The Bismarck Tribune Newspaper, March 21, 1932, Page 1

a North Dakota’s Oldest Newspaper ESTABLISHED 1878 © ~ _ THE BISMARCK TRIBUNE DEMOCRAT HEADNEN SEEK 10 PERSUADE OBJECTING MEMBERS} Attack on Measure Saturday Resulted in Near-Pan- icky Adjournment TO KILL LEVIES ON FOOD Some Qther Commodities Also to Come Off List Slated f For Taxation BULLETIN Washington, March 21.—(P}— : The house ways and means com- mittee Monday decided to exempt all food, wearing apparel, farm implements and prescribed medi- cines from the sales tax in the Dillion dollar revenue bill. ‘Washington, March 21.—(4)+-House leaders used the final hours of the 4 week-end truce on the revenue bill Monday in a desperate attempt to turn back the tide of sentiment against the sales tax. While the house worked on minor routine legislation, the Democratic headmen employed persuasion and conciliation in trying to win back some of the members who Friday and Saturday swept the leaders off their feet in the attack that led to a hur- ried and near-panicky adjournment. The ways and means committee, un- der Acting Chairman Crisp, plan- ned some of the conciliation in amendments to take virtually all the foodstuffs and a few other commod- ities off the list of manufactures to be taxed. It was but a slim hope, and with the exception of the Democratic floor leader, Rainey of Illinois, none rushed forward with forecasts of success. On the other side Represent- ative LaGuardia, (R., N. Y.), who has led-the...anti~sales. tax -forces,. con- fidently predicted victory. When the bill again is taken up ‘Tuesday, to keep it from being hack- ed to pieces Crisp intends to bring up immediately the salés tax . skipping intervening sections. Before the hurried adjournment Saturday the revolters wrote up to unsurpassed heights taxes on the biggest incomes and fortunes, pushing them to a point that led Rainey to warn the house it was coming perilously. close to communism. The estate tax normally would be A reached before the sales tax section. The LaGuariia forces have an- nounced intention ‘of boosting it too. and LaGuardia is planning to offer an amendment to levy a one-quar- a) ter of one per cent tax on the sale value of all stock transactions and another to eliminate consolidated re- turns by corporations. Crisp's idea is that, if the sales tax is knocked out of the bill, it will be up to the house to adopt a sub- stitute means of raising the revenue needed to balance tr: budget. He said he would oppose any effort to shunt this job back on his'committee. The administration called upon the opposition .Monday to halt. its fight unless it can devise a program to balance the budget. In a letter to LaGuardia, tary Mills said the propo: forward by LaGuardia as for the ways and me: committee bill would fail by $630,000,000 to yield the amount of revenue needed. Indications that house party lea ers and anti-sales tax chieftains reach a compromise on the revenu bill were seen with the announce- ment by representative La Guard! that if food, clothing and medicin: were exempted from the sales le fundamental objections to the would be removed, |. GRANT EXTENSION ue ON FEDERAL LOANS'* New Regulations Are Made Public By Secretary; Rel |. Congr The Weather Unsettled tonight and Tuesday; no decided change in temperature BISMARCK, NORTH DAKOTA, MONDAY, MARCH 21, 1932 gious Revolt in Russia ess Faces Anti-Sales Tax Sentiment F. SCOTT McBRIDE F, Scott McBride, national superin- tendent of the Anti-Saloon League, still is an optimist. He asserted in @ statement Monday that wet gains in congress have come to an end. DEADLOCK LOOMS IN PEACE NEGOTIATIONS ON SHANGHAT FRONT Japanese Digging Trenches in Preparation For Re- newed Warfare Shanghai, Match 21—(7)—New par- leys for peace and new trenches for war were under way here Monday. Japanese and Chinese negotiations continued peace parleys under the auspices of neutral observers, while out along the Japanese front line to the . northwest, dJapanese., soldiers , | Worked feverishly on new trenches, barbed wire barricades and sand-bag redoubts, * Those actually connected with the 100, | negotiations, the Chinese and Jap- anese representatives and the foreign Officials, all professed to see hope for success of the parleys, but there were widely circulated reports on the out- side that the negotiations were dead- {locked over the question of withdraw- lal of Japariese troops. Officials declined to reveal the terms suggestéd for the armistice but they were reported to have centered on three points: * 1. Chinese troops to remain in theif Present positions apout 20 miles west of Shanghal. | 2. Japanese forces to withdraw into the international settlement. ‘3. A neutral commission to super- vise the Japanese withdrawa! and to take over the administration of the wide area around the city, now occu- Pied by the Japanese. Dispatches from Tokyo indicated the Japanese contended proposal No. 2 ‘would nullify the purpose of all their activities around Shanghai. The Japanese and Chinese foreign offices at- Tokyo ‘and Nanking announced further instructions had been sent to . {their representatives here. ‘The Japanese troops continued to tl shorten thelr, lines {rom the Yangtz: river to the Shanghal-Nanking rail- Positions on the west were under way but @ more permanent line was being established west of Chenju and al- most due north to the Yangtze. It was here the great activity was tak- ing place. The indication was the japanese planned to make it their permanent defense line. Behind the lines, eastward to. the “r d & : H E i Ei f I is pit i way. Minor withdrawals from theitsocn state should police its own peo- International © settlement and ‘the |e [Sti OptimioioT/BURDICK 10 SEEK CONGRESS SEAT ON REPEAL PLATFORM Says Experience as Prosecutor and Federal Attorney Convinced Him SEES NO RESPECT FOR LAW Stand Is Personal One and Does Ngt Bind Progres- - sive Supporters Fargo, March 21.—(?)—North Da- kota, @ state “born dry,” is asked by Usher L. Burdick, assistant U. 8. district attorney in charge of the prosecution of prohibition cases, to | support him for congress on a plat- {form calling for immediate repeal of the 18th amendment. His experience as state's attorney and special prosecutor for Williams county and later as assistant U. 8. attorney has convinced Burdick the amendment brought about disres- pect for the state’s own dry statutes and turned North Dakota's once law- abiding citizenry into a population largely without respect for either state or federal liquor regulations, he declared in a statement issued Saturday. Pitching this element into the free- for-all congressional fight, Burdick’s statement bears added interest be- cause it follows closely on the 227 to 187 vote in the house of represent- atives against considering legislation designed to turn control of liquor back to the states. Casting their |votes with the majority.were North Dakota's three representatives, O. B. Burtness, J. H. Sinclair and Tom Hall. Burdick’s candidacy for congress: is indorsed by “Progressive” Repub- jlicans but his platform on the amendment is a personal draft, not bearing official approval from the party, A Raps: ‘Bootleg Bootleg barons, under whose thumb {all manner of crime prevails un- {molested by a helpless citizenry, are the spawn of the 18th amendment, |said’ Burdick. They are steadily in- creasing their menace to safety and {happiness and climaxing their inva- sion of private liberties “with a vici- ous kidnaping of an innocent child,” he said. | “Personally, 1 do. not use liquor, hence it cannot be inferred that my jPolitical stand arises from any per- Sonal appetite which I may have to |satisfy,” he said. “I have been state's attorney and special prosecutor for Williams coun- {ty for a great many years. I have ‘handled practically all of the lMquor cases for the government since be- coming assistant U. 8. attorney for North Dakota. I am speaking in this statement, the truth as I sec it. “I favor the immediate repeal of the 18th amendment of the federal constitution—for the reason that in this state it has not been effective in stopping the liquor traffic... While it has been in force the state has changed from a condition where the state law was réspected to a condi- tion where neither the state nor the federal law is respected. The re- peated violation of the federal law has created a disrespect for all law. “The natural policy of policing each and every state as to the vio- lation of one particular law is wrong. ple. A mere statute, standing alone, does not carry with it respect or secure its unqualified support by the people. A statute based on rever- Sterna! rightness of the Principle in: eterni oO! e ciple in- volved, should and does find support in the general sentiment of the peo- Public Sees No Answer men, who were marooned on an N. Y. They were carried out Into from shore. Associated Pr This Is an alr view of the rescue by coast guardsmen of 17 fisher. Ice floe In Lake Erle near Buffalo, the lake when the floe broke away Excite BISMARCK MARGIN SEVEN TO ONE ON CAPITAL REMOVAL Murray-Roosevelt Draw 20,000 More Votes Than Coxey- France Contest Fargo, N. D., Mar. 21.—(AP)— North Dakota voters cast better than 20,000 more votes for the two demo- cratic candidates’ for president, in the recently presidental primary, than were cast for two republican candidates. With reports from 2,123 of the state’s 2,235 precincts at hand, Mur- ray and Roosevelt received a total of 80,290 votes, while returns from 2,116 precincts gave Coxey and France a total of but 57,080. In these 2,123 precincts, Murray received 30,338; Roosevelt 49,952. In the 2,116 precincts reporting on republican presidental results, Coxey received 23,054; France 34,026. Results on the democratic com- mitteeman race from 2,120 precincts ‘gave J. Nelson Kelly 22,368; Char- les D, Perry, 15,829; H. H. Perry, 28,665, a total of 67,062 votes. For republican national commit- teeman, a total of 2,131 precincts gave Graham 32,213; Schumacher 8,988; Stern 47,869. Returns from 2,095 precincts give the following results on the pro- Posed constitutional amendments: Capital removal—Yes 23,187; No 162,237, Future amendments to constitu- tion—Yes 48,622; No 99,808. Legislative power, initiative and referendum—Yes 48,743; No 95,896. On the four-cent gas tax amend- ment, returns from 2,098 precincts give—Yes 65,295; No 101,015. And 2,088 sprpelnets on the ques- tion of amending the absent voters belek law, give—Yes 62,558; No 72,- “Just why the federal government, with its thousands of administra- tors, special agents, regular agents and informers are covering the coun- try in cars (taken from the guilty) to enforce one certain law, is not easily answered by public sentiment. ‘When the violators are’ caught, ‘fed- eral juries turn them out, and those who plead guilty are generally so dis- tressed financially and have so many Hy i E 2 He & S gz if ’ i] 3 Ey f Hi ge Carrier Pigeon Notes Jersey Police lone Found to Be a Hoax Sent By Boys, However; Oth- er Not Verified Hopewell, N. J., March 21.—(P)— Investigators in the Lindbergh kid- naping were excited for a time Mon- day by two notes, supposed to have been found on carrier pigeons. One was quickly revealed to be a hoax jand the other could not be verified. The investigators were otherwise without any tangible result in their long search for the missing baby. ; The 10 o'clock bulletin of the New Jersey state police, issued by Col. H. Norman Schwarzkopf, told of the two notes. Several hours later boys in East Stroudsburg, Pa., admitted writing one of them as a prank and tieing it to the leg of a dead pigeon. The other note was reported in code and found on a bird beaten down in a storm in Connecticut. The informant of the police said he did not see the note and refused to name a local bootlegger whom he said decoded it. The bulletin continued: “Several people were interviewed at these headquarters yesterday, pur- |porting to have information con- cerning the case. In each of these instances the information was offer- ed in confidence and this confidence will be respected. All of the infor- mation is now being investigated. “Following telephonic communica- tion with Jersey City we find that Henry Johnson is still in the custody of Jersey City and has been contin- uously since his return to the Jersey City authorities last night. Indica- tions are that he is about to be turned over to the federal immigra- tion authorities. “Investigators are out all over the state, following up information re- ceived and no reports are available as yet from any of them.” Lindbergh telephone continue to buzz with reports that babies looking like the stolen child have been seen. Mrs. Lindbergh fre- quently takes the calls and questions the caller closely, All such leads have proved false, but the state police have arranged for a close check on all babies who might possibly include the one be- ing.sought. Several details are now assigned to this task alone. The Lindberghs themselves—Col. Charles A. Lindbergh and his wife, (Continued on page Seven) Roberts Defies Almanac and Says Spring Did Not Begin Until Today Spring was ushered in at Bis- marck Monday under clouded skies and with temperature mod- erate following a bright warm Sunday which saw the mercury touch 42 degrees above zero. Despite the ae thet ihe al manac says spring began here at 1:14 p. m.Sunday, 0. W. Rob- erts, f eral astacraloetnt, said the season did not ive until lay. Sunday was the day of the vernal equinox only, Roberts said, the actual date of spring's beginning depending upon the lattitude. The forecast for Monday night and Tuesday is somewhat unsett- led, with no decided cha: in temperature in sight for North Dakota, Though decidedly mild, Sun- day was ‘not the warmest day here this season by far, Roberts said. Mercury set a new high record for February when it rose to. 65, degrees the 27th of last. month. “It is really for the best that ~ spring does not open in this lati- tude on that date (vernal equi- pod ely eae vi iy years in wi spring did ares ‘on or about that. date, we have experienced poor yields of spring wheat.” > “The earliest actual opening of spring, was in 1910, when the average or mean temperature for March was 43.2 degrees above zero, or nine EA ie! higher than normal. April in that year had an average temperature of 50.1 degrees, or eight degrees above normal. Naturally high temperatures in spring are ac- companied by below norma! pre- cipitation; thus, in addition to rapid evaporation of the surface “and subsoil moisture, the lack of moisture results in a poor crop. The avera; yield of spring wheat in North Dakota in 1910 was but 5.3 bushels, the lowest of record, and the mean temperature for the four months, March, April,. May and June, was 53.6 degrees as compared with a normal of 46.1 degrees.” The last six months have seen the. most’ freakish a thi jut the United States in the | of the U. 8. weather I lines | 17 RESCUED FROM ERIE ICE FLOE FOSHAY AND AIDE ARE CONVICTED IN MAIL FRAUD CASE Minneapolis Promoter Is Sen- tenced to 15-Year Term at Leavenworth FOUND GUILTY BY JURY Talesmen, All Men, Find Four of 17 Indictments Were Justified Minneapolis, March 21.—(?)}—Wil- bur B. Foshay and H. H. Henley, founders of the Foshay enterprises, were convicted on four of 17 counts of al court jury Monday. Judge Joseph W. Molyneaux imme- diately sentenced each to serve an aggregate of 15 years in the federal Penitentiary at Leavenworth, Kansas, and to pay a fine of $1,000 each, with @ stay of 42 days in which to move for appeal, The jury, the second to hear the case, returned the verdict in its sixth day of consideration.. The first jury last fall disagreed. Foshay and Henley showed no sign of emotion. As Henley heard the sen- tence he chewed gum. Foshay, gray- haired, smiled when he was permitted to leave the courtroom after the court released them by continuing appearance bonds in force. Began Business In 1917 The verdict wrote another chapter in the dramatic life of Foshay who in 1917 after a career as an art student ‘at Columbia university, as a clerk and minor executive with utilities compa- nies, established his own business here in a one-room office. Buying small’ utilities properties in rural sections on the part payment plan, he began marketing securities on-a-emall scale but with steady suc- jeess. ‘Then he branched out, added Henley as his chief assistant, and ex- parided speedily in 1925, and in 1927 and 1928 marketed his own securities at the rate of more than $1,500,000 monthly. In 1929, his sales dropped, and he was forced to make loans at high in- terest rates. Finally after the defla- jtion of securities values in October, 1929, his holding company with num- erous subsidiaries were unable to | make further loans and a receivership was ordered on Nov. 1, 1929. Foshay properties were credited with a value of more than $50,000,000 at one time but the government in the trial exaggerated values to stockholders and prospective investors. Josiah Brill, defense attorney, said he would appeal. Before doing this he said he would require a rest after the trial, which began its 11th week Monday. The first trial lasted eight weeks, ending in disagreement of the jury when the only woman member of the panel made a solitary stand for acquittal. . Guilty of Contempt Later this woman, Mrs. Genevieve A. Clark, Minneapolis housewife, was found in contempt of court on grounds she had failed to reveal when examined as a juror that she was a former Foshay employe. She has appealed this finding, which resulted in a sentence of six months in jail and a fine of $1,000. The five defendants in the Foshay mail fraud case who ended their fight before the second trial started by en- tering pleas of guilty or nolo conten- dere early in January will hear the sentence of Judge Molyneaux April 2. H. E. McGinty, former secretary and treasurer of the Foshay enter- prises, and Clarence Salisbury, former. vice president and sales manager, went before Judge Molyneaux Jan. 6 and pleaded guilty to the first count of the 17-count indictments. It was the same indictment on which Foshay and Henley were found guilty. Palmer V. Marby and Herbert F. Welch, former assistant secretaries, and R. J. Andrus, former president of public utilities consolidated cor- poration, entered pleas of nolo con- tendere to the same indictment Jan. 9. A plea of nolo contendere is treated by the court as a plea of guilty, ~ Langer Will Begin His Campaign May 1 using the mails to defraud by a feder-! claimed the promoters consistently) ¢ b Faces New Crisis | think: Reach Wiprinderiise tee DR. GETULIO VARGAS Buenos Aires, March 21.—()— Brazil stood Monday at the most im- portant political crossroads since the ;1930 revolution. A decision was im- minent on whether Getulio Vargas, jde facto president, or another will re- store constitutional government in the western hemisphere’s second largest republic, Rio Grande do Sul, president Var- regime, charging he has delayed un- duly the restoration of legal govern- ment, following his seizure of power two years ago. Unless the president is successful in placating his south- ern Brazilian cabinet colleagues at a ‘conference at Rio de Janeiro Monday his position may easily become hard- ly tenable. A more speedy termination of the de facto status of the government is virtually the sole issue in the political cI HUFF DEFENDS PAY ARN BOARD HEN - RECRIVEROR WORK |Says Mishandling of Single Day's Business Would Off- set Salary-Cut Gains Washington. March 21.—(7)—C. E. Huff, Chicago, president of the Farmers National Grain corporation, Monday defended the salaries paid officials of his organization. He told a senate committee only Seven men in the corporation would be affected by the bill of Senator Borah (R., Idaho) to cut farm board salaries and limit the pay of officials of borrowing organizations to $15,- 000. “The mishandling of a single day's business would cost as much as their combined salaries for the entire 12 months,” Huff asserted, . contending ‘executives “to be induced to leave their own business must be paid rea- sonably adequate salaries.” Dameron H. Williams, of Gastonia, N. C., a member of the American Cotton Shippers association, told the committee considering the Borah bill “the farm board by unwise use of its Powers is literally crushing the co- operative movement.” Huff asserted there was no voting of salaries by grain corporation offi- cials “out of which they could bene- fit” and said “our concern lies in ef- fectively doing the job with which we are entrusted.” Referring to George S. Milnor, gen- eral manager, whose salary of $50,- 000 has been severely criticized, Huff said he did not know what the posi- tion of the corporation and its wheat activities would have been if 2 man of “less experience, or less sound judgment” had been in charge “or had devoted himself less closely to the task.” Huff said he believed the corpora- tion had beneficially affected the whole price structure. The seven executives whose salaries would be affected by th Borah bill and their present monthly pay were given as: Huff, $1,250; W. I. Beam, vice pres- ident and treasurer, $2,500; Milnor, $4,186; J. M. Chilton, vice president and assistant general manager, $2.- ‘708; William Engel, vice president, $2,291; W. B. Joyce, district manag:r at Minneapolis, $1,666; H. W. Collins, in charge of the Portland, Ore., of- fice, $2,083. Americans Escape Bandits in Mexico gas’ native state, has deserted his; PRICE FIVE CENTS Rene Ye ner ererseer emma | WOMEN DEFENDING CHURCHES KILLED BY SOVIET TROOPS Attempts to Wreck Houses of Worship Are Resisted By Villagers BUCHAREST HEARS REPORT, Some Families, Attempting to Escape Across Dniester, Are Shot Down 5 Bucharest, Rumania, March 21.—(7) —Reports reaching here from Rue manian village on the Ukrainian bors der Monday said a number of women were shot down by Soviet troops in a “bloody Sunday” while defending their churches. The reports described alleged eye= witness accounts of Soviet church- |wrecking activities resisted by the villagers, In the Ukrainian village of Taslak, \across the river from the Rumanian village of Kitzani, they said, Soviet soldiers attempted to destroy a church jand were faced by a crowd of 300 women. The soldiers fired their ma- chine guns and killed and wounded Several, the reports said. Another report from the Rumanian military post at Mihaiviteazu said the Soviet soldiers “could be clearly seen” shooting down 15 peasants, including several women, while the latter were trying to defend the Holy Cross in the village square at Buturaga, where the soldiers were destroying religious emblems. There were reports, too, that several Peasants from the Ukrainian village of Schlotlaga tried to escape with their families across the Dniester by hiding their wives and children in barrels and driving down along the river bank as though they \intended to get water out through holes in the ice. When the coast was clear they would whip up their horses and race across the ice to the Rumanian shore. One wagon was said to have reached Rumania but the others were reported to have been intercepted and the oc= cupants shot. Other reports of an uprising in the Ukraine were circulating here. This report was unverified, but if came from the Bessarabian border and said the 282nd Soviet infantry regiment had refused to fire on a group of revolting peasants, following which a number of the soldiers were executed for mutiny. In order to prevent further escape of Ukrainian peasants across the Dniester river into Rumania, the re- Ports said, a two-kilometer zone has been established along the Russian side of the river, under a state of siege, and orders have been issued to shoot on sight any civilians found within the zone. ————_________—__@ | Bismarck ‘Dresses | Up’ for Tournament ° i) Bismarck Monday was “dress- ing up” for the North Dakota state high school basketball tour- nament, which will be held in the World War Memorial building here Wednesday and Thursday. Tuesday the Capital City will Welcome the vanguard of four- Score high school regional cham- pions, their eight coaches, and hundreds of cage fans from thoughout the state. Business houses in the city were decorating their show windows with a view to adding color to the annual athletic classic. Lenhart’s Drug Store will ex- hibit the trophies which will be awarded to various winners in the tournament. Eight other business houses are decorating their win- dows representative of each of the eight teams in the tourney. These are as follows: Klein’s— Minot; Finney's Drug Store— Devils Lake; Hoskins-Meyer — Mandan; Thorberg’s Cafe—Fargo; Bergeson’s — Jamestown; Rich- mond's Bootery—Williston yee Yankton Ice Gorge Continues to Hold Yankton, 8. D., March 21.—(7}—An ice gorge in the Missouri river about water over adjacent lowlands held fast Monday. but rose again and ‘on Monday the gauge read 13.82 feet, only slightly below the high point of 13.66 feet on paensy, The flood stage here is 12 eet A heavy flow of drift ice Monday continued to enlarge the jam vw.’