The Bismarck Tribune Newspaper, February 4, 1933, Page 1

North Dakota’s Oldest Newspaper ESTABLISHED 1873 ” MANAGER OF BANK QUESTIONED ABOUT DEBT CBRNIIGATES Butler Says Neither He Nor Mudgett Was Enthusiastic to Make Purchase Thorp Request Again Is Met With Order to ‘Put Ques- tions in Writing’ Issuance of $400,000 worth of certi- ficates of indebtedness by the North Dakota capitol commission and the need of such an issue were studied Saturday by the legislative investi- gating committee with P. H. Butler. acting manager of the Bank of North of the hearing. Butler said neither he nor Col. C. F. Mudgett, manager of the bank un- til recently were ‘very enthusiastic” about purchasing the certificates and that before they agreed to do any- thing they received an opinion from the attorney general's office. Butler reported the issue of certifi- cates was necessary before the “con- tractors” would sign contracts for portions of the capitol building work, with the comment that former Gov- ernor George F. Shafer had reported he wanted the capitol building pro- gram completed under his adminstra- tion as the incoming administration might be unfriendly. Sen. W. G. Bangert, member of the investigating committee, read min- utes of the capitol commission into the records that’ referred to the need of the certificate issue so the commis- sion could take advantage of low prices on materials. Butler said he did not know whether any of the $400,000 had been used yet for that Consulted in August Butler told of the preliminary ar- rangements for the issuance of the certificates, relating to the investigat- ing committee that. as early as Au- gust, 1932, the Bank of North Dakota hati been consulted concerning their purchase. He said Shafer took up the matter with the bank and reported Shafer as having told bank officials money from the certificates was needed in the completion of the work on the new $2,000,000 capitol. Butler told E. R. Sinkler, investigat- ing committee counsel who questioned him concerning the transactions, he thought the capitol commission had on hand about one million dollars. Butler said it was costing the state $20,000 a year for interest on the certificates. He said the last one was payable in 1942. ‘The acting bank manager said he had inquired of bond houses concern- ing bids for the certificates but all of them had sidestepped with the gen- eral comment they were not interested because of the iimited tax provisions for payment of the certificates and the delinquency of taxes in the state. Would Offer Under Par One bond house said their offer, if they presented one, would be about 90 or 91 cents on a dollar. At this point George Thorp, Fargo, 4 utes concerning the state auditor and the ae be read into the rec- ord with Bangert s1 sting in writ- ing as provided by tules of the committee. Sinkler said it was not necessary to have the minutes in the record because all he wanted to know was whether the Bank of North Dakota had had any information from the state auditor about the certificates of indebtedness. Butler said the bank had no direct word from the auditor. J. J. Murray, a clerk in the motor vehicle registration department, was calied and the investigating com- mittee turned for a Me. Gene es the. certificates , to judson cai which G. A. Fraser, commission member who resigned this week, used on his Louisiana trip. He testified the licenses for the Hudson were issued to Fraser and the La Salle that later burned was also licensed by Fraser. He also present- ed a bill of sale showing Fraser trad- in the Hudson at Chicago and gave a personal check of about $800 for ie es. the stand as the BOND MEN OFFERED LITTLE| Dakota, being examined during most | counsel for the capitol commission ; Cll. ers, asked that portions of the min- a =e When photographers snapped a pic-;a benedict. As shown above, he ture of Montagu Norman, governor of | nis hands over his face to shield it. the Bank of England, and his bride ‘ims following their wedding recently in] and gave “the boys” one of her bright- London, the noted financier had nojest smiles. Norman is 61 and his zest for publication of his picture as! bride is 33. Audit of All Of N.D.Government Urged PRUSSIAN BODIES ARE DISSOLVED BY GOVERNMENT ORDER | Boards of Every City in State Must Hold New Elections on March 12 Berlin, Feb. 4—(#)—The commis- sionary government of Prussia de- creed immediate dissolution Saturday qvening of all communal parliaments in the state. .This action, following by a few hours refusal of the Prussian diet to accept a National Socialist mo- tion expressing a demand by Chan- cellor Hitler's cabinet for dissolution of that body, means that all the city boards of aldermen, from Berlin down jto the smallest village, must hold jelections on March 12, a week after the scheduled Reichstag election. The government expects these clec- {tions will result not only in com- ;munal majorities for the National- ists and the National Socialists, but |also. in the election of a Rightist {president of the Prussian state coun- Then‘ with Hans Kerri, National Socialist president’ of the diet, the (mew president can dissolve the Prus- {stan diet under the provision which Permits dissolution of a two-to-one jVvote of the diet triumvirate, includ- ing the premier of Prussia, the pres- ident of the diet, and the head of the state council. " President von Hindenburg signed a Press-restriction decree promulgated last July 4 by the von Papen gov- ernment and subsequently rescinded by the von Schleicher cabinet. The decree ran counter to an an- nouncement made a few days ago by Dr. Wilhelm Frick, Nazi minister of interior, that no such curtailment ‘was contemplated. Appeal Went Unheeded The order was made necessary, a communique ‘said, because the gov- lernment’s appeal to avoid everything which might cause unrest or en- danger the public security had gone unheeded. Suspension of two more Socialist newspapers and confiscation of Sat- urday’s edition of the Communist organ, the Rote Fahne, were noted. Seven persons were wounded sev- erely and a score slightly injured dur- ing a Nazi-Reichsbanner pistol fight Od Dortmund. One was expected to Suspension of publication of the So- sider the coming elections all-import-| ant. Adolf Wagener, National Social- ist leader, said at a mass meeting in M . “Wefe the government now stopped, it is most likely there will not be too many elections in Germany.” This would mean a continuation of &@ government by decree, but opposed to such recourse is President von Hin- denburg bimaalf. But the Wife Was Willing \ put But his bride had no such qi Departments Suggestion Made That It Would Be Fair to Those Whose Books Are 0. K. A complete audit of all state de- partments, as a result of information uncovered by investigations of affairs of two former state officials, is being considered by North Dakota state of- ficers. The arrest of John Gammons, for- mer state industrial commission sec- retary, on charges of embezzlement, and testimony offered before a leg- islative investigating committee that G. A. Fraser, former adjutant gen- eral and capitol building commission member, entered duplicate travel ex- pense vouchers against three state funds, has caused state officials to consider the advisability of auditing all other departments. Officials who are advocating the sweeping audit said this would be done with the thought that since ac- counts of some state officers have been questioned, an audit of the books of other officers should be car- ried out in fairness to the officers whose books are in proper shape. Auditing Gammons’ Now Gammons' books are now being audited, while Governor William Lan- ger is expected to authorize an audit of the affairs of Fraser during his term as adjutant general and capitol |commissioner. Fraser was replaced as adjutant general a few weeks ago and. resigned Thursday as a member of the capitol commission. The legislative committee investi- gating the capitol commission is con- | tinuing its taking of testimony relat- ing to Fraser's affairs. Testimony was offered that Fraser entered travel ex- Pense accounts against the adjutant general's office, capitol commission, and Missouri river commission. The committee is now making inquiry in- to purchase of a car used by Fraser in a trip to Louisiana, Gammons has been bound over to the Burleigh county district court. He waived preliminary examination Fri- day when he was arraigned on a charge of failing to account for $600 paid him from proceeds from a $23,- 000 certificate of deposit in the Bank of North Dakota, representing part of one of the funds under the direction of the industrial commission. For several weeks an investigation had been under way of Gammons af- fairs. He had been secretary of the industrial commission for nearly 10 years. The transaction questioned by of- ficials in the Gammons case concerns funds set aside for compiling a history of North Dakota soldier who served in the World War. FOR BRIBE CHARGE Judiciary Committee to Meet Monday Following Public Trial Friday BARRY REAFFIRMS BELIEF! | Said in Story There Are Not Many ‘Out-and-Out Graft- ers’ in Congress Washington, Feb. 4.—(#)—The sen- ate’s 73-year-old sergeant-at-arms, David 8. Barry, was under suspension | Saturday for writing a magazine ar- ticle accusing some members of con- gress of accepting bribes. Chi in Norris called a meeting of the senate judiciary committee for Monday to consider whether further ‘action should be taken against him, Demanding lbel action for publi- cation of the magazine article, Sena- tor Walsh (Dem., Mont.), asserted in an interview that the publishers should be called upon to furnish proof of the statement. He was removed from his familiar chair next to the senate's presiding officer after a public trial in that his- toric chamber. In one of the most unusual scenes in_ congressional history, Barry was called before the senate bar. He acknowledged writing the article, ad- mitted he had no evidence, but as- serted his belief that his article was true. ‘The article in question was publish- ed under Barry's name in the cur- rent issue of the New Outlook which is edited by Alfred E. Smith. Its title was “Over the Hill to Dema- goguery.’ Among its statements was this: “Contrary to popular belief, there are not many crooks in congress. That is, out and out grafters.” The attention of congress was first called to the article by Representa- tive LaGuardia of New-York, who said in the house that Barry should ee bers who have accepted 7 In the senate. the neatly-dressed Barry faced the accusing senators. Under the stern questioning of some of the senate’s most able legal minds he gave hesitating and somewhat conflicting answers. For two hours the senate debated whether to dismiss Barry summarily or suspend final judgment until next Tuesday. Finally it was decided to refer the case to the pudiciary committee for investigation and report by next Tues- the case to the District of Columbia and New York state authorities for Possible prosecution on the grounds of criminal libel also was referred to the committee. BILL PROVIDES FOR REVIEW OF BUDGETS All Municipal Taxing Bodies Would Be Bound by Pro- posed Enactment de fF i aed aks 38 3 iz if te fal i i 5 trial commission's attention to the transactions. Questions Salary Payment On taking office, Mulloy placed be: fore the commission, details of a pay- ment of $550 as salary at the rate $100 a year for the five and a hal years the soldiers’ history fund under Gammons' direction. The pay- ment was made, Mulloy informed the commiasion, on a voucher approved by Fraser as adjutant general. ‘The soldiers’ history fund accumu- lated through discounts in payments of the soldiers’ bonus fund, over which the adjutant general had su- pervision. In 1927 the legislature authorized the adjutant genera: to use ‘money accumulated through adminis- tration of the bonus fund for com- piling a history of the records of citi- gEe World War. zens of the state who served in the|to be temporary. The industrial commis-| Burnie Maurek, sion, under the law. became custodian |and fish of the fund, which amounted to ap- | week. ‘proximately ‘Swenson is & farmer at Northwood. }hands 358 ail i 2 e W. J. Flannigan, and Geo. P. Homnes, Divide. Resppnintment of. 0. Vernon Five: man as deputy game com- missioner, and appointment of W. C. ‘Mills, Bismarck, as chief game ward-| en, were made Friday by Swenson, newly-named game and fish | Fr! commissioner. Freeman's ‘whose term as game Late News Bulletins (By The Associated Press) (By The Associated Press) REJECT CUT OF OWN PAY ‘Washington—By a vote of 172 to 37 the house rejected a proposal by Rep. Wittington (Dem., Miss.) to cut salaries of members from $9,000 to $7,500. A second proposal to cut the salaries to $5,000 was rejected 161 to 2. In the senate Democratic Leader Robinson (Ark.) renewed demands for an investigation of the airmail situation to find what a proper ap- Propriation for next year would be. CONVICTED OF MURDER Minneapolis — Leonard = ins, accused of slaying Patrolman Ira Evans in connection with the THREE IN HOSPITAL Gardena, N. D.—Three victims of @ train-bus crash near here Friday, in which Marvin Marquardt, 8, was killed, are in the hospital at Bot- tineau. Mildred Marquardt, 15, is in critical condition with a fractured 17, has a scalp wound and injuries to his back which may prove seri- ous. There were nine children and the driver in the horse-drawn vehicle. OPPOSES RATE BOOST SENTENCE NO 1 GUNMAN Chicago—Murray Humphreys, suc- cessor to “Scarface” Al Capone as Chicago's No. 1 “public neemy,” Sat- urday was sentenced to serve one year in the house of correction and pay a $300 fine upon his recent conviction on a charge of gun-toting. WOULD SOUND SENTIMENT Washington—_ ‘FLU’ GETS WAR HERO Detroit—Capt. Adrian W. Reeves, shot down six times during his World War aviation career in which he es- caped with nothing more serious than a ankle, died Satur- day of influenza at the age of 33. SCHOOL BANDS WILL GIVE FREE CONCERT Public Invited to Program at Memorial Building Sun- day Afternoon Ninety-five Bismarck school chil- March—"Tuscara' All by juvenile concert band. March—“Ambition.” Selection—“Playmates.” Mareh—“! ” Concert waltz—“Claudine.” Hymn—“Yield Not to Temptation.” Selection—“Battle Hymn of the Re- public.” March—“Sna| ” Eugene Palmer, William Lam: bert and Robert Kling. solo—“Bax King,” played Saxophone He served under|by Russell Arnot. ‘Tone poem: NORTH DAKOTA, SATURDAY, FEBRUARY 4, 1933 HE BISMARCK TRIBUNE BISMARCK, Committee Asked to Hurry Leg- islation to Prevent Tie-up of Machinery 56 BILLS IN THREE DAYS 14 More Are Offered Friday; One Would Re State Pardon Statute ‘With a record of 56 new bills in three days, including 14 more Friday, committees of the North Dakota house of representatives were urged by Speaker Minnie D. Craig to dispose of them as rapidly as possible to pre- vent clogging of the legislative ma- chinery at the close of the session, Granting of pardons by a majority of the state pardon board is proposed in the bill introduced by H. T. Peter- son, Mountrail county. The existing; law requires unanimous vote of the board. Use of spring scales would be for- bidden by provisions of the measure introduced, by W. H. Bettenhausen, McIntosh, and K. A. Pitch, Cass. Geo. Aljets of Wells would compel ma- chinery companies selling in North Dakota to keep a full line of repairs in the state and Christ J. Hanson's Measure would abolish the state se- curities commission and place the work with the state banking depart- ment. C. T. Olson, Slope, would provide! for payment of officials in any po- litical subdivision for six months by! issuance of warrants and half of the! salary in cash. | ‘Three measures relating to trucks and busses were introduced by Ar- nold E. Sandlie, Grand Forks, and Alfred Mostad, Ward. One reenacts the commercial truck and bus regula- tions, another fixes length of trucks and trailers used on state roads and fixes the load limit, and the last one includes provisions for a truck-mile tax ranging from one-half cent per mile up to four and three-fourths cents per mile, depending upon the weight of the truck, to be paid monthly into the auto transportation fund. Five Bills Passed Five bills were passed by the house in a session lasting more than three hours. The Biewer bill to permit public Posting of school district treasurer’s reports when yearly expenditures are less than $10,000 instead of printing them in newspapers passed by a vote of 76 to 30. The measure brought brief debate to the floor with H. T. Peterson of Mountrail county saying he “hated to be forced to get into his car to run around the country looking for a fence post with the notice on it.” The author, M. P. Biewer of Cava- lier, said if the information was really wanted by a taxpayer it would be available at the courthouse, eliminat- ing any need to find a post. Clarification of civil court proce- dure on directed verdicts, protection for sheriffs in damage suits, and au- thorization of the secretary of state to give notice to domestic corpora- tions on date of pare of their period of corporate existence were among provisions of the bills passed. The corporate existence bill was a senate measure. Another bill compels sheriffs, clerks of district courts and public admin- istrators to deposit funds with treas- urer and absolves them from liability thereafter. Roosevelt Examines Political Situation En Route With President-elect Roosevelt to Jacksonville, Fla. Feb. 4—(P)—The privacy of President- elect Roosevelt's overnight ride to Jacksonville for his final vacation gave him opportunity early Saturday to make a last-minute scan of the political situation and patronage. James A. Farley, chairman of the national committee and the master of the many thousand: subordinate Jobs to be passed out by the new ad- ministration, rode with Roosevelt to! his sea rendezvous which began at 9:30 Saturday morning when the President-elect boarded Vincent As- tor’s yacht. Nourmahal for a 10-day cruise. The President-elect is reserving to) himself alone the high cabinet and “baby cabinet” appointments. But he realizes that a new government in- volves a vast appointive task and in bayed he is listening to his trusted ad- rs, Youth Is Killed in Gravel Pit Cave-in his Gets Million o ~ —————— Audrey Nancy Campbell, Chicago debutante, above, has won her court action for control of her million-dol- lar share in the estate of her moth- er, Mrs. Nancy Lathrop Carver ampbell. Ci INTRODUCE BILL 10 FORGE REVISION OF N.D. UTILITY RATES Provide That Cost of Revalua- tion Shall Be Borne by Service Company On petition of/ 25 per cent of the Dublic utility patrons in any city, vil- lage or town, the state railroad com- mission would be required to revalue Property of the company at the util- ity firm's expense, according to the provisions of a bill introduced in the [Senate Friday by Senators A. F. Bon- zer, Richland county, and Charles G. Bangert, Ransom. The bill provides that on being pe- titioned, the railroad board “endeavor to arrive at a reasonable rate or rates through negotiations” with the utility company, the new rate to be not less than 15 per cent under the old rate. If the commission and the company fail to agree it would be mandatory on the part of the commission “to summarily and forthwith reduce the rates 25 per cent” until a hearing is held to revalue the property. A pe- tition for revaluation could not be filed more than once every two years. If rates are summarily reduced, the utilty company would be permitted to charge its former rate, provided it kept 25 per cent of the collections in a separate fund, to be remitted to its patrons if the case is decided ad- versely. The commission is authorized by the bill to employ rate experts, engi- neers, accountants and other expert assistance, the expense of these em- ployes to be paid by the utility firn: being investigated. Utility companies included under the proposed bill are pipe-line compa- nies for transportation of gas, oil and water; telephone and telegraph com- panies; electric light companies anc individuals engaged in. generating, distributing and selling light, heat or power; companies engaged in distri- buting natural or artificial gas, and all heating companies. ‘The measure was referred to the judiciary committee. Would Aid Soldier Home A bill for a $22,000 appropriation for the Soliders’ Home at Lisbon was offered in the senate, with an ex- planation that “owing to the financiai depression it seems that it will be im- possible for the North Dakota Sol- diers’ Home to continue to take care of and provide for those members now in the home without some assistance.” Provision for liens in favor of hos- pitals and other charitable institu- tions treating persons injured in ac- cldents is made in a bill presented in the senate by Senators G. A. Jones and J. H. Burkhart of Ward. A bill aimed at prohibiting “slot machine” gas pumps passed the sen- te. ate. 8.-8. McDonald, Burleigh county, author of the proposal, said t! were no “slot” machine pumps in the Weather Report fe) to cloudy tonight PRICE FIVE CENTS “Wound Four Men in Farm War ring Capitol Finances Into Legislative Probe ‘s._|SENATORS SUSPEND \Craig Urges Speed guj) | SERGEANT-AT-ARMS | To Avoid Hou BLOCKADE RUNNERS AND PICKETS SHOT IN STRIKE FLAREUP Attempt to Transport Milk Into Sioux City, lowa, Causes Violence STATE LEGISLATURE ACTS Approves Plan to Make Alcohol From Corn to Provide Agri- cultural Market Elk Point, 8S. D., Feb. 4—()—With one man lying near death in a Sioux City hospital and three others suffer- ing from severe gunshot wounds, Un- jon county, South Dakota authorities Saturday were launching a vigorous investigation of Friday afternoon's milk strike gun battle which took Place near the Iowa boundary when @ group of milk haulers attempted to run the highway blockade, main- tained by farm strikers, and take milk to Sioux City. The most seriously wounded victim of the gun fight was R. D. Markell, 67 years old, milk importer of Elk Point. He was suffering from gun- shot wounds in the abdomen, seven of the pellets having punctured his intestines. Attending physicians held little hope for his recovery. Two of the other victims were sons of the elder Markell. Keats Markell suffered gunshot wounds on the left hand, face and head and one of his fingers was severed by a bullet. Harry Markell suffered buckshot wounds about the face and head. The fourth victim was Nile Co- chran of Moville, Iowa, said to have been one of the farm strike pickets. He suffered scalp wounds, but the injuries were not serious enough to send him to a hospital. He was lodged in jail at Sioux City, where he was being held for questioning. Sheriff Tom Collins, of Union county, and State’s Attorney G. C. Donley were on their way to Sioux City this morning to question Co- chran in an effort to learn the names |of other strikers who had participat- jed in the battle. Expect More Arrests Additional arrests were expected to be made during the day. Charges of assault with a dangerous weapon are to be filed against all who took part in the attack, officers said. Three: guns: were ¢aken from the Markells following the shooting officials said and a revolver was found | by officers on the seat of their truck. Meanwhile the Iowa legislature had approved 2 plan to allow the manu- iacture of alcohol from corn to pro- vide a market for part of the grain surplus. Other developments in the farm Situation included: In Nebraska a new conciliation \farm mortgage relief board consider- ed a plan for the appointment of county boards of five farmers. The senate committee at Washing- ton continued to hold hearings as the crop production loan bill awaited the President's signature. At Cherokee, Okla., a farm sale was Postponed without explanation and at Vermilion, S. D., a judge told farmers that he would uphold the Jaw “no matter how many protestors gathered.” Members of a joint legislative com- mittee on farm mortgage arbitration were deadlocked in Iowa as they at- tempted to dovetail provisions of separate house and senate bills. In Oklahoma City governor Mur- ray exhorted the legislature to act quickly on farm legislation and term- led mortgagees “American citizens with {their backs to the wall.” A mortgage holder at Fairmont, Minn., was ordered by a court to show cause why he should not be enjoined from foreclosing on a farm and at Huron, 8. D., American Legion mem- bers were paying dues in hogs, poultry and grain. JUDGE HAS NO CHOICE BUT TO UPHOLD LAW Vermilion, 8. D., Feb. 4.—(?)—Judge W. A. Bauman told scores of farmers who gathered here Friday to object to entry of a judgment against a widow for possession of a Clay county farm that he “had no choice but tc uphold the law and would do so no payer how many protestors gather- Chinese Launch New Drive on Chiumenkow Chinchow, Manchuria, Feb. 4. —The Japanese military ters here reported its garrison at Chiumenkow, in the great wall of China, the fifth Chinese at- tack in eight days after three hours of desperate fighting Heavy Chinese losses early Saturday. 8 brie ‘With the aid of these regular troops the Chinese forces were try-