The Bismarck Tribune Newspaper, February 26, 1921, Page 1

AL A UAOSTB The Weather FAIR, THE BISMARCK TRIBUNE Last Edition . THIRTY-NINTH YEAR _ ~ BISMARCK, NORTH DAKOTA, SATURDAY, FEB, 26, 1921 PRICE FIVE CENTS HASTINGS TOLD JUNE ELECTION MOST LIKELY | UNDER RECALL Time Necessary for’ Petitions|/ and Conventions Likely to Put Date There GENERAL ELECTION? Leaguers Claim They Also Will Aim' Blows at Some | Independents | | Following the announcement from Fargo that recall petitions would be sent out immediatelycby the Com- mittee of “Twenty-One :there was gen. erous (lobby discussion in Bismar of the proposed election. VEN NONPAR \ Chicago, Feb. 26.—Wheat was act- j in. ! | nM | The close was unsettled with prices | {Senator Liederbach of Dunn) 1 cent lower to 3-4 cents higher. | MAY LOSE FEDERAL aD HEARS ABOUT | “AUTO PAPER” | Senate Appropriation Not Suf- | ficient to Meet Commis- | sion’s Needs Senator A. A. Liederbach from} Dunn, gave out the following state-, , | ment today to the elfect that the re-! sults of legislation now pending mayj be far reaching in, their affect on the) | Stary Testifies He Is Worth $80,-. 000—Ebbert Tells of | Loan | SAYS $20,000 NOTE PAID, HIM $50,000 GERMAN MONEY TISAN LEAGUE, WATERS SAYS STATE EMPLOYE GRAFTED CASH * OFF HOME BUILDERS, CHARGED; WITNESS COLLAPSES ON STAND ‘Alleges Jack Hastings Said $50,000 Germany Money Given to North Dakota League at Beginning of War;—Asserts F. R. Pollard Told Him He Got Rake-off on Home Builders’ Pur- chases; Asserts A. C. Townley Planned Endless Chain Sys- tems of State Banks Backed by Bank of North Dakota Public -° Funds. J. R. Waters, former state examiner and fornfer manager of the Bank of North Dakota, fainted on the witness stand of the house investigation committee in the Burleigh county courthouse shortly before noon today. ___ Mr. Waters, who has been ill for a month, part of the time in a local hospital, had been on the witness stand for two hours, with a short recess. The courtroom was crowded with people, and ; good roads movement in the state.) . Talk of candidates is included in The statement follows: | the heat and lack of fresh air apparently caused the witness to the gossip of the legislators. Among } The apropriation made. by the sen- suddenly collapse and fall from the chair. He partly recovered the names most frequently mentioned in- connection with the Independent race for Governor is R. A. Nestos, of Minot. Mr. Nestos, it is understood, would be willing to make the race and his friends are expected ‘to ask that he be placed at the head of the ticket. George Shaffer, of McKenzie county, who was in the city last week for several days, is mentioned as a candidate for Attorney-General. Among the several names that have { b NEW YORK HAS RECORD SNOW—New York City is’ shown floundering about in thé biggest snowstorm in four years: | Thirteen inches fell in 24 hours. Wind drifted it many feet high sin places, stalling street cars and automobiles. | ate, for the State Highway Commis-| ; Sion, is not sufficient to meet one-half , of the needs of the commission and} ; there is said to be a strong probabil-) | ity cf the house stil further decreas-' ing this apry‘opriatibn. | Should ‘the appropriation take final’ passage and be approved in its pres-: Equity Packing Plant Met Ob-| ligations Due Indirectly to | State Bank | i Joseph Greenfield, who has been acting as agent of the State Bank in! |almost immediately and was assisted from the courtroom, being taken home in a taxicab. , During his time on the witness stand Mr. Waters gave sen- sational testimony relative to his connection with the Nonparti- san league. This testimony included: 1. Declaration that Jack Hastings, former financial manager ent reduced amount the State High-/ collecting money due from othor/Of the Nonpartisan league, told him he was going to New York way Commission will be compelled to/ confine its attentions to the comple-| tion of work no under construction or) banks, testified yesterday afternoon! at the hearing of the Senate investi-| gation committee that approximately: to try to sell borids of the state to a' bunch of radicals through whom the Nonpartisan league got $50,000 of German money at the start of the war. ? been mentioned for the place, | uuder contract and will probably be " s i of Commissioner. of Agriculture eee compelled to store away plans which |ione-half of the banks of the state or| 2. Declaration that F. R. Pollard, former purchasing. agent and Labor is Carl Kositzk are now being made for about five! 434, had been unable to mect the de-|Of the Home Builders Association, told him in a Fargo hotel that former state auditor. F. B. Mann, of Denils Lake is said to have guberna- tional aspirations. Leaguers declare that a recall will mean more than an attempt to unseat the Governor, Attorney-General an ‘POLICETRYT0 PROTEST MEET FIND CHICAGO TO BE HELD IN hundred miles of proposed projects. | The surveys for this five hundred miles have been made and the plats} are well under way but.with the re-| dui Commission would not be able to mands of the State Bank. The rest of the afternoon was de-| voted to testimony regarding the “auto 000 loan of the Equity Co-operative | he had 'got a “$1,600 rake-off” that day on purchase of lumber for the association and that he was getting money on all deals. ; 3. Declaration that A. C. Townley planned an “endless chain” appropriations the State High-, paper” of E. H. Stary, and the $20,-| system of financing banks, intending to place one in every county jof the state and that deals actuall ly were carried on for two banks, ese handle the work involved in the addi-; Packing plant. Commissioner of Agriculture and La- tional construction. “Deal With Waters” Commtesioliér ot Agsteulture and: tas |and that William Lemke talked to him about the plan and thought it a good one; that the Bank of mission and ‘three Supreme court judges. They assert that the’ leaguers will direct their fire against Inde. pendents ‘elected to office. The lea-: guers jexpect Justices Robinson, Grace and Bronson to be included ini the recall election by Independents. Convention in March It was announced from Fargo that! a delegate couyention wilh be-held for flight of William Dalion, 17-year-old) Mach, who has called.a meeting ia: yas it is considerad probable that] house receipts of automobiles, the purpose of naming candidates. It is expected that this convention wil!| be held in Devils Lake, the date uu- certain. : Recall petitions must bear 3u ‘er-| cent of the voters of the preceding! general election, or about 70,000! names.“ To initiate measures it'is re-| quired that 10 percent of the voters) at the last election sign petitions and that they be filed with the Secretary of State 90 days before election. A recall election shall be called not} less than 40 nor more than 45 days: after a sufficient number of petitions! has been filed. | It .is_ expected that petitions will, be sent out immediately from Fargo and the huge task of gathering names | for the petitions begun. It is hardly} expected that the delegate convention | will be held early in March, and the! reeall election proposed is not ex- pected to be held until the latter part} of May or in June. No Form of Ballot ‘ There: is no form of ballot pre- scribed for a state recall election, it is said. There was a form used in the 36th legislative district last fall which follows ‘the general style of ballot. The election is without party designation. The law says the can- didates in a recall election shall be nominated in the same way as in the primary election. or by the petition of 800 voters. There already ‘isi'discussion as to the extent to which the proposed re- call election may’ go. Since the dit- ference of the Townley and the Frazi- er-Lemke faction over the liquidation of the state bank, there are rumors persisting that a recall election may see a fight within the league for con- trol. although these officials deny there is anything like a break. The Arthur Le Sueur faction, centering around the old Minot socialist group. also is a possibility, as it is oppose to the present regime. from now, also is a consideration in the discussions.’ A Twin City news- paper man, interviewing a number; of Independents and Nonpartisans here last night as to their opinion of the recall, obtained the following: Speaker L. L. Twichell, Independent “There is no question to it but that the Independents will win. The citi- zens generally have already had more than they want oi state-operated in- dustries.” William Lemke, member of industrial “Nonpartisans will wll up a bigger- majority than last November. If the Independents start ‘a recall the Non- partisans will finish it, and will have commission— ,@. full ticket in the field, including the, Supreme court judges, State Treasur-' er John Steen and Secretary of State Tom Hall. Sit on the fence: for or against us. The farmers are Feady for a finish fight and will reduce acreage and every effort to see the Nonpartisans gain a firmer hold in the state than we now have. They are determined that the special inter- ests will not crush true democracy.” Tom Hall, secretary of state —“I am ‘ready for the recall. Elec- {Continued on page °) | exhibited Liberty bonds wi This is con! strued to mean that they are nominat- | ed the same.as-fora primary election, | d the Krupps was made today. Senator Mc? ; Cumber’s friends, seeking to build up; his fences for his campaign two years} attorney general.) No one will be allowed 10, either they will be, BANK CLERK NEW YORK CITY “sii” Officials Which May Lead to His Early’ Arrest Chicago, Feb! 26.—Two clues to the | ai Chi-! bank clerk; who escaped from cago bank Thursday with $77,000, in liberty bonds were being traced by po- ice. The Northern Trust company will urge the police to release Dalton if he will return the securities, ac¢ord- ing to the vice president of the insti- tution. Fear that her son had been mur- dered, kept Dalton’s widowed mother awake all night, so neighbors said. Chicago, Feb. 26.—One clue, as to Jalton’s movement was lost when J. | Oblinski, visited police headquarters and explained that it was her who had tried to buy an automobile from a South Side dealer the day Dalton dis- appeared. He showed a ceipt for! the first payment of th ar and he nich he had offered in payment. e_____— = PASS IMMIGRATION BILL} Washington, Feb. 26..—The senate limiting immigration: from Kuropean country during the fifteen- month period beginning April 1, was passed today by the house. GERMANS 10 ‘BUILD PLANT ON CONTINENT Chilean Government has Grant- ed Big Concessions to Krupps Buenos Aires, Feb. 2 Confirma- tion of Berlin report that the conce: sion granted German industrial inte ests in the produce of Liangihue, by ;the Chilean government are held by The newspaper says that Krupp will build the largest steel and munition plant in South America ahd that the work of construction will begin” im- mediately. There ‘are rich mineral rights on the concession and much water power,; It is said that the Krupps intend to/ ; utilize the iron ore ~nd also to manu- facture equipment for the Chilean and other military forc: GIVES POST TO 1, ROOSEVELT St. Augustine, Feb. 26.—Definite an- nouncement was mdde by President- elect Harding that he had selected Isd- win Denby for secretary, and Theo- dore Roosevelt, son of the former) president for assistant secretary~ of the navy. ae 7 MUST GET PERMISSION. Washington, Feb. 26.—The Indus- trial court ruled that flour mills must ‘not restrict operations witout per- mission. Practically all the women of the Schram ‘Bay 6ection in Japan are pearl divers. any. ‘ Tracing Two Clues Dr. Von Mdch Insists Gathering | Will Be Held Despite Opposition New York, Feb. 26.—-Dr. Otto Von Madison Square Garden Monday night to protest against the alleged quarter- ing of French Negro troops on Ger- jman territory, today challenged the} surplus war materials that have been| bank total $29,684.20. American Legion to prove assertion that propaganda was behind tae meeting. He asserted the meeting ; would ‘be held. Officers of the American Legion who protested against the meeting ordered’ thejr men to refrain from violence if it Was held. FATHER DUFFY STOPS RIOT IN NEW -YORK Demonstration Interrupts Lec-| ture by Sir Phillips. L. P. McAneny of the State Bank, Should the State Highway Commis- the first witness, testified that the sion be abolished or should the State| deal whereby the Stary paper | was| Highway Commission's organization’ rediscounted was made by J. W. Wat-| | be so reduced that it could not prom-| ers, former ‘manager of the bank, and, ise the Federal Government supervi-}he also stated that approximately, sion over the work of the War De-| $36,000 of the loans had been _ paid. | partment trucks and other equipment; Payment of the notes was guaranteed | which the state has received from the} by the banks through which the loans | distribution of the. surplus war mate-| were originally made and by ware- Mr. | the legal advisors: of the U. 8. Depart-| Stary’s sworn statement shows’ that | ment of Agriculture will call for the} he is worth $80,000, he sdid, and the | return of all of the trucks and other! loans unpaid rediscounted by the turned over to this state since one of} G&G, A. Ebbert of the First Farmers |.the governing conditions attached to; Rank, Minot, testified that the $20,000 the distributicn of the trucks and! joan made by his: bank with the, | other materials attached to the dis-! Equity Co-operative Packing plant/ | tribution of the trucks and other ma-| ang rediscounted with the State Ban‘: | terials was that these would be and/ hod heen paid, all but some $4,000 of | remain under the supervision of the) it yefore the audit report wae fade. State Highway Commission. North! 14 wag fully secured by Liberty bonds | | Dakota has approximately one and! | 4 i | one-half million dollars worth of motor| ees of deposits from other i He said that he wanted to c ind other valuable stores that} A | ucts antes this condition be jeopar., testify to this effect at the house hear- dized.’ i | ing but that Attorney Murphy had Te-| | A considerable number of the coun-) {used to let him. | | ties of the state wil be hard hit if the} Cites Opinion. H | federal aid work that has been started | E. H. Stary of Conway, cited an} | in those counties is terminated. At’ opinion of attorney general's office; j the end of December of last year| whén William Langer was attorney! | there has becn completed about five! general, to the effect that the loan| hundred eighty-one and three-tenths | trom the Michigan State Bank would | miles of road and at that time there | uot be considered excessive if it was ; was still two hundréd forty-nine and) secured by warehouse receipts. He | two-tenths miles of road, in the varl-! testified that he had sold a Ford to; | ous-counties, under contract and to) ac ‘Townley, a Buick six to William} North Dakota public f to be used in financing this chain of banks. ee Gna tied: Z 4! oe on Meret Lemke said the Scandinavian- merican bank would be kept open if it “takes i funds in the state of North Dakota.” See ee BULLOCK URGES PLAY CENTERS BY ALL CITIES Commerce Associations Should Get Behind Movement, Declares Speaker Traces Connection Waters traced his connection with the Bank of North Dakota and the events which he sald led up to hia resignation, and madq the. declara- ition that the published resignation |in the Courier-News was not his let- | ter of resignation. { The testimony about alleged Ger- man money being given to the Non- j partisan league came as a bombshell in the crowded courtroom. | \Mr. Sullivan was asking Waters jabout a trip Jack Hastings made ‘o |New York’ to sell bonds, for which trip, according to previous testimony, he got $2,000 expense money from the Bank of North Dakota. The court reporter’s transcript Gives the statement, Mr, Waters “Hasthigs sald 1 am going down there and place these bonds with this buuch of radicals that Governor Frazier had been down there talking to and I have® a ery good friend there, Mr. Podgenstecker, from whom we got $50,000 of German money. .The money was sent to bank in St. Paul, I believe it was the Ameri. can exchange banks”, ; _“What————” ejaculated Attorney Atlantic City, Feb. '26.—Develop- ment of the community centét was the topic of Col. Seymour Bullock of South Bend, Ind., before the commun- ity center section of the National Edu- cational association. The topic was the “Chamber of} Commerce aaa promoter of the com- munity center.“ “We cannot attract.the young girl,” he said, “by an embroidery party or; @ prayer meeting. Every normal girl wants the society of a yung man and ! | | be completed in 1921. If the State! Highway Commission should be abol- ished the agreement that is had be-| twen the State Highway Commission} and the Secretary of the U. S. De-) partment of Agriculture will probably; be -held, by the legal advisors of the; Gibbs New York, Feb. 26.—Rev. Francis} Duffy, chaplain of a famous Irish over-| seas regiment, last night quelled a| disturbance started by Irish sympa-) thizers during a lecture by Sir Phil-! Deaprtment of Agriculture to have! lips Gibbs, England’s war correspond-; been avoided. As a conditon prece-! ent. He had chosen as his subject the! dent ot allowing federal aid in any! situation in Ireland, P | state the Secretary of Agriculture was/ The disturbance, the -third of its; instructed by the Congress to require| kind in the past three weeks, ‘came | each state to have ‘bona fide” state| during the time the speaker was com-| highway department. The federal: paring conditions in 1913 and thirty; government in its distribution of fed- | Waters and asked him if he would re- Lemke. a Cadillac to J. R. Waters and| She is going to have it. You must not a car to J. W. Brinton. He said that| qWarrel with her if she insists. he first t cal ‘a it | | “Society must come to the rescue. for but the last ro Mad ant a yet] The Chamber of Commerce through He testified that he called up Mr.| its public welfare committee should a ‘|-stand sponsor for attempt to provide dicount the paper and he said that|® Community center, he would if the loans were guaranteed! by reliable banks. FIGHTING IN TALK WITH HARDING. | St. Augustine, Fla., Feo. 26.--Edwin | Denby of Detroit, once an ordinary | “gob,” recently a sergeant of marines | and unless the official slate of the ' coming administration is overthrown ; Secretary of the navy to be, talked | Sullivan. H Tells of Deal | Waters explained more fully. He | said that Hastings told him that onc | Podgenstecker (he wasn’t sure about | the spelling) was a wealthy paper | manufacturer, that he (Hastings) | went to New York when the league was practically broke, that he met i ‘number of people at dinner, explain- ; ed the aims and purposes of the Non- ‘partisan league’ to them,and that | they expressed willingness to contri- bute funds, but Poggenstecker said years ago. # near riot took place. Father Duffy rose from his seat and quelled the disturbance, O[L BOOM ON N WESTERNS. DAK.-HINSHAW A full-sized oil boom is on in west: ern South Dakota, declares George Hinshaw, managing editor of Aberdeen American, who is spending several days in Bismarck. Much drilling mactinery is on hand ready for work as soon as spriug ar- rives, he declarea. Geologists claim that the same formation that exists in Montana and in which proiitaole producing wells have been bored runs through western North Dakota. Senator Norbeck, former governor, is president of one of the companies, Pittsburg, Feb. 26.—Capt. lough, 28, a government railway clerk was found beaten unconscious at the station a few moments before the train was scheduled to leave. Two pouches of mail are reported missing. “STEEL PRICES TOO HIGH.” Washington, Feb. 26.—Comptrolier of the Currency Wi s wrote Judge Gary, president of the Steel Corpora- tion that prices were excessive and unjustifiable. Siberia produces, more fur than any l other region in the world, A woman screamed and) eral aid for road construction does) ' not recognize any agency other than | the State Highwa mission. If | the State Highway Commission ceases | | to exist or is reduced to apparent con-; | dition of helpfulness federal aid will | probably be withdrawn from the state. A large number of conuties will be ‘left with contracts on their hands on | which contracts they have been ex- | pecting the federal government to pay | oné-half. ‘The following counties will j be involved—Cavalier, Barnes, Sar- ! | gent, Towner, Benson, Ransom, Mcln- ; tosh, Logan, Grant, Grand Forks, Pem-' | bina, Bottineau, Foster Traill, Pierce, | Stutsman, Richland, MeLean, Wil-; | liams, Ward, LaMoure, Burleigh and ; Morton. Exact figures are not avail: able but it is estimated that if the federal government disavows con-! ‘tracts that have been-entered into by | counties of the state of North Dakota, | with the understanding that the fed- ! eral government would pay one-half of the cost of the work, the counties will) | fail to collect in federal aid about one | and one-half million dollars|of federal \aid that they are expecting to col- ‘lect and are likely to new pretty bad- ‘ly. It is to be considered that the | Missouri river bridge project is one "> s.tinued on-Page Seven) Saree if SEAT CARR. | Washington, Feb. 26.—Patrick Mc-j | Lean, Democrat, of Scranton, Pa., was ! unseated by the house and John R. | Carr was declared elected. | ATTEMPT FAILS, Paris, Feb, 26.—-The first attempt | | sovietize. in France a large plane which took place -at Greneiveillers| Electrical works, has ended in fail- ure. China has less than 200 trained nurses. VIGINITY OF GOTO PROVINCE * Panama, Feb, 26.—Hostilities have| begun in the vicinity of Coto, on the Pacific end of the frontier hetween the two countries, it is said in inof-! ficial advices, Official confirmation is lacking. i ‘Panama, Feb. 25.—The Panama canal zone administration and the; United States legation here had not received instructios from Washington’ last night. Aside from the enthusi-; astic volunteering of the men for mil-| itary: service, chief interest centered around the question 9f arms, It was generally believed that the United States government held several thou- sand rifles and it was supposed that) the volunteers would be armed with, them. aoe It was learned, however, at the U. S. legation that some rifles taken awa! from the Panama government follow-! ing the signing of the Hay treaty were returned and that some were sold at public auction. | Washington, 26.—Immediate return of several thousand rifles seized in 1915 by the American au- thorities in the Panama canal zone| were requested today by the govern- ment of Panama which desires to use them in repelling the reported inva- sion by Costa Ricans. NOT TO PRESS INDICTMENTS. Washington, Feb. 26 epartment of justice officials have decided not to press other indictments against Sen- ator Newberry. over navy policies today with Presi-| that he would attend to the matter. dent-elect Harding. Next day, he said, Poggenstecker — | and Hastings completed the deal, ac- cording to Hastings, and the money | was sent to a St. Paul bank. BONUS PASSES | After Hastings trip to New York Z Waters said, he returned saying things | had changed, that those people were aWe | 80 depressed financially that he couldn't do anything with them. ; In explaining the Pollard matter Waters said Pollard formeriy worked | for him in the farm loan department ! of the Bank ef North Dakota, that he ‘met Pollard in a hotel at Far- g0, was invited to his room in the —— | Presence of another and that Pollar’ Washington, Feb, 26.—With the tax told him that he made the ‘rake-off provisions eliminated, the soldiers) on the lumber. bonus was reported to the senate to-; Start of Hearing day by the finance ‘committee. The Mr. Waters was called as the first cash bonus would be payable Jan. 1,) witness. Mr. Waters gave his home 1923. as Beach, N. D., Mr. Waters has been The question of taxes to meet the) sick for the last month, and attorney Senate Adopts House Bill With- out Tax Provisions—Op- ‘tional Plan Retained cost of the bill was left for the next} Sujjivan said he would’ make the Congress, Other than from striking Continued on page 3) out the tax provisions the committees ites made little changes, retaining the five! URE TO. SHOW TAKE PI OPEN HEARING At the conelusion of the house investigation hearing a pleture was taken of the court room, At- torney Francis Murphy announced to the crowd that it was for the purpose of showing the people of North Dakota that the hearings were open to the public and that there were no secret sessions 07 the committee in conducting the hearing. Senator Baker, Nonpartisan and Representative Johnson of Steele and Griggs counties Non- partisan, were called to the wit- ness stand to testify that during their presence the hearings were open to the public, optional provisions. Use of the interest on the $10,000) 000,000 of the American war loans to the allies for financing adjusted com- pensation is one of the plans under consideration by Congress. This was disclosed , today when they soldiers bonus bill was favorably reported. Senator McCumber, Republican, ‘North Dakota, in charge of the bill, planned to call it up in the senate at the first possibility, probably next week. SIGNS WINSLOW ACT. Washington, Feb. 26.—President Wilson signed today the Winslow bill authorizing partial payments to rail- roads under provisions of the trans- portation act.