The Bismarck Tribune Newspaper, September 13, 1933, Page 2

2 |” SIX PLEAD GUILTY T0 INDICTMENTS IN -PARGO U. §. COURT’ Postmaster Admits Embezzle- ment Mike Guon of Man- dan Denies Guilt Fargo, N. D., Sept. 13.—(4)—Eight men indicted by a federal grand jury which reported Tuesday after being in session a week were arraigned be- fore Judge Andrew Miller in federal court, Ole T. Nelson, former Stanley, N. D., postmaster, who was arrested in Washington, D. C., and returned to Fargo after he had admitted short- ages in his postal accounts, pleaded guilty to embezzling $7,520.76 from the postal savings account. He will be sentenced later. Louis A. Martineau, charged with illegally entering the United States after having been deported, was sen- tenced to two years at Leavenworth after he pleaded guilty. He has been deported several times. James J. Schultz and Robert L. Utley, transients, admitted having counterfeit coins with intent to pass them. They were to be sentenced ‘Wednesday. Both were arrested at the fair grounds in Fargo. McLeon drew a 90-day jail sentence for illegally entering the United States and Phillip Mann drew 10-day term on a similar charge. Mann has served 70 days awaiting trial. Mike Guan, Mandan, Lin He ity to conspiracy to violate read laws and was released on bond pending trial. He is alleged to have been the owner of an automobile load of alcohol seized in Fargo last week. He also is at liberty under bond in Cass county district court on a liquor charge in connection with the same case. George (Goldie) Nolan was re-in- @icted on a charge of first-degree murder in connection with the slay- ing in 1924 of Charles Sneesby, Dev- ils Lake night patrolman, during an ‘attempted robbery of the Devils Lake fice. Nolan was indicted in 1929 for the crime but the charge was @ismissed at the last term of federal court in Fargo. At that time he was ordered held until the next grand ‘The grand jury session was one of the longest in several years. ——* Weather Report FORECAST For Bismarck and vicinity: Partly cloudy tonight and Thursday; not much change in temperature. For N = kota: Partly cloudy tonight and lay; on For South Da- d kota: Generally iu fair tonight and Thursday; not much change in temperature. For Montana: Fair tonight and Thursday; warm- er tonight ex- COOLER treme northeast portion. Minnesota: Mostly cloudy tonight and Thursday, s extreme east portion; change in temperature. Possibly showers in not much GENERAL CONDITIONS ‘The barometric pressure is low over the southern and far western districts (Kamloops 29.78) while a high pres- sure area extends from northern Manitoba southeastward to the up- x Great Lakes region (The Toso. Precipitation occurred in the lower Missouri Valley, southern and central Plains States and at scatter- ed places in the surrounding dis- tricts. Temperatures are above the seasonal normal in the south-cen- tral states; elsewhere temperatures are moderate. North Dakota Corn and Wheat Region Summary For the week ending Sept. 12, 1933 ‘Unseasonably high temperatures railed generally. Threshing near- Fig eompiction ‘with continued light Potato harvesting general th ground mostly too dry for this activity and fall plowing, except ex- treme east portion where showers im- proved conditions. Pastures: and f need rain badly. uri River stage at 7 a. m. 0.5 ' ft. 24 hour change, -0.2 ft. ; Bismarck station barometer, inches: E 2838. Reduced to sea level, 30.15. PRECIPITATION REPORT Total this month to date ...... ‘Normal, this month to date 0. ‘Total, January ist to date . 8. Normal, January ist to date ... 13 Accumulated deficiency to date 4. DAKOTA POINTS NORTH ‘Highs Low- est est Pct. 0. 8 .09 62. .9' 65. 68 \|Facts on “Insolvent Bank Issue hoody ag se ee May Be Sainted THRE ARE QUESTIONS, ANSWERS, || Compare Present, Proposed Plans = will vote Sept. 22? ‘What is the bill relating to insolvent banks upon which the people It is an effort to take administration of their affairs out of the hands @f the present receiver and place them under the state bank examiner and/or receivers to be appointed by the district courts, What are the claims made for the bill? it to distribute. Who are the people making this claim? with him in the control of insolvent bank affairs, Does everyone agree with their statements? ing to closed banks. Is this question a new one? failures began in this state shortly after the war. firat became numerous? Re this system work out to advantage? 0. the wall and fortunes were made by men who organized groups to buy bank assets. Why did not these banks pay out more? Those supporting it assert it will get the depositors their money quicker than is the case under the present management and there will be more of Governor William Langer and the men who probably will be associated By no means. Those now administering this business declare the pro- posed system would cost the depositors many times more, would result in reduced dividends to depositors, work a hardship upon the people who owe money to insolvent banks and pave the way for a looting of assets remain- No, it has been more or less of a problem ever since the wholesale bank How were the affairs of closed banks administered when these failures By individual receivers apointed by the state banking board and/or dis- trict courts of the counties in which the banks were located. Depositors received little or nothing, borrowers were pressed to companies or Declining farm prices and adverse conditions hampered collections of sums due them. The costs of administration were high and frequently ate up all the money collected. Were there any other complaints about the system in effect at that time? Yes. An officer of the closed bank frequently was named as receiver. Frequently no efforts were made to collect from stockholders on their lia- bility and favoritism was charged in making adjustments on amounts due the bank, What was done to correct this condition? . The legislative session of 1923 passed the law under which the affairs of closed banks now are handled. What does this law provide? It places control of closed banks in the hands of the court, provides for a single district court judge to manage state supreme the affairs of closed banks and centralizes responsibility for closed bank administration. Is any other provision now made for different system of liquidating the affairs of closed banks? Yes. A majority of the depositors may vote to take over the affairs of a closed bank. In such cases a receiver chosen by them is appointed by the district court of the county in which the bank was located and the state receiver has nothing to do with its affairs, Are any bank receivers now working under this section of the present law? Yes. Affairs of 18 closed banks are being managed by this method, all of them having been taken from the hands of the state receiver by vote of the depositors affected. Has this system proved satisfactory to all of the 18 banks which took such action? Apparently not. Eight of the banks whose affairs were taken over by depositors have subsequently asked that their affairs be restored to the hands of the state receiver. Has the receiver paid out any dividends on the banks under his charge? Yes. His records show payments of more than $11,000,000 to depositors in 279 closed state banks. Has all of this money gone to the:general depositor? No. Approximately $6,400,000 has been paid on claims held by the fed- eral government, school districts, cities, counties, etc. these being given preference under the law. paid to general depositors in closed banks, ‘i Does the réceiver have only 276 banks under his charge? In addition, approximately $4,701,406 has been No. The total number now is 338. It has been larger at times in the past but the affairs of some closed banks have been completely wound up. What of the 156 banks which have as yet paid no dividends to de- positors? American Nun Above is Mother Frances Xavier Cabrini, who died in 1917, and who may be the first American to be sainted by the Catholic church. Hearings on her life, now being held in Chi- cago, and rituals that are to fol- low will require several years before the matter is placed be- fore the pope. Born in Italy, Mother Frances was naturalized in the United States. C ONTINUE D from page one Opens Attack on Junior Solon in Address at Oakes entire taxes collected can be used for the support of the educational system of the state. Through this tax the common school will be preserved and through the un- impaired credit of the state the. Bank of North Dakota may be able to meet the payrolls of higher institutions of learning. In conclusion the governor assert- ed: “I earnestly hope to continue our educational system intact and with your help I can do so. I appeal to you for that help now. This ques- tion is not a political one but trans- cends party and factional lines. Those! who fill our offices come and go with the ebb and flow of the tide of public opinion, but our state and its educa- let after Sept. 8 come under a new ruling. Strictly local skilled and un- re tr ADDRESS AT WISHEK Wishek, N. D., Sept. 18.—Address- "DEDERIC Dee A Frederick-James fox dh'the ground that he is the first Coat Today Is a North Dakota has Marvelous Investment in Satisfaction and his election. Condemning the sales tax attitude of Senator Gerald P. Nye and the Farmers Union, Langer concentrated his fire on C. C. Talbott, Farmers Union president. During the last legislative session, he sald, Talbott and Usher L. Bur- dick, attorney for the Farmers Union, were called into conference and the only suggestion Talbott had to offer as a cure for state finances was that they take away the gasoline tax re- fund from the farmers. The Farmers Union, he said, did not help them and has nothing to offer now. The Ellendale normal school and Wahpeton School of Science have borrowed money from the Bank of North Dakota to maintain themselves, he said, but will be unable to do so again unless the sales tax passes. Neither, he said, will the state uni- versity and agricultural college be able to borrow money. The insurance companies, he assert- ed, are opposed to the sales tax, ‘The organization opposing the sales tax has made much of the fact that millions of acres have been foreclosed upon by insurance companies and that this land will be relieved of a part of the taxes now imposed upon it if the sales tax passes. Sponsors of the fair, which includes exhibits from McIntosh, Logan and ‘most successful on record with more exhibits of livestock than at any pre- vious fair. STEAL $100,000 DIAMOND London, Sept. 13.—()—A rare Brazilian diamond known as the lar Star and valued at $100,000 stolen Wednesday from a shop in ‘Miss America of 1933” at the Atlantic City Beauty pageant. CHANGE SHIRT ATTITUDE Hugo, Okla., Sept. 13.—(7)—In its zeal to keep its shirt on, this town went @ bit too far, officials conceded ‘Wednesday. amend a new city ordinance which decrees that “every person” over 12 years of age “must at all times have on a shirt.” Citizens pointed out that to obey the letter of the law, men and women alike must bathe, sleep and AUTOMOBILES COLLIDE An automobile collision on Ninth St, near Avenue B Tuesday noon re- sulted in damage to two cars driven oy Garvin Aune and Norman Nelson Neither driver was hurt. sonal Appearance ‘Frederick-James brings to the Northwest’.the 1933 fur —and—on this steadily rising fur market we cannot—posi- tively cannot—replace your selection to sell again at the price you'd ‘pay. YOUR SAVING. 25% to 40% Lay-bys and convenient terms may be arranged “t styles of New York and Paris. SESATASSSSSSISSETSSSS BB BS BBeBSSEEREBELSSESERE8 SOUTH DAKOTA POINTS Huron, clear .... 70 523 Rapid City, clear MINNESOTA POINT! ‘Ss Minneapolis, cid; 66 *58 Moorhead, cldy F STATE POINTS OUT OF STA’ 3 +4 eeuseccagssaoetcesescesss seneuensenacssaacsazncesets Sassesrasbesbessssesassss: The receiver estimates that 137 of these will pay dividends if their affairs are managed properly. that they never will pay. Nineteen never have paid and he estimates) tuiy informed as to what this mea-|in the most ot s series of] 190 LATE TO CLASSIFY ~ sure means to you, I am sure you will|recent daylight “smash and grab”) ——©—_ <= Have conditions been favorable to the payment of dividends by closed assume the great’ responsibility that| raids, The California Wave Nook, 103 Third banks? No. The same conditions which caused the banks to close have handi- capped the liquidation of their affairs. What are these conditions? Low farm prices and consequent inability of borrowers to pay back amounts obtained from the banks when they were open. Is the borrower affected by the management of closed banks? Yes. He and the depositor are major parties at interest but on differ- ent. sides of the fence. Harsh and dictatorial efforts to collect from him may drive him out of business, remove the possibility of paying out on the amount he owes. In some cases depositors also were borrowers. ‘What has been the policy of the present receiver with regard to col- lecting from borrowers? His attitude has been to collect the money due if possible. Where this has been apparently impossible adjustments have been made. ‘ i Have any claims held by closed banks been compromised? : Yes. In many cases borrowers have been discharged from lability upon Pas! payment of amounts less than that listed as due. Has this been fair to the depositors? Such settlements usually have produced more than if the property were foreclosed and sold at forced sale. permitted to remain on his farm or in business and to continue contribut- ing his share toward the general welfare of the state and community. Has this attitude prevailed in the management of banks by individual Yes. receivers? Not always. Im many cases collateral held by banks has been lumped off to the highest bidder, usually at tremendous discounts. The purchasers then have foreclosed on the property mortgaged as security, obtaining pos- session for far less than the actual value. been injury to both the depositor and borrower; benefit only to the person or firm which bought the collateral security. Are there any pertinent illustrations as to how this manner of closing out the affairs of insolvent banks or other busineises have operated? Yes, Probably the most famous is the case of the Equity Packing com- pany, which was organized at Fargo by North Dakota farmers. ‘What happened in the Equity Packing company case? The receiver took over notes given by farmers in exchange for the com- pany’s stock. These notes were sold by him to speculators at a tremendous discount. The speculators then instituted suite to collect on the notes, ob- tained many times the amount paid to the receiver for them. Who profited by this deal? ‘The speculators who bought the farmers’ notes. Who lost by it? The farmers who were sued on their notes and the creditors of the packing company, who got much less for them than the farmers paid. Is there any possibility of this experience being repeated if the present 2 Yes. ‘The proposed law specifically permits the disposition of bank assets in the same manner as the packing company’s assets and some of the men who participated inf that deal were active lobbyists for the law measure now before the people. Sheridan, Wyo. clear . 76 40 .00 Sioux City, cldy. .. 62 58 .20 8 ¥ cl - 78 48 00 Swift Surrent, a Pas, 56 4008. 54.00 52.00 54 00 ARE REGISTERING FELONS Los Angeles, Sept. 13.—()—Regis- tration of convicted felons in Los An- geles county went into effect Wed- nesday. Every resident convicted of ® felony within the last 10 years— ardiess of where convicted—must ordinance, am emergency measure, would drive from Los Angeles 95 per cent of ex-convicts here from other states. Failure to register means a ale sine or six months imprisonment or ; TRUCK MISHAP FATAL a a heart of the diamond trade i tional system go on forever. When lizes in com- is yours.” Street, svoruiccaiumaion foomerai ing] Chicago, Sept 13 -0-Delegates to| nd. $6.00 complete, "Our patrons fogel talked on matters concerning }, Sept. eat r “ his office as state highway commis- send their friends. Phone 762. sioner, States Building and Loan League were| REAL STEAM- ‘line Perma- He explained briefly the measuret|told Wednesday by H. F. Cellarius,} nents. No electricity, no kinks; to be voted on at the special election |secretary-treasurer of the association,| comes down dripping wet; done 2 Sept. 22, and urged passage of the |that their organizations had extended| hours. $3.50 until NRA agreement sales tax. $530,000,000 of credit to American} requires raise. Get yours before Vogel said that all road contracts | home owners during 1932. the raise. Harrington's. Phone 130. G In addition the borrower has been The result, in such cases, has were sold, Wage Scales Set by Public Works Board Devils Lake, N. Ds Sept. 13.—(P)— In a statement Tuesday, the state public works board made clear the Policies covering wages to be paid on public works projects in North Da- kota under its program as laid down by the national public works adminis- tration. The minimum wage for unskilled labor is 50 cents an hour for a week of 30°hours, or $15 a week. ‘The minimum wage for skilled Ia- bor is $1.20 an hour for a week of 30 labor, which lor various crafts, ‘ and all men in the classification be- Bs == Chesterfield A public works administration bul- letin states the rates for semi-skilled the cigarette that's MILDER , the cigarette that TASTES BETTER x have & hearing on 8 project - © 1999, Leseare & Mvnss Tosuceo C0. ' : .