The Bismarck Tribune Newspaper, February 20, 1929, Page 2

“new system, whereby banks are re- i | Would Create Institu- tional Protection “BRISK DEBATES AROUSED — “ Appropriations for Fargo House of Mercy and St. John's Orphanage Go Through Two brisk debates enlivened the fsession of the North Dakota senate Tuesday. The first came on the bill to repeal the state guaranty fund law which passed by a vote of 38. to 9. * ‘The second came on the bill to ap- propriate money for the House of Mercy, an institution at Fargo which cares for girls and their fatherless children, and the St. John’s orphan- age, also at Fargo. It passed 28 to 21, The bill gives each institution 185,000. + The guaranty fund repeal bill is “expected to pass the house without difficulty. It provides that after ‘December 31, 1931, the present law for the protection of deposits in state “banks will be inoperative. The guar- anty fund law, passed in 1917, re- quires state barks to contribute to a ‘fund which would be used to pay de- ‘positors in insolvent banks. The depositors in the first two “banks which closed after the law be- came operative were pajd in full. ‘Then came an avalanche of bank ‘closings and the revenue was insuf- ‘ficient to meet the obligations. Ad- vocates on the repeal said Tuesday ‘that it would require 122 years for ‘the guaranty fund to meet its obliga- tions on the present hasis. : Companion Bill Offered A companion bill which sets up a quired to deposit with the state treas- ‘urer an amount equal to their cap- ‘ital stock, the fund to be used for the protection of depositors, also was The special fund is to be accumu- lated in the same manner that the guaranty fund was handled except that payments by each bank will be credited to tne separate fund which each bank is requived to create under the jurisdiction of the state treasurer, Other bills passed by the senate ‘Tuesday. provided for a board of water well drillers and the licensing of drillers; a bill requiring the state agricultural college to ascertain the ‘average protein content of wheat in certain districts and requiring grain buyers to display a card showing the ‘average protein content of wheat in the district in which the buyer is Operating and a bill regulating the sale of bakery products and prohib- iting the return of unused bakery goods. Conditions Caused Collapse Senator W. E. Matthaei, Wells county, attacked the guaranty fund repeal bill, saying the present law hhad led the public to believe bank its were guaranteed by the state. He said there was no direct Obligation to continue the fund but that a moral obligation existed not to withdraw the protection which de- Positors assumed they had. The law, he contended, helped thejbanks and other business by inspiring confi- dence in the banks, but that confi- dence was proved to be unjustified Because of the fact that years of de- flation came and the fund was swamped with obligations. There is nothing wrong about the guaranty fund law, he said, but conditions operated to make it a failure. Re- Peal, he said, would leave the people without any protection. He contended the repeal bill is un- constitutional because it impairs con- tract obligations and tho guaranty fund commission. already has entered into contracts to pay $12,000,000 to creditors of closed state banks. Matthaei labeled the bill requir- ing banks ‘o deposit a surplus with the state treasurer as a “nefarious subterfuge” and charged that it was misleading and so drawn as to be @f no benefit as protection to the deposit Extra Banks . Sperry, Burleigh county, states had tried laws sim- guaranty fund law and just as North Dakota’a| state had more banks he said, and the pres- ence of the gusranty fund law en- organization of addi- » La Moure county, the guaranty fund law looked it was passed but doesn’t . The people of the at the last election, decided New So-C ~ “BOUSE IS EXPECTED TO JON IN KILUING ~ OLD DAPOST POLICY ; { gubistitute for Act Under Repeal some day. he doesn’t think much of the new plan proposed but that the guaranty continued. (©1929, By NEA SERVICE, INC AEB. U. 8. PAT. OFF. “Yeah, I'm just workin’ here for me up in business any time I ask him.’ ligation by defeating the proposal to issue bonds to meet the fund's debts, he said. He declared that many men who had suffered heavy losses in closed banks recognized the fund as of no value and favored the repeal. The new proposal, he said, is sim- ilar to a law now effective in South Dakota. It is true that the fund of each bank will build up slowly, he said, but will amount to something Fund Promises Nothing Ole Ettestad, McHenry county, said fund promised nothing even if it were Matthael contended that the “people interested” in repealing the guaranty fund could have arranged to pay off a part of the fund’s obli- gations had they desired and thus saved the state's honor. He contended the special bank fund law will be easy for banks to evade and that the fund’ will be for the benefit of the stockholders in paying their bank stock liability in the case of bank failures. A. W. Fowler, Cass county, said the banks would pay into the special bank fund on the same basis as into the guaranty fund, the law requiring payments of -ne-fifth of one per cent of the average daily deposits for the current year. Banks are permitted to deposit securities in the fund, he} Said, because securities draw interest and the funds would be increased more rapidly. He denied that the special fund would be available pay stockholders liability and sai creation of the fund would give bank depositors three safeguards. The law already’ requires banks to have sur- plus funds and provides for double ability of bank stockholders in case of failure. Nationalization Seen A recent decision of the supreme court, he said, permits state banks to nationalize if they see fit, He warned that many state banks would do so ey the guaranty fund law were re- C. W. Fine, Benson county, said the bill is against the best interests of the people and of -the banks themselves, dividends: only 45 banks paid divi- dends in 1927 and that, under the law, a es woul not contribute any- increased, if necessary, at some future time, Sathre Backs Hyland The argument on the House of |" alled Bank Gu : | of thousands of dollars which would experience; my old man would set is protecting dogs, livestock, and eve! wild animals, and asked what it was one to protec: poor, friendless chil ren. S Fowler said the state has to draw the line somewhere and that, in his judgment, the line should be drawn with regard to the auspices under which the institutions operate. If the state proceeds to donate to all institutions helping the poor, the field is unlimited, he said. He agreed that: the institutions are doing good work and said the persons managing the orphanage are his personal friends. But, all creeds have chdritable organ- izations, he’ said, and passage ‘of the bill would mean that, in, the future, the legislature would be besieged by other organizations. He asked how the legislature could control such ap- propriations under those circum- stances. ‘Pure’ or ‘Poor? Joseph G. Forbes, Richland county, said he is willing to care for the or- phans at his own expense rather than at the expense of the taxpayers and got into an exchange with Sathre as to who would be admitted to the House of Mercy. He had understood Sathre to say only girls from “pure” homes would be admitted. Sathre denied this and it was suggested that the word was “poor.” Forbes pro- ceeded on this assumption but Sathre again corrected him and again read from the articles of jncorporation of the home. Forbes contended that Lutherans naturally would seck shelter in a Luz theran home, as the House of Merc’ was admitted to be, and Catholi would seek shelter in a Catholic home. The result, he said, is that the state would be voting money to organiza- tions the benefits from which would be narrow and contracted. He reiter- ated that passage of the bills would set a bad precedent and emphasized the fact that the Florence Crittenton home and..North Dakota children’s home “are non-sectarian. However, he would net vote appropriations for them in future, he said. Describing the work. of these two institutions, which ‘have received state aid for years,- Forbes said he wondered if the argument were not raised with the ices at preventing future donations em. The bill opens the door to a situa- tion which would bankrupt 40. states ‘| like Nerth-Dakota, he contended, and warned. the senate that it would be dangerous to pass the bill because of the precedent involved. e Sarcasm Not Intended Sathre rose. to a point of personal privilege to resent what he said was a sarcastic reference by Forbes to the nate of the House of Mercy. Forbes had said the institution had a “fine, high-sounding name which should as- sure anyone of its worth.” ' Forbes later said he had not intended to be sarcastic. A. A. Peck, McLean county, said it is’a big question deserving the thought of every senator, but demanded “Are we, for fear of starting a wrong % dent, going to refuse to help home- Jess, helpless children?” ® question by Hamilton. Hyland said not all religious créeds are taught in the two institutions but that neither are all creeds taught in the Florence Crittenton and North Dakota children’s homes, each’ of which has spiritual advisers, he said. In the 46-year history of St. John’s . he said, over 70 per cent of the children of known parentage have ‘been Protestant. Forbes suggested that the senate get up @ subscription list to the two institutions and that he would-donate as much as the average. ; Sathre shot back a retort that there would be no subscription list, and if there were Forbes would not be asked to donate, : Asks for Consistency 8. J. Atkins, Towner county, said it would be wise for the senate to try to be consistent from day to day; that it made no difference to him what religion the institutions teach, just so- they teach a Christian religion. “Any Christian religion is’better than none at all,” he said, and charged the senate with permitting the issue to grow from a molehill to a moun- tain. The senate has voted hundreds not be nearly as well spent, he said. O-H. Olson, Eddy county, said that if the state faced bankruptcy because it attempts to look after the poor it is indeed-in.bad shape. The vote on Hyland's amendment was 30 to 13, but.on the final passage of the bill it was 28 to 21. ° | 6>—____________« |: AT THE MOVIES | ‘» sELTINGE: THEATER Several different elements make for the success of Paramount’s pro- duction of “‘Abie’s Irish Rose,” de- clares Anne Nichols, author and producer of this comedy drama of love and tolerance, now showing at the Eltinge theater. > “It is human,. Ifs characters are taken from those we see every day. It is American, purely and simply. It has therefore'a great appeal to American audiences. “Abie’s Irish Rose” has been made into an appealing story of love, which tends to do away with racial hatreds, intolerance and bigot- ry. With these characteristics is the clever touch of witty comedy that is entwined through the action. Anne Nichols supervised the pro- duction of “Abie’s Irish Rose.” The players include Jean Hersholt,. as Solomon Levy; Charles Rogers as Abie; Nancy Carroll, as Rosemary; J. Farrell MacDonald ‘as Patrick Murphy; Bernard Gorcey and Ida Kramer as‘Mr. and Mrs. Isaac Co- hen, and Camillus Pretal and Nick THE BISMARCK TRIBUNE Fund Bill Is Passed by the Senate FE BLACK PICEO (j THIS HAS HAPPENED “HANDSOME HARRY’’ BORDEN, promoter of dubious stock companies, is murdered sometime between one and four o'clock on Saturday afternoon. His body is found sprawled be- neath the airshaft window of his private office Monday morning hy his secretary, RUTH LES- TER. Ruth is engaged to JACK HAYWARD, whose office is just across the narrow airshaft from Borden's. Ruth knows Jact hates Bor- den for his attempted familiar- ity with her on Saturday morn- ing. Petrified with fear, she re- calls Jack’s strange behavior of Saturday afternoon. Fearing Jack shot Borden across the airshaft, Ruth goes to close the window above the body. It is already closed! . McMANN, police detective, learns from the elevator boys that early Saturday afternoon passengers to the seventh floor were BENNY SMITH. Borden's office boy; MRS. BORDEN, his wife and mother of his two chil- ° dren, who called for her menth- ly alimony check; RITA DU- BOIS, night club dancer, and Jack Hayward. McMann first accuses Mrs. Borden. When he finds foot- prints of a pigeon in dried blood he says the “job” was done from the inside and turns suspicious- ly to Ruth. - Jack admits the office across the airshaft is his and explains his return Saturday afternoon by saying he left theater tickets on his desk. BILL COWAN, real. estate man and: friend of Jack’s, under questioning tells of hearing Jack matter threats against Borden Saturday morning when he saw the promoter in the op- posite office attempt familiar- ity with Ruth. He also tells of telephoning Jack Saturday aft- ernoon and being plugged in on a busy line and of hearing Bor- den quarreling violently. Jack denies the conversation with Borden but McMann pointblank aceuses him of Borden's -mur- der. They are interrupted by the entrance of PHILLIPS, the waiter, who served Ruth and Jack at Agel a NOW GO ON WITH THE STORY CHAPTER XIX “Just a minute, Birdwell,” Mc- Mann answered, then turned ‘to the real estate man, Bill Cowan, who was obviously eager to . escape. “Cowan, I’m inclined to let you go on about your business and not hold you as a material witness, if you give me your promise not to talk Cogley’ as the Jewish rabbi and the me anyone—reporters, your wife, Trish pricst,; - CAPITOL THEATER The most logical and unique wed- ding costume designed for a picture with such a title as “The Garden of Eden” would naturally seem to be a That it is not is one, of the in,.store at. the, Capitol} . Coxinn ith’s new | United ists Picture comes to ‘that house tonigh: However, the habiliments in which the bride leaves the wedding feast anyone else—about this’ case, ‘and will promise further not to leave town, but hold yourself available for further questioning.” Cowan gave Bor promises. with almost ludicrous crity and bolt- ed, after another’ apologetic grip of Jack Hayward’s hand. The waiter, Phillips, was ushered in—a_ small, neat, middle-aged man in a’ weli- brushed black overcoat, snugly but- toned over his waiter’s uniform. After preliminary questions as to his name, place of residence and oc- and, to the accompaniment of Lo- | cupation, McMann asked: “Ever see hengrin’s “ well-known strains, marches haughtily down the long staircase of the Hotel Eden, in Mon- | te Carlo, are such that they make the assembled guests gape and ogle as ee, never gaped or ogled before. This situation is one of tte dramatic punches of Miss Griffith’s first United Artists Picture, which begins with drama and ends in comedy. Miss Griffith has as her leading man Charles Ray, cast in the part of Richard Spanyi, a wealthy, pert young man who becomes panic- stricken when face to face with a feet Vere, ana whose cially. snob- jish relatives cause:.plenty of. trou- ble. Louise fonaee eke ‘the role |of the impoverished “Baroness,” and ward Martindel, Maude George and Bank Mann. Lewis Milestone di- Mercy appropriation opened when Frank Hyland, Ramsey county, offered an amendment to include an appro- Priation of $5,000 for the House of Mercy and $5,000 for St. John’s or- phanage. The original bill provid $10,000 for the House of Mercy. P. O. Sathre, Steele county, who introduced the bill, su; the. amendment. Hyland pointed out that the, Flor- this ‘couple before, Phillips?” Meek brown eyes studied Ruth Lester and Jack Hayward conscien- tiously. “Yes, sir. They lunched a’ ‘one of my tables in the Chester din- ing room Saturday.” “At what. time?” ‘The waiter shrugged slightly and smiled apologetically. “That I could not say, sir. After the 12:30 to 1:30 rush, sir, I should say.” : “Did you notice them particular- ly, Phillips? Anything at all to fix this couple in your mind?” McMann pursued, “Well, sir, things,” the waiter began ingly, “I though ©1929 By NEA Service, Inc. it it odd he | ing cold,” Ruth explained, taking care to keep defiance out of her voice, é “You seem to have recovered from the cold,” McMann reminded her. “Perhaps th was something— heavy in the lining pocket which you ont want the waiter to feel or see Ruth knew that he was referring to her missing automatic. “There was nothing in the pocket, Mr. Mc- Mann!” * * * 5 McMann smiled, shrugged, then turned to the waiter ain. “You said there were several things that impressed this bln on your memo- ry. What else, Phillips? “Well, sir, the young lady dropped her pocketbook, and while I was stooping to bag) up the scattered contents of the bag, the little lady excused herself, saying she had to telephone—” “To warn Borden ngt to let Jack Hayward into his office?” McMann pounced, his glinting, narrowed gray eyes fixed upon Ruth. The girl's face flamed. “No! I si ply made the conventional excuse, and went to the ladies’ rest room to —powder my face. I telephoned né one,” “Hmm!” MeMann_ obviously did not believe her. “What else, Phil- lips?” - “While I was picking up the scat- tered objects, the young gentleman was studying the menu card,” the waiter went on, in his deprecating, hesitant manner. “He put the things back in the young lady’s bag and es me the order, witl or the young lady—” “What wag the order?” McMann demanded. —: “T wouldn't like to swear to that, ba “I ordered broiled mushrooms on toast for Miss Lester, and sweet- bread patties for myself,” Jack in- terrupted. “They were on the lace to-serve list, and both of us are in the habit of eating light luncheons.” “Thi right, sir! I remember geriy. “T'brougit. the orders right gerly. “41 it the it out, but first, before the yoane: lady came back, I brought the roll butter and gave the young gentle- man the key—” “The key! What key!” McMann d:manded, his eyes soe Shape note of Ruth’s startled surprise. “Why, sir, the key that had fell ou’ of the young lady’s handbag. I kicked against it: when nut the rolls: and butter on the table, or would never: have noticed it. I hand- ed it to the young gentleman, sir.” “And what did he do with it?” “T didn’t notice, sir.” “Did you see him reach for Miss iter’s handbag to put it there?” “No, sir. I’m quite sure he didn't, sir, at the time, at least. Probably he handed it to,her when she re- turned to the table, sir.” “Do you think .so?” McMann grinned. “Just what kind of key was this, Phillips?” % . “An ordinary modern lock ‘key, sir.” “Miss Lester, show Phillips your 4y ANNE. AUSTIN order?” MéeMann demanded sharply. “T didn’t listen, sir, of course,” the waiter deprecated, “but I heard the gentleman answer some question the young Lage at ask about Mr. Borden, “About Borden!” McMann _tri- umphed. “You're sure of that, Phil- Ups? Just what was said, and how you happen to remember the name?” “Why, sir, Mr. Borden is—or rath- er, was, sir—a frequent guest for luncheon in our dining room, so nat- urally when his name was mentioned IT noticed it.” te eee “Yes?” McMann smiled at the irt with the blazing pale young man wi “Y . nin ing ‘es, sir. He was some- thing like, ‘What pte you think I saw Borden?4and the young lad7 answered, or in words to this effect, sir: ‘You were gone so long and look so awful I thought voc were havin; a quatre] with n.’ That’s all heard, sir, for I left ag table then most people, you're inclined to for- get’ that waiters have eyes and ears, as_well as hand: Before the flushed, indignant girl could answer, the detective to the waiter in. When did the couple leave, time, as nearlv as you can The waiter shook his h lace it.” “T real- __ WEDNESDAY, FEBRUARY 20, 1929) [Legialative Calendar | BILLS PASSED BY SENATE 8. B. 104—Bond of Ward, Fredrick- son of Nefson, Lynch of La Moure and Sathre of Steele: fective December 31, 1931. 8. B. 106—Bond, Fredrickson, Lynch Sathre: banks illips? Give me the| may obtain marriage ly couldn't say, sir. I go off duty at|in three, and all I can say is that I worked for some time after the young couple had gone.” “In quite a pad to get away, bettie Phillips?” McMann sl f couldn’t say as to that, sir, ex- cept that the young gentleman left his briefcase, and I. hurried after him with it” “His briefcase, eh? Pretty heavy, was it, Phillips? Sides stuffed out?” “It was a large bag and quite heavy, but I don’t remember wheth- r it was bulging or not,” the waiter answered conscientiously. “Did the man leave you a Phillips” McMann asked, grinning. The waiter shi and spread his hands. “He left change from two one dollar bills and a half dol- lar, The bill came to two forty-five, McMann roared with sudden Putting laughter. “A nickel tip! No. wonder you’ got such a good memory, where this gentleman is concerned, tel nits Jack Hayward’s face flamed With humiliation. With furious haste he thrust his hand into his pocket and drew out a dollar bill, “Here, wait- er! I apologize. I don’t think I even lgaked at the amount of the bill. God ‘knows no one has ever before been able to accuse me of being a nig- gardly tipper. Here!” of the waiter’s eager hand. “Put up your ‘money, Hayward! What would key to this suite, please!” McMann bi rapped out, Ruth obeyed, going office to get her han to the outer “Is that the key, Phillips?” “It looks like it, sir, but of course I couldn’t say—” “Or is this.the key you found on the floor?” Ruth asked, with qi fering caly slightly fo sive and Shape fering only s y in si 8 from the first,.which she took a@ small coin purse. ~ The waiter shook his’ head hel; lessly. “It looks: since most of there were several]. young lady wouldn't take ‘her’ fur the others include Lowell Sherman, Ed- {oat off, sir. as the dining room is quite warm.” eo Sid “I didn’t take my coat off because I was chilled—felt as if I were take |, By Williams 8. B, 118—Van Arnam of Cass: Permits wider range of investment for trust funds. 8. B. 175—Renauld of Rolette: Per- mits state tubérculosis sanitarium to treat all kinds of tuberculosis cases. buyers this information for district in which elevator is located. 8. B. 93—Sathre of Steele: Appro- priates $5,000 for House of Mercy and $5.000 for St. John’s orphanage, both at Fargo. 8. B. 152—Porter of Cavalier: Reg- ulates sale of bakery products and prohibits return to manufacturer of unused bakery goods. BILLS PASSED BY HOUSE Person or persons on whom the mem- ber is dependent or to the member's McMann halted the advance | ing society. H. B. 118—Game and fish commit- tee: Amends and renacts section to govern issuance of fishing and hunt- lenses. ing _H. B.. 178—Hoffman, Pembina: '| Provides for branding of poultry and ing door. “A re] on Benny Smith, 5 a (To Be Continued) Did Jack Hayward kill Harry Bor- den? If not, who did? Don’t miss the next chapter of this thrilling ° fe rd se : Nie rite Hi | g i 7 i £ i Es ii | E U & g ty ts 5 i i a A &e i of fees to fund for expenses for publication of notices, new books, ete. Indergeard, Foster Extends authori: Lb 3 au \- zation of county commissioners to joy unt epee H, B. 1td—Swendseld,