The Bismarck Tribune Newspaper, February 11, 1921, Page 1

: The Weather FAIR HE BISMARCK TRIBUNE ==] THIRTY-NINTH YEAR BISMARCK, NORTH DAKOTA, _ FRIDAY, FEBRUARY 11, 1921 "PRICE FIVE CENTS mit ’ “BAD PAPER FOUND IN B DRASTIC MEASURES ARE TAKEN TO PESMONEY IN STATE BANK; CRISIS IN AFFAIRS REACHED Agents to Be Sent to Country Redeposits to Bank of North Dakota—Checks to Be Regis- tered at Six Per Cent—New Restrictions Placed Upon With- drawals by Treasurers—Country Banks Must Pay or Close— Talk of Recall Election Rife BOY OF 14 IS FA CAN HE HA Banks to Demand Payments of Conference and debate among state administration leaders over) the policy of the Bank of North Dakota apparently ended today—) the policy is that the Bank of North Dakota must be saved. A drastic resolution was promulgated by the Industrial Commi sion. Suggestions. of. liquidation of the bank have been definitely | rejected, at ‘ | The ultimatum has been given that country banks must put! money in the Bank of North Dakota. If they do not do so it is up| to the state examiner-to take what action he sees fit—this, it is pre- dicted, means the cloging of a large number of country banks. Bankers who; heard of the action of the commission declared that it was.a choice between the Bank of North Dakota and the country banks, and the Bank of North Dakota is slated to survive! if possible. ‘ i ‘ The decision follows conferences which, have continued over several days. The resolution was framed after A. C. Townley re- turned to the city. was, however, in conference with Many political leaders freely predicted that the results of the| crisis will be a recall election in the spring. i} | The decision of the Industrial Com- mission substantially is as follow: 1. The management of the bank is authorized to send agents out to com-/| pel depository banks to meet their obligations to the Bank of North Da- kota. : y 2. Until the Bank of North Dakota gets funds from collection, checks will be registered as follows: ‘a. Checks of state treasurers for hail warrants. gene | b. Checks of state treasurer issued to counties, townships and cities. c. All other state treasurers checks, except for penal, chari- table and educational institu- tions. F d. Township treasurers checks. ~ e. Allcounty treasurers checks ‘excépt: those’ of counties ‘ which are depositing all their incoming funds with the Bank of North Dakota, it being understood that the bank shall continue to honor checks of school treasurers, checks of state penal, charitable and educational institutions and checks of those county treasurers who are depositing -all: of” ‘their incoming funds with thé Bank of North Dakota. ‘ Can Call Checks. 3. The bank is authorized to call such checks so registered -for pay- ment in the order of their registry as fast as they can be met, and te pay 6 percent interest on them. 4. The board of administration is asked to request the management of the state penal. charitable and edu- cational institutions to keep checks issued to the lowest possible point. The resolution, it was stated w: in tentative form as to phraseology. and will not be made public in it entirety until the phraseology is defi- nitely determined. Townley’s attitude was not made known. "GRIS SETBACK He many of the league leaders. | ARMISTICE DAY — HOLIDAY BILL (Senate Majority Opposes Meas- ure as Suggested by Amer- | ican Legion | | | | i | | GOES TO CONFERENCE! Bonus Bill Advanced — House! Passes Measure Aimed at The I. W. W. | The question of making Armistice! Day, (Nov. ‘11, a legal holiday in North Indiana history. Dakota still is before the legislature! The question ogitating the state is: today. | “Can ‘Cecil Burkett be given a fair The senate late yesterday refused to| trial?” accede to the proposal made in house! ‘For the law gives a prisoner the bill No. 28, introduced by American | right of trial by a jury of his peers. - Legion members. Instead, the senate) Strictly ‘interpreted, that would | passed the ‘bill with an amendment | mean trial by boys of his own age. | providing that the Memorial Day, May} But the same law requires that jur- 30, be recognized also as an occasion | ors be adults. in memory of veterans of the World; Dr, Harold N. Moyer, former com- War. , missioner of health for Chicago and | The vote was 35 to 14, and several} a leading alienist of the middle west, \of the 14 who opposed the bill said/ has examined Cecil for the Bismarck! ithey did so because they ob-| Tribune. jected to the amendment, «nd want-) Dr. Moyer is 62, a kindly, shrewd ed the bill passed as :t passed the) old man with the experience of many house, Senator Fraser said he in-| years spent in jails and prisons, courts tended to move to reconsider the vote,| and madhouses, studying the deficient, (N. E. A, Staff Special.) Ora, Ind., Feb. i1——-An eleven-year- old boy goes from Ora to trial for first degree murder next month, If convicted he faces death by hang- ing. The caso is without a parallel: in (but would instead iet the bill go tv a! the insane—all the twists and turns leonference committee, and make a:| of human brains, young and old: ACCUSED OF MURDER Law Says “Yes,” But Science Says “N Youngster; What Do You Think? | effort to have the senate amendment’ The minutes of the meeting cite; stricken out. An effort by Senator Mc- that Mr. Lemke moved, seconded be | Nair to put on the “clincher” failed. He spent four hours examining pe Mr. Hagan, that the management 0} the Bank of North Dakota’ be direc! ed. to send agents to compel deposi- tory banks to meet their obligations to the Bank of North ‘Dakota and that such action be rapidly forced. Hagan Introduces. Mr. Hagan introduced the resolu- tion. It said that ‘the vast majority of deposits: made with the Bank of North Dakota by public treasurers were remitted in the shape of checks drawn upon private banks throughout the state and such banks were un- able to pay the checks and the Bank of North Dakota, to relieve distress: deposited the money with these banks. Since that time many of those banks never have been able to pay the Bank. of North Dakota, the res- olution says, and continues to sav that the Bank of North Dakota has endeavored to be as lenient as pos- fible: Private banking institutions have charged that the Bank of North Dakota’ was embarrassed and in fin- ancial stringencies when, as a matter of fact, the resolution says, the only difficulty ig the inability to the banks to pay to the Bank of North Dakota. It says the press is trying to conceal the fact that the financial stringency is due to the failure of private banks to pay the state bank. “Decision Necessary.” The final decision of the Industl-ial Commission was held inevitable by administration leaders. It was de- plored by some who had hoped that there would be a compromise to per- mit a readjustment of laws governing the finances in the state. to permit outside money to be brought in the state. By others it was declared to mean a culmination of all discussions regarding the fiscal policy of the state. and that it is intolerable, wiil Solons Ask Explanation of Ar-: ticles Appearing in Paper | bring great and unnecessary hard- the ship on country banks and patrons and can mean only a recall election to decide the issue. One banker declared that no sound bank would close—that the banks that would have to close would be ones which ought to have been closed ire years ago by the state exam- iner. | cil, weighing not legal’ evidence, but ‘Many senators expres3ad themselves| poy—all his life from the cradle and on the measure. Senator Porter, oren-! the lives of his parents’ and grand- ts. led the bill as the American Legion! He put him through the Stanford, desired it, making Nov. 11 a legal hol-| revision of the Binet-Simon test, by | which ibe ascertained. He found him to be | Youngster Can Be Accorded { | plot? ‘The majority of the house of ‘rep-; AME TONIGHT resentatives want ‘it understood they | This. was given as the reason why! the majority voted to summon C. K./ alfyon, Bismarck Center, 1s Out Fargo Courier-News, to the bar of the) house to explain just what was meant) bankers try to “buy” farmer legisla-/ Bismarck and Mandan high schools tors. | meet at basketball at Mandan tonight merson before the bar of the honse/ Bismarck, defeated in the’ first game. was offered by Representative John-!is out for a big victory in this game. of 57 to 49. ling Bismarck at 6:45 p. m. and re- ‘After two hours of word duelling| turning, leaving Mandan about 11 sans, the matter was deferred until’ high school students and enthusiastic 3 o'clock this afternoon and Mr, Gum-| Bismarckians of all ages are expected time. ‘root for the local team. Mr. Gummerson, who was report-; Preparations are made in Mandan by the sergeant-at-arms. asked that a basketball game. The officials se- he be permitted to consult with cou but the attorney he wished in house with him was engaged in a that the proposal was to lay the matter over one day. might ask that other correspondents be brought before the house to ex- the brain of the boy, the soul of the iz the discussion. said “vat he favor-| parents. | (Continued on Page Seven) ! his mental developnient could i \T normal, without inborn traits of mean- N W; ‘ness, cruelty or criminality. | Law and Science Clash in Whether Could this boy conceive a murder can't be bought. Gummerson, correspondent for the| of Game when the article sent emissaries of | The resolution to bring Mr. Gum-!in their second game of the season. son, of Ward. It carried by a vote! There will be a special train leav- between Independents and Nonpartt- o'clock Bismarck time. Four hundred merson was to be present at that, to go over the river on the train to ing a senate hearing when he was for the biggest crowd of the year at sel. senate hearing, and it was after this League members indicated they plain articles. n-! lected for the game are Morgan and This permission was granted.| Murphy, both of whom have officiat- jed before and given utmost satisfac- tion. | The hopes of the local high school students“ were dimmed somewhat when Alfson, star center, suffered illness this week. He had a high fever all day yesterday and was het- CING GALLOWS: VE FAIR TRIAL? 4 cect | BURKETTY ” In Case of Indiana Could’ “he” plot fe enge against a playmate, entice him within runge of his rifle, and then shoot: and kill him in cold blood? ‘Could he then invent a complicated lie and stick to it against’ the most skilled cross-examination? ‘ These are the questions that a “jury of his peers” must answer in the case of Cecil Burkett. ‘This jury must decide whether he must die on the gallows or only spend the rest of his life in prison. Whatever. the verdict, will it be! fair? The law says “Yes;” science—i represented by Dr. ‘Moyer—says “No, - “By all their lives and training says Dr. Moyer, “12.adult jurors will} be unable to understand this boy's mental processes, his motives and his acts. i “Science itself can’t discover the key to these things,” | ‘The Burkett murder~case has the additional element of mystery. Cecil is at his home here under $10,000 bail for the first degree, mur-| der of Bennie Slavin, the seven-year- old son of a neighbor of the Burk.t family. Allowing bail was’a special) dispensation. i It’s a real child murder mystery, be- cause the dead boy, the accused lad; and the principal witnesses all are! children. The killing of red last Thanksgiving. I generally accepted in the village of! Ora as an accidental shooting untjl the grand jury the other day indigted Bennie Slavin occur-| It had been} Cecil, y Here are two accowits of the kill-/ ing, as they will be told to the jury. (Continued on page 2) é | ee ee WEATHER REPORT | | ‘For twenty-four hours ending at noon Feb. 11. ax Temperature at 7 A. M. Highest yesterday - iLowest yesterday - ‘Lowest last nigh Precipitation ... Hikhest wind velocity Foreca (For North Dakota and Saturday; somewhat colder to-} FARM BUREAU MEETINGS HELD | IN EMMONS 60. ,Linton, Feb. 11.—The result of sev- en of the eighteen meetings held so far in Emmons county in the inter-| est cf the Farm Bureau Federation indicates that this county will also enroll a large membership. | Ed. DeLancey of Valley City, and) County Agent H- O. Sauer are con-| ducting three meetings a day. They are having large audiences and deep interest is being taken in the discus- sions. Following the speaking campaign a drive will be put on in each of the townships for members. The solicit- | ° ter today but will not be able to play in the game tonight. ors will be county men. : WOULD HAVE COMMISSION IN AN ADVERTISING EFFORT IN STATE Full page advertisements are being carried In many newspap- ers in the state today by the In- dustrial Commission, placed through a St. Paul advertising agency, These advertisements were sent to many Independent papers as well as Nonpartisan papers, ace cording to members of the com mission, and, ‘according to word recelved by The Tribune, the ad- vertisement will be printed In many Independent papers, The advertisement came as a surprise, no previous announce- ment of the Industrial Commis- sion’s intention faving been made until the St. Paul ndvertis- Ing agencies sent out “copy” to North Dakota newspapers. ° DAD AND SON BANQUET SPUR FOR PARENTS Opens Up Great Field of Service} in Promoting Boy Wel- fare ROTARY CLUB GUESTS Inspiring Address Given by E. C. Walcott of Y. M. Cc. A. More than two hundred fathers and sons were brought closer together aud the seeds were sown of a better understanding at the fathers and sons banquet given last evening at the Masonic Temple under the auspices of the Bismarck Rotary club. There were grins of comradeship song contests, inspiring addresses a. “big feed” and all around good time. All: Sizes There, Little boys, big boys, old boys and young ‘boys accompanied ‘by their fathers or adopted for the evening by the poor “duffer” whose boys were either all girls or fate had de- nied him the pride of parentage, be- gan early in the evening to pour into the Masonic Temple. There was a get acquainted period so that when the call for dinner was everyone k-<w the other fellow and a most congenial spirit inaugurated Bismarck’s first father and son get- together banquet which promised to be: frequent affairs. 8S. R. 0. Sign. The capacity of the Masonic Tem- ple dining hall was taxed to the limit and the only regret was that it was impossible to have every fath- er and son in Bismarck there to get the important message and catch the spirit of the affair. E. C. Walcott, Y. M. C. A. official and boy expert, gave the address of the evening. and he touched the hearts and con.;#nces of every fath- er, opening before them the vision of greater service to the “pal” whs sat by his side. A Challenge to Bismarck, “Where will we play,” is the chal- lenge to Bismarck sounded by Mr. Walcott in his plea for wholesome, pure environment where father and son can play together and combat evil companionship and direct the moral and physical well being of his | boy. The absence of directed play tu Bismarck and the total lack of parks or general gymnasium or recreation center of any kind came home with emphasis as Mr. Walcott outlined the duty of fathers to their boys. About Runaways. “Remember boys,” he said, ‘“ninety- nine out of a hundred runaways never return to enter in the full riches of success. Don’t let anything (Continued on page 2) RESERVE BANK EXTEND LOANS Hardware Men Adopt Resolu- tions Relative to Credit Conditions of State Fargo, Feb. 11.—Delegates to the twenty-fifty annual convention of the North Dakota Retail Hardware Men's association considered resolutions for adoption at final session here today. ‘One resolution submitted urges that the federal reserve bank so amend its rules s0 as to make six months loan (especially .to agricultural sections), instead of short time luans as now practiced.” It endorses “the plaa proposed by one of the federal reserve boards for { Boy in Dance Hall—Scandi Finds Way Into State Bank Bank—Lofthus Admits $11, of! ” ORDERED OUT OF PRIVATE BANK | ANK OF NORTH DAKOTA, TESTIMONY BLANK NOTES SIGNED BY N. P. -OFFIGIALS FOUND.IN ENVELOPE WITH STATEBANK RECEIPT BOOK Sensation Sprung in Investigation Through Find of Bismarck inavian-American Bank Paper as Collateral for Loans to Fargo 000 Brinton Check An envelope with ten blank notes signed by Nonpartisan league als and a receipt book used by appraisers for the state bank in it, was found by.Max O’Connell, a Bismarck, high school boy, in the Patterson dance hall. ; j Notes rated as ‘‘bad paper’’ by P. E. Haldorson, deputy state examiner, when he made the examination of the Scandinavian- American bank at Fargo when that institution was closed by the state banking board, was found in the Bank of North Dakota by Bishop, Brissman and company accountants, when the firm made !the audit December 3. _ These were the two outstanding developments today in the investigation being conducted by the house committee into the man- agement of the state industries, in the eyes of the probing ‘com- inittee. Following the testimony of E. G. Lee, of Bishop, Brissman and company this morning regarding the loans and redeposits made by the state bank to certain banks, F. W. Cathro, dierctor-general of the state bank was called. He was handed one of the receipt books sounded, | by Attorney Murphy and asked appraisers of the bank in gettin He said that it was. was then called and questioned by evening. ere J0B HUNTERS POUNCE UPON W. G, HARDING Rush of Hungry Office Seekers Promises to Be Regular Deluge SOME ARE SUMMONED Cabinet Selections and Inaugur- al Address Have to Wait , for Patronage | St. Augustine, Fla, Dec. 11—-The | quadrennial parada of oflice-seekers j and advice-givers that always engulf | the president-elect on the eve of his inauguration is visi; steadily about Warren G. Harding's headquarters here. Screened away from Marion by | the conferences of “best minds” and une held at bay for three weexs while Mr. {rush of the job-hungry and the hobby riders promises now to assume the proportions of a deluge, ‘Many of those who have engage- ments to see Mr, Harding have been summoned for consultation on various problems, and he prides himself on being a good listener and wants to be accessible to everyone. Consequently a goodly proportion of the people he feels compelled to see are those who want something for themselves, or for their friends, and who insist on pre- senting their case, even though the se- \ lection of a cabinet and the prepara- tion of an inaugural address must | wait. LV.A. MEETING CONVENES HERE; ~ TALK OF RECALL | Lincoln’s Birthday ,to Be Ob- served Tomorrow by Asso- ciation i | — | The Independent Voters Associa- j tion convention got under way in Bis- marck today, with nearly 200 mem- | bers of the organization present from ‘all parts of the state. | President E. W. Everson presided at the sessions which opened with a | discussion of the general situation lin the state, particularly the finan- | cial conditions. Tomorrow the convention will ob- | serve Lincoln’s birthday, and hold its Lincoln day memorial celebration in the Bismarck auditorium in the aft- ernoon, at which an elaborate pro- | gram will be rendered, and will hold |a banquet tomorrow night at the | Grand Pacific hotel in honor of the ; makers and defenders of the consti- tution. | The attendance was 2 big surpris2, | Theodore Nelson, secretary said. He ‘had expected about 50 delegates. | Many of the delegates arriving de- Harding was’ on vacation, the: united activity in furthering the best|clared they favored instituting a re- interests of our state through delegat-| ed representation of all commercial organizations in the state in co-opera- tion with farmers organizations active along this line.” Officers of the association will be elected this afternoon in the last ses- sion of the convention. call election against some state offi- cials. i APPROVE DISASTER BILL. Washington, Feb. 11.—A drastic im- migration bill was approved by the senate committee to take effect April 1, for 15 months. 1 if that was the one used by the ig receipts for their expenditures. How He Found Blanks Max O'Connell, a sixteen-year-old Bismarck high school boy, Mr, Sullivan. The envelope found y O’Connell was offered in evidence. He testifi i by : ( evidence, ¢ testified that he fou in the men’s dressing room in the Patterson danee hall on Monier Mr, Sullivan took the notes from the envelope and read them. The first note was for $1,000, drawing 10 per cent interest. The line for the payee was blank. It, was signed by the Non- partisan league, J. A. Johnson, mana- ger. The second one was for $1,000 also, with the due date and the payee blank, It was signed by the Farmers ‘Nonpartisan league, J. A. Johnson, treasurer. The third was for $2,500 and otherwise the same as the second. The fourth was the same. The fifth was for $500 and otherwige the same, The sixth was blank except the signa- ture and the per cent of interest. It “carried” 8 per cent interest and was signed by J, A. Johnson, treasurer, i and G. A. Totten, Jr., acting state ex- ecutive secretary. Craig’s Name on One, The sixth was for $2,500, carried 10 per cent and was blank except the aanatire which was the same as the The seventh was for $1,000 and sig:1- ed by the; National Nonpartisan lLea- gue of North Dakota by Ray Craig. state manager. The eighth was for $2,500, carried § per cent interest and was signed by Johnson and Totten, The ninth w: ell blank excgmt the interest at 8 per cent and the signature, which was . “A. C, Townley.” ‘Mr. Sullivan then offered the re- ceipt book found with them in evi- dence, Not an Appraiser, ‘Mr. Murphy then asked Mr. Cathro if Mr. Totten was one of his apprais- ers. He replied no. The bank head then was requested | to read a list of the appraisers, which | he did, ‘\How many appraisers of the state bank carried league notes,” Mr. Mur- | phy asked. Mr. Cathro replied that he didn’t | know any did. ‘Mr. Murphy next questioned Mr. | Cathro about a brokerage fee of $4,161) | charged by the state bank in connec- | tion with the purchase by that institu- | Hoa of the Dunn county feed and seed bonds. | Mr. Cathro replied that he didn’t | know but, that the, bonds were sold | to an outside concern and his impres- | sion was that the fee was that de- manded by the loan firm buying them. | He was asked to present the records | in regard to this transaction and also | that of the Stark county feed and seed bonds in which Mr. Murphy said, he understood the same deal had been made, Mr. Cathro denied that he had turn- ed over to the state bank examiner a list of banks which had not paid their drafts. + The farm loans for Bottineau and Renville county were next. considered. Mr. Cathro produced a list and Mr. Murphy reading off some of the names wanted to know if they were custom- ers of his bank, dr reply to someg he answered that they were. ‘The total loans for Bottineau couaty were $294100 and for Renville, $177,- 200. Mr, Cathro was excused and lat- er when he took the stand asked Lo be permitted to make a statement re- garding the Bottineau ‘county loaas. He said that less than 16 per cent of the borrevers did business with his bank. Of the first $219,000 loaned in the county, $150,000, he said, were made to customers of the First Na- tional Bank of Mohall. Mr. Lofthus was called and question- ed by Mr. Murphy in regard to the ex- aminations of the Scandinavian-Amer ican bank made by P. E. Haldorson. deputy bank examiner. : Mr, Murphy asked 'Mr. Lofthus if Mr. Haldorson had not reported on Sept. 18, 1919, on the bank and call~1 attention to ‘the excess loans and if on Oct. 27, 1919, he had not made wn- other examination and if the bank had’ not been closed and Mr. Haldor- son appointed as receiver. \ Answer Yes. Mr. Lofthus replied to the first «ue tion that he didn’t know and answere] (Continued on Page 3.)