The Bismarck Tribune Newspaper, February 10, 1921, Page 1

The Weather ‘FAIR AND WARMER THIRTY-NINTH YEAR THE BIS BISMARCK, NORTH DAKOT, TRIBUNI , THURSDAY, FEB. 10, 1921 Last Edition PRICE FIVE CENTS BANK OF NORTH DAKOTA CAN’T PAY BILLS; STATE BOND DEPARTMENT LAYS DOWN RULE; - TOWNLEY COMES BACK FOR CONFERENCES GOLDEN VALLEY START STARTS ACTION AGAINST STATE BANK; TREASURER SAYS STATE BALANCE IS AMPLE Head of Bank of North Dakota Says Situation Due to Inability to Get Redeposits; Townley Believed to Be Starting Confer- ences Looking to New Policy Hunting “a Way Out” out of Difficulties; Condition May Be Short-Lived, or May Contnue | for Indefinite Period; New Legislation not Improbable The Bank of North Dakota is unable to pay current bills. Whether this condition will obtain long sequent developments. A it is now theré.are probably $200,000. of drafts held by Minneapolis banks for ¢ollection from tie Bank of North Da- kota for which there are no funds to pay. The situation which. has obtained for several days came officially to light today in the hearing before the house inyesti- gating committee, and was amplied by F. W. Cathro, in con- yersation, z Coincident with this development came a dispatch to The | Tribune from Beach, North Dakota, that Golden Valley county had garnisheed all deposits of the in the Bank of North Dakota their bonds will be cancelled. Seeking “A Way Out” A, C. Townley, head of the National Nonpartisan League, came back to Bismarck on a noen train. His coming was pre- ceded by reports that a prominent banker in the state had been called to. Bismarck to confer on the situation. several members of the legislature to tind “a way out” of the financial situation are expected. to become the subject of con- ferences, What Bark Faces The situation with regard to the. Bank of North Dakota, as viewed by Mr. Cathro himself, is that if the country banks transfer money to the Bank of North Dakota as ordered, the bills | of the state and political sub-divisions will be paid; if not, the bank is “up against it”. Calls have been made on these country banks and they have not responded. - The situation, in.the eyes of critics of the bank, is the natur- al result of planting state funds in state industries, etc., where they are now. The State Treasurer says that there are ample funds in the treasury, if they can be gotten ont of the Bank of North | Dakota. Mr. Cathro’s ‘Explanation. There were only brief questions! asked of Mr. Cathro in the house hear- ‘ ing today as to the Bank of North Da- kota being unable to pay its bills. In conversation with a reporter Mr. MEET DEATH IN Cathro said that this situation existed. | Another United States Mail Ser- Withdrawals from county banks were ordered last night and early today,! vice Machine Crashes to Ground he said. They are ordered to transfer money into Minneapolis reserve banks and have not done so. The practice is for ay official to give a state check or warrant,/he sends it to a bank an) this bank sends it to the Bank. of North Dakota. The Bank of North Dakota sends the warrant to its Min- neapolis reserve, banks. The reserves there have pot been built up by rede- posits from the country ‘banks, It is said that over $120,000 of drafts issued | py the Bank of North Dakota have been unpaid in Minueapolis since last Friday. Tf the country banks meet the with- drawals, he said, the Bank of North Dakota will pay. If they do not the hank will still be unable to pay, un- léss money obtained through a loan PREUS MAY INVESTIGATE | Carroll, One of Victims, Was Intending to Quit This Month depends upon sub- | tank of North Dakota, and, that the state bonding department had served notice on the | county auditor and treasurer-that unless deposits are renewed | The efforts of | or sale of bonds. Minneapolis, Feb. 10.—Pilot Lewis _: | (N.E. A. Staff Special) ! Atlanta, ,Ga., Feb. 10. ‘How did | you manage to deceive ur hus- band?” That's tite would like to have outh answer. ne ghe fooled her husband, a Bracery Eas into believing that 14° ¢hil- dren whom she had taken into their home in 14 years were her own, The; truth that she had adopted them | came out only after she announced! at 52 that she had given birth to New, Year triplets. “That's my business,” said Mrs.| South, when the question was put, | pointblarik to her, “but I managed it all right.” | “T don’t yet see how she put it ove! question | everybody Mrs. F, B.A. on me,” “says the mystified South,/ who has ordered his wife to give up ‘the triplets, although he has agreedi to keep six other -children.. Tw adopted babies died. “I rather marvel at Mrs. South’s| success in deceiving her husband,” tsays Mrs. M. T. Mitchell, superin-| tendent of the maternity hospital’ ‘from which .Mrs. South adopted the | youngsters. The triplets were not related, but were born about the same time. | Other Instances, But Mrs. South is not the dply in | “MOTHER” Cr 11 WON’T TELL HOW SHE WORKED HOAX Mr. and Mrs. F. ALS outh Jearming that his vy uth, the Triplets that resulted in! ‘e had deceived him into believing) | Interest on Bonds Inquired Denied Records on Mill i today. North Dakota } porters through de’ as the corner-stone. thei y ‘answer’ of the Nonpartisans is state guaranty act. Michigan, a si ‘vediscounted by the Bank of Nor of face value. The security was ¢ ‘signed by MT. Stary, who i nished the Nonpartisan Ic LABOR BOARD -DENTES REQUEST: OF RAILROADS “Federal Body Refuses Consent | to Abrogation of Wage | Agreements | RAPID ACTION SURPRISE | Representative of Workers Had Not Yet Presented State- =| ment Chicago, Feb. 10—The federal rail- road labor board today denied the re-' quests of the American Association | stance of this kind, according to Mrs. that 11 children were their own, and three other children of the, of Railway Executives for the im-| | Mitchell. Says she: “T,am pfetty sure there are other | cases in which’ a woman has tgken | a baby from this hospital and passed | it off as her own, keeping the secret | even from her husband. “In many other cases only the hus | band and wife know that the baby is adopted. Their friends are never told of the circumstances of the; baby’s birth.” Mrs. Mitchell explains that women | come to Atlanta from distant cities. They tell neighbors that they will he!| gone several months. | Husband goes after the wife and when they return with a new baby, the community accepts the baby as/ the couple’s own. Carroll, one of the three air mail men “Mrs. South made a mistake,” says Explains Bond Rule. > Harold Hopton, manager of the state bonding department, confirmed the Beach report that his department had laid down a rule to all public treas- urers that unless they deposit money in the Bank of North Dakota the bond department will cancel their bonds. This action, he said, was taken be- cause the bond department's investi- gation of the law has led it to the con- clusion that there now is no law un- der which public officials who are cus-, todians of funds have any right to ap+; point a public depositary. Thus, he said, if the treasurers! do. not deposit money in the Bank of North Dakota they: are depositing it on their own se- sponsibility, and the bond department will not-accept the responsibility of peing liaple on their bonds, He said the initiated law that re- pealed the compulsory requirement of depositing in the Bank of North Da- kota did not provide for the naming | of depositaries by treasurers. | There are some who look upon the pond ‘department's action as a nat-/ ural compliment of the Industrial) Commission's effort to cause treasur- ers to continue depositing publ money in the Bank of North Dakola. Would Compare Elements. The reappearance of Townley on} the scene here today led to the be-| lief that he would make an effort to compose the views of members of his own organization. them, incfuding Governor and Attorney-General Lemke, and at least two leading senators, are out-/ spoken in their stands against any| liquidation of the Bank of North D: kota, any acceptance of the banke: compromise plan under which they would undertake the. sale of bonds | or any compromise whatever, as Mr. Townley has advised. However, there are some league | members of the legislature, as that | Some of! Fragzjer | { as Independents, who believe that ‘ <Centinued on page 3) killed late -yesterday in the crash of their plane at LaCrosse, Wis., planned to quit the service his month as his mother was getting old and he did not want her to be worried. This state- ment was made today by a brother before he left for LaCrosse to get the body, which was reported badly burn- ed when fire followed the explosion. The machine dived, crumbling to the earth from height of 60u feet. May Investigate. Feb. 10.—The explosion of the United States mail' airplane which resulted in death of Carroll, Arthur Rowe and Robert Hill, may be inves- St. Paul, tigated by a. Minnesota commitfee, | , Governor Preus intimated this morn- ing. Rumor that the type of plane | now used is hazardous led the gover- . nor to confer with Colonel William Garrs. with a view to learn if safety | measures had been exercised, Colonel Garris intends io make an investigation to determine to see if it ; would have been possible to get bet- ter planes. Chicago, Feb. 10, 19,—Officials of the air mail service at the Chicago head office today were confronted with prob- Jem of overcoming fatal defects in all- metal machines as a result of tragic, wreck at LaCrosse last night. The tragedy attributed to the machine number seven within the two months ; the metal monoplane has been in the service. The plane at LgCrosse was the sixth to clash. | HOUSE HEARS CHARGE BY ATTY. Washington, “Feb. 10 10.—The depart- ment of justice knéw as early as last | October that Grover Cleveland Berg-| Jamaica Bay, which furnishes doll. wealthy draft evader, had es- caped to Germany, the house investi- gation committee was told today by the district attorney of Philadelphia. Mra, Mitchell, “when she gave so | much publicity to the ‘birth’ of the; triplets. “I would have kept her secret for- ever. / | “However, I must keep my hospital records straight and I am obliged to tell the truth when an investigation is’ started.” “y Differences Past. Mrs. South and her hushand have; made up their differences following the discovery of her deception. “Having\to work for the childrer made my husband a better man,” says Mrs. South. “She’s always heen a good wife— and mother, too,” says South. “And we love our daddy and our mamma; they’re always good to us,” ‘chorus the children. BELGIANS AND GERMANS MIX London, Feb. ;. 10.—Serious fighting between the German population and the Belgium troops at Aix la Chap- pele is reported in an Exchange tel- egram from Amsterdam today. REFUSES TO FURNISH FACTS Washington, Feb. 10.—Secretary Colby refused today to transmit to] | the senate foreign affairs committee ‘negotiations being made with Japan j to meet the situation developed from the adoption by California of the an- ti-alien land act. OYSTER BEDS CLOSED. New York, Feb. 10.—Oysters from New York with 300,000 bushels of them | annually, have been banned. Healtn officials say sewage has pollutefi the [vitere of the bay- ‘South family. SENATE WANTS LARGE NAVY Washington, “Feb. . 10.—The senate |naval committee reported to the sen-, ‘ate in favor of an American navy at, | least equal to that of any other pow-| er and voted down the Borah naval holiday resolution. DENY BREAKING ‘WITH TOWNLEY Frazier and Lemke, Say That They Are Working To- gether Governor and = William ‘Lemke declare that they have not come ‘to a’ parting of the ways with! A. C, Townley. “There is not the siightest friction nd talk of impending break between Mr. Townley and Mr. Lemke is ridicu- lous,’ said Governor. Wrazier, “Mr. Townley. is, as always, the greatest friend of the farmer, the worker, said ‘Mr. Lemke, “Ll consider his ,prin- ciples. of co-operation and industrial democracy the greatest in the world and I'am working in closest harmony wits Mr. Townley.” paders of the league do not deny iad ey had discussed the question of liquidating the Bank of \North Da- kota with Townley, and it is known that Townley is ready to liquidate the Bank of North Dakota or make any other ictions necessary to save the milling stries, which he thinks more important than the Bank of orth Dakota. Townley advised liquidation of the bank. NORTONVILLE BANK OPENS The Nortonville State bank, one of the banks closed in North Dakota sometime ago, has reopened, according | eceived at the office) to information of State aminer Lofthus. The Cogswell bank which closed also is expected to reopen immediate- ly, with capital stock increased from $25,000 to 340.000, If this bank re- opens it will be the third in the state to reopen. MAKING REFU ND. The decision came before Mr. Jew- jel president of the railway employ-| | mediate abrogation of the wage! agreement with the brotherhood andj for ‘the establishment of a new rate! rate predicted on local conditions. i | ees department of the American Fed-| jeration of Labor had given his reply | ‘to the statement made for the rai!-; ys executives by W. W. Atterburg | | wa; ie the Pennsylvania road. - | Action Unexpected. | It was totally unexpected. Mr. | sewet! made his statement neverthe-| Rebate of 18. Mills Being Paid | tess. | An abstract of it follows as Result of Court De- | A conspiracy on the part of railway : not. cision executives to destroy the organization | of railway workers and re-establish ent ! autocratic control of the transporta- Refunds on taxes are being mailed | tion industry, was charged by him.| to Bismarck.taxpayers from the office | Charges Frame-up. of T, E. Flaherty, county auditor. | They are accompanied by the ex-| Mr. Jewell also charged, the. rail-| planation that “the tax levy of 1919} Toad executives with framing up oi, was held excessive by the supreme’ eVidence and declared a fair consid-| court, the city tax was reduced $13,-; eration of the present cases could | 500 and as a result afl persons having | not be made until the motives back paid 1919 taxes prior to 'Nov. 1, 1920,| of the request had been- fully reveal-' are entitled to a refund of 1.8 mills | ed both to the board and to the pub-| on the valuation of their property.” | lic. The refunds are being sent direct} He asserted that last week's state- to taxpayers, and the work will be! ment to the board by W. W. Atter-| and the Nonpartisan league,” , Gov. Frazier denied: : A membership campaign is being |. completed shortly, so that noone need | bury, was designed to stampede the | ‘apply personally for the rebate. WHEAT GROWERS ORGANIZE LOCALS GOLDEN VALLEY Wilson Announces Meetings in County on ‘Montana Border { put on in Golden Valley county this week by the National Wheat Growers tion. arge. {is in ¢ day and at Beach Saturday, both at 1:30 p. m. A county organizat‘on will be formed at Beach. At the other towns local organizations are being organ- ized. Meetings were held earlier in the week at Golva, Charma, Sentinel Butte and Demor Fifty years ago, (00,000 paper collars were consumed annually in the United States, ‘protection which this board affords to J. M. Wilson, organizer, | Meetings will be held at Rider Fri- is board into a decision which mature, consideration would make impossible. He said that Mr. Atterbury wanted to re-establish an autocracy from which the war had freed the nation’ and that by taking advantage of the’ courtesy ‘and confidence of the board} he hoped to discredit the govern-; ment. “We hardly.need point out to you, | Mr. Chairman,” he said, “that the, railroads having used your wage de-j cision as a lever to get the highest freight and passenger rate ever 4 corded is anxious to get rid of the the employees of the railroads. IRISH TROOPS START MARCH London, Feb. An Irish repub- lican army several hundred strong hing toward Sibberen, county according to report, says 2 Ceneral News Dispatch. The Sein Fieners upon arriving drove pedestrians from the street and then fired several volleys. The few policeman on duty paid no attention. The Sein Feiners withdrew and de- clared their intention of returning to- night. Tame snakes are used in Morocco to clear houses of rats and mice. | EXPLORE “LEAGUE PAPER” SAID- _ IN BANK OF NORTH DAKOTA IN PROBING BODY INQUIRY TODAY ‘Over $27,000 Worth of Automobile Paper in Bank Through Re- discounts—Cathro Tells of Inability to Meet Payments—Rec- ords on Farm Loans Called for and Method ,of Paying Into—Accountant Says He was The house probing committee delved into “league paper” | "The evident purpose is to show, if possible, that the Bank of as financed league enterprises and league sup- ous witys, with the Bank of North Dakota One case regarded by members of the committee as being significant was that of $27,800 of automobile notes that found yay into the Rank of North Dakota; went into the disproporti: onate deposits in some banks, showing them far beyond capital stock and surplus of the banks. The probers also The that the banks are under the Read Automobile Notes They were notes taken from the ul bank, from the Conwa Michigan City Bank: of y Storage company, and th Dakota, being in the bank as storage receipts on automobiles said to be the man who first fur- organizers with automobiles. They include: Note for $5,600, ‘dated Jan. 18, 1920 and due Sept. 18, 1920, carried by the Bank of ; North Dakota ag rediscounts, but car- ‘ried at face value, for which storage ceipt covering four Buick automo- biles was given. Another was for | $5,600, coyered by storage receipts on four Nash automobiles; another at $4,500 with storage receipts on five Overland automobiles, another $4,200 + with storage receipts on five’ Chevro- Jet ‘automobiles; another for $7,000 secured by storage receipts on five ; Wallace tractors; another for - $900 ) covered by storage receipts on seven | Ford automobiles valued at $4,900. “Did you ever hear of seven Fords valued at $4,900 in loans?” asked At- | torney Murphy of the witness, E. G. Lee, of Bishop, Brissman and com pany, who read from the company’s audit of the Bank of North Dakota. Mr. Murphy directed’ the attention of the witness to collateral receivc-l , from the First State Bank of Kloten into the Bank of North Dakota io: ,; 4loan. There was'a note of $1.31i signed by R. W. Fraser, S. S. Scr ingson and Gottfried Jensen. witness was unable to identity, the men, Another note put up as collateral was for $2,625 signed by. Judge Geo. H. Moellring and H. A. Nelson, and another for $2,415. Another note from the First Farmers hank of Mi- not showed H. R. Wood. as collateral, A demand note from the Citizens State bank of Grano for $1,200 signed by Gilbert Semingson*° was shown. Asks Identity. “Do you know that he is the chief deputy bank examiner at this time?” Mr. Murphy asked. The witness di:! It is expected that the invbstigatin: along this line will continue, it being the evident purpose of the commit- tee counsel to endeavor to completc- ly refute the statements that n> “lengue paper” was in the Bank »f North Dakota. During F. W. Cathro’s short perio: on the stand Mr. Murphy asked: Diffleulty in Payments. “Is it not a fact that the Bank of North Dakota in the jast week or ten days has not been able to pay its current items?” | Mr. Cathro said: “The bank hasn’t been able to get money in fast enough to take care of them.” “Do you know of one item of $120,- 000 in the city of Bismarck?” “No, I’ve heard of a $95,000 draft on Minneapolis.” Call for Court Records. J. H, Newton, clerk of the supreme court, was ‘called to produce records of the Scandinavian-American bank case, and counsel for the committee announced that they desired to make comparisons with them. E. G. Lee, the first witness, who is one of the chief accountants of Bishop, Brissman and company, was the first witness on the stand. He showed total liabilities through loans and redeposits of closed banks as of Dec. 3 to the Bank of ‘North Dakota of $680,711.89 against an offset of $32,317.30, against which there was an offset of accounts in the Bank of North Dakota of $32,317.30. Since that time Other banks have closed. Ed. Sinkler, acting as counsel for the administration, in private con- yersation with attorneys, wanted to show that Minneapolis banks hl money in these closed hanks. It is the administration’s defense tt other banks also were “stung” by the closing of banks. The position f committee counsel is that these cx! side banks were not handling public funds, and that the committee fs con- rned wholly with the Bank of Novth Dakota, and that the Bank of North (Continued on Page 3.)