN DEPENDS UPON SUCCESS OF LEADERS IN OBTAINING ° Coal Dock Men Charge Conspiracy St.. Paul, Aug. 21—Coal dock owners at a meeting here has decided to - bring suit against local union 524 of Duluth and local 163 of Superior of the International Brotherhood of Electrical Workers alleging they had conspired to keep men from working on the twin, ports coal docks. Coal dock work- ers are on strike in those cities. ———_—_———————_____6 NEGRO ASSAILANT OF WHITE WOMAN IS KILLED BY POSSE Louisburg, N. C., Aug. 21.— Walter Elliott, x negro, who is alleged to have assaulted a farm- er’s wife, was shot to death last night by: a mob which later car- tied the body to the scene of the crime and swung it to a tree in a country churchyard. The mob took the negro from Sheriff Kearney, two miles from here, while on his way to jail JAILED FOR TAKING EMPEROR'S PICTURE Tokio, Aug. 21—Because he took a nécture of the Japanese emperor and empress in the course of a passing purade, a press photographer was thrown into jail while the society edi- tor of Jiji who printed a picture of the emperor was grilled by the police. All of which is making the newspapers highly critical of the police. WHERE BANDITS Dickman, commanding. the depart- ment of the south from San Antonio, is expected to take steps ending band- itry along the border opposite the “Big Bend” district of Texas, where two'U: S. aviators were taken prison- ers by Chico Cano’s marauders and held for ransom. The flyers were be- lieved to have landed on the Mexi- can side of the river near Pilares. The demand for ransom came through an American storekeeper at Candelaria. One report was that the aviators had flown far into interior Mexico after niistaking the Conchos river for the Rid Grande. REDUCED RATES FOR GOPHER STATE FAIR The state railway commission {s ad- vised that the several railways serv- ing eastern North Dakota will sell round-trip tickets from Fairmount, Fargo and Wahpeton to Minneapolis from August 29 to September 6, on account of the Minnesota state fair, at 1 1-2 fare for the round trip. These tickets will be good for a return pas- sage not later than September 8, HELD AVIATORS WA ALamiTo" %~_ % CASA ong PIEORA® | SHAFTER 3% Fun PRESINED, & ns TERMS FROM TRUST “| Ninety-Eight Percent of Em- ployes Favor Walk-out If Con- cessions Demanded Are Not Granted — Samuel Gompers Heads Conference Committee —Ten Days’ Time Allowed U. S. Corporation to Reach Decision. Youngstown, O., Aug. 21.—On the success of leaders of 24 labor unions affiliated in the steel in- dustry in obtaining a conference with representatives of the Unit- ed States Steel corporation dur- ing the next ten days depends whether there is to be a nation- wide strike of steel workers. Union leaders who canvassed the strike vote here yesterday say that 98 percent of the men voted to walk out. Instead of calling. a general strike immediately a conference committee of six, headed by Samuel Gompers, president of ‘/the American Federation of La- bor, was instructed to try to ar- range a meeting with represen- tatives of the steel corporation in a final attempt to adjust de- mands made by the unions. In case of failure to obtain the con- ference the committee is under instructions to set a strike date forthwith. FRAZIER URGED TO SEND GRAIN MEN TO GOTHAM Congressman George M. Young Believes Barnes Should Be Told the Truth Governor Frazier has been urged by Congressman George M. Young to prevail upon Dr. E. F. Ladd, head of ‘North Dakota’s grain grading depart- ment, members of the state railway commission and its inspection service and a strong delegation of grain growers to attend 2 conference set for August 26 with Julius ‘H. Barnes, head of the United States grain cor- poration, in ‘his New York offices. The purpose of the conference, Mr. Young advises, is to impress upon (Mr. Barnes the justice of the grain growers’ contention that selling grades should be based on milling values alone. Grain growers from all the north- western wheat states are to attend this meeting, advises ‘Mr. Barnes. He urges that North Dakota delegates come supplied with a liberal assort- ment of samples of this year’s crop, which is, owing to drouth conditions, light and shriveled, but which is said to have an unusually high milling value. C. A. Lyman of Washington, representing federated farmers’ or- ganizations, warns the governor of the impcttance of this conference, as- serting that unless something is done to precent it, radical wrongs to the producers may be worked by the con- suming public of the large cities in a frenzied effort to adjust the living situation. SIX MILLION SHOELESS Prague, Aug. 21.—There are about 6,000,000 bare feet in Czechoslovakia today. Washington. D. CG. Aug. R1— Amendments to the food control act imposing a $5,000 fine and imprison- ment of two years for profiteering were ordered favorably reported today by the house agricultural committee. WILSON POWERLESS T0 PROCLAIM PEACE PRIOR T0 RATIFICATION OF , FORMAL TREATY BY U. §. SENATE President Informs Senator Fall That He Would Not Consent Under Any Circumstances to Declare War Officially at an End Prior to Favorable Action by American Statesmen—League Cannot Be Created by Affiliation of Only Two or Three Nations— Germany Constitutes Trusteeship. Washington, Aug. 21.—President Wilson has not the power to declare peace by proclamation nor could he consent under any circumstance to take such a course prior to the ratification of a formal treaty of peace by the senate. The president so wrote one of the twenty written ques- tions the senator presented at the White House conference Replying to another question, the president said the provision of the treaty stipulates that it should come into force after ratifi- cation by Germany and three of the principal associated powers, operated merely to establish peace between those ratifying powers and that it was “questionable whether it can be said that the league of nations is in any true sense created by the association of only three of the allied and associated governments.” Return of Normal Conditions. As to the question of when normal conditions might be restored, the president said, he could only express the confident opinion that immediate ratification of the treaty and accept- ance of the covenant of the league as written would “certainly within he near future reduce the cost of living” both in this country and abroad thru the restoration of production and commerce to normal, To Senator Fall’s questions. relat- ing to the disposition of Germany’s possessions, the president said, the ar- rangement in the treay conveyed no title to the allied or associated powers but merely “intrusts disposition of the territory in question to their decision.” Allies Hold Trusteeship. “Gern *s renunciation in favor of the principal allied and associated powers,” the president continued, .“of her rights and titles to her overseas vossessions is meant similarly to. op- vate as interesting in those powers a trusteeship with respect. of their final disposition and government.” SENATE LEADERS SPAR FOR TIME ON-PEACE PACT Indications This Morning ‘Were That Neither Side Wanted Immediate Action RESERVATIONISTS FIXED Washington, D. C., Aug. 21.—Lead- ers on both sides in the treaty fight in the senate were in doubt today as to when a vote would be had on the resolution of Senator Pittman, Ne- vada, democrat, of the foreign rela- tions committee, proposing reserva- tiong to the league of nations cove- nant separate from the resolution of ratification. Senator Hitchcock, the administra- tion leader, indicated there would be no effort on his part to bring immed- liate action, and Senator Pittman said he was not certain he would call the resolution up today. Pittman Acts for President. ‘Senator Pittman made it clear that in presenting the resolution he simp- ly was carrying out his own desire to get action along the lines suggested by the president in the White House conference Tuesday. While the group of republican res- ervationists led by Senator McNary of Oregon indicated they would stand to- gether for reservations in the final ratification resolution, some of them were not sure that in the meantime they would not favor the Pittman plan as a step in the right direction. Democrats Divided Democratic senate leaders appar- ently divided over the expediency of the comprised proposal for peace treaty reservations separate from the ratification today, decided not to press for action the resolution of Senator Pittman, democrat, of Nevada, em- bodying the comprised plan. The im- pression was given that the measure probably would be permitted to lie over indefinitely. The decision was taken after Sena- tor Pittman had made it clear that after introducing the resolution he acted on his own initiative and after Senator Hitchcock, the administration leader, had indicated it was not in- spired by the administration. MEXICAN BANDITS WHO ROBBED AMERICAN TARS ARRESTED BY CARRANZA Laredo, Tex., Aug. 21.—Mexi- can bandits, who robbed Ameri- can sailors in a launch from the U. S. S. Cheyenne off Tampico, early in July, have been arrested by Carranza secret police in Dona Cecilia, a suburb of Tampico, ac- cording to information received here today. Oe ee Re AAS BILL IMPOSING FINE OF $5,000 AND TWO YEARS’ IMPRISONMENT FOR PROFITEERS OUT OF COMMITTEE The legislation was proposed by At- torney General Palmer and extends the term of the act to include among the list of necessities “wearing ap- parel, containers of food, feed or fer- tilizers, fuel oil, and natural gas,”