The Bismarck Tribune Newspaper, February 15, 1933, Page 1

. North Dakota’s Oldest Newspaper ESTABLISHED 1878 THE BISMARCK TRIBUNE BISMARCK, NORTH DAKOTA, WEDNESDAY, FEBRUARY 15, 1933 Weather Report Fair ht; Thursday ini PRICE FIVE CENTS, FE BILL INVALIDATES RESTRICTIVE LAWS ALREADY ON BOOKS Action Is Taken Without Debate Although Many Members Explain Votes BIG CROWD VIEWS ACTION 10 Other Measures Passed; Two Provide New Indus- tries For Prison By a vote of 57 to 55, a bill to re- peal virtually all of North Dakota's Prohibition enforcement laws was passed by the house of representa- tives late Tuesday. It now goes to the senate. There was no debate as the bill was placed on third reading. Previous| consideration of the measure stirred up considerable debate, but a test vote showed a narrow margin in fa- vor of the bill. The measure would repeal all but 10 sections of the prohibition statutes. North Dakota, dry since statehood, repealed the state constitutional pro- vision for prohibition in the Novem- ber election by adoption of an ini- tiated measure, but this left the en- forcement situation unchanged as the laws enforcing the provision were not repealed. The house gallery was practically filled and little standing room re- mained on the main floor of the as- sembly. Some of the visitors arrived four hours before the bill came up. A motion by H. N. Henrickson, Mc- Henry county, to suspend rules and omit debate on the bill carried by a vote of 82 to 18. Geo, Aljets was the first on the roll call and he ‘asked permission to explain his vote. “I am here in the interest of economy,” he said, “and I want to save the state of North Dakota $500,000 and let the federal government spend it in enforcing the prohibition laws.” He voted for pass- age of the bill. Labels Law a Joke William Falconer, Burleigh county, voting yes, said “it is better to have a few laws on the books that can be enforced than a lot that cannot be,” while from Ben Fedje, Williams county representative, came the ex- planation that “prohibition is a damn joke, and I vote yes.” From D. L. Peters, Pierce, came the warning that conditions may be bad now, “but without regulation they will be worse, and I vote no.” Arnold Sandlie, Grand Forks, said as he saw it the issue was not wet or dry but whether the people's wishes, as shown in the last election, are greater than the wishes of mem- bers of the legislature.” He voted for repeal, and across the assembly J. M. Thompson, Burleigh, warned as he voted “no” that “we'll have more bootleggers.” Ole. Ettestad, McHenry, said would not explain his vote of “ because he thought he might ‘have plenty of explaining to do when he got home. : Voting for passage were: Aljets, (Continued on page seven) CLAIM CONTRACTORS ON STATE BUILDING ‘PADDED’ ACCOUNTS Lundoff-Bicknell Executive Is Accused of Raising His Hotel Bill Officers and employes of the Lund- off-Bicknell Construction company of Chicago, general contractors for North Dakota’s new capitol, Wednes- day were charged by E. R. Sinkler, legislative investigating committee's , counsel, with having “padded” ex- pense accounts against the state. Frank L. Anders, secretary of capitol commission, however, said though expense accounts mentioned by Sinkler had been paid, the capi- tol commission had questioned them and actual “allowance” of them had not been made. He said the capitol commission could deduct the amounts paid from other money due the con- tractors if claims were disallowed. Sinkler said C. M. Norris, vice pres- ident of the contracting firm, “pad- ded” one hotel expense item from $14.41 to $22.87. The manager of the Prince Hotel, Bismarck, C. E. Ligon, testified that $14.41 was the amount paid his hotel. He said on another ‘oceasion Norris had paid: the hotel $8.46 and Sinkler read from the rec- ords that the capitol commission had paid $18.90 to Norris, charging Norris had “padded” the item $10.04. Anders said he had written the Lundoff-Bicknell company for ex- planations of several expense items and as yet had received none. He explained that certain expenses of the contractors are to be included in the cost of construction of the eer though the records show the question- ed ‘items had been paid, the capitol commission could still disapprove them ALFRED E. SMITH the national transportation commit-| reviewing the nation’s railroad situa- ALEXANDER LEGGE Here are three of the members of tee which filed a report Tuesday night, tion. They condemned both railroad |°f the North Dakota capitol commis- CLARK HOWELL managements and restrictive laws hampering operations of the carriers. Rail Financial Plight Is Blamed on Management COLOMBIA AND PERU BEGIN BATTLE FOR AREA ALONG AMAZON Launch Battle to Control Leti- cia, Upper Amazon Gate- way to Atlantic Bogota, Colombia, Feb. 15.—(#)— Colombia acted Wednesday to break off diplomatic relations with Peru as @ result of the beginning of open war- fare in the long threatening fight for possession of Leticia, upper Amazon gateway to the Atlantic ocean. Further details of the battle Tues- day on the Putumayo river, 80 miles north of Leticia, disclosed that it be- gan in Brazilian territory and that land, air and sea forces took part. Colombian troops drove Peruvians out of the town of Tarapaca, on the Brazilian border Tuesday, and cap- tured the city Wednesday. Fabio Lozano, Jr., Colombian min- ister to Peru and son of the Colom- ibian minister to the United States, was ordered to demanc his passports from the Peruvian government and return home. He also was ordered, before leaving, to present a formal protest to the Peruvian government the “at- tack” on the Colombian flotilla “while he|in neutral (Brazilian) waters, which continued in Colombian waters that the flotilla was navigating in order to accomplish its police mission in Col- ombian territory.” Both Leticia and Tarapaca are in the strip of land ceded to Colombia in @ treaty signed in 1922 and ratified by Colombia in 1925—and Peru in 1927. In defense of the seizure of Le- PERUVIANS CLAIM THEY STILL HOLD POSITIONS Lima, Peru, Feb. 15.—(#)—Peruvian military forces claimed Wednesday to be still holding their positions in the disputed Leticia territory after the first clash with a Colombian flotilla State of Wisconsin Facing Milk Strike pture Milwaukee, Wis. Feb. 15.—(?)— tively. Members of the Wisconsin Coopera- tive Milk Pool association have begun ze BRe 8 i 5 H my g .|the greater part of the report, did { | Non-Partisan Committee Urges; Consolidation, Elimina- tion of Waste New York, Feb. 15.—(?)—Railroad | managements found Wednesday that) much of the responsibility for the fi-} nancial plight of America’s $20,000,-| 000,000 rail system had been Placed | squarely on their own doorsteps by) the report of the national transpor- tation committee. This non-partisan committee,! which conducted a sweeping investi-| gation of the transportation problem at the behest of savings banks, in- surance companies and other large investors, drastic measures: toward consolidation, eliminating wasteful competition. The committee found some justice in railroads’ complaint that they have been hamstrung by inept regulations, but reported a “tendency to over- emphasize this argument.” Declaring regulation has “left something to be desired, the report added: “The railroads should do much that. they have not done to improve their condition without any govern- ment help at all. They should be promptly freed of all unnecessary Te-| strictions in the doing of it.” | With the perfection of regulation and the appearance of competing forms of transport, the committee held, the government should abandon its old policy of fostering artificial competition among the railroads. Monopoly Not Possible Furthermore, the committee said, government assumption of “all or part of the costs of inefficient com- peting transport as a defense against monopoly is no longer warranted and should be abandoned.” It called at- tention to an average expenditure of | about $100,000,000 annually on inland waterways in the last few years, and found “no commensurate economic benefits.” The report, issued Tuesday night, was signed by Bernard M. Baruch, who succeeded the late Calvin Cool- idge as chairman; by Clark Howelli and Alexander Legge. Alfred E. Smith, while stating that he was in substantial agreement with not sign it. He issued a supplemen- tary memorandum, piscine the em- phasis where I longs.” Smith expressed himself vigorously on consolidation, saying, “I am con- consolidation and reorganization reduce costs and rates and write off losses.” As emergency measures, both the bankruptcy lure to facilitate re- organizations, although Smith would limit this procedure to the period of emergency. Both also agreed the re- ey JAPS EXPECTED 10 QUIT WORLD LEAGUE WITHIN NEXT MONTH Stock Exchanges Close in Nip- pon As Crisis Brings Sharp Slump in Prices Tokyo, Feb. 15.—(7)—Japan served jmotice Wednesday that it has ceased (negotiations with the League of Na- tions in the Manchurian dispute but. its anticipated withdrawal from league membership was not expected for about a month. The Tokyd ‘stock exchange ‘closed at noon and those of Osaka and Nagoya also were shut down ow- ing to a severe slump in prices caused by indications of increasing anti- Japanese sentiment at Geneva. It was learned on high authority that the government feels withdrawal from the league would be the turning point in the empire's history. Before the ultimate decision is made, the ‘council of elders, the nation’s highest distinguished personages, the heads of branches of the imperial family, and all living ex-premiers will be sum- moned for consultation. Yosuke Matsuoka, who has been Ja- pan’s special counsel during the long debate over Manchuria before the league, cabled the foreign office Wed- nesday requesting permission to leave Geneva soon and to return by way of the United States. The foreign office said he would be granted this request as soon as the league assembly disposes of the Man- churian question, whica was expected Paar nee enn cal the a 16 Are Convicted in Montana Stock Fraud Helena, Mont., Feb. 15.—(P)—Six- teen men who engaged in a campaign for sale of stock of Nathaniel Bald- win Inc., @ radio manufacturing con- cern of Salt Lake City, Utah, were convicted of using the mails to de- fraud by a jury in federal court here Tuesday. Sentences of five years each in pri- son and @ joint fine of $20,000 were given by Judge George M. Bourquin to L. Stohl, former general manager of the Baldwin concern; E. H. Nath- an, sales manager for Intermountain H, Barnett, president of Inter-Moun- tain and Frank Keller, Jr., an officer of Baldwin. Judge Bourquin referred to the of-' tiong companies ficials of gt who directed the stock sal campaign as men “with the disposition of highway rob- bers and the courage of sneak thieves.” Steel Magazine Sees Definite Improvement ——— been New York, Feb, 15.—()—The most definite improvement in steel busi- ness, except of automobile require- ments, thus far this year was reported ” We covering wall journed until PROBE COMMITTEE IN OPEN STATEMENT’ Lawyer Says Capito! Commis- sioners Will Not Submit to Censorship EXECUTIVE SESSION HELD Neither Leading Members Nor Attorney Offer Comment on Accusation With a statement that they “are | convinced” a majority of the legisla-} tive investigating committee “are/| Prejudiced against them,” members sion through their counsel, Geo. W.' Thorp. Fargo, announced Wednesday they “do not propose” to submit ques- tions or a statement “to be censored and restricted” by the investigators. Thorp started to read the an- nouncement to the legislative com- mittee just as it was about to recess. Senator Chas. G. Bangert objected, saying the rules of the legislative group for conduct of the hearing re- quired submission of any statements or questions in writing. Thorp im- mediately handed members the state- ment. The committee then went into ex- ecutive session where they said they would consider Thorp's statement and whether Geo. L. Bangs and Fred L. Conklin, capitol commission mem- bers,, would be called to the stand. Bangs was served with a subpoena in the courtroom Wednesday morning by ©. T. Haakenson, sergeant-at- arms, The investigators were in session more than 40 minutes and when they came out they said they had ad- | Chairman Matthael, Sen. Bangert and the probers’ counsel, E. R. Sinkler, said they had no announcement to make, Thorp’s statement in behalf of the capitol commission addressed to the legislative committee, said: { “Messrs. Conklin and Bangs are here and continuously have been here to aid this committee and inform it, the ture and the state as to all details of the capitol project. | Says Tribunal Pre; “In every tribunal where facts are investigated, the parties have a right for themselves to determine without question whether or not the tribunal is prejudiced and to protect them- selves from such prejudice. These parties feel and are convinced that the majority of this committee are prejudiced against thenr and do not | Propose to submit suggested questions | or @ proposed offer in the nature of | il » implying as it does that the ma- ;Jority attitude is influenced by the rule of a political faction in a prior investigation 10 years past, and in Tevanie toe. the actions .of much :tac- ‘Messrs. Conklin and Bangs, if per- mitted, will involve, explain and dis- pute every adverse inference in this record. To our mind your rules are not only unfair but impossible. Bangs and tion of unjust and re- buttable inferences. commission. “No evidence has been direct or in the part of the commission, either |ing cross-examina‘ House 57 to BANKS IN MICHIGAN TO MAKE AVAILABLE PART OF DEPOSITS Action Would Alleviate Situa- tion Created By Eight-Day Suspension Detroit, Feb. 15.—(7)—Going into the second day of the extraordinary bank holiday proclaimed Tuesday by Governor William A, Comstock, Mich- igan’s 900,000 bank depositors were en- couraged Wednesday by promises that, part of their balances would become available by Thursday. The Federal Reserve bank of De- troit, which remains open, is receiving millions of dollars that are being Poured in from branches of the fed- eral reserve system in Chicago and New York. Forty million dollars was on hand Wednesday and the Detroit Clearing House association arranged to make $25,000,000 available to depositors Thursday. That will permit custom- ers to withdraw not in excess of 5 per cent of their balances for emergency Purposes before the end of the eight- day holiday. It seemed a certainty that some such plan would be put into effect for the remainder of the state, although it was not determined whether it would be by gubernatorial proclama- tion or by voluntary action on the Part of the banks. In a series of conferences Tuesday night, representative bankers urged upon Governor Comstock the issuance of a supplemental proclamation au-- thorizing emergency withdrawals up to 10 per cent of balances. The governor, however, urged vol- untary action. He said that “while my proclamation declaring a bank holiday was mandatory, it is not my disposition to prohibit any bank from making a sensible arrangement to permit withdrawals to meet family necessities or to allow the cashing of pay checks, and I believe many will do this.” Depositors whose $1,500,000,000 in bank balances were tied up, accepted the situation philosophically. Confi- dence was expressed that the eight-day respite would permit a sound adjust- ment of the Union Guardian Trust company's financial difficulties. These precipitated the drastic action. RECALL PETITIONS FILED AT GRAFTON | Trouble Over City’s Water and Light Plant to Be Settled At Election Grafton, N. D., Feb. 15.—(#)—Recall Petitions against Mayor Henry L. Sieg and three incumbent aldermen were filed with ‘City Auditor L. Mauritson late Tuesday, as Grafton’s political squabble over the management of the city’s water and light plant reached oft} climax, The recall petitions named the fol- lowing as candidates: Paul Anderson for mayor against Sieg; W. H. Williams tor alderman in the first ward against Frank Votova; John I. Quist for alderman in the third ward against Hugo J. Kutz, and Charles Adamson for alderman in the fourth ward against 8. 8. Westgate. Because it is expected that the re- teall will be held in conjunction with the regular city election April 3, pro- ceedings against two other incumbent aldermen, Hans Hanson and G. W. McIntyre, Jr., were dropped as their terms expire at that‘time. Candidates will be placed in the field against them by the recall faciion. Thirty per cent of the vote cast at the last election was the number of signatures required on the petitions, and this total was exceeded in all cases, In a statement the recall candidates scored the mayor and the majority council faction for Pig ard violat~ the principles good manage- ment” in handling the affairs of the g i , in Hell water and light plant. | Customs Inspector M’Kinnon Appointed Highway Chieftain raser Case Set for Marc Prohibition Repeal Passes ‘ Rap Railroad Managers in Report ATTORNEY ATTACKS 95 Present Road Head to Be Kept on Job ‘Until Thorough Study Can Be Made’ | ORDERS WORK FOR POOR| Road Department Is Directed to Have Idle Men Remove | Snow By Hand A. D. McKinnon, chief highway commissioner, will serve temporarily as the “one-man” highway commis- sioner created under a bill enacted in- to law Tuesday, Governor William Langer announced Wednesday. McKinnon will remain as the road Gepartment head until a thorough study can be made of the present sit- uation, Langer said. The governor declared he had called McKinnon into conference and had instructed the commissioner to put every able-bodied man who is on the Poor relief list in every county in the State to work on, highways, removing snow by hand. Highway officials es- timated that approximately 5,000 men. would be put to work at once under this plan. Langer said telegrams have been sent to officials of the larger cities, advising them that the diivsion engi- neer would communicate with them to obtain the list of poor and needy men of the community and that those men should be given work. State funds can be used only on state and federal highways, and it was suggested to the mayors of the larger cities that they use city funds to employ men to relieve the condition h 6 FORMER LEADER OF NATIONAL GUARD T0 FIGHT ACCUSATION Held Under $500 Bonds’ on Each of Two Complaints Following Arraignment SAYS STATE LOST NOTHING Attorney Expects to Prove That Charges Are ‘Matter of Bookkeeping’ G. Angus Fraser, adjutant general of North Dakota for 16 years until his retirement a month ago, will have @ preliminary hearing at 11 a. m, March 6 on charges of obtaining prop- erty and money from the state under false pretenses. The time for the hearing was set Wednesday forenoon when Fraser made his appearance before Edward 8. Allen, Bismarck police magistrate, in company with his attorney, James M. Hanley, of the Sullivan, Hanley and Sullivan legal firm of Mandan. The former National Guard head was liberated under $500 bonds for each of the two complaints against him pending his appearance March 6. Surety bonds were presented to the court and approved by the prosecu- tion. It was explained the bonds were “continuing” and would serve until Fraser's appearance in district court, in case the former adjutant general is bound over to the higher court. In a statement issued following the hearing, Hanley said the defense ex- pects to prove that orth Dakota has not lost one cent” in the Fraser transactions, adding that the charges “grow out of a system of bookkeep- ing only.” Came Here Voluntarily Learning from a newspaper story that warrants for his arrest had been of some of the poor. Discussing plans for poor relief, the | governor called attention that the/ northwestern part of the state has; been receiving funds from the Recon- | struction Finance Corporation and | that the county auditors have been) notified to send a list of the unem-/| of the highway department. ALLOTMENT BILLIS GIVEN 10 SENATE IN REVISED FORM! Applies Only to Wheat and Cot-' ton; Acreage Reduction Is | Stricken Out | | gen \ Washington, Feb. 15.—()—The do- mestic allotment farm relief plan was favormly reported to the senate Wed- nesday by its agriculture committee after more than a month of hearings and discussion. As reported, the bill contained ma- jor alterations from the form in which it passed the house. It was confined to wheat and cotton, while/ provisions for acreage control and for defining pre-war parity between agri- cultural and commercial commodities were stricken out. The committee approved the revis- ed bill by a vote of 11 to 4. Senator Bankhead (Dem., Ala.), af-| ter considerable discussion, withdrew an amendment proposing to substitute for the allotment provisions respect- ing cotton a plan whereby cotton pro- duction would be restricted to a stat- ed amount each year. The committee eliminated five of the seven commodities contained in the bill passed by the house. These re hogs, tobacco, rice, peanuts and dairy products. Most senators said privately the bill had no chance for enactment this session as a Hoover veto is considered virtually certain and the measure is regarded as too controversial to be decided in the short time remaining. It provides in general for a process- ing tax on the miller of wheat and the spinner or other purchasers of cotton. ‘Out of this money the farmer would be paid an amount sufficient to bring the price he receives up to the 1909- 1914 average price of the commodity. This benefit would be paid only on the amount of his production which goes into domestic consumption. ‘The acreage coptrol features strick- en out have been described by farm organization leaders as the heart of the bill. i ‘They contended that to increase the price without requiring decreased pro- @uction would but aggravate the sur- ployed to the nearest division office |} issued here, Fraser Tuesday afternoon boarded a train at Fargo and came to Bismarck to face the charges volun- tarily. Upon his arrival here he communi- cated with his attorney, who made arrangements for the appearance at 0 a.m. The appearance later was arrangement Fraser visited Sheriff Joseph L. Kelley shortly be-~ fore the hearing and the warrants were served on him at that time. Fraser is charged with obtaining under false pretenses $192 for twc weekly pay rolls at Camp Grafton at Devils Lake in 1932 and with felon- fously obtaining $198.73 in expenses for a trip which he took to Chicago and Baton Rouge, La., in 1931 as a member of the state capitol building | commission. Fraser arrived at the court Wed- nesday morning in company with Sheriff Kelley and Hanley. Waiting for him was Attorney General A. J. Gronna, Jr., at whose instigation the warrants were issued, who handled the prosecution details since State's Attorney George S. Register did not appear because of illness. The only other persons in the court room were Magistrate Allen, State Representative Arnold E. Sandlie, Grand Forks; Ronald N. Davies, Grand Forks police magistrate and newly-appointed member of the state pardon board; A. B. Carley, Bismarck man, and a newspaper reporter. Asks Date for Hearing Hanley began the im- mediately, telling the court that he desired a date for a preliminary hearing be set. He added that it had not yet been decided whether the defendant would waive or face pre- liminary hearing, but that he prob- ably would ask for a hearing. Referring to the amount of bonds to be recommended, Hanley said the defendant “has been a resident of the state many years, has served it well, and has no intention of not fac- ing these charges in the proper courts.” He declared that the charges do not necessarily call for the imprison- ment of his client should he be found from a fine of $1 to imprisonment. In view of Fraser's long residence, and record and the nature of the case, Hanley said, bond should not be set too high. He said the defendant has no rea- son to believe that future charges are to be placed against him and for that reason preferred to post bond on each charge rather than a to cover “any future charges such as in a recent case.” He | Course in Art| |pius proviem. | Takes Plus problem. ssustment” pay- New York, Feb. 15.—()—After | ment under the house bill a farmer first having been adjudged “ob- | would have had to reduce his acreage scene” and detained four days at {20 per cent below the previous year. the New York customs house, a The provisions have been at series of photographs of Michel jon the ground they would require a 's famous frescoes on large federal police force to check up ceiling of the Pope's Sistine chap- | on acreage cuts. el in the Vatican, have been re- Chairman McNary said he had rec- leased. They were consigned to® | ommended that the acreage control local book importer from abroad. section be eliminated because of the difficult lorcing acreage id SHARKEY IS GRIEF STRICKEN | tions. ad New York, Feb. 15—(#)—His face Mined with marks of grief over the DENIES NEW ALLIANCE death of his boxing protege, Jack! Rome, Feb. 15.—(?)—1 Sharkey, world Tasrrmpies ger solini, speaking to the ee ae pion, Wednesday rough New| ministers, denied Tuesday ‘York en routé to Boston and the fu-|before the French chamber of depu- neral of Ernie Schaaf. ties committee on foreign affairs that “All I can see roth of ie le: the | CA. tet cae fees eee er: oe shadow of Ernie,” Sharkey said. many and Hungary. a