The Bismarck Tribune Newspaper, October 2, 1934, Page 1

iy ‘North Dakota’s » ESTABLISHED 1873 v SUSPECT OFFERED GOLD NOTE; FRIEND SUBSTITUTED COIN Bronx Lumberman Positive of Alien’s Identity as Man Oldest Newspaper Who Made Deal NEVER CAME FOR PURCHASE Schwarzkopf Declines to Re- late Progress in Gathering Murder Evidence Trenton, N. J., Oct. 2—(7)—An as- sociate of Bruno Richard Hauptmann, Lindbergh kidnaping suspect, who ap- parently knew that the German car- penter was passing “hot” ransom money, was being sought Tuesday by the New Jersey state police. Col. H. Norman Schwarzkopf, at a press conference reyealed that “about February 14,” Hau} and a com- panion, still unidentified, appeared at. the lumber yard of Cross, Austin and Ireland, in the Bronx. Hauptmann ordered a small wood panel, which cost 40 cents. When William J. Reilly, yard sup- erintendent, Schwarzkopf said, was tendered a $10 bill by Hauptifmnn, he noticed it was a gold note and hesi- tated. The second man, without a suggestion from Hauptmann, offered correct change and the Lindbergh sus- pect immediately withdrew the bill. Reilly said the two men said they would return later in the day to get the panel, but they never came back Cor it. Identification Positive Schwarzkopf said Reilly “positively” identified Hauptmann from photo- graphs, but that he was unable to identify the second man from any’ photographs of others mentioned as, friends of the German carpenter. Reilly was to report at the Bronx county court house some time Tuesday to be examined further concerning: the visit of Hauptmann and his un- known associate. Ie will also try to identify the associate, the state police’ head said. ° Schwarzkopf revealed that a state police detective and an expert work- ing on the case were only a few feet away in another room when Haupt- mann and his friend arranged for the: purchase of the panel. State detective Lewis Borman and| Arthur Koehler, the wood expert, were in a rear office at the lumber yard at the very moment Hauptmann and the second man were talking to Reilly in the front office, Schwarzkopf said. Reilly did not know at the time Borman and Koehler were investigat- ors in the Lindbergh case. Reveal Schwarzkopt’s report that the metal thumbguard the baby was wearing) when he was kidnaped had been found along the new entrance road to the estate, about 200 yards from the gate ‘house. Previous theories have been that the child was taken over a road through the heavily-wooded section the Lindberghs’ white house on Sourland mountain. ‘The thumbguard was found by Betty Gow, who was employed as nurse for the child, and Elsie Wheat- ley, wife of the Lindbergh butler, a pd =e baby’ = gd before "s was ‘The state police had also revealed that footprints, which were found ‘and believed to have been those of! the main road.” Schwarzkopf said that the stolid Hauptmann has doggedly maintain- ed throughout all questioning that he was at his home in the Bronx on the night the famous kidnaping was committed, but could not recall (Continued on Page Two) Highway Department Spends $5,646,476 Total disbursements in the past fis- cal year of the state highway depart- ment amount to $5,646,476, the bien- nial report of the department shows. Of this amount, $133,736 was spent in operation of the department, while $3,898,546 was spent in highway con- struction, and maintenance. A bal- ance of $343,388 remained in the high: way construction fund at the end of the fiscal year, a total of $1,350,000 was received from gasoline taxes. From all funds, a total cash bal- ance of $456,818 remained. ‘The biennial report was a brief one, containing only statistics for the past A more comple! will be made December 15. + During the period covered by the report, three highway commissioners have held sway over the department; A. D. McKinnon, Frank - Vogel and present commissioner, succeeded Salis- bury a short time ago, on the form- tr’s resignation. ANNOUNCE DIVIDEND Butte, Mont., Oct. 2.—(}—Montana announced the + Power Co., quarterly dividend of $1.50 per share SAMUEL BANK CORPORATION | DENES CHARGE: OF STOCK SALE FRAUD Plaintiff Asks $2,261,250 in Suit Against Officers and Directors Minneapolis, Oct. 2—(#)—Ofticials; of the First Bank Stock corporation| late Monday denied emphatically that either the spirit or the letter of any law had been violated when it issued limited amounts of stock to employes at prices under the current market value and also below the figures at which the shares were be- ing offered for public subscription. ‘They made this statement in com-|his crash. menting on the filing earlier in the day in Hennepin county district court of @ $2,261,250 suit against a group of officers and directors of the First Grimes, s stockholder. The plaintiff is asking judgment in this sum for the benefit of the cor- Poration and its stockholders. He stock. alleges this amount represents losses sustained by the corporation through reputed “unlawful and fraudulent” diposition of the capital stock of the The transactions listed in his com- Plaint involve 32,000 shares of stock allegedly issued to 1,200 officers, directors and employes of the corpor- ation at $42.50 per share, while the “reasonable market value” is repre- sented by the plaintiff as $47.50 at the time of issuance; a this same stock by the defendant offi- to employes without any consider- ation. Grimes charges that some of these transactions, are in violation of an order of thé Minnesota Commerce authorizing registration of the corporation’s stock, and that others violate the laws of Delaware poration was under which First Bank Stock cor- organized. Named as defendants in the action are C. T. Jaffray, president of the corporation; Alfred E. Wilson, sec- retary. and treasurer; the First Trust company of 8t. Paul, executor of the estate of George H. Pfince of Richard C. Lilly, 5 J. A Oace, Julian B. Baird, A. McC. Washburn, N. Paul DeLander, Phillip L. Ray and the First Bank Stock corporation. . box to be questioned as to their busi- BISMARCK, NORTH DAKOTA, TUESDAY, OCTOBER 2, 1984 INSULL. i Magnate and 16 Co-Defendants Charged With Defraud-— ing Investors MAY LAST FOUR MONTHS Principal Defendant Has ‘Noth: ing to Say’ as Court Convenes Tuesday Chicago, Oct. 2—(P}—Four out of the first 13 men who took their ex- aminations to be jurymen in the In- sull mail fraud trial disclosed in questioning as the trial began Tues- day they had fixed opinions as to the guilt of Samuel Insull, Sr., deposed utilities magnate. Two of the four turned out under questions from Federal Judge James H. Wilkerson to be prejudiced against Insull because of unpleasant financial experiences with stocks in one or another of the 85 companies the utilities executive headed before A defense move failed to halt the trial as the first 12 prospective jur- ,0rs, candidates for a job which may take four months, marched into the ness experience, their opinions about Insull, and particularly as to whether they had lost money in any Insull Defense Attorney Floyd E. Thomp- THE BISMARCK TRIBUNE LABOR IN DEPIANT MOOD CHALLENGES INDUSTRIAL TRUCE say Peace Will Come Only Through Recognition of Collective Bargaining ASK FULL NRA COMPLIANCE A. F. of L. Convention Takes Up 30-Hour Week as Unem- ployment Remedy San Francisco, Oct. 2—(#)—A man- ufacturer’s challenge to labor to declare an industrial truce met with a coun- ter challenge Tyesday from American Federation of Labor leaders. Only when workmen are assured their full right of collective bargaining can peaceful methods of settling dis- putes replace the strike weapon, President William Green told the A. F. of L, annual convention. He called upon the National Asso- ciation of Manufacturers, which pro- posed a truce during which no at- tempts would be made forcefully to existing industrial conditions, “first publicly to announce they will obey the decisions of constituted au- thorities as the president suggested.” “Until such time as that announces its willingness to comply with the rulings of the courts and of the constituted authorities set up by the government under NRA, which rulings it has defied,” Green asserted, “no one will pay heed to its proposals, or challenges.” Said ‘St Green said labor is ready and will- ing to meet employers at the confer- ence table as urged by President Roosevelt. He insisted the challenge of the Manufacturers’ association is “subterfuge: Other labor leaders echoed his views. ‘The legislative program presented by Green, in which he stressed the 30- hour week as a remedy for unemploy- ment, is expected to oceupy much of the convention's time for the next two weeks. One of the first matters to be Wrought on the floor, some leaders in- dicated, will be the appointment to the new NRA board of Clay Williams, tobacco company president. Ira M. Orburn, president of the In- ternational Cigar Makers Union and secretary of the Union Trades Depart- ment of the A. F. of L., said he will bring the question before the ccnven- tion. He declared Williams’ “record is that of an opponent of the national recovery act and he has fought NRA codes from their inception.” To Hear Secretary of Labor Frances Perkins ‘was en route to the American Federa- tion of Labor convention Tuesday. Although her trip had been decided on before the president announced the experiment Sunday night, there ap- peared no doubt that Miss Perkins lenge to the array which charged the jurymen were improperly assembled. One point on which he based his claim was that not the regulation 100 names, but 101, had been drawn, the first being thrown back into the box. With the defendants filling a long row of chairs extending across one entire side of the courtroom, specta- ters crowding the heavy pews in the of|Tear, and reporters sitting two on & chair at the press table, special Assist- ant Attorney General Leslie E. Salter| ria the jurymen for the govern- ment. Nothing to Say : Insull, in a sack suit of the shade called “bankers’ gray,” was almost last of the 16 defendants to arrive in Judge James H. Wilkerson’s court on the sixth floor of the court house. “I have nothing whatever to say,” Samuel, Jr., who entered the corri- dor with him. Insull was first on the list of de- fendants. It was > list from the blue book of Chicago finance, including Stanley Field, banker and nephew of the late Marshall Field, Chicago merchant; Harold Leonard Stuart and Charles J. B. Stuart, president and vice president respectively of Halsey Stuart & Co. nationally-known in- vestment banking house. For tactical purposes, District At- torney Dwight H. Green asked the clerk to add the nime of Martin J. Insull, Samuel’s younger brother, and protege, to the roll in the mail fraud Probe in Death of Lakota Woman Ends Lekota, N. D. Oct. 2—(#)—The te report|coroner’s jury investigating the death of Mrs. Fred Keltzman closed its in- quest late Monday after receiving & formal report from Dr. G. A. Abbott, university chemical analyst, that only “ga few grains of strychnine” were found in the viscera. ‘The jury’s verdict that Mrs. Keitz- man died from “causes unknown” was followed by the announcement by State's Attorney Olaf M. Thorsen that the investigation would be con- tinued, ‘FRISCO FEELS SHOCKS case, after the 17 defendants had shaken hands all around and settled down for what may be four months of battling. Martin Insull is immune to prose- cution on the federal charge. He was extradited from Orilla, Ont.,on state charges alone. Maddock Appointed N. D. Agent of FERA Washingtop, Oct. 2.—(P)—Walter Maddock, former governor of North Dakota, said Tuesday he had been ap- pointed field agent for the federal Telief administration for North Da- kota and Montana. on its outstanding preferred stock, $6| San Francisco, Oct. 2.—(#)—Two|to attend conferences with the farm series, payable Nov. 1, 1934, to stock- holders of record at the close of busi- ess on Oct. 10. distinct earth Francisco at 12:21 p. m., Tuesday. A third shock was felt at 12:31 p. m. shocks were felt in San} ‘administration of the national wheat advisory committee, of which he is a member son's defense strategy was a chal-|the plan for a truce between cap- ital and labor, but that there would be no, general or group parleys with either side. PAYMENT OF WHEAT BONUSES 10 START Total of $98,000,000 to Be Dis- tributed to Signers of Contracts Fuster trate the far aeminietee The total includes first adjustment payments for the 1934 crop, at the rate of 20 cents per bushel on each co- operating farmer's allotment, and the remainder of the second 1933 pay- ments of nine cents per bushel. ‘The first 1934 payment is due this month and will total Approximately $28,000, approximately | ® tel INCREASE IN FLAX ACRES SUGGESTED BY BOARD T0 AAA Plan Not in Conflict With Pro- duction Control Program, Maddock Declares BONUS FOR RAISING MORE Recommend Levy of Process Tax, Compensation on Im- ports, Benefit Payments Washington, Oct. 2—(P)—A new departure in production on control for agriculture—increasing rather than curtailing acreage—is being considered by the farm administra- tion for growers of flax. Recommended by the national wheat advisory committee, a pro- posal would levy @ processing tax on home-produced flax, a compensatory tax on imports, benefit payments to farmers and system of acreage allot- ments by states. In these respects it would be modeled after control programs for ‘wheat, corn and other basic com- Modities, but the government would Pay farmers to raise more flax in- stead of placing a cash premium upon ® smaller crop. Although the program has not yet received the approval of Secretary Wallace and still is in a-tentative form, members of the wheat advisory committee predicted Tuesday it would be adopted and made effective for.the 1935 crop. Walter Maddock, former governor} of North Dakota and a member of the wheat committee, said the pro- cessing tax probably would be 30 or 4G cents a bushel. designed to luction, Maddock said the government would not be throwing its farm pfogfam into reverse because the theory of the agricultural ad- justment act was to regulate produc- tion, which, he said, did not neces- sarily imply reduction. The committee's recommendation, Maddock said, called for stimulating production to within 20 per cent of domestic consumption. The allot- ment ratio, he said, would seek to maintain the same proportion of pro- duction in the states a3 now prevails. For example, North Dakota would be alloted sufficient acreage to continue it as the leading producer, Montana, the second largest and Minnesota third. Production records show these to be the three ranking production states. CCDENTAL SHOT KILLS REITER BOY Child Dies Instantly When Dis- charge From Gun Hits Him in Side of Head Belfield, N. D., Oct. 2—(#)—Struck in the side by @ load of shot from an accidentally: gun, Joseph Anton Reiter, 2% year old son of Mr. and Mrs, Joseph Reiter, was instantly killed on his father's.farm north of here. . They had stopped at a well to fill with The gun 19-Mile Flight Into Stratosphere Planned Paris, Oct. 2.—(?)—A balloon high- thedral of Notre Dame cubic meters (147,- es Cards at Detroit — In High Spirits Detroit, Oct. 2—(7)—Frankie 5 Fordham Flash, his high-flying St. Louis Card- inals—including the Dean broth- ers—into Detroit today and plan- ned to send the National League Plot of Novel Said Adapted Claim Youth Killed One Sweet- heart so That He Might Marry Another DEATH PENALTY IS ASKED Prosecution Alleges Edwards Blackjacked Girl as They Swam in Lake Wilkes Barre, Pa., Oct. 23—(P)— The commonwealth presented the first of its witnesses today sgainst Robert Allen Edwards, the youthful hard coal surveyor it hopes to send to the electric chair in the “Ameri- can tragedy” slaying of Freda Mc- Kechnie. Mrs. George McKechnie, mother of the unemployed telephone operator, told the jury in low, halting tones, that Edwards once said Freda knew he did not love her, that he wanted to marry Margaret Crain, East Au- rora, N. Y., music teacher. The pleasant-faced middle-aged wife of an Edwardsville coal com- Peny “boss” described her daughter's romance with Edwards, which “sort of dwindled” after he went to college and met the Crain girl. Mrs. McKechnie described the rainy night of July 30, when, despite in Murder if American Tragedy | Retold in Court | ROBERT ALLEN EDWARDS SPEAKING PROGRAN FOR DEMOCRATS 1S lightning and wind, Freda and Ed- wards went out “for the evening,” and she did not return. She knew “something terrible had happened to Freda,” she said. Edwards Eyes Witness Edwards, watching the witness in- tently, shifted nervously as Mrs. Mc- Kechnie said Freda became “ill nervous and weak” last July. Mrs. ‘McKechnie said Bobby told her he and Freda “never had been intimate.” ‘That Freda understood him. Dr. E. L. Myers of Wilkes Barre, the last witness of the* morning, said Miss McKechnie called at his office the night of July 23. “What was your diagnosis, doc- tor?” asked Assistant District At- torney Harold Flannery. “Pregnancy,” he replied. two and a half months.” Freda’s body was found floating in “About Kthe lake’ after she and Edwards had gone swimming during a rainstorm the night of July 30. Harold Wannery, assistant district attorney, told the jury Monday night that the prosecution will prove Ed- wards promised to marry Miss Crain while plotting the death of the other girl. “We will show the intimacies of these two,” Flannery shouted. “We will show what was back of this crime. And we demand the extreme penalty —the electric chair.” MOODIE ENLIGHTENS BANGERT ON SOURCE OF GRAFT IN STATE Suggests He Keep Word by Sending Sam Clark $200 Offered for Revelation Minnewaukan, N. D., Oct, 2—(P)— Addressing a campaign meeting here Monday night, Thomas Moodie, Dem- ccratic candidate for governor, sug- gested that Charles Bangert, candi- date for the supreme court on the Langer ticket, send his check for $200 at once to Sam Clark, publisher of the Bismarck periodical, “Red Ink.” “I note from the Mayville Tribune,” said Moodie, “that in a Langer meet- ing at Mayville recently, Bangert of- fered $200 to any person who could prove there was graft in the Langer administration, “May I direct Mr. Bangert’s atten- tion to a letter written from New Eng- land, July 1, 1934, by H. J. Bohiman, a of which Sam Clark’s pub- “State Highway Department. “I was out campaigning the 26th and 27th. I hauled voters. I didn’t know what to,put down, so I put down smoothing the surface instead.” “H. J. Bohlman.” Bohlman was an employe of the highway department. “If this is not graft, I am interested in knowing what Mr, Bangert consid- ers it. We should be able to get a clear cut statement of legal weasel words from a candidate for the su- CHARTED BY EATON Candidates to Tour Central N. D. This Week; Will Invade Slope Monday Fargo, N. D., Oct. 2.—(#)—Itiner- aries of Democratic candidates for state and congressional offices for this week were announced Tuesday by John C. Eaton, chairman of the Democratic state central committee. Monday Henry Holt, candidate fc U. 8. senator, and Gus Lamb, candi- date for congress, spoke at Mohall. W. D. Lynch, candidate for congress, and John Moses, candidate for at- torney general, spoke at Finley Mon- day night. Thomas H. Moodie, gub- ernatorial aspirant, ana Walter G. McDonald, candidate for state audi- tor, addressed @ group in McDonald’s home town of Minnewaukan. Moodie and McDonald will speak at Landa at 3 p. m. and in Cando at 8 p. m. Holt and Lamb will speak at Bottineau in the even- ing while Lynch and Moses speak at Hatton in the afternoon and in Mayville in the evening. Wedesday John P. Jungers, can- didate for insurance commissioner, will join Moodie, McDonald and Lamb for a big Pierce county rally at Rugby at 2 p.m. Holt will speak at Upham the same afternoon, and at Granville in the evening. Lynch and Moses will speak at Hillsboro in the evening. McDonald is slated for an afternoon speech at Rolette and an evening address with Mr. Moodie at Belcourt. Thursday Holt, Lamb, Jungers and Klindworth, candidate for commis- sioner of agriculture and labor, will be at Anamoose in the evening. Lynch and Moses will speak at Gard- ner in the afternoon and at Tower City in the evening. Moodie and McDonald will be at Willow City in the afteroon and at Maxbass in the evening. Friday at Klindworth’s home town of Fessenden, Holt, Lamb and Jung- ers will speak at an evening meeting. Moodie, Lynch, Moses and J. R. Ken- nedy, candidate for railroad commis- sioner, will speak in Kennedy's home town, Valley City, at 8 p. m. Saturday, Moodie and Holt will speak at dedication ceremonies for Emmons county’s new courthouse at Linton in the afternoon. Saturday night Moodie, Moses, Holt and Kennedy will speak at Man- can. Lamb, McDonald, Jungers and Klindworth are billed for Max in the efternoon while Lamb and McDonald will speak at Martin in the evening. Sunday, Moodie, Moses and Holt will invade Moses’ home of Beulah. Monday, October 8, Lamb and Mc- Donald are scheduled for addresses at Sanish in the afternoon and at Watford City in the evening. Holt, Lynch, Jungers and Klindworth will speak at Napoleon in the evening. Moodie, Moses and Kennedy are slated for Beach in the afternoon and Dickinson in the evening. Injuries Sustained preme court. Let's have it. “If it is graft I submit Mr. Ban- gert should and no doubt will prompt- ly forward his check for $200 to Mr. Clark, who probably can use the money. This should ‘smooth surface.’” Moodie and Walter McDonald dis- cussed the issues set up in the Demo- In Mine Mishap Fatal Minot, N. D., Oct. 2.—()—Corliss Wagner, 20, mine worker, died Mon- day afternoon in a Minot hospital as the! result of injuries suffered when he was struck on the head and shoulders by a heavy pulley as he stood at the bottom of a 70-foot shaft in the Oscar Ecklund mine near Palermo. cratic platform at length. BANDITS RAID SCHOOLS Tokyo, Oct. 2.—(?)—Brigands ed two schoolhouses near Fenghan- cheng, Manchukuo, and carried off three teachers and about 100 pupils, all of them Chinese, said a Rengo (Japanese) news saeey dispatch Tuesday from Anti raid- The young man’s skull was frac- tured, and he suffered internal injur- jes of the chest and abdomen. Rushed to Minot for treatment, he died a short time after he was brought to the hospital. A misunderstanding of was reported Tuesday, resulted dropping of the pulley on Wagner. » it} Bottling The Weather cloudiness tonight, unset- ged tled Wednesday; rising temperature. PRICE FIVE CENTS War Scare Grips Japanese Hauptmann’s ‘Hot’ Money Pal Is Sought Insull Opens Fight In Utilities Fraud OFFICIAL PAMPHLET CALLS FOR ARMING Possibility of Conflict With So- viets Spreads Uneasiness Through Empire |MENTION U. S. AS THREAT ' Assert America Has Three Air- planes to Island’s One; Predict Trouble Tokyo, Oct. 2.—()—An official army pamphlet which urged Japan to make ready for a possible war with Rus- sia spread uneasiness among the na- tion’s economic leaders Tuesday. This was reflected on the stock ex- change. Leading shares declined on an average of two yen (about 60 cents). Newspapers said members of the cabinet as well as civilians were taken ‘aback by the army's surprising mani- festo, which proposed drastic changes in the nation’s economic life and in non-military government depart- ments. It asserted the United States ha. three airplanes to Japan’s one and that America wanted a navy larger than this country’s in order to sup- port vigorous policies toward the orient. Newspapers asserted General Sen- juro Hayashi, minister of war, would be questioned at the next cabinet meeting about responsibility for auth- orship of the pamphlet. A war office spokesman, asked if the Pamphlet was approved by Genera! Hayashi, who now is traveling in western Japan, declined to reply but said “I can state that the pamphlet expresses the views of the Japanese army.” U. 8. Admiral Quoted The pamphlet said the strength of the Japanese army prevented the Soviet from interfering with the power of the Jananese navy and made “fut- ile the threats” of Henry L. Stimson, former United States secretary of state. In this connection it referred tc alleged utterances of the late Rear Admiral Edward W. Erberle to the ef- fect that the American navy was cap- able of assuming any offensive neces- sary to enforce the “open door” policy in China. “Soviet Russia possesses 3,000 wai Planes; the United States 3,000, and China 500,” the pamphlet asserted. “If these nations combined, the air forces of the power surrounding Japan would total more than 6,000 planes. “Although diplomacy:can give as- surance that we will meet only onc enemy, we must assume that the ene- my will have at least 3,000 planes. Japan has only 1,000 planes. Car our armaments be said to be complet: with this poor air force? ... “Constant trouble along the Soviet- Manchukuo frontier, the increasing: ly challenging attitude of the Soviet: and Russia’s traditional unreliability make the future of Russo-Japanese relations uncertain. “We must develop military powei and equipment sufficient to cope with any change in the situation.” Heard In Britair The Japanese army pamphlet brought reverberations in the Britist: parliament where a charge that the Japanese are “deliberately preparing for war which they consider essen- tial” was placed before the British Labor party by Jack Mills of Dart- ford, a former member of Parlia- ment. Mills demanded that labor “ham- mer” from the British governmeni “the declaration that there shall not in event of war, be any assistance financial or physical, from Great Britain to help the state which has outlawed itself in the eyes of the civilized world.” The Dartford delegate declared “every trade represented here is slowly being battered out of exist- ence by the slave conditions in the Japanese industrial world.” ARTICLES FILED BY FOUR N. D. CONCERNS Motion Picture House and Bot- tling Company at Dick- inson Incorporated Articles of incorporation for four domestic concerns have been filed with the secretary of state, aggregat- ting s total capitalization of $100,000. O. J. Boyle, R. H. Butterwick and Sam Stern of Fargo are directors of - the Cass Realty Sony for wet articles of incorporation were with capitalization of $25,000. The concern will deal in gencral real estate business. The Anton Johnson Home Ap- pliance Company of Mandan liste Anton Johnson, Alice L. Johnson ano Carl Albers, all of Mandan, as direc- tors. Capitalization of $25,000 was filed. The concern will deal in gen- articles of incorpora! capitalization, It is the Coca-Cols company, Herman ‘William and Grace Rabe as direc- / | AGAINST INVADERS ¢