The Bismarck Tribune Newspaper, February 7, 1936, Page 1

Lik] THE BISMARCK TRIBUNE ESTABLISHED 1873 1935 PURSE LEVIES “HIGHEST IN NATION Attorney for Seven Appelants Asserts Unconstitutionality Is Without Question FARMER PARTICULARLY HIT Court’ Told Every Man, Woman and Child Is Paying ‘Un- conscionable Rates’ Whether North Dakotans will an income tax in the future—after having paid one for 17 years—was a question submitted Friday to the state supreme court for answer. Arguments on a constitutional at- tack on the 1935 law setting up new, increased rates on individual incomes, from collecting the tax, the appellants claimed the law violates both state and federal constitutions. Highest in Nation North Dakota’s first income tax law passed in 1919, with subsequent legis- letures amending the statute at var- ious times. Each time, the appellants claimed, the rate was increased, until the 1935 rate became, they said, “the highest in the nation.” i “Not only are the rates excessive, but every individual resi in the state—man, woman and Pay on any income they may have and the deductions allowed for ex- emptions are practically nil. “The present rates are so exhorb- itant and unconscionable and the fi- nancial burden to the average citizen would be so heavy it is no longer pos- sible or advisable to permit this law to go unchallenged.” Claimed deficiency in the state btere-g bieerrioue pe possible ae ation ww were attacksd the appellants’ briefs. Compare Taxes The legislature estimated the in- tax would produce $2,000,000 annu- ally. It now appears the sales tax sought to hide his crime by firing his victims’ lunchroom filling station. Cleveland said he needed the money to marry the girl “he had got into trouble.” PARTY CHIEFTAINS A Norris, Friend of Roosevelt, As sails Jim Farley’s Hold- ing Down Two Jobs Washington, Feb. 7—(?)—-Grumb- > | lings in the ranks and another threat otherwise exist by virtue of the in- validity of the income tax,” the ap- pellants argued. Supreme courts in the states of “to take a walk” came Friday as party chieftains sharpened their wits and their words in the campaign for and against the New Deal. Simeon D. Fess, former Ohio sen- ator and former Republican national chairman, hinted he may “take a in| walk” if Senator Borah (Rep., Idaho) their constitutions as has North Da- kota, and courts of those states have held income to be property within meaning of the uniformity clause and that a graduated income tax is vold under the uniformity requirements, the appellants’ briefs assert. They also maintained it to be “clearly settled by the supreme court of the United States that income is Property in the eyes of the law.” Termed Discriminatory Horace Young, Fargo attorney, termed the law ‘discriminatory, ca- pricious and arbitrary” and “clear! invalid.” He argued the income tax had orig- inally been advanced as a form of taxation to “replace ad valorem taxes” quite prev- alent in the United States, it did’ no! result in reducing property taxes, but proved to be merely additional taxes.” asserting be felt by agriculturists. 4 “A farmer, engaged in raising live- stock, would have from year to year, calves, lambs and colts,” he pointed out, “which are increases from his (Continued on Page Two) Hunting Dog Is Held Prisoner in Crevice 2 fox into the crevice. The fox man- aged to slip out the other side, where becomes his party’s nominee for the presidency. Senator Norris (Rep., Neb.), eager supporter of President Roosevelt, nev- ertheless hit again at James A. Far- ley’s dual role as postmaster general and Democratic national chairman. publisher, often listed as a Repubil- can presidential contender; Senator Dickinson (Rep. Iowa) who also has been mentioned frequently as a pos- sible nominee; and Jouett Shouse, president of the American Liberty league, at whose dinner table Alfred E. Smith uttered the threat to “take a walk” if the Democratic convention endorsed the New Deal. BISMARCK, NORTH DAKOTA, FRIDAY, FEBRUARY 7, 1936 Private Investigators Reveals Prostitution and Gambling on Broad: Scale Minneapolis, Feb. 7.— (#) —The Journal stated Friday J. M. Simmons, brought to the city by a citizens group, had told members of the Minneapolis real estate board “the underworld” operates extensively in the city “either with political protection or because of the ignorance of city officials.” “The underworld,” the Jornal quoted Simmons as saying, has divid- ed the city into four districts, each with its overlord, and that each clique is assigned with someone the job of political fixing. Every kind of gambling devise is operated, the Journal continued in its account of Simmons’ disclosures, along with prostitution on a broad scale. “These conditions could not exist,” the Journal continued quoting Sim- mons, “unless they were backed by someone in authority. This may be at the top or some place in the mid- dle, with those at the top of the poli- tical structure kept in ignorance of Teal conditions, “Activities of the present grand jury have put a severe damper on the underworld’s activities.” A grand jury now in session is con- tinuing investigations started by an earlier one which, although it re- ported learning of rampant racketeer- ing, returned no indictments because insufficient evidence. Police officials have denied laxity and inefficiency. The present grand jury indicted several persons for perjury failing to record previous convictions in ap- plications for liquor li@nse. Use Eye-Dropper To Feed Tiny Babe a lr il eA Oakland, Calif, Feb. .1.—UP)— ‘Tiny Nancy Vogt took her break- sway.an hour. before her next meal of 30 drops of prepated Friday is the fifth crucial day of the 15-ounce child’s life. If she survives Friday and Saturday, physicians said she will have an “excellent chance” of survival. She was born two months pre- maturely, ND, GIVES $1,208.31 FOR CHILD HELP AS ROGERS’ MEMORIAL Citizens of Bismarck and Im- mediate Vicinity Contrib- ute $507.41 to Fund North Dakota contributed $1,238.31 to the underprivileged children of the country by its participation in the ‘Will Rogers Memorial campaign, ac- cording to announcement here Fri- day by Kenneth W. Simons, state chairman. Of the total contributed $507.41 came from the citizens of Bismarck and immediate vicinity, thus proving again the manner in which residents of the capital respond to appeals made in behalf of worthy movements. Although no drive to obtain funds in the accepted sense of the term was made anywhere in the state, other tol communities also responded gener- DeWalt shot it, but the terrier could| virtue no get through. DeWalt has fed the animal every pther day by pushing food into the srevice on @ pole. Relief Agent Is Held Prisoner | by Clients y night he was met at the parish hall by 150 persons who demanded that there be no curtailment of relief. Fen- som asserted he was locked in the parish hall through the night, though there was no violence. ously with good will donations in memory of America’s best-loved hu- morist. The campaign ended in the state on announcement of the to- SHULDBERG DID NOT THREATEN LIGGETT, FEDERAL MAN SAYS Editor’s Widow Contradicted by Tax Agent Who Overheard Telephone Conversation TRACE CANN’S MOVEMENTS Suspected assin Left His Employer's Office 35 Min- utes Before Murder Minneapolis, Feb. 7.—(#)—A feder- tojal government employe Friday con- tradicted on the witness stand testi- mony of Mrs. Walter Liggett in the murder trial of Isadore (Kid Cann) Blumenfeld, former bootlegger, ac- cused of slaying the former newspaper publisher last Dec. 9.. Clark H. Carhart, chief investigator of the federal alcohol tax unit’ in St. Paul, the witness, denied Liggett was threatened by Meyer Shuldberg in a telephone conversation a few hours before the Midwest American publish- er died. ¢ Shuldberg is president of Chesa- peake Brands, Inc., a liquor concern, and was one of those men attacked by Liggett in his Midwest American | newspaper. Mrs. Liggett previously had claimed she overheard a _tele- phone conversation between Shuld- berg and her husband in which the former threatened to sue him for $100,000, and said “there are other ways to stop you,” referring to charges made by Liggett that Shuld- berg was operating a liquor cutting plant. Heard Conversation Carhart testified he sat in Shuld- berg’s office when this conversation took place and that no such state- ments were made by the liquor deal- er and neither did Shuldberg say to Liggett, “why are you calling me # rat and classing me with Kid Cann?” Previously. Shuldberg had complet: ed his testimony in which he disclos- ed Kid Cann averaged $500 8 month ,| for the last three months of 1935 and accounted for his own movements up to 5:50 p. m. Dec. 9. Liggett was as- sassinated at 5:41. He also accounted for the Kid’s movements up to 5:00 Pp. m, that day. Cross examined on a statement he gave police Dec. 11, in which he said he was “either a fool or sentimental” to employ Kid Cann as a salesman, Shuldberg expleined: “Mr. Blumenfeld came to me and said he wanted to earn a legitimate living and go straight. I was warned several times about hiring him and that’s why I said I was either a fool or sentimental. I’ve never regret- ted it.” Convicted Bootlegger The Kid had been convicted of bootlegging during prohibition. The defense brought out that Shuldbetg’s rectifying plant was under constant government supervision and the wit- ness testified he had never engaged in illegal cutting of whiskey. Previously, under direct examina- tion by Thomas McMeekin, counsel for Blumenfeld, the witness related (Continued on Page Two) Pekin General Strike Called Off by Labor Pekin, Ill, Feb. 17.—(?)—Business went forward as usual in this indus- chapter in the history of American labor— ® general strike to oust a police chief. Industry returned to normalcy after @ sudden decision by strike leaders to call off a “workers’ holiday” and withdraw threats of window smashing that forced stores and offices to close. Union members, estimated by their leaders to total 1,500, were dictators for 22 hours during enforcement of the strict closing order, which lasted from 3 p. m. Wednesday until 1 p. m. ‘Thursday. First Bank Stock’s Earnings Increased Minneapolis, Feb. 7.—(?)—The First Bank Stock ‘corporation, composed of 89 banking institutions in the ninth]. federal reserve district, said Friday in its annual report that 1935 consoll- dated earnings totaled $2,764,781.64, equivalent to 90 cents a share on 3,- 071,011 shates of stock held as of Dec. 31, 1935. * This compares with earnings per share of 83 cents in 1934. Net deposits of banks th the group increased dur- ing the year from $337,224,401.61 to $383,753,176:57. 000 LUMBERMEN TO ATTEND CONVENTION BEGINNING MONDAY Leaders in Industry Through- out Northwest to Be on Hand for Sessions Here EXHIBITS TO BE FEATURE Aim of Gathering Is to Help Dealers Serve Their Com- munities Better With more than 500 lumber deal- ers expected to attend the annual convention of the North Dakota Re- tail Lumbermen’s association, opening here Monday, members of the local ;committee were hard at work Friday putting the finishing touches to their Program. Plenty of entertainment will be offered the visitors but there will be plenty of business also to maintain the interest throughout the two days of meeting. Also serving to center attention of ibermen on Bismarck will be the housing and materials exhibits ‘in which more than two-score manufac- turers will participate. This is ex- pected to be the biggest event of its kind ever held in North Dakota and is an innovation at Jumbermen’s con- [ventions in recent years. Attending the convention will be representatives of wholesale lumber dealers and specialty houses who will find this a convenient time to make new contacts and improve old ones. Plan Salesmen’s Banquet The salesmen will be hosts to the visitors at the biggest social event of the convention, a banquet to be served at the Patterson hotel at 7:30 Tuesday evening. The detailed program for the banquet will be announced later. It will be a stag affair and the local committee Friday said there is cer- tain to be plenty of fun. Other entertainment features will be-m smoker and entertapiment tr the lower gymnasium of the World War Memorial building Monday evening and a luncheon for the visitors at the Memorial building Tuesday noon. This will follow a tour of the state capitol building beginning at 10 a. m., Tues- day. Automobiles for the trip to the capitol will be furnished by the local committee with the cooperation of the Association of Commerce. The convention theme will be to tell lumbermen more about their business and to help them to better serve their communities. In line with this idea, leaders of the industry in the north- west will be on hand to take part in the program and discussions. To Register in Morning Monday morning has been set aside for registration and visiting exhibits at the World War Memorial building with the first business session slated to get under way at 1:30 p. m. After music by the Bismarck Juve- nile band there will be an address of welcome by Mayor A. P. Lenhart and (Continued on Page Two) HOFF PRESIDENT OF HARDWARE DEALERS Resolve to Support Legislation to Eliminate Discrimination Against Independents Devils Lake, N. D., Feb. 7.—(P)—A. P. Hoff, Wishek, was elected president of the North Dakota Retail Hardware Dealers association at the closing ses- sion of the 40th annual convention here Thursday. He succeeds O. 8. Hilmen of Berwick. Other officers named were Harvey A. Neddaught, Westhope, and Peter Fugelso, Minot, first and second vice presidents; Miss Louise J. Thompson, Grand Forks, reelected Secretary- | Treasurer; and George J. Oley, Car- rington, W. J. Gust, 8t. Thomas, Loren Elenbaum, Langdon, J. J. Schmitz, Valley City, Dupont Bjelde, Mayville; Howard Connolly, Devils Lake ‘and Hilmen, directors. The executive committee will select lade 1937 convention city at a later ate, Resolutions adopted included: com- mendation of jobbers for their cooper- ation in lowering prices enabling the independent dealer to meet competi- tion; support of legislation designed to eliminate discriminations against independent trade; and opposition to the steady rise of local, state and fed- eral taxation. Rancher’s Typography Vague, Meaning Clear — The officials refused to accept rules the stockmen had been asked to draft. “Carpenter got made and told we hade to have a lot of rools and sregi- enone Saar £ne be oe not,” the In Shadow of During the trip from Goshe! wood smiled gaily. Electric Chair ‘Then in an instant terror clouded the emile—the grim walls of Sing Sing prison’s death house loomed before her. Fear written in every feature, the former Salvation Army lassie aud burlesque dancer huddles into her collar as she takes a farewell love at the walless world. She was sentenced to death for the mercy mur- der of her starving baby son, Year-Old Diven Boy Is Claimed by Death Winton B. Diven, year-and-a-half old son of Dr. and Mrs. W. L. Diven, 119 Avenue B. West, died at 4:30 a. m., Friday at a local hospital after an illness of only two days. The child was born August 1, 1934. He leaves his parents and one sister, Annette. Funeral services will be held at 2:30 Pp. m., Sunday at the First Presby- terian church with Rev. Floyd E. Logee, pastor, in charge. Burial will be made in St. Mary’s cemetery. MEN'S CHORUS WILL MAKE FORMAL BOW INBISMARCK FEB. 27 Varied Repertoire Prepared by 40 Male Voices for Concerts at Various Functions Bismarck’s Men's chorus will make its first formal bow to a local audi- ence at the City Auditorium on Feb. 27, according to announcement Friday by M. H. Anderson, president of the group. ‘The chorus, consisting of 40 voices, has been practicing twice each week at the new high school building ever since New Year's under the direction of Ralph Warren Soule. Enthusiasm of the members is indicated by the fact that attendance at each rehearsal has been good despite the cold weather and the pressure of other attractions, Anderson said. A nominal charge will be made for admission to the concert and any profits will be used to buy additional music. A contribution of $100 was obtained from the Bismarck Com- munity chest as an initial contribu- tion toward a musical library but this will not be enough to finance the purchase of sufficient music to com- prise a standard repertoire. It is hoped, Anderson said, to have the chorus learn ap} ely 40 numbers so that its songs may fit any occasion. Included in the group will be some sacred numbers and the chorus expects to present a concert of these pieces later in the year. It also 1s contemplated that the chorus will be available to represent Bismarck in “booster” enterprises calculated to cement the relationship between Bismarck and persons in the surrounding towns, provided these concerts are held in. the evening so that the chorus members will be free to attend. The first activity of the chorus, or- ganized just before Christmas, was participation in the Open Your Heart Tonight it will sing several num- bers at a meeting of the Elks lodge, and it also will sing several songs at @ night session of the Baptist church convention here beginning Feb. 17. DAHLQUIST ELECTED Crookston, Minn., Feb. 7.—(?)—The Red River Valley Development assoc- fation held its annual meeting at the winter shows Thursday and re-elect- ed W. E. Dahlquist, Thief River Falls, president. ¥ WALTER ALBRIGHT IS ELECTED PRESIDENT OF STATE GRAINMEN Conaway Succeeds to Secre- tary Post Left Vacant by Death of P. A. Lee Walter Albright, Bonetraill, was elected president of the North Da- kota Grain Dealers association by the board of directors bringing the state convention to a close here Thursday. Grand Forks was voted the 1936 convention next November, and a de- cision was reached to move state headquarters from Grand Forks to Jamestéwn prior to June first, as a more central location. Albright, president of the Williston Farmers Elevator company, succeeds Charles H. Conaway, Starkweather, who was elected secretary-treasurer, @ place left vacant by the death of P. A. Lee of Grand Forks. J. A. Bu- chanan, Buchanan, was re-elected vice president. Lagerstad on Board The convention named Victor Lag- erstad, Hampden, to succeed Conaway on the board of directors and re- elected Paul Anderson, Grafton, first district; Jacob Eckart, Martin, second district; Albright, Bonetrail, third distri ind Fred Klein, Beulah, di- rector at large. The executive committee consists ot Conaway, Buchanan and J. W. Pi- per, Buffalo. Resolutions adopted: Declared the commodity exchange bill now pending in congress contains provisions burdensome and injurious to the country elevator business and authorized association officers to di whatever they can to effect elimina- tion of such provisions. Hit Storage Clause Instructed officers to join with other interested individuals and as- sociations in an effort to repeal the grain storage clause in the agricul- tural adjustment act applying to stored grain, declaring it to be “un- necessary and harmful” to country elevators and pointing out North Da- kota already has strict regulations on stored grain. Declared certain truck operators engaged in buying and transporting grain were threatening local markets by their activities and called upon as- sociation officials to work toward adoption by the legislature of regula- tions which would protect the country elevator in country towns against “unjust competition.” Memorialized de: of the late secretary-treasurer of the association, P. A, Lee. Seven Persons Killed In Rioting Near Beirut Bierut, Syria, Feb. 7—()—Seven per- sons were killed Friday in a fresh out- burst of nationalist rioting at Hama, after 17 soldiers, 12 policemen and a number of civilians were injured Thursday in an earlier demonstra- tion. The troops fired on students after failing to overpower them in running battles through the street. The Weather Possibly snow and somewhat colder tonight; Sat. fair with severe cold. ‘PRICE FIVE CENTS | Republicans Pick Flaws in Farm Bill ., Citizens Level Verbal Guns at N. D. Income Tax Law ) Twpamsisert {Underworld Split Mill City 4 Ways ] State’s $5 Killer { SECRETARY'S POWER AND DISLOCATION OF AGRICULTURE CITED Roosevelt Reiterates Tax Need for New Program Will Be 500 Million Dollars SENATE PARTY LINES SPLIT Minority Contends New Pro- gram Harmful to Dairy Livestock Industry Washington, Feb. 7.—(4)—Unprece- dented powers for Secretary Wallace and “dislocation of agriculture” at the expense of dairying were flaws picked in the new farm bill Friday by seven Republicans of the house agriculture committee. They filed a minority report on tht subsidy-soil conservation measure pending in both house and senate. Al- most simultaneously President Roose- velt again estimated the tax need for the new program at $500,000,000, but said its form still was in the study stage. Party lines had split in the senate over the farm measure, with its con- stitutonalty challenged and defended. A small attendance caused by the heaviest snow in years prompted the Senate to recess until Monday after hearing a brief speech by Senator Pope (Dem., Ida.) in favor of ths farm bill. Pope Doubts Validity Pope said he would support the bill despite what he termed his “grave doubts as to its constitutionality.” With minor differences, both house and senate bills would provide a sys- tem of subsidies for farmers who would cooperate in withdrawing acre- age from commercial crop production. ‘The subsidies would go direct to the farmers or indirectly through states desiring to cooperate. ‘The seven Republican report sign- ers said Secretary Wallace and farm administrator Chester Davis testified before the committee “informally” that the greater part of the land to be taken out. of production through soil-conservat: activities wy be used for bee and dairy and livestock production would be in- creased materially. “We are opposed to a program which has for its purpose dislocation of agriculture in this country,” the Republicans declared. “i ly it is the purpose of the secretary to carry out the conservation program at the expense of the dairy and live- stock industry, which now faces a sur- plus condition. .. . “We do not attempt here to criticize an expansion of the dairy and live- stock industry in normal and natural manner, but we do object to any governmental program which has for its purpose the payment of a subsidy to one group of farmers at the ex- pense of another group engaged in an_honest agricultural pursuit.” The report was signed by Represen- tatives Andresen, Minn.; Kinzer, Pa.; Tobey, N. Ohio; Good- win, N. Y.; Hope, Kas.; and Gilchrist, Iowa. Rep. Boileau (Prog. Wis.) has filed a separate minority report ob- Jecting to the failure of the measure to stipulate that land taken out of production should not be used for dairy or other production for sale. Called Constitutional The majority’s report, by Chairman Jones (Dem., Tex.) emphasized that the AAA substitute was constitutional. President Roosevelt told newsmen Friday that no decision has been reached on whether taxes will be necessary to meet the cash payment of the bonus. Out of Thursday’s inventory of fed- eral spending, Mr. Roosevelt said had come a decision to shift some relief allotments to the works progress ad- ministration to take care of unemploy- ment between now and July 1. ¢ He explained that the original al- lotment for WPA was not large enough and funds would be drawn from other agencies, in fact from all other agen- cies which shared in the original $4,- 000,000,000 work fund. No Change in Totals But Mr. Roosevelt added that there would be no change in the total amount for relief expenditures dur- ing the remainder of this fiscal year. There was a growing conviction the administration will seek to pay the bonus without proposing new taxes if there is any possible way, but the president left the door open Friday for new levies, Committee Opposed The sentiment in congress for mak- ing the tax bill as small as possible in @ campaign year became virtually an . The powerful house steering committee went on record, in secret session, as to new taxes now to pay the soldiers’ bonus of more than $2,000,000,000. The American Federation of Labor, meanwhile, held that prospects of a pick-up in private employment ere not good. Legal Snarls Delay Old Age Plan Action Legal snarls are delaying action on North Dakota’s old age assistance plan by the national social securities board Theodore Martell