The Bismarck Tribune Newspaper, January 6, 1936, Page 2

y - Morgan Wartime — Financial Expose Begins Tuesday Disclosures Expected to Influence New Neu- trality Legislation; Famous Financier_and His Associates to Face Inquisitors t € Py i t £ t t 8 v ¢ id b x ‘ } i Washington, Jan. 6. Nye and Senator Clark (Dem.-Mo.), co-author of a neutrality measure somewhat more drastic than the ad- ministration bill, both expressed the opinion that evidence in the Morgar case would influence the course of legislation to keep America clear of war. The legislation will be consid- ered early this week in congressional committees. Two Acts Harmonious Their measure, though contain! some’ more mandatory features, was in closer harmony with the adminis- tration-backed legislation than ex- ted. Pane and Clark felt there would be an amicable agreement. They indi- cated they were encouraged in this by President Roosevelt's statement that the United States “should do naught to encourage belligerents.” Besides providing for embargoes on munitions and other essential war ma- terials, both of the measures outlaw transactions in this country in long- term obligations of warring nations. ‘They permit the president to sanction only such short-time credits as are normal in peace-time. It is the contention of Nye and Clark that when these financial mat- ters come under discussion on the floor, the inquiry into the last war's money deals will play its part. Ledger Under Scrutiny Books and papers of the Morgan firm long have been under scrutiny, by the committee's investigators. The state department last September took charge of a truckload of the accounts 4n the capacity of mediator between the committee and the British and . French governments. Investigators examined the documents in a vault at the state department because the foreign governments objected to com- mittee custody of the “British govern- ment treasury account,” and those of the “Compte de l'Agence Commerciale Hu Government Francais.” ‘The accounts cover all business car- ried on by the Morgan firm for the two governments between the out- break of the war and the time the United States entered it. The financial houses contend their oper- ations had nothing to do with Ameri- gan participation in the war. WELFORD T0 AWARD BADGE FOR HEROISM ‘ Hebron Boy Scout Will Receive National Citation at Court of Honor Presentation of the Boy Scout her- vism award to Arnold Birkmaier of ‘Hebron will be made by Gov. Walter the Christianson district staged Wednesday night. Birkmaier saved John Pluth, Hebron, from drowning in the Knife creek. Announcement of award to the Hebron youth was from the national scout head- tly. state’s chief executive in addi- presenting the honor award ver the main address before Taylor, Richardton, Glen Almont, New Salem and Heb- mbled for the court of honor. tely 200 Scouts and Scout are expected to take part in , details of which: have ‘ked out by Commissioner M. A concert by the Hebron will open the program. of the court of honor will Sf AEEEE, pellet A VEEELE HH E Pi uf Policemen Arrested In Theft Ring Roundup Los Angeles, Jan. 6—(?)}—Ten per- (AP)—The ae Ree con ittee’s inquiry into wartime finances of J, P. Morgan an eevapany pete Tuesday, with Chairman Nye (Rep.-N. D.) and other members seeking to forge a legislative weapon to cut off eash and credit aid to fighting nations. Morgan, Thomas Lamont and other partners of the famous firm will be called to the stand. They are reported to have reserved 40 hotel rooms here for themselves and staff. PURCHASES MADE | OVER STATE’ LINE SUBJECT T0 TAXES Border City Housewives May Soon Be Forced to Obey N. D. Law North Dakota’s housewives, living in border cities, seeking bargains “ac- ross the lines” faced possibility of outlay of additional pennies in light - and Eadie Haskins, — ' Tough Lodging for Sleeping Beauties - | Little room and hard board are the accommodations provided for the tired chorus girls of Holly- wood, when they want to rest between scenes, as this picture shows. tbat evep tbese wooden benches couldn't prevent the enjoyment of forty winks for Gloria Quayle But so exhausting is their work Mill City Ju Aid Aga Incompetence and Indifference of an attorney general’s opinion Mon- day. Technically, under the ruling of As- sistant Attorney General Charles A. Verret, those seeking to evade the 2 per cent retail sales tax by pur- chasing across the state line must pro- duce the tax when they seek to bring their purchases back into the state. R. R. Smith, director of the retail sales tax division, was dubious, how- ever, of the ability to enforce provis- fons against normal household pur- chases. He awaited a conference with Lee Nichols, state tax commissioner, and J.J, Weeks, tax commission legal coun- sel, before announcing what plan of enforcement on purchases of clothing, food and similar articles would be fol- lowed. Principally, Smith expected, the opinion would provide foundation for stern enforcement of the sales tax law against out of state purchases of auto- mobiles and other extension equip- ment, on which the tax would be of “sizeable amounts.” W. J. “Pat” Flannigan, state high- ‘way commissioner, under whose con- trol rests the drivers license division, declared the opinion would not affect the policy of his department. Under the law, automobile owners must show they have paid their sales tax on their cars before a drivers license is issued. Flannigan said the department would continue to “demand receipts for the sales tax on cars” before driv- er’s licenses were issued, and in cases where drivers licenses had been issued prior to purchase of a car in another state, the licenses “would be revoked, if the sales tax is not paid.” Roosevelt Bans Cut To Two-Cent Postage Washington, Jan. 6—(7)—A con- tention that the postoffice department could not return to the two-cent let- ter rate at this time was voiced Mon- day by President Roosevelt. In his budget message to congress, Roosevelt said that “even with im- provement of the postal business, it is essential that the three-cent rate be continued.” U. S.-Mexico Agree On Silver Policies Washington, Jan. 4—(?)—Secretary Morgenthau reported Monday a “mu- tually satisfactory agreement” had been reached in silver conferences with Eduardo Suarez, Mexican fi- nance minister. ‘The conferences began a week ago and Morgenthau said “they have been concluded.” He refused to elaborate. KEENAN GETS POST Washington, Jan. 6—(/?)—President Roosevelt Monday nominated Joseph B. Keenan of Cleveland, Ohio, as as- sistant to Attorney General Cum- mings, a post which makes him third ranking official in the department of justice. Very Much Alive in Enforcement of Laws Is Found Minneapolis, Jan. 6.—(?)—Support ot civic organizations and citizens Monday greeted a plea by the coun- ty grand jury, made public Saturday, for united action against law-break- ing elements in the city, while most city and county officials withheld comment. Solidly endorsing recommendations of the grand jury for better enforce- ment of laws relating to rackets, li- quor, and licensing conditions were ministers, private citizens, the coun- ty bar association and the on-sale liquor dealers association. The final report of the grand jury, which spent two months investigating vice conditions in the city, drew heat- ed comment, however, from Chief of Police Frank Forestal. Forestal Takes Issue Taking issue with the grand jury’s assertion that there was “incom- petence and indifference in enforcing liquor laws,” Chief Forestal declared “we have enforced the law to the best of our ability. We know there have been violations and have made some arrests and would make more if we had the men. “Give us the men we should have to Properly cope with the situation and there is no question that we could reduce liquor law violation to almost nothing.” Refusing to comment on the report, until they had had additional time to study it were Mayor Thomas E. Lat- imer and County Attorney Ed J. Goff. Made Sermon Subjects The jury's attack on the liquor sit- uation and its warnings about the dangers of the spread of racketeering in the city were made the subjects of sermons in several of the city’s churches Sunday. - The grand jury in its report had charged that lawless elements have spread fear, “providing a fine back- ground for ‘collections’ and other men- acing ‘requests’ or demands upon business men and others over the city,” and called attention to several recent industrial clashes that have re- sulted in death and injury to citizens. No reference was made to the slay- ing here recently of Walter Liggett, weekly newspaper publisher. Mrs. Wirtz’ Funeral Set for Wednesday Rites for Mrs. Fred Wirtz, 23, who died Friday at a Mandan hospital, will be held at 9 a. m. Wednesday at ya Joseph’s Catholic church in Man- lan, nf Born March 29, 1912, in Mandan, the daughter of Mr. and Mrs. Stanley Hoffman, she attended St. Joseph’s parochial school. She was married to Fred Wirtz March 22, 1935. She was a member of the Ancient Order of United Workmen lodge. Besides her husband she leaves her parents, two brothers, Mart and Stan- ley. and four sisters, Mrs. Archie Bru- nell, Mrs, Jason Esson and Miss Chris- tine Hoffman, all of Mandan, and Mrs, H, A. Hogue, Los Angeles, Calif., who is expected to arrive here for the ry Seeks inst Lawless GIGGLING WOMAN IS QUESTIONED ABOUT MISSING N. Y. BABY Former Insane Asylum Patient Held After Boy’s Disap- pearance Is Reported + New York, Jan. 6.—(?)—Police and Psychiatrists attempted to wring Mon- Gay from the giggling phrases of an insane woman the story of the dis- appearance of 10-months-old Jacch Horowitz, whom they feared had ‘been drowned. Gussie Friedman, 45, who has spent 20 years in asylums, was held for questioning after she was apprehend- ed pushing a child toward the icy East river. Police sought to learn if she kid- naped the son of Mr. and Mrs. Max Horowitz from in front of his lower East Side home Sunday and dump:d him, with his carriage, in the rive.. She laughed eerily at all questious and replied only “nine o'clock.” Four hundred searchers, recruited from the neighborhood where the baby’s parents live, searched vacant cellars and flats for the infant. Po- ee launches joined the hunt on the river. Townsend Club Will Name Heads Tuesday Election. of officers for the ensuing six months will occur when the Bis- marck Townsend organization meets at 8 p. m., Tuesday, in the Burleigh; county court room. The officers urge that all members be -present to cast their votes. CHIROPODIST OFFERS ALIBI HE COULD NOT HAVEKILLED DOCTOR Police Think Slain Chicagoan May Have Been Victim of Mistake Chicago, Jan. 6—(#)—Arthur 8. ‘Thompson, a chiropodist, who admit- ted to Chief of Detectives John L. Sullivan, he had quarreled several weeks ago with Dr. Silber C. Pea- cock, brutally slain Friday night while answering a “mercy call,” of- fered an alibi which the police said Monday had been found substantial- ly correct. Thompson, the only suspect held for questioning, told the authorities he quarreled with the slain doctor in the latter’s office and was ejected. ‘The chiropodist told the authorities he accused Dr. Peacock of paying at- tention to his estranged wife and of performing an illegal operation. +. ‘The suspect dettied he knew any- thing of the doctor’s death and of- fered an alibi to prove he was in the apartment building where he lived at the time of the killing. He was held for further examination. Thompson’s wife, Mrs. Aline John- son Thompson, employed as a maid in Minneapolis, said she left Thomp- son last September, She recalled that she and her sister-in-law, Mrs. Ann Johnson, met @ man named “Doc Peacock” in a Chicago tavern last July, and said her husband be Jealous, “ Shown pictures of the slain pedia- trician, she said he was not the “Doc Peacock” she had met. Mrs. Johnson was taken into cus- tody but released after the police were convinced she knew nothing about the slaying. Sullivan said the possibility existed that the slain physician was a victim of mistaken identity. Important Facts of Money Message! Analysis of Fiscal Statement Gives Bird’s Eye View of Situation Important aspects of the president’s budget message, outlining a govern- ment fiscal policy to congress follow: National Defense—Total cost $937,- 791,966 for 1937, a lift of $193,000,000 over 1936. The navy would get 3067,- 872,400, much of it to be used to build up to treaty strength by 1942. The armty is to get 507 new airplanes more tanks, more armored cars, an increase in the national guard and more cadets trained at West Point. For the Great Plains—$1,000,000 to continue the shelterbelt plannings; about one third of the increase rec- ommended for the forest service. This activity was shifted from an emerg- ency to a regular basis. Liquor—Half a: billion in revenue from this source forecast. Improved quality, lower prices and other factors were said to be lifting consumption and taxes with them. Revenue for 1937 was estimated at $554,800,000, an increase of $143,800,000 over 1934 and of $51,700,000 over estimates for 1936. No Relief Figures Relief Expenditures—No figures given, these to come later, but the cost to be less than $2,136,000,000 and “far less” than this year. The CCC and WPA expenditures are taken out of the relief classification and made regular branches of the government. Included in the “ordinary” expend- itures also are $2,347,171,632 hereto- fore classed as emergency. This in- cludes $405,000,000 for public works, $619,347,000 for the AAA, $220,000,000 for the CCC and $1,102,824,632 for con- tinuing PWA jobs already under way. Carryover from current fiscal year $1,102,824,632, Debt Retirement—$580,000,000 to be used for retiring obligations already issued. Prospective Tax Collections—In- come levies expected to jump from $1,434,112,000 in 1936 to $1,942,600,000 in 1937. ° Estimated Income, Outgo Revenue vs. Expenditures—Esti- mated total revenue $5,654,217,650 (in- cluding process taxes under AAA, Guffey coal bill, railroad pension and social security taxes); estimated total expenditures (exclusive of additional relief appropriations) $6,752,606,370. Estimated ,Deficit and National Debt—On the above basis the deficit | will be $1,008,388,720 and the national debt on June 30, 1937, will be $31,- 351,638,737. Rate of Spending—Until July 1, 1936, spending to be at the rate of $21,339,- 900 each day with revenues at the rate of $13,893,000 a day. After July 1, spending to be at rate of $18,500,000 a day with revenues of $15,500,000 a day. Gems Worth $100,000 Seized by N. Y. Thieves New York, Jan. 6.—(?)—Four men escaped with jewels and uncut gems valued at $100,000 to $150,090 taken Monday in a midday robbery of the Greenleaf and Crosby jewelry store in Radio City. ‘The robbers worked swiftly and methodically, ignoring the throng of passersby on the street outside. Three employes were in the store at the time. Oranges were originally a pear- shaped fruit about the size of a cherry. Touhy’s Wife Held WORKMEN'S BUREAU FINANCIAL POSITION GOOD, SHIREK SAYS Operating Profit of $52,569.19 Shown by Audit of 10- Months Period North Dakota’s State Workmen’: Compensation Bureau is in “good nancial position,” State Accountant J. M. Shirek reported Monday to the .|state board of audits. Jesse Touhy (above), wife ot Tommy Touhy, organizer of the Touhy gang of mobsters, was held for questioning after her husband had been surprised in bed by Chi. cago police. Arrest of Touhy ended a three year quest for the little crime general. (Associated Press Photo) ‘STATE DEMOCRATS CHOSE LOCAL MEN Moodie, Glotzbach, Murphy to Address Outside Jackson Day Dinners Three prominent Bismarck Demo- crats—Thomas H. Moodie, state direc- tor of the works progress administra- tion; Frank L, Glotzbach, of the state federal housing administration, and R. B. Murphy, deputy superintendent of public instruction—will be prin- cipal speakers Wednesday at Jackson Day dinners in other state cities. Moodie will speak at the Mandan dinner, sponsored by the Morton coun- ty Democratic clubs. Other speakers on the program include John: Moses, Hazen, and R. F. Gallagher and John F. Sullivan, Mandan attorneys. C. D. Cooley, president of the Man- dan city commission, will‘give the ad- dress of welcome. © Rol B. \Cum- mings is in charge of the .arrange- ments. Glotzbach will address the Ward county Democrats at Minot, taking as his subject “Achievements of President Roosevelt.” Glotzbach is a nephew of William E. Glotchbach, Democratic national committeeman from North Dakota. Murphy is slated for the main talk at the Kidder county program at Steele. . Speakers for the Bismarck banquet, scheduled for Wednesday at the Grand Pacific hotel dining room, have not yet been announced. The audit covered a period of 10 months from October 1, 1934, to July 31, 1935, ‘The bureau showed a net operating profit of $52,569.19 for the 10-months lod, Shirek reported, to swell the surplus fund of the department to $817,123.72. “Considering the fund as a whole,” Shirek said, “we find the business is in a good financial position with suf- ficient net income set aside as surplus to meet emergencies that might arise.” A total of $696,905.78 was received by the bureau in premiums during the 10 months covered by the audit, while other sources, including penalty on delinquent premium, interest and mis- cellaneous income raised the total in- come of the bureau of $782,500.56 for the period. During the same time, the bureau Paid out $325,608.47 in compensation expense, and $191,806.28 in medical ex- pense. More than 41 per cent of the department income went for compen- sation costs, and more than 24 per cent in medical expense. Administration took 6.78 per cent of the income, totaling $53,084.38. Since establishment of the bureau, April 1, 1919, @ total of $9,346,997 has been .collected in income, while $3,- 942,424.78 has been paid out in com- pensation and $1,971,228.93 in medica! expense, the two items totaling more than 63 per cent of the entire income of the department, the report showed. TWO PRISONERS ESCAPE Grand Rapids, Minn., Jan. 6—(P)— Sawing two bars on a window, two prisoners escaped from the Itasca county jail early ‘Monday. They are Edward Carpenter, held on a forgery charge, and R. T. Kerkendall, serving 90 days on an assault charge. Now You Can Wear FALSE TEETH With Real Comfort FASTEETH, a new, pleasant pow- der, keeps teeth firmly set. dorizes. No gummy, gooey, taste or feeling. To eat and lau in comfort just sprinkle a lttle FA! TEETH on your plates. Get it tod: at a good drug stores.—Advertis: ment. MENTHOLATUM Gives COMFORT Daily Washington Cab-Drivers Prove . Plymouth Costs Less to Run 30% OF CABS OPERATING ON CAPITAL’S PHENOMENALLY LOW » ta RATES ARE PLYMOUTHS funeral. rarer een > . | f Tcday’s Recipe | Stuffed Pork Chops * Choose double chops, for stuffing and make a slit through the center, toward the bone, with a knife. Rub each chop with % teaspoon salt, % teaspoon pepper and % teaspoon mustard, thoroughly mixed. Place 2 tablespoons of sage stuffing in each chop and fasten cut edges with wooden toothpicks if tiny skewers are not at hand. Sear in a hot frying pan for 10 minutes. Cover closely and bake in a moderate oven for one hour. Maintain a temperature of 350 degrees Fahrenheit during baking. ‘Husband Quits Liquor Guaranteed Home Treatment Brings ons, including two Los Angeles po- F z Iicemen, were in custody Monday as oe authorities pushed investigation of an alleged international diamond theft ring. A Japanese dealer in precious stones ‘was hunted as the “fence” in the dis- posal of more than $300,000 in dia- ‘monds stolen from a dozen large ho- tels here during the past year. Detective Captain Bud Curtis said the Japanese suspect had taken the Yoot by motor car to Mexicali, Mex- ico, whence it was carried to Mexico City by airplane and sold. Farmers Union Local Formed at Brisbane N. D. Jan. 6—Conrad president of the recently- Ask for the New DRIVER FRED HOUSE picked Plymouth for economy. PEOPLE LIKE CABS with the safety, comfort and smart appearance of big 1936 Plymouths. Gleva Smothers (above), 18-y old Omaha night club entertaine returned with her mo.her to Sioux Falls, &. O., after ner father had told police he was informed the gir) had been slain, The f; Louls Smothers, was unable to explain his “murder” story. (Associated Press Photo. . 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Plymouth's economy is the answer... gas and oil economy...low upkeep cost... amazing ability to stand up under the gruel- ing punishment of big-city taxicab service. General Manager Harry Wechsler, of the (City Cab Association—one of Washington’s largest—says: “We find Plymouth has the operating economy necessary to give good cab service at Washington's low rates. More than half our cabs are Plymouths.” Garage Superintendent Seigel, who esti- Plymouth drivers get around 18 miles to the gallon of gas—in city traffic.” In Washington, D. C., they know a Plym- outh costs less to run. You can compare “All Three”... and find out for yourself about Plymouth’s famed safety, reliabilityandcom- fort ....as well as economy! See your Chrysler, Dodge or DeSoto dealer today... he'll gladly arrange it. PLYMOUTH DIVISION OF CHRYSLER CORP. 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