The Bismarck Tribune Newspaper, September 21, 1933, Page 2

eco sown THE BISMARCK TRIBUNE, THURSDAY, SEPTEMBER 21, 1933 ” wa ses eee -* * ue es ee % see see Speech By C. C. TALBOTT on the solution of problems of Tonight I wish to address the voters |state finance. I have never shirked of North Dakota on some of the vital) or attempted to evade the responsi- issues confronting the people of this bility for my actions and at the same state. ‘time expect others who are associat- At the special election to be held ed with me in a political or business on the 22nd day of this month you | way to assume the credit or blame for ‘will be called upon to approve or dis- ' their own brain children. I have no approve the several measures which apologies for my action tn this matter. will appear upon the ballot. In my |I did what I sincerely felt was for opinion the most important of these the good of the state and what the and the most far-reaching in its pos- exigencies of the moment seemed to sibilities for evil is the sales tax bill| require, but I refuse to have the legis- passed by the last session of the leg-!lative proposals of another even islature and later referred by petition.|though he be a governor, palmed off ‘When this proposed method of tax-|on the public as coming from me. If ation first became an issue in North] there was merit in the governor's sug- Dakota I made a short and concise| gestions at the time they were made statement of the attitude of the;he is entitled to all of the credit; if Farmers Union towards the measure. |he now finds that the suggestions were I confined myself to the simple as- sertion that the Farmers Union had been in principle opposed to this form of raising revenue ever since it first originated in the industrial East and 4 I further expressed myself as hoping that there the matter would rest as far as either the Farmers Union or I were concerned. Now, to my surprise, I find that the governor of the state is using my name in his public campaign to force across this measure; that he is attempting to indict me on the charge of being indifferent or oppos- ed to the welfare of the public schools, and that he has even gone to the ex- tent of intimating that the responsi- bility is mine to devise means for the financing and maintenance of these schools. Prerogative of Citizenship It has long been assumed that one of the perogatives of citizenship in this country is that of free and frank discussion of all matters of public in- terest and general welfare. It has re- mained for the governor of this state to intimate that it is a high crime for any individual or group of individuals to entertain an opinion on a public measure if that opinion happens to run counter to the ambitions or de- sires of those who may, for the time.) ‘hat it was several times defeated be-.| be the holders of public office. I have no wish to challenge the honesty of the governor in his advocacy of the sales tax and by the same token I feel that he has no right, official or otherwise, to cast reflections on my attitude of opposition to it. I do not maintain that wisdom wi of necessity, die with me, but I do as sert that my attitude on this measure is based upon certain facts and on circumstances which are matters of record and the failure of the governor to make public these facts forces me to take this opportunity to place be- fore the voters of this state my posi- tion in the matter of the sales tax. During the last session of the legis- lature a conference as held at the gov- ernor's mansion at which were present Congressman Lemke, Minnie D. Craig, the speaker of the house; Ex-Gover- nor Maddcck, and Senators Brostuen, Eurkhart, Marshall, Greene, Erickson and Bonzer, as well as the speaker on this occasion. This meeting was held in the afternoon, the exact date having now escaped my memory but it is not material to this subject. This meeting was called for the purpose of devising means of financing the state for the biennial period and the dis- cussion lasted well into the evening. ‘The solution proposed by Congress- man Lemke, Walter Maddock and my- self involved a Voluntary Sales Tax combined with the issuance of State Scrip to the amount of $200,000 per month which, in savings and taxes, would amount to $4,800,000 per bien- nium. It was proposed that $1,200,- 000.00 be transferred to the State Bond and Sinking Fund Account, this money to be transferred from the Mo- tor Vehicle fund. Other legislation would provide for a one-half mill levy which would raise $300,000, to which ‘was to be added $500,000 obtained as a Joan from the funds of the Hail In- surance Department. The total of these items would be over $2,000,000 with which to meet the requirements of the interest and sinking fund ac- count of $1,900,000.00. Could Fall Back on Levy In addition to this, we could still fall back on the state levy on the basis of 2.66 mills which, on the ratio aver- age of 68% of taxes paid last year, would raise $1,333,000. If all of this Proposed legislation passed there would be available for the Interest and Sinking Fund $3,400,000. Fearing that some portion of the Proposed legislation might fail of pass- ‘age, the governor asked what portion of the money refunded on purchases of gasoline was credited to purchases of fuel for agricultural purposes. On being informed that it amounted to some $650,000, he stated that inas- much as agriculture had been bene- fited by the forty millions of dollars Joaned to farmers through the farm Joan department of the Bank of North Dakota it would not be unfair to ask the farmers to stand a proportionate share of the payments into the Inter- est and Sinking Fund account. He then asked, as a personal favor, if I ‘would appear before the caucus and explain this proposal to it. Out of my desire to co-operate with the admin- istration in whatever appeared to be for the benefit of the state I per- mitted myself to be persuaded to take this course of action. part of the agreement was car- it at the caucus and if my did not meet with his ap- maintained a most studied on the 2 g i : bill embodying the by the adminis- was dra and luced in the Senate. if ee i | of a bare constitutional majority in founded on bad policy he must assume whatever unfavorable responsibility accrues, Made Definite Promise During the legislative session ru- mors were more or less current that a demand would come from the gov- ernor for some form of a sales tax, in conformity with his public campaign utterances. Those of us who had par- ticipated in the conference referred to janalysis of the practical operation of | Talbott Assails Governor’s Honesty ene * SAYS MANY PROMISES VIOLATED es * * * Tells Inside Story in Bisma |fice until the inauguration of Presi- {dent Roosevelt in March. One of the arguments advanced for \the passage of the sales tax at the |time it was before the legislature was |builded around a rumor that if the League was in power in North Da- |kota the state would so suffer in credit that we would be unable to negotiate |needed loans with the Reconstruction | Finance Corporation. This argument |was disproved by the fact that we jhave been able to make a $3,900,000 ‘loan from this corporation, largely |due to the fact that the Bank of North Dakota was 52% solvent. Under the| provisions of the law taxing the power companies at the rate of 12% of their {gross earnings; 20% of the tax so collected is to be credited to the State Equalization Fund. This, in addition to the three and one-half millions to be raised through other new legis- lation, should more than take care of the Interest and Sinking Fund re- quirements without resorting to the |sales tax method. Analyzes Sales Tax Let us devote a few moments to an placed little credence in these re- ports because in that meeting he had} pledged himself that no sales tax} would be sponsored by the adminis-| tration. These rumors became so per-| sistent that Congressman Lemke and! I had a further conference with the| governor and we left the governor’s| mansion with the assurance that no/ sales tax measure would be proposed { by him to the legislature. To my ut-| ter surprise and consternation the j next morning a personal appeal from; the governor for a sales tax measure | was placed before the legislators and this appeal is a matter of record in the journals of the Senate and the House. I shall dwell but briefly on the his- tory of the passage of this measure! through the legislature; on the fact fore worn-out and harassed members finally gave it approval on the last long night of the session; on the | methods of coercion that were used} by the administration when every ar- gument had been exhausted and when very promise of political reward had been resorted to; on the recorded vote both houses, and in neither house a majority of the members of the party which carried him to victory in the campaign; nor on the fact that the} xewards to those who submerged their | judgment and the wishes of their con- stituents to the assurances of jobs and polticial preferment as later recorded in the payrolls of the departments of the state. Favors Script Law Just prior to the passage of the Sales Tax, the Scrip Law passed both houses. Now let me point out that the passage of the Sales Tax com- pletely nullified the workings of the Scrip Bill for if both were put into operation no one would voluntarily support a double sales tax. It may be worth while to point out that the Scrip Law provided no opportunity for the building up of a large force of paid collectors and inspectors who would recognize no duty paramount to that of serving the administration which gives them official life. The fact that all of the collections made under the sales tax law now before us, are to be first available for the pay- ment of salaries of these collectors May be responsible for the fact that) this child of adversity finds such favor with the present state administration. It will not be amiss for those of you who are asked to vote for this meas- ure to inquire of those who are so} vigorously supporting it in the pres- ent campaign whether they expect to} reap material reward in the event of | ihe for him to attain the office he its approval by the people. Also let me point out to you that} any form of sales tax will, unavoidab- | ly, pyramid the cost of living and | voters of. this state. cause you to pay not only 2% but in some some instances as high as 10% or 159% more for the purchases you} make. All taxes must be paid in the} pone! final analysis by the worker and the [Or the, Span ated ering farmer. The businessman will, in self protection, pass on the tax, and to make use of a homely and well worn slogan: “Jones pays the freight.” Langer Lacked Courage Let me also commend the courage of Senator Nye, who, in his declara- j tion against the sales tax at Sykes- ton, came out openly in opposition to that measure. His attitude on the question is entirely consistent with his record in Congress where he has al- |the backs of the public, and that we \tering the act are cared for, after all ‘inexcusable and treacherous act to his this new and painless form of state financing, this measure that is to make the school bells peal without any new burden being placed upon are promised will overnight transform the financial status of hundreds of School districts from that of dire dis- tress to one of comparative affluence. After all of the expenses of adminis- of the collectors and the inspectors and the myriad of other appointees will have found a haven of political refuge in the machinery of enforce- ment under this measure, then and not till then, will any of the collec- tions made be credited to the State Equalization Fund. On September of 1934, almost a year from the present date, we find that 25°, of the taxes ** ene “eH rck Talk recognition of the governor who as- serts from the platform that he is the saviour of their homes. How much better for the home owners of the state would be a legal moratorium approved by the people rather than one which is based upon the uncer- tain authority of a governor's pro- clamation. All Should Vote T trust that every voter in the state will cast his ballot on Friday only af- ter he has weighed carefully the pos- sible consequences of his action. There can be an honest difference of opinion between men, even though all may be actuated by the highest motives, and it is not given to anyone to judge in- fallibly of the purposes of his neigh- My expressions tonight are the result of my profound convictions based upon certain facts and circum- stances which I have briefly referred to. I have supported the present state administration in all things where I felt that its attitude merited that support; in the last campaign I gave my best efforts to insure its election, and in the same spirit I re- serve the right to differ with it in matters which I deem vital to the in- terests of our people. C from page one: D Defendant Claims Kelly Was at Farm @ letter from the fugitive Kelly, who has been called “a human rat” by As- sistant Attorney General Joseph B. Keenan, was made_public by Keenan and the Urschels. Kelly's letter of hate, bearing his fingerprints and apparently written by his wife, Kathryn Cleo Kelly, also wanted for the kidnaping, warned the Urschel family will be “brutally murd- ered” and informed Urschel that Har- vey Bailey and Albert Bates, outlaws raised under this act will be avail- able for the relief of our public schools. And out of this 25% one half, or 121401, will be distributed among the counties on a basis of school population, regardless of need. So that if $4,000,000 is collected an- nually through the operation of this act $500,000 will be allocated among all of the schools of the state and $500,000 will be available for those districts which are in dire distress. It requires approximately thirteen millions of dollars to operate the schools of this state for one year, and hence on the basis of the figures just quoted the statement of Arthur E. Thompson, superintendent of public instruction, is substantiated when he asserted that it would relieve the taxpayers of less than ten per cent of the cost of maintaining our schools. Says Governor Vacillates The vacillating attitude of the gov- ernor on matters of legislation is apt- |ly illustrated by his action on another ‘measure passed by the last assembly. | By a tremendous majority the legis- lature passed a bill providing for the weighing and grading of livestock at all packing plants within the state. The governor stated to me in the presence of 10 or 15 witnesses that he had signed this bill, and then, for reasons best known to himself, he placed his veto on the bill seven or; eight days later. This action was tak- en in the face of the fact that this measure was passed by his own politi- cal group for the benefit of the farm- ers and livestock raisers of the state. What pressure could have been brought to bear upon the governor to commit this act of political perfidy I am not in a position to state, but I am prepared to assert that it was an own political associates and to those whose efforts and loyalty made it pos- now holds, There is one other matter to which I desire to call the attention of the ‘While the gov- ernor declared a moratorium on the foreclosure of farm mortgages, he has consistently placed in high position measure, voted upon by the tax pay-/ ers in two consecutive selections, The | very men in our own organization | who took part in helping to defeat the on trial, will be “out for the ceremon- ies—your slaughter.” At another point it said: “I am getting my plans laid to destroy your so-called mansion and you and your family immediately after this trial.” To this the family replied: “We have thrown our lot with law and the government. The Urschel family does not want one moment's delay in giving gangland its answer.” GUARD DAUGHTER OF KANSAS GOVERNOR ‘Topeka, Kas., Sept. 21—(7)—A kid- nap plot in which his 16-year-old daughter, Peggy Ann, was to have been held a prisoner until he granted executive clemency to members of the notorious Harvey Bailey-Wilbur Underhill gang now confined in the Kansas penitentiary was made pub- lic Thursday by Gov. Alf. M. Landon. While denying receipt of any “ac- tual threat,” the governor said “so much confirmatory evidence” had been disclosed by investigators that guards have been maintained at the executive mansion. Miss Landon, attractive high school has been guns also and her 14-month-old sister, Nancy Jo. Eleven men, including six long- to have been involved in the plt. Their names were not disclosed. Governor Landon said in a state- ment, however, the gang included prisoners identified as having affilia- tions with phe Bailey-Underhill gang. HOLD GANG OF SEVEN FOR O'CONNELL CASE New York, Sept. 21—(7)—A pair of rusty handcuffs became the link with which police strove Thursday to fas- Help Kidneys moratorium are now enjoying the | © Beacon smiles of the administration and the! Gygtex [BISMARCK TRIBUNE PATTERNS the letter. The governor | first ways been an opponent of a national | sales tax, taking the position that it} Was a move to relieve the larger in- terests from contributing to the fin-| ancial support of the government! through the income tax. Let me say that on this occasion the governor had not the moral courage to speak his mind in the presence of the junior senator; that in his remarks at the time he virtually repudiated the sales | tax but did valiantly rally to its de-| fense in later addresses when neither the article as follows: “Lemke, al- though elected to Congress for the time, was able to find time to assist the state legislators when they the compromise bill. One cannot expect, perhaps, that s mem- ber of ‘the most august body in the i Author Has Promise The author of this statement can- not avail himself of the plea™of ig- norance, for he has long fished in the Make This Model at Home PAJAMAS GO FEMININE PATTERN 2505 by Chone Ohlons ‘ten the guilt of the O'Connell Kid-| Hill, Fargo, and who discussed haping on s gang of seven fron removal by and filtra- ‘Wednesday in one of the most = », ° TE tie artes a Hive Other resolutions recommended that | Bicrinsons pcidy With the arrest of five men and| municipalities operate water works as| Dickinson. peldy |» two women, the police said they &® separate utility in order to Forks, clear Polltios out, and urged that the state | INDUSTRIALIST SAYS LABOR FEDERATION 33338338888 Ssseeseessseessss nkingon, c! murders, four bank and establish @ state sanitation board in| Jamestown, kidnaping of John J. O'Connell, Jr, connection with the state health | Kenmare, INJURIN young member of a family powerful Higdon, | Bel in Albany Minot, r night and looked. at’ the Medreg radia Bape ue Dr. Hapotion dy ry it ive men. by os . oy ‘Two of them, Anthony Reino and|Annie Besant, who was known Parenaih'c char $0|Manufacturer Objects to At: Leonard 8c! seemed to him to| throughout the world for her leader-| Pembina, clear * tacks Made on Complying resemble the men who abducted him.|ship in theosophical activities, died | Pinu. < % 00 “But I can’t be positive,” said| here Wednesday. On Oct. 1 she 34 00 Firms By Green O'Connell. “I never have been 86 years old. Old age preety chance to look a them. And this is|}brought death, _ HuroSOUTH DAKOTA POINTS aed: wer a very serious c! ” in, IT seen 4 ‘Washington, 5 —_ - He was certain, however, that hand-|| Weather Re; Rapid City, clear 90) american Federation of Labor Thure= ment where port day was charged by an indi leader with ‘efforts to secure control ‘of labor which “already” were having the effect of destroying the NRA pro- 83 stam. For North Da- = Low- president of the kota: partly clow est est Pet,| Robert L. Lund, “f owers east, cool-| Amarillo, Tex. clear .. 84 06| National Association of See . south-central | Boise, clear 76 46 .00/ers, made the assertion in rep! ion tonight; | Calgary, Alta. pcldy .. 68 36 .00/statement by William Green, federa- to concentrate for the time being on Chicago, Tl, clear 70 50 .00/tion president, assailing some employ- the bank robberies. Three of these peooee Ose) Denies, Colo; chy S 62 SS lers for forming company — Se iicmatas Share wapuitie on For Da-|Dodge City;'an. clear .: @& 64 (00| ‘This | employer-labor_ interchange v becet) : Partly| Edmonton, Alta. 72 32 ‘o0/accentuated anew Lhe killed. cloudy F and Havre, Mont., 78 52 .00|which have prevailed between capit . Friday; rr. eee. an) : 53 oe) and wl eee ae tana: Mont., cldy ... 4 fi with a further de~ U Enrollment Near Unsettled and|KKamloops, B. ©, cldy. 70 52 00 belie fear the boot and shoe indus= That of Last Year SSoasty erent Lander, Ws ae sana ee g ry try for a merit clause permitting em es Medicine Hat, ‘ia {2 | ployers to handle labor on an efficl- — north-central and| Medicine Hat, A. rain72 44 Grand Forks, N. D., Sept. 21.—(?)}— Hi y gen-| Miles City, Mont., clear 88 sa Pa ency rather than union affiliation ent extreme southeast 2 .00/ basis. wu = nd Hugh 8. Johnson, busy studying ae (gel Be ae ee crest faba: developments, unset- 40 «00/0n _ these latest Here Win tuned eT ca Bice neay tached post ee figure Wednes: inert 58 .00|the recovery law's collective bargain, day night was only 50 fewer than on GENERAL CONDITIONS 52 = 01) ix.¢ provision. the second day a and that sa aa | 2 ta ed A low pressure area extends from 44 00|,, Lund’s statement said labor condi- the shortage occurred largely in the | Colorado and Nebraska northward. to $8 00|tlons-in plants objected to by Green babel Manitoba City and The 00), sountiy.” Bat). bun preeute ares (Boise ae oO Neliaeer a aeciean on the priot-con- and Roseburg 30.08) is centered over 4 Name Williston Man | Sregon“Meticrate et ped 48 a2) rot sections of the retall trades ane curred the ific coast “og | (rus codes was not “a At State Conference and light, scattered Ce fell along 2 F- eral days. krone his Reread Te- EE a eastern: ss ined unknown. But past, Jamestown, N. D., Sept. 21.—()— while generally fair weather pre- the recovery chieftain has stated his W. H. Robinson, Williston, was elect- in all other reporting sections.| A, L. Sperry to Be reluctance to approve anything al ed president of the North Dakota Over the ‘Pisins Beates ant sions che Buried at Livona |?"2hi¢ price-fixing unless produc- ‘Water and Sewage conference at Wed-| eastern Rocky Mountain » but tion was controlled. nesday's session, succeeding O. N.jcooler weather prevails over pre Bergman, Valley City. Northwest. A. L. Sperry, who died at the wheel Cash in With a i River stage at 7a. m. -0.5 ft, Me hose cree -0.1 ft. | se ee station barometer, inches: ‘The group went on record as favor- ing the Missouri River Diversion pro- Ject and establishment of a state en- gineers’ service bureau. Other officers named are H. T. PRECIPITATION REPORT Hintgen, Wahpeton, vice president,! Total this month to date ....., 0.34 and A. L. Bavone, Valley City, re-| Normal, this month to date . 0.92 elected secretary-treasurer. The offie-| Total, January lst to date . ers, with Bergman, E. J. ‘Thomas of| Normal, danuary ist to date - Bismarck and C. 8. Childs ot .ain-| Accumulated deficienc; booed Neapolis, form the board of directors. NORTH DAKOTA POINTS \- Low: ‘The meeting place for next year will be selected by the exectitive board. Speakers Wednesday were Fred est est BISMARCK, peldy .... 7 55 9.22|made by friends of the dead man ‘Pet.| dead man will be unable to attend the 00) funeral services. of an auto near Stewartsdale Monday | evening, will be buried at Livona Tribune Want Ads Reduced to sea level, 29.56. ‘Thursday afternoon. A post-mortem | gasses examination disclosed that his death was caused from a heart attack. Arrangements for the funeral were Treo-Feen clentifie relief for pain... Wo quickly, because it dis- solves faster, Use ‘Treo-Feen for headache headcolds and and neural rheumatism. 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