The Bismarck Tribune Newspaper, January 23, 1933, Page 2

| ‘ forgotten amendment. i 2 GHD LABOR BILLS < OPPERED IN SENATE “McLean-County Solon Proposes | : to Revive ‘Forgotten’ Con- i i stitutional Change ‘taurants. Public Health. Desgined to renew national inter-| Dakota real estate bonds, est in the proposed amendment to the federal constitution to prohibit child labor, a concurrent resolution ‘was introduced in the North Dakota senate Saturday to ratify the almost Sen. E. C. Stucke of McLean coun- ty, author of the ratification resolu-! tion, sald while states generally have * shown a lack of interest in the pro-| Posed amendment since it was; launched in 1924, the proposal should | be given renewed consideration in the} light of present economic conditions. The amendment, to empower con-| Gress to limit labor of persons under) 18 years of age, was rejected by the, -North Dakota legislature in 1925. A] ‘number of states have rejected or| failed to act on it, while it has been ratified by only a few. Recently congressional clerks in! Washington were quoted as saying the amendment is “floating around @omewhere, but we can't tell where.” “More than ever before is there a Teal need for the approval of the child-labor amendment,” Stucke said. “Because of economic conditions there are now being proposed meas- tres preventing employment of mar- tied women and bills on nepotism. It would appear the measure pro- hibiting child labor would be even More necessary. { “The Bourbon southern states and Yeactionary states are no doubt against such a proposition. Human rights have too long been submerged, and it is high time the human ele- ment should be considered.” Ratification must be given the! amendment by three-fourths of the | states before it becomes a part of; the constitution. There is no require- ment that it be ratified within a Specified time. Sele | Kidnapers Finding *| Collection Difficult | e———_ _—_—_____,4' Chicago, Jan. 23.—()}—The Chi- ago Tribune said Monday a kid- naping isn’t worth as much to the kidnapers as it used to be in Chi- ago and cites the case of William Grossman, reported held by ab- ductors. Grossman, the newspaper says it learned. was kidnaped last Tuesday and the price for his re- lease was fixed at $50,000, which in the meanwhile has tumbled to | @ mere $5,000. “I'd say the kidnapers will be lucky if they collect Bill's board money since last Tuesday and if they don’t let him go pretty soon he'll eat them out of house and home,” one of the missing man's friends was quoted as saying. The latest reports are that $5.000 fs still the figure. La Moure Weekly Is_ | Given Prize Awards| Fargo, N. D., Jan. 23—(\—The La- | Moure Chronicle, a weekly news- Paper, Saturday was named first | Frize winner in two of the three pub- heation contests sponsored annually | through the North Dakota Press as- | sociation which is winding up its an- nual winter meeting here. i To Miriam Taylor as editor of the Bublication will go the William H. Francis trophy for “best all around newspaper in North Dakota based on pportunity” and the Sigma Delta Chi cup for the best front page. The latter trophy is given ‘jointly by the University of North Dakota journal- igm department and the university chapter of Sigma Delta Chi, journal- 4sm_ fraternity. The Wells County Farmer of Fes- senden, published by T. L. Beiseker, and managed by F. R. Ekstrom, is first prize winner in the “greatest improvement during 1932” competi- tion. To it will go the Norman B. Black award, a check for $50. The Lidgerwood Monitor, Dan Car- ver, Editor, won second prize of $30 jture is Minnie D. Craig, speaker of; {tle on pop and malt may be proposed | Legislative Calendar || By The SENATE Bills Introduced S. B. 111—Matthaei of Wells: Re-; feals law prohibiting smoking in res- | 8. B. 112—Fowler of Cass: Pro- hibits issuance of additional North State Af- fairs. Concurrent Resolution “H"—Stucke | of McLean and Marshall Of Dickey: j Ratifies Child Labor amendment to; U. 8. Constitution. Bills Passed | S. B. 38—Appropriates $2,000 for, premiums on bonds for state officials. | S. B. 48—Appropriates $100 for ex- Ppense in connection with release of | insane patients. } S. B. 41—Appropriates $1,500 for; care of feeble minded whose resi- cence not determined. 8. B. 32—Repeals “bad check” law. | HOUSE Bills Introduced H, B. 57—Sundby of Mclean (by | request): Provides for recall of county commissioners. State Affairs. H. B. 58—Place of Bowman: Ab- olishes state securities commission | and transfers duties to banking board. State Affairs. ee Here and Therein | ' Legislative Halls | cetera Mrs. Mary A. Rathbun of Crystal represents Pembina county in the house. A widow, nearly 60 years old, Mrs. Rathbun actively directs opera- tion of her 480-acre farm that was the homestead of her parents. Her two sons, around 20 years old, tend the farm while their mother is away. She is a native of the state, inter- ested in farming, farm problems, and problems of North Dakota. The only other woman member of the legisla- the house. | It was a happy group of legislators who left the session Saturday. They had received their first pay check. Gossip about the legislative halls is that a sales tax of one cent a bot- soon in the house. When members of the house ap- propriations committee were invited to take their wives to Jamestown, Harvey R. Solberg. youngest member | of the house and single, said, “I wish T had a wife to take.” Ga ee Husband Deceived i In Marital Muddle 4 Detroit. Jan. 23—i)—Little Charles David Knapp seems al- most as popular with his foster parents as if he really were their child—as his foster mother de- ceived her husband into believ- ing for almost a year. i Patrolman Charles K. Knapp | of the Detroit police has filed suit for divorce, charging among other things that his wife, Har- riet Edna Knapp, presented him the adopted child as his own son, Mrs. Knapp admitted it was true. Husband and wife have prom- ised a fight to the finish for the custody of little Charles David. { Patrolman Knapp said he loved the child and wanted to keep him at any cost. Mrs. Knapp said she did too. “I wouldn't have done this if 1 hadn't loved children and want- ed some for my own,” Mrs. Knapp said. “It was when I tried to go through with the plan again | about three weeks ago that | Charles became suspicious.” Mrs. Knapp explained that she took the child, with its mother's consent, two days after his birth. “I remained in bed for more than a week after the baby was brought to our house,” she said. Four months later, Mrs. Knapp Secretly secured adoption papers. Heep found those papers last week, Burnstad Girl, 16, Succumbs in City and the Cavalier County Republican, Langdon, M. I. Forkner, editor and Publisher, won third prize of $20. *Terhorst Pinch Hits” | For Executive Aide | ee Steve Terhorst of Minot, for- merly of the federal revenue de- partment, is taking care of the correspondence and office duties of Governor William Langer un- til the governor has recovered sufficiently from his illness to re- turn to work, it was reported from the executive's office Monday. It was said that Terhorst is acting as office manager only in @ temporary capacity since the governor expects to discontinue the office of “governor's secre- tary.” Say Arsonists Fired Big Macaroni Factory New York, Jan. 23.—()—An arson, gang that fired a $500,000 macaroni factory in Brooklyn was hunted by police Monday, but the clues were Pasquale Fariello. night watchman. | told detectives four men burst into " i 3 2 i z : ‘want to live be quiet.” wrapped an overcoat around SEE. ht Fed BRE “i E28 ii SEE z § No motive for the was apparent. and Girls: See Buck “One Man Law” Free ly LaVerne Margaret Gau, 16-year-old high school senior from Burnstad, died in a local hospital at 4 o'clock Sunday afternoon. Her death was caused by meningi- tis. She had been ill a week but was not brought here for ireatment until three days before her death. Miss Gau was born in Bismarck Dec. 22, 1916, the daughter of Mr. and Mrs. Michael C. Gau, who have lived at Burnstad for the last 20 years. She was to graduate with this year's class from Burnstad high school. Miss Gau leaves her parents, three sisters and two brothers. Her broth- ers and sisters are Francis, 10; May- nard, 7; Leota, 14; Dorene, 6, and! Yvonne, 3. { Puneral services will be conducted at | 10 o'clock Wednesday forenoon from the Catholic church at Burnstad. Rev. Father George Keim will officiate. | The body will be buried in Red Lake | cemetery, near Burnstad. Senate Is Opposed | To ‘Bad Check’ Law Repeal of the “bad check law” which provides a penalty for drawing of checks without sufficient bank funds, was approved by the North Da- kota ‘eae Saturday by a vote of 40 to 4. ‘Sen. W. E. Matthaei of Wells coun- ty is author of the proposal which now goes to the house. Matthaei proposed repeal of the law prohibiting smoking in restaurants in another measure introduced Saturday. cially provided for that purpose. ® 4 next Saturday's Jan. 28) with five ‘Wonder Loaf wrappers. After Meals? é Watch for Poisons ; ‘ , tired’ feeling is usually a/ struck a breed Kelley A. Simonson Suffers Broken Leg Kelley A. Simonson, above the knee in a acc! dent near here Sunday afternoon. Sliding dowm # hill north of, the Bismarck Country club, Simonson mishap occurred about 3 o'clock. pected It is now unlawful to smoke in res-|capacitated several weeks, with his teurants, street cars or railway/leg in a cast. He is well-known coaches, except where rooms are spe-| throughout the Missouri Slope since he was a member of the Bismarck baseball team for several seasons and is attive in Boy Scout supervision Manager of sides at 405 Hannafin §t. fered break tn his right ie iuxt| Wishek Child, Four if Years Old, Dies Here | Fred Baumann, four-year-old son | bump. and fell, his leg fold-|of Mr. and Mrs. Fred vite waa taken oak ¥ was to the Bismarck hos- | 0’ pital immediately by Mrs. Simonson} He 20 The|days, having been brought here for treatment Jan. 5. to be tt Ree me Nore Hee, 1M A Need Four Million to Pay Interest for 1933 State Treasurer Dale Presents Fiscal Dilemma Fac- ing North Dakota Legislature; Offers Scrip Plan to Aid Farmers, Bolster Tax Collections The text of the message which State Treasurer Alfred S. Dale sent to the legislature Saturday is presented herewith. ‘ The document outlines the state’s financial dilemma in startling terms and informs the law- makers that it will be necessary to rise $4,000,000 to pay interest on state bonds for 1933 in addition to $4,000,000 to meet the state’s operating expenses. With tax delinquencies mounting, Dale offers the opinion that it cannot be done under present circumstances and presents some suggestions for meeting the crisis, among them a proposal to adopt a system of state “scrip” which would circulate in place of federal money. The text of the message follows: TO THE TWENTY-THIRD LEGISLATIVE ASSEMBLY: I feel it is my duty to call your attention to the fact that the credit of the State of North Dakota is at stake in the matter of providing funds for the payment of interest upon the bonds issued by the state when the next interest payment becomes due on July 1st. Already the State Treasurer has borrowed $2,255,000.00 from the Bank of North Dakota on Certificates of Indebtedness to pay the interest due. Ap- proximately $400,000 additional must be borrowed to com- plete the payment of interest due last January 1, 1933. A million dollars must be available next July 1st, and very likely another million dollars will be required for the January 1, 1934, interest payment. There are sufficient funds in the Real Estate Bond: Principal Fund to pay all real estate bonds falling due in the next two years. I also wish to call your attention to the fact that the running expenses for the state for its institutional, depart- mental and other purposes is a little less than half a million dollars a month, or roughly $5,000,000.00 per annum, not including highway construction or maintenance, funds for the latter being obtained from the gas tax and the license tags. The total collections for the past six months to the General Fund have been $1,326,755.08, but indications are that the tax payments will fall off considerably. Perhaps $1,000,000 may be collected during the next few months, after which collections will fall off very materially. 5 TAX DEMANDS GREAT The financial requirement for the year 1938, conservatively estimated, to be raised by taxation, will be: Interest on North Dakota Bonds . $4,000,000.00 State Expenditures .. 4,000,000.00 The total available collections to meet this huge require- ment will not exceed $3,000,000.00, it is estimated. This figure may appear high, but even if it is discounted 20%, should tax collections be better than I anticipate, it will still leave some $4,000,000.00 to raise. This does not include those revenues from the. gasoline tax and the license tax sales, which amounted to $2,424,690.90 for the fiscal year ending June 30, 1932. While this sum is being required by the state, the other taxing units throughout the»state will be demanding not less than $20,000,000.00 and if present plans and programs con- tinue the taxpayers will be called upon for some $25,000,000.00 to $20,000,000.00 for all tax purposes, at the lowest estimate. A large portion of these expenditures are fixed charges such as interest and principal payments upon bonds due by the state and counties and other political subdivisions. More- over, the- principal payments which should be made to the State Treasurer by the farmers having Farm Loans (there are 16,000 such loans) will not be made. This will curtail the Principal Real Estate (Sinking) Fund, which deficiency must be made up in future years if left out of the tax assess- ments at this time. Thus we will be storing up a tax burden for future years, which ae Pe belong to the present time. Realizing that further delay will leave our state finances in a chaotic condition, as the Fiscal Officer of your State, I humbly present the following suggestions for your immediate consideration: First, that a Bill be immediately introduced transferring one cent of the gas tax to the General Fund for the. next two years to furnish funds to pay off the legislative mem- bers’ salaries and expenses, and to conduct the other neces- sary governmental functions of the State of North Dakota. Second, that a Bill be introduced and passed transferring the State Bridge Fund, and any other funds not essential for immediate needs, approximating $400,000 to the General Fund, or to the Real Estate Interest Fund. The present emergency demands the transfers. Third, that provision be made for the continued liquidity of the Bank of North Dakota, in addition to insuring suffi- cient funds to make interest payments. This may be done by a direct property tax, by diverting 1c of the gasoline tax, or by payment of the installments due upon farm loans by the farm owners. A tax upon real estate, or a special tax upon some com- N modity, or some form of a sales tax may bring in sufficient © funds. The income must be certain. A direct additional tax levy upon real estate at this time will not meet with favor from the taxpayers, even though it be for the laudable purpose of preserving the state’s credit. I do not favor a tax levy upon real estate. The sales tax will be resented. PROPOSES NEGOTIABLE CERTIFICATES I do, however, wish to offer a painless, self-liquidating relief plan which I think will enable the farmers to meet their debts to the state, both on their farm loans and for their taxes. sf A SELF-LIQUIDATING FARM RELIEF PLAN By Alfred ale, State Treasurer This Farm Relief Plan is offered as an Emergency Meas- ure in this financial crisis facing North Dakta, until such time as the Federal Government takes the necessary steps to improve the farmers’ lot. It is designed to assist the Bank of North Dakota, facing a $4,000,000.00 deficiency for its interest payments during 1933. It will relieve the already ov@rburdened taxpayers on our farms and in our villages and cities who must make up this deficiency. ‘ THIS PLAN PROPOSES TO DOUBLE THE PRESENT FARM INCOME, thus giving every farmer more purchasin; power, and an opportunity to liquidate his debts. It wi bring speedy relief. It is simple. It requires no costly ma- chinery for its operation: Many suggestions have been made to help the farmer. It is generally agreed that if he received ‘a fair price for his wheat, his pork, his beef, his ‘poultry, he would have no difficulty in paying taxes and mortgage installments. It is also quite universally conceded and acknowledged that some form of currency inflation is necessary to bring this about. Otherwise the farmer can never hope to pay taxes or to lift the mortgage burden now resting upon Agriculture. Germany got rid of ,its domestic debts by inflating its the Shoe Mart, he re- Baumann, Wis- | at a local hospital at 1 Message Outlines State Financial Crisis|W0ULD BAR ISSUES \ currency and not redeeming it. Russia did the same, France and Italy used inflationary methods to obtain debt relief. Even the Revolutionary War debt was not all paid, history books notwithstanding. Milli and millions of currency is#ued by the colonies and by the central government were never redeemed. Hamilton could not and did not fingnce the Revolutionary War. Civil War finance methods were based on currency inflation, and had it not been for the great untouched natural resources of our country which were then to be opened for exploitation and the sale of vast tracts of government lands which brought in huge sums of money to the national treasury, the finances of the Civil War and after, hire have been a sorry mess. The fallacy of no redemption feature in most currency inflation proposals is avoided in this plan. The negotiable certificate issued by the Bank of North Dakota, the State Treasurer, or the treasurer of *any political unit will be REDEEMED under this plan. It will inject relief at the bottom where it is needed, instead of furnishing aid to rail- - roads, insurance companies and huge banking corporations at the top. , ; HOW IT WORKS An illustration will make the plan clear. Mr. Farmer, for example, has one thousand bushels of wheat. (The same principle applies for any other farm produce—beef, pork, etc.). Today, if he sold that wheat he could get only $350. What taxes can be pay with that? What debt can he settle? How can he pay a farm loan install- ment? Under this proposed plan; Mr. Farmer, who we will say has a loan from the Bank of North Dakota upon his farm, under this plan will take his wheat to market, and turn the $350 draft he received for it over to the Bank of North Dakota. It in turn credits him with $360 on his loan, and reissues to him a series of $1, $5, and $10 negotiable cer- tificates to the extent of $350. This and his $850 credit make $700 in all. (The Bank of North Dakota cannot issue currency because the United States Constitution prohibits that.) In other words, it pays him 70c per bushel for his wheat, Under this plan he thus gets twice the current mar- ket price. He pays his installment due the state, and receives an equivalent amount in negotiable bonds which are self- liquidating, as explained below. If he wishes to pay taxes he turns his wheat money over to the County Treasurer, who issues him $350 in negotiable certificates. At present there are 2,000 towns and cities in the United States which are issuing scrip money in connection with their unemployed. HOW REDEEMED The scrip plan in operation in St. Paul and other cities involves the acceptance of these notes by merchants and dealers. Naturally, it is essential that any bonds or certifi- cates issued by the Bank of North Dakota or the State Treasurer must be accepted. Communities all over the United States using scrip are finding them readily negotiable. Mer- chants, dealers and others in the state have indicated their willingness to accept such certificates at a small discount for each transaction. This plan proposes a 3% discount on each transaction. So when Mr. Farmer takes his $4 cer- tificate to his merchant, that merchant gladly buys the 3c Revenue Stamp which must be attached to the <ertificate, gets his money, and is happy. “These revenue stamps are to be purchased from the State Treasurer, each transaction involving the placing ofa 3c revenue stamp on each $1 certificate. The merchant trans- acts business with a garage man who places a 3c stamp thereon. He goes to the grocer, and so on. It requires 35 transactions to redeem and automatically liquidate any given amount. The state obtains the money beforehand by selling the stamps to be attached to the cer- tificate. When the certificate has the required 35 stamps it may be returned to the state and the sholder receives the full value thereof. In the meantime the note has performed the true functions of mdney—it has served as a means of exchange, with a small ‘service charge. Uncle Sam charges 2c on each check today, yet checks are written and used. With payments due the state for taxes, interest or prin- cipal amounting to over $10,000,000 annually, and with over thirty millions for taxes alone due to all political units, it is readily seen that an immense amount of farm products can be purchased and certificates issued. The parties handling the currency, or certificate rather, absorb the extra 35c bounty per bushel paid to the farmer for his wheat. These state certificates will readily pass inasmuch as they are redeemable at par. The experience everywhere indicates their ready acceptance. Before this plan, which may be called revolutionary and radical by some, is put into operation, the business men, the commercial clubs, the banks, the larger business institutions of the state should all be invited to assist in furthering the proposal. That they will quickly take it up is almost a fore- gone conclusion. The expressed sentiment of many legisla- tors indicates that scrip money for paying school teachers, county and state employees is already seriously considered. But that does not take care of the farmer. To give a school teacher scrip merely transfers the burden to the merchants, and does not help the farmer. I¢ is desirable, no doubt, but leaves the farmer holding his wheat, yet compelled to pay taxes to redeem the scrip, under other plans. This plan automatically doubles the price of grain, and it is self- liquidating. There is one additional feature. When Mr. Farmer receives this double price for his grain he must sign up an agree- ment, in consideration for this special price, to reduce his acreage in accordance with a specified agreement, when he receives these certificates. The argument for this is that he has received his pay by getting double price for that re- duction. "The plan is feasible. It is timely. North Dakota is Pro- gressive. Two thousand cities have already adopted scrip money. It is not an experiment. Let it extend to the farmer, and serve the purpose of inflating the currency as well as doubling the Lvigge of farm. produce. If adopted by the present Progressive Legislature, and 1 have every confidence that it will be, this plan will no doubt be adopted by the Federal Government in connection with its vast system of farm loans and seed loans, as well as its taxes. It is far superior to the complicated Roosevelt Allot- -liquidating and 2 ment Plan, because it is simple, sel » let me repeat, will accomplish the This plan, purposes: 1. It will DOUBLE the price of wheat for: any commodity to which its principles may be )- ‘ * North Dakota, rdrender’ 254,000,000 tax of an unnecessary & “levy for ee ee ee eee a. fei bring about ae t of taxes, and consequent q r7 ent payment of county, school and state employees and all other Pee expenses. 4. It will NOT create s surplus of wheat because each bushel is sold at the time of the transaction and not held in storage. 5. It will inflate the doul the eg Bi currency by doubling Prices paid 6. It will bring relief to the farmer first and financial . railroads, the bi relief to the ig insurance companies and other corporations second. 7. It is simple, workable, and self-liquidating. ‘These Gis aime andl Somes of the sti nation. This Self-Liquidating Farm Relief Plan, which I propose will accomplish every one of these desirable results. I recommend this Plan to you, and trust that you will spandity ps She Seceenery leainlaties: '0 Since 1 Mats Smit ation. : I thank you. ALFRED 8. DALE, State Treasurer. Use the Want Ads --OF MORE N. D. BONDS Fowler Offers Bill to Restrict Issuance of Additional Securities Issuance of additional North Da- kota real estate series bonds, now to- taling approximately $39,000,000, ‘woul troduced in the senate Saturday by A. W. Fowler of Cass county. Under the bill issuance of urer. ‘The measure provides for diverting $1,000,000 a year from the motor ye- hicle and gasoline tax collections for in making bond interest payments outstanding bonds. itting aside $130,000 a year for the bridge fund would be terminated law and the unobli- now in this fund would FAgeay fu Hitt fl, a ito the real estate bond interest pay- than into the gen- eral fund because “it is believed that “I am advised,” he said, “that this diversion will still leave sufficient funds for proper maintenance of our present highway system and will also permit of some new work in the way of regraveling and new graveling.” Bill Would Abolish N. D. Securities Body; Abolition of the state securities | commission and transferring of the Provision for recall of county com- missioners was Rh aicopserey by Ole Sundby, McLean, request. Both bills were referred td the state | affairs committee. ‘The house re-referred to commit- tee the proposal to lower minimum of Defeated in House A bill for a $1,000 biennial appro- was in- ‘Whatdo; chink of it? Ask Mr. Edwards. He's an engineer. prohibited under bill in-| ° mortgages \for the Pargo state fair by the North / hand unassigned to the state treas- ciation. Minot fair dates are July PLYMOUTH SIX ‘495 AND UP F.0.8. FACTORY » SOLD BY 7,292 DESOTO, DODGE AND CHRYSLER DEALERS il recommended | the appropriation ved. cut from $2,000 to $1,000. ] Ole Sundby, McLean, opposing the k appropriation, said, “Let the bees run at large and use the money for rural schools.” J, M, Thompson, Burleigh lature where we are getting stung ™W. J. Planuigan, tuistaan county, * W. J. jan, Stu iy, said “it isn’t @ question of whether the bees need inspection. We need to cut, a0 let’s cut.” Fair Dates Set by State Association Fargo, N. D., Jan. 23.—(?)—The week of July 10 to 15 has been set 2 to 8 and Grand Forks, 17 to 22. ‘Wells county's fair at Fessenden is June 27 to 30; Stutsman county, Jamestown, July 2 to 5; Cavalier county, Langdon, July 10 to 12 and 4 Pembina county, Hamilton, July 17 to 22. kk ‘ Irregularities persistent backache, bladder irregularities and a tired, nervous, depressed } feeling may warn of some dis- ‘tT ee | jsers everywhere re! | on Doan’s Pills. Praised for More than 50 years by grateful users the country over. by druggists. HOTEL MARYLAND “We picked Plymouth because It’s so BIG in Size... and Value” "AY BE you haven't got 2 Miteiy like plghesd He : “Ia my opinion, Floating Power! Or, for that vee oe 4-DOOR SEDAN NOW $90 L885 Timrcboce Hedan 6343, Comnert- ble Coupe $565, Coupe with Rumble Seat $525, Business Coupe $495. Prices £.0.b. factory. .