The Bismarck Tribune Newspaper, February 23, 1921, Page 1

‘The Weather "|, Uneettied. Last Edition THIRTY-NINTH YEAR ~ BISMARCK, NORTH DAKOTA, WEDNESDAY, FEB, 2 3, 1921 BANKS ORDERED ~RESERVEINTHIRTY DAYS BY: -BESECRETARY | EXAMINER; EF One Banker of Opinion It Will Mean Forcing of Farmers to~ Sell Grain NG GOV. FRAZER'S NA ~ HOLD STATE BANK SHORT 2 MILLION en ee ’ TO BRING UP FECT IS DEBATED EPORT SOVIET | MOVE AGAINST JAF TROOPS R CHRISTIAN.T0 - TOW. G. HARDING: | President-élect Will Retain Pres- ent Confidential Aid, Report HARDINGS ALL. PAGKERT SAVES LIVES OF FIVE SHALL CHILDREN Baseball Star Enters Burning Building and Carries, Out ’ Victims & \ME IN BANK PROBE ‘CASH WITNESS TESTIFIES WATERS WARNED GOVERNOR THAT FARGO BANK CONDITION ‘ROTTEN McAneney Tells of Trip to Florida and Telling Waters, Former Bank Manager, of Purported True Bill by Federal Grand Jury Sullivan Has Cathro Figure Out How Bank ‘of North Dakota LION’ ON HOUSE BODY Harbin, “Manchuria, Feb. 23.—Mil!-; \ | tary operations by the Russian Bol- AFFECTS MANY BANKS! ghevixi against Japanese forces in Siberia is believed to be, foresnad- owed+ by concentration of | Soviet \ Enforcement Depends ‘on Sub- troops. . oN NOT AS BAD AS the state took place today kat PAINTED, REPORT registered letters to all banks in/ Legislative Commission makes the state telling them to get Visit to State Training their reserves up to the legal Institeti minimum or close their doors. suLauOn The order is a.eompanion to the: 7 ! “pay up or close”..order.sent out to; YRGE SOME CHANGES What Independents \term the: final play of the’ state adminis- tration to save the Bank of North Dakota thfough putting the screws on private banks of bapks Sometigge ago when the Bank ' _ of North Daffota sought to withdraw large amounts .from country banks. to meet, correspondingly jarge obliga- tions on the bank, This order was not strictly enforced.’ If the order issued today would be strictly enforced it would mean the ‘closing: :of a large The Mandan ning school for i boys is not as bad as has been paint- ed, in the opinion of the members of the house of representatives investi- | gation committee which visited the institution yesterday. The commit- HOOVER / ACCEPT? | WILL | Republican Leaders Think That, Food Administrator will Enter Cabinet. St. Augustine, Fla., Feb. 23 | only a few formalities remaining to finally close up ‘the'tselection «of his cabinet, President-elect: Harding ga his. attention to, other immed problems and the inaugural address. | i Chances that changes will be made; are remote, although Mr. Hardidg | reafizes that th(ngs’ may develop | necessitating them. There have been published reports | that Mr. Hoover might decline but; | they arg not credited by Mr. Harding ‘and hig advisers. ’ George Christian, Jr., is to be se retary to the president. Mr. Ch tian has been Mr.. Harding's pri | secretary since he’ entered the 8 ate, Although theré has heen no fd |mal announcement every indication ' foints\ to his ‘retention. He is 47| | years jold and has been a neighbor /of Mr.| Harding, for years. |’ Before he became secretary of Sen- : | A ‘HELPS SAVE OTHERS \ pecs a | Little Damage Done to Building’ —Paskert Suffers Several Burns Cleveland, Feb. of Georg of the Cincinnati j team saved the liv ‘children and helped save the lives of: ten’ other ‘persons when fire broke! |out in a clothing store early today} and swept through the second floor + where the families were sleeping. |. Paskert was sing the store when! |the fire was discovered. He mae of tive small Could Pay on a Cash Bay Two very definite steps were the morning session today. They 1. Seeking to draw respons: —Mill Auditor Arrives in City taken by the housd#investigation’ were: ibility for the placing of public Heroic efforts funds in the alleged’ insecure Scandinavian-American bank upon “Doge” Paskert, outfielder F. W. Cathro, director-general of the Bank of North Dakota, and National league! knowledge of such condition upon Governor Lynn J. Frazier. 2. Seeking to show that the Bank of North Dakota, if it were placed upon a cash basis, based u pon its statement as of Feb. 15, and opinion of law by committee attorneys, would be' short $2,- 197,329.14. ge The attorneys for the commi conclusions in ekamihation of F. ttee sought to establish 'the first W. McAneney, credits depart- three trips into the burning buildmg Ment director of, the Bank of North Dakota, and the second land returned carrying the children.| through examinafion of F. W. Cathro, director In the rescue his hands and arms! | were badly burned. The property | loss was small. | LEMKE ATTACK RULING GIVEN Bank of North Dakota. The examination today dealt Dakota. At noon Harry L. general of the wholely with the Bank of North ‘committee counsel in its investigation into state industries, att | Dal Altman, accountant of t i | Brissman company, who made the report on the rae wae \ rived in the city and reported to the house cémmittee, He was {immediately summoned to appear before the senate committee late today. An examination is now being made of records of the Home Builders association for the house committee. tee, composed of Representatives Ol-| sen of Billings, Kopp and Burkhardt, #tor Harding} he was secretary of will make a formal report to the’ Marion Stone company. He has had What Waters Said In secking to establish the first number of sntall country banks, it is, said. According to testimony ad- | | WHEAT WAVERS duced at’ the ..senate _ investigation hearing there are. aboft.300 banks in the state under legal reserve. Cathro’s Claim F. W. Cathro, cf the Bank of. North Dakata, . asserted ‘on the. witness stand in the senate that turning: down of drafts ‘of the Bank of NorthDa- kota, constituted an act of insolvéncy upon the part of private banks. He said that 800 of the banks had turned down drafts. loft Various opinions were expressed as house of their investigation. Many changes will be recommend- ed by the committee, however. The report of the Independent members ofthe committee_may include a rap at the Board of Administration which, according to one member, ‘1as not allowed the expenditure of funds available to better conditions at the school. . Sanitary conditions could’ be im- proved but are not intol.rable, the committee holds. There.are no con- tagious diseases among the boys, ac- 7 a wide acquaintance. LANDIS TALKS TO WOMEN ON LAWLESSNESS ON GARNISHMEN Attorney General Says Bank Funds Not Subject to Exe- cution BANK STATE DEPARTMENT Attorney-General William Lemke is expected. to contend. in the supreme conclusion outlined above, the com- mittee counsel used this procedure: Mr. McAneney, credits_depart- ment ‘director of the Bank of North Dakota, said that he would not have made large loans to the Scandinavian-Amer- ican bank when it was in the condition he knew it was, and that the obligations of that bank represented other. in- fluence. A. Johannsen, audi department director, had testified that he would not have made the deposits and Joans as’ he knew ON EXCHANGE’ Chicago, Feb. 23.—A slump devel- oped in wheat today. Opening quo-; tations were unchanged to 3-4 cents,’ lower, followed by gains and the re- action, The close was 1 to 3 1-4 cents. PHILA. GIRL to the effect of the order.’ One bank- cording to the physician's, report. er said.that.the effect on solvent There are boys of various ages! Big Problem of Law Enforcers, “Judge Says, Is So-Called banks whiop'afe'* short, of reserve thrown together; which ought to be would. bevto “put the screws” , on\ farmers by foréclosure or ‘other pres- : sure,and ‘get the cash through’ the, seven years are thrown with boys , sale of the‘ farmers products, even though it -might: mean: acute loss to the bank on loans andtg the farmer girls in the institution will be jurged | Volstead act is not universal and that | on the basis of present,priced?: Sol- hy the committee in its formal re- one of the hardest problems is: the vent banks <Wwould nof be . sed, he said. oT, Strict, enforcement’ probably. weuld necessitate the closing of many banks but the examiner: said that rigid en- forcement depended upon subsequent developments.” , 4 Copies of thig letter, which Mr. Lof- thus spent yesterday afternoon’ in signihg, ‘read: “Office of State Examiner, . “State of North Dakota, ° “Bismarck 5 “Feb. 23, 1921 “To the Bank -Addressed: “Enclosed, you will, find copy of re- serve law Whcih took effect July 1, 1920, nial “You are hereby, advised to comply with this law, which requires that you shall have on hand ih‘available funds not less than ten per-cent Sf demand deposits and seven per -cent’ of time ditions of today and modern methods’ here earl: deposits, within -a.period of thirty. days after this notice. “Yours truly, “0. E. Lofthus, state examiner.” The copy of the law, section 5170 as amended, provides that “the State Banking | Board trolled) may impose a penalty of not Jess than $100 or more than $500“ if the reserve requirements are not met with on thirty days’ notice. ‘ ‘Section 5189 of the laws of 1913, which has not been amended, provides that “any “bank shall be insolvent when it fails to make good the amount of required reserves.” Two-fifths of (nonpartisan-con-: separated, however, according to the investigators. - Boys as young a¢ ‘sixteen years of age, they said. ‘/ Entire separation of the boys and port. This may take tle form of a recommendation for the establish; ment of a girls school, WILL DISCUSS BUSINESS AT MPLS. MEETING No Business Depression in Cloth- ing, Says J. J. Lynch, Retailer (Minneapolis, Feb. 23.—Business con- of selling merchandise are subjects which will come up before the tenth annual convenion of the Minpesota | Retail Clother's association, beginning ! here tomorrow. Speakers prominent “in business standing ones being Andreas Burk- hardt, of Cincinnati, president the | mational association of retail €loth- ing men, and J. L. Lynch, of Minne+ apolis, a national director, and Charles , Wry, of Chicago, national secres | There is no business depression in | the clothing “lines according to Mr. | Lynch, 5 lines will deliver addresses, the out-' Better Class \ i La Crosse, Wis. Feb. 23—That | ; Sentiment for the enforcement of the | « handling of the so-calted better chaps | of people who think it smart tocdis-) obey the law, was the declaration: last -night of Federal Judge K. M.! Landis, in a five minute talk before | the women of the Methodist church. | He sketched briefly the history of| Know all these men? You should. the fight for prohibition and compli-| they are all leaders in public life mented the women of the-country and—they're all Hardings! Teo to when he stated'that their getting be-, pottom: President-elect Harding, hind, the movement fifty years ag0' Chester Harding, governor of the insured its success. | Panama Canal Zone; W. L. Harding, Referring to the threatened im-! ex-govcinor of Jowa; W. P. G. Hard- peachment proceedings, he said: ‘ing, governor of the Federal Reserve “I don’t know whether or not 1) wank, will be impeached. ‘What I have done has been in open court and if I ought to be impeached I assume I will be.”: i. COMMITTEE T MEET ON RECALL BLECTION SOON | Body, of 21, to Convene at Gard-! ner Hotel, Fargo, ‘Tomorrow DENBY LEAVES FOR FEORIDA. Detroit, Mich. Feb. 23,—Edwin, Denby, President-elect Harding’s se- lection for secretary of the havy left ly, today for St.\ Augustine, Fla., to confer with Mr. Harding. Mr.! Denby was in telephone communicg-' tion with Mr. Harding last night. Asked if he planned to accept it, he indicated t! he would. KNIGHT REACHES CHICAGO ON FLY ° \ } Fargo, Feb. ‘he Committee of 21, ‘called by session. tomorrow a Gardner. hotel by the executive com- mittee of the Independent Voters as- | | / court that the Bank of Nort! ‘ota ‘is a department ofthe. state ern- | | ment, and not a private institution, This is the interpretation placed up- on jhis appeal to the supreme court, to prevent“*garnishment of the funds’ of the Bank o2 North Dakota. The attorney-general represents in pleadings filed with the court that “thd: property held by said garnishee (atipyivate bank) and belonging to; this' defendant (Bank of North Dako: ! ta), is and was absolutely exempt | from execution against the state of North Dakota, defendant herein.” The appeal is from a ruling of Dis- } trict Judge McKenna, in the case of | Sargent county vs. the State of North ' Dakota doing business as thé Bank of North Dakota and the Firgt Na- tional Bank of Foreman, Judge Mc- Kenna having dismissed defendant's motion to dismiss the actiog. The “case is expected to have an early hearing in the supreme court and to settle the question of garnish- ment proceedings brought by many! counties against banks in their re- spective counties having funds in the Bank of North Dakota. sy ROBBERS GET LOOT. . Magines & Co., a jewelry firm. The robbery was declared by police to he one of the boldest ever attempti:d. HOUSE'TO PUT AXE ON SENATE STABS FATHER condi Cath of the fina of the bank. Mi. ie onty ‘other member committeé of the bank. J. R. Waters, former man- ager of the bank, had told Gov- ernor Frazier after Jan. 1, 1920 of the condition of the Scandina- vian-American bank and had conveyed his opifiion that the hank’s condition was; “rotten.” according to .the ‘testimony, Before Waters’ resignation was announced he had written a let- ter to/Governor Frazier making certain demands which he said he did not expect to be granted and % Which he expected would cause TO DEATH | Sixteen-Year-Old Daughter. De- fends Mother From : Attacks Philadelphia, Feb. _23.—Elizabeth M. Lance, aged 16, stabbed her fath- . {er to death while defending her moth- {er. A formal charge of murder has been lodged against her. his resignation. How Bank is Said Short: Chicago, Feb. 23.—Five safes were, blown and loot which may total $70.-/ 000 was taken from the office of John | the reserve must be in cash and three-| “This so-called business depression | fifths in approved depositories, in-' lies only in the minds of the people,” | cluding the Bank of North Dakota. (he said, “and does aot.reflect the ac-| Guilty of Felony tual condition. The thing to do now is | Section 10012 of the Laws of 1913,' to restore confidence in the, buying | not amended, provides that if an in- public ei be kteca ptalkccol poor ens: solvent’ bank ‘accepts deposits after “The chief executive of Minnesota committing an act of insolvency the’ aiso will address the meeting, both; officers committing such act are,guil- Governor J. A. O..Preus, and Liduten- ty of a felony, punishable by a pri- ant Governor (Louis. Collins, | being son term of oné to ten years or a fine; scheduled to speak at the banquet to- ACROSS COUNTRY to“Atlantic Coast Desti- nation \ Chicago, Feb. 28.—Jack Knight fly- ing the east-bound non-stop mail ar rived at Haywood, 1,200 miles from San Francisco, at 8:40 a. m. m sociation, is expected to take’ definite In reaching the second conclusion the committee counsel took this method: . Mr. Cathro was asked to figure the liquid resources and liabilities of the bank upon the basis of the Feb. 15 statement, deducing $1,- 250,000 estimated redeposits and loans tied up in closed banks, and \ q deducting sinking funds other | “than state, and obtain the condi- tion the ‘bank would be in if it were liquidated or put on a cash basis immediately. The figure showed the bank would be short $2,197,329.14. Mr. Cathro differ- ed with Mr. Sullivan as to the latter’s interpretation of the law regarding sinking funds.. Under Cathro’s interpretation, on the same figures, the bank would be a million ahead, he said. The Florida Visit Mr. McAneney told of his visit t> Florida, which he said was taken af- ter conversation with Ray Craig, then st. Some newspapers indulged in peer es thet Nopmerinat ild speculation as to official text. nderstood ‘a true bill had been re- The American note was presented turned by a federal grand jury to the council in english and because against James R. Waters, then man- LEAGUE WILL CONSIDER NOTE OF AMERICA ‘Text of Document Concerning | Equal Rights in Mandates _ Not Revealed \ Paris, Feb. 23.—America’s nov» of protest relative to the mandate an- Nounced to the council of the League of Nations yesterday was laid before the council this morning. jt was the first thing disc The action of the United States a serting its right regarfing manda’ formed \by the council} created inter- \ i New Aviator ‘Takes Up Flight, action ‘as to whether or not a recail election is to he held. The committee will be given report of an investigation which has heen conducted through the state for the last,three weeks regarding sentiment a recall election. ‘GOV, FRAZIER of not more than $10,000, or both. Mr. Lofthus made no threat that he would take action to rapidly) close banks at the expiration of thirty-days stating that. developments in the meantime would have to be taken in- to consideration. ‘ A. Johannson, director of audits of the Bank of, North Dakota, today said that about fifteen Bismarck persons déposited private funds with the bank ‘yesterday. Issue Statement. Senator-elect E. F. Ladd has issued a statement censuring “the federal reserve bank, alleged that North Da- kota has been discriminated against in ~favor of speculators. Referring to the lettems sent out urg- ing membér banks to liquidate farmer. loans, Dr, Ladd says:: “There is no question but that a strict compliance with the terms of the letter was forcing the farmers close to bankruptcy sjnce the farmers could not meet'the demand and the formal withdrawal of the‘ funds from the smaller banks in western ciorth Da- (Contigueé on’ Page 8.) _ | night. ’ ed By the Men’s Apparel Club of Min- | nesota. j BOTH IN SAME BOAT Cleveland, Feb. 23—By coincidence both Tris Speaker and Wilbert Rob- inscn, rival managers in .the 1920 | world series, seek catchers. Speaker wants an understudy for O’Neill. Rob- bie needs-a regular. ORIOLES SURE THINGS ’ Baltimore, Feb. 23—At this stage of the International League race Baltimore looks like a Man 6’ War against a bunch of plow horses, MINNESOTA WINS. Minneapolis, Feb. 23.—Minnesota { 1 ; ference. baskethall last night. STAGE SET FOR PHILS Philadelphia, Feb. 23—President Baker of the Phils finds Gainsville has everything a ‘cellar club needs for | training purposes. * 8 The entertainment will@be furnish: defeated Chicago 24 to 19, in. cou-| Twenty minutes later Aviator Web- ster took up the flight for the East! He was webry but undaunted. { “Some eats will look good to me | and a bit of sleep will do no harm.” Knight will haye 24 hours rest and then start back on the west-hound service. Conditions favor the East j flyers and Webster expects to make.a record flight to Clev@land. GETS CHECK—STOP STRIKE. Pittsburg, Kan., Feb. 23—Karl Bis- mach, whose pay check was the cause of the miners’ strike resulting in jail sentences for leaders, received $220 | back pay paving the way'for the end of the strike. NOT PARTIAL TO BABE Baltimore, Feb. 28—Allan Russell wen't go south with the Red Sox. He'll train here. Russell,denies he wore himself out last season trying to strike out Babe Ruth. He says he pitched to them all alike. LAYS PROJECT BEFORE UNIONS North Dakota Executive Wants Labor Organizations to De- posit Funds Here ! Washington b.. 23.—Gov. -Frazier Federation of Labor the prope jon that labor organiza- {tions invest their “funds in bonds of the state-owned bank of North Dako- ta. He also has asked that the labor forces deposit their funds in the state bank. > Union officials declined to express an opinior to. probable action. The Mi: ippi flows past New } Orleans at an elevation 20 feet above bidagis | the city. Lake Erie is 330 feet higacs aa | Lake Ontario. the executive council of) BUDGET MEASURE May Cut More Than Million—! / Senate Passes Mandan Fair Appropriation The house of representatives com- | mittee is expected to slash the dppro-; priations bill more than $1,000,000. To do this the action of the senate will have to be rejected, and drastic cuts made. The bill, as it went to the house today, after being passed by the seh- ate, increased the appropriations nearly $300,000, making the -budget total for the biennium $8,476,639. The senate was in session t morning.: The following bills were killed. ; S. B. 167—Defining fuel standards. S. B. 193—Regarding loans and in- vestments of insurance companies, S. B. 23—Relating to assistance for disabled voters. ‘—% PL .78—AppropriVing $400,000 | for the guaranty fund commission, The senate passed a bill appropri- ating $7,500 for the Missouri Slope fair at Mandan, and sendte bill No.! 59, to place the commissioner of in- surance on the board of equalization in place of. the state auditor. PROVIDE EXTRA EXAMINERS. Because of the heavy work of the | of its length it Was decided to have it translated.into French so that each member would have! an understanda- ble copy before him. It was understood that, the note probably would not be given out until late today. FRENCH CLASH WITH SOVIETS. NEAR GREGORY Bolsheviki Lose Heavily From Fire of Warships, Says Constantinople Report Constantinople, Feb. 23.—Frencn destroyers cruising along the c of the Black Sea have heen engag with the Soviet forces at Gregory. Reports received here state the Sov- iets lost heavily from the fire of the French warships. Triflis appears to be still in the hands of the Georgians, who have However suffered quite heavy losses. DROPS state bank examiner’s office, the sen- ate provided in the appropriation bill $10,000 for extra examiners, {aeroplane in a parachute unharmed. Fort Sil, Feb. 23.—Sergent E. Chambers, leaped 22,000 feet from an ager of the bank, who was at Miami, Florida. He said’he made the trip as a friend of Mr. Waters. He said he was not told and did not know if any true bills were ever voted by a grand jury. Mr. Waters, he said, told him that he had written a letter to Governor Frazier setting out certain demands, which he did not expect to be com- plied with, and which he expected would mean his resignation. Hé told of a visit made to Governor Frazier with Waters after they had visited the Scandinavian-American bank in which Waters told the Gov- ernor his opinion of the bank, which was thdt it was “rotten.” Efforts to show Attorney-General Lemke had knowledge given by Waters failed. Figuring on Bank Just before the close of the morn- ing testimony Mr. Sullivan brought out the Feb. 15 statement of the Bank of North Dakota and, with Mr. Cath- ro on the stand, asked him to make computations as requested by Mr. Sullivan as to how the Bank of North Dakota would stand if it were immed- iately placed upon a cash basis. __ After deducting all state deposits and sinking funds, as not being sub- ject to withdrawal by treasurers un- der the initiated law, and adding up public general deposits, amount owed depository banks, collection items, and bills payable, a figure of $9,072,- 833.94, of demand liabilities was reached. Mr. Sullivan then had Mr. Cathvo (Continued ‘on Page 8) -