The Bismarck Tribune Newspaper, October 8, 1919, Page 1

1 2 , e=. . > ‘ View . ser E BISMARCK TRI LAST EDITION Pine te ae cece epeetmomnaneent| THIRTY-NINTH YEAR, NO. 231. ‘ BISMARCK, NORTH DAKOTA WEDNESDAY, OCT. 8, 1919. BUNE-E= THE FORKS HAS - MIGHT MURDER; GIRL IS VICTIM Edna Werner, 17 Years Old, Shot on Bridge Between Red River Towns NO MOTIVE FOR CRIME Only Possible Incentive Chance That Young Woman May Have Had Money Grand Forks, N. D,, Oct. 8—Edna Werner, aged 17, of East Grand Forks, Minn., just across the Red river from this city, was killed on the Washington avenue bridge shortly after 9 o’clock Tuesday night. The body was thrown over the rail of the bridge to the banks of the river 30 feet below and was discovered at 8 o'clock this morning. The girl was shot through the head. Thorough examination will he made as soon as the coroner arrives. « No clue ag to the identity of the slayer has been discovered. LEFT HOME LAST NIGHT Grand Forks, N. D., O¢t. 8—Miss Werner left home alone at 9 o'clock Tuesday night saying she would be back in a short time. When she failed to return her family became worried and upon hearing of the murder this morning went to the scene of the « tragedy and identified the body. Michael Eichhammer and Herbert Jarvis were passing near the bridge shortly after 9 o’clock Tuesday night. They report having heard a woman's scream followed by two revolver shots They made no further investigation at the time, however. Eichhammer sail that shortly after the shot two autc- mobiles passed along Washington street from the direction of the bridge,, traveling at high speed. When found the body Jay in the ‘ pushes underneath the bridge about 100 feet from the north end. A .dry pool of blood on the edge of the bridge itself indicated that the crime hal been committed there and the body thrown over. MAY HAVE HAD MONBY=» The only clue for the motive of the murder is the suggestion that the girl may have been carrying a large sum of money home from work that day. Her aunt, Mrs, Louis Werner, with ‘Whom She lived, said today that Edna was a silent girl and never gave out information regarding her men friends, Her mother is dead and the whe abouts of her father are unknown, SOO SAFETY: FIRST: COMMITTEE MEETS HERE LAST NIGHT ‘’ Employes of Railroad Making Plans for Drive Which Starts October 18 ‘ The “safety first” committee of this division of the Soo railway met last night and prepared plans for the drive to install safety habits in employes of \ » the railroad which starts October 13 and continues for one week. The meet- ing was held in the local offices of the Soo with Capt. A, A. Jones presiding ia the absence of S. W. Derrick, division superintendent, The Soo road is common with all’ the other leading railroads of the country participates in periodical “safety-first” campaigns in order to awaken its work- men to the dangers that surrqund their dally tasks and what methods should be followed to prevent accfdents, minor injuries or fatalities, The campaign which lasts the last two weeks of the month is probably the most extensive ever undertaken by the railroads. ~ Among those who attended the meet- ing were Conductor B. J. Abbott of Hankinson, Brakeman F. §, Hastings of Bismarck, Car Foreman B. E. Look- er of Bismarck, Agent 0. W. Poe of Washburn, Matt Still of Wishek, of the bridge and building department; Mas- « ter Mechanic L. W. Engelhart of Wishek, Roadmaster John Ericson of Drake and Engineer D. J. MeGettigan of Bismarck, : M’GOVERN WANTS $50,000 IN LUMP; KOSITZKY KICKS "Attempt of Mill Manager to Draw Big Sum From Treasury Is Balked J. A. McGovern, state mill and ele- vator association managef, has filed with the state auditor a voucher req- uisition for $50,000 of the:state mill and elevator fund, which Mr. McGov- ern asks paid over in a lump sw His voucher, dated October 3, read: “Under Section 9 of. 8S, B. 2v, enacted by the 16th legislative assem- bly, I am presenting this voucher for $50,000.” State Auditor Kositzky, who has been criticizing some of Mr. McGovern’s expense items, has in- formed the mill and elevator manager that state funds can constitutionally be paid out only upon itemized vouch- ers, and he has refused to draw the warrant for $50,000 until Mr. Mc- Govern explains what he expects to do with it. ' x “The only purpose for which such a large sum could be used would be. the purchase of the experimental mill » at Drake,” said Mr. Kositzky- “The state, as I understand it, is paying but $20,000 for this mill, and the citi- zens of Drake have already subscribed for $86,000 worth of bonds, which should, furnish funds sufficient to finance this deal. I do not intend to pay out fifty thousand dollars or fifty Conte “OF the “state's moHey:cuntil’ I know what it’s being spent for.”, |FIUME INCIDENT BANK TOLD TO COVER Hastings To Get Busy Halliday Notified “Shoot” Objectionable + ‘Paper To Other Banks, Is Order + ee 7 | LANGER’S STATEMENT %. ———+ — o In making public this letter, Attorney General William Langer made the following statement: The courts, the governor, the state bank examiner, and some other state officials can line up with crooks and use their official positions to protect them if they wish. As for myself, I shall keep on trying unfalteringly and faithfully to serve the people—farm- ers, bakers, bankers and boot-blacks ; white or black alike. I was not born to be a subservient tool of a political boss. The banking board is the people’s protection against thieves, embezzlers, crooks and scoundrels, and North Dakota never needed an honest administration of banking laws more than now. The report of the two deputy bank examiners states that even aside from the so-called “farmer” enterprises, the bank is insol- vent. : The state’s banking laws have been tontinuously, openly and insolently flouted, with contemptuous defiance. The time has come for a showdown! If Townley and the men whom he has' caused to be appointed to office, are above the law, let us find it out. Ordinarily I do not make any evidence I have in criminal cases public—I will make no more public in this case, if I can avoid it. When the crooks are before a farmer jury and the facts are pre- sented, the jury will do the rest. I will not discuss’ the action of the supreme court in removing Mr. Halldorson as receiver of the Scandinavian-American bank— to do so would be unethical, but the people of North Dakota should know these facts: That Lofthus was sent to Florida at the request of Waters and Brinton, and that Governor Frazier voted to send him; that Semingsen, who was next in charge, was, in my judg- ment, unfit to act as shown by the Halliday letter; that the banking board then picked Mr. Halldorson, the oldest man in service, a man who served under Governor Burke, Governor Hanna, and Governor Frazier, a man whom I believe to be honest and square, the man whose word Mr. Hall and I took when we made some of this same outfit return $15,026.91 in cash, and fix up some $40,000.00 in rotten notes to the farmers in the notorious, smelling to heaven Valley City bank deal. The people will remember that in that deal too, Governor Frazier voted “no.” WILLIAM LANGER, \ Attorney General. THREE PLANES IN NATIONAL FLIGHT MAKE FIRST LEG MAY KICK ITALY OUT OF LEAGUE Ultimatum Sent by Great Britain —United States Denies Similar Step Arrival of Trio of Machines at Binghampton Reported— ’Friscan Hops Off Mineola, N. Y¥., Oct. 8—The arrival of the first three planes at Bingham) ton, N. Y., was reported to officials Rome, Tuesday, Oct. 7—Much exite- here at 11 310. The ane were pil- ment in political circles and extended oted by Major Smith, Lt. Col. Hartney, comment in the press has been caused |@nd Lieut, Maynard. by reported receipt of warnings from ts xs e Great Britain and Uuited States to| MACHT FIRST AT MINEOLA Italy in regard the situation at Fiume.| Lieut. J. 1B. Machle, in a De Havi- It is declared the warning from, Eng-|1and machine, equipped with a Liberty land stated in effect, unless the “pres-| motor, was the first to get away in the ent illegal situation at Fiume” should | coast-to-coast air race from Mineola be discontinued Italy would “run the}to San Francisco and. return at 9:15, risk of being put out of allianc nd fa. m, today. Sgt. Jesse De McClure peace conference,” and that it received |accompanied him, a few days later a similar warning ‘h BY TODAY'S WIN SS "ate THE HALLIDAY LETTER | ~. a OFFICE OF STATE EXAMINER - State of North Dakota, Bismarck J. R. WATERS, State Examiner. E, A. THORBERG, Chief Deputy Examiner. June 10, 1918. Mr. J. J. Hastings, Vice President, Scandinavian-American Bank, Fargo, N. Dak. Dear Mr. Hastings:— Mr. Waters submitted to an operation at the hospital here today. While the operation is not serious yet he is not very well and will be laid up for a while. This is the reason that you and Mr. Semingsen were not able'to get him over the phone. He has asked me to write you regarding the extra help you have at your bank just now making an examination. He has been sick since last. Thursday or he would have headed the thing off. Being that Mr. Schoregge, Mr. Semingsen and Mr. Halldorson are there now to make an examination on behalf of the commission, he does not care to create any animosity and antagonism over this matter at this time and get as good a report from them as possible so they won’t have anything to hand the opposition parties over league finances and business method or criticise the amount of paper carried there. It appears quite evident that this is a political play for thunder. You see the opposition parties are a little short on real sensational thunder and they are trying to scare up something for the last act, and, I don’t suppose the other banks in Fargo are just. what you would term “Crazy about you.” Mr. Waters wishes me to advise you that if the examiners object to any of the paper carried there, you are to tell them that it will be removed at once. The plan for taking care of objection- able matters is to shoot it out to the other league banks—Grand Forks, Lisbon, Hillsboro, Buxton and Hatton—these banks are practically all new banks and have been passed by the commission which will leave them in a position to do this. They would not have anything that the commission could object to just now. Anything that you sent them could be taken back later on, if necessary. Of course, we don’t want‘you to move any more than is absolutely necessary to get by with a clean report. Mr. Waters is satisfied, with this information, that you and Mr. Semingsen will be able to handle this matter satisfactorily to all. If anything. furtherdevelopes, kindly write me. Yours very truly, (Signed) ROY M. HALLIDAY. SOX MAKE WORLD’; SERIES 4 AND 3 | 2 %) Frazier Censured | 4 The banking board Tuesday paid its} respects to Goy, Frazier in the follow- i resolutions, adopted by Secretary | ate Hall and the Attorney Get- Whereas, There appeared in the Ov- American League Champions tober 5th edition of the Fargo Couri: . News, a statement purporting to eman-| Show Recuperative Powers ate from Governor Lynn and in the! at Cinncy following tenor: een = “It is my opinion that the Attorney | OLD ROMAN COMES BACK General and the Secretary of State! foverstepped the bounds of their uu- thority and have violated all rules of| common justice by their action in Chicago .. 101 020 000 10 1 a en Scandinavian-American Cincinnati -000 001 000—1 7 4 See CHICAGO, 4; CINCINNATI, 1 The score: i pee ‘|| The Court Order SUPREME COURT DISSOLV ES BANKING BOARD RECEIVERSHIP; FARGO BANK RESTORED TO EXAMINER LOFTHUS Attorney General Langer, Secretary of State Hall, Assistants.and Deputies Restrained From Further Interference With League Financial Institution—High Tribunal .Acts on Application From William Lemke in Behalf of Hagen and Associates. MODIFICATION OF ORDER ASKED — _ _ Attorney General Langer this afternoon made formal applica- tion to the supreme court for a modification of its order of Tuesday evening which will enable his department to retain possession of letters and documents forming a part of the records of the Scan- dinavian-American bank which may be found necessary in the criminal prosecution of President H. J. Hagen and Cashier P. R. Sherman of the Fargo bank, charged with making false exhibits to the examiners, and in any other criminal actions which. the attorney general’s office may deem advisable. Deputy State Bank Examiner P. A. Haldorson was ousted from his post as temporary receiver of the Scandinavian-American bank of Fargo; the bank and all of its records were placed in the control of State Examiner O. E. Lofthus, and Attorney General Langer, Secretary of State Hall, Assistant Attorney General Al- bert E. Sheets and Mr. Haldorson were severally restrained in their private and official capacities from further interference with the affairs of the bank or “with the prerogatives of the office of State Examiner O. E. Lofthus” in an alternative writ issued by the supreme court at 5 o’clock Tuesday evening on application of Wil- liam Lemke, representing State Examiner Lofthus. This throws the “ins” out and places the “outs” in. The Townley faction of the state administration immediately regains possession of the Scandinavian-American bank, closed by the state banking board last Thursday on a report signed by two state examiners alleging that the institution had made $734,000 in excess loans, principally to the league and affiliated enterprises. Receiver Thrown Out The temporary receiver in- stalled by the banking board is deposed. The investigation which the banking board had under- taken is halted. All records of the institution and all of its as- sets are turned over to the pos- ‘session of State Examiner Loft- hus, and Attorney General Lan- :;ger and Secretary of State Hall, as individuals, as attorney gen- j{eral and secretary of state, re- spectively, and as members of the state banking board, are re- strained and prohibited tempo- rarily from taking any further steps whatsoever to examine in- to the affairs of the Scandina- ;vian-American bank. eae QO. E,. Lofthus, hurried hom IN THE THE UPREME COURT OF TATE OF NORTH) DAKOTA THE STATE OF NORTH DA- KOTA, on the relation of O. Lofthus, as State Bank Exami. ner, THE Scandinavian-Ameri- can Bank of Fargo, a tion, and H. J. 5 gen, Lars Christianson, H. 1. Bolley, Spurgeon Odell, Emil J. Headland and J. P. Holmes, Di- rectors and Stockholders of the Scandinavian-American Bank of. Fargo, and P. R. Sherman, Cashier and Stockholder, | Petitioners and Relators, = vs. WILLIAM LANGER, Atorney General, and as an_ individual. and as a member of the State Banking Board,. and ‘Thomas 2 * Hall, Secretary off State, and ‘as !|from Florida, where he was in- a member of the State Banking ||vestigating the United States Board, and as an individual, and Albert. 1B. Sheets,’ Jee as A Sisal Trust, of Which J. R. Wa- | tant Attorney General, and as ||ters, manager of the Bank of an individual, and the State ||North Dakota is president, is in Banking Board, and P. E. Hal- ||Fargo, William Lemke, with. a dorson, as pretending recei of f th rt? i said bank, and as an individual, | COPY © G Supreme COMn a Defendants and Respondents, ternative writ, left for Fargo at ‘}7 o’clock Tuesday evening, and it was expected he would get ser- vice on Temporary Receiver Hal- dorson and Assistant Attorney ; General Sheets early this (Wed- nesday) morning, and that the ALTERNATIVE WRIT OF I NCTION. ing and filing the at- tached petition and affidavits which are hereto, attached and made part hereof, and upon the facts therein stated. and hereby Upon reac referred to and made part here- bank would be immediately of. turned over to Examiner Loft- (Continued on page four) hus. (Continued on Page Four.) STATE EXAMINER LOFTHUS TAKES CHARGE OF SCANDINAVIAN BANK; from the United States. The Tribuna, one of the leading com- mentators, declares that Italy is not alone responsible for the Fiume sitna- tion and incidentally attacks what it calls that “prepondence” of President Wilson in the “peace conference and the alleged “inability or unwillingness of the allies to limit it.” President| Wilson, says the newspaper, “although | a high personage is not exempt fron human weaknesses, as is proved vy; his present grave nervous illness.” NO ULTIMATUM SENT Washington, D..C., Oct. 8—While not denying that a communication rc- garding the Fiume situation had been sent to Italy, officials here said today | nothing in the nature of an ultimatum such as was suggested by the com- ment of Italian press had gone for- ward. Late Tuesday evening State Auditor. Kositzky filed with the attorney gen- eral a report of the former's inter- rupted examination of the Bank of North Dakota, ordered by Mr. Langer on Monday. In part Mr. Kositzky says: “Inas- much as the manager of the bank, Mr. Waters, objected very strenuously to my checking the bank after he dis- covered that I had taken possession of the records during his absence, and us he threatened to eject me and: my force, and because Mr. Cathro refused my men admission to the bank thi: morning to contime the check, and for the further reasons that we have dls: covered that there was deposited pub: lie funds amounting to $282,293.68 in the Scandinavian-American bank at Fargo, and a shortage of $4,950 of bills receivable, and also as that portion of Mr. Cathro’s letter wherein he states that the account, bills receivable, was checked, is untrue, my: men having barely commenced checking when work was discontintied for the day, I be- lieve that the bank officials are trying to covér up something from the public. “Therefore, in my opinion, it is very fimportantthdt aii immediate exeminie AUDITOR KOSITZKY BELIEVES BANK OF NORTH DAKOTA EXAMINATION IS / NOT COMPLETED, SAYS HIS REPORT FIRST WEST CAR OFF San Francisco, Calif., Oct. 8—Lieur. J. P. Richter, piloting a De Haviland airplane with Lieut. J. B. Patrick, as observer, leaving the ground at 6:51 a, m, today, was the first of the west- ern aviators to “hop off” in the 2,700 mile race to Mineola, N. Y. Z Cadet D. Cardiff was second to take the air. He left at 6:52. His plane carried no observer. The first six machines took the air in less than five minutes and they were closely followed by three more. GUARANTY BOARD MEETS The ‘state depositors’ guaranty fund commission convened at 9 o’clock this morning in a regular session adjourned from Tuesday. No session was held yesterday, on the day appointed, al- though all members of the commission were in the city, should be made by Some disintereste1 firm of accountants or persons of ex- perience, who are not connected with either political faction, and the resuit of such examination should be made public, as tle institution is not a private institution, but a public insti- tution and of public concern.—Carl K. Kositzky, State Auditor of North Da- kota.” On the matter of redeposits of pub- lie funds, Mr. Kositzky says: . “The amount of’ public funds redeposited in about 889 banks. in the statd was $9,- 398,715 at. the close of business October 3, According to the records there is redeposited in the Scandinavian-Am-/ erican bank at Fargo $282,293. There are three more banks, besides the above-mentioned bank, in which there are large amounts of redeposits, one for $243,699, one for $196,326, one for $179,259. The amounts redeposited in the other banks vary from 93 cents up- wards.” Farm loans to date aggregate but; $12,497, reports the auditor. “There appears,” he says, “to be an enormous amount of money in _transit to cor- Redlands Field, Cincinnati, O., Oct. 8.—White. Sox stock went up 100 per- cent this afternoon when the Ameri- can league champs deteated the Keds on the latters’ home field by a score of 4 to 1 and made the world’s series to date 4 to 3. The Sox still must win tomorrow to prevent the pennant from going to the Reds, but the two suc cessive victories of Gleason’s men have convinced Chicago fans that the! American league leaders have re- gained the recuperative streak which stood them so well in stead last sum- mer. Cicotte.came back today and re- deemed himself for the dreadful drub- bing, which he received in the first game he pitched on the Reds’ field.! While Moran’s men touched up the old Roman for seven hits, Cicotte never lost control of himself, and he kept the Reds’ hits scattered. But one error was chalked up against the Sox, while the Reds. were guilty of three bad guesses which contributes to the American league champs run-getting. The betting has changed from heavy odds on the Reds to even money. Cincinnati fervor has taken an awful slump—it wouldn’t even gauge up to the old wartime 2.75 percent standard this evening. It is almost conceded that a win for Gleason tomorrow means another pennant for the White Sox, and nobody is willing to bet-more than even money that Chicago will not win. Reds Use Three Pitchers : The Reds used up: three picthers in losing their game. Fisher replaced Sallee in the fifth, and Luque replaced Fisher in the sixth. The Cuban fin- ished the game for Cincinnati. NORTHERN STATES 'IS NOT SATISFIED WITH RATE RULING! The Northern States Power Co., operating. electric light and power plants, steam heating business and gas plants at Fargo and Grand Forks, is dissatisfied with the railway com- gineer, has returned from the super- missioner’s recent ruling denying its application for higher service rates at Fargo, Through its local attorney, Andrew Miller, the company has ap- respondent banks, especially outside of the state, which does not bear interest. ‘Tid! amount: nent. out‘ion October 6, | thé: evidence! the: commission improp- of. Divide county, earth roads were tion of the Bank of North Dakota|1919,.alone amounted to $939,802.” vealed to the rail board for a rehear- ing, alleging that in considering erly eliminated items of: value, ‘respective of their economic ideas or “Judging from the actions of the} Attorney General and the Secretary of State it would seem they are making! a determined effort to wreck and des-/ troy all farmer organizations” and Whereas, the said Governor Lynn J.} Frazier has not repudiated or dis- claimed these statements though being} fully aware of the falsity and injustice of them, and Whereas, The said Lynn J. Frazier, by his pa: e, inert adid ir-responsive demeanor has become the apologist and defender of as unscrupulous and} as unconscionable an organization as} ever abused, power, abused confidence, defied law and looted the people of 2 great state, Therefore, Be It Resolved, That the majority members of this Board rese the action of Governor Frazier and that he be censured by this Board. He has used the prestige of his office to aid and assist his associates in their wild-cat promotions; to destroy the reputation of any refusing to cour- tenance these schemes. Is he now to use this prestige to shield and protect criminals from justice? The ‘najority members of the Bauk- ing Board are advocates of farmer’s organizations and, also, of law enforce- ment and they deny that the prosecn- tion of criminals is an attack on the farmers or their organizations. They believe such a charge to be manifestly unfair, unjust and an. insult to the farmers of this state and appeal to them and to all people of the state, ir- political beliefs and affiliations, to keep the ‘source of justice undefiled, the en- forcement of our laws untrammele1 and to regtore the government of this great state to the people thereof. BE IT FURTHER RESOLVED: That this resolution be spread upon the minutes and that copies be given to the pres: MORE CONTRACTS FOR BETTER ROADS GIVEN J. E. Kaulfuss, assistant state en- intending of the letting of contracts for state and federal highway proj- ‘ects at Lisbon and Crosby. At Lis- bon 14.4 miles of earth road for Ran- som county were contracted for, and Fargo, state bu kota, this mor of the bank of Fargo reli P. A, Halldorson under an order of the North Dakota supreme court issued late yesterda, Examiner Lufthu who had been absent from the state since the, closing of the Fargo bank, ar- rived here last evening prepared to agsume control of the institution pending the disposition of the in- junction proceedings brought on his own relations and on the rela- tions of the Scandinavian-Ameri- In a proclamation addressed to the bankers of the state, Governor Frazier) last night called upon them to resis “raids” upon their books and records by examiners without credentials from State Examiner 0, E. Lofthus. The proclamation follows: “To the public and banks of the state of North Dakota: The laws of the state of North Dakota explicitly provide that the only official of the state having the authority to make examinations of banking institutions in the state is the state examiner or deputies by him duly authorized and directed. This is exclusively a prero- gative of the office of the state exami- ner as Set forth in chapter 53. session laws 1915, It has been called to my attention that certain individuals pre- tending and presuming to act as the representatives of the state banking board have made raids and intend to make further raids on banking instt- tutions throughout the state for tne purpose of discrediting the state and embarrassing the state for political propaganda purposes.. This is there- fore, to, advise you that any, such as- sumed authority is a nullity and with- out justification in law and as bank- ing officials. you are charged by law with confidential relations with your at Crosby contracts *for 10.26 miles “Tet. elients Which, would.be.. violated by. permitting any, inspection of your HALLDORSON AND SHEETS ARE OUT Haldorson and Assistant Attor- ney General Albert E, Sheets, Jr., who had been in charge of the bank since last Thursday, sur- rendered control shortly before 9 o’clock this morning, They are barred under the supreme court order from exercising any power or prerogative in connection with sed bank’s affairs by the order which is returnable October 15 when they must show cause why they should nof be per- manently enjoined with interfering with the bank’s affairs and the powers of the state bank exami- ner. FRAZIER CALLS UPON STATE BANKS TO RESIST EXAMINATION OF THEIR BOOKS books, records, collateral, ete., by per- sons other than the state examiner or his deputies by him duly authorized in writing and with proper credentials. Nq other person or persons, including members of the banking board, the st- torney general, the state auditor, or any other officer of the state, or coun- ty, have any authority to make examli- nations of banks without an -order from 2 court of competent jurisdiction in proceedings or matters pending in said court. Should any attempt be made to forcibly gain admission to your bank, for purposes aforesaid you are hereby authorized and directed to procure such peace officers as may be necessary to enforce your, rights’) as herein set forth, and if any such peace officer refuses to do his duty, or if any peace officer should interfere or assist any official, person or persons other than the state examiner or his duly authorized deputies in carrying}, out their unlawful purposes aforsaid, ,re- port the same to me immediately and proper action will be taken forthwith. I hereby wish to advise the public that the financial institutions of this state were never in a better condition and that there is no reason for bécom- ing excited about the pernicious and unwarranted actions on the part ‘of certain state officials. su (Signed), Goyernor, Rata Soe Bates metas :