The Bismarck Tribune Newspaper, February 17, 1921, Page 1

HE BISMARCK TRIBUNE BISMARCK, NORTH DAKOTA, THURSDAY, FEBRUARY 17, 1921 : LIEUT, PEARSON | LOST AVIATOR IS dy, | The Weather | 3 peas FAIR Hy? f ' THIRTY-NINTH YEAR ‘ INVESTMENTS IN STATE-OWNED INDUSTRIES UNCHECKED BY LAW; PRICE FIVE CENTS WHEAT PROFS «xce, TAKE NO ACTION ON RECALL FOR PRESENT Chicago, Feb. 17.—Early declines | took place today in the price of wheat! largely owing to lack of support from} - had gone to Minneapolis instead, he understood. LOFTHUS ABSENT WHEN CALLED House Committee Discusses Le- gal Phases of Industrial Program Laws WANT EXAMINER AGAIN | Attorneys Say They Understood State Official Went to Minneapolis The house investigation com- mittee today instructed its mar- shal to take necessary steps to: bring O. E. Lofthus, state bank examiner, before the committee. The action was taken just be- fore the noon adjournment, when Attorney Francis Murphy announced that Mr. Lofthus had been summoned to appear, and Lofthus, he said, was wanted to explain some transactions of | banks involved with the Scandi-/ navian-Ameriran bank. There were two witnesses on the stand during the morning, |. F.:W. Cathro and J. W. Brinton. During the testimony of Mr. Cathro the conclusion was reached that un- der the laws there ts no limit to! the money the Industrial Commission) could order the Bank of North Da- kota to put into state industries— that it could order all the public funds into the industries. “Sound Discretion.” The only limit. according to Mr.! Cathro, was “the sound discretion” of | officers in handling state affairs. “I wish to inquire,” said Attorney| Sullivan, “whether or not there is any; provision of law that limits the! amount of money the Industrial Com-| mission may order you, as head »f| the state bank, to credit state indus-| tries.” . | “My ‘recollection is that there is| not,” replied the witness. | “The only reasonable conclusion is! that, as far as the limitations of laws are concerned, is that it would be pos-| sible for the Industrial Commission to invest all the deposits in the in-| | ! ( dustries if they saw fit.” said Sulli-; van. Kon Mr. Cathro suggested that his im-; pression was that other laws con-' trolled this, and that something, improbable Mr. Sullivan was talking | about.. ‘ Mr. Sullivan said that he wished to remind the witness of a statement of Judge Robinson, of the supreme court, in a decision, to the effect that the test of a law is what the worst set of grafters might do under it, not what reasonable men might do. Mr. Cathro wished to read from other statutes than the Bank of North’ Dakota referred to. One provision) was to the effect that if the earnings; on the state industries should not be: suffictent to meet the interest on! bond issues, it was made the duty of the board of equalization to make 4 state tax levy to make up the de-! ficit. i The final conclusion of Mr. Cathro was that it would be malfeasance in office for officials to make improper, appropriations, and that the only limit; to the investment of the bank’s mon- ey in state industries was “the sound discretion” of officials. i Mr. Sullivan-then inquired as to the value of investments in state indus- tries as a bank reserve. j promise’, aa “ lan’ sorke: | Officers were elected as follows: would HP he. sates aaa | GIVES IT START President, Mrs. Howard Wood; vice} “It wouldn’t be reserve.” i “It would be somewhat in the na- ture of an investment?” E “Yes.” Mr. Cathro suggested it would not be a “very- non-! til ” investment, Law on Private Banks. He said, on questioning, that there! was a law providing that the private banks should keep a certain reserve, and there is no such provision with; regard to the Bank of North Dakot Mr. Sullivan read from Mr. Cathro’s’ front of the capitol when a gust of | FOR APRIL { statements on the bank’s duty a8! wing started it downhill, followig | printed ina booklet to the effect that; the road. The car went probably a} the prime duty of the bank was to! nundred yards before it. crashed into| IN RATE CASE keep the public monies “mobile” for | the good of the entire state, mak?/ hard that the front axle and radiator’ | of the car were damaged and the trec, sound investments, etc. “And you followed that policy, | asked Sullivan. Bank of North Dakota are concerned.” | In response to a further question | Mr. Cathro said that the investments; in industries, ete, were not “very; mobile.” | Cathro On Stand, F, W. Cathro, of the Bank of North Dakota, was the first witness called,| Attorney Sullivan asked him about the! $500 draft Jack Hastings drew on the! bank through a bank at Oberon. This/ was the drafts referred to by J. W.! rinton. ‘This is the one you said yesterday) §, draw. on the Bank of North Da. ‘Kota but when you looked it up you found.it was not quite so,” queried Mr, Sullivan. it’s correct,” replied the witness. | The draft was read. It was dated) Chicago, Feb. 13, 1920, on the Oberon} ‘bank to account of J. J. Hastings to, G.-M.. ‘Townsend ia care of the Bank) {n the North Dakota legislature ask-' Clusky, Max. Turtle Lake, and Mer- - | ing congress to pass the Sheppard-' cer, March 18. of North Dakota. | ~. Mr. Sullivan referred to the entries) made in the bank in connection with) this transaction, the entry being made! mother in 15 important foreign coun-| at Monango Junction has been set for to permanent books from slips. A| slip was shown with the entry “debit! to bond sale” and the name of J. R. Waters, manager, attached. Mr. Sullivan; “I believe you said <Qentinued on page 3) i SENATE PASSES GIVING MONEY FOR BUILDING ‘Appropriation for Liberty Mem- orial Carries in Upper House \ pe ere MEES PUTS UP FIGHT Kill Senator Bond’s Rural, Cred- its Board Act—To Permit Dancing The Liberty Memcrial building and park in the capi‘ol grounds at Bis- marck may be complsted. ‘fhe senate yesterday afternoon appropriated by a yote of 35 to 13 $200,200 for this werk. The bill row goes to the house. All of. the Nonpartisan members voted for the bill. Eleven independ- ents voted for it and thirteen against. Will House Museum. The building will house the histori- cal museum and the park will contain al-of the plants and trees knowa to the Indians. Jt is designed as a memorial to the boys who fought in the World War. Present financial conditions neces- sitating economy was the reason giv- en for those voting against the bill. Work on the structure has already veen completed beyond the basement. Puts Up Fight. Senator Mees of Morton county, put up a vigorous fight for the bill. Four bills were killed yesterday. They were: / Bill repealing full-crew act. | Bond's bill creating a rural credits board ‘founded on the South Dakota act. Bill to prexent- dancing in school buildings. REP, FORDNEY 10 SEEW.G. HARDING ON TARIFF BILL Congressman Wants Temporary Duty Law Passed Immed- iately Feb. Washington, 17.—Chairman Fordney of the house ways and means |- committee left: for St. Augustine to- day to get the approval of President- elect Harding to a plan to put through in special session of congress an emergency tariff to provide pro- tection for all American industries. The measure would be temporary until a permanent tariff law could be framed in the light of after the war conditions in various countries, AUTO DAMAGED WHEN THE WIND V..W. Murphy’s Car Crashes Into a Tree Near the State Capitol F. W. Murphy's automobile started toward the city from the capitol yes- terday afternoon before he was ready to go. The car, a Reo touring. was in a tree. .The car struck the tree so was loosened. “ | Mr. Murphy was able, however, to/ ‘As far as the investments of the! grive his car to his garage downtown, | despite the damage to it, and ‘he then| returned to the capitol to finish his business there. The wind which swept over the city was particularly fierce arouni the state house, and it.was difficult to heat the building. In the house of representatives legislators sat through the session with overcoats on. BELIEVES IN DOCTORS. ‘Washington, Feb. 17.—Clark Grif- fith will pay a lot of attention to the condition of his players this year. He'll appoint three physicians in each city visited to give his boys the medi- cal O. K. ” Resolution Pending. A concurrent resolution is pending Its backers to be a Towner maternity bill. contend that it is safer tries than in the United States. Blizzard Hits Canada, Winnipeg, Feb. 17.—A heavy bliz- zafd is sweeping over Central Can- a(a. i ENGAGED— The. engagement .of Miss Alexandra Flowerton of New York to Lieut, Louis A. Kloor, Jr., 'U. S..N., has been announced. Kloor was che pilot of the naval! balloon recently, ‘ost in Canada. LEAGUE MEN GIVE BANQUET FOR AUXILIARY Speakers Favor Going Through With “League Pro- gram” PASS RESOLUTIONS, Women Take Stand for “Pro-| gram” and Against “Com- promise” | Nonpartisan league men of the leg- islature and Bismarck last night en- tertained the visiting league womep here for the convention of the aux- iliary with an enthusiastic banquet at the McKenzie hotel. Some 300 were present. Among the speakers were Senator Baker, Repre- sentative Vogel, Miss Brickner, Sen- ator Church, William. Lemke, Repre- sentative Walter Maddock, Mrs. Bo- line, Mrs. Body, Mrs. Howard Wood, and Mrs. Perrago. Gives Reading. Mrs. O. B. Lund, of Bismarck, gave {a reading. Governor Frazier was the toast: njaster of the evening. Mrs. Wood, in referring to the ban- | quet this morning, said: “All of the; speakers voiced the same sentiment and that was that the slogan of the men was “We'll Stick” and the slo- gan of the women was “We'll Stick Too.” Oppose Compromise. Before adjoutnment yesterday aft- ernoon the women in session passed resolutions urging the state officials to stick to the program and oppose and compromise. | “Did the women take any stand against the conversion ‘of the state bank into a land and*staté industries | bank?” y “No, they did not,” replied Mra. | Wood, “but they hate the word ‘com- | presideat, Mrs. C. A. Fisher, of Val-! ley City; recording secretary, Miss| | Aldyth Ward of Bismarck. These of-; | ficers, with Mrs. S. M. Lindgren, of} | Minot, and Mrs. O. E. Bailey of Mof-| | fitt, comprise the new state executive] committee of the women’s organiza- | tions. | HBARINGSET | Hellstrom’s Application for Re-| duced Electric Rates to Be Heard ~ ' i The state railroad commission has} (Sent out notices of hearings on light j and power rates in the state. THe case of F. O. Hellstrom. et al, | vs. Hughes Electric company has; been set for Apri] 1. This concerns! jan application for reduced electric} rates. | Other hearings are: 7 | Application of Golden Valley Light |& Power company for increased | rates, March 22. re | Application of R. S. Davidson of | Killdeer, for increased rates) March | 21. | | Application of Central Power com-/ | pany, for increased rates from Wash- ‘burn, Underwood, Coal Harbor, Mc- | The application of F. J. Graham, et/| ‘al, of Ellendale, for train connection | | March 1, | States Attorney Here. | | John Moses, states attorney of Mer- \cer county, is in Bismarck in connec- {tion with legal businesa j had about given up hope. jin 1914, FOUND IN TEXAS Sky Pilot Foreed to Land in State’s Most Desolate any widespgead crop damage yet from green bugs. Opening prices which varied froni, unchanged to one cent higher were followed by a material setback all around. The close was heavy, cents lower. @ 1-4 to oe ee oe Y ‘FOOD SINKLER SAYS wikis With Nothing to Eat! 194 ) BANK LAW mamas | WASTOOSEVERE Sanderson, Texas, Feb. 17.—Lieut. Alexander Pearson, Jr., had a night's sleep last night, the first real rest! since he left El Paso last Thursday in a flight in an army aeroplane to San Antonio. Uniform in .rags, face unshaven, worn out from = privation in Texas} most desolate waste, the twenty-five year old pilot rode into Sanderson last night on a horse loaned from a rancher. ; Sends Message. / He went to the, telegraph station and sent messages to friends and the army headquarters, and then went to a hotel and to bed while soldiers walked guard to insure a sleep with- out interruption. ‘ He made a forced landing at 1:20 p- m. last Thursday in Regan can- yon, 95 miles from Sanderson and from communications. Wanders Without Feod, For three days he wandered with- out food, taking water from the aero- plane radiator. ab On the first day. he struck’ the Rio Grande and floated’ down the stream: on an improvised raft until he was discovered by. ranchers and given aid. His arrival came as the 65 army pilots who had combed the section in search of him since last Friday A strong north wind drove the pilot from his cdurse. His engine began to choke. He looked about for a place to land. His engine stopped and he hurt a wing. The trip back to civilization. was made blindly. PRICES DOWN DECLARES Mt W. ALEXANDER, PA. Living Costs Now 78 Per Cent Compared With Low Prices in °14 SOME STRIKE BOTTOM / Clothing as Low as It Will Go, Thinks Director of Indus- trial Board Philadelphia, Pa., . 17.—Further decreases this year in the price of liv-| ing so that it will only be per cent above what it was in 1914, were pre- dicted here today by M. W. Alexander, managing director of the national in- dustrial board, at the second day’s session of the building construction conference called by the Philadelphia! chamber of commerce. | Peak in July, 1920, i Referring to costs to the consumers, he said that the cost of living reached its peak in July, 1920, when it stood at 106 per cent above the same date “Now, it stands at 78 per cent aad during the next six months it will drop to sixty or sixty-five,” he sald. | Clothing Down. “Food priges would only drop as) more people are persuaded to take up; farming,” he continued, “as it is in| farming that we strike cost of Hving at its source. Clothing prices are at| Brinton deal. | stand for a few moments to give fur- rock bottom. Rents will fall, Codl| will drop with the approach of sum- mer. “Wages will drop, but unskilled la- bor will be more quickly effected than | skilled.” BLUE SUNDAY FOLK PULL A “MERKLE” (N. E. A, Staff Special.) | Baltimore, Md., Feb, 11.—Blue Sun-! day's cohorts have surrounded Oriole Park, the home of Jack Dunn's famous! Alfson Back in Team ag Center’ registered mail valued ut many thou- ball players. They are seeking to obtain enough! signatures to a petition that would: put the kayo on Sunday baseball in} Baltimore. But. they pulled' one “Merkle” in} their fight with baseball—they started | Jamestown high basket ball team to-| and forced the employes to lie face circulation of petitions on the Sab-| morrow night at the high school gym-| downward on the pavement. bath, FARM BUREAU MEE AT WOODWORTH, N. D. Woodworth, Feb. 17.—The farm bu- reau has perfected an organization here and is meeting with splendid response. Judge J. A. Coffey spoke Monday at the organization meeting on the proposed plan of marketing farm products. WEED TRA ROLLS ALONG. Sherwood, N. D. Feb. 17.--North; O'Doul’s two years on the Yankee’s! Dakota farmers living along the Ca- nadian line went across to see the Inter-provincial weed train now tour- ing Saskatchewan and to aid in fight against weeds. i Only Two or Three Banks Obey- ed JLaw, Declares Senate Attorney DENY BRINTON CHARGE Lemke, Lofthus and Thatcher All Declare His Testimony False Attorney Ed. Sinkler of the senate investigating committee charged at the hearing yesterday afternoon that only two or three banks in the state fulfilled the legal requirements of the 1915 law regarding reserves. This law was changed at the special ses- sion of the 1919 legislature and made more liberal in regard to balances re- quired. The, Nonpartisans, who con- trolled both houses at that time, have been criticised for this change. ‘ M. W. Thatcher, a Fargo accountant, was placed on the stand to refute the charge that the reserve of the state bank was less than that required of private banks. Mr. Thatcher testified hat on the basis of the Bishop, Briss- man & Co., report of December 3, the legal reserve of the state bank was $6,258,811.01, or $3,702,998.31 ‘more than would have been required under the old or 1915 law. Makes Comparison. When the Scandinavian-Americaa bank was first closed in the fall of 1919, according to testimony at the house hearing its legal reserve was $300,000 “less than nothing.” Mr. Thatcher said that based on the same strict construction of the 1915 law, at the same time the legal re- serve of other banks was $600,- 000 “less than nothing,” and that the legal reserve of the Northern State bank, town not given, was on the same basis $345,000, “less than no- thing.” Takes Up Report. He took up the report of the Rogers Stae bank for date of Deo 29, 1920, and stated that its cash reserve was less than legal. Senator Ployhar brought out that this was the bank of Chairman Grangaard of the house in- vestigation committee and intimated that the attorney was playing politics, Beforo the recess was taken this af- ternoon Mr. Thatcher was instructed to secure records from the state bank examiner's office relating to some fifty banks in 1919 and at the present time and to give the committee informa- tion in regard to their reserves. The witness testitied that in roughly examiner's office, he would say that the cash reserve of all the banks of the state bunched together ‘was $1,- 866,000 less than the legal resérve re- quired. by the 1919 law. Denies Check Episode. Mr. Thatcher denied that Mr. Brin- ton had ever talked with Mr. Lemke and Mr. Lofthus in his presence re- garding the $11,000 check which Mr. Brinton claims was given on a bank in which he had no funds to swell the cash of the Scandinavian-American bank at the time of the supreme court hearing and that he did this in accord- ance with an agreement with the two men to hold the check until he could scape up the funds to meet it. Me said that he did talk to Mr. Brinton at the Gardiner hotel during that time and he was bragging, about how well the Wisal trust was doing and showed him a pass book in which an alleged bal- ance of thousands of dollars was shown. ‘Mr, Lemke and Mr. Lofthus also de- nied avy connection with the alleged Mr. Cathro was on the ther testimony regarding money seat J. J. Hastings by J. R. Waters, then manager of the bank, as advance on commissions for sale of ‘state bonds. BISMARCK WILL PLAY JIMTOWN —Fast Game Expected Tomorrow The Bismarck five will meet the nasium. Edward Alfson, Bismarck’s star center, who was unable to play in the disastrous Mandan game, will be out in excellent trim. The other mem- bers of the team are reported to be ready for a fast finish fight. Bismarck beat Jamestown on its own floor, 17 to 7, on its recent road tour. GRUDGE IN HIS (EYE. ‘San Francisco, Feb. 17.—Lefty bench haven't done him any good. Just how much harm it worked is the puzzle. O’Doul says he'll work his head off to make Huggins look like a sucker, ‘ PEOPLES BANK “INFORKS CLOSES DOORS TODAY Directors Shut Up Institution and Call Lofthus to Take Charge RUN GIVEN AS REASON Deposits on Hand by Cashier Grand forks, Feb. 17.—Following a meeting this morning of the directors, the Peoples State bank, closed its doors shortly after noon. Cite Report. The action was forced as result of a run which began Monday after news- papers appeared in the street, giving an account of the meeting between | Townley and the bankers, say the di- rectors. money was withdrawn and how much North: Dakota money State bank has on deposit. Order Bank Closed, The directors ordered the bank closed and immediately after the cashier ordered O. E. Lofthus, state bank examiner. JEWEL WANTS RAILROAD MEN - TO URGE BOARD Conference Suggested by Labor} Leader in Statement at Chicago MAKES. RECOMMENDATION Executives cand... Employes Should Get Together and Reach Agreement Chicago, Feb. 17.—A recess of one: month in the hearing before the rail- road labor board on the application | of railways for abrogation of the wage; ‘ railroad department of the American Federation of Labor. | Urges “Bargaining.” | Mr. Jewell, representative of the; American Federation of Labor, today ; urged immediate advocation of the} the railroad labor. He said that only; by such means could the present con-| looking over the records of the bank) troversy be settled and a nationel crisis in transportation be averted. to take to refer the national agree- sentatives of the railroads and the; Agreeing to assemble immediately and act upon a difference that might arise. \ Suggests Boards. i That instead of filing a bunch of in:! dividual complaints on wages of un | skilled employes the American Asso-| ciation of Railroad Executives should) confer with representatives of em-| ployes effected. BANDITSGET ~ POSTALSACKS IN TOLEDO, 0. | Loss to Government May Total, Half-Million—Posse Seeks Men i | | i } Toledo, Feb. 17.—Sheriff Taylor, | with a posse of citizens, is at Palin | Place, six miles north, in search of jfive armed bandits who early this i morning held up four postoffice em- | ployes and escaped with six sacks of | sands of dollars. | The mail had just been removed {from an incoming train at Union sta- | tion and was about to be carried into {the postoffice a mile distant when | the robbers drove up in an automobile | The stolen mail was from eastern | points, according to Postal Inspector | Blake. The employes admitted the | loss may total a half million dollars. | LOWDEN OUT. | St. Augustine, Feb. 17.—Former | Governor Frank O. Lowden, has defi- | nitely declined to be considered secre- | tary of the navy, and will not be ap- \pointed to any post in the initial period of the administration- Prohibit Emigration. | Triente, Feb. 17.—Emigration from ‘central Europe to the United States; thas been suspended and the eastern | frontiers closed pending cleaning up | of sanitary situation. By | No Statement Made Regarding} They refused to say how much; Independent Legislators Vote for Delay in Last Night’s Caucus COMMITTEE RATIFIES PLAN Rural Credits Bill Offered to House Committee This Af- ternoon Action on the proposed recall was Suspended today by the executive committee of the Independent Voters | association, following the suggestion | last night of a conference of the In- dependent members of the legisla- ture that action be deferred until they were able to get in touch -with their constituents. The executive committee of the as- sociation has introduced “program” bills into the delayed bills committee of the house and it. is generally un- derstood that the committee intends to he guided in its decision regarding an election by the reception given these measures. Change Control. These bills give the control of the Industrial Commission to the Inde- pendents through the substitution of |the secretary of state and the state treasurer for the governor and the |} attorney general as members of the } commission and limits the expendi- tures for the’mill and elevator at Grand Forks to $2,000,000 and the Home Builders association and the Drake mill to $250,000. A bill to be given to the committee this afternoon provides for a rural credits board similar to the South Dakota land loan act and the Bond | bill defeated yesterday in the senate. Has Sold Bonds, South Dakota has sold over $30,- | 000,000 worth of bonds under this act and $5,000,000 since January 5, while the state bank has been unsuccessful in placing its real estate bonds. Lemke Talks. William Lemke, attorney general, at the league banquet last night de- clared positively against any move that would curtail the league program and Governor Frazier, while not as positive, urged support for industrial commission. FIND TEACHERS DEAD ON ROAD IN CLEVELAND | agreement was asked today by the | Instructors in Suburban High i School Apparently Beaten to Death — Cleveland, Ohio, Feb. 17,—Mrs. | principle of collective. bargaining to, Louise Wolls and Miss Mabel Scu.t, two school teachers of the high school, were found beaten to death 1.1 a road by children in route to schco!. They were last seen leading the He proposed three steps for the boys! schoo] children yesterday afternoon. Their clothing was torn and there ment to a joint conference of repre-: were sigas of desperate struggle. aes BARNES URGES GRAIN EXCHANGE | Former President of U. S. Cor- poration to Speak in St. Dgdeagat inde “haw Minneapolis, Feb. 17.—Measures to make the grain market a buyers mar- et and, not a seller's market as it exists instead of measures to limit fu: ture trading instead of opening the grain exchanges are the remedies to the present farm unrest, said Julius Barnes, former president of the U. S. grain corporation today in an inter- | view. Mr. Barnes is to speak late today before the Minnesota legislature in St. | Paul. CA. CITY WITHOUT LIGHT AND POWER St. Johns, New Foundland, Feb. 17. —This city was without electric light and power today as the result of dam- age to the lighting plant incurred in a blizzard that pounced upon New Foundland last night. Factories were idle all day, newspapers could not publish. STATES JOIN N RATE CASE Washington, Feb. 17.—Twenty states will join with Wisconsin in the chal lenge to the supreme court regarding the right of the interstate commer: to regulate state rates under the transportation act, it was announce! today. Will Resume Study. Washington, u"eb. 17.—The s'u'y of German in the schools here will be resumed next year.