The Bismarck Tribune Newspaper, September 19, 1932, Page 2

THE BISMARCK TRIBUNE, ‘y= COLUMBIANS SEEK TO WAR WITH PERU Senate Authorizes National De- fense Fund Following Seizure of Seaport T the practice in North Dakota, so that South Dakota, like our state, is the largest single land owner in the state. Only 2,211 loans out of 12,116 have been paid. March 14, 1925, the South Daketa legislature called a halt on the department's operations. This is a good hint for the next North Dakota legislature. This, then, brings us to a point we wish to make. Judging that only 2,211 loans have been made, the volume of business done by the state rural credit department is some- |where in the neighborhood of $50,- Bogota, Colombia, Sept. 19.—( AP) | 00,000. —Tens of thousands of Colombians clamored for war with Peru and went down in their pocketbooks and jewel cases to provide funds to fi- nance it, The senate passed on second read- ing a bill authorizing the govern- ment to arrange a credit of $10,-) 000,000 for national defense. The action followed a report on the seiz- ure Sept. 1 by Peruvian citizens of the Colombian port of Leticia on the Amazon. Leticia was ceded to Col- ombia in the boundary treaty with Peru in 1922. Although the Peruvian govern- | Listen, attentive taxpayer! What do you think it will ultim- ately cost South Dakota to loan this money, even as it is costing you, Mr. | North Dakota Taxpayer, for the! The staggering sum of more than a million a year for every year the is hard to estimate the cost accurate- ly, but it has been so excessively high as to result in almost a 10,000,000 dollar deficit to date. And the cost item of the rural ment informed Colombia as far as it | CTedit experiment to the taxpayer | knew no Peruvian soldiers were in- has not been finally established andj volved in the seizure and that it was }C@nnot be until the day of final! merely @ regional affair, the milling | liquidation. crowds which iiilea the streets here throughout the night shouted for war and yelled “down with Sanchez Cerro!” Luis M. Sanchez Cerro is president of Peru. Women offered their jewels to the government and large subscriptions were pledged by various organiza- tions. Among these was an offer of $50,000 from the Jockey club, $10,000 from the Students’ association, $50,- 000 from a lottery and $1,000 from the newspaper El Tiempo. Enough is known now; to make a reasonable man know he has had enough of such squander- ing of public money. The rural credit director's report on the operating expense of the bu- 1920, showed $1,149,642.61. Against this item was $827,161.40 of earned | income, so the loss for that year alone was $322,481.21. This has been going on since 1917. I have before me the last printed report of Director Willy in which he} says in the last 14 years of operation Dispatches from various parts of | ® $10,000,000 balance has been “grad- | the country reported patriotic dem- | Ually and regularly” consumed to pay! onstrations in other princi etc Farmers Troubled By High Taxes and Depressed Prices} ing is not far distant and when the taxpayers of the state read the results in their tax bills there will have to be some tall explaining. Members of the legislature soon to convene in North Dakota should take & few pages from South Dakota’s| plight and bend every effort to clean up the financial mess which several programs have caused. ' But to return to the South Dakota | situation. Total assets of the South | Dakota rural credits board in round) figures are $38,000,000. Half of this! amount consists of book value on land owned by the department. These acres are off the tax lists and in most instances unproductive, a situation adding appreciably to the tax load of; the people. Already the state has supplied to this department from tax levies and legislative appropriations $4,486,593.- 36. This has been charged to opcrat- e 5 ‘mf gaunt, the assets mentioned, the! rural credits board has liabilities of some $42,000,000. These are mainly bonds due or past due. On Sept. 13,; the state board of finance was forced to authorize a loan of $50,000 to pre- vent default of bond interest. ‘The rural credits department has called for bids to be opened Sept. 29 for $1,500,000 proposed bonds, the proceeds of which is to be used to pay maturing bonds and interest due between Oct. 15 and Jan. 1, 1933. ‘These two incidents reflect some of the extremities to which the rural credits system of the state must re- Need Close Attention Whoever is elected governor in! North Dakota must focus attention and publicity upon our own farm loan operations, both as conducted! by the Bank of North Dakota and also by the board of university and school lands. This situation has been allowed to drift in our state. South Dakota is facing the music now and pal cities, | the OPERATING EXPENSES of the H rural credits departments. North Da- kota’s rural credit picture may not be as black, but the situation should have a thorough airing at the next session. Four reasons are assigned for South Dakota's failure to make rural credits a going concern. They are typical the nation over where such enterprises have been tried: First—Insufficient interest margin. | Second—Lax Collections. | Third—Too liberal credit. Fourth—The farm depression. Mr. Willy puts farm depression as the last of the causes. He does not say “least” of them, however. * OO But the South Dakota picture is not complete yet. At Haynes, N. D.,| the state is involved in a state-| owned coal mine. This state enter-| prise is operated under the title of the South Dakota Coal Mining com- mission. Originally $150,000 was ap- Propriated to start South Dakota in- to the coal business in 1919. Two! subsequent appropriations brought | the “kitty” up te the grand total of! $185,000. It was intended that the mine should make money and the state treasury be paid back the $185,- 000. The taxpayers are still holding the sack and 11 years of operation has produced no tangible profits. This $185,000 “lo-n” by the state to! the coal commission at 5 per cent} now represents an investment of| $351,130. No depletion or deprecia- tion reserve is being set uy at the mine and the charge is made that| coal is being sold at a price less than the cost of production. Here again the taxpayer is getting mulcted be-| cause th. state is engaged in a very questionable venture. The books{ show a deficit since operation of] more than $60,000. * Kk x _ North Dakota turned to the mili- ing of flour as an experiment after | trying out the creamery and home| building businesses in addition to; banking. South Dakota found more romance in coal mining and cement manufacture. In addition to the lig-| nite mine at Haynes, South Dakota has a cement plant at Rapid City. ‘1 The state's cement experience has not run long enough to establish the! usual batting average of losses. Its books show that one hand has al-| most washed the other. So far the finds the situation trying, to say the least. Last March South Dakota was forced to pay 6%; per cent interest on @ $1,000,000 bond issue sold to save the rural credits department from chaos. To save paying such excessive interest rates, the depart- state has been swapping dollars, on paper at least. But here again, de- preciation and other items are not considered in figuring operating Profits. Those who have made a study of the Rapid City cement plant are of the opinion that if the inter- ment is asking the state to loan the rural credit department out of its surplus in other funds at 2 per cent, the rate paid to the state by the banks. State officials are moving slowly along this line as they must protect the operating funds so that the state has sufficient money to meet current obligations. The state board of equalization of South Dakota has dodged making a sufficient levy to hold up the rural credits department. The director asked for a levy of $3,000,000. Gov- ernor Green objected, saying this levy would counteract most of the budget reductions made by the vari- ous counties. He favors passing the “buck” to the next legislature. Gov. Green says the taxpayers cannot} Various trial program. But a pay day is in-| evitable and the taxpayers will have to be given the whole picture in North Dakota, as is being done fear- lessly in this state. Interest is a re- lentless boss. Politicians in this state have been able to juggle the finances to postpone the grief, but now, in the pinch of economic condi- tions, {sre is no place to go and! the situation has to be faced square- Are State Liability must remember, too, credit bonds in South ll as North Dakota are 5 i ie nt ii H if fereclooures such as has been rex est and depreciation were figured, as is done in all going businesses, the cement plant instead of showing that it is breaking even would actually be in the red. Yet the state is young| in the cement business into which it has not plunged as deeply as into the rural credit business. The cement plant under caption of “internal improvement” has assigned to it $270,000 in 6% bonds and $1,-| 730,000 in 5 per cent bonds making a total of $2,000,000 which started the | state in the cement business. There Was a balance in the cement fund June 30, 1931, of $1,283,248.54, This then, in brief, is South Da- kota’s record in the field of govern- ment ownership. It is probably no iter or no worse than what has obtained in other states when gov- ernment embarks in business. It will take a long time to liquidate certain state enterprises in North and South Dakota but if the jeb is tackled in the proper spirit a great | stride toward real tax relief will have | been accomplished, Next in imporiance then will come the de’unking of our educational budgets. The tax pruner has just made a gocd start in these twin states of the Missouri Valley. | NTINUE from page one Roosevelt Visits Butte, Montana, in Trip Through West e| week-end stop at Los Angeles. The third of Roosevelt's four major speeches on the trip will be at Port- land auditorium Wednesday night. Public utilities, a subject that has Occupied much of Roosevelt’s atten- tion as New York governor, will be discussed at the Oregon city. The other two major speecheg of this trip were at Topeka, Kas. and Salt Lake City. Governor Ross and Senator Walsh assured Roosevelt, as had leaders in Missourl, Kansas, Colorado, Wyom- ing, and Utah, that there was a trend in Idaho and Montana toward his candidacy, Make Optimistic Forecasts ‘They predicted he would find their aad the Roosevelt column next lov. Several times Sunday night, Roose- from his railroad —————-. ° | Weather Report | -————_-— ° FORECASTS For Bismarck and vicinity: Un- settled tonight; Tuesday partly cloudy x and slightly warmer; frost to- night should sky clear. For North Da- kota: Unsettled, cooler east portion tonight; Tuesday partly cloudy, slightly warmer west portion; local frost tonight should sky clear. ‘same kind of an experiment in your| Unsettled and cooler to- state? {night, local frost west and north if Costs Million a Year sky clears; Tuesday generally fair; slightly warmer west portion. For Montana: Unsettled tonight, department has been operating. It;somewhat warmer north-central and extreme west portions; Tuesday gen- erally fair, farmer east and south portions. For Minnesota: Cloudy to partly cloudy tonight and Tuesday, local showers tonight; cooler tonight and in extreme southeast lay. GENERAL CONDITIONS A low pressure area extends from Manitoba and Ontario southwestward to Colorado while a high pressure area is centered over Oregon. Preci- pitation occurred throughout the Canadian Provinces and at scattered places in the northern border states and in the Mississippi Valley. Tem- peratures are moderate over the Great Lakes region and Mississippi Valley but cooler weather prevails over the Plains States and northern Rocky Mountain region, Missouri river stage at 7 a. m. 0.1 ft. Sunday, 0.1 ft. Bismarck station barometer, 27.96 inches. Reduced to sea level, 29.73, TEMPERATURE Highest yesterday Lowest last night . PRECIPITATION Amt. 24 hrs, ending 7 a. m. Total this month to date .. Normal, this month to date Total, Jan. 1 to date .. Normal, Jan. 1 to date feet arte deficiency since Jan. BISMARCK, pcldy Amenia, cldy. . Beach, cldy. . Bottineau, peldy. Carrington, clear 81 38 «(00 69 28.25; a 40 «00 Crosby, peldy. ..... . 33.00 Devils Lake, cldy. . 42 01 Dickinson, cldy. .... 36.00 Drake, clear ..... 40 00 Dunn Center, cldy. 36.00 Ellendale, rain ... 42.00 Fessenden, clear . 41.00 Grand Forks, cldy. 35.00 Hankinson, cldy. 47 AT Jamestown, cldy. 78 38 .00) Larimore, peldy. . 73 39 «6.00 Lisbon, cldy. . 79 46 «00 Max, cldy. . 78 37 «6.00 Minot, clear . 71 39 «00 Napoleon, cidy. 78 43 .00) ; Oakes, cldy. . 82 41 =O Pembina, pcldy. . 66 3507 Williston, cldy. 7% 42 00 Moorhead, Minn, cldy.. 76 52 .00 For 48 hours. GENERAL High Low Ins. Other Stations— ‘Temprs. Pre. Boise, Idaho, peldy. .... 62 F Calgary, Alta., cldy..... 44 36 .10 Chicago, Il., peldy.. Denver, Colo., cldy.. 86 00 Des Moines, Ia., cldy... 88 72 - 30 Dodge City, Kan., clear 94 66 Edmonton, Alta., cldy... 44 40 Havre, Mont., rain 5: Helena, Mont., cldy. Huron, 8. D., cldy. ..... 86 52 .00 Kansas City, Mo., clear 7 00 Miles City, Mont., pcldy. 68 46 .00 No. Platte, Neb., cldy... 94 52 od 00 00 30 Oklahoma City, O., clear 92 66 Pierre, 8. D., cldy. ..... 80 54 Rapid City, S. D., cldy. 70 St. Louis, Mo., cldy..... 86 68 St. Paul, Minn., clear... 78 58 Salt Lake City, U., peldy.74 48 .00/ Seattle, Wash., rain ... 58 48 .06 Sheridan, Wyo., cldy. 66 46 6.00 Sioux City, Ia., cldy..... 92 60 00 Spokane, Wash., cldy... 56 42 .00 Swift Current, §. rain. 44 34 .08 The Pas, Man., peldy... 50 38 Toledo, Ohio, clear. 72 Winnipeg, Man., cldy... 52 42 .72 For 24 hours. 38 speech made last Saturday night at Salt Lake City. A proposal that the government announce it would stand behind the railroads for a specified period if they would agree to accept a nation- al transportation policy was made Saturday night by Roosevelt. It was one of seven suggestions; the nominee made for dealing with troubles of the railroads. Roosevelt said the policy should be developed “with the aid of legislative and administrative officials and rep- resentatives of all interests most deeply concerned with the welfare and service of the railroads, includ-| ing investors, labor, shippers and’ passengers.” Lists Other Proposals The other proposals of the New York governor were: A thorough overhauling of the fed eral laws “affecting railroad receiv- erships and indeed of all kinds of public utility receiverships,” to aid in rehabilitating roads unable to withstand the present strain or that might succumb to mismanagement. Regulation of the interstate com- merce commission of competing mo- tor carriers; railroads to be ,to supplement their transportation facilities with motor service where it will promote the public interest. Relieve the interstate commerce commission of requiring competition where traffic is insufficient to sup- port competing lines; encourage the Press to a conclusion proposed lawful and in the public interest; more clearly define the objects, pow- merce commission in promoting and safeguarding all the interrelated par- ticular interests comprehended with- in the public interest, Subject railroad holding companies to the regulation and control of the interstate commerce commission, “And it is clear to me that all the men and women who are employed on our great trans systems are entitled to the hi wages the industry can sffotd to pay,” was the way he concluded the outline of his seventh point. ee VALLEY IN OCEAN Montreal—Let anyone mention un- the U. 8. Coast and Geodetic Survey has located a sunken in the floor of the Pacific that may be valu- able to mariners. It is three miles long, one mile wide and about 1,200 water landmark. loans neces-| velt im his platform speeches, rei-| feet deep. It is an important under- terated passages Kg elimination of non-paying mileage. ; consolidations of railroads that are)" ers and duties of the interstate com-|§ Extensive Reception of Commis- sion Here Played Part in Victory Editor's Note: This is another. in a series of articles written for The Associated Press by Burleigh F. Spalding of Fargo, a member of the commission which located and constructed the capital of Dako- ta Territory at Bismarck. By B. F. SPALDING There was no serious thought of the Bismarck bid being considered until we, in due course, visited that city. When we reached Bismarck we were surprised at the extent of the enter- tainment which awaited us. The Eleventh Infantry band had been brought from Ft. Keogh for music and @ great number of Indians from the Standing Rock reservation to provide @ spectacle. One, and I think two banquets were set up in which hun- dreds of people participated. On the lot where Webb's store now is, stood @ little wooden building used as a public library. The books were re- moved and it became the headquar- ters of the entertainment committee, where champagne was served freely. When the people of Fargo and other northern cities learned of the expen- sive fete put on by Bismarck they recognized that’ it could not have been done simply from a desire to be courteous to the commission, and they began to look around. I shortly re- ceived a document setting forth the facts regarding matters and protest- at Bismarck. It was signed by prac- tically every business and professional man of importance in Farge. I still have that document. We went from Bismarck to St. Paul by special train which stopped a short time in Fargo. While the train was waiting here, I was invited to step in- to the Headquarters hotel and inspect @ map. Mr. McKenzie happened to see this. That evening, after I had o4| retired in my berth, he came to me and with much fervor and less tact upbraided me for examining the map .| and apparently assumed that I had .| Promised to vote for some other lo- | cation than Bismarck. Naturally and foolishly I got mad and told Mr. Mc- Kenzie that I could cast my own vote. I believe he never forgot this inci- dent. Met in Keeney Block We returned to Fargo and met in the court on the second floor of what was known as the Keeney block at avenue north where the Central Bar- | lot Bismarck received the vote of five commissioners and thereupon the commission adopted the following res- olution: “Whereas: At a regular meeting of the commissioners ap- pointed by that certain act of legis- lature of the Territory of Dakota ap- proved March 8, A. D. 1883, entitled ‘An act to provide for the location of the seat of government of the Terri- tory of Dakota, for the erection of public buildings there at’ held at Far- go, in the county af Cass in the said territory, on June 2, A. D. 1883, it is hereby declared and determined by the commissioners aforesaid that, ‘Whereas, a suitable site for the capi- 00 | tal buildings of the said territory, sit- uated at the city of Bismarck, in the county of Burleigh, in the said terri- tory, the same being that parcel of land described as the northeast quar- ter (%) of section numbered thirty- three (33) town one hundred thirty- nine (139) north, of range numbered eighty( 80) west, together with that certain other parcel of ground situ- ated in the said county described as the north half (+4) of the north half (%4) of section numbered nine (9) in town numbered one hundred thirty- eight (138) north, of range numbered eighty (80) west. “and, in addition thereto the sum of one hundred thousand dollars in money having been duly guaranteed to the said territory in accordance with the provisions of the said act of legislature, to be used for the pur- poses in the said act specified: “Now, therefore, under and by au- thority of the said act of legislature, the said parcel of land first herein- before described as a suitable site for, and as the site of the seat of govern- ment of the said territory; and the same is hereby declared to be the site of the seat of government of the said territory. Arranged for Survey “Resolved: That the tract of ground this day selected as the site of the capitol buildings of this territory be surveyed and laid out, as prescribed by the act of legislature of this ter- ritory approved March 8, A. D. 1883, entitled ‘An act to provide for the lo- cation of the seat of government of the Territory of Dakota, and for the erection of the public buildings there- at,’ that, of the said tract, not to ex- ceed twenty acres shall be set apart as the capitol grounds, and the re- mainder shall be divided into lots and ing against the capital being located | the corner of Broadway and Second} ber shop now is, and on the 13th bal-| Selection of Bismarck For Capital Unexpected mittee on grounds be authorized and directed to engage the services of a competent surveyor and of such as- sistants as may be necessary, to do the work of laying out the said tract of ground; and the compensation of such surveyor and assistants shall be paid out of the funds under the con- trol of this commission. “Resolved, further, that the plat of such survey shall be prepared, and laid before this commission with all | convenient speed. “Resolved, further, that the chair- man of this commission be authorized ‘and directed to take such steps as ;may be required to complete the do- jnations guaranteed to the territory, on behalf of the place selected as the seat of government. “Resolved, further, that Geo. A. Mathews, H. H. DeLong, C. H. Myers, C. W. Scott, Alexander Hughes, be and they are hereby appointed a com- mittee to supervise the plat; and lay- ing out of the land above mentioned as provided by the act of the legisla- ture heretofore referred to. “Resolved, further, that A. Hughes, B. F. Spalding, Alexander McKenzie, J. P. Belding, M. D. Thompson be and they are hereby appointed a building committee and they are hereby authorized atid instructed to |cause to be issued a notice to archi- tects asking for plans and specifica- tions for a capitol building and in be- half of the commission to take such action as may be necessary to secure plans for said building as provided by the act heretofore referred to.” During the voting I entered in a memorandum book which I still have, the result of each ballot and how each member of the commission voted on the location. Elevator Claimants | Receive Full Payment Claimants in the insolvent Gran- ville Farmers’ Elevator company were \paid off in full Saturday by the state |railroad commission which acts as trustee for insolvent elevators. Ben C: Larkin, commissioner in \charge of elevators, is at Granville {where claims for $3,122.90 were paid. The claimants were paid their claims, plus some interest. The money was collected without litigation from the bonding company that executed the warehouseman’s bond for the company. State Grid Squads Prepare for Action} | MONDAY, SEPTEMBEK 19, 1932 , This sh of th ed by farmers’ holiday pickets to. win arguments with markel-bound truck drivers whee commands to halt were ignored. In this cate pickets near Omahe have hurled 2 large log across the highway fe make verbal commands to halt wer the blockade effective. (Associated Press Photo.) A BIT OF “LOG-ROLLING” IN FARM STRIKERS’ WAR ee aE outfits are conducting post-mortems Monday on their initial games. Games Friday and Saturday gave the grid enthusiasts something to talk about and one point was the fact that scores of most of the games showed shut-out counts. One of the exceptions was the Carrington-Val- pel tilt, lost by Valley City Among other games were: James- town 20, New Rockford 0; Devils Lake 26, Alumni 0; Grand Forks 46, Hatton 0; Wahpeton 13, Wahpeton Indians 0; Minot 41, Kenmare 0. Oregon County Will Give Away 20 Farms Eugene, Ore., Sept. 19—(?)—Twen- ty Lane county farms will be given away free to bona fide farmers who have the cash to operate them suc- cessfully, E, C. Harlan, secretary- manager of the Eugene Chamber of Commerce, announced Saturday. The farms were acquired by the county for delinquent taxes. The decision to give them away was made to induce farmers with funds to lo- cate here. Forks were introduced into Eng- land by Thomas Coryat in 1608. (By The Associated Press) | As state high school football teams | generally polish off practice sessions | with scrimmages and prepare for the big opening of the football season this week-end, approximately a dozen Catching Col CITIZENS OF BISMARCK | BECAUSE—The Leamington is one of America’s unusual hotels, located in the heart of everything in Minneapolis —Convenient to shops, theaters, and office buildinge— Famous for its hospitality, food, beautiful rooms end home-like atmosphere. RATES: Single $2.00 and up tis Double $3.00 and up Write or wire for reservations ‘WARD S. MORSE, Mgr. You Get What You Want Apartments . . . household help. . . used cars. . . radios trom The Bismarck Tribune Want-Ads and hundreds of other everyday requirements are listed every. day. A tremendous popular market for both buyer and seller. And both buyer and seller profit too, because the cost of in- serting a want-ad in the Bismarck Tribune is so small. Phone 32 and our ad-taker will help you. 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