The Bismarck Tribune Newspaper, February 3, 1921, Page 1

The Weather Unsettled “THIRTY-NINTH YEAR — BISMARCK, NORTH DAKOTA, THURSDAY, FEB. 3, SEV INA GAA THE BISMARCK TRIBUNE [=« 1921 PRICE FIVE CENTS 1 LAW ON. INCOMES | 1S RECOMMENDED Would Increase It to 3 1-2 Per Cent If Capital Stock Tax Is Repealed Important changes in the present income tax law of the state are brought forth in a bill drawn by Tax Commissioner George E. Wallace for the consideration of the legislative’ tion committees, after he con-! ferred with them and a request was made for such action. The bill provides, the .recommenda- tions made by the tax commissioner in his annual report. Among’ the im- portant changes are: Corporation income tax increas- ed from 3 to 3 1-2 percent, but only in case capital stock, tax act is repealed. Personal property. offset donc away with. Income from mortgages on real estate mortgages secured on North Dakota rgal property are not exempted. } Interest upon obligations of political subdivisions as well as state obligations exempted. The North Dakota income tax law differs from other income tax laws in the United States in that it classi- fies income as earned and unearned and imposes a higher rate on unearn- ed than on earned income. .This dis- tinction is maintained in the proposed new law. A sur-tax-is impdsed on unearned income as follows: 1% of the amount by which the net 1 : unearned income exceeds $2,000, and ' docs not exceed $3,000. vr 2% of the amount by which the net J unearned income exceeds $3,000, and does not exceed $4,000. 3% of the amount by which the net unearned income exceeds $4,000, and does not exceed $5,000. 4% of the amount by which the net unearned income exceeds $5,000, and does not exceed $6,000. 5% of the amount by which the net . unearned income exceeds $6,000, ani’ does not exceed $7,000. 6% of the amount by which the net unearned income exceeds $7,000, and does not exceed $8,000. Y 7% of the amount by which the net unearned income exceeds $7,000, and does not exceed $8,000. The rates on earned income are as follows: 5 ) a. On the first $1,000 of taxable 1 income, or any part thereof, at the rate of 1%. , hb. On the second $1,000 of taxable income, or any .part thereof, at the: rate of 14%. j c. On the third $1,000 of taxable ) income, or any part thereof, at the rate of 2%. = d. On the fourth $1,000 of taxable income, or ‘any part thereof, at the, rate of 24%. e. On the fifth $1,000 of taxable >, income, or, any part thereof, at the , rate of 3%: f. On the sixth $1,000 of taxable income, or any part thereof, at the rate of 341%. g- >On the seventh $1,000 of taxa- ble income, or any part thereof, at the rate of 4%. h. On the eighth $1,000 of taxable income, or any part thereof, at the rate of 44%. i, On the ninth $1,000 of taxable income, or any part thereof, at the rate of 5%. j. On the. tenth $1,000 of taxable income, or any part thereof, at the rate of 514%. k. On any amount of taxable in- come in excess of $10,000, at, the rate of 6%. Rate Increase. The rate upon corporations is in- creased from 3 to 34%. This rate was recommended by the tax commis- sioner only in case the capftal stock tax law was repealed. A Dill has been introduced to repeal the capital \ stock tax law. The original income tax law attempted to impose a tax on income of non-residents derived from investments in North Dakota: the new bill imposes a tax only in case of income received by non-resi- dents from property located in the state or business carried on in the state and does not attempt to tax non- residents on income from any form of intangible property. The taxes imposed by the proposed new law are levicd only upon income derived from property located or business transact- ed in the state. The proposed act provides that income from personal services and land contracts, mort- gages, stocks, bonds and securities shall follow the residence of the re- cipients. | Oifset Is Removed. The personal property affset has teen done away with. This does away in part with the discrimination of the present law in regard to cor porations as compared with business- es of partnerships or individuals. Dividends received by an individual from a corporation paying a state in- come tax are exempt from taxation to the individual or another corporation receiving the same. Interest upon obligations of the state or political ‘sub-divisions of the state are exempt- ed. The income tax law at present does not exempt interest upon obli- Continued on page 3) ‘MRS WARREN S. HARDING G. Harding is wearing here is her Christmas present trom the presi- dent-elect. HOUSE ACTSTO REMOVE POWER’ OF GOVERNOR Would Not Permit Chief Execu- ° tive to Hire Special Assistant Attorney-General LEAGUER HIT IT The house, in its yesterday after- ioon session, advanced to third read- ing a bill of considerable importance, The measure would remove from the governor the power to name special assistant altorneys general and con- centrate the legal state fm the office of that official, The bill also provides for ihe, transfer of about $9,000 in the governor's fund to the attorney’ general's oftice for use in the state’s defense in the railroad rate and other cases. The measure came before the house CHANGES IN TAX SARSREAS SN GENERAL BOARD | — WANTS BUILDING ~ ATFULLSPEED Navy - Board Warns Against Any Check in Battleship Program 3TRONG NAVY NEEDED! | Airplanes and Submarines Have Not Supplanted Big Ship, Claim ’ | Washington, Feb. 3—The major! ship remaing the basis of sea power end those who argue that the aero-: plane and the submarine have taken} iis place are «asking the country to accept hope for accomplishment, the! navy general board says in its report | to Secretary Daniels today. The diamond brooch Mrs, Warren) business of the! on divided committee report, the ma-' jority of the appropriations committee favoring appro’ of the bill and the minority asking indefinite postpone- ment, Representative John Maddock, Nonpartisan, moved to substitute the minority report for the majority, the motion being lost 46 to 55, and on the motion which followed to approve the majority report the vote was 57 to 53, Representative Maddock (attacked the action of the majority of the ap- propriations committee, comprising the Independents, as an effort to camouflage the request of Attorney General ‘Lemke for funds to fight the railraad rate and other cases. He said the information furnished by the gov- ernor showed that part of this $9,000 was due attorneys end the remainder was to pay for counsel ‘engaged but not. paid. Chairman said the bill would take the money now in the governor's fund and give it to Mr. Lemke for immediate use and that any other necessities could be taken care of in the appropriation pill. He said he was anxious to see Mr, Lemke win the railroad rate case. Representative Walter Maddock said it would be a mistake to take Watt of the committee; away from the governor the power to, name assistant attorneys general, that the practice of giving the gover- nor some power in this respect was general, and that to vote for the trans- fer of the $9,000 would be to indicate lack of confidence in the veracity of the governor im his statement as to the condition of the fund. “The power of the attorney gen- cral’s ‘office was divided during the term of the former incumbent.” said Mr, Watt, “because of political dif- ferences. A practice has grown up to take power away from a man it he is dpposed to the majority of the legislature in politics. I am against that, and I am against centralizing too great power in the hands of the governor of this state, taking it away from the attorney general elected by the people. Don't forget that if you yote for this renort you are voting to decentralize this phase of govern- ment.” The house engaged in a long debate on the bill providing that one school district shall pay tuition for a pupll hat district if there is_no hie School in it, when the pupil attends a high school in another district. The maximum tuition would be $1.50 per week, The bill had not been acted upon when the house adojurned to hear Dr. Kane, Dr, Allen and Dr. Ladd SMAmons the new Dills introduced d fish bills, treated in were game an u : another story, and a pill appropriat- ing $12,000 and creating a state em- ployment service, HUNTERS WIN HOUSE VICTORY Chicken hunters will score a vic- tory in the house this afternoon when the report of the ghme and fish com- miftee is introduced. It amended the hilt fixing closed seasons for two years so as to shorten the present open season to 21 days from 31. ‘The bill fixes the season from Sept. 16 to Oct. 6. 4 The report says the general board, reiterates its belief in the battleships as forming the priticipal unit of the fleets. Without these the United) States could not cope with existing! naval powers, the report asserts. | The board said; there is no thought of instituting competitive shipbuild- ing and that no other nation can just- | ly take exception to our position. | The report was approved by Secre- tary Daniels, who transmitted it to the senate naval committee for it: information in considering disarma. ment resolutions, Asserting that the policy of the! board since 19°2 was that of eventu- ally creating a navy equal to the strongest in the world, the board urges no rest period and that,no disarma-; ment policy be agreéd to by the United States which would modify the great building ‘program of 1916, In the fature, as jn all times pre- vious to the world war, this nation probably will have to rely entirely upon its own powers, was a note of warning sounded, ’ Under the resolution the proposed conference would he held in Washing- ton but the calling of it would be left, to the discretion of the, president. This is the first definite action taken dy any congressional committee look- ing toward a*conference for disarma- ment. % matt The senate foreign affairs commit- tee has reported out Senator Bor resolution looking towards reduction of disarmament. | SENATE PASSES BILL TO ALLOW © WOMEN ON JURY Measure Goes Through Easily— Coal Mine Bill Goes Back to Committee STATE BANK SUBJECT) Women will have the right to serve on juries in North Dakota if the, ‘Liederbach bill, which passed the sen-| ate yesterday afternoon, meets with the same approval in the house. A similar bill has already, ‘been placed on general orders in the house, with recommendations to pass. The bill as amended makes it op- tional with women whether or not! they sit. ‘Senator Ployhar of Barnes, offered this amendment, There was! some objection, meinbers holding that) women should be responsible for .ser-| vice in the same degree as men. FAITH IN WOMEN, | Senator Ployhar said he had enough faith jn the women of the state to believe that they would not.try to evade their duty. Senator Baker ot Renville explained that this was only the first step and the bill could be me/e mo?3 stringent at the next ses-; sion if it was found’ advisable. i Senator Church’s ill, No. 81, creat-, ing a state mine to furnish coal for) state institutions, was referred back} to the state affairs commjttee to hold until the senate is ready to consider it. Resolution Up. | A concurrent resolution was intro- duced by Senators Storstad of Cass and Gardner of Nelson, instructing the director general of the state bank to pay $24,108,67 back into the gen- eral fund, This amount is the bal- ance which report of the industrial commission shows is available out of the profits of the state bank to be paid back out of the money advanced by the legislature for the starting of} the bank. It also directs that the monthly balance in this fund here- after shall be paid over to the gen- eral fund, The law making the ap- propriation to assist in the establish- ing of the bank states that it shall be paid back to the general fund’ as soon as the: profits are available. Only two bills were introduced yes- terday. WOULD INVITE WORLD NATIONS Washington, Feb. A resolution authorizing the president to invite the nations of the world to a‘ confer- ence to provide for disarmament was reported favorably today by the house foreign affairs committee. In Siam the white elephant is a royal animal and must be given all juxurjes due to royalty, \ | “There's no news in it. M. 0. HALL HER SEEKING AID FOR | ~ FARMERS OF STATE M. O. Hall, faunder of Mohall, N, D., who still retains property inter-| ests in North Dakota, is attending the session of the legislature in the in-} terests of pocunye relief for farmers} in Renville and 6ther counties. MORE KILLED IN RIOTS IN COUNTY CORK He has assisted in obtaining the| giy Meet Death Near Skibberea. passage of a resolution memorializ- ing congress forstederal aid to assist) farmers in seciping seed- wheat and necessary farm implements, Mr. Hall is piiblisher of a unique! directory of ‘North Dakotans whg are} residents of Saw. Diego, Cal, e is} ‘also president éf “the North Dakota, Society of San Die: DOWES SHOWERS COMMITTEE WITH PROFANE DELUGE Army Supply ‘General Attacks House Investigating Committee Wants Congressnien to Look In-. to Waste at Home Instead, of Abroad Washington, Feb. ~Turning to the members of the. house committee, ‘Charles Dowes, former head of army supply procurement service in France, told one of them today that the value of -their work had been rendered use- less through injection of partisan poli- tics, ‘ “f resent this effort to reflect upon the entire army because some poor devil plundered in Switzerland. You cannot put a blotch upon the army. What the h-- did we go in for; to steal. money? .It was not a Repub- lican or a Democratic wary. It was an American war, but yet as a rule the comittee tries to bring in partisan politics. ' Urges Work Here. “You could use, your time investi- gating right here, trying to save dis- graceful government waste. You could save more money for the peo- ple. But as for France, you haven't evidence enough to bring a cage if one existed.” ome ‘ . Representative ‘Flood (Virginia) told “him. him idea of the investiga- tion was to draw a lesson for the fu- ture and” if bad administration was, shown to say so, and if there was fraud or graft to find it and see that! the guilty are punished, = | Keep Politics Out. “Yes,” he replied, “but don’t let: this thing go before the people as a_ partisan fight, Everybody wants to} hear gomething bad about somebody | else. But I am not here to blacken! the character of a soldier who cannot come in to protect himself.” Asked about grafters who followed | the army into France, he said: “Yes, ' they were there; some of the most despicable characters on earth, try-! ing to sell the army things it needed | at exorbitant figures. Whats his | name?’ Oh, what’s the use? (He was | a traitor and | wish we could have! shot him,” $ Praises Men. i He praised the men in the army, and said now it is the fashion to con- | demn them, There were many women at the hearing, but this did not serve to hamper General Dowes any in the use of profanity. “Long after this committee is dead and gone,” he said, “the achievements of the American army will stand as an everlasting blaze’ of glory. You have tried to make a mountain out of a mole hill; but thank God the army was American, not Democratic or Re-' publican.” + Uses More Oaths, | Asserting that people were tired of war talk, General owes said: If it wasn't for my strutting around and swearing there would be no news in this.” General Dowes ripped out oaths as he scored the attempt in some quar- ters to criticise General Pershing. HOUSE REPORTS SUBSTITUTE FOR PACKING BILL Committee Recommends Placing Packers Under Dept. of Agriculture Washington. Feb. 3.—Favorable re-j port .was ordered today by the house | agricultural committee on a substi- tute plan for the senate bill provid-| ing for federal regulation of the meat packers. Under the substitute, control of the packing houses would be vested, in the department of agriculture and the stockyards would be under the interstate comme! commission. WEATHER REPORT, For twenty-four hours, ending noon Feb. 3 Temperature Highest ye: Lowest yester Lowest Precipitation Highest wind velocity . Forecast For North Dakota: tonight, colder west portion; partly cloudy and colder; shifting winds. Probably snow Friday strong ; Canada to Germany, according to Le- ‘and United States sailors were to in Clash With Police- men FOUR SHOT IN RIOT. Attacking Party Beat Off After: Stiff Engagement Near Dublin \ Skibberea, County Cork. Ireland. | Feb. 3.—Six members of a party s: to number several hundred we killed and several others wounded in) an attack upon a detachment of fif- teen police near here today; accord- ing to police reports. The attacking party was beaten off after a fierce fight, abandoning quantity of ammunition. The police suffered no casualtics. The attack was on an elaborate scale the accounts state. The Sil ‘einers. had as a base, house of Mas- istrate King, which they had com- maixleered the previous night and at- tacked from the surrounding ground. The police returned their fire and the battle waged until arrival of military and police reinforcements. KILL FOUR MEN, Dublin, Feb. 3—Four men are dead on account of a fight with the police near here yesterday. Two of the! wounded died late last night. Details have not been received, hut it is known that one of the lives was lost when a mine in a road was exploded Three cars of police were attackel last night, bombs being thrown at them. The police returned the fire and some of the attackers were wounded. PILOT KILLED WHEN AIRPLANE FALLS IN MINN. dent! Near Mendota—Samp- son Hurt Minneapolis, Feb. 3.—K. M. Stewarts pilot in the Minneapolis air mail ser- vice wag instantly killed today when the plane he was piloting fell three miles south of Mendota, according to information to the air mail service in Minneapolis. George Sampson, his mechanician is in a St. Paul hospital seriously hurt. He may recover. CALL OFF AIR RACE AROUND GLOBE CIRCLE I International Aeroplane Speed Contest Officially Post- poned New York, Feb. 3.—Plans of the Aero Club of America for an inter- national race around the world have -been abandoned, officials announced today. Failure to agree upon rules drawn up by French and American flying clubs was said to be one reason for abandoning the race, and another one given was that the race was im- practical with the present stage of progress in plane manufacture. WILL SEEK OUT SLACKER AID Indianapolis, Feb, 3.—The American Legion will take steps to seek out the man who is reported to have aided Grover Bergdoll to escape from gion headquarter here, TWO NATIONS CELEBRATE IN LIMA, PERU,S. A. American and Peruvian Sailors Celebrate in Southern Waters Lima, Peru, Feb, 3—-This city shared in the program of entertainment ar- yanged for the officers and crews of the warships making up the Atlantic fleet, During the afternoon Peruvian compete in sporting events. A large number of American sailors attended a bull fight here at the fair grounds yesterday afternoon, Cypress and walnut, when used in contact, cause each other to rot, PROBERS TAKE UP THE BANK OF NORTH D :Home Town Advertises: . | Marion, Ohio, js out to cash in on the fame the election of Harding here is a “sticker” which the business men and citizens are using on their letters to advertise Marion. The let- ters and border are in red. HIGH SCHOOL BOY MISSING FROM HOME Mystery Surrounds Disappear- ance of Harold Svensgaard, Sixteen ORDERED GROCERIES Never Returned for Supplies He Had Bought for Mother Harold Svensgaard, sixteen-year- old brother of Arnold Svensgaard, Northern Pacific ticket agent, has been missing since Tuesday evening and no clue to his whereabouts has yet been found. (iets Groceries. The boy went to the postoffice di- rect from school at 4 o'clock and was given the mail at the general delivery, jvindow..-He ordered gro- ceries for his mother at Mandigo’s store and left the groceries while he went to Bertsch’s garage for a small can of gasoline. He secured the gas- oline but did not return for the gro- ceries. He has not heen seen since. Harold is one of the most studious boys in high school, cares nothing about outside amusements, and had the happiest of home life where he lives with his widowed mother, «a young sister also in high school, and his older brother Arnold. .He had no ambitions to leave school and do oth- er things, and inqury has been care- fully made at all hospitals in case of accident. Came from Bowdon, The family has recently moved to Bismarck from Bowdon, where the mother had heen postmistress for some years. They occupy their new home built by the State Home Build. ers association on North Fifth street. WILL LOAN TO GROUP OF BANKS 3 Washington, Feb. Prelitdinary approval of a loan of $10,000,000 to a group of American hanks to finance sale of condensed milk and other products to Europe, was announced today by the war finance corporation, the first loan authorized since it was reformed. SERVE PAPERS ON STATE BANK FOR SARGENT County Starts Action to Recover Funds on Deposit With Cathro Papers have ben served on the state bank by the Burleigh county sheriff's office in the action brought by Sar- gent county to recover funds on de- posit. Through its states attorney, S. A Sweetland, Sargent county seeks to force the state bank to pay back to the county current funds amounting to $75,000, and sinking funds amount- ing to $48,000. Mr. Sweetland has announced that Sargent county will garnishee all de- posits of the state bank in Sargent county bank |SENTENCE MEN TO CAL. PRISON Los Angeles, Calif., Feb. 3.—Arthur and Floyd Carr, cousins and con- fessed kidnapers of Mrs. Gladys With- sentenced to 10 joniment. e were today years to life impr REFUSE TO CUT OFFICERS Washington, Fel -The house to- day voted down 86 to 29, an amend- ment to the army appropriation bill proposing reduction of officers from 14,000 to 8,500, AKOTA CAPITALSTOGK ~ AND BOND LOAN ~— INQUIRED INTO Attorneys Ask What Law Au- * thorizes Bank to Hypothe- cate Capital Stock Bonds |RECORDS ARE) PRODUCED :Omission Offers Access to In- stitutions—Lemke Assails Committee Course aid brought to the little city. Reproduced’ The house investigation of industries got fairly under way today. Records of the Industrial ‘Comnission, over which there was argument yesterday, were produced. The commission, at. a meeting, however, made the ‘reservation that the particular records desired must be asked |for and remain in the hands of ‘the officer who produces them, and that officer-must gain per- | mission to produce the particu- ‘lar records. | Rules of the committee were amended to cover the refusal of any officer to produce records. They previously had related to oral testimony of individuals. Unless information desired for ‘by the committee is given, un- der the rules, contempt. pro- ceedings may he instituted. H. W. Paddock, secretary of the Industrial Commission, and F. W- Cathro, director-general of the Bank of North Dakota, were on the stand during the morning. Paddock de- clared when he took the stand that the notice served on him to bring to the attention of the committee was not the notice that he had understood j.the committee ,sanction, that it was presented as, the unanimous will of | the committee and that one member cf ; the committee had never seen it. He asked that the original motion of the committee be read. The committee noted five to four against it. At- torney-General Lemke, after t hearing, declared he had no confi- dence in a committee which falsifies the records.” During the examination Mr, Pad- dock minutes of the Industrial Com- mission relating to the organization were read, and the examination of Mr. Cathro was only fairly well be- gun. He was called to appear to- morrow, Lemke Appears Again. When Mr. Cathro went on, the stan‘ | Mr. Lemke said he desired to enter appearance as attorney for the state and for Mr. Cathro. Mr. Cathro gave i his residence as Bottineau, N. D. + He was asked to name department- jal heads. He gave them as L. P. McAneney, credits department direct- or; A, Johannsen, audits department | director, and said the bank had no ‘head of the farm loan department or ‘bond department at the present time, ,or of the statistics and publicity de- | partment. W. H. McIntosh, formerly associat- |ed with Mr. Cathro in the First Na- tional bank of Bottineau, was man- ager of the loan department as he: of the farm loan department untii Jan, 1, 1921, Mr. Cathro said. = Mr. ‘Cathro said he acted as head of the publicity department, with W. G. Roy- lance in charge of statistics. Wants Trial Balance, Francis Murphy, committee coun- sel, asked that Mr. Cathro bring with him later the daily trial balance of the bank as of Dec. 3, 1920, the date of the examination by Bishop, Brissman and company, of Feb. 1, 1921, and of April 1, 1920. On suggestion of Mr. | Lemke, Mr. Cathro said that he would do so, if the Industrial Commission permitted him. Mr. Murphy plunged immediately into the question of the : bank’s capital. i Opens Without Capital, “When the bank opened July 28, 1919, what was its capital stock?” asked Mr. Murphy. “It had no capital,” Mr. Cathro re- plied. The bank acquired capital, “in cash or equivalent,” between that time and two or three weeks later, the witness id. “What do you lent?” “It was a check from myself as di- rector general of the Bank of North (Continued on page 3) REFUSES TO. _ POST REPORTS Chicago, Feb. 3.—Posting of Argen- tine trade quotations was discontinued on order of the president of the Chi- mean by equiva- cago grain exchange, who held they do nofMintelligently show supply and demand, PRINTERS MEET AT ST. LOUIS o* St. Louis, Feb. Employers commercial and job printers of t middle west met here today to dis: methods of combating demands of -union printers for 44 instead 6f 43 hours a week.