The Bismarck Tribune Newspaper, February 24, 1921, Page 1

“ taxes. The Weather ‘PAIR \ THIRTY-NINTH YEAR CK TRIBUNE Last Edition THE BISY BISMARCK, NORTH DAKOTA, THURSDAY, FEB. 24, 1921 NORTH DAKOTA B OF ADMINISTRAT CHIEF JUS ANK JONAH [ON SAYS TICE ROBINSON HARDING TO — ~ CHANGE. DEPT. ORGANIZATION Suggests Throwing It to the,Waves and Implies That John Steen \President-elect Considers Pro- Is “Tame Whale” to Swallow and Liquidate Jonah—Slash | - Taxes Urges League Jurist—Must Do Business He Declares | “Or Go to Grass Like the Ox.” By Chief Justice Robinson > On our Ship of State there is a modern Jonah—the State Bank.. The Lord has sent out a tempest in the-sea so that the ship is likely to be broken unless great wind and there-is a mighty Jonah be thrown overboard. The same Jonah, without any means of his own, has posed as a banker and gotten into his coffers all) ‘st. Augustine, Fla., Feb. 24.--With the public monies from eyery county and every corner of the'state. his cabinet completed, President-elect He has put a large part of the money into long time loans on lan into the coffers of bankers and parties that will never repay, and | into buildings, mills and elevators. id Now, the depositors demand their money and there is no payment. \ , HOW JONAH CLINGS Jonah is several millions sh bait, no go ashore, so the chances are that he will have to be, ort and he will neither fish, cut posed Plans of Reor- -ganization \CONGRESS ALSO ACTS Committee of Legislative Body Will Act With President’s * Commission Harding is giving increasing .atten- tion to the first state administrative j task he will undertake as presidem, reorganization of the executive ma- |chinery of the government. }Delayed plans have not yet taken form but it ‘is known. that Mr. Harding. has in mind sweeping chances in many of the, government departments and bu- thrown into the sea; but in the Treasury Department. there ap- reaus and that he expects to enlist pears to be a tame Whale with c liquidate Jonah. For many days the good solons of the state have been in session in Bis- marck and all their time has been passed in and his doings. to have become hypnotized and like} Bunyan’s Pilgrim to have fallen onto | ; enchanted ground where they — can, move neither backward or forward. And still the people look to their solons, for some relief from the rob- Her taxes which have been levied dur- ing the past three years. Mdst peo-; Ple do not like to be robbed. Under the laws of 1919 the assessments and taxes have heen marked up_to three times that of any former year. At a special session of the solons in 1920, aftér the special election in The solons appear! PIONEER DIES OF HEART FAILURE ‘Towner county, the *League solons CAME .AS TRAPPE R/the lacked only one senator of, having a majority or two to one in each apacity, sufficient to swallow and Well-Known Mandan Business Man Dies Suddenly—Age 64 Years in the work of reorganization some {of the ablest administrators he can tind. . Work Important. He is understood to have told some of his advisers that he regards the , chairmanship of the reorganization -commission as a post etically on a par with cabinet poi | Congress has already committee to work out simplification of executive department with a view to cutting down government pay roil. It is believed that this committee will | work, in close co-operation with Mr. |’ ‘Harding’s commission. : Public Welfare Department. | One’ of the biggest innovations to ‘be propcsed, was the establishment of «2 separate department of public wel- fare for which Mr, Harding outlined his plans in a general way ,during campaign. ‘He contemplates transferring sevetal of the bureaus ‘working under other departments* to cht rma house. Then there was a demand Father of Movement to Bring this new department and also to'ere- reduce by 50fpercent the unjust taxes of 1919, but there was only a reduc- tion of 25 percent from the state ‘The result is that at the pres- ent session the League solons, have no majority. Left at Home. Those who voted: against a proper reduction of, taxes were left at home to chew their cud and to eat grass like an ‘ox, the same thing as King. Nebuchadnezzar who saw the hand- writing on the wall when it was too late. Now, if we clearly discern the signs of ‘the times, there is no need of a modern Daniel to read and in- _terpret the present handwriting. Clearly it portends that if the pres- ent solons go hofne without making a genuine effort to cut down the rob- ber taxes of 1919 and 1920, then, many of the solons will be permitted to remain at home and for two or moré seasons to eat grass like the Ox. Points the Way- The way to remedy a wrong is to undo it; the way to reduce the un- just taxes is to cut them down in accordance with bills presented to the solons at the present session, Then if our good governor. and others stand in the way of just reductions, there is a simple meansof. recalling and displacing them.. ‘By the constitutioa the people have the initiative, the referendum and tHe recall. They have power to make their own laws and to recall and discharge their public \ser- vants. New Fangled Laws. , By the constitution of North Da- kota all property must be assessed for taxation in the local district. m which it is situated and all taxes must be limited to a small percent of the assessed valuations. | But in 1919 by the tax supervisors and the state board of equalization, the local sessments were boosted so the con- itutional limitations were evaded. And then there was passed a set of new fangled tax laws providing for taxation of certain property without any assessment. Thus, motor vehicle taxes have been levied to the amount of nearly a million dollgrs a year and the money has been recklessly squandered. And on certain busine: industries, for accidental insurance, of employees, there has been ‘levied a tax of nearly a million dollars a , a sum'ten times the amount necessary to pay the insurance. that way many have been driven out of business’ and out of the state. what is that but simple robbery in the guise of taxation? Tax on Pool Halls. On the pool hall and theatre busi- ness there has been levied a tax of over $50,000 a year and only 25 per- cent of it has found its way into the state treasury. Then there is an il- legal tax on lawyers.’ They must pay tdxes on their property the game as Other people and at the same time. pay for the privilege of living and trying to do business. Then there is an illegal income ‘tax. A person who pays a tax on the assessed valuation of all his property and gets a little income must pay a tax on the income, and of course that is double taxation. A person having a constitutional right to live must have a right to obtain the means of living—a right ts work, eat, drink and sleep without paying a tax. The tax system of 1919 must pull down and send to grass any person who stands for it. Ex- cessive taxation is robbery and it has always been the greatest curse of every state and nation. Surely there is no reason why the people should <Continued on page 3) In| Andj Great Plains Station to Morton County Andrew Thorberg, one of the best known pioneers cf the Slope country, died suddenly this morning of heart failure, He was visiting friends last night and had not been sick. Was Trapper In '77. He is 64 years old’and leaves a wife and eight children. E. A. Thorberg, a son, is a resident of Bismarck and | was formerly connected with the state banking department. Mr. Thorberg came to Mandan as a ‘trapper in 1877. At the time of his death he was one of the owners of a department store at Mandan and was actively engaged in its management. Originated Slatem Plan. He was keenly interested in the pos- ‘sibilities of farming in this territory and he initiated the movement which resulted in establishing the Northern Great_ Plains station near Mandan. This is the largest in acreage of all of the federal experiment stations. | (He was the Mandan postmaster dur- ing President Harrison's administra- tion. : SEVEN MINERS CAUGHT IN ILL NINE BLAZE Give. Up, Hope of. Rescuing TraPped Men- Near Duquoin Duquoin, Ill, Feb. 24.—Hope had been definitely abandoned today for {the rescue of any of the seven men imprisoned by fire which started in a galley of the Castellane Dowell. five miles south of here. The galley was sealed to. prevent fire from | Spreadjng. ‘FARGO BRINGS ANOTHER SUIT _ AGAINST BANK Cass County City Garnishees State Funds in Security National Fargo, 'Feb. 24—The city of Fargo brought further suit today against the Bank of North Dakota./ Today garnishee papers were served on the Security National bank where city officials said they believed $11,000 of Bank of North Dakota funds were on deposit. This makes nine Cass coun- ty banks garnisheed. A check, for $65,000 was returned yesterday. The city claims the city, (has over $100,000 on deposit. SUPPORT CALDER BILL. Washington, Feb. 24.—After strik- ing out practically all of the provi- | sion for federal regulation of the coal j industry, the senate committee on manufacturers agreed to report the Calder bill out today. ate new bufeaus. LAYER MURDER CASE UP AGAIN; ~ ARRESTS NEAR? Investigators From Attorney- General’s Office Said in McLean County tid (Réports of impending arrests in connection with the Turtle Lake mur- der case are rife. Persons representing the office of Attorney. General Lemke have made mysterious trips to the Turtle Lake country, and admit that some action may be taken soon in the case. Ever since Henry Layer was sen- tenced to life imprisonment in the penitentiary for the murder of eight people at Turtle Lake his relatives have made efforts to fasten the crime on others, claiming that Layer is in- nocent. The action now being taken is inde- pendent of the McLean county author- ities, it is said. PROTE WINSLOW BILL. Chicago, Feb. 24.—President M Jewell of the railroad, workers divi- sion of the American Federation of Labor wired President Wilson asking him to veto the Winslow bill, author- izing pay of money to ralroads under guaranty provision’of Cummins-Esch ~~ WHEAT DROPS | AGAIN TODAY) Chicago, Feb, 24.—Bear pressure in| connection with the unsatisfactory! labor situation brought about, mater- | ial downturn today in the price of} Wheat. Initial quotations varied from unchanged to 1-4 cent'lower and avere | followed by setback. | The close was heavy, 23-4 to 4 1-4{ cents lower. ‘4 i STATE PLANT — ’ PROVIDED FOR — IN TWO BILLS Senator Liederbach’s Bills Call-' ing for Consolidation . , Carry | DEPOSIT LAW PASSES Placing of Publi¢ Money in Pri- vate) Banks, Accepted by + | League i The senate this morning passed the | twin bills providing for the consolida- tion of the electric plants at the state | capitol and at the penitentiary ‘and; providing that electricity may be sold; for private use. The bills carry a provision for a | bond -isue totaling $250,000, to be known as’ state public utility bonds. ; Originally, the interest rate was fixed at 7 per cent but an amendment was | passed this morning changing this to} 6 per cent, Introduces Bills. . The bills were introduced by Sena- tor Liederbach of Dunn, who main- tained that this action would be in the interest of economy. ! Senator Mees’ bill providing for aj re-classification. of property by the county commissioners passed. The companion bills changing the Bottineau School of Forestry to a san- | itarium for tuberculosis _incurables were indefinitely postponed. i Reconsider S, B. 65. The senate. recogsidered Senate Bill 65 passed yesterday, amended it by changing the appropriation from} $100,000 to $50,000. This. bill pro-| vides for a revelation of the railroads. by the railroad commission. | Other bills passed this morning were: ~ } S. B. 197—Appropriating money for , care of leprosy patients. i S. B. 111—Relating to quorums at} stockholders meetings. | 'S. B. 117—Act empowering the} ! board of county commissioners of | each county to designate depositories for county funds and providing the) procedure and regulations thereof. LABOR BODY =.’ “TAKES. ACTION "ON PROPOSAL } International Labor Organiza- tion Passes Resolutions of | Sympathy Towards N. D. Washington, Feb. 24.—The Intern: tional Conference of Labor today passed resolutions expressing sympa- thy towards the government and peo- ple of North Daxota and urged the ; “there will be a general re-organiza- HOOVER WILL ACOEPT POST IN CABINET Former Food Administrator Leavés Decision to Mr. Harding | | CONTINUES RELIEF WORK Will Make Many Changes in Conduct of Department: of Commerce New York, Feb. 24.—Herbert Hoov-} er declared in a statement today that) he had left it to President-elect Hard- ing tq decide whether he could be, of more service as secretary of com-! merce or as director of Européan re-| lief. | In a statement. he’ said: “I left it to Mr. Harding to con- sider whether I can be of more serv-| ice to the public as secretary of com-' ‘merce or carrying out the public trust already entrusted to me as aj private citizen.” i Mr. Hoover put up to Mr. Harding a proposal for the general reconstruction of the de-! partment. He declared that he had’ undertaken the responsibility of the) relief of $40,000,000 in Europe, money contributed, and he must continue to have general direction of that work. As the department of commeres, stated today it consists largely of bu-- reaus that have only a remote con-' nection*with commerce itself.” | 1 Cites Foreign Commerce. i “The foreign commerce of the Unit-| ed States especially in the next four] or five years is Closely bound up wits: the prosperity of this country,” He added that he expected that | tion of the goverment with the ad- vent of the Harding administration.” | Mr..Hoover said that he had not only. taken the responsibility of ex-) “pendihg millions of European relief! upon which 3,000,000 children are de- pending but also; held the regency ol eight or ten public institutions, posts which I could not readily relinquish. LIEUT. CONEY ARRIVES AT JACKSONVILL Flying Time on Ocean to Ocean Trip, 22 Hours and 32 Minutes eae Jacksonville, Feb. 24.—Lieut. Coney | who started from Dallas last night on) last lap of ocean to ocean flight ar-| rived at Camp Johnson near here at)’ 7:27 o'clock this‘morning. His flying| time, according to an unofficial com-; pilation was 22 hours and 32 minutes for-the 2,079 miles. The flying time from Dallas here} was 8 hours and 13 minutes. | The lieutenant’s time is believed tu) be a record. With the exception of} Jacksonville, was made by night. His mother and three brothers! were here to welcome him. He plans to make the trip back | PRICE FIVE CENTS HOUSE COMMITTEE ATTACKS SENATE PROBERS RAR RN eee BANK DEAL IN TOWLEY DEAL National Testifies at _ Hearing TRUBSHAW STAND‘ mony of Times-Record Editor E._L. Foulke, assistant cashier of gation committee that to his knowl- edge an agreement existed between President Grady of the bank, and A. C. Townley relating to the keeping of san league. He tesiified that he had been in- structed by President Grady, however, not to honor drafts from the Bank of North Dakota, and ingtead to write to the bank officials that “according to agreement we are returning draft so and so.” Cites Other C. D.’s He did not know what this agree- “ was but he understood that/ it was to be in effect until from $8,004 to $11,000 worth of certificates of de- posit from other banks which they were holding were paid. He said that the bank was still holding one of these certificates: for $2,259, from the Amer: ican Exchange Bank of Watford City. He attended the director's meeting when the notes of the five farmers came up but he did not hear, he de- clared, any statements which would give the impression that there was an egreement between Mr. Townley and | Mr. Grady and he thought that Lee Cowell, chairman of the board of di- rectors, and S. T, Ellis, director, were mistaken in their conclusions. H. A. Paddock, secretary of the In- dustrial Commission questioned him as to whether his bank had had spf- .cient money “on hand to meet the rafts turned back and still maintain he required: reserve. He insisted that it did. The committee instructed him | to return to Valley City and bring the statements showing the daily bal- | ances for a list of dates furnished by Mr. Paddock. Aultman Called. t \H. L. Aultman of Bishop, Brissman & Co., was the first witness called. He was questioned regarding a tele- gram sent to Bishop, Brissman & (Co., requesting E. J. Bishop, and others to come to Bismarck. Mr. Aultman said that he had seen the telegram but that Mr.’Btshop did not say wheth- er he.was coming or not. The last witness called was Percy R. Trubshaw, Valley City, editor and publisher of the Times-Record. Mr. a-| two hours, the trip from Dallas to| Trubshaw on request of the commit- tee brought copies of the paper for Oct. 14 and 23, containing the first references to the alleged Valley City deal. The articles were written in vigorous and emphatic language, one PAT HAGAN IS INDUSTRIAL COMMISSION PAYS COMMITTEE EMPLOYES CHARGE; SENATE HEARING FOUKES DENIES HOUSE CHARGE ; | | | | IS CONFIRMED ATVALLEY CITY ’ BY SECRETARY ‘Assistant Cashier of Security; Declares It No Secret That Stenographers Being Paid By Commission ON STAND | Paddock Fails to Shake Testi-' House Committee Inquires Into \ Payment of ‘Commission i Advertising { / The fact became known today that nnouneed that he haa) the Security ‘National Bank of Valley | the Industrial Commission is paying | City, denied on the stand yesterday) the salaries of two court reporters | in the hearing of the senate investi-| employed by the senate investigating committee, inquiring into state indus- try management. | “An effort was made by counsel for the house committee to obtain this | fund of the State bank in his* bank! admissi ie to offset loans made to the Nonparti+' nrimiasion from dohn Nt, Hacaty mer , her of the Industrial Commission, on ;the witness stand. Mr. Hagan re- i fused to make a positive statement, ‘but said he would be glad to produce the record tomorrow morning show- ing if any payment were made. | Following the hearing H. A. Pad- dock, secretary of the commission, id that the commission was paying Si the expenses of two reports for the senate investigating committee, and \ declared it was not a secret. The effort of the house com- mittee counsel along this line evidently was to show that the Industrial Commission was pay- ing part of the expenses of an | investigating committee suppos- | ed to be investigating the acts of \' the Industrial Commission’ itself and its agents, and that, there- for it was not to be presumed that such an investigation would be anything except favorable to I the Industrial Commission, |. Mr. Hagan was asked about the | full page advertisement which the Industrial Commission is having printed in various newspapers throughout the state. When the first ; took the stand Mr. Sullivan elicited information as to. the appropriation | made by the legislature for the Indus- trial (Commission amounting to $200,- i ‘Advertising Authorized. |. Mr. Hagan said that the advertis- ‘ing had been authorized by the In- dustrial Commission. Mr, Hagan said | he thought the commission had ,con- j tracted to pay for the advertising, | and that the commission had author- j ized the secretary, H. A: Paddock, to ;make arrangements for the adver- | tising. No limitation was placed up- jon the action of the secretary, Mr. | Hagan thought. He was to investi- | gate and report to the commission, | which he did. | “Do you know whether it is true | that the advertisement authorized by | the Industrial Commission is sent out | from Fargo to the legaue newspapers | by the Publishers National Bureau?” |. Mr. Hagan said he did not, but | thought it was done through a Min- |neapolis or St. Paul agency. Mr. support of labor to the bond issue San Diego by daylight. of the state-owned hank of North Da- of them closing with the statement Hagan said he had read but one ad- that “A. C. Townley was the chief; vertisement after it was printed and kota. i _This action was taken by Spurgeon Odell, a representative of the » state bank, who had asked labor’s moral! and financial support for’ the bonds. | INDEPENDENT BODY. MEETING IN FARGO MAY DECIDE TO CARRY MEASURES T0 PEOPLE The so-called Independent program bills h | the house of representatives, it i aving been killed in is freely predicted in Independent circles today that the measures will be taken before the people of the state in an effort to initiate t The measures which were rejected yesterday provide for a: rural credits board, a new Industrial Commission, tand the dissolution of the Bank of North Dakota. A> depository bill passed the house, but Nonpartisans will amend it in the setiate. These measures, with a Nonpartisan state ‘election law, constitute what has gen- erally come to be known as the pro- gram of Independents, for the con- jduct of the business affairs of the ' state on a new basis. The Committee of Twenty-one, which was organized previous to the fall campaign,, consisting of repre- sentatives of the Independent Voters Association, anti-Townley republican state committee, and the democfati committee, was meeting in Fargo t day to consider the political situa- tion in the state. This committee, it was expected, would discuss steps to place the measures before the people ‘for a vote, and to discuss a recall election. Leaguers Don’t Bend. ' Not until the measures were reject- ed in the house yesterday were the Nonpartisans committed to a stand of oppositiomto the proposals. The stand hem into laws. AA eee taken by the minority members of the house is taken to indicate that the final ottcome of the discussions of the proposed liquidation of the Bank of North Dakota and transfer of the farm loan business of that bank to a rural credits board“is that the league will retain its “no com-, promise” position and will stand up- on the present laws and the record of the officials charged with the car-| rying out of their provisions. The measures rejected in the house all received 4 majority of votes, but since all, except one, required a two- thirds maj they were defeated by the heavy Nonpartisan vote. The! measures afte: House Bill No. 21%, providing for the establishment of a rural credits system in North Dakota, the law being similarto that of South Dakota, and transfer of the farm loan business of the Bank of North Dakota to. this board, was defented, though the vote ‘ stood 6 to 5 House Bill No. 213, creating a Tew Industrial Commission to he composed of ‘Treasurer John (Continued on page 2) | BURKE COUNTY SETTLES WITH THESTATEBANK Won't Do Business With State’ Institution in the Future, It Is Reported Burke county has quit doing busi-| ness with the Bank, of North Dakota,! according to a dispatch received from Minot today, and has made a settle- ment by which its garnishment case; will be dismissed. i E. J. Hoviland, president’ of * the; Burke County Bankers’ association | and Lawrence Larson, county, treas- urer, were in@Bismarck, and complet-| ed an arrangement with the Bank. of! North Dakota, it is reported, whereby the money the Bank of North Dakota! has deposited in Burke county is off-) set by the money the county has in; the Bank of North Dakota, the state; bank ing jebout $7,000 to equalize matte t The county officials agreed to drop, the garnishment case on this settle- ment, it is understood, and will not deposit money with the Bank. of Nortn Dakota in the future. The-appeal from the decision of Judge McKenna on the garnishment case will he heard by the state su- preme court next Wednesday, BANK CALL OUT. Washington, Feb. 24—The comp- troller of the currency today issued { a call for condition of all national banks at close of business on Mon- day, Feb. 28. / Tropical balsam wood is coming into use as a substitute for cork in some capacities. sachem of free love and Socialism.” Editor Retorts. Mr. Paddock maneuvered long and craftily in an endeavor to trap the Barnes county editor into an admis- sion that the article was false. Hd would ask if the statement made by such and such a person was true, wasn’t his article. Mr. Trubshaw would come back defiantly with the re- tort that he didn’t know about the other fellow’s statement~but that he knew that his was the truth. During his examination, Mr. Trub- shaw remarked that‘he was standing on his published statement and that if. it wasn’t true those injured could seék recourse in the courts. This led Senator Liederbach, chair- man, to question him regarding his financial affairs. “f always pay bills,” came back the sharp reply, “and I don’t pay them in post-dated checks either.” TARIFF ON WHEAT OF 35 CENTS Senate and House Agree on Im- port Tax—Pass Appropria- . tion Bill Washington, Feb. 24.—Senate and house conferees agreed upon a tariff of 35 cents a bushel on wheat. The senate passed the $41,000,000 agri- cultural appropriation bill, increas ing it $6,000. CLAIM EQUAL RIGHTS. Berne, Switzerland, Feb. 24 ica in its note to the league council claims equal rights with other powers in consideration of disposition of Ger- man territory. ‘that hebelieved he went all over: it | before it was printed. He said he understood Rex Large, identified as of the Minnesota Daily | Star, Minneapolis Nonpartisan news- paper, assisted in the preparation of the advertising. | The witness declared that the ad- | vertising was not, in his judgment, political advertising. “Will It Get Votes.” “Do you think they would get votes for the Nonpartisan league ” he was asked. “They are not written with the idea of getting votes,” replied Mr, Hagan. 1 “Ts it not a fact that the purpose | of the articles is the creating of pub- lic opinion inAhe state in favor of the present administration?” asked Mr. Sullivan. e “We wanted the people to know the ‘ truth,” said Mr. Hagan. 1 Mr. Sullivan referred to the third advertisement containing consider- able testimony of M. W. Thatcher, of the Equitable Audit Company before the senate investigating committee. Why Not Both Sides “If it was intended to give the truth wouldn’t it be better to have given both sides of the Thatcher tes- timony, as_a_general proposition?” asked Mr. Sullivan. “I don’t consider/this a very good hearing,” replied Mr. Magan. Mr. Hagan then said that he didn’t think one could get both sides in the house hearing. 4 Mr. Sullivan asked if the witness thought one got the truth in the sen- ate hearing, and a tilt developed over the method of questioning in the house hearing. “Now we people who are paying taxes are paying for this advertis- ing,” said Mr. Sullivan. “Yes, if you are paying taxes,” said Mr. Hagan. The witness was asked the se of the law on which the commi relied for authority to make the ex penditure of money for advertising. Mr. Hagan read from the law and he declared the advertising was for ihe ontinued on page 3)