The Bismarck Tribune Newspaper, March 16, 1921, Page 1

THIRTY-NINTH YEAR FARGO BANK LEAGUE STORES NOW OWE STATE OVER $46,000 Admitted Heavy Loss on Little Drake Mill May Be Boosted Thousands JOHNSON’S STATEMENT Receivership Step Taken in In-: ! |Soviet Minister of War Asserts terest of All, Says Secretary The little Drake mill, valued some $28,000 and operated a little over a year by the state at‘a loss of from $17,000 to $32,000 may have to shoulder an additional margin in the’ red through the receivership into which the Consumers United Stores com- pany has been thrown. This \ company according to the statement of the liabilities filed with the court at the time the application of voluntary receivership was filed, still owes the state $16,511 on flour consignments. Admitts Loss The ‘Industrial commission admits a loss of $17,000 on the Drake mill and declares that it was incurred through the drop in the price of wheat. which forced it to suffer a big loss on the flour sold by consignment. Herbert A. Temple of Webb, Temple & Co., ac- countants, testifying before the house investigation committed, maintained that the loss was over $32,000. | The petition asserts that the assets of the company are $981,000 and the liabilities about $300,000. W. G. Johnson, secretary of the company, declares that the receiver- ship was requested, to protect the rights of all parties concerned. He says the company has $700,000 worth farmers for -the certificates. Owe Bank $100,000 The Consumers Stores company, ac- cording to the petition, owes the Scan-: ‘ dinavian American bank $100,000.. The action of the cofmpany in ask- ing for a receivership was precipitated, says Mr. Johnson by the garnisheeing of the company’s account in a Fargo bank by the Ransom County Farmers bank. of Lisbon, a League-controlled organization. Regarding the move, News says: : “The Consumers’ United Stores company -was organized in 1917. It was known as a “Brinton promo- tion,” J. Wells Brinton having been a leading spirit in pushing the work. In the beginning the company was; not a true co-operative, signers to/ the capital stock merely purchasing | the right to: buy at the low prices; which it was intended to charge pur- chasers who held these contracts. * | “About two years ago it became: necessary to take drastic action io| save the company from the disorder | * in which it was found Mr. Brinton had | involved it. H. A. Paddock, counsel for the company, virtually took con-! trol, the headquarters were moved to| Fargo, and the company became a! true co-operative, though only after a; long fight with the secretary of state.” | the Courler- at) E BISMARCK TRIBUNE | Last Edition | BISMARCK, NORTH DAKOTA, WEDNESDAY, MARCH 16, 1921 ‘SHAW AGAIN IN | RACE FOR MAYOR) | ‘Minot, March 16—W. S. Shaw, ; mayor of Minot for 10 years more or | less stormy, has announced that he is again a candidate. Commissioner E. ‘C, -Malm is Mr. Shaw's opponent for | the presidency of the commission, TROTZKY SAYS REVOLUTION IS i i That Petrograd Is Im- pregnable | | ! | | ‘SAYS LOSSES ARE SMALL, Russian-Pole Preliminary Peace’ | ‘Terms Are Reported Signed London, March 16—By the A. P.— | Leon Trotzky, Russian Soviet War minister, declared in an interview giv-' en in Moscow that “all talk of an up- ‘rising in Petrograd.and a bombard- jment of the town is> silly fiction,” says a wireless dispatch from the So- veit capital today. “Petrograd is just as impregnable against a counter-revolutionary' coup | d’etat as it is to the Kronstadt fort- ress,” Trotzky declared. pe “Liquidation of the uprising had been dragged out because we wished to avoid severe losses not only to our troops but to the insurrectionists in the Kronstadt garrison. Up to the Bresent our losses have been insignifi- cant.” a i Poles Make Peace will be signed Friday. BRITAIN RESUMES TRADE London, March 16—By the Asso- ciated Press—The trade agre under which commercial relations will be resumed by Great Britain an | Russia was signed here today by rep- resentatives of the two countries, ALLIES DEMAND - MILLION MARKS | FROM GERMANY | Says Money Must Be Forth-! - coming by March 23 | \ Paris, Mar. 16.—By American Press | —In its note to Germany demanding the fulfillment of Article 235 of the: peace treaty notified the German gov- | ernment it must pay — 1,000,000,000 | gold marks before March 23, it was | announced today. | The money must be deposited in the | Bank of France, Bank of England and; the Federal Reserve Bank of the | United States. i UNSUCCESSFUL These four legal figures in the Hamon trial present a story Riga, Letvia, March 16—Prelimi- of interest aside from that in the testimony and principals. J. B. nary peace terms were signed by the Champion, upper left is defending Clara Smith Hamon while his of the notes originally given by the ‘Poles and Russian and the final terms twin brother, Tom Champion, upper right, sits as judge. Lower left is J. H. Mathers, prosecuting attorney who seeks to free the ‘defendant. He was engaged as her attorney before his election as Lower right is Prince Freeling, attorney general of ement Oklahoma, appointed as prosecutor in Mathers’ stead. proscutor. WANT MURPHY ~ 0 GIVE SPEECH Minot, March 16.—Plans are being made to have Francis J. Murphy one the attorneys: of the house investiga- tion committee, give an address be- fore a Minot mass meeting. BANKER’S CASE ISTRANSFERRED T0 COURT HERE Richards to Be Tried in District Court J. D. Denial that any representative of | the Chicago financial house ERAS EEA Ca ; _—_—- —__——. PRICE FIVE CENTS TELLER ARRESTED HAMON MURDER CASE EVIDENCE Court Recesses While Attorneys Prepare Long Argu- ments EVIDENCE ON A WILL Newspaper Man Says He Be- lieves Hamon Left Clara Money | | | Ardmore, Okla., March 16—Intro- jduction of testimony in the trial of Clara Smith Hamon for the murder of Col. - Jake L. Hamon, Republican and millionaire oil and railroad manf ; and court was recessed until 3 p. m. to permit Judge Thomas W. Cham- | pion to prepare his instructions to the jury. ‘court had prepared his charge by the ~ ALLSUBMITTED national committeeman of Oklahoma, | ended at 10:23 o'clock this morning: | Each side was alloted five hours for, | argument and it was said that if the; SCANDINAVIAN-AMERIGAN BANK | TELLER CHARGED WITH TAKING - $9,000: SHORTAGE OF $70,000 Frank C. Heaton, Teller in Bank, Said to Have Confessed to De- falcation and Signed Confession—Total Shortage May Go Beyond Estimate of Receiver of the Bank Which Is $70,000 to $80,000—Employe Said to Have “Doctored” Savings Ac- count Books ; , Fargo, March 16—Frank C. Heaton, former teller in the Scan- jnavian-American bank of Fargo, which closed several weeks ago, was arrested last night charged with embezzlement of $9,000 of |the Bank’s funds. He was released on $20,000 bonds. | | L. S. Reep, of the state bank examiner’s office, who is re- jceiver of the bank, said today that a deficit of $70,000 to $80,000 had been discovered by Will C. Greene, states attorney, stated that the specific charge against Heaton would remain that of em- bazzling $9,000. |AMERICANS ARE | . “§PENDTHRIFTS” Philadelphia, Mar. 16—W. M. Lewls, director of the savings de- partment, United States treasury, Left Employ | _ Heaton left the employ of the bank in January, 1921, when a check re- vealed a shortage of about $70,000, of- ficials of the bank said today. This j Shortage was not made public at the ie. Heaton had been in'the employ of | | time court reconvened they will be: | gotten under way immediately. ! | The court will charge the jury on: three points: murder, which upon con-i | viction, would carry a sentence of life; |imprisonment or death; first degree! | manslaughter, the sentence for which! would be from four years to life im. says America is the worst spend- thrift nation ever known. CONGRESS WILL jthe bank about six years, mostly as j teller. Heaton today declared that he was innocent of the charge of embezzle- ment. \ . Frank C. Heaton, who was arrested jon charges of embezzlément in Scan- | slaughter, | F. P. Freeling, states attorney-gen- eral in charge of prosecutions, said that H. H. Brown, special prosecutor ; would make the opening argument ‘and that he would close for the state. |W. P. McLean, of Forth Worth, Texas, leading counsel for the de- fense, announced three of the de- jfense corps of six attorneys would i speak. \ Mr. ‘had submitted a proposal to the state | counsel to permit the case to go to the his charge but that the state had de- clined. Throws Out Evidence The court before the end of the tes- timony, ruled inadmissable as-.evi- dence a number of letters Col. Hamon had written to the defendant. The de- fense had its exception noted and for- mally rested. The state began MANY WRITE OF PROPOSED | tanied an interview with Clara Hamon at Chihuahua City, Mexico. , i ! prisonment; and second degree man-! | McLean said that the defense jury immediately after the judge read | ‘presentation of its: 'rebuttal testimony . by introducing; BE CALLED TO | MEET APRIL 41 | Leaders, Agree With Harding dinavian American bank, Fargo has ; xonerated anyone else connected with bank according to O. E. Lofthus, state examiner, |. Heaton, Mr. Lofthus said, confessed ito defalcation, assuming sole respon- jsibility himseif. inne method used by Heaton Mr. jus said, was to tear pages out of on Date of Special ithe loose-leaf register in the savings | Session department where he was teller. The | detolesticn was first discovered by one _— !examiner of Lofthus’ office who re- | ‘Washington, March 16.—April 11 | Ported to bank officers and an investi- ; was selected as the date for the gation started the examiner said. special session of the 67th congress, ; y ‘Tried to Make Good |the first to be held under Presiden: | Harding's. administration. The ane After the shortage was discovered \ 4 . and Heaton confessed, the examiner | nouncement was réceived with general| said, Heaton attempted to make good. satisfaction by senate loggers, most|He signed over property estimated to . | of whom said they preferred that date | be worth $15,000 and be was given a to April 4, because of the additional, /(1/e time in an effort to try to eet week {it gave them to arange plans, el” He Was Ghaletetd aeee | for the coming session. ‘he shortage discovered a short time Senator Lodge of Massachusetts, ' before bank closed, Mr. Lofthus sald, ;the Republican leader, notffied the and Heavon tried to make it up. When | Senators of the president's decision! iad 4 brenid racciat {he failed the bank closed its doors. late yesterday after he an enator | Undrwood of Alabama minority leader Has Not Full Report Leading Articles in National Magazines Praise Liberty t Memorial Plan | | The proposed memoiial historical park at the state capitol which ‘is as- ; Sured of completion now by the appro- | priation made by the last legislature iis attracting wide attention. j One of tht leading articles in the ‘last number of landscape architec- ‘ture, a quarterly magazine published | by the American Society of Land- is an interesting ar- | ( j scape Architects, from |ticle by William Hay Williamson on/ iels replied: “Did you ever see a taxi | He said he saw Clara Hamon first on the night of December 18, 1920 and saw her twice later. Thinks There Is a Will . Asked regarding any statement the defendant may have made regarding @ will left by Hamon, Blair said he; j brought up the subject and he be- lieved there was a will and it was be-| |ing kept hidden until after she might; be_tried. | ! Erwin C. Daniels, a Dennison, Tex.,| service car driver, said he had driven! ! Clara from Denison to Dallas and that | on the trip he had seen a pistol in |the defendant’s handbag. i The spectators laughed when Dan- had returned from the White House. N.Y, CENTRAL'S SKILLED MEN REFUSE CUTS Join Common Laborers in Ob- jecting to Proposed Wage Decreases Mr. Lofthus said that he had not had full report from receiver Reep and therefore was unable to make complete statement of case. He said that Heaton had denied that he speculated with money saying he simply spent it. Officers of bank are unable to find any speculations so far Mr. Lofthus said he had no report |that the shortage was completely echecked up. He thought it might go j beyond $70,000 or $80,000. but didn’t doin it would reach a hundred thous- and. When the examiners found that Heaton was short they asked him how it could have been discovered and he is said to have declared that It was “no one could discover it.” only due to the fact that there was a New York, March 16—All skilled! slight error in figures that led to the 'driver who wasn’t?” when Mr. Me- i Lean, on, cross examination, asked! him if he were not always in a re-| ' whom the Bank of North Dakota had | “Recording History in Landscape.” WILL MEET APRIL 16, ;made a loan of $1,000,000 had been in ' q Grand Forks, March 16.—The North | Bismarck in connection with the loan | Unusnal Designing. SOLDIER TRIO, DESERTERS, IN CUSTODY HERE One Arrested After Begging Funds on the Streets of City Chief of Police Martineson today was awaiting word from the Commanding Officer of Fort Snelling, Minn., that he would send guards to take custody three deserters from the ed States army. They are Ernest Knoblock, head- quarters troops, ~Fourth division; Parker Crum, Battery C, 78 Field Ar- into + Unit- | Dakota Employers association will | | meet in annual session at Grand Forks | ! April 6. About 200 members are ex- | pected. t 5 F. Holmboe of Bismarck is one of the vice presidents, THREE. JOIN TOWN CRIERS Enter Advertising and City: Booster Organization The Town Criers club of Bismarck has three new members today: They are Frank Hedden, Birlea Ward and! E. E. Clausen. The new members tillery, and Bermen Watson, Battery were initiated into the organization G, 16th Field Artillery, according to the names they gave the police. The soldiers, lacking money, began to beg funds from people on the streets, and it was this that led to their arrest. One of them sought money from Chief Martineson. After talking to him the chief allowed him to go on and watched the soldier join two pals in an alley. All were taken into custody, and after consid- erable questioning the story of their desertion came out. The trio had beaten their way on trains from Camp Lewis, they said. A love affair is said to have caused the desertion of one. One of them said he was in jail in Billings, Montana, .for two weeks but the police were un- able to get anything out of him and let him go. ‘ VACANCY IN NAVAL SCHOOL Senator B. F. Ladd has just been informed that there is a vacancy for the appointment of midshipman at Annapolis. Examinations to be held April 20. Any boy eligible in North Dakota -and desirous of appointment to the position, Senator Ladd shall be very glad to. aid, and to furnish | following the monthly dinner of the jclub at the McKenzie hotel. The Town Criers club is develop- jing plans for community advertising one of the objects of the club, with | the opening of spring. It is probable that the booster tours which visited more than a score of towns in the vicinity of Bismarck last year will be resumed, and it is expected that all organizations in the city working for civic betterment will join in a big Fourth of July celebration. |CONDEMN KAS. MOB ACTION St. Paul, Minn. March 16,—The most aggressive anti-League papers of the country all unite in condemn- ing unmercifully the action of the Kansas mob which tarred Nonpartisan League speakers in Barton county. was made today by bank officials. No word of any kind was received from the Chicago house, they said, because the loan was paid when due. It had been stated in the Tribune that it was understood a representative of the Chicago house has been in the city conferring with officials of the bank. A check for $3,095.24 was given tc the Publishers National Service Bur- eau yesterday, representing the first payment. of the advertisements the Industrial Commission is carrying in many papers throughout the state. The voucher stated that there were 51 in- sertions of the advertisements, some being made more than once in a paper. The money was paid from the legis- lative appropriation of the Industrial Commission, a fund which now amounts to about $165,000. BLRCTRIC BILL GRTS APPROVAL OF EXECUTIVE House Bill No. 134 is Signed By Governor Frazier Governor Frazier has signed house bill No. 134 which contained the “rider” permitting the consolidation of the penitentiary and capitol electric lighting plants and permitting the | state to furnish electricity to the pub- lic. The bill carries with it authority to issue $250,009 of bonds to carry out the purpose of the act, The bill was | introduced as one of the Bismarck Vigorous editorials demand the im- mediate apprehension of those respon-| sible for this lawlessness and.inhum- anity and their prosecution to the limit of the law. « OLD CEMETERY CLOSED. Philadelphia, Mar. 16—The burial ground of St. Michael’s Lutheran church has been closed. It opened such information as is available with regard to the method of appointment. 200 years ago. Many who made colon- jal history are buried there. water company bills, and the electric provision was added to it. SHIPLEY SPEAKS AT { VALLEY CITY MEET Valley City, Mar. 16—D. E. Shipley of Dickinson, was the principal speak - er at a I. V. A. meeting here Mon- day night. He devoted most of his time to a discussion of the investiga- tion. Lieut. Dan E. Richter, who fo:- lowed him, urged the recall election. “The new state capitol grounds at | Bismarck, N. D. are being designe in an unsual way,” declares Mr. Wil liamgon, “which may well be stimu-! lating in similar work in the future. in describing the man who had him Where the usual state capitol plar is; come to testify, he referred to a mus- jreflection of the current fashion, with, Continued on page 3) perhaps an occasional statue as a reminder of past nation buildera,; these grounds will be entirely a trib- ute to ancestry and history, in which} every element will be American and! Dakotan.” | He then contines with a detailed! ! description of the plan. The archi-| |tect’s drawing of. the general plan is: | also reproduced in an insert. i Theme of Article, MAN APPOINTED a aa OA OM MISSION | Delegation of Senators and Con- jered’an unusual honor because the art! | of landscape architecture is not gen-| gressmen See Harding erally considered to have reached as; eptive mood when a passenger of- fered a larger fare than the regular amount. He brought another laugh when, ASK NORTHWEST high a stage of development in the! | west as it has in the east. ; Museum work, the official magazine ‘of the American Association_of Mu- sems, for February also made the pro- ; posed park one of its features. | Dr. Melvin R. Gilmore, curator of the North Dakota Historical Societ; land creator of the park, has an ai | cle himself on the project. The arc! |tect’s drawing is also printed in an | insert. Dr. Gilmore tells how a park of , this nature has always beena dream \of his and then, continuing, gives a vivid picture of what the park will be ; when completed. PLANNING DRIVE Williston, Mar. 16.—The Williams County Farm Bureau Federation i3 | planning to put on a membership | drive. | ©. M. Hector, a state director, will | speak at a series of promotion meet- ings to be held beginning March 17. | | NEW SOURCE OF SALT. Calgary, Canada, March 16.—The saltiest body of water in the world is the Dead sea, at Senlac, say Calgary | capitalists who are exploiting it. Salt jcontent of Senlac lake is five times greater than that of Great Salt Lake in Utah. Scientists say it will furnish enough salt for all western Canada, hthierto dependent on Utah. - Washington, Mar. 16.—A request | that a man from the Northwest be! | appointed to the Interstate ‘Commerce | ‘Commission was presented to Presi- ; dent Harding today by a delegation oi! « i | Republican senators and representa- tives from that section. | FRESH STRENGTH IN WHEAT MART Chicago, Mar. 16.—Fresh strength developed in the wheat market today chiefly as a result of buying by a house with seaboard connections. Opening quotations which varied from unchanged to 1 cent higher were fol- lowed by moderate upturns all around. The close was strong, 21-2 to 33-4 cents net higher. ROSS SETS NEW WORLD RECORD Chicago, Mar. 16.—Norman Ross set a new world’s record for the 600-meter swim, 6 minutes and 44. 2-5 seconds. COMPLETE BRIDGE. Camp Crook, S.. D., Mar. 16—The state highway commission has an-|Congress the anti-dumping bill and | the loan was repaid without any workers employed by the New York jchecking up and discovery of the short- . age, it is said. Central railroad with the exception of | L. C. Reep, receiver of the bank, the members of the Big Four brother- | said that Heaton had been found $73.- hood today announced that they, as; 000 short by two examiners of the well as unskilled laborers, would re-' state examiners office several weeks ‘ject the proposed wage cuts. ago and that Heaton had signed 2 | This announcement was made by statement attesting to the correctness William Parker, general chairman of | of a report covering the shortage sub- the United Brotherhood of Mainte- | mitted by these examiners. nance of Way Employes and railroad | ee ~ HELP IN SEED eee cea, DISTRIBUTION j Altogether nearly 70,000 men now iplan a community house to replace it. | Named to Aid Warburton in Al- |have made known their opposition to ithe plan. | OLD TOWN HALL MAY GO. West Pelham, Mass., Mar. 16.—The jtown hall here, in which Public meet- | MANDAN BOOZE PLANT FOUND ‘Thomas Kopp, of Mandan, was ar- rested at 3 o'clock this morning by Sheriff J. S. Brady, States attorney L. H. Connolly and Night Policeman | J. H. Gabeckroth for operatng a whis- key still. The still was confiscated. The officers found about two and one-half barrels of mash, , The United States Marshal will send a deputy from Fargo to take charge of the prisoner. HARDING FOR TARIFF BILL Washington, Mar. 16.—President Harding approved the plan to intro- duce first at the special session of loting Federal Money to N. D. i Pecea Shan oy | Fargo, Mar. 16.—A. J. Surratt, of ;Grand Forks, statistican for the feder- jal bureau of crop estimates has been chosen as chief assistant to C. W. Warburton, in distributing $2,000,000 federal loans to drouth stricken farm- ‘ers in the Northwest. Loan application blanks have been {received at the local office and Mr. Warburton announced that the office would be in position to begin the work of distributing the funds at once. SAY BANK SENT NO MAN HERE Denial that a representative of the Chicago financial house, to which the Bank of North Dakota’ yesterday ree paid a $1,000,000 loan, was in Bis- marck in connection with the matter was made today by bank officials. It had been stated in the Tribune taat it was understood a representative of the bank was in the city. However, m= nounced the completion of the new! others fixing ad valorem valuations on | munication with the bank whatever, steel bridge crossing the Little Mis-|a basis of the American dollar, it be- | it was said, the loan simply being souri river. came known today. paid on the day it was due.