The Bismarck Tribune Newspaper, September 13, 1934, Page 1

ESTABLISHED 1873 Oldest. Newspaper ym) THE BISMARCK TRIBUNE BISMARCK, NORTH DAKOTA, THURSDAY, SEPTEMBER 18, 1934 The Weather Showers | and much cooler tonight; lay fair and cooler. PRICE FIVE CENTS Textile Riots Terrify East Du Ponts Disclose Billions in War Sales ] Reveal War Profits | MARYLAND CHOOSES |Plomasen Appointed (SKIPPER OF RESCUE OL) FOES T0 RACE] State Highway Head) SHPDELAYEDHEL?, SALES COOPERATION |= WITH ENGLISH FIRM _ REVEALED BY PROBE Corporation Was Able to Play Cash Dividends of 100 Per Cent in 1916 FOUR OF FAMILY TESTIFY Taxable Income Jumped From $4,642,534 to $127,574,- 725 in Three Years ‘Washington, Sept. 13.—(P)—Evi- dence. the E. I. du Pont de Nemours company and Imperial Chemical In- dustries, Ltd., of England, in 1982 en- tered into an agreement for “sales cooperation” for disposal of their) Products in Europe, Asia and South ‘America, was presented Thursday to the senate munitions committee. The committee also learned Gen- eral Douglas MacArthur, as acting secretary of war, had advised the du Pont company nothing in its files re- ferring to secret military plans of the ‘United States was to be made public in connection with the senate hear- ing. A communication stamped confid- ential referred to the fact that “a large production” of war materials ‘was to be assigned the du Pont company. With four members of the du Pont family present, the committee set out to draw a picture of how a large part of the profits was invested by the firm in other American industries, and of their ramifications in recent years. A financial statement showing the du Pont corporation now owns about $270,000,000 in capital stocks of about 20 other corporations in the United States and abroad was presented as the committee traced its financial ex- pansion since the war. Millions Paid in Bonuses ‘The committee also learned that $17,000,000 in bonuses was paid offi- cers and employes of the E. I. du Pont de Nemours corporation between 1914 and 1919. During that period the corporation filled $1,245,000,000 of World War or- ders. The largest bonuses were paid in 1916, the year before the United States entered the war. That year bonuses totaled $6,514,000. ‘The testimony was given principally family, Trenee, Lammot and Felix, sat listening. Chairman Nye, seeking to develop what percentage of other companies the corporation had acquired, read a list of concerns in which the du Pont firm had an interest of $200,000 or more. The list included: The ‘Works, the Italian Celluloid Com- bape, the National Ammonia Com- Describing the company’s holdings, du Pont said its interest in General of stock, which it carries on its a value of slightly more than $15 per contrasted with the present oe value of approximately $29 per share. This is about 24 per cent of outstanding Genera! Motors stock. Attention also was given personal finances of the four leading members Broken Arm Caused ‘Distress’ of Ship San Francisco, Sept. 13—(P)—A broken arm sent radio stations in Atlantic, Pacific and Gulf of Mexico ports on @ merry-go-round chase for & SinRe sip enn, Three’. The supposedly distressed ship was the freighter Hawaiian, bound from ‘New York to Los Angeles. And the “distress call” was request for a doc- tor’s advice on how to treat @ brok- Mr ee podge fusion of wirt A hodge con! e- Yess stations was clarified at 7:45 a. m. when the Mackey radio station here talked with the steamer Santa Catalina which was alongside. ‘The weak radio calls for medical mssistance were interpreted by the andi from New Yorr to San Diego, on an eight hour wild goose chase for the “sinking ship.” VAN METER'S GIRL PLEADS (01 womah companion Homer Van Meter, pleaded guilty ‘Wednesday to harboring the outlaw. | Reveal War Profits , IRENEE DUPONT War-time profits of the E. I. du Pont! con; de Nemours corporation were so great that the powder-making concern was Able to declare cash dividends ot 100 per cent on its common NCD YOUTH, CHARGED WITH AUTO THEFTS, SHOT IN GUN FIGHT Casper Hodgson, Gardner, Cap- tured; Escaped From T: ing School in 1933 Detroit Lakes, Minn. Sept. 13.—() —Shot in the back in a running gun fight with Sheriff H. L Johnson of Becker county, Casper Hodgson, 20, of Gardner, N. D., who authorities say has stolen 50 automobiles in this vicin- ity, Thursday lay in a local hospital in a serious condition with five bullet wounds in his body. . _Hodgsol woods and the sheriff fired four times, pekinese zene in eoanece an .e08 see. Despite his wounds, he ran two miles through a forest, emerged on a country road where he commandeered % car after forcing out two women Occupants and drove several miles, where be euaricoea be Lies car ane Soha none 12 Ka shally Hodgson’ ete moat Rhett Soestos the wounded man recovers, he will be The automobile in which Hodgson was found sleeping Wednesday was stolen in St. Cloud, the sheriff said, Hodgson is alleged to have robbed two country stores near here Satur- day and Monday. In June, 1933, he and two companions, Clifford Overby and Charles Bushard, escaped from the state training school at Mandan, N. D. The latter two were caught here after the trio held up an oil station. They were now serving terms in the state reformatory. . AAA Regimentation, Dickinson Declares |fenea': *Vebarged with burglary. als0 ‘Waukon, Ia., opt 13.—()}—Senator L. J. Dickinson of Iows, leader of the Re senatorial attack on ad- of Henry Wallace, secret of agri- culture, and challenged that the lat- ter’s advocation of an “economic IN FALL ELECTION|} war-time Ghiet, 741|4,., Ritchie Re-Nominated, to Seek Fifth Term Against Harry W. Nice GEORGIA BACKS NEW DEAL Talmadge Given Endorsement by Landslide Margin Over Two Opponents (By the Associated Press) Nomination of two ancient political foes to make the November guberna- Maryland Democrats named Gov- ernor Albert C. Ritchie for a fifth term in office. Maryland Republicans nominated Harry W. Nice, the man Ritchie beat by only 165 votes when he ran for his firm term in 1919. The nominations of the old political foes were assured Thursday on the basis of slow tabulation of the vote. New York Republicans and Demo- crats made nominations in their pri- mary election Thursday for 43 rep- resentatives—the largest state delega- means election—in a landslide victory Over two opponents. A turn-over in the parece! delega- tion to congress was in prospect as incomplete returns showed three of the 10 representatives trailing in their Maryland's primary fight over nominations to the senate also was marked by intense interest. Although jhe ran.bebind Governor Ritchie in the popular vote of the first 1,078 boxes to report, George L. Radcliffe, ~ candidate for the Democratic nom- ination for senator, was assured the nomination. The Republicans’ three cornered contest for the senatorial nomination was so close, with 870 voting places heard from, that the second choice votes probably will determine the nominee. Ex-Senator Joseph I. France led with 15,265. Ex-Congress- man John Philip Hill was second with 14,838. C. Wilbur Miller, Baltimore business man, stood third with 14,478. Early returns strongly indicated that the Democrats had renominated each of the six members of congress now representing the yee Tuesday's Primary Result Returns from Tuesday's em showed: In Michigan, Frank A. Picard, ar- “|dent Roosevelt man, was the Demo- cratic choice to oppose Senator Arthur H. Vandenberg in November. Arthur J. Lacy was given the Demo- cratic nomination for governor over the incumbent, William A. Comstock, to oppose the Republican Frank D. Fitzgerald. Colorado Democrats re-nominated Governor Ed C. Johnson after a close contest with Miss Josephine Roche. Johnson will be opposed in the gen- eral election by Nate C. Warren, Re- publican. Senator Huey P. Long rode rough- shod over the last remnants of op- Position to his rule in Louisiana— Mayor T. Semmes Walmsley’s New Orleans faction—as Long’s candidates swept in above Walmsley’s. Senator Henry F. Ashurst Governor B. B. Boeur of Arizona won Democratic re-nomination, and Rep.. Isabella Greenway, close friend of the Roosevelts, made a runaway of the Democratic nomination for rep- resentative-at-large. The Republican Senator Warren R. Austin was re-nominated in Vermont to oppose Fred C. Martin, a New Deal champion. New Hampshire Re- publicans nominated H. Stiles Bridges for governor, to oppose John L. Sul- livan, Democrat. Lewis B. Schwellenbach was nomi- nated by Washington Democrats for the senatorial seat from which Sen- ator C. C. Dill, Democrat, is retiring. He probably will be sopona by the Republican Reno Odlin. Shaft Promoted to and N. D. Guard Captain It’s Captain Harold D. Shaft now. Appointment of North Dakote’s as- | Whi sistant attorney general, who will soon pole into eee Practice, was an- Thursday by the adjutant general's office. Shaft, who eerved in the World War, was appointed a captain on the inactive list of the guard in the judge ee Find 32 Rattlers; "Keep One for Pet Dickinson, N. D., Sept. Weer JOHN J. PERSHING Vittel, France, Sept. 13.—(P)}— General John J. Pershing, ob- served without ceremony Thurs- day the seventy-fourth anniver- sary of his birth. TAXPAYER HIT BY FORMER POLICY OF MILL AND ELEVATOR Husby Says Eastern Buyers Fattened at Expense of North Dakota Farmers Belief that the taxpayers and the present state industrial commission have been “jobbed” by the recent management of the state mill and elevator was expressed Thursday by John Husby, industrial commission member, after surveying contracts entered into by the mill management during June and eerly July. Many of these, Husby said, call for the delivery of flour to eastern buy- ers at prices below the cost of the materials entering into it. Milling, freight and other charges add to this loss and Husby forsees the possibility of the mill losing as much as $100,000 in filling these contracts alone. During June and July, Husby said, contracts were entered into for the pale of 150,000 barrels of flour at prices which average 50 cents a bar- rel less than milling cost. Analyzing 10 of these sales, ad- mittedly among the worst, Husby found that on 19,050 barrels of flour the state took a total loss of $14,809 in cash. That is, the cost of placing the flour in the buyers’ hands ood that amount in excess of the money re- ceived for it. This figure, ey ” aid, makes no allowance for such other charges as interest on the mill bonds and depreciation of the mill buildings ‘The first sale listed is one of 500 barrels to Sprague, Warner and com- barrel. i i E Thursday Following Salis- bury’s Resignation ROBINSON IS ADVANCED Change in Department Nec: sitated by Severe Iliness of Former Chief T. G. Plomasen, state maintenance engineer, was appointed state high- way commissioner Thursday by Act- ing Governor Ole H. Olson. He succeeds Burt M. Salisbury, Minnewaukan, who resigned because of illness, masen’s duties as head of the main- tenance division. Salisbury’s resignation was accept- Physician to take a complete rest. Salisbury is suffering from extreme nervousness, aggravated a week ago by an attack of appendicitis. He is resting at his home at Minnewaukan under a phy- sician’s care. Plomasen, for many years head of the maintenance division of the state highway department, severed rela- tions with the department when Frank A. Vogel became highway com- missioner under the administration of ousted Gov. William Langer. When Vogel was ousted from office because of his conviction of a felony in fed- eral district court, named commissioner. He appointed Plomasen maintenance engineer on Aug. 6. Plomasen had served as county en- gineer of Billings county until 1911, when he became superintendent of highways in that county. In 1913, els was appointed county engineer Golden Valley county, continuing un- til 1921 when he became ‘construction work -with -the state highway department in Golden Val- ley county. Two years later he was ited maintenance engineer of assistant maintenance engineer will remain un- filled, Plomasen said. The new main- tenance chief will combine the du- ties of head of the division and assist- ant as an economy move. SEES RATE RAISE AS RUINATION FOR LOCAL INDUSTRIES Traffic Experts Tell Bismarck Confronted with the possible ruina- tion of North Dakota industries through what has been branded as “manifestly unfair” _five-per-cent freight rate increase in North and South Dakota and western Minne- sota over the proposed general ten- per-cent increase, rate experts Wed- nesday issued a plea for funds with which to properly present the case before the Interstate Commerce Com- mission. “Why this section of the country should be singled out and with the additional load is beyond understanding,” Ben C. Larkin, North Dakota railroad commissioner, told members of the Bismarck Association of Commerce, members of the traffic committee and interstate shippers at. a meeting held here Wednesday night. “It is surely not because we are pros- perous,” he pointed out. Death to the lignite coal industry in the state was predicted by E. M. Hendricks, manager of the Lignite Operators association, if tife proposed rates go into effect. The increases ;}asked by the railroads on lignite are | over 100 per cent greater than the in- creased on other coals, he said. Prank P. Aughnay, rate expert for the railroad commission, pointed out that an additional $4,250,000 would be taken out of the pockets of North Dakota farmers and business men because of the proposed raise on all Grain, dairy and coal shipments. “We must have the united support of every North Dakota city to suc- cessfully combat the railroads in this case,” he concluded. A loss of all rate advantages gain- ed since 1922, which have resulted in innumerable new businesses and dis- tributing warehouses, will be inevi- table if the new rates are accepted, N. E. Williams, rate expert of the Fargo Traffic association, said. The proposed increase will result in the movement of &ll distributing centers back to the Twin Cities, where they were before the reductions were obtained, he said. Data relative to the position of the state regarding freight rate costs were presented in a report of the railroad commission. The figures showed a decided pyramiding of rail- road rates during a period of decreas- ing income for North Dakota farm- ers and business men. Following the presentment of the case, the Bismarck association voted to contribute the sum requested by the rate experts. John A. Larson, chairman of the association, presided at the meeting. Makes Announcement | ‘was| son, told the board he OFFICERS TESTIFY Willmott’s Remains 's Remains Taken From Morro Castle, Ordered Held by Government INVESTIGATION PROCEEDS Another Name Added to Toil as Aged Passenger Succumbs to Pneumonia New York, Sept. 13—(4)—The first and third officers of the liner Presi- dent Cleveland Thursday told a board of inquiry investigating the Morro Castle disaster that they no longer wished to serve with Capt. Robert E. Carey, master of the President Cleve- land, because, they charged, Carey de- layed in sending lifeboats to aid the burning Morro Castle. The third officer, Harold Peterson, of San Mateo, Calif. told the board he had asked that he be re- Latteny of his berth under Captain fare! “Even if you believe the captain's only fault was an error of judgment?” Peterson was asked. “There should have been no error of judgment,” he replied. Peterson said he believed more lives could have been saved from the Morro Castle if the President Cleve- land's lifeboats had put out sooner. No for Skipper The first officer, James H. Hender- no longer had “any respect for the master” because of his failure to get lifeboats launched faster. He said he would ask to be relieved of his command if Capt. Carey was not removed. Henderson said he thought there “too much” delay in getting the of| lifeboats away from the President Cleveland. He said that when the on| President Cleveland came in he could see persons hanging from the stern of the burning steamer and the crew on the foredeck. He quoted another officer as say- ing: “We got to do something.” William Francis Price, Brooklyn policeman who was a passenger on the liner, testified that he pointed a gun at a man, apparently a crew member, who was about to leap from the burning ship into a lifeboat, and shouted: “You're a dead man if you jump!” He said the man did not jump. Paul Arnett of Brooklyn, another passenger, said he turned in a fire alarm on a wall box before 3 a. m. (E. 8. T.) and later was taken off on a life boat. Much Drinking on Board Arnett testified to “considerable drinking” on board that night. Arnett said the crew was sober, how- ever, He went off in one of the first boats. “How were things in the boat— orderly?” “Not very,” Arnett replied. “The sailors didn’t seem to know much about handling the boat.” Lena Schwarz, a stewardess on the Morro Castle, said the fire alarm awakened her. She told of getting passengers to hold hands so she could lead them. Asked what her station was in an emergency, she replied: “I don't know.” “Truthfully did you get instructions as to what to do in case of fire?” “I did not.” “Did you have fire drills?” “I never went to one. We had them every week.” Meanwhile, another name was add- ed Thursday to the Morro Castle death list, bringing the total number of dead and missing to 134. William Hassler, 71, died shortly before Wednesday midnight at Belle- vue hospital. Hassler, a passenger, was taken from a rescue ship Satur- day afternoon suffering from pneu- monia. Body Found Shortly after Hassler's death here, two fishermen at Manasquan, N. J., came upon the body of Charles Elias, 54, who also was @ passenger on the cruise liner. He had been listed as missing. Only Wednesday hope was express- ed that Elias, president of the Pas- saic, N. J., Glass Works, might have survived the disaster. His name was called in the court of common pleas at Paterson, N. J., for petit jury duty. ‘There was no answer. Still another macabre note was struck when all that remained of the body of Captain Robert R. Willmott was brought ashore Wednesday from the liner, beached off Asbury Park, N. J., and ordered held for examina- tion by government chemists. ‘The office of the federal district at- torney, which is conducting a grand jury investigation of the tragedy here, declined to discuss the purpose of the chemists’ examination. It has been testified by officers of the Morro Castle that Captain Will- mott died following an attack of acute indigestion Friday night — several hours before the fire broke out on the Miner. Some reports said today that the chemists would seek to determine if Captain Willmott was poisoned, VALLEY LUMBERMAN DIES Minneapolis, Sept. 13—(#)—Char! C. Allen, 71, who was engaged in the lumber business in the Red River valley for 40 years, died Sunday at Palo Alto, Calif, Born in Vermont, he traveled westward with his par- ents and helped to settle the “Jim” river valley of Dakota. Poisoned? Skipper ° | ° ROBERT R. WILLMOTT All that remained of the body of Captain Robert R. Willmott was brought ashore from the ill-fated Morro Castle Wednesday and ordered held for examination by government chemists. He died the night preced- ing the disaster from “acute indiges- tion” but authorities plese he may have been poisoned. FEDERAL JUDGES 10 DECIDE UTILITY TAX CASE IN MILL CITY Suit Beginning Friday to Test Legality of 12 Per Cent Gross Earnings Law Final submission of the question of ccnstitutionality of North Dakota’s 12 ber cent gross earnings tax on utilities will begin Friday before three federal court district judges at Minneapolis. Involved in the suit, brought by six utility companies operating in the state, is a total of approximately $700,000 in taxes which would be col- lected on the basis of the tax law, passed in 1933. Oral arguments and written briefs will be submitted by counsel for the state and attorneys for the plaintiff utility companies. Collection of the tax has been prevented by an injunc- tion obtained in the federal court by the companies, pending disposition of their claims. ‘The concerns maintain the law is Unconstitutional, basing their asser- tions on the fact the law was passed March 6, 1933, three days after the legislature adjourned, in a session at which the clock was “turned back.” They further allege discrimination in the act, maintaining smaller inde- pendent companies are not subject to a judges will constitute a spe- cal en banc court to hear the argu- ments. Among them will be federal Judge Andrew Miller of Fargo. eral days. Attorney-General P. O. Sathre, State Tax Commissioner J. J. Weeks and J. M. Hanley, assistant to Sathre, will appear. Testimony of witnesses in the case was taken June 19 at Bismarck, be- fore special master in chancery Agnes McMichael. Preske to Be Buried At Goodrich Friday Funeral services for Herman G. Perske, president of the First Na- tional Bank of Goodrich, N. D., who died at a local hospital Tuesday, will be held at 2:30 p. m., Friday at the Baptist church at Goodrich. Rev. G. W. Stewart of Mandan will officiate. Mr. Perske was born Dec. 6, 1852, in Prussia and came to the United States at the age of 19. He lived for a year in Wisconsin and then moved to Anoka, Minn., where he was in the cooperage busines’. While there he served as register of deeds for six years. Later he moved to Minneap- olis, where he worked for the Pills- bury Milling company. He came to Goodrich in 1905. He helped to organize the First National bank and has been president of the organization since 1921. At Anoka he was a member of the Odd Fellows and the Knights of Pythias lodges. Blackmailing Ring Exposed in Canada London, Ont., Sept. 13.—(#)—About $25,000 was reported to have been extorted from half a dozen London businessmen as police Thursday sought to smash an alleged black- mailing ring. Many citizens viewed the revela- tion of blackmailing in the commun- ity as alarming evidence of growth of a type of crime from which the dominion had regarded itself im- mune. Energetic police action was demanded. Three persons, Mr. and Mrs. Frank ‘les|Taylor and Mrs. Mae Turnbull, are under arrest, held without bail. SUE CAROL DIVORCED Los Angeles, Sept. 13.—()—Sue Carol, brunette movie actress, was granted a divorce Wednesday from Nick Stuart, Rumanian film act Arguments are expected to take sev-| FEDERAL TROOPS 10 MOVE INTO AREA OF STRIFE IF NEEDED )One Killed, 7 Wounded in Bloody Fighting at Woonsocket During Night MORE TROUBLE PREDICTED Hoodlums Loot Stores, Break Windows in Business Section; More Violence Seen (By The Associated Press) The Rhode Island legislature was called into extraordinary session Thursday and wholesale arrests of Communist agitators were ordered, as Governor Theodore Francis Green obtained a promise from President Roosevelt to send federal troops into Rhode Island, if needed, to quell tex- tile strike disorders, Secretary of War George H. Dern, in Boston, informed of the situation in Rhode Island which has resulted in rioting by thousands of persons in Woonsocket and Saylesville, the in- juring of scores of persons and de- struction of thousands of dollars worth of property, said 2,000 federal troops would be sent into Rhode Island if necessary. With Rhode Island's National Guard already taxed by demands for its services in the two textile centers, Governor Green called upon leaders of veterans’ organizations to supply 1,000 men to be mustered into emer- gency service and supplied with state military equipment. Arrest All Communists The arrest of every Communist in Rhode Island was ordered at 9 a. m. In announcing the arrest order, Green said he believed the furious rioting of the last two days in the textile strike was inspired by Com- munists. Every chief of police in Rhode Island received this telegram: “Ar- rest immediately and hold for ex- amination every known Communist for possible connection with riots and disorders in this state.” The special legislative assembly, the governor said, was for the purpoge of appropriating $200,000 for the hire and upkeep of veterans, National Guardsmen on duty, additional police, and for any other emergency that might arise. At the request of the governor, the directors of the Sayles Finishing Co., at Saylesville, scene of bloody strike rioting, agreed to close the plant at 5 o'clock Thursday afternoon. The directors pointed out that they had had no trouble with their own em- ployes, who desired to continue to work, but said that since the gover- nor made the request they would comply to avoid further conflicts. U. 8S. Troops Ready to Act In Washington, General Douglas MacArthur, chief of staff, and war department officials, framed plans to rush federal troops to the Rhode Island strike area if an official re- quest is made. Secretary Dern discussed the situa- tion with General MacArthur at his quarters at Fort Myer early Thurs- day and MacArthur immediately went to the war department for con- ferences with Major General Hugh A. Drum, deputy chief of staff and other officers. ‘War department officials estimate there are approximately 1,800 troops in the first corps area ready for im- mediate duty if called. Francis J. Gorman, chairman of the textile strike committee called upon all strikers to refrain from violence. Gorman at the same’ time renewed his demand to governors in the strike area to provide protection to strikers. He contended union men in the tur- bulent areas had been the victims of violence and not its instigators. High tension spread throughout Rhode Island Thursday after a fear- ful night of rioting and death at Woonsocket. Soldiers clashed with a wild running mob of more than 5,000. Volleys of gunfire were sent at the rioters at frequent intervals. One youth lay dead from gunshot wounds. Seven others were wounded, three critically. Until National Guardsmen rushed into the city, the police were over- whelmed. “More help or we'll perish” was the frantic cry of Police Commissioner J. Hector Paquin as he asked Governor Theodore F. Green to send federal troops. The rioting, accompanied by looting, was the worst outbreak in New Eng- land since the start of the textile strike. Hoodlums Run Rampant Hoodlums ran rampant through (Continued on Page 9 Warrants Issued for Kidnapers of Labatt Sarnia, Ont., Sept. 13—(}—With the issuance of warrants for two men, the search for the kidnapers of John 8. Labatt, brewer of London, Ont., took definite direction Thursday here and in the United States. Police of both countries were asz- ed to look for Albert Pegram, also known by several aliases, and David Meisner, named in the warrants is- sued Wednesday night. POST ABANDONS PLANS Oklahoma City, Sept. 13.—()— Wiley Post, globe flier, said here early Thursday that his famous plane, the “Winnie Mae,” was so badly damaged in his recent stratosphere test flight that he will be forced to abandon plans to brig in the London- Melbourne air derby. &