The Bismarck Tribune Newspaper, January 26, 1921, Page 1

f - George has taken exception to art! THE WEATHER = | THE BISMARCK. TRIBUNE a THIRTY-NINTH YEAR BISMARCK, NORTH DAKOTA, WEDNESDAY, JAN. 26, 1921. PRICE FIVE CENTS ACCOUNTANTS FIND RECORDS INCOMPLETE. IN MILL AND HOMEBUILDERS ASSOCIATION / INDUSTRY PROBE "22S °%"" PALMER SAYS PLANS ARE MADE : BY ASSEMBLY MEN Attorneys to Study Report Be- fore Hearings Begin, Chairman Says VIEWS ON THE REPORT Nonpartisan Calls It Failure; Independents Say It Shows Need of Probe (Plans for the investigation of the state industries under the report of Bishop, Brissman and company, were discussed at a meeting of the com-! mittee of nine in the courthouse this morning. “We will begin the hearings as soon ; as the attorneys have had an oppor- tunity to study and thoroughly under: | stand the voluminous report,” said | Chairman Grangaard. An accounting report is not easily understandable by a layman, and we have no disposition to act hastily.” Peoples Industries, In outlining the committe plan at the conference today Mr. Grangaard in addressing the attorneys, said: “You gentlemen were selected by: this committee because of the fact that you had not been recommended to us as being men of impartial minds and - unprejudiced. up to this time having taken no active part in the factional strife that has been so prevalent in North Dakota for the last few years.” The idea in the minds of all members of this committee, realizing the 1m- portance of the work before us—the one and sole idea is that we are here; representing the house of representa- tives of the state of North Dakota, not representing any one faction or set ot men, but representing all of the people ; The industries that have been examined and the industries upon which this audit report is based, which we are called upon to decipher, are the in- dustries of the people of North Da- kota. Wes 2s the members of the committee to make'this investigation and report, realize and want you to Know that we are sitting here as, an unprejudiced, unbiased committee. We have no desire to prosecute, no de-; sire to whitewash; we only desire to get an unbiased and truthful report. Our report will be exactly what the audit shows. Cautious Fairness, “In conducting this examination. gentlemen, we want you to bear in mind these facts as stated; that there is no inclination on the part of any member of the committee to have any factional feeling enter. This is not a prosecuting committee. It is not a defense. You have been engaged for the purpose of conducting the investi-| gation. You have been engaged to analyze the report of the auditors, and the committee is willing that you have such support and held as will enable you to do-that work. in a fair, com- plete and proper manner.” Mr. Murphy Replies, Francis Murphy responded on be- half of himself and Mr. Sullivan. (Continued on Page 3) LLOYD GEORGE DOESN'T LIKE PARIS TALK English Premier Threatens That ‘He Will Not Return Again Paris, Jan. 26—Premier Lloyd- published in a Paris _paper criticising hig attitude on sevetal questions in connection with the matters before the league of nations. He has made his complaint official- ly to the French government. “Since I am treated this way, i tell you I will neyer come to Paris again.” Government officials have appealed to the newspaper to use more moder- ation in writing of work of the su- preme council. GILBERT WILL SERVE SENTENCE NEXT MONTH Red Wing, Minn., Jan. 26—The United States supreme court mandate affirming the conviction of Joseph Gil- bert. former Nonpartisan league or- ganizer, for violation of the Minnesota sedition act, was filed in the district court here today- It is understood that through an ar- rangement with authorities Gilbert will give himself up February 5 to start serving a one-year sentence in the county jail. Gilbert. who is out on bail, was in- dicted with two other Nonpartisan arganizers by. the Goodhue county grand jury on a charge of seditious utterances. ‘DR. F. E. FRONCZAK Could you get along on three hours’ sleep a night? Dr. F. B. Fron zak, | Buffalo, N. Ys health. commissioner, beats Edison us a short sleeper. Edi- son averages four hours out of 24; Fronczak three. MOVEISMADE TOWARD PAYING ; House Advances Bill Providing for Appropriation of Ba $12,000 MOVES DRY BILL UP The house apparently is ready to appropriate $12,000 to pay the expen- ges of the audit of state industries | made by Bishop, Brissman and com- |pany. The bill providing such an ap- | propriation was brought before the house yesterday afternoon on # ma- jority and minority report of the ap- propriations committee, and the house ‘voted down a motion to substitute the minority report for indefinite post- ponement for the majority report. Be- cause of amendments the bill went into general ofders, for further ac- tion. The house was to have several im- portant bills before it today, as the result of a meeting in committee of the whole . yesterday afternoon. Among them is the prohibition en- forcement> act, designed to bring the state prohibition laws in harmony with the Volstead act. The house j committee of the whole strengthened the act by including the carrying of | firearms by whiskey runners in the imprisonment for carrying whiskey in a stolen automobile. ! On this amendment offered by Rep- ! resentative Miller, of Bottineau, who {spoke of two murders in the border country by whiskey: runners, both Speaker Twitchell, sitting as a mem- ber, and Representative Del Patter- son, Nonpartisan floor leader, made a seconding motion. \The house passed a bill designed to protect the American Legion emblem iby a vote of 103 to 0, with ten absent. The house, was to vote today the bill making Armistice Day a legal holi- day. The house passed bill No. 27, pro- viding for the compulsory teaching of thrift in the public schools, consist- ing of two 15 minute lessons each week, 69 to 39, with 4 absent and one not voting. The bill, offered by Rep- | Kitchen, would provide relief for five counties where salaries are below the minimum, The following bills were introduced in the house: House bill No. 46—Martin and Bjer-| go—Providing any release or ~waiver contained in promissory note or chat-| tel mortgage shall be void. Judiciary. H. B. No. 47—Lazier and Durkee— Providing Closed season on deer till 1923 after which female deer may not be killed but male deer may be hunt- ed between Nov. 10 and Nov. 30. Game and Fish. H. B.\ No, 48.--Bauer—Requiring butchers to keep record and make re- port to Commissioner of Agriculture {on branded cattle kille Sericultare._| if TWHATHER REPORT’ 1 For twenty-four hours ending ay noon, Jan. 26, Temperature at 7 A. } Temperature at.noon Highest yesterday . Lowest yesterday Lowest last night Precipitation ... Highest wind velocity Forecast. For North Dakota: Fair tonight and probably Thursday; not much change in temperature. Defeats Ohio State Columbus, Ohio, Jan. 26.—Chicago defeated Ohio State in basket ball last night by a score of 41 to 32. AUDIT WORKERS ection permitting six months to five! _UNTERMEYER — GERMAN AIDE | Attorney Génerai Declares New ' York Attorney Acted as Adviser to Embassy ;CHARGES ARE DENIED Comes as Retort to Criticisms on Policy of Custodian of * Alien Property Washington, Jan. 26—Attorney Gen- eral Palmer last night charged Sam- uel Untermyer, New York attorney, with acting “in the German interest” and with “simply serving his old cli-' ents” in his recent criticism of Mr. Palmer’s conduct of the offices of alien property custodian and attorney | general. The attorney general pre- sented his charges in a formal state- ment with quotations taken from 2 report by Captain Boy-Ed, former naval attache of the German embassy here. The report of Capt. Boy-Ed as made | public by Mr. Palmer referred to pr. | Untermy: “the unpaid judicial legar | and political adviser of the German embassy. “The.e charges regirding my alleg- ed activities before the war have ; teen publicly exploded time and time! f again. I insisted on appearing before the Overman committee and disprov-— | ing them at that time. “I knew members of the German embassy when we were at peace witm Germany as did many men in public} and private life. “But I thought the war was over and pray what on earth has this job lot of lies got to do with my categori- cal charges against this recreant and incompetent public officer who now adds to his’ offenses the still more heinous one of using the archives of his office to attack men who have the courege to attack his narrow admin-! istration.” DENIES CONNECTION, New York, Jan. 26.—Denying that he ever acted as counsel for the Ger-| | man embassy and maintaining he had | never had any business, social or pro- fessional relations with Capt. Boy-Ei, | Samuel Untermyer issued a statement relative to Attorney General Palmer's | charges. It follows in part: “T have just been shown Mi. i mer’s oft-refuted statement con | ing my alleged activities before our | country ended the war.” SENATE WOULD ALSO PROBE IN AUDIT REPORT Senator Liederbach’s Commit- tee, Like House, Plans to Call Witnesses MANY PETITIONS FILED The senate may also have an in- vestigation. Senator Lieberbach, chairman of the committee named to confer with the state board of audit on the report on state industries, said jthat his committee would, like the house, hire attorneys, call witnesses and investigate the report. Other members of his committee are Sena- tor Church, Nonpartisan, and Senator Ployhar, indepenedent. The senate received many petitions yesterday afternoon. Among them was a petition from the county offi-+ cers of Pierce county asking for an increase in county officers’ salaries, and similar petitions from many other counties. The town council of Mon- ango, Dickey county, asked that legis- laticn regulating use of artesian wells be passed. i The congregation of the Methodist Episcopal church at Cooperstown asks that the prohibition laws be brought in harmony with the Volstead act. Senator Van Camp introduced Sen- | ate bill No. 29 providing for an ap- prepriation of $35,000 to aid‘in con- structing a bridge across the Red | river at Pembina. ALIENS SEN' BACK BY U.S. Washington, Jan. 26.—The depart- ment of labor has announced the de- portation of 505 aliens from Feb. 1, 920, to July 1, 1921, alleged to have been connected with movements di- rected aga‘nst, the government. SAYS PLANES - COST LESS Washington, “Jan. 26 26.—In justifica- tion of the use of German aeroplanes in aerial mail service, Postmaster Gen- ! eral Burleson today sent a report to the house to the effect that the Ger- man plenes were operated 30 per cent cheaper than the American ones. He admitted, however, that two of the eight German airships purchased i had been destroyed. | stolen, ‘GERMANY OWES. U.S. MILLIONS Washington, Jan. | owes the United: States for the maintenance of American troops in German territory since the armistice and according to the ‘pro- visions of the treaty of peace, accord-; | ing to a statement made by Senator} | MaLatren iu congress today and_ placed in the ie, compressional record, ASK FARMERS TO GIVE UP ALL PRODUCTS Russian Minister Says Peasants. Rebelled Against Lenine / Order ne —Germany now | 9228,003,00) MANY ARE NOW STARVING |} Rev. Mr. Frey Scores Present Government of the Country Russia was,as nearly ideal as any. country could be» while it was un-! i der control of the Kerensky regime. Before there was little freedom. Since there has been none. Thus did Rev. John Alexander Frey , of Riga, Latvia, Russia, minister, au- ‘thor and statesman, epitomize the the three regimes that have recently had control of the European country. Rey. Mr, Frey id that he didn’t believe the czars will ever,come back but that under the Bolshevist control the people were not working, property was being confiscated and many were starving. Lenine Enters. He was in Petersburg when Lenine first came to that city from Switzer- land, where he had been studying the communist ideas. “Lenine never gives Jong speeches. ‘He said, ‘I'll give you peace,’ and ‘I'll give you bread.” “The people said this, is. just what we need and he is the man we want for our leader.” Didn't Get. It. Rev. Mr. Frey said that Lenine has not given them what they wanted and that he could -not. Meaning that all property had been Lenine told them to “steal| what is stole,” and now everything is) being stolen, gold, silver, jewels and everything that is not secreted. People Starve. He declares that the Communists went out to the farmers and told them that the farms and stock and every- thing belonged to the government and that the government would take every- thing that was produced and give them in return everything they need- ed. The peasants rebelled at this and would not work und therefore the peo-| ple in towns starved and times became very hard. Lenine, he said, then tried to buy grain and stock from the farmers witn paper money he had printed, but the peasants refused to accept this and about the only way which sup- plies can be obtained now is through the exchange of jewels, clothing and other articles. Sent to Prison, Tey. Mr. Frey said he had been sent to ‘prison at Riga, because the powers that be in Rus had no use for preachers and charged that they were braking the people stupid by their ser- mons. He will speak again Thursday night at the German Baptist church. FARMERS UNION HEAD OPPOSES NP, PROGRAM McAuliffe of Kansas, Asks State Legislature for Remedial Laws: Topeka, Kan.. Jan. 26—Maurice Mc- Auliffe, president of the Kansas Farm- erg Union, has usked the Kansas leg- islature, in session here, to enact remedial laws to relieve the present economic distress. He declares that relief is not in political management of industries but in the co-operative program which is supported by farm organizations like the Farmers Union. The co-operative organizations man- aged by the Union in Kansas.. he said, now numbered nearly seven hun- dred and were doing an annual bus ness of $200,000.000. * There are many members of the Farmers Union in the Kansas legis- lature. WHEAT DROPS AT CHICAGO! Chicago, Jan. -Wheat underwent a material setback today in price ow- ing largely to assertions that no grain would be exported from Argentine for | some time. ‘Opening prices ranged from one to one and a half cents lower and, was followed by a moderate drop. i; important matter before the URGES LOAN TO EUROPE BY COUNTRY carly Suggests Foreign Finane- ing to Aid the Farm- ' -ers BIG PROBLEM NOW eiuiiear Products Have De- clined Sixty Percent, Says Banker Fargo, N. D.. Jan. 26—The problem of financing the tarmer is the most) the state at this time, declared J. Karly of Valley City, a member of the executive council of the state bankers association, today at the first day's house committee of nine, after GRITIGISE METHODS USED BY SEVERAL INDUSTRIES BUT DON'T SEEK T0 FIX RESPONSIBILITY ‘Real Condition of Affairs to Be Developed by people of the way for House and Senate Investigations. Attorneys Hired to Brief Audit and to Summon Wit- nesses—Operations of Bank of North Dakota Are Merely Outlined—Liabilities of Closed Banks Listed. ‘ : —_ The audit report of Bishop,Brissman and company, now in the hands of the state hoard of auditors, senate and house, opens an exhaustive examination ‘into the conduct of state J. Industries. The report is so regarded by independent members of the an examination of it. The report session of the North Dakota Imple- ‘contains a mass of figures regarding the examination of the Bank | ment Dealers association. i Big Problem. The convention — will through Friday. continue of North Dakota, with but little summary and conclusions, and ithe verification of the amount of loans, the value of securities and similar banking practices will be subjects for the investigating “The work of financing the farmer.” |committee. he said, “is especially important now ; because within a few short peel the selling price of agricultural prod: Urges Loan. Mr. Early contributed this to the demoralized condition of the European market. To remedy this condition he urged that investors, including farm- ers, contribute to tonesume loans to Europe. LEGION BONU BONUS BILL IS DRAWN FOR ASSEMBL Provides Increased -Mill- Levy.) and Would Remove Re- strictions Now On FOR NATIONAL BONUS A new bonus bill, prepared by the legislative committee of the Ameri- can Legion, is to come before the legislature for consideration. Chief features in the new bill are: Raises mill levy from three-fourths mill to mill or mill and quarter (un- decided ). Straight $25 a month bonus pro- vided, removing all restrictings, If soldier were killed, orphan child, widow, shall be paid bonus or mother and father is reasonably in need of it. Adjutant general, with consent of Industrial commission, may give pri- ority on claims. ‘Compensation provided shall be used only in state of North Dakota, with exceptions. Makes it duty of adjutant general and Industrial commission to cooper- ate with United States government and endeavor to secure further and additional aid and assistance, for re- turned service men. The Legion legislative committee believes that provisions ought to be made for a levy large enough so that the bonus could be paid off in the next three or four years. They also believe. that the restrictions now placed upon the bonus ought to be removed. : A concurrent resolution memorializ- ing congress to enact a national bonus bill was to be presented in both the state senate and house this afternoon. WHISKEY RUNNER WILL RECOVER |‘ Min-t, N. D, , Jan. in. 26.—Arvey Erick- son, Chisholm, Minn., alleged whis-| key runner, who wag wounded after he mortally wounded Policeman Lee S. Fahler, in a revolver duel last week has fair chances of recovery, the at- tending physician reported today. Erickson has retained counsel. 36-PHILIPPINOS ARE DROWNED Manilla, Jan, 26.—Thirty-six Philin- pinos, mostly women and children, were drowned in the wrecking of the three-masted schooner Filicidad blown ashore and helplessly pounded to pieces in a furious storm at the mouth of the Agno river, according to ad- vice bes Aaa CHARGES AGAINST . SCHWAB FAIL Weshingt-n, “Jan. 26—Charges that Charles M. Schwab had received pay- ment from the government for expen- ses while serving as director-general of the Emergency Fleet Corporation were not proved, the Walsh investi- gating committee said today in an au- thorized statement. ‘The opinion of the committee was expressed by Representative Steele, Democrat, of Pennsylvania, who said it was based on testimony and docu- mentary evidence while he individu- ally felt a great injustice had been done Mr. Schwab. | ucts produced at the highest cost ever audit reveals a situation that _ has declined more than 60 per cent.” How Independents View It Independent, members of the house commitéee believe the ‘alls for exhaustive examination. Bishop, Brissman and company makes some conclusions regard- ing the law governing the bank operation, and urges changes in the law, and the committee is expected to form conclusions on the matter of future legislation. Nonpartisans’ Attitude Nonpartisans, after an examination of the report last night by state officials, appeared to be of the opinion that the audit had not revealed any such situation as had been charged. The house committee announced it had employed attorneys John F, Sullivan of Mandan, and Francis Murphy of Minot, to aid in its investigation, and had engaged C. C. Wattam and Crissie Budge as reporters to make a transcript of fhe evidence. Accountants also will be employed. f To Use Attorney General Senator Liederbach, head of the senate committee, wants the attorney-general’s office to furnish an ‘attorney for his commit- ‘tee. The report. by industries: BANK OF NORTH DAKOTA The examination by accountants, as of date of Déc. 3, shows 407,645.24 loans to banks, of which $1,147,607.385 was pas! due on that date. Of $105,722.60 loaned to elevators, individu- als, packing companies, etc., $69,122.00 was past due. Loans to Industries Loans to state industries, total $882,716.72, divided as fal- low! Mill and Elevator association, $650,000; Home Builders, 225,000; Industrial Commission, $7,716.72. Two hundred and eighty-five banks failed to reply to Bishop, srissman and companyis request for verification of their bal- ances. Of those that replied discrepancies were shown in the cases of 18. Liabilities of Banks Liabilities of twenty-three closed banks with the Bank of North Dakota, at time of examination totaled $680,711.89 and the liabilities of banks closed since that time, as-of Dee. 3, to- taled $237,076.99, making a total amount of money tied up in closed banks of $917,788.88 It will be urged by critics of the bank that redeposits in state banks show favoritism, as has heen charged. The largest redeposits apparently are held by the Scandinavian-American bank of Fargo, which has figured prominently in allegations re- garding the Bank of North Dakota. The report showed rede posits of $228,974.71 and loans of $215,152.71, a total of $444,- 127.42. Names of banks generally in which redeposits are made are withheld from publication. ; Redeposits Listed . The list of redeposits of $20,000 or over, which independents will claim bears out the charge of ae ae amounts in banks, taken at random, as follows: $59,24 3 $21,094.86 ; $124,04 63,459.20 5 ee 45; $24, err $57,301.17 ; $35,202.75; $40,810.23 ; 333.99 5 $103,732 745 $51,467.74. Farm loans and special ‘Ueposits incomplete are shown out- standing in the amount of $307,300. Amortization Plan tion plan of repayment of farm loans, which contemplates repayment in 30 years, there would be at the end of thal time $263.60 out of each $1,000 loan saill unpaid, due to a faulty.amortization table, it is said. Of first payments on farm loans due in December, amount- ing to $43,074, a total of $18,533 had not been paid. This may he | the cause of the investigation of the security of hundreds of thousand dollars of loans. The $1,000.000, which the bank borrowed from a Chicago hond house, putting up $1,200,000 of state bonds as collateral, becomes due March 5, 1921. Pike’s ‘Bill Sometime ago publicity Was given to Auditor Kositzky’s re- fusal to pay a bill of $7,716.7: » presented by the Bank of North Dakota for an amount due Fred Pike, attorney, of St. Paul, who appeared in the “#2 taxpayers case.” The audit report states that accounts ie there is an overdraft of $100 on his account, ‘und adds that it is not properly an overdraft as it represents a balance on an advance of $7,816.72 for legal services of which 16.72 was paid by authorization of the Industrial Commis sion, as a loan to the commission, HOME BUILDERS’ ASSOCIATION The financial statement of the Home Builders association shows disbursements of $876,699.08, and an overdraft of S10. 752.62 with the Bank of North Dakota, Expenditures were made from thesé funds brought forward from the Yalance of the home builders ‘appre (Continued on Page 3.) Under the amort