The Bismarck Tribune Newspaper, October 4, 1932, Page 1

‘. 2 i i North Dakota’s Oldest Newspaper ESTABLISHED 1873 THE BISMARCK TRIBUNE ‘x. AMARCK, NORTH DAKOTA, TUESDAY, OCTOBER 4, 1932 The Weather Fair, probably frost ‘warmer, PRICE FIVE CENTS Hoover S THREE TRUE BILLS AGAINST PAIR ARE RETURNED BY JURY Former Utilities Chiefs Are Fac- ing Embezzlement and Larceny Counts EXPECT EXTRADITION FIGHT State’s Attorney Says He Will Use Every Means to Ef- fect Return Chicago, Oct. 4—(P)—Three true bills charging Samuel and Martin In- sull with embezzlement, larceny, and larceny by bailee were returned ‘Tuesday by the Cook county grand Jury. The indictments were returned aft- er less than an hour's deliberation by the grand jury on evidence given dur- ing the morning by half a dozen wit- nesses, The grand jurors immediately aft- er finishing their deliberations marched into @ criminal court room niseeba the true bills were made pub- ic. Capiases were issued immediately for the arrest of the two Insulls. Swanson said the action was started ‘because the two men paid no heed to hhis request that they return to the United States voluntarily for ques- tioning. State’s Attorney John A. Swanson said the action was started because the two men paid no heed to his re- quest that they return to the United States voluntarily for questioning. Samuel Insull has been in Paris since shortly after the financing com- panies for his vast utility system crashed several months ago. Martin Insull is in Orillia, Ont., Canada. “The Insulls have not replied to my request that they return voluntarily,” Swanson said. “If these people who have caused losses of more than $2,- 000,000,000 to investors will not re~ turn, then I shall use every means Lee me by the law to bring them ck.” Acquaintances of the Insulls, how- ever, said they were certain the brothers would fight extradition and they expressed the opinion they might be successful. Some lawyers said embezzlement was not covered in present extradition treaties with Great Britain. The brothers are British subjects. The La Salle Street reports said Martin was counting on his citizenship to prevent his return from Canada and that Samuel, by presentation of a certificate indicat- ing his health would not permit an ocean voyage, could forestall extradi- tion. Chicago lawyers for the Insulls re- fused to discuss the attitude of their clients toward extradition. A Chicago newspaper, however, reached Martin Insull by long distance telephone. Questions, the paper said, elicited a single reply: “I have nothing to say.’ Swanson made public his accusa- tions of a reputed bolstered broker- ‘ge account Monday. Previously he stated he possessed evidence indicat- ing payment of marginal accounts of Martin Insull from corporate funds at Samuel's authorization. The reputed “deal” occurred in 1929, Swanson said, when the elder Insull gave a group of the several In- sull securities in exchange for stocks of Insull Utility Investments, Inc., ap- . praised on the books at $9,765,908. ‘Through “improper appraisal,” Swan- son charged, the Insulls nette* °°..- 400. A bankruptcy petition was filed in federal court Monday against the Con- solidated Property Trust, Inc., Hold- ing company for the real estate prop- erties-of Samuel Insull and some of his associates. The petition said the properties involved formerly had an appraised value of $14,000,000, but are worth no more than $3,500,000 in the present market. Liabilities of ap- proximately $11,000,000, were listed. Says Loans on Stored Grain to Be Available Assurance was given Governor George F. Shafer by John W. Barton, manager of the regional offices of the Agricultural Credit Corporation at Minneapolis, that a plan will be worked out to make loans on grain stored on farms, the governor said Tues ‘The returned Monday night from the Twin Cities, where he conferred with Barton. The plan contemplates loans on storage certifi- cates issued on farm-stored grain by the state grain storage commission. While in the Twin Cities, Governor | jy Shafer met with railroad officials who plan to come to Bismarck by special train Saturday to attend the ceremonies for laying of the corner- stone of the new state capitol bulld- me eviouly the governor was in Jowa, where he campaigned in behalf of President Hoover's candidacy for reelection, making speeches at Dav- enport. Shenandoah and Clarinda. From Iowa he went to Chicago, where he conferred with Governors Green of South Dakota and Emmerson of ‘ Iinois, EMBEZZLER SENTENCED Winner, 8. D., Oct. 4—(?)—Albert Scheinost, city treasurer, was sen- tenced to five years in the state peni- tentiary after confessing embezzle- ment of $10,844 in city funds. | Ps id three other prominent if the opposition to Presi. dent Machado, (Associated Pres: Photo) 4 WITNESSES FOR MURDER TRIAL ARE UNDER SUBPOENAS Defendant Seen in Building Where Victim Had Office, Testimony Shows Bowbells, N. D., Oct. 4.—(#)—Call- ing nearly half of the witnesses un- der subpoena during the forenoon session of the district court Tuesday, the prosecution moved ahead in its endeavor to prove Henry Frazon, 47- year-old farmer, guilty of the first- degree murder of George Keup, ma- yor of Columbus and former banker there. Keup was shot in his office in Co- lumbus Sept. 16. Thirty-four witnesses are under subpoenas issued at the request of State’s Attorney B. L. Wilson. Judge John C. Lowe, Minot, is pre- siding. Two witnesses for the state testi- fied Monday after the jury had been selected, these being R. A. Kindler, business partner of Keup, and Chris Wick, young farmer who brought Frazon to Columbus on the day of the shooting. H. J. Patterson, field agent for the department of agriculture, the first witness summoned Tuesday forenoon, testified he was in the building where Keup had his office and heard two shots fired. He said that subsequent to the shots he saw a man whom he now recognizes as Frazon step out of the door of the building. Boy Heard Two Shots Willis Dollare, 15-year-old Colum- bus boy, also testified he heard two shots fired in the building and that he saw Frazon come out of the struc- ure, (Continued on Page Seven) NIPPON WILL NOT ALTER ITS POLICY vapinet Makes Its Decision Af- ter Studying League of Nations Report Tokyo, Oct. 4.—(?)—The cabinet de- cided Tuesday, after a session called to consider the League of Nations commission’s report on Manchuria, that there was no reason to alter its Manchurian policy, the keystone of which is the separation of Manchukuo from China and the maintenance of its independence. Japanese newspapers quoted a spokesman for the foreign office as saying Secretary of State Henry L. Stimson’s speech at Philadelphia last Saturday, in which he recounted the high spots of the foreign’ relations re- cord of President Hoover's adminis- tration, was amenace to the good rela- tions between Japan and the U. 8, By again “speaking against Japan,” the spokesman was quoted as saying, Stimson offered further provocation, which was described as “a serious matter.” The Japanese saw & close connec- tion, he said, between Stimson’s speech, the publication of the Lytton report at Geneva Sunday, inferential- condemning Japan's military ac- tivities in Manchuria, and continued concentration of the U. 8. Navy in the Pacific. Nanking, Oct. 4.—(}—The national government executive Yuan met in special session Tuesday to consider the report of the League of Nations investigating commission on the Man- churian situation and decided to place its recommendations before the cen- tral political council Wednesday. troops followers of General Li Hat-Tsing in ® battle Sunday and Monday near LOANS EXCEEDING BILLION DOLLARS Used $1,182,734,958 in ‘Cash to Aid Agriculture, Com- merce, Industry’ FARMERS GOT 64 MILLION Report Says 507,632 Farmers Helped Financially For Crop Production Washington, Oct. 4.—()}—Advances Of $1,182,734,958 “in actual cash to aid agriculture, commerce and indus- try to recover from the depression” were announced Tuesday by the re- construction corporation in a sum- mary of loans made during its first seven months of operation. From Feb, 2 through Aug. 31, the corporation said, $1,118,532,968 was loaned to 5,599 borrowers and $64,- 201,989 through the secretary of ag- riculture to 507,632 farmers for crop Praduction purposes. In addition, advances to states and political subdivisions for relieving distress were totaled by the corpora- tion at $35,455,171 from the enact- ment of the relief law in July to the close of business Sept. 30. The corporation's statement, show- ing its financial operations have in- volved approximately one-third of the $3,800,000,000 fund placed at its disposal by congress, dealt only with general statistics and did not men- tion individual borrowers. Its chair- man, Atlee Pomerene. has protested the ruling of South Trimble, clerk of the house, making public the July re- port to congress on individual loans, and Trimble is expected to decide Thursday whether the August loan report will be made public. Many Loans Repaid The corporation said that of its $1,- 118,532,968 direct loans, borrowers on Aug. 31 had repaid $150,890,897, leav- ing $967,642,071 outstanding. Loans of $226,101,268 had been authorized in addition to cash actually paid out, but $35,564,412 of this amount was cancelled by the borrowers and $190,- 536,855 had not been called for. “The statistics further show,” the corporation said, “that there has been a steady decline in applications for loans from banks since April. In that month 1,269 applications were re- ceived, and in August only 899.” Farm loans made by the secretary of agriculture averaged $126.47 each and were made in every state except Rhode Island. Arkansas led in the number of individual loans with 46,- 835. Georgia was next with 44,153 and Mississippi third with 40,066. The corporations’ direct cash loans to 5,599 borrowers included: 4,324 banks and trust companies open when the loans were made: 391 receivers of banks closed when the loans were made; 643 building and loan associ- ations; 79 insurance companies; 68 mortgage loan companies; 49 rail- roads; 17 livestock credit corpora- tions; 10 agricultural credit corpora- tions; 9 federal land banks; 6 joint stock land banks and 3 credit unions. Secretary Is Paid The corporation said $75,000,000 of the $200,000,000 placed at the disposal of the secretary of agriculture has been paid that official and that the balance not used by him is available for purchasing stock of the regional agricultural credit corporations be- ing created. ‘The $64,201,989 loaned to farmers by the secretary of agriculture for crop production purposes included: State Loan Total Am't. Minnesota ....... 9,540 $1,138,897 North Dakota ... 39,047 8,424,943 South Dakota ... 30,313 7,101,062 Up to Sept. 30, the corporation Joe E. Brown (left! Warneke, Chicago Caty! Chicago. JOE BROWN KIDS WITH WARNEKE movie comedian, swapped gags with Lon pitcher, at the fourth world series game in The usually serious Warneke is proving that he can make a face, too, (Associated Press Photo.) Praises U. S. For Their JUROR WHC CAUSED MISTRIAL IN DAVIS CASE TS FINED $100 Henry F. Moore Throws Himself Upon Mercy of Federal Judge Coleman New York, Oct. 4—(?)—Henry F. Moore, the juror who caused a mis- trial in the case of U. 8, Senator James J, Davis, who was charged with violation of federal lottery laws, Tues- day was sentenced to pay a fine of $100 within 24 hours or go to jail for five days. His name was stricken from the jury list. Moore, who caused the mistrial by approaching defense counsel after the trial had run two weeks and was nearing conclusion, threw himself on the mercy of the court Tuesday, com- ing to the hearing into his case with- out counsel although he had been in- formed he was entitled to such rep- resentation. The trial of Senator Davis, indicted in connection with alleged lotteries conducted by the Loyal Order of Moose in the guise of charity balls, was declared miscarried by Judge Coleman at the opening of court Monday as the third week of testi- mony was started. The action of the court was taken after Defense Attorney Charles J. Margiotti reported that -Juror Moore had called upon him at the Pennsyl- vania hotel last Friday after adjourn- ment for the week. The juror wanted to tell Margiotti that another alternate juror was “putting in poison against your side.” After an investigation, the court absolved the other juror. “All I want to say, your honor,” said Moore Monday in a strained voice, “is that I am sorry—I never meant to harm anyone.” “I am convinced,” said Judge Cole- man, “that there was no corrupt mo- tive and for that reason I am not go- ing to send you to jail.” Moore said he was married, had no children and at the present time is unemployed. His occupation, he said, is photo engraving. No formal charge of contempt was sald, $35,455,171 had been advanced in relief loans to 25 states and one territory. Of this amount, $30,533,586 is subject to repayment through de- ductions from future federal-aid road funds, while $4,921,585 was loaned through governors to political sub- divisions. Amounts made available to states included: South Dakota, $150,000. Advances to state subdivisions in- cluded: Michigan, $2,116, Detroit, $1,800,000; Flint, $296, an Muskegon Heights, $20, North Dakota, $50,000, Minot and Ward county. Would Study German Armament Problem Paris, Oct. 4.—(#)—Sir John Simon conferred Tuesday with Premier Her- lot, and it was understood that he had proposed a four-power confer- ence at London to study Germany’s demand for equality of armaments. It was said that the proposal included Provision for attendance by an Amer- ican observer, Berlin, Oct. 4—()—Reports from Geneva that Great Britain has sug- gested international consultation in London to pave the way for Ger- many’s return to the disarmament conference has caused great interest here among those who regard the Proposal as a way out of the present Geadiock over the German demand for armament equality. COMPLETES FUSION CABINET * Santiago, Chile, Oct. 4—(7)—A na- tional fusion cabinet was completed Tuesday by Premier Javier Angel Figueroa to hold office until a new pease and congress are elected brought against him, though the court asked if he desired it. “I don’t understand,” he said. Assistant U. 8. Attorney Dewey, who happened to be in the judge’s chambers, explained it to him. Moore then indicated that he would rather rely upon the mercy of the court and have the matter disposed of informally. Bankers Uphill Battle Says America Matched Her Strength Against Doubting World and Won Los Angeles, Oct. 4—(?)—America matched her strength against a world that thought financial ruin was in store for the United States, and won, Harry J. Haas of Philadelphia told the American Bankers association in his presidential address at the annual convention here Tuesday. “Happier conditions today,” he said, “represent a real reestablishment of fundamentally-sound banking, busi- ness and general economic conditions” as compared to the “banking panic” that surrounded the convention a year ago. In the very trough of the depres- sion, he said, foreign interests, believ- ing financial ruin was ahead for the United States, continued to dump se- curities in American markets and withdraw the proceeds in gold. “Then suddenly in June came the end of Europe's ability to take furth- er gold from this country,” Haas said. “America had matched her strength against the world and had won, but other countries seemed to appreciate it before we, ourselves, realized it.” He said the improvement noted to- day “constitutes one of the greatest tributes to the traditions and institu- tions of this nation and to the cour- age and resourcefulness of our people that has ever been written in the an- nals of the country in times either of Peace or war.” He said the people had taken the change from “new era” Prosperity to adversity “like true Americans and good soldiers who have never lost a war.” As compared with other lines of business he said “banking need not apologize to anyone.” He added banking proved itself during the de- pression to be one of the strongest elements in the economic structure. Haas said that in 1931, 2,300 banks closed with liabilities of $1,690,000,000, but this did not mean a loss of that much money. He estimated the ac- tual loss to depositors will be less than $500,000,000, a general average per capita loss among depositors of less than $125. He pointed out that nine out of 10 banks were not involved. “We are justified in feeling confi- dent that we now stand on the threshold of a return to better bank- ing conditions,” he said. “Legislative measures are not the only means for promoting . improve- ment in banking. The more funda- mental actions must come within the spirit and practice of banking itself. “Our banking methods at heart are sound, our established traditions are fundamentally true. If there have been any deviations from them the remedy is in a return to standard principles, not in a rigid formulation by law of those things that must be left to the dictates of and free discretion.” ‘|Another Open Quarrel Between Rumanian Royal Couple Is Bared London, Oct. 4—(%)—King Carol of Rumania has cut short the visit of Crown Prince Michael in London with his mother, Princess Helen, the princess was quoted by the Daily Mail as say- ing Tuesday, and has threatened her with never seeing her son band faith” for the action which, she said, was taken because the king was resentful of the sympathy “The accused me oe en- couraging publicity by wing Michael to be photographed with me on the streets. I that I cannot prevent press Peatorrenhers. from taking = tures in public places, but he was so bitterly prejudiced against me that he would listen to no ex- @ temperature of 103, I was allowed to see him, penalty for attempting to Treceived acurt message through an aide that every time I dis- obeyed the 's orders punish- ment would follow.” MEXICAN ISSUES ORDER EXPELLING PAPAL DELEGATE President Acts on Behest of Chamber of Deputies to Rebuke Pope SPEAKERS ATTACK CLERGY Revolutionary Party Leader Re- fers to Pope's Message as ‘Imbecile’ Mexico City, Oct. 4—(P)—At the request of the chamber of deputies, President Rodriguez Tuesday dictated an order expelling Monsignor Leo- poldo Ruiz y Flores, the papal dele- gate, from Mexico. ‘The chamber of deputies decided to make the request because of the re- cent encyclical of Pope Pius XI on Mexican church affairs. The expulsion of the papal emis- sary is on the grounds that he is a “pernicious foreigner” who has lost his rights of citizenship through the constitutional provision which stipu- lates that any person serving a for- eign power loses his citizenship in Mexico. Monsignor Ruiz Y Flores was awak- ened at 5 a.m. Tuesday and taken to the office of the secretary of the in- terior, where he was asked to wait in an ante-room off the secretary's office until the order of expulsion should be served. It was understood that he was treated with every court- esy. It was believed likely that he would be transported to the United States border by airplane although there was no announcement of when and how he would leave. The decision followed an animated session in the chamber Monday night. It was proposed by Luis Leon, editor of El Nacional, organ of the revolutionary party, who ‘bitterly de- nounced the Catholic clergy. Previ- ously the deputies had voted to send a commission to call upon the presi- dent, but on Leon's suggestion they decided to go in a body. “I propose that we go in a body,” he said, “and inform the executive that, in obedience to our revolution- ary convictions, we are ready to com- bat in any way our eternal foe.” The resolution was approved by ac- clamation. Senor Leon referred to the church's viewpoint as “imbecile” and “trea- son.” He said the Mexican clergy always had been the ally of the Con- servatives, the land-owners and the wealthy, but never of the humble classes. ‘They opposed the constitu- tion of 1857, he said, and sought an emperor prior to Emperor Maximi-| lian’s “invasion” of Mexico. Deputy Maria Davila, of the fed- eral district, which includes Mexico City, advocated the abolition of bap- tism and all other religious prac- tices. He called upon heads of fam- ilies to remove all religious objects from their homes and not to permit their wives, children or servants to give alms. Fathers, he said, should not permit their families to go to church at all. The discussion was suddenly in- terrupted by a cry of “Long Live the Pope!” from the galleries. Cries of “Throw him out!” immediately arose from the legislative floor and police escorted Culberto Ortego Morrison, a peon, from the hall. Democrats Swarm to New York Convention Albany, N. Y., Oct. 4—(#)—The prospect that they might see Alfred E. Smith and Franklin D. Roosevelt striving shoulder to shoulder in a common cause drew thousands to the closing session of the Democratic state convention Tuesday. Both men seek the nomination of Lieut. Governor Herbert H. Lehman for governor. The leading threat to his nomination is the candidacy of Mayor John Boyd Thacher of Al- bany. While Gov. Roosevelt was con- sidering whether he would accept the convention’s invitation to speak Tuesday, Smith put the finishing touches on his speech nomina’ Lehman. The convention Monday adopted a resolution proposed by John F. Cur- ry, Tammany chief, promising that the state would work un- Deaaney for the Roosevelt-Garner As the leaders began assembling in the Tammany conference room Tues- was proposed. Under t! advanced by John H. “covey, Brooklyn leader, the torial gubernat nomination would go to U. S. Senator Robert F, Wagner, Alfred E. Smith ‘would be nominated for Wagner's sen- atorial post, and Mayor John Boyd ‘Thacher of Albany would be given a place on the ticket, either for lieu- tenant governor or rges Bandits’ Hostage Doris Stock (above) was one of two women forced to accompany bandits who robbed a bank in Wahpeton, N. D., of $6,700. Both were es were Re Ey ane ired by pursui cers. (Asso- ciated Press Photo.) REPORT DE VALERA WOULD MAKE IRISH ISLE INDEPENDENT Dispatches Say He Does Not Intend to Nominate M’Neill Successor London, Oct. 4.—(?)—Dispatches from Dublin to London newspapers Tuesday reported rumors — which, however, could not be confirmed— that President De Valera does not in- tend to nominate a successor to for- mer Lieut. Gov. McNeill, who resigned Monday, and that the Free State Planned to cut away entirely from {the British commonwealth. A dispatch to the Daily Mail said the question of continued membership of the Free State in the common- wealth probably would be raised Wed- nesday if negotiations were resumed by De Valera and J. H. Thomas, Brit- ish secretary for the dominions. Referring to the report no successor to McNeill would be nominated, the Mail's political commentator said if it were true it would produce “a con- stitutional issue of the first magni- tude, in which King George would be directly involved.” The Times, commenting on the King’s acceptance of the Free State government's advice that McNeill’s resignation be announced, said the monarch acted not merely with pro- priety, but with common sense. If he had exercised his power to reject the advice, it said, De Valera probably would have resigned and brought about a general election in the Free State in which the chief is- sue would have been the action of the crown thwarting the wishes of the People’s elected representatives. Some papers here said De Valera also would again raise the question of the abolition of the oath of allegiance and the Irish annuity payments at his conference with Thomas Wednesday. At Dublin a government spokesman intimated the resignation of McNeill had removed one obstacle to a settle- ment of the annuities dispute. McNeill resigned Monday as gov- ernor-general of the Irish Free state. ‘The Irish government has the sole right to nominate his successor. ‘The resignation announcement by J. W. Dulant, Free State high com- missioner to London, said the king had approved MeNeill’s action “in accordance with advice tendered his majesty by the president of the exe- cutive council of the Irish Free State.” Special Guard Denied ize! 'To Murder Defendants Jacksonville, Fla., Oct. 4.—(P)—A comptroller. ‘The plan called for the complete | ‘tial. sidetracking of Lehman. Little World Series ' Game Is Postponed Minneapolis, Oct. 4—(?)—The fifth game of the junior world’s series be- tween Minnespolis and Newark was postponed Tuesday because of cold weather. The series will be resumed Wednesday. peeds Toward lowa /|.Indict Insull Brothers on Criminal Cha R. F.C. ADVANCES TO OPEN SPEAKING CAMPAIGN AT DES MOINES TONIGHT Presidential Special Train Stops At Many Points in Farm Belt MRS. HOOVER ACCOMPANIES Full Program Arranged For Exs ecutive By Midwest G, O. P. Leaders On Board the Presidential Special, En Route to Des Moines, Oct. 4—(#) —President Hoover was speeding through the farm belt Tuesday to Des Moines, Iowa, where tonight he will discuss agriculture and other prob- Jems in what Republican leaders hail as his “opening campaign speech.” In customary campaign style, the president had his special train stop at towns along the route so he might Lew the crowds gathered to welcome Swinging into campaign routine, the president made two rear platform appearances on his way through Pennsylvania Monday night, and at Altoona spoke briefly to a cheering crowd in which children were numer- ous. Most of his words were drowned in, the roar of handclapping and shout- ing but those close to his platform heard him say, his smile for the moe ment gone, “we are doing what a gov- ernment can and should do to help its people.” He also expressed pleasure at being Protest Parade Is Staged by Farmers Des Moines, Iowa, Oct. 4—(P)— Several thousand men, women, and children sympathizers of the farmers’ Holiday movement, marched through Des Moines Tuesday in a parade protesting against agricultural and economic conditions. Many of them carried signs cri- ticizing current conditions and af- fixing the blame on _ President Hoover, who will speak here Tues- day night. They were dressed in overalls and working clothes. Some said they started from their homes, several at great distances, before dawn to participate in the demon- stration. Milo Reno, president of the Na- tional Farmers’ Holiday associa- tion, which two months ago spon- sored a farmers’ non-selling movement for higher farm prices, declared that many more were on their way. The column was headed by two men seated on donkeys. They wore signs which proclaimed that “Here’s where Hoover put us.” Some of the other slogans read: “In Hoover we trusted; now we are busted.” “Mr. Curtis: We are not s0 damned dumb in 1932—signed, Mr. and Mrs. Iowa Farmer.” in Altoona and thanked the crowd for the welcome given him, presidential car, and taking a mega- Phone, pleaded with those in the rear not to crush the children crowded up near to the train. Most of the time, while the milled about the platform the dent merely stood and smiled, sionally waving his hat in re: to cheers. A little boy, Marion D. Patterson Jr., son of a county judge, was pushed up onto the platform with the presi« dent. Mrs. Hoover placed her arm around him as she talked through the megaphone. Present Problem °~Gantsh, N. D, Oct 4—— Sanish residents Tuesday were