The Bismarck Tribune Newspaper, November 16, 1926, Page 1

LANT BISMARCK, NORTH DAKOTA, TUES! 4g DEPOSITORSOF | +. NOVEMBER 16, 1926 ENTIFIED ASSAI Hero, Heroine of H ¢ CITY NATIONAL MERT TONIGHT Will Decide Whether Plan Of- fered By Depositors’ Com- mittee Will Be Approved WOULD TRANSFER 60% First National Would Take Over That Percentage of Depositors in” the City National bank, closed several weeks ago, will meet at the city auditorium tonight to hear a tentative for liquidation of the ‘’s affairs explained and to decide whether or not it shall be wee If deposi- tors approve of the plan, they will be asked to sign agreements, thereby putting the proposal in shape to pre- sent to the comptroller of currency for his approval. The proposal calls for transfer of 60 per cent of each bg oa claim in like kind to the First National bank. Each depositor would agree to accept the balance of 40 per cent ip the form of a certificate of stock to be issued by the Depositors’ Holding company. This com My will be formed by the depoistors for the pur- the plan meets ap- proval of those attending tonight's meeting, five directors for the hold- ing company will be elected tonight. Approval Believed Certain The 60 per cent would, under this agreement, be available to the deposi- tors as soon as the transfer is com- pleted, in the same form in which the money was on sen at the City Na- tional, and it is believed by members of the depositors’ committee will readily approve of the proposition. The agreement-which depositors will be asked to sign reads as follows: “I, the undersigned, being a de- positor and creditor of the City Na- tional Bank of Bismarck, North Da- ke i sideration of the bene- fits accruing to me, do hereby agree to accept sixty per cént of my claim for deposit or other indebtedness in the City Nation: ink of Bismare! in the form of a like: deposit or debtedness in the First National Bank of Bismarck, and to accept forty per cent, the bulance of said deposit or other indebtedness in ‘the City Na-; tional Bank of imarck, in the form of a certificate of steck to be isgued Hi ‘Company z company formed by the depositors of suid City National Bank of Bismarck for the purpose of. Hiquidating its assets) and I hereby assign said forty per cent of my said deposit, or other indebtedness, in the City National Bonk of Bismarck to said. Depositors’ Holding Company, and Lhereby authorize the comptroll- er of the currency, or J. M, Riley, the receiver of said City National Bank of Bismarck, to dé whatever act or thing is necessary ta complete the said aneleement of my said deposit or ower indebetdness to such holding company. “Thig agreement is to become bind- ing when approved by the comptroller of the currency at All further claim against said City National Bank, the comptroller of the currency, or said receiver, is hereby waived.” WE ARE OUT, THEY MOURN. HERE IS A FAIRY. UNCLE JOE IS GONE. A NEW FUEL. By Artha Copyright, 1998) President adlinige realizes ae this country doesn’t want to tied up in any world court. Some of his best friends have been kicked out of the senate because they tried to push the United States into that court. Intelligent men in office have taken warning, viewing the politically dead bodies of world court agitators. That's good. Coolidge’s ment that if we can’t enter the world court on any basis we choose, which is his way of saying that we won't join, annoys Bares, cousins across the waters, if they could get us in that court would hand us sions jn Beane to American debts, and other things that would be v. valuable to them. Hence their grief. President announce- But the announcement that this country will rely on its own courts fn hurt our credit any. ¢ iturday, for instance, those bun- dreds of millions of liberty bonds whi you helped to buy all went to bigh prices. If you kept yours you have made money. Have. you a little fairy in your home, sare me tthe the one that Mr. Florenz Ziegfeld has discovered in Holl; 2 He is transplanting her to* New York theatre with the following description; ant red) exslashes a decided lavender Ley cleat oe regu physical proportions aristocratic, and Some duke will Mr. Ziegfeld ‘of combination is “no! black, eyes z, binek ore her rae, In wature.” ‘ — .. Unele Joe Cannon, onge so powerful a aria Sa a " irom a ‘ashington, D. C. yp Red snd wile, ‘scriptions. f South Dakota Democrats, after many lean years, are “in” at last. They have elected a governor for the first time since 1898. He’s W. J. Burlow (above) of Beresford, S. D. SPEAKERS 10 TELL PUBLIC OF RED CROSS Annyal, Roll Call to Start Thursdgy —Teams ‘Are Practically Completed Jgqhn Parkinson, general chai man, fcr thé annual Roll Call dri of the American Red Cross, has fet with an almost one hundred r cent response in his requests for workers to conduct the drive. The men’s teams are practically lined up today and the women’s teams are expected to be organized before’ evening: The details of organization have been. completed and all plans :ef- fected for a speedy solicitation of the_entire community. Red Cross. officials state that prospects are good for a record enrollment, and confit ly expect this -year’s ip. to be a substanti: crease over that of last year. Attorney General George Shafer will, brosdeast an address on the Red Créas Roll Call tomorrow eve- ning .at 7, o'clock from Hoskins- Meyer be KFYR. Other speakers in the interest of the-Relf Call include Rev. W. E. Vater who will address the high school students in assembly to- morrow. morning. He will also lk to ‘the students of St. Mary’s Shaft will give short talks at both the Eltinge and Capi- tol theatres tomorrow night urg- ing the people pf Bismarck to be- bers of the Americ: the drive and a s) secured to address ‘dressed the Lions club. yesterday ms _clul The annual Roll Call of American Red Cross is not « finan- cial drive, according to ee Prgd county secretary. @ cam gs money. It is the annual effort to secure as many members in the organization as United Staten who wish to parte pate in the local, national and in- ternational. service to humanity rendered by the organization. Campaign For Members It_is quite true that the mem- bership dues paid at the time of i! Call maintain the work deci- | be: e future, as in the past, did not ‘ ul 8 : i “Hair a radi-| thro: & : ‘Tydfil; Wales, Noy, 10.— eg a matte! [—inartast —JBANKS CANNOT PLEDGE ASSETS FOR DEPOSITS Supreme Court Hands Down Decision in Bank Case of Wide Importance DIVIDE CO. VS. Wild Rose Bank Had Pledged Certain Assets. to County For $6,500 Deposit BAIRD Decision that banks have no right to pledge their assets for deposits of public money, thereby making the public corporation a preferred de- Positor, was handed down by the su- Preme court Monday in the case of jivide county vs. L. R. Baird as re- ceiver for the First State Bank of Wildrose, appealed by Baird from the Divide county district court, Members of the court were badly divided on the opinion, however, one justice agreeing with the majority only in part and the other dissenting altogether. The majority opinion, written by Justice Johnson, was signed by Jus- tice Burke and Chief Justice Christ- ianson. The partial agreement was filed by Justice Birdzell and Justice Nuessle ented. Affects Governor's Plan The case had been in the hands of the court more than a year and is re- garded as being of wide importance both to banks and to persons charg-|: ed with handling public money. plan advanced last winter by Gov ernor Sorlie whereby the Bank of North Dakota would deposit money | : smaller banks which would put up|: eral security hinged on the question of whether or not such pro- cedyre would be legal. The present decision definitely determined the plan to be illegal. Arguments in the case were first heard almost a year ago. At the Sep- | ‘tember term the court announced that it had not arrived at a decision and asked attorneys interested to appear again and present eny additional in-| formation they might have to offer on_the subject. The. majority decision holds that the powers and duties of a bank are fixed by statute and do not include the right to pledge assets to secure deposits. in the Wildrose case-the bank had pledged certain assets to the county in. return for.a deposit of $6,500. The Majority Decision The majority of the court held that “the general creditors of a bank are innocent parties and have equities which are superior to those of a coun- ty secking to enforce a pledge of sets to secure a public deposit when the defense of ultra vires (outside the wer) is interposed against the pub- lie corporation. As between the creditors and depositors of an insol- vent bank, whose contractural rela- tion with the corporation was created lawfully, and the plaintiff, whosd contract of pledge was outside the powers of the bank, the former must be preferred and they are not,estop- ped to assent the want of power. The whole fabri: id intent of the banking laws, the majority held, is to Protect the depositors in a bank. “It wea not intended that the public should occupy the position of a pre- ferred creditor, to the detriment of private depositors in the event of the insolvency of the depository, or that such a result could be brought about by secret agreeme between the parties, It is held that the’ attempt- ed agreement of pledge was contrary to the policy of express law and that the privilege to receive deposit, of public funds was exercised in a man- ner contrary to the public policy oft this state. The pledge agreement is unlawful, not mérely in the sense that in making it the bank gnd th eounty exci their charter or statutory powers, but also in the sense that it is against public policy. When a contract which a court of equity is asked to enforce is not only impliedly forbidden, but is also con- trary to a well-defined legislative policy, the court will refuse to givd any relief thereunder.” Injustice to Depositors In the body of the opinion, which comprises 20 pages, Judge Johnson deals in strong language with the general and legal aspects of the sit- uation, characterizing the procedure of the Wildrose bank and Divide county officials as an injustice to the individual depositors. 3 In his remarks Judge Birdzell said: “While agreeing that the judgment appealed from should be reversed the record here is in such shape that I have some doubt as whether the judgment should be entered in the form directed in the principal opin- fon. The pleadings and the findings (Continued on page two.) For Bismarck and vicinity: Un- settled tonight; shightly colder. Wed- mesday mostly fair. rohably snow east por- ly colder ‘southwest por- ‘ednesday iy fair. | Bismarck to Have Red Cross Roll Call | +jon continued This new American Red Cross poster, the work of Lawrence Wil- bur, is regarded as one of the most notable'of Red Cross Roll Call post- ers since the world-famous “Greatest Mother in the Woyld” design of war days. More than 150,000 copies of this new pos' have been made, and many of them are now on display in Bismarck, calling attention to the enrollment campaign of the American Red Cross for 1927 membership. The annual Koll Call in Bismarck and Burleigh county will take place the ‘last three days of this week. John Parkinsen will serve as chairman of the 9 a. m. Thursday. COTTON AND GRAIN GROWERS MEET TO FORMULATE JOINT DEMANDS FOR CONGRESSIONAL RELIEF TO FARMERS Rochester's First Woman Official to Take Office N. Rochester, Minn, Nov, 16.--P) Rochester's first woman city officia will take office on November She is Mrs. Mary Artders: last night council as Thomas P. Hall, who resigned 17 years as guardian of the funds. Mrs. Anderson is the fi | Farmers’ Predicament Blamed on vernment: Favorit- ism’ By Senator Thaddeu~ Caraway of Arkansas—- Speaker Defends Bloc Sys- tem as Being Old as Con- gress Itself “who $ named by the common ter e St. Louis, Nov. 16—(@)—The cot- ton growing south and the grain pro- ducing middlewest got together to day for a two-day session through the medium of representatives farmer organizations of 14 s1 of them southern, to ‘formulate demands for congressional relief f agriculture. It was the first time that the two great agricultural sections ever had reached the point of sitting togethe and the move, sought for months by the grain producers, finally was in- fluenced largely by the condition in which the south finds itself through @ heavy over-production of cotton, which has sent prices tumbling. Governmental favoritism was term- ed nee ip of ee. Lami eget ment in a speech prepared for de- livery by Thaddeus Caraway, United bard senator for nee ore one of four speakers on today’s program. The others were: Frank 0. Lowden, former governor of Illinois; Dr. B. W. Kilgore of Raleigh, N. C., chairman of the board of the American Cotton Growers’ Exchange, and A. D. Wal- dauer. of Mgmphis, Tenn., attorney for the Tennessee cotton Growers’ Cooperative association. William Hirth Presides The speeches, with the selection of @ permanent chairman and the ap- pointment of a resolutions commit- tee, completed today’s gram after the meeting was called to order by William Hirth of Columbia, Mo. farm paper publisher and a national- ly known leader in agricultural eee ma ere is no mystery as to the cause of the collapse of agriculture,” said Senator Caraway. “Every one who thinks knows the. cause, Had there been a collapse in industry, in transportation, in commerce and in egriculture from 1920 until today, we might thought it due to world conditions. If prosperity come to agriculture as it came to i dustry, transportation and to com- merce, we could have ascribed it to world conditions, “But when prosperity came to com- mae, fe industry, to cuine, we ruptey to culture, we likewise knew the jae inted to fill out the term of the webring official. She is a woman past middle age and has resided herq xf for many years, LAST RITES ARE PERFORMED FOR Business and Public Life in Danville Halts — Floral Tributes Are Many Danville, Ill, Nov. 16—()—The tree-lined VermiHion street, which was Joseph G. Cannon's wonted path in life, today was his in death, Where half a century ago it had led to the nation’s id the be- (inning of a remarkable career in the alls of state, Vermillion street led today to Spring Hill cemetery and the end of the road for the veteran statesman. Methodist church, At the First street from the Cannon across the house, there were draped flags, but on the casket, as it lay in the dark: ened house, there were only floral tributes to a great citizen. Dawes Représents Coolidge Vice President Charles G. Dawes alone formally fou eeenced. the gov- ernment of the United States, as the epypmeantative of President Coolidge. jusiness and public life in Dan- ville halted for the funeral and in the throng of mourners were many school children. Eight thousand of them, from kindergarten to high school, gave a penny each toward a floral tribute. . Communists: Attack Garrison at Laboen Batavia, Java, Nov. 16.—()—The East Indian communists, who carried out last Friday night at var- f tern. during were kill- pd oF wounded, have established 9 tldton destined for the Rast Indies ma nn des ir it % i|riftes, last aight. aseseked Be gue le garri- non Laboon, but were repulsed. One of the soldiers of th Fri ‘is believed the at. et hens ors lion, and poverty reigns supreme in another section of; the country, we also know the cause. “We know St to be due to‘ legisla tion—to governmental favoritis There ‘is no. :| gested, can bi ‘| culations Hl i| year. committee, and teams will begin the solicitation at|) treasurer to succeed | 40S. 6. CANNON TAX CUT MIGHT | - BEASHIGH AS 15 PER CENT Treasury Secretary Mellon Makes New Estimate Based on $3C0,000,000 Surplus Is \ \ | | , CONGRESS \ | Proposal Is to Give Taxpayers Reductions on First Two Installments Washington, Nov. {gress approves the Coolidge-Mell {Plan to allow credits income t: Paymefts next year, the treasury se retary now believes thut 15 per cent, instead of 10 or 12': as formerly sug- lopped off the levies. Mr. Mellon’s new estimate is based improvement in the treasury's surplus prospeets; the fig- ure having risen to $300,000,000. When President Coolidge made his original suggestion, calling for a 10 per cent allowance, he based his cul- on an estimate that the treasury would have $200,000,000 hand at the end of the current fiscal Seeing $50,000,000 more in Prospect, the secretary shortly after- wards figured that the credit of per cent was possible but since then, anothe 000,000 has come into bringing another per cent SILENT A) Af con-| Co boos: | Reduetion Not Permanent |. The latest estimate would mean |that taxpayers, making returns next year on this year’s incomes, could be ranted 30 per cent reductions on their first two quarterly installments. This change, however, carries with it! no alteration in the ury officials that legislation to make, a permanent reduction in the tax rates at this time is not justified by vi long-range prospects under t ent Such legislation, they feel, would reat on insecure’ economic founda- tions. It would have to presuppose a continuance of prosperity now being experienced, and i ds, would be un uld wipe out the possi- surplus and might rease in tax rates neces y of an ine nwhile sentiment in congres- closes no sign of yr against the ad- ministration’s credit proposal. FATHER AND / SON BANQUET NOVEMBER 24 | | Affair Expected to Surpass in’ | Attendance Those Held in Previous Years The fifth annual Father and.Son} banquet will be held at the high school gymnas&im Wednesday, No- vember 24, at 6:45 p.m. This affair brings together every year the boys. and their dads who spend an inter- esting evening together and for the time all are youngsters again. | | Under the rship of J. J. M. | MacLeod, who has directed the boys development program in Bismarck for the past five years, the entire city has taken an active interest in his splendid work and there annual ban- quets are an evidence of the spirit aroused through this phase of com- {munity work. Committees have been named to carry out all of the details of the eve- ning, which include a lively program as well es a good dinner, and it is ex- pected that the beng aoe surpass e GEM SALESMAN TRLIS STORY OF HUGE ROBBERY |Says He Was Forced From | Bus in St. Paul and $200,- , 000 in Jewelg Stolen i it} woman to hold a city: office and was! . Minneapolis, Nev. 1 ‘Two 6) hundred thopsand dollars’ worth of| 4 unset gems were obtained last night by two men who forced David Davis, Pittsburgh diamond salesman, from a crowded meotorbus in St, Paul and then drove him to Minneapolis while pooh clothes for the jer I "Davis re ported the robbery after he 'had: been released in Minneapolis. |The two--men, he said, worked a {quietly in the bus that the other {Passengers and the dr! | ware that anything was wrong. They stuck 2 revolver at his back and com- manded him to leave without giving a warning. When they reached \the street, vis was put inte an automobile which had been following ‘the bus. They were dirven to Minneapolis and his Jewelry taken ‘to, soldiers ft drawn| The aed School Disaster Here are the hero and heroine of th: Plata (Md.) torna where 1 in the collapse of John Marshall Burr, 11, jumped out a window and sum moned help wh saw the storn coming. Miss: Ethel Graves, teache of the school, helped many’ childrei to safety and was severely injure herself as a result, Red Cross Chapter Is Preparing For Annual Roll Call Attorney General George F. Shafer will broadcast a talk from thi Bismarck radio — station, KFYR, Wednesday evening at. 7 o'clock, in connection with the annual Red Cross Roll Call which will begin in Bismarck Thursday morning. Mr. Shafer will tell of the great ount of wor! : plished by this humanitarian order and of the good it has done y in the nation as a whole but right at home in Bismarck and Burle Rev. W the stu and day moi will giv r will talk to high school ‘3 school big the same subje club meeting Wedne greasman Thoma: Hall Cross talk the meeting Mon Lions club FARMERS ARE INVITED TO CONFERENCE: N D. Branch of Agricultural | Conference to Meet at Capitol Thursday Farmers of North Dakota, and es- pecially those of the Bismarck v ity and the entire Slope territory, ar invited to attend a meeting of thi North Dakota branch of the Nort! Central States Agricultural Confer- ence, which will be held in the hous chamber at the state capitol here is Thursday, November 18. sions will open at 9 a, m. The state branch was formed earl; this fall at a meeting held in Wahpe ton, which was follo' short tim later by another meeting at the stat capitol. Senator Gerald P. N The s {ime ‘e is expected j tain INTO HOUSE AT SCOTLAND, S.D. Without Warning, Leaden Pellets Rain Death, Injury on Assembled Group i |THREE OTHERS INJURED ,|Only Meager Description of Murderer Available—No Trace Has Been Found Scotland, S, jov. 16.—()—Blaz- ing away through a window with an automatic shot gun from the darkness outside, an unidentified assailant killed two persons and wounded three others on a farm near here last night. Without warning, the leaden pellets rained death and injury on a group assembled at the John Grosz farm home, 10 miles northwest of here, shortly after 7 p. m. The killed were Robert Zwiefel, 20 years old, a neighbor of Grosz, and Mrs. John Grosz, 50, wife of the own- er of the farm, _Those injured were taken to a hos- pital at Yankton. They are Clarence Zwiefel, 14, brother of Roberc; Em- manuel Grosz, 24, and Mrs, Solomon Grosz,.30, They recover, sur- geons at Yankton No Motive Known Survivors of the shooting disclaim- ed all knowledge of a possible motive for the attack, and only a meagre description of the assailant was ob- {tained as he fled in the darkni In the Yankton hospital today, Clargnee Zwiefel and Emmanuel {Grosz said the man wes about five ; feet eight inches tall, and Mrs. Solo- mon Grosz declared he wore overalls. Bi they could not add to n, e 3 a m r n d According to information received here, the slayer fired four or five charges from his shotgun without re- ling himself to any of the vie- 0; Robert Zwiefel died at the t shot and Mrs. Grosz was killed |when she appeared at the door to investigate. | Fleeing from the murderous hail ‘of lead that swept the room, Clarence | Zwiefel and Emmanuel Grosz dashed ‘from the bi ing. Grosz ran through rnfield with the assassin him for a quarter of a m the ran, according to the a: jaffair received here. Zwiefel escaped ‘to his home. Two Killed Instantly The first victims were in the sum- mer kitchen of the Grosz farm, 4 ildi feet from the There Robert Zwiefel was killed as the slayer poked his , Weapon through a small window and | fired several shots, Attracted by the fi ‘Grosz ran from the main bui! ‘received a charge of lead that ;her almost instantly. | Five shotgun shells were picked up | Just outside the summer kitchen win- |sow, but so far ws could be learned none of the group in the kitchen |caught a glimpse of the slayer. | Clarence Zwiefel was wounded in ithe face, scalp, chest and sides. Em- |; manuel Grosz was struck in the arm | and buck and Mrs. Solomon Grosz re- | ceived scalp wounds. Investigation Started Connie ane local authorities imme- diately began an investigation. The sheriff of Hutchinson county, in iwhigh the Grosz farm is located, ; promptly took charge. It was indi- | cated bloodhounds might be used in an effort to track the assailant John Grosz, the owner of the farm, j was in the barn or one of the other out buildings when the shooting took place, according to Mrs. Solomon Grosz. He was not fired upon, ac- cording to information here. | Around the summer kitchen were j found several exploded shot gun i shells, pumped from his automatic as the assailant kept up his rapid fire. | authorities are endeavoring to trace their purchase. Motions in State Mill Case Will Be Heard November 24 Hearing on motions presented by ;H. A. Bronson in the state mill and | elevator rate case will be had in dis- |triet court here November 24. ‘The Great Northern and other rail- roads have attacked the decision of the railroad board granting cer- rivileges and rate concessions Mrs. ig and killed NE, © e h eC y | to attend the meeting Thursday, and |to the state mill and el Frank Murphy of Wheaton, Minn. prominent in affairs pertaining to ag- riculture, will also be here. Thos. H. Moodie of Wahpeton head of the state movement and has | f called the meeting to be held Thur: y- Two More Gopher State Banks Close St. Paul, Minn., Nov. 16.—()—Th Farmers State Bai Norby of J, Veigel, commissione: of banks, announced. B, M. Burtnes: is cashier. The Appleton State Bank with de- nk at Dale, with de- posits of $25,000 and of which W. J. | llaway was former presi- dent, was closed because of depleted | Grand Forks and Bronson, ing the mill, is defending tl iked that the temporaryy re- eventing the rates lective, and the or- se why, they should not become effective, be dismissed and that the entire case be taken off the docket: In the event his motions are de- nied he hab asked for early trial of the action. is j ir hat (Mercury readings at'7 a. m.) Bismarek—Cioudy, 30; roads Cloud—Cloudy, its of $285,000 closed voluntarily ise of depleted reserves, Mr. Veigel also announced. Peter Mar- tinson is president and L. A, Han- | cock in cashier. RELIC OF WAR Richmond.—At Belle Grove, Va., stands a dwelling used the. civil ‘stands ie Cedi Th in, and e1 3. ouse General his famous ride. by in the jar. Creek. 1 Phil Sheridan gnd-