The Bismarck Tribune Newspaper, May 25, 1932, Page 1

| Oil Scandal Figure Pays Deb ‘IRISH NATIVES GREET AMELIA AFTER OCEAN HOP '¢ North Dakota’s Oldest Newspaper ‘axes. THE BISMARCK TRIBUNE ESTABLISHED 1873 Democrats Face Internal Fi HARRY M. BLACKMER ADJUSTS TROUBLES ON INCOME TAXES Man Who Fled Country to Es- cape Testifying Settles For $3,669,784 IS REPORTED HOMESICK Self-Imposed Expatriation Said to Pall on Oil Industry Croesus Denver, Colo, May 25.—(#)—The home town that Harry M. Blackmer has not seen for five years speculated Wednesday as to whether the oil Croesus would divest himself of the “man without a country” tag at a cosé of millions. Word was yeceived by the Rocky Mountain News that Blackmer, who refused to come back from Paris dur- ing the Teapot Dome scandals and thereby started a string of troubles for himself, has settled his tax dif- ficulties with the federal government for $3,669,784. A Washington dispatch to the newspaper said Blackmer adjusted his civil lidbilities with the govern- ment last Wednesday and that the U. 8S. treasury has the cash it de- manded. Through his attorneys at Washington, he paid Wednesday fines totaling $60,000 for failure to appear as a witness in two cases brought in federal court here in connection with the oil scandals. Didn't Buy Immunity All this led to belief in some quar- ters that Blackmer, tired of life in ning to come home. But the news said the payment of the millions did not purchase immunity from crim- inal prosecution, and that Blackmer still must face a fraud indictment in Colorado federal court. The indict- ment: is connected with alleged at- tempts to evade income tax. Up to now there has been no in- dictation Blackmer was dissatisfied with his self-imposed expatriation. Contentedly eating American break- fasts of ham and eggs in exclusive hotels at Paris and golfing at Mon- aco, Cannes and Nice, he said he took no interest in American leggl pro- cedure. Once, however, there came a dis- patch saying he was preparing to look at his old Denver home on a film. . After the Teapot Dome scandals broke, his presence was sought as a witness in the trials of Harry F. Sin- clair and Albert B. Fall, former sec- retary of the interior. He stuck to his refusal to return from Paris. Special Law Following the revelation of the cir- cumstances surrounding the leases of Teapot Dome and Elk Hills naval oil reserves a law was passed giving the government power to punish wit- nesses who refused to come from foreign countries to testify. A summons was served on Black- mer, who was supposed to know much of the transactions of the Continen- tal Trading company, which bought some of the Teapot Dome oil after the oil reserve passed to a Sinclair company. He paid no attention, The government seized $100,000 in Liberty bonds he owned and he was) fined $60.000. Now. the dispatch to the News said, his attorneys have signed a stipula- tion which confessed judgment for the full amount of taxes, penalties and interest on his income for the years 1920-1923 which the govern- ment, in final computations, held to be due the treasury. ATTORNEY SAYS CLIENT WILL NOT RETURN HOME Washington, “May 25:-()—Despite settlement, of income tax claims to- taling approximately $4,000,000 and Payment of a $60,000 contempt o? court fine, Harry M. Blackmer, does not plan to return to the United States. This was made known Wednesday by George Gordon Battle, attorney for the Denver oil man, after he had paid the fine for. refusing to testify for the government in the Teapot Dome tria's of Harry. F. Sinclair and Albert B. Falt. Battle paid $60,000 to Frank E£. Cunningham, clerk of the District of Columbia supteme court, who in- structed Edgar C. Snyder, the United States marshal, to turn over $100,000 in 3% pér cent liberty tonds belong- ing to Blackmer which had been seized. This was done. The bonds, which have been in the marshal’s custody tor three years at @ local bank, had all interest coupons attached. + Iowa Bootlegger Is Paris and on the Riviera, was plan-| i 1 | first woman to \DEMOGRATS OFFER BILL FOR RELIEF OF | NATION'S JOBLESS Steering and Policy Committees Approve Measure for $2,300,000,000 Washington, May 25.—(F)—A §2,- 300,000,000 Democratic bill for une: ployment relief and revival of indus- {try was laid Wedn:sday before the senate with the approval of the com- bined Democratic steering and policy committees. The bill was introduced by Senator Wagner (Dem., N. Y.), on behalf of five Democratic senators who drafted it. He took issue with President Hoo- ver's objections to a bond issue for |public works, telling the senate “there is no merit in the president's criticism jthat public works provide but transi- tory employment. Surely transitory employment is better than none. | “Furthermore, federal public works {do not differe in that respect from local toll bridges and tunnels which are agreed to by. the president.” ‘Wagner said the bill offered “as conservative a program of legislaticn as the severity of the president emergency will permit,” and added: “We canont overlook the fact that, according to the department of labor there are, in 123 pose holies, less \than one-third of the nation’s popu: lation. more than 700,000 famiiles who are living on charity.” ‘Would Loan to States The bill proposes: Allotment of $300,000,000 under the present capitalization of the recon- struction corporation for loans to states for direct relief to the jobless capitalization of the corporation for loans for eg be gorestod constructior, both public and private. A bond issue of $500,000,000 for 2 iblic works program. : Pane committee agreed to. put ‘the relief bill before the senate as soon as the pending revenue measure has Mtecnwhile, in ‘the house, Speaker Garner announced his $2,100,000,000 relief program had been ‘Irafted into legislation and would be introduced in the house Thursday. . The senate Democratic bill proposeu to divide the $500,000,000 for public works as follows: For federal aid highway systems, oer emergency construction of pub lic roads, $16,000,000.* For. prosecution of river and harbor projects already authoriz=d $30,000,000. For prosecution of flood control ‘An increase of $1,500,000 in the|PO! l¢ Asserts Senators | Like Own Voices | me: | Washington, May 25—(AP)— Senator Connally of Texas has a brand new, first-class reason for objecting to night sessions. The senators, he contends, make a “grand opera” affair of night work, talking themselves blue in the face for the benefit of packed galleries. In daytime, . when most people are hard at ° Texan, there are so many vacant gallery chairs the legisators are apt to save their breath, JERSEY PREPARES TO INDICT CURTIS Eagle Will Testify Against ¢ Norfolk Man state laid plans Wednesday to rush the indictment and trial of John Hughes Curtis of Norfolk for his hoax Negotiations in the Lindbergh kid- naping mystery. His case will be called before the grand jury Thursday. Although au- thorities hope to avoid calling Col Charles A. Lindbergh as a witness, the flier will not hestiate to testify at the trial if Curtis is indicted and such testimony is required, it was made Plain. Prosecutor Anthony Hauck, Jr., de- cided to proceed at once against Cur- tis after conferring with Col. H. Nor- rea Schwarzkopf, head of the state eC. “T believe the evidence justifies in- dictment dnd that it will be possib.e to try Curtis in June.” he said. Dr. John Grier Hibben, friend o! Col. Lindbergh, spurned the idea the filer's dislike for publicity. might pre- vent his appéarance at the trial. “He will certainly not seek to avoia his responsibility as a citizen in any way.” Dr. Hibben said. Meanwhile. at Becket, Mass., Dr. John F Condon, the “Jafsie” wh. paid the $50,000 ransom to swindler, hoped for a reply to an appeal he made to.“John.” This was.the name given by the person who got the money in a Bronx cemetery. “John, money I gave you is useless.” the appeal said. “You can't get rid of it, Return it to Col. Lindbergh in time. Get your $25,000 reward. The reward was offered by the state of New Jersey in a proclama- tion issued Tuesday. projects already auhaorized, $15,- 500. Me” ontinuation of construction of the Hoover dam, $10,000,000. For air navigation facilities under the commerce department, construc- tion of lighthouses and boats $7,500,- 000. é ; construction projects already authorized under the bureau of yards and docks, navy department. ‘Victim of Gang War Nick J. Coin, 60, tri-city who recently completed @ 90-day jail sentence on liquor charges, was slain by two unidentified men who opened fire with shotguns as their car pass- ed him on a street corner near his home early Wednesday. Mrs.. Coin gave gui answers concerning a threatening letter Coin Teceived a week before. The note, Davenport, Iowa, May 25.—(#)-~/ilc buildings bootlegger | 000,000. $10,000,000. mergency construction of pub- Fotidings already authorized, $100,- available for permanent ts selected by the presiden: Bee oe cave etborpee. Pugh. to Decide Dunn work, says the limber-tongued ¢ Lindbergh's Friend Says Lone} Hopewell, N. J., May 25.—(P)—The | BISMARCK, NORTH DAKOTA, WEDNESDAY, MAY 25, 1932 (Copyright by The London Mitror—Associated Press Radiophoto via R.C.A. Transmission) This picture, sent by radio from London to New York, shows Amelia Earhart Putnam (center), the ly “he Atlantic alone, as she was greeted by the people of Londonderry, Ireland, after épanning the Atlantic in less than 15 hours, BONDS FOR ALLEGED “8.0. BANK ROBBERS ~ PLACED AT $000 | Three Suspects at Ipswich Waive Preliminary Hearing; Other Demands Voice | | Ipswich, 8. D., May 25—()—In a | Small courtroom before Justice of the | Peace Charles Bostock and more than | 500 spectators, Eugene Van Tress and | Reinhold Engel, two of four men al- | leged to have robbed the Bank of Ips- | wich last Wednesday, waived prelim- |inary hearing Tuesday and were | bound over to the next term of circuit jcourt under $150,000 bail each. recommended substantial bond. | the second, robbery. ; Other charges said to be pending jagainst the robber quartet include to kill the bank president, Beebe. Phil Ray, last of the bandit quar- tet to be arraigned before Justice Bos- tock demanded a preliminary hearing. This was to be held at 2 p. m. We: nesday. His bail was set at $150,000. Sidney Roycraft, facing the same charge as his three companions, waiv- ed preliminary hearing and his bonds were fixed at the same amount. 5 pou men were unable to furnish jond. Six Children Born At Local Hospitals Six children were born at Bis- marck’s two hospitals Tuesday aft- ernoon and evening and Wednesday morning, two of them to Bismarck perents. A daughter was born Wednesday morning at St. Alexius hospital to Mr. and Mrs. Henry Jones, Bismarck, while Mr. and Mrs. Julius Andahl, also of Bismarck, are parents of a daughter born Tuesday afternoon at the Bismarck hospital. Other births were as follows: dayghter to Mr. and Mrs. John J. M. Plin t to Government tiinstasy COALITION LEADERS ATTEMPT 'T0 RETAIN Are Subjected to Vigorous As- sault by Advocates of Gen- eral Sales Tax ATTACK AUTOMOBILE BILL Committee Reduces Tires-Tubes Sales Tax After Chang- ing Its Mind Washington, May 25.—(®)}—New tariff disputes engaged the senate Wednesday in the resumption of de- bate on the billion-dollar revenue bill. At the outset, (Dem., Mo.) sought to have Philip- pine products exempted from the im- port tax that has been proposed for vegetable and fish oils and oil bear- ing seeds. A little earlier, the senate finance committee changed its mind again on another item. It reduced the 10 per cent sales tax on tires and tubes to jtwo and a quarter cents a pound on tires and four cents on tubes. The commiftee restored to the bill the 10 per cent sales tax on cosmetics and toilet preparations. The most strenuous effort of the Senate's bi-party coalition leaders was jcalled on Wednesday to retain the | Special excise tax schedule. More than half the measure's esti- mated yield must come from these taxes and against them is concen- trated the vigorous assault of two diametrically opposed groups—ad- |vocates of the general saies tax and |sponsors of still higher income taxes. battleground. {coalition had suffered its first defeat {in all the protracted struggie on this |measure. The first change made by |the senate in the pill came in reduc- ling the motor truck levy from the jthree per cent which the finance committee had proposed to the two ‘per cent rate-passed by the house. | Offered as a substitute for all the automobile taxes, Senator Bingham | \(Rep., Conn.) Wednesday had pen ing one more proposal to tax 2.75 beer. AS a definite gain for the revenue |measure’s sponsors, however, it a ;members was broken Tuesday night when the proposal of Senator Norris (Rep., Neb.) to incorporate the ex- port debenture farm relief plan was laid aside, 46 to 33; | Auto Tax Defeated Reaching the first of the excise |taxes—the automobile schedule — States Attorney Louis H. Tschirley right afterwards, the senate refused, |he has planted no crops on his “im- |39 to 30, to approve the increased The complaints in each case con- truck tax, put after a sharp warn- Stand of volunteer sweet clover. tained two counts, the first charging! ing from leaders that advocates of |knows the moisture is there because the entering of a bank for the pur- | sales tax, high income tax and beer |it has had no opportunity to run off pose of committing a felonious act, were combining to beat the excise |and tests show the moisture is in the rates, the senate switched about and by a vote of 40 to 29 retained the two per cent tax on trucks, yielding $4,- per cent on passenger automobiles and one per cent on accessories. | The senate finance committee com- promise calls for four and two per cent, respectively. The 10 per cent tax on cosmetics and toilet preparations as carried ir the house bill is expected to yiela about $20,000,000. It was voted in by the committee to make up an estimated loss of that amount caused by reducing the rub- ber sales tax. The 2.25 cent and fou: cent levies are expected to yield about $33,000,000. The 10 per cent sales tax on tires and tubes was voted in Tuesday as a substitute for earlier 3 and 5 cent levies. | Home Loan Discount Bank Bill Is Drawn Lay Washington, May 25—(#)—The last of the administration's emergency proposals—the Luce home loan dis- count bank bill—was advanced a step Wednesday by apprqval of the house Huthmacher, Dickinson, and son to Mr. and Mrs. Raphael P. Magelky, Fort Rice, at St. Alexius Tuesday; feat ete and Mrs, ead Bastian, , Tuesday, and daughter to Mr. and Mrs. Kristian Monson, Car- son, Wednesday morning at the Bis- marck hospital. Recall Election Soon Dickinson, N. D. May 25.—(>)— Whether an election is to be called ye New Tiny Planetoid Neighbor of ~Earth Seen by German Astronomer banking committee. The measure provides for a fed- eral home loan bank system with a total capital of $125,000,000. It was: redrafted by a subcommittee headed | by Representative Reilly (Dem., Wis.) He goes before the rules committee Thursday to ask for legislative right- of-way for the bill. EXCISE SCHEDULES AT MEETING HERE Senator Hawes | | Automobile taxes were Wednesday's | Tuesday night the 'WATER RESOURCES | OF STATE PLOTTED Conservation Projects Are Re- viewed at G. N. D. A. Gath- ering Tuesday Night WILL FORMULATE POLICY Development Organization to Get Behind Movement in | North Dakota What it can do to support and cor- telate the various water conservation | Projects now proposed for North Da- kota will be decided by the Greater North Dakota association's directors at a meeting in Bismarck Wednesday Tuesday night they heard all phases {of the matter discussed at a meeting in the Patterson hotel. Among those ;Who spoke were Governor George F iShafer, State Engineer R. E. Ken- ‘nedy, E. F. Chandler, dean of the en- [gineering school at the state univer- sity; E. L. Lium, city engineer a: Grand Forks; Frayne Baker, and O |W. Roberts, federal meteorologist, | Bismarck; L. G. Rose, Beulah; Burnie Maurek, state game and fish commis- ;Sioner; E. H. Tostevin, Mandan, and John Kassens, Ward county farmer. All talked about the water conser- vation problems of the state and agreed that anything which can be done to hold within the state the wa- ter available would be of benefit. to hold whatever rainfall occurs on jthe farm land of the state, calling it {contour farming. It is an adaptation \of terrace farming as it is practiced jin Japan and some other countries. ‘of land, has applied the idea to 25 ;acres of his farm and said it is we four and a half feet down, while 'se where on his farm the moisture is |down only 14 inches. | Beginning with the high point on j@ piece of land, Kassens levels it off ,at intervals, throwing a levee around the outer edge of each level. In the fall he uses a lister to cut ditches in peared the battle of the anti-tariff/¢ach level and these fill with snow in | the 1914 rates. winter, adding to the moisture conet winter, adding to the moisture content |half the plowing. In the spring he | plows between the listed ditches and ‘then harrows down the whole piece. Plows in Circles | Because of the irregularity of the ,contours, he plows in circles. As yet jproved” land but has an excellent | He ground. He believes the system could ibe applied to a large amount of land jin North Dakota and wovld insure kidnaping of the bank cashier, Ches- | 000,000. The three per cent rate would | good crons, even in dry years, by mak- {ter Doolittle, and assault with intent {have produced an estimated $6,000.- jing the best use of whatever rainfali 000. The house imposed a tax of three | (Continued on page two) HOOVER AND GARNER | WINNERS IN TEXAS President Has Enough Definite- ly Pledged Votes to As- sure Renomination (By The Associated Press) In definitely pledged votes to be cast three weeks hence at the Repub- lican national convention, President Hoover held Wednesday the strength needed for his renomination. The mark—578—was passed when Texas Tuesday instructed its delega- tion of 49 for him, bringing the as- sured Hoover votes to 621, and the total claimed for him by local lead- ers in 14 states but disputed by Joseph I. France, rival candidate, to 1,044. There are. only 1,154 votes in the convention. The nominating total was reached as the president and party officials conferred on the platform the con- vention is to adopt. Prohibition was one of the subjects touched on, the conferees said, but no decisions were given, In the Democratic fold Speaker Garner Tuesday drew the 46 conven- tion votes of his home state, Texas, to take rank as third among the presidential candidates with a total of 90. Franklin D. Roosevelt increas- ed his strength to 474 with six from Delaware, while New Jersey's previ- ously named 32 delegates were assign- ed definitely to Alfred E. Smith, lea ing his second place total at 94 votes. No new delegations were named Wednesday but Thursday Maryland Republicans will pick 19 delegates for of his primary Kasscns advanced an original idea | Kassens, who farms a half section | \M. Hendricks, traffic expert of the) ("arom | Gro le | g Homesick HARRY M. BLACKMER jHarry M. Blackmer, oil Croesus who jfled the country to escape testifying in the Teapot Dome scandal, is re- {ported to be growing homesick de- ispite his life of luxury in Europe. iHe has settled his tax difficulties ;With the federal government and is expected to pay fines totaling $60,000, imposed because of his failure to ap- pear as a witness in the Teapot Dome probe. However, he still faces crim- inal charges. SAYS RATE BOOST | WOULD COST STATE $4,000,000 YEARLY 'North Dakota Man Testifies in Opposition to Jump in Freight Charges i | Kansas City, Mo. May 25.—()—E. | {North Dakota railroad commission, testified before Interstate Commerce {commission examiners’ Wednesday in jthe reopened grain rate investigation ithat increases proposed by the rail- jroads are in some instances 123 per jcent higher than they were in 1914. ;The present rates, he said, are ap- |Proximately 50 per cent higher than Ben C. Larkin, president of the | State commission, who is in charge of {the presentation ofthe grain case |for North Dakota, on examination of | Hendricks, brought out a comparison jOf former, present and proposed rates. | Hendricks submitted 10 exhibits showing rate and statistical studies of grain prodficts, rail movement, rate operation and traffic analyses on wheat, barley, rye, flaxseed and other grains grown in North Dakota and shipped to Minneapolis. and Duluth. Certain statistical exhibits showed in detail the tonnage of wheat and jother grain originated in North Da- kota for a period of nine years. “Wheat constitutes approximately 50 per cent of the total tonnage orig- linated by the railroads in North Da- jkota,” Hendricks testified. “Coarse grains and flaxseed account for ap- proximately 20 per cent more of the total tonnage. Products of agricul- ture are by far the most important tonnage originated by the North Da- kota carriers.” Hendricks submitted an exhibit showing rate studies from selected points in North Dakota to Minneap- olis and increases in rates made on grain for a period beginning March 25 to date. He said the proposed rates, in some instances, would be 50 per cent higher than the. rates in 1914, while in some instances, they would be 123 per cent higher. Statement Shows Increases A ‘statement was presented by Hendricks showing increases in freight charges on grain from North Dakota to Minneapolis, proposed by the railroads, and was based on the annual average production of the years, 1929, 1930 and 1931. This ex- hibit showed that if the rates pro- posed by the carriers were allowed to go into effect the average increase would - be approximately $4,000,000 yearly on wheat, coarse grains and flaxseed. Hendricks said it was his opinion that rates on grain are already too high, that the carriers have failed to justify any increases and that it is unfair to charge exhorbitant rates on ————,,| T0 OFFER NAMES jtion is expected within the next two The Weather ~~ Fair tonight and Thursday. ~ Cooler tonight. PRICE FIVE CENTS ; ght IN JUNE ELECTION Would Give Opposition to Lan- ier and De Puy, Indorsed at New Rockford PETITIONS ARE CIRCULATED Saturday is Closing Date For Candidates to Get Names on Ballot Dickinson, N. D., May 25.—()—Pe- titions to file Halvor L. Halvorson, Minot, as a candidate for United States senator, Tobias Casey, Dick- inson for governor, and W. E. Cook, Harvey, for congressman on the Dem- ‘ ocratic ticket in opposition to the candidates selected at the party's state convention will be filed late Wednesday or Thursday, Casey told the Associated Press Wednesday. Casey said he and the other two candidates have consented to make the race. The Democratic convention chose P. W. Lanier, Jamestown, for United States senator, H. C. DePuy, Grafton, for governor, and R. B. Murphy, Bis- marck, and W. D. Lynch, Lamoure, for the two congressional nominations. Casey said circulation of the peti- tions has been completed and more than the number of signatures re- quired obtained. He planned to go to Bismarck Wednesday to file the petitions with the secretary of state. Casey's name was placed before the New Rockford meeting as a candidate for the gubernatgsial indorsement but he was decisively defeated. Halvorson’s name was not mention- ed for any office at the New Rock- ford convention, although it had been considered in pre-convention specula- tion. Petitions to place candidates on the June 29 primary ballot must be filed with the secretary of state not later than Saturday. Filing of the slate selected by the Democratic conven- days, according to R. B. Murphy of Bismarck, indorsed for congress and in charge of presenting petitions, NONPARTISANS FILE CANDIDATE PETITIONS The slate of candidates indorsed by the Nonpartisan League for state and congressional nominations was filed with the secretary of state Wednesday for entry on the Republican ballot in the June 29 primary election. At the same time, petitions bearing 4,000 signatures were filed for U. L. Burdick, Fargo, indorsed by the pro- gressive Republican party as a candi- date for congress. Three hundred signatures are required. The Nonpartisan League petitions, bearing in excess of 900 names for each candidate, placed the following candidates on the ticket. United States Senator—Gerald P, Nye, Cooperstown, incumbent. Congress—J. H. Sinclair, Kenmare incumbent; William Lemke, Fargo. Governor—William Langer, Bis- marck. Lieutenant Governor—O. H. Olson, New Rockford. Secretary of State—Robert Byrne, incumbent. State Treasurer—Alfred Dale, Bis- marck. Attorney General—A, J. Gronna, Williston. Superintendent of Public Instruc- tion—A. E. Thompson, Washburn. Commissioner of Agriculture and Labor—John Huseby, Finley. Commissioner of Insurance—S. A. Olsness, incumbent. Railroad Commissioner—Ben C. Larkin, incumbent. Democrats of Texas Want Dry Law Vote Houston, Tex., May 25.—()—Texas Democrats favor John N. Garner for President but differ on prohibition. After assuring the Texan, now speaker of the house, 46 votes in the Democratic national convention, the state convention Tuesday night de- clared for submission of the question of repeal of the prohibition law t> the states. It was a disorderly end- ing of an otherwise harmonious Gar- ner meeting. The submission question arose sud- denly, although a wet faction had in- dicated before the opening of the convention it would press for a dec- laration on prohibition. Submission was declared carried by a viva voce vote. Dry leaders leaped to the plat- | apy to make up deficits due to loss other traffic. He called attention to exhibit by Dr. Alva H. Benton of Fargo showing the condition of agriculture in North Dakota and said form and demanded a roll call, soms of them shouting “dirty, dirty.” vote was 851 to 564 for Publishers to Meet With Hoover ‘Tonight