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

‘HE WEA’ Fair tonight. HE BISMARCK TRIBUNE THIRTY-NINTH YEAR, BISMARCK, NORTH DAKOTA SA’ 'URDAY, OCT. 4, 1919. PRICE FIVE CENTS LEAGUE BANKERS ARRESTED ROBINSON GLAD WE'RE TO HAVE SPECIAL SESSION THAT WILL DO SOMETHING REAL FOR NONPARTY Extravagant Expense Bill Spell Downfall of Public Ownership, Declares Venerable League Jurist, Who Sees Reason in Ko- sitzky’s Fight to Save Something Out of Taxpayer’s Dollar— WILSON, ILL BUT SMILING Used Fred Cathro’s Latest Room and Board Bill as Subject for Saturday Evening Sermon. “Yes, I’m glad we are soon to have an extra session to make laws regulating the state funds, state industries, the appropria- tions and the taxes,” says Associate Justice James E. Robinson, the octogenarian league member of the North Dakota supreme court in today’s “Saturday Evening J,etter.” “To a great extent,” he continues, “Mr. Kositzky, the state auditor, is right in trying to show that taxation and state expense have been running wild. In time I purpose to write that up and to give the exact figures that no.man can dispute, and do it specially for the good of the league, because the league cannot live and pros- per without reducing taxes and_expenses. “The state expense account—look how it climbs up: “F, W. Cathro, director general,-salary $10,000 a year. “August 23 to September 23, room and board at the hotel, $157. “Yearly salary of employes appointed under new regime, $185,000. “Appraisement of‘ Drake Mill, $503.96. “It must be that the director general is an awful wise man, with a salary twice as much as the governor and the judges of the supreme court. He knows enough to charge the state for his room and board at the grand hotel, while I—a jurist of fame and fortune—go ’round looking for crusts to rebuke the high cost of living. But in future I may profit by his example. Then think of $500 for an appraisal of the Hinky Dinky Drake mill! Would ever any private purchaser pay so much for an appraisal? To make public ownership a success the session must arrange to put a strict limit to salaries and expenses. If public service can not be made. as cheap and as efficient as private service, then we must look for the wreck and ruin of public ownership.” Judge Robinson refers particularly to the last expense account of F. W. Cathro, director general of the Bank of North Dakota, who draws an annual salary of $10,000 as compared with $5,000 for J. R. Waters, manager of the bank, and who at the same time asks the state to pay $157 per month for his living expenses at the local league hotel—$70.50 for his room and the remainder fcu meals costing from 70 to 95 cents per each. Judge Robinson pays less for room:and meals and he pays it out of his salary as associate justice of the supreme court. W..H. McIntosh of Bottineau, a partner in the real estate business with Mr. Cathro, also appears in the bill at $150 for 10 days’ appraisal of farm loans and $212.00 for expenses. a ah eek au 4 Renicy Judge Robinson’s Saturday Evening Letter follows: SATURDAY EVENING LETTER UNION LEADERS (By Justice J, E. Robinson.) October 4, 1919. Glad am I that we; are soon to have an extra session of the legislature to correct and undo several measures passed at the last general session ; ‘also, to fix a schedule of the maximum and minimum prices, to end or give a check to profiteering and the high cost of living. A good statute to repeal! is the one which in- vites picketing and striking,' loafing! and idleness. Any party is free to quit a job, unless when he is bound by contract, or when he has no regard fer his contract, but he is not legally free, and the law cannot make him free, to coaspire with others to carry on a kind of civil war against his employ- ers and their workmen. And if picket- ing and striking is to merit the ap- proval of the lawmakers, why should no? the law give to pickets and strik- ers their daily bread and butter, with a fair compensation for their time. Then their would be less reason’ for a resort to lawlessness. And, of course, the farmers should be treated in the same manner, in case they determine to strike and to grow only such fooa as they need for themselves. For a short Ume the state may give to every man ‘a pension or permit the general looting of those who have laid up a store against the lean years which are sure to come. This they did in ancient Rome, but soon the state became bank-! rupt and went under. No country can; hope to Succeed and prosper unless the great majority of the people are given to habits of thrift and industry. Our Indians were good Socialists ; they had all America before them and under) their control, and yet they roamed over, endless wealth, ljving from: hand to mouth or starving because they knew nothing of thrift and industry, and because they knew not the means an1 the benefits of securing individual, titles to property. No man will sow that others may reap the hai'vest. Were it not for, the tied of home aul property, in one generation most of the humans would revert to the state of thd American Indians. ‘In the human race, as in lower animals, it is much easier to breed down than to build up.! Our statute on picketing and striking is no compliment to the wage earners. It classes them down as infants by permitting them to disregard their con- tracts and to assume a state of idle- ness and lawlessness, whereas the power to make a valid and ‘bind- ing contract is a blessing to ev- ery honest, and _ intelligent —per- son. What if Jacob had not been able to make a binding contract to work seven years for Rachel and then seven years for her sister? Why, we might never have heard of the Jewisn race or of Moses and’ the Prophets. Yes, I’m glad we are soon to have an extra session to’ make laws regulat- ing the state funds, state industries, the appropriations and the taxes, ‘To # great extent Mr. Kositzky, the State Auditor, is right in trying to show that taxation and state expenses have been running wild. In time I purpose to -write that up and to give the exact figures that no man can dispute, and to do it specially for the good of the League, because the League cannot (Continued on Page Six) ADMIT MEMBERS ARE DESERTING Defections in Ranks Weaken Cause of Steel Workers, It Is Said WALK-OUT_ IS FAILING (Associated Press) Admission by union leaders of de- fections in the ranks of the strikers in the Chicago and Bethlemen districts were the principal developments to- day in the steel strike. They have been no indications thus far of com- promise on either side over the main points at issue—the right of employes to engage in collective bargaining through unions affiliated with the American Federation of Labor. Reports from the Chicago district indicated that quiet prevailed there to- day after yesterday’s disturbances at Indiana Harbor, Ind. in which two men fired at a crowd of strike sym- pathizers who attempted’ to prevent them and others from going to work. Employers announces that more men were returning to work but union leaders claim that they were «un- skilled workmen and that their re- turn. would not weaken the strikers position. Labor leaders at Bethlehem, Pa., reduced the estimate of employers of the Bethlemen Steel Co. affected by the strike from 85 per cent to 75 per cent, but announced that they were satisfied with the situation. , In the Pittsburgh and Youngstown districts there was no material change in the situation. At’ Washington the senate labor committee resumed its investigation of the strike. * GUARANTY FUND COMMISSION ' TO MEET NEXT WEEK The state depositors’ guar- anty fund commission will meet at the capitol either next ‘Monday’ or Tuesday, Deputy State Examiner Gil- bert W..Semmingsen an- nounced this afternoon. Tues- day is the regular meeting date, but there are indica- tions today that tha board might meet one day ahead of, time because of the possible | emergency created by the closing of the doors of the Scandinavian-American bank of Fargo, whose deposits are sg aS OES PEN Eighty-seven per cent of all the autos in the world are in the United insured in the state guaranty fund. WASHINGTON.—President Wilson, despite his illness, had not lost his smile when he arrived in Washington after abandon- ing his speaking tour. But back of the smile there is a drawn look as an attendant helps him to his waiting motor car. CINCINNATI WINS THIRD GAME WHEN FIVE HITS AND TWO ERRORS BRING IN TWO RUNS; WHITE SOX GET BLANK American League Champs’ Stock Slumps in Chicago; Cicotte Fails in Effort to Redeem Himself—Ring, Red Youngster, Pitches Wonderful Game—Two Errers Checked Up Against Each Team. CINCINNATI, 2; CHICAGO, 0 The Score: Cincinnati Chicago . Batteries—Ring Schalk, Comiskey Park, Chicago, Oct. 4.—White Sox stock slumped today when the Cincinnati Red sluggers hammered out their third victory in an. air-tight game which resulted in a blank for the American league champions. The National pennant winners scored two runs, in the fifth. Cicotte went in today to redeem himself before his home fans and, while.he pitched good ball, he did not prove equal to the occa- sion. The Reds touched up the American league veteran for five hits which, coupled with two errors, gave the visitors their two runs and the game. Ring, one of the Reds’ youngsters, pitched a phenomenal game. The Sox connected wtih his delivery for only three scattered hits, and at no time was there great danger of the Americans’ scoring. CICOTTE VS. REUTHER AGAIN Chicago, Oct. 4.—Reassured by a 3 to 0 victory over the Reds in the third game of the world series, the Chicago White Sox declared today they were ready to back up Eddie Cicotte, their one-time , shattered “ace” with the fighting spirit that brought them the| pennant in the American league and even the series at two to two. The Reds did not believe they again would encounter such marvelous pitching as | shown by Kerr, midget hurler of the White Sox. The crowds that began forming about the park before midnight last night indicated that the 35,000 capac- iyt of the enclosure would be taxed today. The approximately 4,000 va- cant seats in the bleachers and pa- vilions yesterday could not be regard- ed as indicative of the interest of Chi- cago and other middle western. fans in the series. According to the owners, though such a situation plainly was disappointing. Profiteering Squelched The partial squelching of ticket scalpers by government revenue ‘offi- cers who took 12 alleged pasteboard profiteers in downtown hotel Idbbies and around the park also was expected to add to the admissions today at Comiskey park. No announcement from either Man- ager Gleason of the Sox or Moran of the Reds was forthcdming as to his pitching selection. for today’s game, ut it generally was supposed that Cicotte would face the Reds and either {Reds':moundsman. » Reuther or Hod Eller would be the | \Clemenceau Asks League Session Paris, Friday, Oct. 3.—Premier Clemenceau has written Col. E. M. | House urging that a’ meeting of the league of nations be held in Washington under the chairman- ship of President Wilson early in November. The premier’s letter, which outlines his reasons for the calling of such a session, was offi- cially published today and was written Sept. 4, 1919. FIUME BLOCKADE | ORDERED LIFTED Mail and Other Supplies Allowed to Enter City Rome, Oct. 4.—Orders that the blockade of Fiume be lifted has been issued by the government, and jItalian authorities in the vicinity of Fiume have received an order to allow mail and foodstuff to pass into the city according to the Epoca. The military blockade against the soldiers and civil- ians entering the city is all that is inow being enforced, according to the was taken after the government had {the-Piume-nationat council: newspaper, which says the decision| meet people, WARRANTS OUT FOR ARREST OF BANK OFFICERS State’s Attorney Green of Cass County Asks Apprehension of Hagen and Sherman DIRECTORS WOULD REOPEN Ask Temporary Receiver Haldor- son for Requirements—He Says “Put Up the Money” Warrants were issued at Fargo to- day on complaint of State’s Attorney Green of Cass county for the arrest of President H. J. Hagen and Cashier P. R. Sherman of the Scandinavian- American bank, whom Green charges with responsibility for the condition which resulted Thursday in the clos- ing of this institution by the state banking board. The warrants were issued shortl. before 2 o’clock on complaint of P. E. Haldorson, deputy state bank exam- iner and temporary receiver, who al- leges that the officers exhibited to the state bank examiners false statements as to the actual condition of the bank for the purpose of concealing its al- leged insolvency. DIRECTORS WOULD REOPEN Fargo, N. D., Oct. 4—Representa- tives of the board of directors of the Scandinavian-American bank of Fargo have called on Receiver P. E. Haldor- son for a statement of requirements that would have to be met to obtain the return to them of control of the bank, it was said today. They were informed that it would be necessary for them to put up the cash necessary to meet the bank’s ob- ligation today. Directors’ Liability Direct liability . Joint liability . Endorsers . Overdraft . 31,210.89 - 9,964.00 » 21,076.57 196.97 By “direct liability” is meant notes of the directors given to the Scandinavian-American bank on loans; under the “joint liabil- ity” clause is included debts due the bank for which certain in- dividual . directors _ are _ jointly liable with others; the third item includes notes endorsed by indi- vidual directors, while the fourth item is the overdraft of an indi- vidual member of the board of directors, Spurgeon Odell, a Nonpartisan league lecturer who came to North Dakota from southern Minnesota, is the only active Nonpartisan league employe on the board of directors of | ,, the Scandinavian-American bank of |* Fargo which was closed yesterday by the state banking board. Mr. Odell, according to the state- ment listing directors, holds in his own name 10 shares of the capital stock of the bank. He has been in the institution only since the retirement last March of John Hastings, former financial agent of the Nonpartisan league, who stepped out of the bank at the time of the Valley City bank deal, with which he was identified, and in connection with which he received con- siderable notoriety. So far as known, Mr. Odell had no active part in the management of the bank, the active management of the institution being in the hands of Hal- vor J. Hagen, the president, and P. R. Sherman, the cashier. The report of the bank examiners as to the liability of the officers and directors of the bank discloses. that there have been only two meetings of the board of directors within a calen- dar year. Directors Inactive The directors’ discount committee, consisting of Directors Christianson, Bolley, Headland and Eggen, accord- ing to the report of the examiners, has been totally inactive. JACK PERSHING IS GOING TO BE HERE FOR SOLDIER FEED Under President Signature Appears on List of Former Service Men Who Will Attend Dinner Jack Pershing is among those who have signed the list of former soldiers, sailors and marines who will be in the city for the home- coming celebration October 15. Whether it is the better known General “Black Jack” Pershing of A. EF. F. fame or just a buck priv- ate in the rear rank could not be determined from the signatur More than 100 former servic men have signed the list at Harris & Co, signifying that they will be on hand when the War Mothers toll the dinner bell the night of October 15 for the big turkey feed < the women areoing to give every former ‘service man who is in the city. The War Mothers wish that all soldiers and sailors who will be here for the dinner will sign up immediately so that they will know how many will have to be fed. It is estimated that about 450 men will be here, each one with a keen appitite for turkey and trimmings. Says the librarian of congress: “We every day who cannot look up words in the dictionary be- examined and discussed a protest from} cause they have not learned their A veo oso BC: alphabetical -ordery? ~~ J. R. WATERS, MANAGER BANK OF NORTH DAKOTA, SUBJECT OF RESOLUTIONS A heated session of the state banking board this morning with Governor Frazier an indignant and frantic minority, resulted in the adoption of resolutions censuring J. R. Waters, manager of the Bank of North Dakota, for alleged duplicity, while state bank ex- aminer, in ‘tipping off” to the Scandinavian-American bank of Fargo, now in the hands of a temporary receiver on a charge of having made three-quarters of a million in excess loans without adequate security, prospective visits of bank examiners, and reso- lutions revoking the temporary permit granted the United States Sisal Trust, of which Waters is president and Job Wells Brinton, another Townley lieutenant, one of the principal executives, to solicit the sale of stock in North Dakota. The resolutions adopted by the banking board with respect to the sisal.trust recite the alleged fact that this corporation was a heavy borrower at the Scandinavian-American bank of Fargo, now in the hands of a receiver, and that such loan was not secured in any way. Manager J. R. Waters, manager of the bank of North Dakota and president of the sisal trust, interviewed on the subject this morning, stated that the loans standing in the name of the United States Sisal Trust on the books of the Scandinavian-American bank, were made to J. J. Hastings, Townley’s former financial secretary, at a time when Hastings, Box and associates were pro- moting the sisal exploitation in Florida, and:that they were taken over by the present corporation to protect original investors in the Hastings scheme. “Neither Mr. Brinton or myself, representing the present sisal organization, has ever received a penny of value on these loans,” said Manager Waters of the Bank of North Dakota. “These loans were made before we became conncted with the United States Sisal Trust, and we were forced to take them up to protect innocent parties who had their money invested. We voluntarily assumed this obligation on behalf of the corporation.” SEES T SECTS SSE COC COTS, WILSONIS BETTER TODAY—PARIS IS MUCH CONCERNED President Had Good Night’s Rest and Seems to Be Improy- ing in Health The resolution accepted e banking board’ follows: U. 8. SISAL TRUST Whereas, It has come to the knowl- edge of the Banking Board that the United States Sisal Trust, a common law corporation, organized under the laws of Massachusetts, of which J. R. Waters, of Bismarck, formerly Publie Examiner of this state, and at preséit manager of the Bank of North Dakore, is the President, and Whereas, It has come to the notice of this Board that the United States Sisal Trust, by J. R. Waters, was a heavy borrower at the Scandinavian: American Bank, of Fargo, ndw int the *~ hands of a receiver, and that such 1oa2 Was not secured in any way, and _Whereas, The said United States Sisal Trust procured from the Bank- ing Board, acting as a Blue Sky Com- today by FRENCH SEE OPPORTUNITY Believe Senate, Left to Itself,’ Will Appreciate in Full Its Responsibility ¢ Se ee | RISKS INJURY TO! GET MEDICINE TO PRESIDENT WILSON Boston, Oct. 4.—John Pur- cell, mail dispatcher at the South station, risked possible injury when he stopped the federal express to Washing- ton to expedite the delivery of a package of medicine for President Wilson last night. A messenger shouted “medicine for the president” as he dashed into the mail room. The express was then pulling out of the train shed and Purcell ran across the network of yard tracks and posted himself in the glare of the oncoming engine’s headlight. The train was de- layed two minutes. The parcel was addressed to Admiral Grayson and was marked “urgent special delivery.” Washington, D. C., Oct. 4.—Presi- dent Wilsons condition was morg fav- orable today, early today the president having had a good nights rest, said a bulletin issued at 10:50 o'clock this morning by Dr. Grayson, The Bulletin follow “White House, Oct. 4, 10:50 a, m. “The presideut had a good night’s rest and his condition is more favor- able. Signed—Grayson.” The president’s temperature and pulse are normal, and the president is said to be cheerful, though becoming, somewhat restless about being confined to his bed. Two specialists who had examined the president before were summoned to Washington today. -They were Dr. F. X. Dercun of Philadelphia and Dr. George D. De Schweintiz, an ey specialist, also of Philadelphia. They were to have a consultation with Dr. Grayson and Dr. Skitt and Ruffin of i ly, who have been assisting the ident’s physician. PARIS MUCH CONCERNED Paris, Oct. 4.—Special prominence is} given by all newspapers here to Wash-| ington dispatches relative to the illness! of President Wilson and editorial _com- ment reflect the ‘concern felt in Paris over his condition. . The Echo d’Paris says,\the presi- dent’s illnes “means the American seu- ate will be left to itself, which perhaps is a good thing, as the opposition losing a counter: party loses if not some force at least of its violence. “The eclipse of such a great factor,” says the Journal, “is an event full of mission, a temporary permit, author- izing them to solicit sales of their capital stock or debentures throughout the State of North Dakota, pending an investigation to be made by Mr. Lof- thus, the Public Examiner, of the cor- pany’s project in Florida, all of which appears at this time to be detrimental to, the best interests of those who may be induced to buy the securities of the Said Sisal Trust, Therefore, Be it resolved, that the temporary permit issued to the United st, authorizing them to solicit of its stocks or debentures in state, be withdrawn and cancelte? y notice under this date, given * to id J. R. Waters, by the Public Exam- iner, acting as Secretary of the Bank- ing Board, and that said notice to Mr. J. R. Waters be made by registere1 mail, and that the return receipt be |recorded in the office of the Public Ex- aminer in a permanent record, and such receipt be reported to the State Banking Board at its next special or regular meeting after the receipt there- of, and spread upon the permanent minutes of this board. Langer and Hall. Nay—Frazier. J. R. Waters Whereas, It has come to the knowl-! edge of the State Banking Board that during the administration of J. R. Wa-' ters as Bank Examiner of the State of North Dakota, which terminated a few weeks ago, the Scandinavian-American Bank of Fargo was repeatedly given advance information. as to the time: when the Deputy Bank Examinet’ would examine said bank; and Whereas, all of this was done by the said I. R. Waters without knowledge on the part of’certain members of the’ Banking Board, and this knowledge, coming as it does immediately sulk sequent to the closing of the bank, by order of this Board, causes the mem- bers thereof much concern and eml#ir- rassment, and it appearing that the public should have some explanation as to why the condition of this bank’s af- fairs was not made known to this Board, and a receiver appointed months ago; Now, Therefore, Be it resolved, That the members of this Board placed upon its minutes of today an explicit denial of. any prior knowledge of the an- toward condition of the Scandinavian: American Bank, or its insolvency, prior. to the receiving of the report of the special examination made by the Bank Examiners, under the direction of the Attorney General, and that Mr. Langer be requested to give copies of this re- solution, or the gist thereof, to the publit press, So that the people of the state may know that the members of this Board have not connived at per- mitting an insolvent, quasi-public in- stitution to continue in business ‘and accept public moneys. i Aye—Langer and Hall. Nay—Frazier. SLIDE KILLS AGED WOMAN London — When 10,000 tons of granite and rubble fell into a q at St. Sampson’s Guersey, Mrs, Wil consequences as no one can replace |Mr.. Wilson.” ~~ eh ee yee liam Martin, 84, was buried ben cs