The Bismarck Tribune Newspaper, February 28, 1921, Page 1

THE BISMARCK TRIBUNE Last Edition 921 PRICE FIVE CENTS BISMARCK, NORTH-DAKOTA, MONDAY, FEB. 28, 1 RAIL DISASTER FATAL TO 42 HOUSE COMMITTEE TELLS ATTORNEYS T0 REFUSE SUMMONS OF SENATE INV Evasion of Questioning and Withholding of Records Charged EXPLORE CONNECTIONS ! Committee Seeks’ to Draw Re- lations Between Qgicials and Private Business Efforts to show that. state employes! in high places used their power for their own personal interest were made in the house investigation of state in- dustries today. The examination along this line centeréd chiefly around 0. E. Lofthus, state examiner, and F. W. Cathro director-general of the Bank of North Dakota. Important p of the hearing today were: - Honse committee adopts resolu; tion instructing attorn fuse to appear ‘before vestigating committee t hoon Charging witnesse: : employment have hindered investi- gation by dilatory tacties, Announcement’ that, committee would meet in courtroom at 7 oclock tonight, Efforts to draw connection be- tween rediscounts de by First National Bank of Bottineau, in which F, W. Cathro is interested, in the Seeurity “State Bank of Glassjon, - and a corresponding amount of money loaned to that bank by the Bank of North Da- kota, of which Mr. Cathro is di- reetor-general, Showing that Congressman J. H. Sinelair’s land company had heavy loan in Tolley State Bank closed, and that this bank had large redeposits 2nd loans from the Bank of North Dakota, Efforts to shaw that Bank of North Dakota made heavy loans to Peoples State Bank in Grand Forks when examiner's _ report made severe criticism of. its con- dition, that hank loaned heavily to league enterprises, . Efforts to show that McLeod State Bank, of. which 0. E. Loit- hus formerly was interested and in which his wife and brother- in-law held stock profited through Senate Committee Asked ESTIGATING BODY to State the Information Desired of House Attorneys The resolution adopted by the house investigating committee, at its morn- ing session, when it charged witnesse* employment with hindering| gation and instructed its attor- neys not to answer senate investigat- ing sudpoena, is as follows: WHEREAS, The investigation conducted ‘by the House Audit Committee has been hindered and delayed by the refusal to produce puvlie records and documents es- sential to such inquiry, and by the dilatory tactics and evasive atti- tude of certain witnesses in the public empioyment: and, WHEREAS, It appears that, in furtherance of such policy a com- mittee appointed by the senate to investigate into the character of the Bishop, Erissman and Co, re- port, has summoned to appear be- fore it as witnesses the counsel committee, though it is well id counsel have no ledge of .the mat- ithin the scope personal ters and things of the inquiry being made by said senate committee: and, WHEREAS, There remain but four days in which this committee must completé its investigation and compile and s.abmit its ort to the, house of representatives, to which end it is nm ury that the entire time of the counsel em- ployed by this committee be de- Rn eee SUPREME COURT UPHOLDS FARM LAND LOAN ACT United States Tribunal Dis- misses Proceedings Against Federal Bank McADOO WROTE BRIEF Loans Held Up Since May, 1920, May Now Re Made By voted to such matters and things: NOW, THEREFORE, BE IT RE- SOLVED, That the said .counsel so employed by this committee be, and each.of them hereby are di- rected and instructed to devote their entire ‘working time to, the completion of this investigation, and giving counsel and advice in the preparation and compilation, of the report of this committee; and to that end they, and each of them, are hereby directed and in- structed to disregard the summons of subpoena served upon them, and each of them, afore-mention- ed, until the further order of this committee, AND BE IT FURTHER RE- SOLVED, That the forgoing order shellsremain in full foree and ef- fect until such time as said sen- ate committee, through the proper channels, shall state to this com- mittee the testimony sought to be elicited from said) counsel, and shall satisfy this committee that such testimony so sought to be elicited is within the scope of the inquiry conducted b d senate committee, and as pr ribed by the resolution of the senate creat- ing such committee, Dated this 28th #ay of February, 1921, Sec. House Audit Committee. POSTMA STER IS UNDER ARREST Fargo, N. D., Feb. -Carl Baglien postmaster at Lignite, N. D. has been arrested on a federal warrant sworn to by W. M, Pearson. postoffice in- spector, charging of the postal regulations in misappropriation of funds. It was announced by’ feder- al authorities yesterday. Baglien waived: examination when arraigned before RK. 1. Alopkins. United States commissioner at Minot. and was held under bonds to the next term of federal court at Minot. The shortage is alleged to amount — to $1,976. z UNIONS DO NOT eee HAVE CLUE T0 MAN WHO SHOT U.S, MAIL CLERK Inspector Jackson Recovers Part of Loot Secured in Hold-up of No. 2 HREE WOMEN ARRESTED ‘Bandit’s Name Delbert Smith, ‘made’ today by I Declare Postoffice Authorities St. Paul, . 28. Postoflice author- ities expect to capture early this week the bandit who held up No. 2, Febru- ary. 18, at Northtown Junction, near Minneapolis, according lo a statement ector Jackson. He declares that the man is Delbert Smith. In the hold-ap ZH. Strong, Minneapolis, was mortally wounded. Three women, mother, daughter and cousin, were arrested late Satur: day by Federal officers followiag. the recovery of $40,870, substantially the entire contents of the registe mail’ pouch stolen from the east-bound North Coast ‘Limited at Northtown Junction, Minneapolis, the night of February 18. They Mrs. Alice ITendr 40 years old; ‘Mrs. Grace MeDor and Mrs. llizabeth Anderson, 27 years old, a cousin, Thirty hours after the which resulted in the fatal shooting of Z%. FE, Strong, Minneapolis mail; clerk, and the wouading of his two mpanions, BE. L. Jackson, postoffice) inspector in charge cf the case, knew that the crime had been committed Delbert Smith, Del Sommers, | , P. Sommers, 2) years old, and ties of eight dr ten deputy centered aout the corner of Asbury avenue and Char! street, where th mony was found in a locksv in the basement of an apartment build- ing. years old, her daughter, inspector Find $40,870 in Cash, Inspectors ‘Mark yan, George Drake and R. Criggs went to the apartment block yesterday morning and searched the locker belonging to Mrs, Anderson’s apartment, finding, | they declared, $40.870 strewn on the) floor, all of, the “money” being bills varying in denomination from $1 to $20. They then waited until Mrs. An- derson returned about 1. P. M She was arrested and taken to the Ram-} | WHEAT DROPS od hold-up, | y ON EXCHANGE, \ Chicago, Feb. 28.---Whest' prices de- clined today largely as a result of} sales of wheat to go into storage here | and because of larger a als from southwest. Moreover bdewrs contend: ed that wheat. values were out of pro-j portion to other grades, IJuitial quo- tations of 1 cent lower followed by; further setback. ' Subsequently green bug advices! from the southwest, led to an upturn, The close, however was weak. | STARTS PROBE INTO BUILDERS ASSN SCANDAL Anderson Launches Investiga-' tion of Charges Against Pollard, Former Agent SUMMON LUMBER MEN Cross-fire of Attorneys Fails to Shake Testimony of Account- ant Aultman W. A. Anderson, assistant attorney! general, who is on the order of the senate A. investigation committee and Paddock, secretary of the In- ul Commission, making an in- stigation into the charges of IF, 1.) Pollard, former purchasing agent for the Home Builder's association, com-, H. menced work this morning on the; case, He instructed to issue a war- evidence M rant if suflicient earthed to warrant it. id to be out of the te. Will Question Officials. This investigation grew cut of the charge made by J. R. Waters, former manager of the State bank that Mr. Pollard had told him that he was ting “his” out of all purchase: Representatives of the following lumber companies, all of those which did best with the association, have! deen summoned to appear late this af- erncon before the committee: ! Burkholder Lumber Company, Min-| neapolis. Learned Lumber Company,;Minne- apolis. was un- Pollard is WANTS TO FORTY-TWO BODIES TAKEN FROM WRECKED PASSENGER TRAINS OF NEW YORK AND MICHIGAN ROADS Derailed Train East Bound Stops at Crossing, With Two Cars Straddling Track on Which West-Bound Limited Has Right of Way—Engineer Declares He Received Wrong Orders— Towerman Says Block Was Closed. Porter, Ind., Feb. 28—Forty-two bodies had been collected ‘this merning from a wreck last night between limited trains of the Michigan Central and the New York Central Lines that crashed at a crossing. _ Two of the coaches of the New York Central train were de- railed and piled on top of coaches of the Michigan Central train. KNOW HOW NAME GOT IN LEMKE FUND Morton Anderson Declares He Never Contributed Though Name Given OTHERS ARE NAMED An ‘explanation is sought by Morton ? Anderson, of Warwick, N. D., for the listing of a contribution to the “Lemke fund” being collected by the Courier- News. In a letter to Theo. G. Nelson, secretary of the Independent Voters Aseociation, he declares he never con- tributed to the fund. In a letter to Nelson he enclosed 2 clipping from the Courier-News of Feb. 24, which contained the follow- ing: To The Editor. Inclosed herewith find $11 for the Lemke fund. + Believing in the deter- | “Block Closed” ~ | A statement of Towerman | J. Cook, stationed at the crossing, decla ed that the block two miles away was set against the Michigan Central train, while it was left clear for the New York Central train. | Railroad authorities declare that W. F .Long. engineer of the Michigan Central train, who escaped unhurt, suid that: he had received a clear signal and liad checked it with his fireman, Stops at Intersection. | When the Michigan Central train | hit the tee rail 600 feet from the cros- sing, the engineer receiyed the first. intimation that the crossing was ‘closed. ‘The train was derailed and bumped along the road bed until it | straddled the New York Central track and stopped. The third and fourth coaches were at the track intersection An instant later the New York Cen- i tral flyer came speeding along abcut fifty miles an hour and burst through the wreck. All the passengers in the Michigan Central train except those in the i. death coaches were unhurt outside of a severe shaking. All of the New ork Central train passengers were unhurt, Receive Dead For some reason not known almost all of the dead: received fatal wounds in the head. Some were decapitated, mination of the Attorney-General to which prosecute the important cases now) of 26. {8 responsible to indentity 9 out pending, and thoroughly disgusted with the obstruction tactics of the low- er house of our legislature in attempt- ing to thwart the will of the people! Hospitals and private homes at Michigan City and Gary, Tiid., received the injured. Bardwell-Robinson, Fargo. | Admit Responsibility H. G. Behrens Manufacturing Com- (all of Warwick) we take pleasure in, An official statement issued from pany, Fargo. ; contributing to the Lemke fund and if the office of the chief \officials of the relations with Bank of North Da- hot Hebron Fire and Pressed Brick Com-| More is needed come again. | Michigan Central of Chicago declared i John Orchard, Matt Birkeifan, Ray the Michigan Central engine crew ap- | sey county Later yeterday afternon United LIKE TREATMENT Government Testimony of Carl Lyngstad, state treasurer, that since Bank of North Dakota began registered checks telegrams and letters have come from ‘all over the count wanting to know “why North kota was broke.” Mr, Lofthus admitted that cer. | tain. paper that was condemned in his report to the supreme court. was still in the Scandinavian American bank 22, 1920, * Mr. Cathro, on the witness stand, wasasked if he was interested in the First National Bank of Bottineau, and. he said that he was. This bank it developed on questioning, had dis- continued about $11,793.60 worth of paper with the Segurity State Bank of Glasston, on »\Pembina county. Further examination’ revealed — that the Bank of North Dakota had on re- deposit with this Glasston bank practi- cally the same amount as the redis- Continued on‘ page 2) on April HARDING ON JOURNEY BACK 10 MARION, 0. Home Folks Will Bid President- Elect Godspeed at Fare- well Gathering On Board President-Elect Harding's Special Train, Feb. 28.—With his preparations for the launching of his administration about complete, Presi- dent-elect Harding was on his way back to Marion today to receive a for- mal farewell from this home town be- fore entering the White House. The president-elect special train which left St. Augustine last night will reach Marion tomorrow morning. WEATHER REPORT. For twenty-four hours ending ‘at noon, Feb. 2: Temperature at 7 A. M Higbest yesterday . Lowest yesterday . Lowest last night Precipitation Highest wind velocity Forecast. 4 For ‘North Dakota: Generally fair tonight and Tuesday; warmer in the east portion tonight and somewhat. colder in the north and west portions Tuesday. Tokio, Feb.‘ 28.—Papan will insist on its mandate for the Island of Yap, which is contested by the United States before the League of Nations council, according to. authoritative in- formation here tod Buffalo, Feb. 28.—Several thousand persons were driven from their homes today when a 50 exploded. Several were hurt. 5 mentalities of the government.” i /' gdvernment brief as special assis¢- sallon gasoline tank | Washington. Feb. 28-—The United States supreme court today held that the Federal Farm Loan act whereby ‘land banks have been established was ; constitutional. Dismissing injunction proceedings brought by Mr. Smith, the court al held that; Congress had the authority to exempt the bonds of the hank from taxation. Held up Loans Farm loans aggregating more than 0.000000 have heen held up since May 1920 as a result of the suit in- stituted by Charles E, Smith, a stock- holder in the Kansas City Title and Trust Comnany. to test the validity of the Federal Farm Loan Act. An- nlications to this amount were pend- ing when Commissioner Lobdell an- nounced at a conference of farm loan officials here that official approval would be withheld pending a decision of the court. Officials placed the total amount of loans to farmers held in abeyance hy the suit at many times $50,000,000, however, the receipt of applications having stopped with Commissioner | Lobdell’s announcement. On March 1. 1920 the Farm Loan Board report- d that $182,897,000 nad heen advanc- d to 75,384 farmers and that appli- cations from 179.734 nersons .then pending totalled $471.000,000. Suit Was Apneal The suit in the Supreme Court was in the form of an apnenl from lower! court decisions refusing to issue an; ininnction to restrain the Kansas Citv! | Title and Trust Company from invest- ing its funds in bonds issued by the Farm Loan Banks. The Government the Federal Land Bank of Wichita, Kanss. and the First Joint Stock Land Bank of Chicago, on their own application. were mace defendants in order that the entire question, might be settled finally in one suit. Counsel for Mr. Smith asserted in| substance that the Farm Loan Act was lan exercise of power which congress did not possess under the constitution Further ground for attack was found; in the exemption of the farm loan} securities from taxation as “instru- itted Brief William G. McAdoo, former secre- dary of the Treasury, submitted the ant to the Attorney General, in the argument of the case. He asserted that the banks were treated as “fiscal agents” of the government and that Congress, had the clear right to beat up such institutions. Since asistance to agricuiture per{ains to the general welfare, it was argued, Congress could } have made direct appropriations for the purpose in view, but chose to create. these special agencies to pro- vide the necessary funds. With regard to the tax exemption feature, Mr. McAdoo contended that it was “simply a question for Congress to determine when the usefulness of its agencies would be enhanced by i exemption.” BY RUSSIANS American Federation of Labor Bitterly Attacks Soviet Government Washington, Feb. can Federation of Li ment called on organized labor to pro- test against the ruthless prosecution and. slaughter of labor unionists in Soviet Russia. Scarcity of Good, New York, Feb. 23,.—Letters from Alexander Berkman, deported to Rus- sia, say according to a foreign lan- guage newspaper, that Russia is not able to nourish its population. Anti-Soviet Forces Active. London, Feb: 28.—-The Graphic /pub- lishes reports that opposition to the soviet regime is taking drastic steps to establish itself. ENTER T 1FLES. Constantinople, Feb. 28.—Bolshevik troops numbering about 000 entered Triflis Friday evening, dispatches say, for a few hours there, was looting by local forces, but later the soviet gov- ernment began to preserve order. ‘The anti-soviet forces that occupied Evivan, capital of Armenia, has been ousted from control and the Bolshe- viki have ished a soviet gov- ernment.’ Iph De 27 min- Los Angele: Palma won the fift in utes and 53 seconds, FAIR GIRLS WIN FASHION C ners. t Over 2000 girls were willing to be selected the sylvania Hotel, New York City. But only 42 were needed and when the picking was over, blonds and 20 brunets were among the su tight, Frances McCann, one of the brunets. States Marshal Joseph Wessel and Deputy: Marshal Stephen Picha went to Wildwood and arrested Mrs. Alice Hendricks and her daughter, Mrs.| McDonald. Althcuzh they searched the cottage thoroughly no more of the! loot could be found, they stated. The two women were taken to the Ramsey county jail. Valise Is Recovered. The operatives also have th» valise in which Smith, or ‘Sommers, cram- med the registered mail before he dropped from the mail car as it neared the Minneapolis ation. : According to Chief Inspector Jack- son, Smith, under the name of Som-; mers, had been living with Mrs, Mac- Donald, in Apartment 8 of the flat building on Asbury avenue. Her cou-! sin, Mrs. Anderson, occupidd Apart- ment ss the Mrs. Ander- son, it is understood, is the wife of a railway postal clerk, byt is separated from her husband, Mrs. Hendricks also is said to be the wife of a rail- way mail clerk. Albert Lee, janitor of .the block, stated last night that the last time he had seen Mrs. Me- Donald in the building was a week ago yesterday, the day following the train robbery. The supposition of the in- spectors is that since that time she has been living with her mother ir the Wildwood cottage. Chauffeur Is Found. Inspector Jackson said that jhe chauffeur who drove Smith from his apartment to the Wildwood cottage in his car at 4 A. It. Saturday mern- ing, about six hou after the rob- bery had been committed, had been found, and through him the final re- covery of the loot was accomplished. Smith, according to the authori (Continued on page 3) a appeared. pany, Hebron. i Denton-Russell Lumber company, Portland, Oregon. if The representatives were instructed to come prepared with records show- ing all transactions with the associa tions. t Expect Fireworks. { The fireworks of the afternoon, how- noon, are expected to be set off when Attorneys Murphy and Sullivan of the house committee take the witness stand. ! Mr. Paddock met with little success Saturday afternoon in his bitter cross examination of H. lL. Aultman, ac- content of Bishop, Brissman & Com- pany, in an attempt to discredit the audit of the Drake mill. The exam- ination was highly technical and as, ‘ear as any of the committee mem- bers could guess did not in any way concern the profits and loss records of the Drake mill. (Mr, Aultman has been" recalled for this afternoon. (Mr, Paddock attempted to show that Mr, Aultman's notation on the report) that the $936.40 paid the Kquitable) Audit company for putting in. effect! } the bookkeeping system in the mill did not appear on the records was false and intentionally so. Mr, Pad- dock showed Mr. Aultman, after he had sworn that it was not on the rec: ords, two. pages, on which the item Mr, Aultinan swore t he had not seen them. He then discovered one of his marks on one of them and he then maintained that the item was not there when Bishop, Bris made the examination. This caused a titter among the administration forces. Testimony Substantiates Accountant. | Mr. Paddock excused Mr. Aultman for a few moments and called Mrs. (Continued on page 3) RAR RRR (ONTEST ful. Left, Ruth A for the big Fashion Revue on the roof of the Penn- 22 lexander, one of the blond win- Richardson, John Lollis, 50c; Fred Dutee, 50¢; Morton Anderson, John Mclver, Heine Anderson, Alfred New- house, Ludevik Anderson, and John Seckinger, Warwick. Denies Any Part His letter follows: Warwick, North Dakota February 25, 1921. Mr. Theo. G. Nelson, Sec. I. V. A. Fargo, North Dakota. Dear Sir: Am enclosing herewith “the Lemke fund page” from the February 24th is- sue of the Courier-News with item to which I wish to call your attention marked in red. “Now I fave interviewed the follow- ing John Orchard, Ray Richardson, John Lollis, Fred Dutee, John Mclvar, Heiene Anderson, and Alfred New- house, who are supposed to have parti- | cipated in denouncing the legislature, | and also contributed to the fund to the amount of $11.00, and we all absolute- ly refute any connection with it what- soever. “Now what the men mentioned above and myself would like to do is to find out who the originator of this is, and what a stunt like this would be con- strued to be. (signed) MORTON ANDERSON Morton Anderson, it was said, is an I. V. A. member. “SMOKE OUTSIDE” RULE IF BILL IS GIVEN O. K. Jf Governor Frazier signs house Dill No, 51 it will be unlawful “to use tohacco by smoking in cigars, cigaret! pipes or in any other form in the dining room of any hotel, restaurant, or eating room. or in any street car or railway coach, except in rooms, coaches or compartments specially provided for that purpose.” This bill, commonly known as moking bill, passed the the anti senate Saturday afternoon, to 15, and it was immediately taken to the house where the house con- curred in the senate amendments, 87 to 26. The senate amended the bill by ’making the penalty a fine of $5 to $25 instead of a minimum of $10 and maximum of $50. Any person violating the provisions or any proprietor knowingly permit- ting violation may be fined, the bill provides. It was to go to the Governor today. Senators opposed to the bill in the senate made an effort to “Jaugh it out” by providing amend- ments including chewing of to- bacco, and including the senate and house chambers. The . bill was introduced by A. J. McLarty. FOURTEEN PERSONS HURT. Omaha, Feb. 28.—Fourteex persons were slightly hurt in a collision be- tween the Union Pacific and the Mis- souri Pacific passenger trains. parently failed to observe that the | crossing signal was put against them. ‘The engine of the New York Cen- tral train broke through the wooden coaches with such force that it con- tinued far down the track.. Tho small blaze which started in the wreckage was quickly subdued. i ~ Hit Diteh First | Officials of the New York Central | Said that the automatic recording de- vice in the crossing tower showed the New- York Central train hit tho automatic tower signal station three miles hack, just 20 seconds ahead of the Michigan Central, thus giving the |New York Central the right of way. | The de-rail at the crossing is auto- | matically set when the block system | was set against the train at the block | tower two miles back from the cross- ; Ing. GOVERNOR IS - SATISFIED WITH EASTERN TRIP Says All Was Accomplished That he expected Would Be Accomplished | Governor Frazier, who returned Sat- urday afternoon from Washington, ! where he and Spurgeon O'Dell inter- | viewed labor union heads with regard ‘to state bonds, declares that he ac-~ complished all that he expected. “Our mission was not to make a sale of the bonds over night, but to | Secure the cooperation of the heads of labor unions. In that we succeeded. The executive committee was very fair and sympathetic, with the result that they referred the matter up to the general conference of union of- 'ficials. The general conference passed a resolution urging the various unions to take up the mattes of backing up the organized farmers and workers of North Dakota. “I am satisfied with what we ac- complished. Progressive people the country over are greatly interested in gur movement and are willing to buy our bonds.” ASK PROTECTION, Chatanooga, Feb. 28.--Alabama far- mers have appealed to the federal gov- ernment for protection against the at- tacks of night riders who seek to force | them to join farm tenants unions. | WANTS FURTHER HEARING. Detroit, Feb. 28.—*fenry Ford chairman of election committee re- questing further hearing on the Ferd | Newberry contest. San Diego, Feb. 28.—Leo Leigo won the professional: golf tournament w a score of 270 strokes tor 72 ho! believed to be a new world’s record.