The Bismarck Tribune Newspaper, October 25, 1919, Page 1

==|THE BISMARCK TRIBUNE/== PRICE FIVE CENTS — THIRTY-NINTH YEAR, NO. 245. | SUPREME COURT GIVES FARGO | BANK CLEAN BILL OF HEALTH | LANGER ATTACKS TOWNLEY’S REGIME BISMARCK, NORTH DAKOTA SATURDAY, OCT. 25, 1919. ‘ence with the ATTORNEY GENERAL SCORES N. P.! CHIEF AND STATE OFFICIALS WHOM HE STATES MEEKLY DO HIS BIDDING * Traces Banking Board’s Probing Into Valley City and Fargo Bank Affairs and Asks Farmer Audience at Finley to Decide for Itself Whether He, Hall and Kositzky, or the League Chief and His Aides Are Real Bank Wreckers—Declares His Record Is Clear and Open to Inspection. Finley, N. D., Oct. 25.—“Townley is attempting to prostitute teeing interests of each and every citizen to his own personal ambition, and Frazier is attempting to protect him and the, group of consciencelegs: looters about him,” illiam Langer today in addressing a Steele county farmer: audience. gathered here: to hear him. “Governor Frazier,” added the attorney: general, “instead of helping to put crooks and law-breakers in jail, is doing everything in his power to keep them out—if they are marked with the Townley brand.” The attorney general early in his address reviewed at length the Valley City bank matter, in which he charged that the banking board had compelled Thomas Allan Box and John J. Hastings, for- mer financial agents of Townley, to restore to the farmer bank there a large amount which they had apportioned themselves in the form of excessive commissions during the reorganization of the financial interests of the sta said Attorney General the American National bank. He then delved into the bank- ing board’s more recent experi- Scandinavian- American bank in Fargo. Re- ferring to Governor Frazier’s a' titude in this matter, Langer said: “Governor Frazier, in speaking at Fargo last Tuesday, said that it was hard for him to work on a board such as the banking board, where a major- ity of the board was opposed to what he’ considered the right policy. The trouble is that Gov- ernor Frazier does not believe in democratic control of either the state or boards—he is not gover- nor of all the people of North Dakota, nor of any class, of peo- ple of North Dakota—he is A.C. Townley’s governor, and governs at his beck ‘and. call. Governor Frazier cannot work with any board the majority of which does not take orders from Town- ley.” f z “Who controls the public money in North Dakota? Is it the officers elected by you farm-|* ers? You think so! But in May of this year President Hagen of the Scandinavian - American bank wrote 2 letter to Townley, and, altho the bank already had about a quarter million of, dol- lars on deposit of this money, Townley promised another half- million to the bank.”..,. Who, as citizens of this state, do you hold responsible for the administration of its laws? Lemke and Townley, or Frazier, Hall, Langer and other officials. Townley and Lemke and their ilk are birds of passage.” Referring to Standard Oil Co. litigation now. pending for the collection of $140,000 in state taxes, Langer declared the act under which this levy was made to be imperfect and charged Townley with bad faith in his in- sistence that it be put over in this form. In closing he asked his hearers whether they pre- ferred “honest government for all of the people or dishonest and crooked government on behalf of a class organization—a group of individuals or a political boss? “Who is the crook and’ the traitor to the farmers and the people of this state?: Is it the man who has perpetrated these bank scandals and the men who have protected them, or is it the men who have opposed the loot- ing.” LANGER’S ADDRESS Langer’s address in part follows: Mr. Chairman, Ladies ‘and Gentle- men: When I spoke in Finley four imonths ago, I warned you of the dan- gers of one-man control of public af- fairs—I warned you of the dangers to private business in connection with such autocratic control of) the state. At that tihe I could only. point out to you as an example of such political Control of affairs, in its relation to Tubli¢ business, the Valley City bank scandal, Today, however, I can unfold to you a much more far reaching and alarming state of affairs in connec- tion with the autocratic control of public affairs and its relation to pri- vate business, HE VALLEY CITY BANK DEAL Along in February” of this year it Wig brought-to- the attention--of Wil- (Continued ‘on Page Four.) WESTERN GAMES | TODAY He WESTERN GAMES Iowa vs. Minnesota. Northwestern ys. Chicago. Wisconsin -ys. Illinois. Ohio State Michigan, Michigan Aggies ys, DePauw, Notre Dame vs. Western State Nor- mal, Missouri ys. Drake. Oklahoma vs. Nebraska: Kansas y Franklin Crieghton Rose Poly vs! Butler. Haskell Institute ys. leyan, Kansas Aggies vs. Hay Normal, s Earlham. Arkansas ys, Louisiana, Wa er vs, Case, Cincinnati ys, Denison, Western Reserve ys, lace. Miami vs. Oberlin. Beloit vs. Ripon. Southern Methodist university vs. Oklahoma A. and M. Fairmount ys. State Manual Normal. Ohio Northwestern ys, Ohio, Wes- Jeyan. Great Lakes vs. Vitparaiso. Washington vs, Grinnell, Carleton vs. Coe. South Dakota ys. Morningside. Upper Iowa vs. State Teachers’ col- lege. - Cornell ys. Parsons. Des Moines ys, Simpson. Albion vs. Alma. Kentucky..ys, University of South: Transylvania vs. Center. Wilmington vs. Wittenburg. Kenyon ys.’ Ohio: university, Muskingum vs. Marietta. * Lawrence vs. Stevens Point, Center vs. Transylvania. TROTZKY FLEES WHEN HIS STAFF IS MADE CAPTIVE Minister of War and Marine Es- capes by Clinging to Rail- way Coach Salina Wes- Baldwin-Wal- Copenhagen, Oct. 25.—The entire staff of Leon Trotsky, Bolshevik min- ister, of war and marine of Russia. has Leen captured at Tsarskoe-Selo, accord- ing toa Reval dispatch to the national Tidende. Trotsky himself escaped by clinging to a railway car and later flee- ing from the scene in‘an automobile. Troops of the Northwestern Russian army pursued the minister and fired on| his car, but Trotsky succeeded in reaching Petrograd. The left flank of General Yudenitch’s. army ig reported to be on the Neva river inside of the limits of Petrograd and shooting over the housetops, BIGGEST STILL IN ° NORTHERN OHIO IS PUT OUT OF GAME Cleveland, O., Oct, 25.—What Sheriff Fanratty today termed the largest dis- tillery in northern Ohio since the ad- yent of prohibition was uncovered in a iaid,on eight; farm houses in Euclid township near here, Fighty-tive gallons of raisin whiskey, nine stills and sixty. cases of raisins were seized. Five arrests were made. TOWNLEY TALKED FOR HIMSELF IN LOCATING MILL John N. Hagan of Industrial Commission Says No Ac- tion Has Been Taken BOARD STILL IN DOUBT More Information Necessary Be- fore Site Can Be Selected, Asserts Member When President A. C. Townley of tional Nonpartisan league, ad- ing the league mass meeting at intimated that as a result of s attitude in. the Scandinavian- an bank matter it was to lose the frst state-owned’ mill and elevator to Grand Forks, he was expressing | his own personal opinion and was not at- itempting to speak for the state indus- id John N. Hagan, commissioner of agriculture and labor und a member of the industrial com- mission, interviewed at his home here _ |this: morning. .. Mr: Hagan. expressed | the belief that the Courier-News in re- porting Mr, Townley’s speech had laid more stress than was waranted on his comment with regard to the location of the first public enterprise, NO ACTION TAKEN “The industrial commission has taken no action in this matter,” said Mr, Hagan. “We are not in a position to act until we have ob- tained. more data than now is available. At present it would be impossible for me to for the commission, where the first mill and elevator will be located. I can state positively that no definite de- cision has been made. The commis- sion met Friday afternoon, but it considered only routine matters. I did not hear Mr. Townley’s address in Fargo, but as I understand it he undertook to express only his own views on the subject; he did not, I am certian, wish to convey the impression that he spoke for the industrial commission, ONLY GENERAL IDEA “As yet the commission has only a general idea of what the first mill and elevator will be, We are considering a 1,500,000-bushel capacity elevator and a mill which will turn out 3,000 bar- rels daily.. In connection we purpose to install a big power plant, with the idea of adding a cold storage plant later, As to how many men will be employed by this enterprise I could only hazard a rough guess. We are of the opinion, however, that the original investment will be $1,500,000.” + THERE'S STILL A CHANCE Commissioner Hagan’s interview is important in that it is the first intima- tion received since the mass meeting in Fargo last Tuesday that entries for the first state-owned enterprise to be lo- cated by the league are not closed and that the field is still open to all con- tenders, including, presumably, Fargo. JOE BRAGDON FAILS TO SECURE LIBERTY St. Paul, Minn., Uct. 25—The state Loard of pardons today denied ‘the’ pe- tition of Joseph W. Bragdon, convicted June 22,1916, of an offense against a young girl, and sentenced to an inde- terminate term ‘in state prison. Brag- don must remain in prison at least a year longer, under the board action to- day, the rules precluding his’ asking ctemency again until next October. ‘Lhousands of: Minnesota’ club women rotested against clemency for the pris- onef when his case was considered this menth by the board. The patdon board at a session-tate today was expected to dispose of more than 135 cases heard on the last calendar, { FIELD MARSHAL TERAUCHI REPORTED DEAD, POSTHUMOUSLY HONORED BY HIS PEOPLE, IS ALIVE AND BETTER TODAY (By Associated Press) + Tokio, Oct. 25.—Field Marshal Count Terauchi, former premier of Japan, whose death was reported here yester- day, is still alive, his physicians an- nounced today. When the aged diplo- inat- sank into a coma. yesterday. his physicians,believed that death.bad:over. taken him, and news of his demise was given. to the world, Camphor injec- tions given the count as a precaution- ary measure restored consciousness and today he was able to partake of milk und ice cream. Count Terauchi’s death had beeen of- ficially’ pronounced. ‘and posthumous /honoss had... been by the imperial court, DIRECT GENERAL STRIKE THREAT IF GOVERNMENT ATTEMPTS CONTROL BY LEGISLATION MADE BY LEADERS American Federation of Labor Heads Defy United States Congress to Seek to Regulate Industrial Situation—Machinist President Would Call Out 350,000 Men Washington, Oct. 25.—Passage by either house of congress of the anti-strike legislation contained in the pending railroad bill would resuly in a general strike thruout the country, officials of the American Federation of Labor said today. + “We are willing to go to any limit to maintain the rights organized labor‘has enjoyed for t wenty years,” said one federation official. William H. Johnston, president of the International Asso- tiation of Machinists, the second largest’ international union affiliated with the federation, said he would’order a vote of the 350,000: members of his association. COMPENSATION ACT UPHELD IN COURT DECISION Highest ‘Tribunal in State De- clares Statute Constitu- tional and Valid ROBINSON HITS RATES The. workmen’s. compensation act is held constitutional and a valid and legal enactment by the supreme court in’a decision handed domn Saturday afternoon which is unanimous as: to the general result, but in which Jus- ticts Bronson, ‘Birdzell ane: Robinson and Ohief Justice A. “M! ‘Christianson express different views as to various details. Justices Bonson’s opinion, which is signed by Justice Grace. holds that it was within the province of the legis- lature to enact a compensation law for the protection of workers injur- ed in the course of their occupation: the title is held to be correct, and it is ruled that the fact that some in- dustries were rot covered by this statute does not invalidate if. This action was ‘brought before the supreme court through an action in- stituted by A. J. Amerland of Fargo, a real estate dealer employing two stenographers’ covered by the act. He objected to the classificationof all employments as ‘ha dous; to the fact that certain industries were exemted, and to the schedule of rates as being inequitable with relation to the pro- portion of hazard. The principal opinion of the court does not go into the matter of rates to any.extent. Justice J. E. Robin- son, however, pays his respects to this feature of the act in a special opinion in which he, partly concurs as to the general result, upholding the valid- ‘ity of the act, but attacks the rates and the manner in which the bureau arrived at them. ‘His opinion was re- leased through the medium of his Saturday Tvening Letter. J. E, ROBINSON. October 25, 1919. To me it was allotted to write the leading opinion in the workmen’s com- pensation case. and it was done over a month ago. The case has not been well presented to this Court. The counsel insists mainly on the point that the statute conflicts with the due process clause of the constitution and ignores several better points. Then, so far as the relators rights are con- cerned they are ‘a mere bagatelle. The charges against him as the employer of a typewriter is only twenty cents onieach One hundred dollars of the! pay roll. It is the lowest charge on the whole schedule of 1400 different rates. Hence, the judges differ and the decision of the Court must be of little consequence. It is not binding on any one who can show that the rates charged against him are exces- sive or arbitrary. : The relator did not make any point on one of the: most essential facts; viz, that the rate sheet has never been published. ‘And it seems the bureau agreed with the Ohio Actuary to keep the rate sheet a secret—‘“to hold all acturial formuli in confidence for him.” His purpose must be to sell it over and over again to innocent parties in-other states. Manifestly it was never made for North Dakota, as it includes every business occupation in the United States; hence, its pub- lication would make a great and need- less expense... Here is my formal. opinion as written and submitted. Hazardous Employment The title: An Act Creating the Workmen’s Compensation Fund for the Benefit of Employees Injured and Dependents of Employees Killed in Hazardous Employment. Sec. 2. Hazardous employment means any employment in which one or more employees are regularly em- ployed in. the same* business or in or ‘about: the same establishment, ex- cept agricultural, domestic service and common carriers by. steam. rail- roads. bestowed. upon, him} ~ Sec. 3.. That from and after July 1919, it shall.be the.tluty..of the work- (Continued on Page Six) COAL STRIKE CONSIDERED President’ Wilson, through Secretary Tumulty, summoned the cabinet in special session to ‘consider the strike of bitumin- ‘ous coal miners called for next Saturday. Secretary Lansing was con- fined to his home with a cold and could not attend. All other |members of the president’s offi- cial family were present and Sec- retary: Baker presided. Secre- tary Tumulty was present to convey the views of President | Wilson on the situation. As they entered the White iHouse the cabinet officials de- ‘clined to make any forecast. Some, members,. however}- were said to hold the belief that stern action was necessary in the face of the grave industrial condition existing over the country. “Iam for the fight,” said one member of the cabinet. In the senate Senator Thomas introduced a resolution calling upon the executive branch of the government to “vindicate the jpower and majesty of the law” in the threatened strike. The resolution which is to be called up Monday, declared the strike ‘would “provoke violence, blood- shed and insurrection.” PROGRAM WORKED OUT |ment’ssattitude in the coal strike will ternoon, it said at the White House. While no, definite provision had been taken when' fli¢ cabinet recessed for luncheon, Secretary Tumulty id the di ion at the: morning session dis- 1 that the President’s official fam- y was of one mind and “not a bit] wobbly.” He added that when the pro- gram was presented Mr.’ Wilson was expected to make a public statement. was COX ORDERS OUT GUARD Columbus, O., Oct. 25.—Upon receiv- ing reports 0! rious fighting at Can- ton in connection with the steel strike, | ‘Governor Cox shortly after noon today jordered practically the entire Ohio na- tional guard mobilized at Akron for immediate duty at Canton. | ble machine gun com- several infantry companies were ordered mobilized. The mobiliza- tion order followed a report to the gov-} ernor by Col. John M. Bingham of the adjutant general’s office, who has been} aking @ personal investigation at! znton. Under the order issued by the gover- nor the national guard troops will mob- | ilize in action as rapidly as possible} and will be held there awaiting devel- opments. Akron is only a few. miles from Canton. | Whether the troops will be sent into! Canton probably will depend on what eetion the city authorities at Canton} take. | PARKER SUCCEEDS SELF W. S. Parker of Lisbon has been reappointed to succeed himself as a member of the state board of pharm- | A definite program to be placed be-| | we President Wilson as to the govern-| | (be formulated by the cabinet this af-|| BANKING BOARD MERITS AND GETS HEARTY CONDEMNATION OF HIGHEST TRIBUNAL, SAYS JUSTICE BRONSON Post-Dated Checks Declared 0. solvency “Not Justified and K. as Collateral—Finding of In- Unreasonably So Determined”— Writ Granted Directing State Examiner to Continue in Charge of Scandinavian-American With Full Power to Release It to Its Officers When He Deems Fit. In an opinion written by Justice Bronson and concurred in by Justices Grace and Robinson, the supreme court late Friday after- noon granted a writ in the Scandinavian-American bank matter directing the state examiner to continue in charge of this bank, “with full power to release possession of such bank to its officers when he deems fit,” and restraining the respondents (Attorney General Langer, Secretary of State Hall, the state banking board and their assistants) “from further continuance of their wrongful acts.” A judgment for costs and disbursements is granted in favor of the respondents, O. E. Lofthus as state bank examiner; the Scandinavian-American bank of Fargo, H. J. Hagen, its president, and N. G. Eggeri, Lars Christianson, H. L. Bolley, Spurgeon Odell, Emil J. Headland and J. P. Holmes, directors and stockholders, and P. R. Sherman, the bank cashier. Chief Justice Christianson and Justice Birdzell dissent and reserve the right to write and file opinions presenting their views. ’ Way Paved for Unsound Banking Says Minnesotan St. Paul, Oct.' 25.—The North Dakota supreme court decision in connection with the receivership of the Scan- dinavian-American bank of Fargo in the opinion of Min- nesota state officials, pulled the teeth of the North Da- | kota «banking board and paved the way for unsound banking practices. “The decision seems to | take away from the North Dakota banking board all | jurisdiction over loans and legal reserves,” was the com- ment made by F. E. Pearson, Minnesota superintendent of banks, on the court’s ruling on the difficulties of the Nonpartisan financial institu- | | tion at Fargo. | “If banks are permitted to violate banking laws relating to excess loans and reserves | and be sustained by the su- preme court it makes unsafe banking possible and creates a very dangerous situation in | my judgment.” As Minnesota officials un- derstand the North Dakota court’s decision it turns back the Fargo bank to the state examiner to use at his discre- tion, but indicates that but | one course is open to him and that the opinion of the court | is that the bank should never | have been closed and the banking board is enjoined from closing it again. | AGREEMENT REACHED ON DROUTH RELIEF ‘Edmonton, Alta., Oct. 25—-A basis of agreement has been reached between the provincial and Dominion govern- ments for the administration of relief in the drouth-stricken areas of south- erm Alberta. Terms and conditions were decided upon at a final conference here between cabinet ministers, It provides for a system of joint relief by the two governments. The province is responsible under this new scheme for (he distribution of all relief to settlers on both patented and unpatented lands, the Dominion government sharing in the cost on one-half basis. The classes of relief to be adminis- tered to needy settlers will be limited in character, but it has not yet been fully decided just what form the sup- acy by Governor Frazier. (By Associated Press) Fiume, Oct, 25.—The American flag was hissed when it was un- furled last eyening in the Phoeni- . cian theater here and when’ the “Star Spangled Banner” was play- ed by the orchestra the audience eried : “Down with America! Down with Wilson! Long live greater Italy and Fiume!” : lies will take. AMERICAN FLAG HISSED, WILSON AND HIS COUNTRY SLURRED, AND SAILORS ' INSULTED BY ITALIAN MOB IN FIUME Several scores of American sail- ors, who were present and who stood up when the American na- tional anthem Was played, also. were hissed and slurring remarks were directed at them, The demonstration occurred when an English company pre- sented the “Parade of the Allies,” during which the appearance of Italians only was aplauded, || dated chec’ jboard mai Thus is disposed-of one of the |! most spectacular ‘litigations in North Dakota’s history. It be- gan the latter part of September with a resolution adopted by Langer and Hall,'as majority members of the state banking board, holding the Seandinavian- American bank of Fargo insol- vent, as a result of the report of. two deputy state examiners de- claring that the institution. had... made excessive or poorly secured loans aggregating nearly three quarters of a million. The bank- ing board placed Deputy State Examiner P. E. Halldorson in charge of the bank as temporary receiver and closed its doors. There followed within a few days an appeal to the supreme court on behalf of the state ex- aminer and the Fargo bank for an alternative writ directing the state banking board to keep its hands off the bank and restor- ‘jing the institution to State Ex- aminer Lofthus, who joined with the Scandinavian-American’ and its officers and directors as a petitioner. The writ was granted.. An order of the bank- jing board directing state banks to purge themselves of post- 's was reversed in the same order. Motions from the attorney general requesting per- mission to retain what he claimed to be material evidence were denied. The state banking e its return October 15, when William Lemke, vice president of the National Non- ||partisan league, and represent- ing the Fargo bank, presented affidavits from state examiner and a certified accountant de- claring the bank solvent. The state banking board’s motion for the taking of oral testimony to determine the solvency of the bank was denied, but the board was given until October 23 to present additional affidavits sup- porting its contention of insol- vency. In the meantime Presi- dent Townley called the league farmers to Fargo on Tuesday, October 21, to protest against the closing of a bank and to make good their post-dated checks and notes and to sub- scribe to stock and make depos- its which would permit the bank to reopen. The supreme court in making its temporary writ permanent, sustains the contention of the state examiner that his prerogatives were usurped by the banking board in closing the Far-” go bank, and on this point the court says: “Where the state banking board, and the attorney general acting pur- suant to its orders, during the absence of the state examiner from the state. and without his initiative action, knowledge or consent, or that of the acting state examiner, caused an ex- amination of the Scandinavian-Amer- ican bank at Fargo to be made and immediately upon the reception of the reports of its examiners d such bank to be insolvent, caused the bank to be closed and its temporary receiver to be placed in charge’ there- of, arbitrarily, and without any warn- ing or opportunity given to the bank, officials or stockholders: to comply. with its demands or findi without snotifying ore (Continued on Page even). inga, and: