The Bismarck Tribune Newspaper, March 1, 1934, Page 1

Re i (ga=] THE BISMARCK TRIBUNE ESTABLISHED 1878 Langer ‘Fired’ from Relief Job Mill Payments Called Into Question Newspaper is Given Big Sum Audit Reveals $2,000 Paid as Flat Amount on Nov. 13,.1933 Is Held ‘Question- able Expenditure; $3,250 More Listed as Advertis- ing Expense for State Enterprise SOME MEN PAID WHO DID LITTLE OR NO WORK One Rebate Given to Employe for Leader Assessment and Charg- ed to Mill; Advances Made to ‘Salesmen’ But: Their Names Are Not Found on Payroll ——_—_ In a report on his semi-annual audit of the North Dakota state mill and elevator for the last six months of 1983, 0. B. Lund lists payment of $2,000 to The Leader, administration “five per cent” newspaper, as a “questionable expenditure.” “On Nov. 13, 1988, $2,000 was paid to The Leader, Bis- marck, N, D., and charged to advertising expense,” Lund says in the report, just received by the state board of auditors. “This payment was made by state mill check No. 5042, drawn on the Red River National Bank and Trust Co. of Grand Forks, N, D.,” the auditor said. “There is no bill on file from the payee or explanation showing why this payment was made. This $2,000 payment is in addition to the monthly advertising bills aggregating $3,250 rendered by The Leader for the six- month period and also in addition to the assessment of em- ployees’ salaries and wages. ... .” Lund made no further comment on the payments, which show that ‘The Leader received an average of $875 a month from the state mill and elevator for advertising during the six-month period. Lund’s accounting, covering a period from July 9, 1933, to Dec. 31, 1933, showed a deficit for the six months of $44,700.82, with depreciation and outstanding bond interest charges figured. The operating profit for the period was set at $76,827.10. Report Covers Entire Enterprise ‘In his report to the board, which includes Attorney General P. O. Sathre, Auditor Berta E, Baker and Secretary of State Robert Byrne, Lund ex- plained that this audit was conducted for the mill and elevator as a whole and not separately, as in the past. Appointed general manager Nov. 15, 1933, Lund said, Ludvig Pederson assumed the post Nov. 20, 1933. The former mill manager (O. L. Spencer), Lund said, “apparently is carrying on in the same capacity as before the new manager was appointed.” The mill operated at about 61 per cent capacity during the audit period on the basis of a year of 300 days, manufacturing 320,442 barrels of flour, the report indicates, ° sae Other “questionable expenditures” were listed by Lund.as follows: “On Sept, 30, 1933, $18 was paid to W. Rheinhart and to common labor expense. The payee was an employe of the prior to date of payment and claims this payment was a refund tt Leader assessments previously deducted from his wages at the rate of $6 per month for three months. His contention is borne out by the absence of a payroll time card for this payment. “On Oct. 30, 1933, payment was made to C. W. Litten of $50 and payment to M. M. Ruder of $50. The payments were first charged to these parties as advance loans on that date. On Nov. 13, 1933, these advance accounts were credited and the amounts charged to salesmen’s salaries with no explanation. We find no evidence showing that these parties were employed by or rendered services to the mill, When 8 Salesman Doesn't Sell “During the period T. H. Hagen was paid $1,345.58 as salesman’s salary and expense. There is no evidence on the sales records to indicate he has sold any mill products or rendered any sales service during this time.” Listed in the assets of the state mill and elevator is an item of $51,655.88. “This represents 50 per cent of the deposits of the mill and elevator departments in the closed First National Bank of Grand Forks,” Lund says in explanation, “which is unpaid at date of audit, claimed to be preferred deposits by the mill. This contention is disputed by the is in litigation. This bank deposit is carried at full value in pending the decision of the court. In the event this is not held to be a pre- ferred claim, a Her sare this Levene it beceane 3008 ¢ Explaining that claims against the state mill and elevator are not pre- sented as prescribed by Chapter 244 of the 1915 session laws, Lund said, “From the beginning of operations of the mill and elevator, it has been the practice of the institution to honor claims for services, expenses and ma- terials, presented in the form customarily used by privately-owned plants, The question is sometimes raised whether or not claims against the state mill and elevator should be presented as prescribed by Chapter 1915 session laws. This question has not been definitely settled claims are presented and paid in the same Put at $2,325,562.41 Deficit to Date The total deficit incurred by the state mill and elevator from the ginning of operations until Dec. 31, 1933, including bond interest and preciation, is placed by Lund at $2,325,562.41. The operating profit, exc! sive of interest and depreciation, from the beginning of up Dec. 31, 1933, is placed at $919,546.15. In regard to depreciation, Lund said, “House Bill No. 105 of the 23rd Jegiciatiye, sembly oiennrts to poeree. We. method os ciation of owned buildings. We have adjusted depreciation sa peo sonou'te oceaey Sik os er is This nt luces of the carried in our statements, Ja 3 g a ee? gf s as ciation rate during the early increases the charges at: the Fargo, N. D., for a rally in Valley City Monday, 5, the re- nomination of Governor Langer was p it all delegates selected ttend the League state convention fog oo and all anti-Langer i hi He BISMARCK, NORTH DAKOTA, THURSDAY, MARCH 1, 1934 E. A. WILLSON and one of the women who are credit- ed with having made the CWA a suc- cess in North Dakota after a poor start on the federal relief system due to political interference. Judge Christianson has been the guiding genius of the relief and CWA enterprises and, more than any other Person, is credited with its successful operation. He has worked long hours House Sidetracks _ Huge Supply Bill Washington, March 1.—(#)—To give the administration time to attempt to |; compromise with the senate on veter- ans legislation, Speaker Rainey Thurs- day referred to the committee the independent offices supply bill provid- | ing for an additional $50,000,000 | ennually to former service men and government employes, COMMITTEE OF 100. GALLS MEETING ANTI-LANGER GROUP Would Have All Opposed to Governor Meet in Valley City Next Monday i} March 1.—(P)—A call th 5, of persons Fargo by John nominat convention Be is called A Q. g sf d & I ey TE : 4 i F é = Those Who Made CWA a Success in State at the task in addition to those given} ‘Holding important posts in the|“ March 21—Unemployment _ relief his regular duties as a supreme court Pictured above are five of the men| R. M. Stangler, manager of the Bank of North Dakota, is a member of the state committee, as are Thomp- Craig. Mrs. Craig also held a salaried job in the relief organ- ization. The fifth member of the committee, Lee Nichols, Morton coun- ty auditor, is not shown here. ROOSEVELT NEARING END OF FIRST YEAR IN SEAT OF POWER History of Cyclonic Attack on| Depression Is Given in | Brief Survey FACED GRIM SITUATION 1 Order Brought Out of Chaos by! \ Swift Moves on Many | Economic Fronts (By The Associated Press)” Franklin Delano Roosevelt faced 100,000 tense citizens March 4, 1933, JUDGE A, M. CHRISTIANSON in @ chill Washington wind. It was inauguration day . . . his fingers touched the Bible . . . he was president. Banks were closed. Presses rolled scrip. The gold standard was fading. Hoarders were watched. Business ‘stood still. “The only thing we have to fear is fear itself, . .” The new president promptly con- vened congress . . . showered mes- Sages around its ears . . . asked for the most drastic peacetime powers in history. A year of action had started. Major messages in March: March 9—Control of banks . . “a continuation of the strangulation of banking facilities is unthinkable.” March 10—Economy in government. + + . “it is too late for a leisurely approach to this problem.” March 13—Beer . . . “I deem ac- tion at this time to be of the highest importance.” Need New Methods March 16—Farm relief . . . “an unprecedented condition calls for the MRS. MINNIE D. CRAIG trial of new means to rescue agri- i * . reulture.” CWA set-up are Rand and Willson./through direct grants to states and Rand, in charge of the accounting and| through public works. disbursement of funds, has handled! March 29—Supervision of securities millions of dollars which have gone to|/sales . . . “let the seller beware the relief of North Dakota citizens. |, | ,“» Willson has distributed stock feed ony slightly, vot for cattle in drouth areas valued at ry pepe aad rapes: more than a million dollars and his! when beer came the WCTU warn- bosses say'he has done an excellent|eq, “beer makes women fat.” ‘The Job of it, first case sent to Roosevelt was given to newspapermen. DERN SCORES PLAN ‘DOUMERGUE GIVEN |sZaseze = Mb TOBUY 4383 NEW DIGTATOR'SPOWER. = <7 in PLANES FOR ARMY BY FRENCH SOLONS sz “Says It Is ‘Beyond Any Sane! Venerable Premier to Have Full! voces ‘a partnership of government Estimate’ of Nation’s Defense Needs |, Washington, March 1.—()—Secre- jtary Dern smacked a “beyond any esitmate” label Thursday across | congressional plans for a wide expan- sion of army aviation. ‘The war department and its one- | time traditional ally, thé house mili- jtary affairs committee, thereupon jbroke off friendly relations. The committee promptly prepared. a j comeback of its own. Dern singled out for attack two bills introduced by Chair ‘one of which would give the army 4, 364 new planes. In @ statement ‘ment of France, red-eyed from long | struggle, balanced the budget Thurs- |day and, bowing to the insistence of | { “The first of these two bills,” he tevhukithug of Valley Cy, chat faye ad nase, Set fo Fy j|far sane the “committee of 100,” anti- | devensive needs, and 80 costly, that ent militarism, or immediate war. MOR RBIN. SomtNitD seated ae. war secretary to come up and com- mittee about it. He added: “The committee has several times requested Secretary before it and explain he has never come. We are still ready to have him appear at his conven- He urged repeal. Michigan voted April 3—Message . . . relief to That was the NRA with its blue eagle and the $3,300,000,000 public works program. It promised higher Charge of Tariff and Rev- iat an end to unfair com- enue Policies The “brain trust” mobilized, and the TVA was projected as an experi- ment in social planning. Price Rise Begins To the world economic conference in July he outlined America’s “inde- the venerable, determined premier,|Pendent, dollar” . . . prices rose +. . “the U.S, is not ready for Gaston Doumergue, made him a tariff a ace stabilization” . . . the dollar fell The 193¢ budget as voted by par-|: + Managed currency plans were ament gives a surplus of nine mall ie + + + ranks of economists split ion francs revenue over estimat . expenditures. The latter are fixed| July 17—A milestone . . . textile ‘at _48,318,000 francs, or $3,140,707,050. |Code No. 1 was effective. He caution- The vote on the budget in the|¢d against overproduction, warned of chamber of deputies was 458 to 132,|the fall slump, appealed to the nation AG 38. ths setsate 284.10 25, anal blan! . just before acting on the budge’ Parliament granted Premier Dou- Paris, March 1.—(?}—The_parlia- governmental economies and to man- | ed. treaties, ea eee ‘ Custer Relics Are | | Given to Country | New York, March 1—@)—An® old piece of white towel, stamped “this towel was the first flag of truce sent in by the Confederate | ernors’ price fixing plan, created the go, but we are on the way.” er and higher prices . . . Europe was mystified . . . elementary text books were thumbed to find why higher gold prices should mean high- er commodity Mancht forces on the day General Lee CWA to shift 4,000,000 from relief to! ness followed witness to complain wed Se tours being stretched did sone, | which sponsored 16,000 letters daily out of all meaning: that wage levels|<mpire, and Manchukuo Stself Tae Indastsiatints, oy eet Gates: | attempt upon his life, and other surrendered,” was among the ef- . fects of the widow of General |mployment rolls. + + congress opened, docile, willing. It heard with few public debt of $31 billion by June 30, 1935. Executive Will Address Groups Washington, dent Roosevelt will disclose his plans mergue dictatorial powers’ to eftect| September—The coal code was aign-|{oF NRA in a personal appearance ipulate tariffs in negotiating trade| October—“We have ® long way to For yp geal Johnson to Prices. son to their worst in an 2 Roosevelt rejected the western gov-| torum, M right ahead. oe gasps’ his fiscal policy leading to ling unleniestion Roosevelt, in the closing months of his first year. gold in the nation, = $2 billion ex- jualization The Weather PRICE FIVE CENTS Governor Held Guilty of Graft On Poor Fund Federal Director Says Political Contributions Collected Fron} Employes of Relief Administration; Christ- ianson Given Charge of Set-Up | NEWS CONTAINED IN TELEGRAM TO EXECUTIVa t ' Definite Charge Hurled in Governor's Teeth Is ‘it Is Apparent That These Contributions Were Used for Your Political Purposes’ Washington, March 1.—(AP)—The federal government Thursday took over control of relief activities in North Dakota because, Harry L. Hopkins, the administrator, said, political contributions had been collected from employes of the state ree lief administration. ; Hopkins, in a telegram to Governor William Langer, charged contributions were used for the governor's political purposes. Ly ‘ Judge A. M. Christianson was named to act as relief and civil works administrator in the state. Hopkins’ telegram follows: “Information obtained by this administration indicates that political contributions were collected from employes of the relief administration in North Dakota. “It is apparent that these contributions were used for your politica) purposes, “This practice is directly contrary to the policy of this administration and will not be tolerated or permitted. “Our information indicates that the relief commission itself took im< mediate steps to discontinue this practice as soon as it was discovered. “Pursuant to section 3, paragraph B, federal emergency relief adminis- tration act of 1933, the administrator is hereby assuming control of the ad- ministration of relief in the state of North Dakota. “I have asked Judge A. M. Christianson to act as the administrator of relief and of civil works in North Dakota effective at once.” i $n | INVESTIGATION HERE chthonic behtichabmoheotedte (Hopkins Brands Him) repeeat men Mave | | Action of the federal government | jin taking over control of relief activi- ties in North Dakota follows several | weeks investigation by agents of the | department of justice into reports that federal relief employes had been Solicited for contributions to “Tht Leader,” weekly newspaper spotieored by the administration of Gov, Wil. liam Langer. While two federal agents have bee: working quietly in Bismarck, it was’ generally known here that they had interviewed numerous persons regarde' ing the reported solicitations for The Leader, which is financed by contri-, butions of 5 per cent of the salary of state administration employes, The agents are known to have abo interviewed several state officials. contributions have been collected GOVERNOR WILLIAM LANGER |{rom employes for political purpases, Governor William Langer Thursday oS NEW DYNASTY BORN with the North Dakota relief and CWA organizations by order of Harry Hopkins, federal relief administrator. IN M ANCHURI A AS Hopkins branded the governor with having solicited money from em- POIEVELT PLAN JAPS GUARD PU-YI Manchu Empire’ Assembled in Washington to Criticize NRA March 1.—(?)—Presi- ‘This was made known Thursday as Then Old ee eNO started! criticism was received from a large buying newly-minded metal at high- number of persons who came here at i Officials showed the strain as wit- & fei e & It was bitter cold—below response. NRA industrial assistants conceded Asked—A 50-60-cent dollar, all the| that ‘No Accident’ Week coy; ebony throne. a —— Former Fargoan Is |Government Asked to |" ‘Tu, in rites orth Detot ies dedgaisd Marn| Made Safety Chief| Support Home Bonds|oa. uc" St A Washington, March 1.—(AP)—W. Patterson was Sepolnted director the bureau of y of the ae a li 5 Y i Of the sebtion of 1:|be able to extend, furtier hic pied ge