The Bismarck Tribune Newspaper, May 11, 1934, Page 1

ESTABLISHED 1873 BISMARCK, NORTH DAKOTA, FRIDAY, MAY 11, 1984 THE BISMARCK TRIBUNE | The Weather Possibly local showers gaa ed or ior Gate] urday; warmer tonight; PRICE FIVE CENTS N. D. Crops Face Destruction Insull Challenges Jurisdiction of Federal Court _—_—_. REFUSES 10 ENTER | Delights Artist's PLEA TO CHARGES; WILL RAISE BOND Counsel Contends Defendant Was Illegally Seized in Istanbul Harbor JUDGE MAKES NO RULING Other Defendants Answer ‘Not Guilty’ to Accusations of Law Violation Chicago, May 11.—(#)—Samuel In- sull refused Friday to acknowledge the jurisdiction of the United States district court and uttered no plea to the charge of violating the bankruptcy act and using the mails fraudulently in selling his company stocks. Brought from the county jail for his formal arraignment before Federal Judge Philip L. Sullivan, the elderly prisoner remained silent and aloof while his counsel entered a» plea challenging his seizure in the harbor of Istanbul as illegal and refusing to plead him guilty or not guilty. His fellow defendants on the bank- ruptey charge, however, entered their Pleas of not guilty, and Judge Sulli- van, without discussing the value of Insull’s contention, postponed the hearing until next Tuesday. Insull immediately retired to the judge's chambers and his attorney, Floyd E. Thompson, announced that surety companies were scheduling the $200,000 bond which would make un- necessary his return to the county jail. Refuses To Enter Plea Immediately upon the calling of the hearing by Judge Sullivan, Attorney ‘Thompson rose and offered the plea to the jurisdiction of the court, pre- venting his client from making any acknowledgment that he is legally held. The plea contended that detention of the Greek freighter Maiotis in port. at Istanbul was improper and that his arrest, detention and finally deliv- ery to an American diplomatic officer were all without due process of law and tantamount to kidnaping. Judge Sullivan received the plea without comment and summoned 4in- sull’s old business friends to the bar. Already his co-defendants, months ago, had pleaded not guilty to the charges of mail frauds in marketing the Corporation Securities Company stocks. Samuel Insull, Jr., was called first, and entered his plea of not guilty to the indictment alleging improper handling of assets of an insolvent com- pany. Then in turn came Harold L. Stuart of Halsey, Stuart and Com- pany, investment firm; Philip J. Mc- Enroe, who was a vice president of Corporation Securities; John F. O’- Keefe, secretary; Edward J. Doyle, president of Commonwealth Edison Company; Stanley Field, former ~ chairman of the Continental-lIllinois National Bank and a director of Cor- poration Securities; William R. Irwin, and Charles W. Daniels. Bond Is Accepted At noon a surety bona for $200,000, already signed by Insull himself, was approved by U. 8. District Attorney Dwight H. Green and signed by Fed- eral Judge Sullivan. The bond was furnished by the Fidelity and Cas- ualty company of New York. Insull was instantly taken in hand by deputy sheriffs of Cook county, who served warrants alleging larceny and embezzlement from funds of the Mississippi Valley Utilities Invest- ment company, and another trip to the Criminal Courts building on the west side was begun. There property had already been scheduled toward the $50,000 bond re- quired on the state charges. Say Defendant Was ‘Squeezed!’ ‘The government revealed that it will accuse Insull of mulcting some $100,- 000,000 from the American public by the sale of stock of which some 4,- 000,000 shares was sold in 1929 and 1930 when he found his utilities em- pire threatened by the activities of Cyrus Eaton, Cleveland capitalist. Eaton had bought up Insull shares and threatened to get control. It was + going to cost millions to buy him off. In this emergency, prosecutors said, " Insull organized the Corporation Se- curities Co., of Chicago, a company to own stock in other Insull compa- nies and to sell stock. It had @ short life. Bouncing as high as $101 a share in 1930, its stock ‘was on the counter at four-for-a-dol- Jar in 1932, That fall it was adjudged bankrupt. ‘The selling literature used in Betting buyers for this Ree, Prosecutors as: serted, aroused the government's ire. ‘The indictment in the mail fraud case, returned on Feb. 27, 1933, re- prints some. One slogan was “securi- ties that endure.” Readers were told one, is no safer road: to prosperity than yi Eye for Beauty James Montgomery Flagg hasn't lost his eye for beauty, though he's been portraying it for many years as an illustrator. He picked Miss above, of o., a8 the University of Missouri's most beautiful coed, aod her picture will grace. the college yearbook, SIX DROWNED WHEN CAR PUUNGES INTO RIVER IN MONTANA Accident Is Believed to Have Occurred When Driver Tried to Turn Around Heron, Mont., May 11.—()—Six Persons in an automobile plunged more than 60 feet down a bank to their deaths in the Clark’s Fork river about two miles west of here Thurs- day night. The victims: W. L. Hagler, 68, driver of the car and a retired rancher. Mrs. Deara Iseminger, 23, of Long Beach, Cal., daughter of Hagler. Lulu May and Jean Hagler, 6 and 7, respectively, children of E. Hagler, a son of the retired sane Russell and Guy Hanson, 3 and 1 respectively, sons of Mr. and Mrs. Clifford Hanson. M. H. Larson, Fp el pean here, a the car apparel! river while Hagler was rye ge to turn around near the steep bank. ‘The automobile landed top down in the river and a door operied. Only the body of Russell Hanson had been recovered Thursday night, the others apparently having been swept out of the car through the open door. ‘The car was retrieved through the use of cables. ‘Two small children, brother and sis- ter, stood awestricken as the auto hurtled into the swift river. had just been taken to a foot bridge leading to their home across the river. After they got out of Hagler’s car he started to turn around to return to this small northwestern Montana town, where he and the four drowned | the children lived. Three Are Nabbed in Indiana Police Raid|macr Richmond, Ind, Ma May epi petias men and a woman suspected by poli of being members of a gang that held up several banks in Ohio recently were arrested here early today after Dillinger, BUROPE [8 PAINED BY U.S, ATTITUDE ON WAR DEBT ISSUE! Four Little Words in Johnson Bill Are Background for Showdown ENVOYS RECEIVE NOTICE Door Left Open for Negotia- tions; $175,000,000 Is * Amount Now Due ‘Washington, May 11.—()—Presi- dent Roosevelt, because of four little words tucked into the Johnson act, has called for a showdown in the in- ternational game of war debts. Word circulated through diplomatic channels Thursday that further token Payments on June 15 would fail to ring up a “no default” sign on the treasury’s register. The doors of America’s money markets, under the Johnson act, are slammed shut on all_ defaulting nations. ‘The act bars financial transactions with any country “in default in the payment of its obligations,” and adds = four words: “or any part there- Envoys of at least five debtor na- tions, it was learned in authoritive quarters, have been informed by Wil- lam Phillips, undersecretary of state, that although this country would be delighted to receive any payments they cared to make on June 15, tokens would be accepted merely with “thanks.” The decision means that unless there is a new deal in the debt lineup —and the president left the door open for negotiation—thirteen nations must Pay a total of $175,000,000 due this country on June 15 as coming within the purview of the new law. The French and Belgian ambassa- dors were informed of that resolution on behalf of the president when they. called at the state department Wed- nesday. The Italian, German and Czechoslovakian envoys were given similar information Thursday. Surprise at the stunning answers they received to questions long con- sidered routine left the diplomats without speech for publication. "HIGHWAYMAN’ ACT SAYS BRITISH PRESS London, May 11,—(/)—“Highway- man act” was the term used in head- lines by the British newspapers Fri- day in reporting the decision of Pres- ident Roosevelt to regard nations making token payments on war debts June 15 as defaulters. “Highwayman Act by U. 8. on Debts,” said the streamer headline, and the subhead under it read “Pay up in full or—” While the press made a great deal of the situation, government offi- cials remained silent, and it was stated that the foreign i ie has no Official advice lvice regarding the BUSINESS VOLUME SHOWS GOOD GAIN Both Retail and Wholes and Wholesale Buy- ing Rose With Tempera- ture, Says Report tribution, the rate of industrial oper- ations reached new ly etig ey Bh ny April, has brought fresh evi- that the weather has been the major retardative factor to progress during the last few weeks. merchandise sumers’ hands has removed the fears jot a few weeks ago that inventory losses would be suffered, as stocks of the slowest selling items already have been lowered to such an extent that buying be reached until the latter part of May.” onn| Church to Administer Sacrament of Baptism Explains Broken Engagement “It her parents hadn't interfered everything probably would have worked out all right.” Sober and unsmiling, John Jacob Astor, one of the world’s richest young men, hus explained the breaking of his engagement to Miss Eileen Gilles- pie when he returned to New York, as shown above, from a tour of the world. Young Astor re vealed that he it parents “wanted to go with us on our honeymoon”. WHEAT CONFERENCE IS BROKEN DOWN BY ARGENTINE ACTION Southern Nation Refuses to Ac- cept Minimum Price Plan Offered at London London, May 11.—(@)—The world wheat conference broke down Friday when Argentina refused to accept the Proposed minimum prize scheme. Shortly after the conference had adjourned, late tonight, until June 27, it was learned that some import- ing countries, including Great Britain, had not given their approval to the plan. Delegates had been hopeful, how- ever, of an ultimate success. However, today, Argentina com- municated her refusal to accept the Proposition, thereby wrecking the con- ference. cruct| HOPPER POISON IS ARRIVING IN COUNTY Will Not Be Spread for ‘‘Anoth- er Week or 10 Days,” Agent Declares Though grasshopper poison began arriving in Burleigh county Friday, | ¢¥e™ it will not be spread over infested ‘reas for “another week or 10 days,” according to H. O. Putnam, county agricultural agent. Putnam advises farmers not to be “in too great a hurry” to spread the polson, pointing out that it is desir- ‘able to spread the bran mixture at the height of the hatching season. “The poison is good for only a few hours”, he said, “and for that rea- son is best spread when the baby hoppers are the thickest.” Hatching began several days ago in the county but cool weather the last two days has retarded hatching con- siderably, with the prospect that the maximum will not be reached for an- other 10 days, the agent said. The poison, which is being supplied free by the federal government for a concentrated drive against the insect hordes, is being shipped from Minne- be/apolis to 11 points in Burleigh coun- ty. These points, where the poison will be mixed with water at Burleigh | ‘0s county's expense, are Wilton, Foca: Wing, Arena, Driscoll, Sterling, Mot: fit, McKenzie, Menoken, Bismarck, and Baldwin, In some cases farmers may be called upon to assist in the mixing work, were in the house. - —_— itnam said. . The two men arrested were heav-| The sacrament of baptism will be} Upon orders from “key” men in the iy armed. Resides 9800. i0. casts. Sor | ine Se Mathers various lownahine, farmers | will 387 found three revoll subma- services a o'clock Sunday Poison mix from the near- thine i nor Epis- jest mixing stations. Farmers must’ All parents whose children|“key” men was announced by They are Harry Ulfers, to at-|Hazelgrove, and A. O. Thompson, ip. CUT LOAN AND GRANT May 11.—(#)—The baliapcnderiegs se pe i grant and scholastic|by the PWA was reduced Thursday: ¥ $75,000 RANSOM IS (LANIER WILL PRESS | ASKED FOR RETURN | FOR LEADER RACKET OF COAST OIL MAN) TRIAL HERE MAY 22, Telephone Message Says Vic- Sieeerier: Witten: tan William Langer and! tim Alive and Well; In- structions Are Given Sheriff's Assistant Says He Hopes to Clear Up Kid- i nap Mystery Soon Los Angeles, May 11—(7)—A ran- some of $75,000 has been demanded for the release of William F. Gettle, kidnaped Beverly Hills millionaire, the district attorney's office an- nounced Friday. Ernest E. Noon, attorney for Mrs. Gettle, informed district attorney Buron Fitts he had received a tele- Phone call “from a party who in- formed him he had Gettle alive and wanted $75,000 ransom.” | “Now you follow the instructions, jand everything, and you will be all Lae Noon said his identified caller isaid. | Then, said Noon, there was some reference to an automobile and the line was cut off. The sheriff's office previously had {announced detention of a woman in connection with the casc. ‘The woman, described as a brunette about 30 years old and fairly well dressed, fell into a police dragnet early Friday morning along with six other persons, who also were ques- tioned. After apparently examining the woman at some length, Capt. Norris Stensland, sheriff's office extortion expert, and a figure behind the solu- tion of a number of other kidnaping cases here, said: “It looks hot, boys! 1 think we have something. It is possible that we will have this solved within five To Stensland’s declaration, Blayney Matthews, chief of the district attor- ney's investigators, added that their inquiries gave “promise that we might have something important.” Significantly it came several hours after Ernest E. Noon, lawyer for the kidnaped oil millionaire, upon re- turning from a 35-minute trip, said at his office he had obtained “very important information which may lead to the identification of the kip- napers.” Whether there was a con- nection between the woman and his statement remained unanswered. Wife Issues Appeal As the hours passed without direct word, a grief-stricken family of a mother and four children appealed to the abductors to spare the husband and father from any harm and ex- pressed willingness to pay any sum for his freedom. “I beg you not to harm my husband and father of my four children,” said the appeal issued by Mrs. Gettle. Southern California peace officers massed in a gigantic manhunt, com- bining every agency of the law from | the federal government down to town- ship constables. ‘The second day of the kidnaping dawned with a variety of clues in the possession of officers, Among these were: A mysterious telephone call received at the Gettle estate about 15 minutes after the two kidnapers scaled a taking a drink after a swimming par. ty. ‘Both men were bound and gagged, bia rae strapped to a tree and itle dropped over the wall, placed ay an automobile ae driven away. Breaking his bonds, Wolf ran to the main house and spread the son, Ariz., May 11.—()—Anoth- er “truce” in the kidnaping of June Robles, six-year-old heiress, was ob- from the case for the second time suse Woe 7) wan kidueped Apel) #5 was granted to give the abductors a chance to send the Robles family a new set of instructions for delivery of the ransom money. 19,000 Workers Ic Idle In Motor or Car Strike | | Eight Associates Re-Iin- dicted by Jury | WOMAN IS HELD IN CASE/NEW EVIDENCE IS AVAILABLE: \ Re-Indictment Said to Bel Stronger and More Speci- fic in Allegations Announcement that he will press for trial May 22 was made by P. W. Lanier, U. 8. district attorney, late Thursday following the re-indictment of Governor William Langer and eight of his associates by a federal grand jury at Fargo. The nine defendants are charged with soliciting funds from federal employes for political purposes and conspiring to corruptly administer federal laws. Charged in the new indictments, in addition to Langer, are Oscar E. Er- ickson, publisher, and Oscar J. Cha- put, business manager, of “The Lead- er,” administration newspaper for; which it is charged donations were! demanded; Frank A. Vogel, state highway commissioner; R. A. Kinzer, former executive secretary of the fed- eral emergency relief administration in the state; J. A. Kinzer, his son. employe of the relief administration: Harold McDonald, solicitor for “The Leader"; Paul J. Yeater and G. A.) Hample. employes of the state high- way department. Charge 83 ‘Overt Acts’ In the original indictment charging unlawful solicitation of funds, there were 77 “overt acts” cited. In the new indictment 83 “overt acts” are charged. These are largely specific instances, with names and dates, of alleged con- tributions by federal employes to The Leader fund. Among contributions listed arc those allegedly from W. J. Pfenning, L. M. French, Phrene Junge, O. T. Forde, Ed Ryckman, Stella Brandby. O. Edith Scott, Giles Personius, H. C. “Pike” McCready, A. D. LaDue, James Stark, Walter H. Brophy, J. L. Clif- ford, L. H. Sanderson, Frank E. Cave and Rose Zlever. The name of the last mentioned was not in the orig- inal indictment as having contributed to the fund. The defendants all were indicted on similar charges by the grand jury at Fargo recently but a demurrer to the second charge, brought by their attorneys, George Thorp of Fargo and E. D. Sinkler of Minot, was sustained by Judge Andrew Miller in federal court last Monday. Next Move May 22 It is understood there will be no new arrests and no arraignments un- der the re-indictments until May 22, when all the defendants will appear in Bismarck for trial in federal court on the original indictment sustained by Judge Miller. Additional evidence has been placed before the grand jury and is set forth in the indictment which charges unlawful solicitation. The new indictment charging con- spiracy to corruptly administer fed- eral acts is said to be stronger and more specific in its allegations than the one thrown out of court. It is held in the indictment that the defendants “wilfully, unlawfully, knowingly and feloniously conspired to and agreed that they would cor- ruptly administer and procure the administration” of acts of congress dealing with the administration of re- Mef “for the purpose of their own political interests and for their own financial gain and profit.” surm”|AMERICANS WIN IN ENGLISH GOLF TEST Capture Three of Four Doubles Matches in Opening Walker Cup Play j St. Andrews, Scotland, May 11.—(#) --American golfers’ first venture of the 1934 campaign in international competition was crowned with success Friday as the United States Walker cup foursomes won three out of four ,;matches from their British rivals. Eight singles matches will be played Saturday. Johnny Goodman, bold young U. 8. champion, and his stocky, square- shouldered partner, W. Lawson Little. made a runaway of their match with the crack British team of Roger Metered and Cyril Tolley, winning 8 and 6. The other American victories were scored by 50-year-old H. Chandler Egan and Max Marston, who de- feated the Hon. Michael Scott, British captain, and Sam McKinlay, 3 and 2 and Gus Moreland and Jack West- land, who conquered Harry Bentley and Erick Fiddian, 6 and 5. Francis Ouimet, bespectacled cap- tain of the American side, and George T Dunlap, Jr. American amateur Women on Trial In Kidnap Case These two women are on trial in Sioux Falls, S. D., in the closing act of the sensational kidnaping case of Charles’ Boettcher If of Denver, freed for $60,000 ran- som. Above is Mrs. Elvina Koh. ler and below is Mrs. Verne San- key, sister-in-law and widow, re- spectively, of the plot leader wha killed himself in jail, SIRE OF KIDNAPED — DENVER BROKER IS CALLED TO TESTIFY Claude Boettcher to Be Witness Against Women Members of Sankey Gang Pierre, S. D., May 11.—(4)}—Build- ing its case against two alleged w men members of the Verne Sanke} kicnaping gang on trial as conspira- tors in the abduction of Charles Boet- | teher, II of Denver, the government Friday planned to call his father, Claude K. Boettcher, as the second of its 35 witnesses. The elder Boettchcr, reputedly marked for abduction by Sankey’s band before they decided to kidnap his son, is here to tell how Charles was ransomed for $60,000. Outlining the case against Mrs. Fern Sankey, widow of Verne Sankey, and her sister, Mrs. Alvina Kohler, district attorney Olaf Eidem said the gang first discussed kidnaping Claude Boettcher. Only an hour before the abduction on Feb. 12, 1932, Eidem said, was young Boettcher decided upon as the victim. He was the first witness ‘Thursday, briefly describing the kid- naping. Eidem’s outline of the case indicated the gcvernment is depend- ing strongly upon Gordon Alcorn, confessed Sankey lieutenant, to sup- port conspiracy charges against the two women. Alcorn, sentenced to a life term in Leavenworth federal prison is in jail here awaiting his turn to testify against the widow and sister-in-law| of his former chief, who committed suicide in the South Dakota peniten- tiary at Sioux Falls. Rugby Man Stricken In Moving Automobile Rugby, N. D., May 11.—(®)—B. 1; Steig, 52, died Thursday night as he was driving his car home from the railroad station, and the uncontrolled car plunged into the front of an un- Gertaking parlor. He had gone to the station to meet; his daughter, Alice, who was return- ‘ng from the Agricultural college where she is a student. Neither the daughter nor Mrs. Steig were in- Jured. Steig had been a merchant at Es- mond for 28 years and retired from business last fall. Since then the family has been living on a farm tear Silva. Funeral services will be at Inde- pendence, Wis.. his former home. Transfer CCC Unit To Water Service Information that a CCC unit at Watford City, heretofore designated [DESPERATE PLIGHT OF AGRICULTURE Is SHOWN BY SURVEYS | Cattle Are Thin and Emaciated; Some Reported Dead From Poor Feed |HAY AND PASTURE POOR Disaster Looms for Many Farm. ers in District From Can ada to Texas The desperate condition of Nortl Dakota agriculture as a result of une precedented spring drouth, was em- Phasized Friday from a variety of sources. Observers in this area reported cat~ tle thin and emaciated and that some have died, either of starvation or as | WHEAT PRICE DROPS Chicago, May 11. — (#) — The wheat market took a sudden drop | at the close today, carrying prices | down more than 4 cents below the early high figures and almost 2 cents under yesterday's finish. A wave of profit taking settled | over the pits just before the ses- | sion ended as traders capitalized on the advance of 17 cents a | bushel in wheat since April 25. A marked change in sentiment | Was apparent in some quarters, 1 ult of poor feed. This condition was said to be general throughout the western part of the state. | Ina statement at Fargo, Ben Kien- holz, federal agricultural statistician, said the condition of hay and pas- ture lands throughout the state as » whole on May 1 was the poorest since federal surveys were begun in the state. Since then dust storms and lack of rain have aggravated the condi- | tion. From several sources, however, | came indications that the government would extend aid to hard-pressed farmers in their struggle for existence. Will Extend Allotment George E. Farrell, head of the wheat {Section of the farm administration, (announced at Washington that the | production control campaign would be extended to May 16 to allow more farmers to sign. He said this would [act as a sort of crop insurance to farm= jeeewne may get nothing from their Han As he spoke clouds of dust, swept jeastward from the drouth-stricken area, swirled high over the national capitol, partially obscuring the sun. He expressed the view that, in some ‘ases. allotment payments would rep= resent the sole income of some farm- ers. University extension officials of Minnesota, North and South Dakota announced a meeting at St. Paul for Saturday at which the situation will be canvassed with a view to recom mending feed and seed relief measures to the government. There was a pros Pect, too, that government consent might be asked to use land retired under the wheat allotment for the Production of forage, including corn fodder. A Minnesota official said many farmers had borrowed money to buy seed and, facing the need for replant ing, were helpless. Kienholz’ estimate was that on May {1 tame hay was 38 per cent of nor- mal and pastures were 34 per cent of normal. Rye Outlook is Poor His report also estimated the con- dition of rye at 49 per cent of nor- mal, with an indicated harvest of 3,708,000 bushels. Last fall, tentative federal figures show, North Dakota, farmers harvested 3,712,000 bushels as compared with 4,885,000 bushels in 1931 and 12,089,000 in 1932. There was @ heavy rye acreage in ‘32 with favorable weather conditions. Reports to Kienholz indicated that, a8 of May 1, 618,000 acres planted last fall to rye would be harvested. Conditions here were paralleled by those in other parts of the north American continent from Canada to |Texas. Everywhere the story was the |same, bringing worry to farmer and. city man alike. The prairies and plains were parched and sunbaked and swirl- ing “black blizzards” filled the air. A note of hope was the forecast of \local showers Friday night in Nee braska and North and South Dakota, and in Iowa Friday. Elsewhere no relief was in sight. Freezing temperatures accompanied the decline of Thursday's dust storm in Eastern North Dakota and Minne- sota, the minimum temperatures be- ing 23 at Pembina and 24 at Grand Forks. Light showers have fallen in the Chicago area—the first in 28 days— and in Kansas, Oklahoma, and Texas, but they were regarded as = little value. The Chicago board of trade took cognizance of the situation ard the prices of all future deliveries of to work for the national parks service, | and had been transferred to the forest service and would operate as a water conservation titleholder, were the lone begins te dip their colors. Waging a losi battle all the way, Oulmet and eae The transfer brings to six the num- Sarle, sarely 98 copsody but were Der Of OOS ie See oe ree Jack McLean, 4and2, { Eric MeCruvie and |conservation in the state, McKinnon said. 4