The Bismarck Tribune Newspaper, October 16, 1919, Page 1

THE WEATHER) THE BISMARCK TRIBUNE THIRTY-NINTH YEAR, NO. 238. BISMARCK, NORTH ‘DAKOTA THURSDA Y, OCT. 16, 1919. ELCOME, EXAMINER MADE BEHIND WHICH LEAGUE ATTEMPTS TO STALK INTO SUPREME COURT Assistant Attorney General Sheets Questions Jurisdiction and Re- fers to O. E. Lofthus as Blind for Scandinavian-American Bank and Allies—Lemke Would Have Question of Solvency Settled at Once on Basis of Affidavits. “This O. E. Lofthus is made the smoke barrage behind which the relators attempt to stalk into this court and litigate their private ventures,” declar Albert E. Sheets, Jr., in arguing yesterday afternoon that the supreme court had no jurisdiction in the matter of the Scandi- navian-American bank of Fargo “From the’ nature of this proceedings, it is apparent,” said Sheets, “that the relators desired “To obtain original jurisdiction of this high court. “To obtain negative action passed by the state banking board invalidating post-dated checks as collateral. “To obtain possession of the Scandinavian-American bank. “To obtain all of the foregoing requests summarily at the earliest possible moment. ’ “It is perfectly clear that to obtain these four requirements, no possible authorized proceed- ure in this court or in any court could be found or formulated. It is possible that any one or two of these desires might have been accomplished by choosing a, proper remedy. None of these weird, heterogeneous necessities, taken individually, could require the original jurisdiction of this court. The plan to hide the weak- ness of each by a hodge-podge of them all, and thus obtain orig- |- inal consideration of this court, which none of them could de- mand if taken individually, is just as plain as though it were written on the face of the com- plaint.” Lemke Wants Quick Action Rejecting the proposal of the bank- ing board that oral evidence and cross examination rather than affidavits and signed statements be resorted to as proof of the solvency or insolvency of the Scandinavian-American — Bank, William Lemke, counsel for. the Na- tional Nonpartisan League and for the Scandinavian-American ‘Bank and for President: Hagen and Cashier Sher- man of thaq institution and for State I'xaminer O. E. Lufthus, who is act- ing as temporary receiver by appoint- ment from the supreme court, insisted Wednesday afternoon that the supreme court base its decision upon an affidavit submitted by Myron W. ‘Thatcher of Minneapolis, @ public ac- countant, who swears that he made an examination of the bank at the direction of O. B, Lofthus and that he found the institution wholly sol- vent, : The submission of evidence through .offidavits was objected to by Judge Lauder of Wahpeton on behalf of the state banking board. He declared that counsel for the respondents had never even seen some of the reports and af- fidayits from which Attorney Lemke quoted. He asked that opportunity be given for oral testimony and for cross-examination of the witnesses. “This man,” refering to State Ex- aminer Engemoen, one of the two men who examined the ‘ Scandina- vian-American bank and upon “whose recommandations the banking board ordered the institution closed, “signs an affidavit ‘read here by Mr. Lemke to the effect that he signed this report to the state banking board without knowing’ what that report was about. We would like to put this mah on the stand and ask him why he did that. We would like to examine this ac- count here, and learn from him how he arrived at the conclusions upon which he bases his affidavit that .the bank is solvent.” Associate Justice Birdzell . ques- tioned Lemke as to his attitude to- ward taking of eviderice as to the sol- vency or inSolvency of the bank, Lem- ke objected that every day’s delay cost the bank business and prestige. He also opposed such a course even supposing that in ,the interim the Lank were allowed to reopen and re- sume business, declaring that propo- ganda which would accompany such a proceeding would cause daily run on the bank. The court took the mat- ter under consideration without an- nouncing any decision on this point. COUNSEL IS CROSS PXAMINED Assistant State's Aittorney Sheets, council for, the banking board, was closely cross-examined by . Justices Bronson and Robinson during the course of his argument: Bronson asked whether Sheets contended that the state banking board has authority to close a bank which is not insolvent. Sheets replied that the banking board was’a quasi-judicial body empowered to act as the best judgment dictated. He did not deny the supreme court’s right to review any action of the barking board nor that any institu- tion questioned had a right to a ‘hear- ing, but he expressed the belief that such proceedure should begin with a regular, action in the district court and come up through that channel. Bronson asked upon what evidence the banking board based its conclusion that the bank was “hopelessly in- solvent,” and Sheets quoted items from the recent report of the deputy state examiner. He also declared that last April: State Examiner J. R. Wa- ters ‘had filed a report directing that bad paper be removed from the Scan- dinavian-American bank, and that he had, referred to the items quoted in almost “identically the same terms as (Continued, on Page Two.) . SMOKE BARRAGE ed Assistant Attorney: General versus the state banking board. to obtain four results: by this court on the resolution FRAZIER JOINS IN CENSURE OF BANK OF DAKOTA Governor Agrees With School Lands Board That Institu- tion Is Profiteering ASKS 4 PERCENT PREMIUM Borrows State Money at Two Percent and Loans It to Farm- ) ers at Six Percent Governor Frazier under protest this morning voted for. a resolution adopt- ed by the state board of university and school lands censuring the Bank’ of North’ Dakota and declaring that while paying but two percent interest on state school funds, “said. bank is loaning money to the farmers of this state at a rate of six percent interest and using the profits to pay exorbitant salaries and needless expenses”: and that therefore the board of university and school lands be directed to apply $85,000 of the $88,000 of the state bond sinking fund, now on deposit with the Bank of North Dakota, and drawing but two percent interest, and presumably being loaned out by that! bank to farmers at six percent, to the redemption and retirement of that amount of state bonds held by said board, “thereby reducing the rate of interest paid by the farmer and in- creasing the returns. ‘to the school funds of the state.” Governor Frazier, in voting aye with Attorney. General Langer, Secre- tary of State Hall and State Auditor Kositzky, explained that he did so be- cause he favored the retirement of the bonds, but he confessed that he ob- jected to the wording of the resolu- tion, which was introduced by Kosit- zky and seconded by Hall. The resolution in full follows: Whereas, there is deposited with the Bank of North Dakota $88,000 of the state bond sinking fund; and draw- ing but two percent interest, and Whereas, said bank is loaning money to the farmers of this state at a rate of six percent and using the profits to pay exorbitant ‘salaries and needless’ expenses, and Whereas, the board of university and school lands holds $255,000 of four percent state bonds coming due in the near future, and Whereas, said board has on file applications for farm loans in excess of $85,000, and Whereas, the statutory rate of in- terest to be charged on such loans is but five percent; Therefore, Be it resolved, that the state treas- urer and state auditor be and are here- by directed to apply $85,000 now in the state bond sinking fund to the re- demption and cancellation of that amount of state bonds held by said board, thereby reducing the .rate of interest paid by tha farmer and in- creasing the returns to the school funds of the state, On roll call, Frazier, Langer, Hall and Kositzky voted aye. | For twenty-four hours ending at noon October 16, Lowest temperature .. Temperature at 7 a. m. Temperature at noon .« Highest yesterday . Lowest yesterday . Lowest last night . Precipitation Highest wind vel FORECAST For North Dakota; Fair and warmer tonight and Frida: UA Sacer reper i I Today’s Weather ‘Temperatures Fargo ...... Williston St. Paul Winnipeg . Helena Chicago... ! opponent slightly. Kansas City . ORRIS W. ROBERT) iS, Meteorologist, CAPITAL AND LABOR—HEART TO HEART WASHINGTON—Industrial gether important figures in both capital and labor. The photog- rapher snapped Frank Morrison, secretary of the American Fed- eration of Labor (left) in earnest conversation with John D. Rockefeller, Jr., on the steps of the Pan-American building. The photographer discovered that John D., Jr., wraps his) shoe laces about his shoe tops before he ties them, which struck him as a bit unconventional, at least, for a millionaire. MANY HOMELESS, FOUR INJURED IN MINNETONKA FIRE Minneapolis, Minn., Oct. 16.— Two women were injured by jump- ing from second story windows and two children. seriously injured when fire!'swept through the sum- mer cottage colony at the Metho- dist assembly grounds Lake Min- netonka, early today, destroying 2: cottages, A majority of the fami- lies were preparing to remain in the cottages through the winter because of inability to find quar- ters in the -city, and» these are homeless. \ BOXING TONIGHT FOR DELEGATES TO YANK’S MEET : Tom and Mike Gibbons on Card at Auditorium Staged by Knights of Columbus The boxing carn that the Knights of Columbus will stage _ to- night at the auditorium for the dele- yates to the legion convention and all; former service men promises to draw a packed house, ‘The stellar attraction will be the six-round exhibition between Tom and Mike Gibbons which is expected , # bring the house down. These ty clever boxers who acted as boxing “ind structors at camps in this country are considered two of the most scientific fighters in the pugilistic world today and their exhibitions always are well attended. Although brothers, they do not hesitate to exchange heayy blows and it is not unusual to see blow struck even after the bell is rung, so excited and anxious do they become te out over a winning wallop. This Was seen, at the exhibition they Staged at the Mandan fair last month. Tommy Comiskey of Chicago and Johnny Tillman of Minneapolis “are booked for the semi-finals and _ this promises to be a close fight. Keach man claims, he is the better and the six-rounds of milling will undoubtedly keep the fight fans on their feet all the time the men are in the ring. Comiskey especially is a favorite with fight fans in this section and in twen- ty fights he claims he has never lost a decision, When Rilly Whalen of St. Paul and Bobby Ward of Milwaukee meet there is promised one, of the fastest exhibi- tions that has ever bten staged in the state. Both men are clever, quick and aggressive and’ Ward, who is a former service man is expected to shade’ his Whalen is a fast Pentweleht, however, and any blows ‘hat land on him will have to travel with buring speed. 1. Besides the boxing, the local council o fthe Knights of Columbus have ar ranged for singing by the former ser vice men, Miss Bergliot Caspary will lead the singing and will also sing a few solos. Other music will be pro- 5 | vided. TEST op Cue ie SOP REs “BITUMINOUS STRIKE NOT. TO HIT REGION Minneapolis, Oct, 16—The calling of a bituminous coal strike probably will not affect the coal supply of the}. northwest, because the system of dis- tribution requires dealers to anticipate requirements for the winter by storin; fuel months in advance, says W. Groverman, secretary of the North. west Coal Dock Operators’ associa- tion. * . . Mines are still found floating loose- licals. at . out of the-United States. ly in the Atlantic ocean, YANK LEGION conference’ recesses bring to- FLYING PARSON NEAR HALF-WAY QN RETURN LAP Lieut. E. W. Maynard Easy Win- ner to Date in Transcon- tinental Derby SMITH OUT OF CONTEST Man Who Was Flying Second Quits When Ship Burns Near Buffalo Control icago, Ill, Oct, 16.—Almost half-| s the country on his return airplane re- p, Lieut. B, in the great arm s lead of the six other home-bound fliers who had doubled back after soaring from coast to coast The “sky pilot” w almost a day’s {flight in the van of his nearest pursuer from San Francisco and his closest op- ponent in point of actual flying time ‘for the transcontinental flight. SMITH OUT OF RACE Capt. L. H. Smith definitely was out of the contest, as his ship was burned last night, shortly after he landed at the Buffalo control station. Lie May: econ ‘ Sidney, Neb., his night stop. nounced he expected to spend tonig at Chicago. Through snowstorms terday the flying parson made 136 miles in 56 minutes, and then dashed an ad- |ditional 93. miles through the sky in forty minutes. The death total in the race today stood at seven, leaving 39 pilots in the contest, Of those remaining in the race six have completed half — their trip by landing at the Mineola field, end five westbound fliers have reached San Francisco, Twenty-four others still ore on the first leg of their flight. MAYNARD FORCED TO DESCEND Omaha, Neb., Oct. 16.—Lieut. M. W. Maynard, flying from St. Paul, Neb., broke a crank-shaft, and was forced to make a landing in a corn field near Wahoo, Neb., 40 miles west of this city, shortly before noon. The landing was effected without difficulty and without injury to the pilot or his ob- servor. f broke all rancisco to He an- FLIGHTS. OF EIGHT RESUMED Salt Lake City, Utah, Oct. 16—The western flight. of eight airplanes in the transcontinental derby was re- sumed from here and nearby control stations today. all having left their stations by 9:30.a. m. EMBARGO ON SUGAR EXPORTS PROPOSED Washington, Oct. 16.—An embargo against the export of sugar during the next six months, under penalty of ten years’ imprisoriment and ten thou- sand dollars fine, was proposed today by Rep. Dollinger, republican, Massa- chusetts. He also introduced a resolu- ‘tion calling upon the war and navy department to report whether ‘any sugar held by them could be placed on the market. WARTIME PASSPORT SOVIETS FACING SWIFT DISASTER SAY DISPATCHES Hemmed In on Four Sides, End of Bolshevisin in Russia Seems Near POLES CAPTURE KOVNO Denekine’s Men Drive in Great Wedge—European Se- curities Go Up London, Oct. 16.—Forced back by the onslaught of enemies on tour fronts,'the armies of the soviet gov- ernment of Russia appear to be facing a period pregnant with swift disaster. General Denekine’s Cossacks from the south, Polish forces from the west, northwestern Russian legions on the northwest, and northern Russian troops from the north have forged ahead until it seems the Bolshevik armies are between the upper and nether millstones. Petrograd is doomed to capture, in the opinion of observers, General Yudinitch being at Gatchina, only 25 miles south of the former Russ capi- tal. In the extreme north the north- ern Russian army has broken the re- sistance of the Bolsheviki, according to reports, and is pursuing the army toward Imega, a village about 150 miles west of Archangel. Farther to the south it has forced its war far down along the Dvina river. _, Poles Take Kovno Polish forces have captured Kovno, on the extreme northern end of their line. Denekine’s men have driven a great wedge into central Russia as far as Orel, and are thought to be on their way toward Tula, an important rail- way center that is considered the key to Moscow. The morning’s newspapers conspicu- ously feature reports of successes by General Yudinitch and Denekine and | # the presumed impending collapse of the soviet government in Russia. Editorial Comment Favorable Editorial comment, while recalling |! frequent past predictions of the fall of Bolshevism, which did not ‘material- ize, think. the present: position is more | | menacing, for the soviet. government than it has been at any previous time. Confidence in financial circles in the coming defeat of Bolshevism was shown in the strength of securities in the stock exchange yesterday, many advancing sharply, with an active de- mand. LETTS RETAIN RIGA So successful was the defense of Riga proper against the Germans and Russians, under Gen. Berromondt that the Lettish government considers it to return to the city, according to latest official advices. The enemy still holds the outskirts of the city, but the fighting has diminished to a desultory rifle . Private and official advices indicate that the reservoir of Bolshevism has drawn closer to the bottom, and that they are unable to provide — sufficient fo’ to maintain a defense on all fronts. General Yudinitch’s advance, which has already carried him to with- in 25 miles of Petrograd, undoubtedly Was precipitated a crisi LARGE NUMBERS OF STEEL WORKERS AT ‘|POSTS ONCE MORE Pittsburgh bers of wor September walkout of. came effective, are returning to work! daily in the Pittsburgh district, accord- ing to representatives of the companies, who claimed today that the mills in this region were fast resuming normal conditions. SEIN-FINN MEET IN DEFIANCE OF OFFICIAL ORDER! Dublin, Ireland, Oct. 16.—Defy- ing the orders of the government and the commander-in-chief in Treland, the twelfth annual con- vention of the Sein Finn was held at midnight in the mansion house. It lasted three hours. Notwith- standing all precautions taken to prevent the meeting,.the complete order of business was carried through. WILSON ENJOYS RESTFUL NIGHT rea Washington, Oct. 16.—President Wilson, relieved from the glandular swelling from which he suffered for two days, had a good night’s rest last night, said the bullétin issued today by his physicians. BANDITS LOOT BANK, SHOOT POLICEMAN, AND MAKE OFF WITH $7000 Roselle, N. J., Oct. 16—A gang. of seven men traveling in a large tourin car robbed the First National bank o: Pa., Oct, 16.—Large num- 's who went on_ strike when the nationwide RESTRICTIONS WILL KEEP QUT RADICALS Washington. Oct. 16—By an over- whelming majority the house today passed-a bill extending for one year wartime. passport restrictions 80: as-to Keep radicals and undesirable aliens Roselle today, shot a policeman in a duel, in which one of the robbers also ‘was wounded, and escaped with about $7,000. ALLIED SQUADRON ARRIVES Copenhagen, Oct. 16.—A_ British- French squadron of more than 20 war- ships, has arrived at Riga, accordin; fe a Lettish private report receiv ere, eel and iron employes be-|! OF AMERICAN LE Army of the Republic Soon I: tion of Delegates Here for letic Show Tonight; Mardi every county in the state open that organization here this morn Altho the greater part of first session was the seating of d convention will revolve. of the delegates assembled here. As the special guests of the in the boxes and listened to the travel in the right path. After the gray-haired veterans of the ci’ course and that the younger’ vet down to businss and that the w direction of Major J. M. Hanley iF FRIDAY’S PROGRAM Reports of following com- tees: Finance Resolution Constitution and- By-Laws Credentials. Naming of legislative com- mittee. Location of permanent | state headquarters. Election of officers. Next convention city. « | | | . + NATIONAL GUARD HONORS GENERAL FRASER IN BAST Named Chairman of Ex- ecutive Committee pee tlie | Adjutant General Angus ser was] elected chairman of the executive com- | mittee of the National Guard assucia- tion at a recent meeting of the organi- zation in New York. ‘This is probably the highest office in this nation-wide s tion and reflects on General! reputation as a national guard | oflicer and worker. General Fras ated today that the National Guard association ‘was op- posed to both the Chamberlain-Kahn bill and the Wadsworth-Kahn_ bill be fore congr The former bill is for the purpose of increasing the regular peace time y to 600,000 men and the latter provides for conscription in- to the regular army in times of peace. “ILL-ADVISED ; UNAMERICAN” “The National Guard oclation has fought these two bills because we con-) sider them ill-advised and un-Ameri- can,” Said General Fraser. “We have} laid the facts before the men at Wash- ington and both Senator Wadsworth and Senator Chamberlain had with- drawn their support from the bills they cach introduced. We are confident that they will never be enacted. “National guard officers do not be- lieve that it is necessary to conscript nen into the regular army in times of peace nor do we believe it is necessary to maintain a huge standing army at great expense in times of peace. The national guard is the proper method for training the citizens of this country in military duties and we are positive that we do not have to resort to con- scription to obtain sufficient numbers to train. - “It is an undisputable fact that men who live in the same neighborhood as do those men who desire military train- ing know those men better, understand their habits and desires and can there- fore train them to a higher degree of perfection than can strangers. For in- stance a man from Alabama can not understand the men of North Dakota as well as & man from this state can. And the same is true of the man from North Dakota going to Alabama to train men from that state. This, priefly, is what would happen if we had universal conscription for the 1bg- ular army and men trained by regular army officers.” Insulating materials are now made from kelp. G. A. R. few remaining! members of the G. A. R. o apparently staisfied that the convention Was fe spreading and teaching Americanism. The morning session was very orderly, but little actual work was accomplished because nothing was permane the afternoon session it is expected that th man, will move smoothly and steadily to comp! ie jthe order of jbusiness for the conyen- Head of State’s Military Forces}; Aa SIMON-PURE AMERICANISM GOAL GION, SAY CHIEFS IN OPENING OF STATE CONVENTION Warrior Organization to Take Up Patriotic Work Which Grand s to Lay Down—Fine Representa- Beginning of Big Meeting—Ath- Gras Dancing Carnival Friday. With pure, unadulterated Americanism as the keynote of the meeting, 200 delegates and members of the American Legion from ed the first state convention of ing, at the auditorium. the actual business done at the elegates and preparing for a per- manent organization, the speeches, brief as they were, stressed 100 percent Americanism and around this ideal all activities of the The state organization, as well as each local post, have been more or less temporary organizations and this convention will form a permanent organization for the state and each post, This meeting really marks the beginning of the American Legion as a cohesive organization in North Dakota and the foundation it will lay for the future upbuilding of its activities will be in the lands Attend Bismarck post of the legion, the wcupied seats of honor speches with an eagerness that clearly showed they were watching the legion-to see if it would a few brief talks had been made vil war settled back in their seats ollowing the proper erans would take up the task of nt. However, with ie delegates will get ork of the convention, under the of Mandan the temporary chair- letion. HANLEY NAMED CHAIRMAN Major Hanley. was unanimously named as temporary chairman of the convention aftér Julius R. Baker of Vargo, who has. been acting in that cepacity since the legion was started refused Serve. Jack Williams was retained as temporary secretary. Major Hanley, following the readi: jef the finanéial ‘report ‘which shfve |) that the state organization had $1800 on hand appointed the following au- iting committee: P. G. Harrington, Bismarck; F. S, Henry, Valley City, and HK. Jensen of Mandan, ‘ Because there was no permanent or- zation yet in existence, the chair- n appointed a committee to draw up tion to follow. ‘This committee will report at the convening of the after- noon Session. The committee consists of Dr. James P, Aylen, Fargo; J. H. Fraine, Grafton; ©. L. Dawson, Beach; ak Carter, Carson; Frank White, The morning session was oj with the McDonald orchestra pee Star Spangled, Bann ‘ WELCOMES DELEGATES General E. A. Wiliams, in a brief speech welcomed the delegates to and in the course of hig re- You men must inculeate ing generations and those who come from other countries to live with us the true spirit and the perfect ideals of Americanism. You must pick up the work where that noble organiza- tion, the Grand Army of the Republic left aff.” Major Hanley, as a member of the temporary state committee, responded to the welcome on behalf of the Le- sion. “Our organization does stand for Americanism and the spreading of the principles of Americanism. We still owe a duty to the nation, we still have a responsibility to the ,govern- ment and with God’s help we will not cCishonor our trusts, If we live up to the ideals of the G, A. R. we will have fulfilled our duty. Julius R. Baker, temporary state chairman, made his report in which he told of the growth of the legion in this state to 76 posts and closed with the annuncement that it was up to the dciegation to elect a temporary chair- . man of the meeting. Mr, Baker de- clined to accept fhe office and Major Hanley of Mandan was thereupon un- animously elected to preside over the convention until permanent officers are elected. Jack Williams of’ Fargo who has acted as temporary state secretary was’ unanimously elected to continue in that office until permanent officers are elected. 5 DELEGATES PRESENT Post No. 1, Bismarck: S. J. Boyd, A. C. Seeley, R. B, Lewis, H. T, Mur- phy, P. G. Harrington, General A. Fraser. Post No. 2, Fargo: William T. Kroll, Dana T. Colby, Daniel D, McLaren, Seth W. Richardson, Robert J. Boyd, kK. E. F. Colley, Sidney Hooper, Steve Gorman, William Stern, Fred Kramer, Dr. F. J.,Hanna, Dr, Jas. P. Aylen, John P. Vonmy, Remley B, My- ers. L. W. Hamm, Julius Baker; Jack Williams, Post No. 3, Dickinson: ©. H. Starke, Fred Hoffman, L. R. Baird, Welland Orchard, Lyall B. Merry, Sanford Mc- Cutchan, Crosby Richards, George Nolan, A. B. Mead, Vewellyn Roquette. Post No. 4, Hillsboro: H. M. Nash, Duane Y. Sarles. Post No. 5, Beach: C, L. Dawson, J. A. Kitchen, ‘ Post No. 5, Minot: F, R. Landers. Post No. 6, Grand Forks: Clarence L. Hassell. ‘ Post No. 7, Lisbon; Jerome B. Jones, R. 0. Harper, Wm, M. Jones, Jr., Cutts * bert Moore, Everette Standt, - ; (Continued on Page Seven) {>}