The Bismarck Tribune Newspaper, October 6, 1919, Page 1

.CK. TRIBUNE “NINTH YEAR, NO. 229. BISMARCK, NORTH DAKOTA MONDAY, OCT. 6, 1919. PRICE FIVE CENTS a ie | BANK O F DAKOTA IN CHARGE | F AUDITOR CARL KOSITZKY LANGER ORDERS EXAMINATION OF STATE ENTERPRISE As a result of the alleged unearthing in the files of the Scandinavian- son, Much Improved, Desires to Prepare Statement for Con-| American bank of a carbon copy of a letter transmitting something like $325,000 in collateral securities held by this institution to the Bank of North Dakota, Attorney General Langer at noon today ordered State Audi- tor Kositzky, “for the protection of the taxpayers of the state,” to imme- diately make an examination of the Bank of North Dakota. Mr. Kositzky undertook this task at 1:30 this afternoon. A copy of the letter of transmittal alleged to have been found in the Scandinavian-American bank files was received by Attorney General Lan- ger shortly before noon today. State Auditor Kositzky received his in- structions fifteen minutes later, and within two hours after the arrival of the attorney: general’s information the examination was expected to have begun. The securities which are alleged to have been transferred to the Bank of North Dakota by the Scandinavian-American, said to aggregate nearly a third of a million, are indicated by the letter, it is said, to have been of the same type as the collateral which the National Nonpartisan league, the Consumers’ United Stores Co., the League Exchange and the Publish- ers’ Service bureau, all Townley enterprises, put up as security for almost a half million in excess loans from the Scandinavian-American. Attorney General Langer’s instructions to State Auditor Kositzky were communicated in the following letter: INTEREST IN NATION'S INDUSTRIAL’ CRISIS CENTERS IN ROUND TABLE CONFERENCE IN WASHINGTON TODAY Capital, Labor and the Public to Set in on Talk Which May Solve Critical Situation Which Confronts America—President Wil- ferees, But Rear Admiral Grayson Vetoes Motion. Washington, D. C., Oct. 6.—Interest in the nation’s industrial situation brought to a point regarded as critical because of the increasing controversy between capital and organized labor cen- tered here today where representatives of the three big elements in. national life—capitol, labor and the public—were to sit in con- ference. Their aims as expressed in the words of President Wilson when he issued the call for the meeting will be to arrive at “some common ground of agreement and action with regard to future of conduct of industry.” 1 Final details of arrangements for ‘the conference were com- pleted last night when Secretary of Labor Wilson, Attorney Gen- eral Palmer and Bernard Baruch, the last named one of the public’s representatives, conferred with Secretary Tumulty. The confer- ence, which will be held in the Pan-American building, will be SQUIRM; ANXIETY MAKING INROADS President Wilson’s condition steadily is improving his physicians made it clear today they did not intend to relax their treatment of absolute rest. Those attending the president are much encouraged at his improvement and feel it is likely to mean he is de- finitely on the way to recovery. They regard absolute rest aS an essential safeguard against the development of a relapse. Mr. Wilson was described today as chafing somewhat’ because he was not permitted to give any attention to of- ficial matters, but Rear Admiral Gray- son, his personal physician, said on the Doubt as to Where Lightning Is to Strike Next Is Killing whole he was proving a “good patient.” He wanted to prepare a statemen’ for the industrial and labor conference here today but his physicians would not agree to it, CONTINUES TO IMPROVE President Wilson continues to im- LANGER KEEPS SECRETS ‘| Townley Espionage System Fails prove and passed a’ satisfactory night, said a bulletin issued at 11,a,.m. to- day and signed by Rear Admiral Gray- son, the president’s personal physician, Rear Admiral Still, head of the naval medical school here, and Dr. Sterling Ruflin of this ety. cc ReaeS RAIL MEN TO JOIN IN Washington, D. C., . Oct. 6—Repre- sentatives of all the railroad workers’ unions, including the four big brother- hoods, will participate in the industrial conference which begins here this af- ternoon, Timothy Shea of the firemen announced after a conference of the union heads. The railroad men accepted the com- promise proposal of President Wilson that the four brotherhood have one delegate each and the 14 unions: affi- liated with the American Federation of Labor be represented through the fece- rations delegates. Burt M. Jewel aci- ing president of the railway employes department of the federffation, wil. participate as delegate for the public. ¢'S HAGEN AND HIS CASHIER WAIVE JUSTICE TRIAL President and Chief Assistant in Closed Bank Go to Dis- trict Court RECEIVERSHIP IS. ASKED ‘Attorney General'Makes Formal Application as Required by Law Fargo, N. D., Oct. 6.—Counsel for H. J. Hagen, president, and P. R. Sherman, cashier, of the Scandina-| pronces at the capitol Tuesday moin- vian-American bank, arrested Satur- day on charges of exhibiting to the bank examiners false statements as to the conditions of the bank, this morn- ing advised State’s Attorney. William Green of Cass county, tat they would waive examination in justice court this afternoon. ‘ By stipulation the preliminary hear- ing, originally scheduled to be ‘held tomorrow, was advanced one day. This will permit Hagen, the accused bank president, to go to Bismarck to attend a hearing of the state deposits guar- anty commission, of which he is chair- man. The commission meeting was originally called to be held today but was postponed. Asks Permanent Receiver , Attorney General William Langer to Work as of Yore The last 48 hours have been trying ones for Townlef chieftains at’ the ger’s next ‘move ih the, Scandinavian- | American bank scandal. They are con- fident that Langer has some high cards up his sleevé, bait for once the elabor- ate Townley system of espionage has fallen down, and no inkling of Langet's intentions has leaked out. Mrs, Emma_ Clayton, confidential agent of the Nonpartisan league, the Consumers’ United Stores Co, and the Scandinavian-American bank, and, whose possession, it is alleged, col- lateral given by the Townley organiza- tions for their huge loans from the bank was placed, was.in the city over Sunday in conference with league lead- LEMKE ON THE JOB William Lemke, the stormy petrel of the Nonpartisan forces, also arrived jn he city Sunday, and bright and easly this morning he was at the capitol foz ; 2 Jong conference with Associate Jus- tice H, A. Bronson, Stories have come from Fargo of a yery heated session held by some 3) Nonpartisan managers at the Courier- News office Saturday evening, The night was warm, windows were On} and blinds were raised, and a crowd which assembled on the sidewalk en joyed a clear prospect of clenched fists, gritted teeth and dramatic striding to and fro, while choice bits of strong language floated on the breeze before some memeber of the conference dis- covered that they had an audience and brought down window sash and shades with a bang. The Courier-News plant was busy all day, Sunday, it is said, presumably getting out an extra edi- tion of the North Dakota Leader with a view to building a backfire in the farming districts against the donster- nation which the bank smash has created in league ranks throughout the state. TWO MEETINGS TUESDAY There will be two important cor- ing. The state depositors’ guaranty fund commission, summoned by the banking board to meet to provide for assessing North Dakota’s 1700 state banks such sum as may be required te make up any shortage which resulis from the league banking operations at Fargo, will meet in the state examin. er’s office, while in the governor's oflice a session of, the banking board, ad- Journed from Saturday, will be held. At Saturday’s session of ‘the board Governof Frazier strenuously objected to daily meetings of the banking board, and out of consideration for his feel- ings a meeting originally scheduled for Monday was adjourned until Tuesday. FRAZIER VOTED “AYE” Minutes of the state banking board’s efeapitol Tn breathless suspense they’ |” “Jare awaiting’ Attorney General Lan- today obtained from the Cass county proceedings of last Thursday show district court an order “returnable that Governor Frazier, who is quoted Monday, October 18, to show cause by the Courier-News of Sunday. as bit- why a receiver for the Scandinavian- terly condemning the state banking American bank should not be appoint- board for its action. in closing the ed by the court. P. EB. Haldorson, the Scandinavian-Amerlcan bank, voted temporary receiver of the bank, is in with the majority members of this charge by virtue of his appointment body last Thursday in favor of the ap- by the state banking board. The pro- pointment of a temporary receiver. The ceedure of going before the district governor appeared to believe that a’ court is that prescribed by law for the temporary: receiver could step in andj naming of permanent receivers for in- take charge without ‘closing the bank solvent banks, said Attorney General doors and making a cut-off, as usually; Langer today. 3s done. The only point upon which YR RIS ea BS , ‘the gorvernor seriously differed with In an English churchyard there is Secretary of State Hall and Attorney a yaw tree estimated to be 25 centu- General Langer was on the question of ties old, i jqlosing the bank, aa Fe) aleranstemnaas Gublgass “Tt is essential for the protection of the taxpayers of the state that there be an immediate examination of the Bank of North Dakota. Under the law it is your duty to make an examination of their accounts. I have information that the Bank of North Dakota has become mixed up with the Scandinavian-American bank at Fargo, now in the hands of a receiver. As attorney general, I make a formal demand that you, as state auditor, lentrusted with the safeguarding of the taxpayers’ money, which you have so efficiently done in the past, proceed immediately to ascertain to what illegal purposes, if any, those now in control of the Bank of North Dakota have diverted the money entrusted to their care by the school districts, villages, cities, townships, counties and towns, and the people of the state of North DakotaWILLIAM LANGER, AT#ORNEY GENERAL.” State Auditor Kositzky, with a corps of accountants, examiners and inspectors, presented himself at the Bank of North Dakota at 1:30 this afternoon to carry out Langer’s instructions. The Bank of North Dakota, created by an act of the sixteenth assem- bly, is a repository for all public funds in the state, and its last report showed its resources, consisting principally of such deposits, to be in ex-! cess of $16,000,000. Neither Manager Waters or Director General Cathro was present at the time, and the examination began without opposition. : When Manager Waters returned to the bank this afternoon and found Kositzky in charge, he questioned the auditor’s right to take posses- sion. Kositzky displayed Attorney General Langer’s order and declared his intention of standing pat. The vaults will be sealed this evening and watchmen placed in charge, the state auditor announces. Manager Waters was apparently laboring under great excitement when he encountered the state auditor. He ordered him from the prem- ises, and for a time it appeared that a physical encounter was imminent. Everyone cooled down in time, however, and the examination, in charge of four trained banking men, was proceeding smoothly when Mr. Kositzky es left the bank at 3 this afternoon. All of the bank employes remained at| their work, and the only change that will be effected will be the sealing of | the vaults and the placing of two guards whom the state auditor will ap- point in charge of the bank tonight. “In view of conditions I feel justified in taking these steps,” Mr. Ko- sitzky explained this afternoon. REDS MAKEIT 4 TO 1; WHITE SOX OUT OF RUNNING Cincinnati Practically Cinches World Pennant by To- day’s Victory WILLIAMS IS TAKEN OUT Windy City Pitcher Retired. in Ninth; Schalk Benched in the Sixth CINCINNATI, 5; CHICAGO, 0. The score R. H. F. Cincinnati 0000040015 4.9 Chicago 0000000000 338 Batteries: Miller and Rariden; Wii- liams, Mayer and Schalk, Lynn. Comiskey Field, Chicago, Oct. 6.-- The Reds practically cinched thy world’s pennant this afternoén when they made it 4 to 1, with a 5 to 0 vie- tory over the Whité Sox on their home field.. Three White Sox errors joined with four Red hits in running up the visitors’ five runs. The Sox could not hit Hller and they.were clearly out- classed in every division of the game. e , ested, for higher SERA RAE RAT TOROS Sixty Killed in || Wreck of Mexican || Passenger Train Mexico City, Sunday, Oct. ’ 5.—Sixty persons were killed today in a wreck of a Laredo- Mexico City ‘passenger train which was derailed between Verneges and Saltillo. Belief is expressed that at least fifteen more were killed | in the accident. o x ewe ae / BYERLY IN CITY W. E. Byerley of Velva, chairman of the democratic state central committee and revenue collector for North Da- kota, is in the city today, conferring with the North Dakota railway com- mission relative to the application of the Velva electric light company, in which the democratic leader is inter- rates, MUSIC HOUS 'IENARIO Peter Holmboe of Publicity Film Co. returned last week from Farfgo, | Where he closed a contract’ with the Stone Piano Co. for an elaborate mo- tion’ picture scenario which will be producted for this company in coope- ration with the Fargo conservatory of music, The Bismarck motion. picture producers also have @ new order from the Equity Packing Co. of Fargo for twice the amount of work: originally turned out. for, this enterprise, ete ys WGUMBER MAKES ATTACK ON FOES: OF PEACE PACT !Declares Senators Opposed to Treaty Are Deliberately Misleading Public DENOUNCES AMENDMENT Declares Change Proposed by Johnson Is Fanning Preju- dice on False Report Washington, D. C., Oct. 6—Denying that Great Britain and her colonies! would have six votes in the league of| nations to one for the United States, Senator McCumber, republican, North Dakota, charged in the senate todey that senators advocating the amenc- ment by Senator Johnson, republican, California, proposes to limit the vot- ing power of the British colonies were fanning popular prejudice with an un- founded appeal. “Senators who in private conversa- tion would never dream of attempting to deceive one another,” said Senator _ (Continued on Page Tw ASTOUNDING DETAILS OF FAR-REACHING PLOT UNBARED IN OKLAHOMA Elaine, Ark., Oct. 6.—Discovery of what is believed to have been a widespread plot on the part of organized negroes for a gen- eral killing of whites in this locality and possibly in other parts of the south led officials today to tighten up on emergency measures and redouble their efforts to apprehend leaders of the alleged organization. The existence of the supposed conspiracy was brought to light by the committee of seven appointed by civil and military authori- ties following the race disorders last week through the questioning of negro prisoners. TODAY DATE SET SILENCE; THINKS NOTHING WRONG \ings of the plan. Today, October 6, the negroes declared, was the | date set for the uprising. Twenty-one white planters in this district, according to the Tells Depositors If Money Is Squandered Guaranty Fund Will Protect "Em IS IN THE DARK confessions, had been singled out |to be killed first.’ The killing of \the 21, it is asserted, was to be jfollowed immediately by a gen- eral massacre of whites after which the negroes were to take over the land and till it. LYNCH GEORGIA NEGROES Lincolnton, Ga., Oct. 6.—Jack HAGEN League Banker Suspects, Tho, “Interests” Have Axe Out for Him Governor Frazier broke nis long Gordon and Will Brown, negroes, iwere lynched by a mob here early today and their bodies burned. ‘The victims of the mob were ‘charged with having shot Dep- silence on the matter of the Scandi-'uty Sheriff Roy S. Freeman and navian-American bank scandal Sunday|Boyce Fortson near here late when a statement credited to him was Saturday. Freeman is not ex- published in the Fargo Courier-News,| pected to live. Townley’s principal North Dakota or-| Mose Martin, another negro, gan and which had shared with other Townley enterprises the favors of the Fargo bank whose doors were closed by the state banking board last Thursday morning upon a report from two depu- ty state bank exominers and Assistant Attorney General Sheets alleging. the bank had made loans not properly secured by bankab!e collateral, Mr. F r’s statement, given much prominen n the Courier-News Sun- day, follows: \ “It is my opinion that the attorney general and the secretary of state over- stepped the bounds of their authority and have violated all rules of common j eir action in closing the 734,190 in” eXeess | was killed by a posse late yester- iday during the hunt for Gordon and several other blacks were ;whipped for refusing to give in- ‘formation as to Gordon’s where- abouts. The lynching occurred about 4 o’clock this morning after Gor- don had been taken from the cus- tody of sheriff of Wilkes county iby a mob said to number about 1,000 persons. The other negro, Brown, was being held by the mob awaiting the arrival of Gor- don. The two were strung up on the m ; joutskirts of the town and after rset tte their bodies were riddled with in take care of/ bullets they were cut down and placed on a pile of burning pine !\ wood. BRITISH LABOR “SATISFIED WITH STRIKE OUTCOME Leaders Express Pleasure With Settlement — Call for a Consolidation ~ ESTS” — sible for] London, Oct. 6—Leaders of the na- J.) tional union of railway men who di- rected the strike which was settled ..|yesterday declare their satisfaction with the arrangements in a message -lto the Herald organ of union labor. J. H. Thomas, secretary of the union and leader of the strike, appealed to ~| railroad men to consolidate their or- aniaztions and make their forces ronger than ever so as to “gain for 1 members a higher standard of life.” an-American bank of Far- g0. “T am confident, from the facts which have been di: Scandinavian-Ame solvent, and that it all its obligations, and judging from] w and destr tions and all friendly to farme: T wish to a well as all other 1 ta, that there is no ¢ them against loss, and I will do thing in my power to see that is done, and to see that the cred ‘e is not needlesly or unneces- to these high-handed me best to put a stop t N ABUSES “INTER American in the state exa port, follow: “I am in the dark as to what this; ° charge is based on,” said President| Former Service Men ‘ Hagen last night. “The arrest was} . . as much a surprise to me as wag the Enjoy Dancing Party closing of the bank. . “I know of no actions of mine i! connection with the affairs of the i bank or any with which I am connected on which criminal charges could possibly be based. I have been in the banking business for 27 years in North Dakota and I have weather- ed several banks through several pan- ics but during all that time all my Given for Mathews Mr. and Mrs. J. R. Falconer Proved Charming Host and Hostess Saturday Night Mr. and Mrs. J. R. Falconer of. 518 Aare 7 | Tenth street entertained Saturday banks have ‘paid interest and divi- night with a dancing party in honor of aends. Mrs. Falconer’s brother, Private BANK HAD PROSPEROUS Joseph Mathews, former member of BUSINESS Comapny A, who hag just returned “The Scandinavian-American bank has made an unprecedented record for growth, especially the past year untii it is now the second largest bank in the city. Since the bank affiliated with the farmers’ movement in. this state it has been the subject of all manner ‘vf attacks from interests inimical to the farmers, but in spite of this the business has increased in every department at a rate not equaled by any of the other financial institu- tions of the city. ; “The interests fighting the farmers movement all over this country have for some time been apprehensive over the financial strength developed in (Continued on Page Eight) from France where he served with thi First division. > More than forty couples were pres- {ent and those who weer especially honored, besides Private Mathews ; were Lieut. Peter Baker, Lieut. Elli- |son, Lieut. Scharnowski, Lieut. Nor- man Flow; Corporal Anderson, Pri- vate Berger. Miss Olvine of Sims and Anderson were the out of town guests. The house was decorated with red, white and blue and at midnight a luncheon was served. A decrease in the mineral output of the United States is pore by: the lo}