The Bismarck Tribune Newspaper, September 6, 1933, Page 2

THE BISMARCK TRIBUNE, WEDNESDAY, SEPTEMBER 6, 1938 SAYS GUARANTY OF DEPOSITS IS BUILT UPON OLD MISTAKES Will Have ‘Questionable’ Value, President Tells Bankers Association Chicago, Sept. 6.—(P)—Five thou- sand bankers from over the nation were told Tuesday by Francis H. Sis- son, president of the American Bank- ers association, that the deposit guar- anty made by congress this year would be of “questionable” value. “The present law largely repeats the old mistakes on a bigger scale,” Sis- son said in speaking of the banking act of 1933, of which the deposit guar- anty is a part. The act guarantees deposits up to $2,500. “Guaranty of deposits plans have proved failures wherever tried in many Previous tests,” Sisson said, “invaria- bly causing weaker rather than stronger banking and have been aban- doned in every case by sadder and wiser states that embraced them for @ time.” He also criticized the act for call- ing upon the banks to give up invest- ment activities and for giving the fed- eral reserve board at Washington— which he termed “politically appoint- ed”—the power to control credit oper- ations of member banks. Jesse H. Jones, chairman of the Reconstruction Finance corporation, called upon the bankers to cooperate whole-heartedly with President Roosevelt's recovery program by “pro- viding credit to accommodate agricul- ture, commerce, and industry based upon a going country.” Eugene R. Black, governor of the federal reserve board, told the bankers they had reached a position where complete return to normalcy lay straight ahead. He declared the ad- ministration had kept faith with the public by reopening sound banks, re- organizing others, and reforming banking and federal reserve policies. CONTINUED from page one Labor Body Lists Eight Objections To N. D. Sales Tax such as townships, villages, cities, schools and counties, none of which will be repiaced or supplanted by this Jaw, and “Whereas, the condition of the gen- eral treasury of the state will not be bettered because none of this revenue ‘will go to the general fund from which the expense of all state officers, de- partments and all of the state insti- tutions is drawn, and “Whereas, the portion set aside for the maintenance of schools is so small that it is not adequate to open the schools that are in distress nor to ma- terially assist-those that will not have finances enough to continue their operation throughout the entire school year, and Will Increase Unemployment “Whereas, it will increase unem- Ployment due to the fact that it will drive a large number of employing and taxpaying institutions out of the State because of the advantage given mail order houses and other out-of- state merchants who will be able to Sell for 2 per cent less, and “Whereas, it favors the non-resi- dent by reducing his taxes at the ex- pense of the resident taxpayer and it reverses the principle of the income tax by commanding the larger pro- Portionate tax from the smaller in- come, and “Whereas, by the provisions of this act the state tax commissioner is giv- en unlimited power with the privilege of appointing any number of em- Ployees and drawing any amount for the expense of administering the act, all of such expense to be paid before any moneys are credited to the state treasury, and “Whereas, an investigation into the financial condition of the state dis- closes that this tax as applied is not Justified as a measure to protect or restore the financlal credit of the state, “Now therefore, be it resolved, by the North Dakota Federation of La- bor in convention assembled in the city of Grand Forks on the 3rd day of September 1933, that it does hereby declare itself as decidedly and unal- terably opposed to the approval of the state emergency replacement act, otherwise known as the sales tax, as embodied in senate bill 325 passed by the 23rd legislative assembly of the state of North Dakota, because it is an added tax that is designed to shift the burden of taxation upon the peo- Ple that are least able to pay, and “Be it further resolved, that this organization does hereby condemn and oppose this legislation because it is destructive to the state and because it is gravely unjust and un-American in spirit.” Winnipeg Gains Full Game on Brandon Nine St. Paul, Sept. 6.—(P)—Needing only one more victory to cinch the gecond half title of the Northern League, Brandon was at Crookston ‘Wednesday seeking the needed tri- umph to place it in the playoff se- ties with the Superior Blues. Winnipeg gained a full game on the Grays Tuesday night when Frankie Piet polled out a pair of homeruns to in a 4-to-3 triumph in seven other games also were halted to East innings Hy E SF fi Pita : Troops Disperse Mine Pickets Arrival of New Mexico national guardsmen was the signal for a picket ring about the Gamerco Mine at Gallup, N. M., to dissolve without violence. Pickets had kept the mine closed for three days. Troop A, 111th cavalry, N. M. N. G., fs shown swinging up to the mine entrance as dismounted cavalry. Here Are a Lot of Pertinent Facts eee ** % * * # ee QUESTIONS AND ANSWERS ee & * * ee * **# & On the Sales Tax and the Consumer What is the sales tax? The sales tax is a levy by the state services within North Dakota. Who pays the sales tax? The sales tax is paid to the state by the person selling the goods or services, He, in turn, collects from the purchaser. Everyone who consumes goods and taxable services pays the tax indirectly. Are any sales of goods or services exempt from the tax? Yes, Sales by a farmer of his own produce are exempt from tax. Services rendered by banks to their customers are exempt from tax. a what extent does the proposed law exempt farm products from the tax Only on the original sale by the farmer. sold a tax must be paid on that sale. Will this condition affect the price of farm Products? It probably will cause lower prices for many farm Products since North Dakota farm products are in competition with those from other states. How will this condition lower farm prices? The consumer will buy where he can get materials cheapest and will refuse to pay more for a North Dakota product than for one from Min- nesota or South Dakota, hence the sales tax will not be borne by him. government upon sales of goods or Unless it is absorbed by the middleman it will be Passed back to the farmer. | N; Are any firms dealing in agricultural products favored by the act? Yes. Out-of-state firms manufacturing food products are given an ad- vantage under the act. How can this be so? Livestock offers a good example. buyer the sale is exempt from tax. If the livestock buyer sells the hogs at South St. Paul or any other out-of-state Point the sale is again exempt. But if he sells the hogs to the packing plant at Fargo or Grand Forks the sale is taxable. Why are not sales to out-of-state firms taxable? Because sales are legally held to take place where the goods are de- livered; also because the siate cannot impose taxes on articles in interstate commerce. How does this affect farm sales of grain? Sales by farmers to the elevators are exempt. Sales by the elevator are exempt if the grain is for delivery out of the state. If the grain is resold to a North Dakota mill, however, the sale is taxable. Is this true of all mills in North Dakota? No. The state mill at Grand Forks Paying any sales tax, Are any articles other than farm products exempted from tax? No, Every article sold in North Dakota, whether by the manufacturer, wholesaler or retailer, is taxed. Are such necessities as food, clothing, dry goods, shoes, etc., taxed? Yes. a ie any classes of business given preference by the proposed sales tax Ww Yes. Different rates of taxation for different industries are provided in fhe act itself, manufacturers and wholesalers taking a lower rate than retailers, Will the sales tax result in any other discriminations as between busi- ness firms? Yes. Out-of-state firms selling goods in North Dakota will have a Preference since they will not have to pay the tax. How is this situation brought about? By the fact that the state cannot tax interstate commerce, according to the view of most lawyers. This is the tentative opinion of Tax Com- missioner J. J. Weeks, himself a lawyer, who will be charged with admin- istering the act. Will this situation affect anyone other than North Dakota merchants competing with outside firms? Yes. It would affect collections of reduce the taxable valuations of North ducing their earning power. Would any particular sections than others by the sales tax law? Yes. Border cities would be more seriously affected, since* purchasers would be able to buy cheaper in border towns of neighboring states. Fargo and Moorhead and Grand Forks and East Grand Forks offer the best ex- pulse of this situation. Sales by mail-order houses also would be exempt rom tax. Are any preferences contained in the sales tax bill as between indi- viduals? No, not directly. Are there any indirect preferences as between individuals? Yes. There are several indirect preferences, What are some of them? The wealthy man who buys a certain proportion of his needs for goods while on trips outside the state would pay no tax on such purchases, Persons with families, because they must of necessity buy more, would Pay more than childless couples or unmarried persons. The bigger the fam- ily the larger the tax which must be paid by it. Are there any discriminations between persons in the same or allied lines of business? None are contained in the bill but some are inevitable under . How can this be illustrated? eee By @ comparison of the sales taxes on coal and gas. Both coal and Lind the North Dakota income tax and Dakota business properties by re- of the state be more seriously affected firms sell heat in different form. The coal mine pays one per cent and | the retail dealer two per cent, a total of three t sales take a straight two per cent. iia In selling to the small consumer, gas gets a preference. In selling to the big consumer, who buys coal in carload lots direct from ere an g in the act which keeps the merchant from passing the sales tax on to the consumer, No. Merchants would be permitted to list the cost of the article, tax, as is done with gasoline, but Tax Commissioner Weeks says tse peek ably will hold this is not necessary for the merchant to pass the tex on to the consumer. If he wishes, the merchant ma; Jump the sales tax with other items of overhead and fix hils prices socontinely, = though Everson came dangerously | Anton Tanberg and Rev. G. H. Pla- 1 up on the eighth. The match was mann of Di butting for birdies on the last four etieod tea sae nace for ahalt. | Minot Horse Winner and hed ii Sarazen had 36-42—78, Lutheran Meeting Is Planned at Dickinson | —P)—Oc- lor the Luth- eran mass meeting to be held at the Taylor auditorium, it was announced Tuesday. event of the jesday. NO fertilizer has ever | noon at Hebron. been used on the plot. When the products are re- | De' If a farmer sells hogs to a livestock Wi is specifically exempted from Calgary, St. Paul, Sept. Sian yp iliged gelding owned by Smith and of Minot, N. D., and driven by Walter Kriese, won the 2:14 pace, feature harness race Decerare, at the Minnesota State Fair Weather Report FORECAST. For Bismarck and vicinity. Increas- ing cloudiness, followed by showers and cooler Thursday. , For North Da- kota: Ine: cloudiness, follow- ed by showers and cooler Thursday and extreme west Oe lay; cooler, rr jontana: Unsettled tonight and Thursday, ith occas wi showers; tonight southeast and extreme east : Slightly cloudy; cooler in south and extreme east portion to- night. Thursday unsettled followed by showers in west ion. Cooler in west and south tons. GENERAL CONDITIONS A low pressure area extends from) the upper Great Lakes region west- ward and southwestward to the Roc! Mountain states (Minneapolis 29.74) while a high presure area extends from Manitoba westward to Alberta (The Pas 30.24). General Wiggle tion occurred over the not Pacific {Coast, with light, scattered showers in all other northern districts. Te: mal in the Great Lakes and Mississ. ippi Valley, but cooler weather pre- es vails over the northwest. o North Dakets Cora and Wheat Region Summary. For the week ending Sept. 5, 1933 The weather for the week was characterized by temperatures con- siderably above the normal and with’ little or no precipitation. Thresl eee Sra Saved but wit generally poor yields. Much corn was shocked or cut for fodder. Potato digging is general with r results. following sisters and brothers: Edwin of Napoleon; Carl, Hebron; William and John of Eureka, 8. D.; Albert, Norman, Bowers, Leah and Clara of Golden Valley; Mrs. Fred Houff, Golden Valley; Mrs. Chester Lieder- Ground is mostl; for fall plowing or seeding and pastures and| bach, Freedom, N. ¥., and Matilda of Tanges are dry, rain being badly] Hebron. needed, Missouri River stage at 7 8. m., 2.5 ft, 24 hour change, -0.7 ft. 206, "Reduced to seu level 0h ped 16, luced to sea level, 20.92. . ry —— Five Families Flee ‘ATION REPORT PRECIPIT: . Total this month to date ...... 0001 Before Forest Fires Normal, this month to date .... 0.23 Total, anuary 1s to date.... 8.88 Normal, January Ist to date .. pi Accumulated deficiency to date. 4: NORTH DAKOTA POINTS High- Low- able, victims of the Cedar Bend swamp fire had to drive madly to Teach safety, said Willems. They waited until the last minute, he said, to exhaust every means in the futile Salt Lake City, U..pcldy 94 8. 8. Marie, Mich. rain 80 pede, Wash., cldy .. 60 ridan, Wyo., clear . 90 4 Sioux City, Ta., peldy .. 92 00 Spokane, Wash., rain . 78 00 Swift Current, 8., cldy . 62 02 The Pas, Man., cldy ... 60 J Toledo, Ohio, clear .... 86 Winnemucca, Nev., clear 88 Winni Peldy . 72 ipeg, Man., Designs Medal for Long’s Assailant —_———_—__-- + New York, Sept. 6.—()— The design for the medal to be given the man who took a poke at the the De Zayas, said Tuesday it would be struck in gold this week. To whom the medal will be given has not been determined, owing to the reluctance of the washroom foe of the senator to admit his part in the affair. “There are names under con- alderation,” the artist said. is Al Williams, other is the police chief of Port g f iH i 8 ‘Tues: aay " 1 services will be held at 3 o'clock Thursday after- Bhe leaves besides her parents the| in front of the White House on Per tag with it cement Storm Uproots Tree in Front ot White Housé NTINUE from page one’ D Secretary of Navy ‘Swanson to Cuba C ONTINVE Jf) jt to outine their poticies, to seek from one the return of order, to demand recog- jniton by other nations of the new ad- ministration, and to formulate plans for electing a constitutional assem- bly. A manifesto announced the revolu- tionary movement, comprising enlist- ed soldiers and sailors and civilans of varous factions, led by the students’ organization, will fight “for revolu- est est Pct. all e flames. tionary vindications” upon “pure prin- Bismarck, clear . 84 54.00 grey itieg aie their homes /|ciples of national sovereignty.” Beach, clear. : St $6 00) nad caught fire were Mr. and Mra.| These “vindlcations” were outlined 7 45 .00/Addler Carrier and four children; |in the proclamation as economic re- 84 48 .00|/Mr. and Mrs. Leon Wilsey and five | Construction, trial of “delinquents” of 86 50 .00| children; Mr. and Mrs. Gus Phillippe |the former government, recognition of 82 49 .00'and a family named Falstraft. national debts, formaton of adequate 82 47 00) Willems said the victims lost most | courts, of national ser- 85 50 Ol! of their belongings and that their/| vices for an early return to normalcy, ft 8) po |lvestock perished in the fire, Phil- |and measures for creating a new Cuba, 79 48 00|lippe, he said, had 200 tons of hay| ‘founded on the firm bases of law 84 55 00] burned. and the most modern concept of de- 82 49 00] Grover Conzet, state forester, who | mocracy.’ 7 46 .00/has been supervising the large force| In Havana Harbor was the U. 8. 90 50 00] of guards in the Warroad area, Wed-| destroyer McFarland, sent hurriedly 88 52 00 a tlers low | from Key West. The destroyer Sturte- 81 46 00] DeSday cautioned sett to Pl 71 50 109] @round their homes and to remove|Vant was at Santiago, where a mob 85 49 .00|nearby brush. He warned school bus|Killed four men, reputedly members 82 54 .00/ drivers to drive slowly on the smoke-| Of the strong arm squad of Gerardo 89 51 .00/shrouded woods roads and suggested | Machado, whose government fell Aug. light — that where possible settlers dam | 2 and gave way to the short-lived ad- SOUTH DAKOTA POINTS creeks or small streams to form a|Ministration of Dr. de Cespedes. See ree o +106 62 «00 po@l large enough to provide a place|_ Two other warships, the cruiser Rapid City, peldy ..... 96 64 .00 to flee should flames threaten, Richmond and the destroyer Bain- MINNESOTA POINTS Conzet pointed out that persons | bridge, were due Wednesday or Thurs- Minneapolis, peldy .... 94 70 00] fleeing fire should go into wells only |4@y from Amercan bases, also Moorhead, clear .. 84 56 .02/as a last resort, saying that deadly |the announced purpose of protecting +| gases collect in such places. American interests. OUT OF STATE poo = | An army top sergeant, who is igh- Low- e known as one of Cuba’s best court SOUSA’S DAUGHTER WEDS 7 Amarillo, Tex., clear BB oe Pe New York, Sept. 6.—(?)—Eilcen Stenographers, rege seal oe ise, Tdaho, Clear .... 90 64 .00/Sousa, daughter of the late John Yolced Fulgenclo Batista, became 38 04) Philip Sousa, composer and band di- |COmmander of the army and five civ- Ge So|fector was married Tuesday to Dan- |illans became the heads of the gov- 6 9 - Se eee of Helena, Mont., Cuba’s day-old government, con- 3 10 48 00 46 00 54.08 72° 00 Lai ‘Wyo., cl 88 54 «02 Medicine Hat, A. cldy . 60 44 00 Miles Hee Mont., clear 90 60 .00 Modena, Utah, clear .. 88 56 | No. Platte, Neb., ee dy . 94 64 00 Oklahoma City, O., clr. 90 74 00 Pr. Albert, Sask. cldy . 40 40 100 Qui , Sas. cldy .70 46 .00 Roseburg, » Clear .. 68 46 .10 St. Louis, Mo., clear ... 90 7. 60 52 50 2 54 40 38 68 48 52 ends “left over.” of Housekeeping Want-Ad will turn the trick. Just Phone Miss An idea of the severity of the gale that struck Washington may be had in this striking photo taken nosylvania Avenue after a huge oak tree had been uprooted, pull- it sidewalk blocks. Traffic was tied up for hours. Co Roosevelt Orders fronted with the possibility that the rank and file of the army to which it owes its life might get out of hand, attacked the problem of setting up the new state Wednesday by promis- ing full representation for every revo- qu faction, Although Havana was comparative- ly peaceful other parts of the island did not enjoy similar conditions. In Clenfuegos revolutionary dem- onstrators sacked hardware stores, stealing firearms. Trade was at & standstill. Army and navy detach- ments protected foreigners. American residents of the Isle of Pines sent a delegation to U. S. Am- Sumner Welles. The pur- pose of this action was not officially revealed, but it was reported the dele- gation asked that a destroyer be sent to the island, as they feared an up- rising among the 3,000 inmates of the one model prison there. oe 100 Others Injured In Catastrophe at Binghamton, N. Y. time I ever saw Number Eight being held up by a freight.” “I saw the brakeman (A. C. Morris of Hornell) and I asked him about the ‘stop. He muttered something and kept on going. Then I heard NUE He began running like direction of the milk waving his red lantern and 1 & white to watch, one. I got off the “I dian't: hear juealing cf " 1 any sq ef kes—you know they squeal lcs urder when a train is stopping and I said ‘he doesn’t see him.’ I bezaz to run as fast as I could away frum the track. The next thing I rev there was an awful crash, like + mountain falling down. I ran tacit Bg “What Shall I Do With These?” What Shall You Do With Them? eee ready cash instead up to the attic, tate 8: ‘At Phone 32 THE BISMARCK TRIBUNE WANT-ADS Came to Bismarck 50, Years Ago; Was Well Known in Music Circles Here Id Private funeral services will be he! at 2:30 o'clock Wednesday Ee from St. George's Episcopal church ed Mrs, Annie Price Barnes, 81, who 4 i at the family residence, 422 Fifth re Monday etsy Interment will Fairview cemetery. ie Barnes came to Bismarck in 1883 with her husband, F. V. Barnes. She returned to her former home in Scranton, Pa., in 1893 where she was musical supervisor of the public schools for 15 years. She returned to North Dakota in 1908 and lived with her son, Vaughan, at Expansion until 1919, when she returned to Bismarck, She resided here until her death. She taught music in Bismarck for several years, being an accomplished pianist and vocalist. She was one of the earliest mem- bers of St. George's Episcopal church jhere and took an active part in church work until forced to retire be- cause of ill health. She leaves three children, Mrs, I. P. Baker of San Diego, Calif, Mrs, George H. Russ, Fargo, and @ son, Vaughan Barnes of Garrison and Bis- marck, 11 grandchildren and 10 great-grandchildren. Re g Orphan Loses Out In Adoption Trial [Ses ele P BORE | New York, Sept, 6.—(P)—Peter Christopholis has gone back to an Omaha orphanage, his oppor- tunity for living the life of Reilly | toppled about his head. | _ Peter came east eight weeks ago “on trial.” Mr. and Mrs. Jean Strengs had seen his picture in a church magazine and, noting the Tesemblance to their son who drowned a year ago, they felt Peter might take their boy's Place. Tt didn’t work. He could not nr “ himself to the luxurious home. Flanagan, head of the 3} orphanage, came east last week | % learn if the rial adoption” | 3s to be madé permanent, In meantime the Strengs had the boy back to Omaha. i INSURANCE MEN ELECT , Sept. 6.(P)—R, J. Lile 41 was named president of Mozesota Association of Insure aut Ape: the annual convention Others elected include H. = of Crookston and J. Moorhead, named ree ts, ug Fatt and