The Bismarck Tribune Newspaper, December 7, 1932, Page 1

" + Ww PS we 5 ” wt “4 North Dakota’s Oldest Newspaper THE BISMARCK TRIBUNE Weather Report Generally fair it and Thursday; macieebat cotter tonight. : ESTABLISHED 1873 — BISMARCK, NORTH DAKOTA, WEDNESDAY, DECEMBER 7, 1932 PRICE FIVE CENTS | Challenge Burleigh Court Jury Mills Asks House to Reverse Sales Tax Vote?iminm ~ SHGRETARY POINTS OUT EXCISE TAXES ARE INSUFFICIENT Only Six Months Ago House of Representatives Defeated Same Issues FORECASTS LARGE DEFICIT Estimates 2/, Per Cent Sales Tax Would Yield About $355,000,000 Washington, Dec. 7.—(®)—The ture bulent sales ‘tax issue was tossed squarely back into the lap of congress Wednesday by Secretary Mills with a recommendation that a 2% per cent general manufacturers levy be adopted. In his annual report, the secretary ‘of the treasury said the present speci- fie excise taxes adopted at the last session of congress had failed to pro- duce the expected revenue and he Proposed their repeal. Mills directly asked the house to re- verse itself. Only six months ago, that body bolted its leadership to vote down a one and three-quarters per cent sales tax, and the issue was not even brought to a vote in the senate. Drastic reduction in governmental expenditures was insisted upon by the secretary who predicted the present fiscal year would end next June with 2 deficit of $1,146,000,000 and the fol- lowing year, at the present pace, with @ deficit of $307,000,000 exclusive of debt retirement. He said government spending could be reduced by $479, 000,000 in the 1934 fiscal year if rec ommendations made by the president in his budget message were followed. Mills asked congress to retain the one-cent-a-gallon tax on gasoline, ef- fective only until next June. His recommendation was: Would Abandon Same “That those excise taxes which ex- perience has demonstrated. are rela: tively unproductive and give rise to serious administraaive difficulties be repealed, and that there be imposed @ general manufacturers’ excise tax substantially in the form appearing in the bill originally reported by the ways and means committee of the house of representatives during the last session of congress. “It is estimated that such a meas- ure with the 2% per cent rate will yield about $355,000,000, a full year’s collections, thus making possible the elimination of s number of the unsatisfactory and relatively unproductive new excise taxes. “In view of the misunderstanding as evi- denced in the congressional debates of last winter, I must emphasize that I am not recommending a general sales or turnover tax with the inevit- able pyramiding of the tax but a manufacturers’ excise tax, imposed at one point only?’ The manufacturer's excise tax bill referred to by Mills levied a tax upon (Continued on Page Two) DENTIFY ACCUSED IN ROBBERY TRIAL i Newspaper Editor, Printer, Bar- ber and Cashier Point. to Ed Vandiver Hillsboro, N. D., .Dec. 1.—(P)— “That's the man,” said H. G. Wamb- heim, Hatton Free Press editor, point- ing to Ed (Hungry Slim) Vandiver in Traill county district court Tuesday as the man he saw driving the ban- dit car as it pulled away from the Merchants National bank, Sept. “14, with $2,138.53 loot, ‘Wambheim’s finger pointed to Van- diver, on trial here as one of the two men who staged the bank robbery de- spite the radio entertainer’s protesta- tions he was in South Dakota the day of the robbery. Further identification of Vandiver as one of the bandits was given by * Orion Cole, Hatton Free Press em- ployee, the basement, both of whom as- serted they saw Vandiver at the wheel of the fleeing car. Other ‘Tuesday as to Van- from H. M. a2 ednesday before resting eston, defense attorney, has cated he will call perhaps a dozen White House? | McHenry Howe (above) is consid- ered a definite possibility for one of the white house secretaryships. He was political secretary to Roosevelt during the campaign and has been a Roosevelt aide since the president- elect was assistant secretary of the navy. ACKER SEES DANGER IN FURTHER ISSUES OF BONDS IN STATE Points to Bank of North Dako- ta, State Elevator and Rural Credit Issues Issuance of more bonds for any purpose by the state of North Da- kota “is fraught with danger” in view of economic conditions in the Opinion of State Tax Commissioner Iver A. Acker, In his biennial report, the commis- sioner calls attention of the legisla- ture to the tax situation created by issuance of bonds to provide capital for the Bank of North Dakota, to provide funds for the construction and operation of the mill and eleva- tor and for capital for the rural credit business of the Bank of North Dakota. The state has outstanding approxi- mately $41,651,000 of bonds. Of this amount $36,650,000 represent bonds of North Dakota real estate series a to provide capital for farm loans. $1,607,861 for Interest ‘This year the state board of equal- ization was required to levy $3,880,- 456, of which $1,607,861 was for bond interest. In 1924, Acker said, the attorney general held that the four-mill limit- ation prescribed by Section 174 of the state constitution is applicable to levies for sinking funds, but not for interest. In view of provisions of Section 182 A close friend of President-Elect Franklin D, Roosevelt, Col. Louis adopted in 1918, the opinion of the attorney general given in 1924 may not be upheld by the court, Acker believes. He expressed the opinion that Sec- tion 182 of the constitution has superseded Section 174 insofar as the latter section was applicable to levies for state bonds. “If such is the case,” he said, “there is no limitation as to the amount that may be levied for state bonds issued since the adoption of Section 182 as amended by Article 31 of the constitution. “But if the supreme court should hold that levies for sinking funds must be within the four-mill limita- tion by Section 174 of the and Irvin Iverson, barber in| cerned, applies to ive i z & of Article 1 of the constitution, |* [HOOVER'S CLEAVER (Farm B PROPOSED BUDGET Big Taxation Program Recom- mended to Take Care of Mounting Deficit FAILS TO MENTION BEER Would Reduce Employes’ Salar- ies and Cut Into Payments to Veterans ‘Washington, Dec. 7.—()—President Hoover presented to congress Wednes- day a drastically reduced budget, rec- ommending a 2% per cent manufac- turers’ excise tax, retention of the Gasoline tax, rigid economies includ- ing an additional 11 per cent cut in government salaries, and a big slash in veterans’ benefits. He asked for total appropriations of $4,218,808,344, saying net expendi- tures would total $3,256,354,900 against receipts of $2,949,162,713—leaving a deficit of $307,192,187. It was to offset this that the new taxation was pro- No mention of war debts was made in the entire presidential message, but the report of the secretary of the treasury, sent to congress simultane- ously, disclosed that payments due from foreign nations had been in- cluded in striking the government's balance. Neither did Hoover make any men- tion of legalization of beer. Estimated internal revenue collec- tions included no figure from this source. The president estimated the pres- Hoover’s Proposals For Budget Listed Washington, Dec. 7.—(?)—Pres- ident Hoover's budget Wednesday ‘warned congress it must watch the nation’s purse strings, and rec- ommended that it: Enact a sales tax of 2% per cent, Retain for another year the 1 cent gasoline tax. Cut government salaries 11 per cent and in addition continue the present 8 1-3 per cent cut under the furlough plan, Restrict benefits to veterans by $127,000,000. Make appropriations of $4,218,- 808,344. Hoover also predicted a deficit of $1,146,478,307 for the present fiscal year, and estimated a defi- cit of $307,000,000 next year, unless the additional tax program and economy program are adopted. Did not mention war debts. ent fiscal year would end next June with a deficit of $1,146,478,307, expen- ditures being $3,770,735,000 and esti- mated receipts $2,624,256,693. Of this deficit he said: “Such a situation can not be con- tinued without disaster to the federal “I can not too strongly urge that every effort be made to limit expen- ditures and avoid additional obliga- tions not only in the interest of the already heavily burdened taxpayer but in the interest of the very integ- rity of the finances of the federal In his. veterans’ economy proposal the president defied those clamoring for bonus payment and maintenance of present benefits by recommending to congress legislation which would strip $127,000,000 worth of pensions, tion and allowances off the (Continued on Page Two) FEASIBLE CONTROL SYSTEM IS SOUGHT Farm Bureau Federation Digs Into Relief Proposals on Closing Day BREWER WITNESSES CLAIM BEER WOULD HELP GOVERNMENT Charge Legalization Would Minimize Bootleg, Jobless and Farm Problems ‘Washington, Dec. 7—()—Witnesses for brewers predicted beer as a bring- er of good tidings for business and the federal treasury in the opening testi- mony before the house ways and means committee Wednesday on the Collier bill. Advocating a brew of 4 per cent al- cohol by volume, Levi Cooke of Wash- ington and R. A. Huber of St. Louis— on behalf of the U. 8. Brewers associ- ation —estimated a $5 a barrel tax would enrich the treasury by $330.- 945,000 a year. Addressing the powerful committee but turning now and again to the jerowded audience, Huber said the beer he supported could be sold for nine cents a bottle, and that its legalization would. cause $360,000,000 to be spent to rehabilitate breweries ‘and 300,000 men would be given work. Sees Big Expansion ‘With the present brewing capacity in the country at 15,000,000 barrels annually, he said, a 400,000,000-barrel capacity would be needed before long. Following Cooke's testimony that the 2.75 per cent beer by weight pro- vided in the bill placed before the committee by Chairman Collier was insufficient in alcoholic content, Huber said a 3.2 per cent beer was a better product. The latter would be 4 per cent by volume. Huber said millions would have to be expended immediately for mater- ials such as barley, rice, sugar, syrup and other ingredients for production in the plants. In addition to the 300,- 000 men he estimated would be given employment in the wholesale and re+ tail distribution of the product, Hu- ber said many other workers, includ- ing coal miners, and railroad em- ployes, would be given increased em- ployment. Says $5 Reasonable The $5-a-barrel tax proposed in the Collier bill was “reasonable,” Huber said, if states and cities did not place an additional tax on it so that it would become so costly it could not be purchased by laborers. Asked by Representative Crowther (Rep. N. Y.), if by legalizing beer, bootlegging would be eliminated, Hu- ber said: “I believe it won't except to the de- gree of consumption other sorts of pavers are reduced by those drinking rn “I don’t think anything but a mir- acle would stop bootlegging, until all sorts of liquors are legalized. “We don’t claim beer is a panacea. It’s not going to solve the bootleg Problem, and it is not going to solve the unemployment problem, and it is not going to solve the farm relief Problem, but it will minimize them to some degree.” HENDRICKS CALLED TO CHICAGO HEARING Traffic Expert's Assistance Needed At I. C. C.’s Rate Investigation E. M. Hendricks, traffic expert for the North Dakota railroad commis- sion, will leave for Chicago Thursday to argue before the Interstate Com- merce Commission examiners in the re-opened class rate case in which the hearing and to put aside other duties for the time being. Karl Knox Gartner, Washington ! | EF EEE: ! H f ? #eFk i i | Es eRe E E F i E 4 : 5 Recommends Congressional Ac- tion to Attain Such End in Special Report NO DEFINITE PLAN GIVEN System Should Be Self-Sustain- ing and Regulate Acreage and Quantitie: ‘Washington, Dec. 7.—()—Congres- sional action to increase the income of the American farmer by elevating the general level of agricultural prices to a par with other commodities was advocated Wednesday by the farm board. This multi-pronged problem was as- signed to congress in a special report on legislative recommendations which said the board's stabilization opera- tions were powerless to achieve this end. No hint as to the board’s ideas on the form of such legislation was given except that the process should “pay the costs, if any, on a continuous and self-sustaining basis” and “provide an effective system for regulating acre- ‘age or quantities sold, or both.” The board also urged that it be au- thorized to compromise debts now ‘owned by farm cooperative associa- tions, and be provided either with ad- ditional money for the use of cooper- atives or empowered to borrow funds on its own bonds or debentures for that purpose. Assets Are $140,000,000 Net assets of the board's $500,000,000 revolving fund were placed at $140,- 000,000 “when all outstanding loans are appraised on a conservative basis.” “Except for the necessity of setting aside $43,000,000 to cover the board's equity in wheat and cotton turned over to the Red Cross,” the report said. “The present value of the re- volving fund would be $183,000,000. “These amounts are left after de- ducting all losses on account of sta bilization operations, and setting aside Iberal reserves against possible: losses on loans now outstanding to coopera- tive associations.” Along with the legislative recom- mendations, the board transmitted to co! its annual report which laid down a five-fold program for boosting the agricultural income. It advocated a general reduction in international trade barriers and readjustment of agricultural debts by agreement among debtors and creditors. Lists Recommendations Holding that the present low prices of farm products must in general be ascribed to other causes than heavy surpluses, the board said any remedial plan should include: “1, Hastening business recovery in the United States, thereby increasing returns from products sold in the do- mestic market. “2, Steps to initiate recovery in in- ternational trade, thereby strength- ening foreign demand for export lucts. a Readjustment of taxes, inter- est, and principal payments, freight rates and other fixed charges which enter into the farmer's expenses and now abnormally depress the share which he receives of the final retail air Further strengthening and ex- panding of cooperative organization to reduce the expenses of marketing and increase the producer's share of con- sumer’s dollar. “5, Efforts, through cooperative marketi associations or in other ways, oe secure a better adjustment between the quantities produced and the needs of the market.” Explaining that to “help raise the level of farm incomes, devices other than sabiintion § sre requires the sia Urges Two Principles “In the light of the experience with stabilization over the last three years, the board recommends that any new provided high- regulation of acreage or of quant tend to increase oard Would _ VETERANS OUTLINE |! j | GUTS DEEPLY INT0| Boost Farm Income; DETAILS OF DRIVE FOR HOLIDAY CHEER Actual Work to Get Under Way Thursday Noon; Telephone Number Is 1801 NO GIFT IS TOO SMALL Chairman Emphasizes That Ap- parently Worthless Mater- ial May Be Usable Further details of the American Legion “Open Your Heart” cam- paign, which begins Thursday, were announced Wednesday by L. V. Mil- ler, chairman of the veterans’ char- ity enterprise. t ‘The telephone number of the head- quarters in the Baker building is 1801 and someone will be on hand to an- swer it after Thursday noon when the headquarters will be officially opened. Persons having material to donate to the “Open Your Heart” effort are ‘Open Heart’ Fund Now Totals $63.50 Cash contributions to the Amer- ican Legion’s “Open Your Heart” campaign mounted to $63.50 Wed- nesday with $20 being added to the $43.50 previously reported. New contributions were: Peter Berry .. Womans Club Margaret Davidson Ernest Elness ... George D. Mann Previously reported Total ... asked to bring it to the headquar- ters or call that number and notify the American Legion of their willing- ness to give. The transportation committee will arrange to pick up the package. Several cash contributions were re- ceived in the mail Wednesday morn- ing as the result of the opening ap- peal published Tuesday, Miller said, and announcement of their names from day to day. Miller emphasized again that any- thing, regardless of its nature and whatever its condition, is acceptable. If it proves to be entirely unusable the “Open Your Heart” committee can throw it away just as easily as the contributor. “Past experience shows that the uses to which things can be put which the donors believed to be prac- tically worthless often are surpris- ing,” Miller said. “The answer to this unusual situation lies in dif- ferences between the standard of liv- ing of those who have as compared with those who have not. “Mothers of families frequently are glad to get things for which persons in better circumstances could con- ceive of no use whatever. “No gift of money, goods or service is too large, of course, but we wish to emphasize that none is too small. If everyone gives just a little the total will be large enough to bring mate- rial improvement in the condition of families which, often through no fault of their own, need help.” Gifts of money will be especially appreciated, Miller said, since the greatest need among the poor is for shoes, overshoes and underwear which frequently must be purchased in order to obtain a proper fit. These purchases, Miller said, will be made from local merchants who and amounts donated will be made} Death Note Left | The note above, held in piace by a pair of dice that showed seven, was found near the nude body of Mrs. Leonora Buchanan, below, in her Dallas, Tex., apartment. Police had! no other clews to the slayer of the woman, who had been strangled to death. TOKYO SAYS SOVIET WILL COOPERATE IN BORDER ACTIVITIES Declare, However, That Com-| missar Karakhan Has Been | Noncommital So Far | Tokyo, Dec. 7.—(P)—A Japanese; proposal that Russia, Japan and! Manchukuo act in “close coopera- tion—for peace along the Soviet- | Manchurian border” was disclosed by; the foreign office Wednesday to- gether with the assertion that the Moscow reaction was noncommittal. This information was made public a few hours after Rengo (Japanese) news agency dispatches reported Jap- anese troops had entered Manchuli, a far northwestern Manchurian city near the Soviet border. Manchuli has been the focal point} of military attention in Manchuria for several weeks. It was there the irregular Chinese general, Su Ping- ‘Wen, and his allies set up headquar- ters and defied the Japanese to “come and get them.” The Japanese responded with a military expedition from Tsitsihar that drove a wedge along the Chi- nese Eastern railway to Manchuli. Threatened by the Japanese -advance, General Su fled to Siberia. Latest reports said the Chinese chief had been interned and disarmed by the Soviet authorities. The foreign office said the Japa- nese. charge d'affaires at Moscow, Eiji Amoh, had proposed cooperation in the Manchuli frontier district. The Soviet foreign commissar, M. K. Karakhan, replied noncommit- tally, but the foreign office said Ja- pan was confident Moscow would in- struct Soviet frontier authorities to “act in consonance” with the pro- posal. always have been generous in co- operating with the “Open Your Heart” committee in giving discounts and frequently have supplied mate- rial at actual cost to them. CAPITAL MARCHERS HEADING FOR HOME Demonstrators For Unemploy- ment Relief Are Satisfied With Showing ‘Washington, Dec. 7.—(7)—Truck af- ter truck headed into the west and south Wednesday, taking the last of the shouting, singing demonstrators Page Youth’s Calf ° Wins Championship Fargo, N. D., Dec. 7—(*)}—Earl Davis of Page, N. D., showing an Angus calf, won the grand champion- ship in the fat steer class at the 4-H club achievement institute here after what experts at the college declare to be the closest contest ever staged in that show. Alvin Treiber, Hebron, N. D.,Mor- Floyd Allen of York, Benson coun- ty, won the championship in the swine class with a Duroc Jersey, and @ spotted Poland China, shown by Sterling Weiker, Cando, was reserve. Leroy Anderson, Wild Rice, Cass county, with a Southdown, won the championship in the sheep class, with Guy Brothers, Amenia, taking the reserve with a cross-bred Shropshire. Is in Session Here Canvassing af votes cast in the Nov. PRESENT TERM HAS NY 207 ES Attorneys Assert Bismarck Is Denied Its Fair Propor- tion of Talesmen CLERK TELLS OF DRAWING Asserts of 158 Names in Box 47 Were From Area Entitled to 60 Per Cent Validity of the entire jury panel drawn for the December term of the Burleigh county district court was challenged in a motion filed with Dis- trict Judge R. G. McFarland at the opening session of the court Tuesday. The matter was broached at the morning session by O'Hare, Cox and Cox, local attorneys, who were joined in the declaration by Sullivan, Hanley and Sullivan, Mandan; Scott Camer- op, Bismarck, and other local lawe yers. Upon direction of the court, how- ever, the matter was held up pending Presentation of a formal motion which was done at the afternoon ses- sion in connection with the case of the Electric Products Corporation of Montana vs. Ray Stair and the Stair Motor company at Bismarck. O'Hare, Cox and Cox, as attorneys for the defendant, asserted that the jury had been improperly drawn and filed in writing a challenge to that ef- fect, asking that a new jury panel be selected. Sullivan, Hanley and Sulli- van, representing the plaintiff, said they believed the motion to have been filed in the interests of fair and im- Partial justice and on behalf of the court as well as other lawyers, and that they not only failed to oppose the motion but joined in urging that it be approved. Judge McFarland, however, hela there was nothing he could do to “rectify the irregularity if any there be” and overruled the motion. decision, given from the bench, McFarland asserted it is a matter common knowledge that the law gov- erning the selection of juries is con: tinually violated almost everywhere, but that the remedy in the case at bar could not be reached through the mo- tion before him. City Representation Small By questioning of Charles Fisher, clerk of court, H. F. O'Hare developed: the fact that there were 158 names in the jury box when the present panel was drawn and that of this number only 47 names were those of Bismarck citizens, although the law requires that jury service shall be on a basis proportionate to the population. An- other charge was that the jury box did not contain 200 names, as required by law, when the panel was drawn. Fisher said he sent to the county auditor's office a call for more names of persons eligible for jury service but that none were received and the names in the jury box were the same as those which it contained at the end of the June term of district court. What operated to prevent the ad- dition of names to the jury box was not disclosed, the court suggesting that O'Hare confine his questioning of the clerk to matters within Fisher’s own knowledge. Of the 35 jurors drawn, it was dis- closed, 33 reported for duty. One had removed from the county and no serv- ice was had upon him while the other also had removed from the county and was excused by the judge for this rea son. Of the 35 drawn and the 33 remain- (Continued on page two) EXPLOSION KILLS 10 Rathenow, Germany, Dec. 7.—(7)— Ten workers were known to be dead and a number of others were buried under debris in an explosion at the I. G. Farbin artificial silk works at Premnitz Wednesday. A 400-pound hgdrogen container blew up while workmen were putting finishing touches on an addition to the plant. Paiciealec at ai a Ghristmas Customs vfon FOREIGN LANDS abe guishes the Christmas Eve din- ner. Selected as carefully as the American housewife chooses her turkey, the fish is taken home alive and placed in a tub: until the moment when it fs to be , cooked and eaten. « crowd -