The Bismarck Tribune Newspaper, October 3, 1919, Page 1

| BANKING BOARD ORDERS POST-DATED KS THROWN OUT OF STATE BANKS * doubtedly. will pitch “Hoa” THE BISMARCK TRIBUNE THIRTY-NINTH YEAR, NO. 227. BISMARCK, NORTH DAKOTA FRIDAY, OCT. 3, 1919. CH REDS SHUT OUT IN FIRST GAME || kere stews THe mie ror sox EMMA CLAYTONIS AT COMISKEY FIELD; KERR HOLDS | | VISITORS T0 THREE SHORT HITS Tide Turned for American League Pennant-Winners When South- |- paw Youngster Pitches Erro —Gleason’s Men Remain in Victory. rless No-Run, Three-Hit Contest Running as Result of Today’s 2 The Score: Cincinnati Chicago .. Schalk. CHICAGO, 3; CINCINNATI, 0 Comiskey Park, Chicago, Oct. 8.—Letting the Reds down with three scattering hits and pitching the first no-run game of the series, Kerr, the spectacular youn g southpaw of the Gleason crew, kept the White Sox in the world pennant race today by defeating the National league champs 3 to most enthusiastic crowd of. fans American league park here. 0, before one of the largest and that ever has assembled in the Manager Gleason announced last night that he would probably work Kerr today, but wiseacres predicted that he would change his mind when it came to the scratch and send in Cicotte or some othes veteran on the Sox staff. Gleason’s good judgment was justified when Kerr went in and pitched errorless ball from the start-off. The Reds were unable to find Kerr’s twisters. The three scatter- ing hits which the Cincinnati champs did garner counted for noth- ing, and the Reds were retired in one-two-three order. The game was the shortest of the three which have been played in the present series. Today’s batteries, Fisher and Rariden for the Reds and Kerr and Schalk for the Sox, were not announced until shortly before 1:45 this afternoon, when the Sox took the field for practice. Jackson was given an ovation by the fans.in the_left.field bleach- ers. faction when it was learned that Cicotte was not to have an op- portunity to redeem himself in the opening match on his home field. It immediately disap- peared, however, when it became apparent that Kerr was working in his most superb form. Umpire. Quigley was) behind |- plate, Nallin at first, Rigler on second and Evans at third: The Sox run-getting was confined to two innings, when,the American league champs bunched their seven hits for scores. REDS HAVE GOOD LEAD_ Chicago, IIL, Oct. 3—Carrying a two-game lead, the Cincinnati Reds to- day invaded the home territory of the Chicago White Sox for the third con- test of the world’s series, a game whicn virtually will decide whether the Am- erican league pennant winners are to be serious contenders for the cham- pionship or face an overwhelming handicap during the remainder of the series, The two teams, accompanied by some 2,000 Cincinnati: rooters, arrived here early today on board more than a dozen trains, , Fans began ,gathering at the baseball park last night wait- ing in line to purchase the admittance tickets placed on sale at 9 o’clock this morning, Discussion of series centered this morning largely on who would be given the pitching assignment by Manager Gleason of the Sox. Although Gleason announced last night in Cincinnati t he would probably select Dick K the sensational left-hander, there was a general feeling that Gleason would switch to one his veterans before game time. Eddie Cicotte, leading hurler of the American league, who was pounded from the box, in the fourth inning of the first game,'and Urban Faber, hero of the 1917 series, are considered the foremost possibilities. ELLER! OR FISHER For the Reds Manager Moran un- Eller or Ray Fisher, former New York Ameri- can league hurler, both right handers and both stars of . the Red pennant campaign, RAIL UNIONS WON’T PLAY UNLESS WHOLE KABOODLE COMES IN Workers Tell President Wil- son Just Where He . Jumps Off At. Washington, Oct. 3.—Rail- road unions representing |. -more than 2,000,000 workers | will not participate in the in-. | dustrial conference called by || President Wilson for next Monday unless the basis of labor’s representation — is changed to include the chief | onal and in Sc L There was. some.-dissatiss ||: COS WR eee POPEN FIVE MINUTES, OUT FIVE THOUSAND Some System to Banking Game in Kansas City Kansas City, Mé., Oct. 3.— —Five minutes: after. the Union Avenue-Bank of Com- merce opened this morning, five bandits entered the building and forced thespresi- dent, A. L. Bowdin,-four em- ployes and two depositors in- to a vault and escaped with $5,000 in cash. 4 ?. BOLSHEVIK DOPE CAUSED AFRICAN ARKANSAS RIOTS Death of Five Whites and Four- teen Negroes Ascribed to Lenine Teachings MUCH ‘LITERATURE FOUND Helena, Ark., Oct. 3.—With military control established at Elaine, center of the negro disorders which for 48. hours have thrown Helena and Phillips coun- ty into tormoil, the task of pacification was declared well under way today. Two negroes who failed to obey a command of the military patrél early today, were jfired on by the soldiers near Elaine and one was killed and another was wounded, A fourth mein- ber of the party was arrested, FIVE WHITES DEAD The white casualties as a result o7 clashes stood today at five dead and five wounded. With the exception of Ira Proctor a deputy sheriff who was seriously wounded all of the injured were reported recovering. So. more than 200 negroes have been taken into custody. 14 NEGROES KILLED The known negro dead today was 14 with other bodies reported in the cane brakes and underbrush about Elaine where most of the fighting oc- cured. A large amount of literature tendiug to show that the outbreak was due to propaganda circulated among negro tenant farmers making roseate prom- ises if the negroes would band together ‘and arm themselves has been taken posesion of by military and civil au- thorities, WAR DEPARTMENT READY TO HELP US WITH RIOTS Although North Dakota continues to enjoy a lamb-like quiet, the war tle- partment is prepared for any possible eventualities.. A wire from Washins- ton to the adjutant general's office yes- terday advised that in the event the use of federal troops became necessary in this state to quell a disturbance. direct applicatiqn should be made to Major General Leonard Wood, com mander of the central department, a= ‘Chicago. ( “We're very ‘grateful to say fur}. Manager Gleason sends in spec- tacular young left-hander who lets National champs down with three hits and wins first shut-out of series. HOPE FOR EARLY END OF STRIKE GOES GLIMMERIN’ Efforts of Mediation Between British Government and Men Fail PREMIER STANDING PAT Lloyd George Insists Workers Must Return to Places Before Pow-wow OTHER UNIONS NEGOTIATE Lendon, Oct. 3.—Negotiations between the government and labor :representatives, other than rail- way men, were resumed today in an effort to bring the authorities and railway representatives to- gether for a settlement of the railway strike, London, Oct. Hope for an early settlement of the railroad strike which seems to brighten, yesterday faded last night when it became known that ef: forts to meditate between government and national committees of railroad men had failed. That the situation is grave is generally admitted, Officials of the transport worker's union will secure another interview with Premier Lloyd George today and there will be meetings of executives of various units involved in the contro- yersy for the purpose of considering the course of action to follow. Premier Lloyd George insists the men must resume work, before negotia- tions can be reopened. Many teie- grams Were received at the local heat- quarters of the national union from provincial branches today urging that the premiers ultimatum be accepted but it was said by leaders of the cr- ganization that the governments order withholding the pay for the last week they had worked had precluded re- sumption. Newspapers which strongly support the government claim the latter is winning and urge no surrender, The same claim is made by the strike leac- ers as to their cause. CARR SEEKING TO RECOVER SUM DUE FROM MEDINA BANK Jamestown, N. D., Oct. 3.—Suit has been started by State’s Attorney J. W. Carr against the Dakota Trust Co, at Fargo, to recover balance of $3,000 du Stutsman county from the State Bauk of Medina, which failed several years ago. The county had $5,000 on deposii, $2,000 of which has been paid by the| receiver. The controversy over the ba- Jance is in the amount of interest which the county officials claim is du2 the county. The trust company: has of- fered to pay up the balance at 3 per cent interest, the rate which the county was being paid by the bank at the time of the failure. The county officials claim the rate of interest should be 7 per cent, making n difference of about $6,000 in favor of the county. They claim there is no good reason why the trust company should not pay interest on the money which it has held at the legal rate. FRASER HOME FROM GUARD BOARD MEET Adjutant General G. Angus Fraser returned last night from New York, where he had been in conference with the executive committee of the nation: guard association over the future of | the guard under the plan of reorganiza- tion proposed by the war départment. General Fraser is:a member of the thatiwe: don’t:needs/em;!*: remarked; the executive: board, having been.elected to adjutant general’s secretary, as he a the telegram, that. post (ati.the annual meeting :n St, Louis: last. summer, : RN ore ete' PRESIDENT WILSON VERY SICK MAN IS TAKING REST CURE Course of Treatment Expects Decree Entered . Upon. Today by Chief: Washington, D. C., Oct. 3—Although no official statement was, made by Dr. Cary T, Grayson, it was understood at the White House that there was lit- tle if any change in President Wilson's condition early this morning. President Wilson, said to be “a very sick man” by his physician, Dr. C T. Grayson, today entered on a period of absolute rest which it is said will be necessary for some time for his recovery from the attack of nervous exhaustion which a week ago inter- rupted his speaking tour. j This course of treatment was an- nounced last night by Dr. Grayson af- ter consultation with Dr. F. X. Der- cun, a Philadelphia neurologist, aod two Washington physicians. No Improvement Today - There was no improvement in Presi- dent Wilson’s condition this morning and Rear Admiral Grayson, his physi- cian, held another consultation with Reat Admiral. Stitt of the naval med-| F ical school and Dr. Sterling Ruffin, Mrs. Wilson’s family physician, who participated in_ yesterday’s consulta- tion with Dr. F. X. Dercun of Phila- delphia, ‘ rhe president slept some last night. With him is a- trained nurse who is! assisting Mrs. Wilson in caring for the patient. The president .has no temperature and his heart action is good, it was said at the White House. To Enforce Strict Quiet Orders of the physicians that the} president be kept absolutely quiet will} be strictly enforced, Secretary Tu- multy said today. No official business will be brought to the executive’s at- tention no matter how pressing Mr. Tumulty said and no one except mem-} bers of the immediate family will be permitted to see him. | It was announced officially that the turn in the president’s condition would not interfere with the industrial con- ference next week. In the event that the. president is not able on Monday! to address a communication to the| conference Secretary Tumulty will notify them of the president’s desires regarding the. selection of ‘a perma-; nent presiding officer. Guaranty Board Called to, Meet The state banking board today ad@pted a resolution calling upon the state deposi- { tors’ guaranty fund commis- sion to\meet as soon as pos- sible to take any steps which may prove necessary in con- nection with the Scandina- vian-American bank matter. “We do not know that there. will be any actual |; shortage,’ said Attorney General, “but*we wish to be prepared for emergencies.” H.. J. Hagen, president of the Scandinavian-American |, ‘}lateral of th | Attorney General Langer, ASKED TO TURN OVER SECURITIES Nonpartisan League Employe in Charge of Loan Collateral Ordered to Disgorge LEAGUE MUCH EXERCISED “Politics” is Cry of Townley Organs—Broadsides for Hall \ and Langer Today Fargo, N. D., Oct. 3—Mrs, Emma Clayton, the employe of the Nonparii-| san league and the Consumers United Stores Co., Who had charge of the col- se two organizations held by the Scandinavian-Ametican bank of Fargo, which was closed — yesterday, was ordered today by P. E, Haldorson, temporary receiver, to surrender all authority over such collateral to him as receiver. Haldorson this morning furnished a bond for $100,000, O. E. Lofthus, state bank examiner, ll absent from the state, but is ted to return by Saturday from Florida. All employes of the Scandinavian- American bank who were employed in} the institution when its doors — wer: closed yesterday afternoon are be’ retained temporarily by the receiy Assistant Attorney neral Sheets said today that he personally had ne statement to make in connection with the closing of the bank. He would net comment on charges made by the Nonpartisan league oflicial publications that the closing of the bank was a political move. FORMER EMPLOYE HERE Mrs. Emma Clayton formerly was in the employ of the North Dakota coun- cil of defense here. Upon leaving this position she returned to Fargo to take a post of a highly confidential nature is with certain of the Nonpartisan league j enterprises there. She is known to have been entrusted with many of the secrets of the “inner circle” of the Townley organization, The examination of the Scandin1- yian-American bank revealedj the fact, it is alleged, that while notes and} post-dated checks of the Consumers’ United States Co. presumably wer held by the bank as security, th actually were in the hands of Mrs. Clayton, “TRANSIENT COLLATERAL” | The examiners report says; “The | collateral held by the bank for the| Consumers’ Stores Co. loan (which} amounted to $170,000) and for the ‘ational Nonpartisan league ($14! 24.26) IS IN THE CONTROL AN OF ONE MRS. EM WHO IS IN THE THE TWO DE MENTIONED. (The Consume er Stores Co. and the National Nonpar- tisan league.) This collateral, while; t in the vault of the bank, is acces- sible to her at all times and under her direction, AND BY HER IT IS TAK- EN FROM THE BANK AND PLACED UNDER THE CONTROL OF THE DEBTORS OSTENSIBLY FOR TH PURPOSE OF COLLECTION, AND NOT UNTIL RECENTLY HAVE EVEN RECEIPTS BEEN GIVEN TO THE BANK TO SHOW THAT SUCH SPECIFIC COLLATERAL HAD BEEN SO REMOVED. Mrs. Clayton is the only person who nowledge of the amount of collateral on hand and its correctness, She has her office in the rear of the building, and her figures-are taken by the officials of th> bank as true and correct.” The report disclosed the alleged fact that when the state’s examination was made, $291, of the Consumers’ United Stores Co. paper given as col- lateral for its loans was not in the bank, BUT IN THE HANDS OF THE CONSUMERS’ UNITED STORES CO. FOR COLLECTION, HAS ITS ADVANTAGES The advantages of such a scheme will readily appeal to any frenzied financier, Given another bank as ob: || liging as the Scandinavian-American bank is alleged to have been, Mr. ‘Townley two organizations could have extracted double-service from t! collateral, depositing it one day in one bank as security for one loan, and re- moving it the next to another bank as security for a second loan and so on, ad libitum. There are a half-dozea other Nonpartisan banks allied with the Scandinavian-American bank and more or less under the same contract. There is yet no evidence to indicate that they have practiced the system of Yoans which the examiners’ report al- \leges was in effect at the Scandinay- ian-American bank. LEAGUE MUCH CONCERNED Thay the league is very deeply con- cerned in the disclosures relating te the Scandinavian-American bank is in- dicated by the amount of space given explanations and rebuttal, consisting of charges of political machinations against Secretary of State Hall and which ap- pear today in The Courier-News and other league organs. Oliver S. Mor formerly Secretary of the state inglus- trial commission and who is editor of the National Nonpartisan Leader at St. bank, is chairman of the guaranty. fund commission, to which he was' appointed a ‘ew,, weeks ago by Governor e : _e PRICE FIVE CENTS TOWNLEY’S FAVORITE FORM OF COLLATERAL 1S NOT ACCEPTABLE Every dollar’s worth of post-dated checks held as collateral by North Dakota state banks was ordered thrown out at once and replaced with cash or other acceptable as- sets in a resolution adopted by the state banking board this morning. This action, it is said, will compel a large percentage of North Dakota’s 700 state banks to replace several! hundred thousand dollars worth of post-dated notes, represented principally by paper of this description which has been sold by the Nonpartisan league, the Con- sumers’ United Stores Co., the League Ex- change, the Publishers’ Service Bureau or . associated Townley enterprises at a liberal . discount, for cash. The banking board in the same resolu- tion directed the state bank examiners to immediately make a thorough investiga- tion of the affairs of league banks asso- ciated with the Scandinavian-American bank of Fargo, which the board closed yes- terday on a report showing the holding of $734,194 in excess loans. The banks ordered examined this morning are recently organ- ized Townley institutions at Courtney and Hillsboro, the People’s State bank at Grand Forks, the People’s State at Casselton and the First National at Sheyenne. Stock in these institutions is held almost exclusively by farmers of the respective communities, to whom it was sold by Townley bank or- ganizers, it is said. Attorney General Lan- ger yesterday wired these banks to prepare for any possible emergency which might result from the closing of the Fargo bank. The temporary embarrassment of a quarter million in public funds, the complete obliteration of the state bank depositors’ guaranty fund, and the levying of a substantial assessment on each of the state’s more than 700 state banks to make up the deficit are possible developments which may result from the Scan-, dinavian-American bank scandal which broke upon the public. Thursday when the state banking board directed the closing of the doors of the Fargo institution. _ J. R. Waters, manager of the Bank of North Dakota, admitted yesterday that the Scandinavian-American bank has $137,447.02 in county and city funds and $47,869.80 in agricultural college funds redeposited with that institution by the Bank of North Dakota. In this respect no favoritism was shown by the Bank of North Dakota, states Mr. Waters. In practically every interest public funds which had been held by local banks and which were transferred to the Bank of North Dakota under the new bank act were redeposited with the original repositories. This was done in Fargo, where the funds were redeposited on their original basis. Other Gate City banks, states Mr. Waters, have larger redeposits of public moneys than the Scandinavian-American has because they were originally repositories for larger amounts. Reports current in Fargo yesterday to the effect that the Bank of North Dakota had recently loaned the Scandinavian- American bank $125,000 without security were vigorously denied today by Major Waters, but the manager of the Bank of North Dakota admitted that this institution might have $125,000 or more on deposit with the Scandinavian-American to care for current business in the Fargo district. ) WOMAN AUTOMOBILE | BANDIT BAGS PAIR | OF COYOTE VICTIMS Demmit, S. D., Oct. 3— | | Two residents of Fort Pierre woman automobile _ bandit | and her male accomplice, ac- | cording to reports received | here today. They were re- lieved of $250. Several tour- ists in this section who have, reported being robbed by the pair say the woman is clearly the leader of the holdup | team. > > BREST AND PARIS ONLY SECTORS TO BE HELD BY U.S. Washington, D. Cj, Oct. 3—Brest and Paris will be the only sectors in s,)which active American garrisons will be maintained after October 10, the war department announced today. Paul, also has & long interview in the{Small detachments of railway and Associated Press service today concern- signal corps troops will be busy for ing the matter. Mr, Morris, although he has spent very little time in Norti. Dakota.for the last, three, years, eseays 1, to speak with authority on the benking Policies of the Scandinavian-American. Some time in outlying districts, and a contingent of about 55 officers and men liquidation matters, | | were the latest victims of a |} i} |{mo sense loans. “We probably have carried as {much as $125,000 or more with the Scandinavian-American bank ||to protect our ‘float’ in that ter- ritory,” said Major Waters. “We have carried considerably more than that amount with other Fargo banks, merely to protect |;our checks as they were present- ijed. We have $800,000 on deposit ||for the same reason with one Twin City bank. These are strictly deposits} subject to our check, however, and they are in In the case of the Scandinavian - American bank, which is a state institu- tion, any deposit which we now have there would be protected through the depositors’ guar- anty fund.” Favoritism Alleged That the administration has shown the Scandinavian-Ameri- can bank special favors was al- leged last August by State Audi- tor Kositzky, who called atten- tion to the fact that while the state board of audits had allotted the Scandinavian-American bank only $25,000 of North Dakota’s public funds, this institution was actually carrying at that time 55 of and me) cess of in. England attending to i260 capitals: Thiay MR $66,157.98, ee was $16,157.98 the bank’s ain : J is (Continued: on: Page.