The Bismarck Tribune Newspaper, February 7, 1936, Page 2

THE BISMARCK TRIBUNE,. FRIDAY, FEBRUARY 7, 1986 STEEL FIRMS MADE BIG PROFIT ONNAVY ARMOR PLATE SALE Munitions Invstigators Attempt (to Prove Certain Compan- ies Have Monopoly Washington, Feb, 7.—(#)—The sen- ‘te munitions committee endeavored Friday to show that steel companies have profited heavily on armor plate sold the navy. Stephen Raushenbush, the commit- teo's chief investigator, said an effort would be made to prove some com- panies held a virtual monopoly on pro- duction of cértain types of armor plate, gun forging and projectiles. The hearing was so tedious several spectators walked out. FP. A. Schick, vice . president and comptroller of the Bethlehem Steel company, and W. H. Johnstone, as- sistant secretary, testified the com- pany’s armor plate plant was worth $8,193,000. It was described as having operated at only one-seventh of ca- pacity from 1921 to 1927 “during the period of the naval holiday.” From 1927 to 1934, Schick said, it operated at about 25 per cent. He testified profits on small lots of @rmor plate for the navy ranged from bout 2 to 21 per cent, usually from 6 to 8 per cent. Soft Coal Miners to Seek 30-Hour Week Washington.—United Mine Workers adjourned finally Friday after decid- ing to demand a 30-hour week in their next contract with soft coal opera- tors. They left the question of wages in the new agreement to the officers, with instructions to secure the best terms possible. Previously, John L. Lewis, union president, had announced he would not accept the $13,000 a year salary increase the convention voted him ‘Thursday. Weather Report | WEATHER FORECAST For Bismarck and vicinity: Possibly snow and somewhat colder tonight; Saturday general- | ly fair with severe old. oor North Da- kota: Mostly clou- dy, possibly snow soutl portion, somewhat colder west portion to- night; Saturday generally fair with severe cold. For South Da- kota: Snow to- night Ais a COL generally fair Sat- with Sale t ion taniene AS ast portion nif an pee Saturday. ss ‘or Montana: Unsettled and con- tinuea cold tonight and Saturday; snow southeast Portion. For Minnesot Ggnerally fair in north,” probably ‘light snow tonight and Saturday; continued cold, with still colder along Iowa boundary. WEATHER CO} CONDITIONS The barometric pressure is high and temperatures are low over the north- ern Border states and in the Cana- dian Provinces, Edmonton, 30.86, while @ low pressure area, accompanied by Warmer weather, overlies the South- west, Denver, 29.56. Snow is falling at many places from the Great Lakes region westward to the north Pacific coast. Generally fair weather pre- pe te over ee Ae marck station barometer, inches: 28.42. peas yeu sea level, 30.40, PRECIPITATION For Bismarck Station: Total this month to date Normal, this month to date Total, January ist to date . Normal, January 1st to date . Accumulated deficiency to date NORTH DAKOTA ee w- High- est Pct. “14 00 18 = 00 “16 10 -18 =.00 00 00 R 21 BISMARCK, snowing .. -2: Devils Lake, clear . Wiliston, peeing ng eldy. a ~26 18 WEATHER AT OTHER POINTS Ce etiee, On e Amarillo, Texas, clear . 46 ‘0 Boise, Idaho, cldy. .... Gelgary, Alta., snowing rH hicago, Ill., ‘snowing . Denver Colo., cldy. .... 26 , Kans, clear Edmonton, ton, aor Havre, Mont., snowing . -26 Helena, Mont., snowing 32 Huron, 8. D., snowing . -18 Kamloops. B. C., cldy. . -22 ogres pee Css, ee. clear HA al., clear Miles aie A pioat., play, 18 Minneapolis, M., cld: , cldy. -30 8. D., snow -24 . clear 18 8. 8. Marie, Mich., clear a Seattle, Wash., peldy. Sheridan, Wyo., snow “3 Sioux City. Iowa, snow _ Spokane, Wash. clear Bwitt Current, 8.. ‘The Pas, mat a a eg ELETYPE BRIEFS“=- ‘Kona by Trenton, N. J.—Gov. Harold G. Hoffman will go to Mercer hospital here Saturday for a minor operation on his nose, Madiston, ‘Wis.—Testimony liquor was served to University of Wisconsin football players before Coach Clarence W. pears came to Wisconsin was heard Friday by the regents investi- gating committee. ‘Washington—House approval of a conference agreement on the $367,- 000,000 deficiency bill carrying $296,- 185,000 to pay government contracts under the old AAA, Friday sent the measure to the white house. Cristobal, C. Z.—Thirty-one United States navy airplanes took off from Coco Solo on a great mass flight Fri- day to the strategic Galapagos islands, 1,200 miles to the southwest in the Pacific ocean. Portland, Ore.—United Airlines an- nounced Friday its night plane from Portland to Salt Lake City made a safe landing at Twin Bridges, Mont., in a snowstorm shortly after 5 a. m. Leavenworth, Kas.—Harry Sawyer, William Weaver and Cassius McDon- ald, convicted in the Edward G. Bremer kidnaping, arrived here Fri- day. Sawyer and Weaver are under life sentence while McDonald is to serve 15 years. Ely, Minn —Ed “Trapper” Johnson, aged woodsman, now in an Ely hos- pital, owes his life to three CCC members who traveled five miles through the night in 20-below zero weather on a dog sled. Raleigh, N. C.—Three Negro mur- derers were executed at the North Carolina state prison Friday, one in the electric chair and two in the gas chamber. Richmond, Va.—John Daugherty, youthful killer and bank robber, was electrocuted at the Virginia peniten- tiary Friday for the slaying of a state policeman. New York—The Wall Street Jour- nal will say Saturday, a revival of the merger plan for the northern rail- |5' roads of the country is being actively considered. clude the Great Northern, Northern Pacific and the Chicago, Burlington & Quincy railroads.” London—Damages of one farthing —which is half a cent—were awarded Friday to Sir Oswald Mosley, leader of the British Fascists, in a slander action against John Marchbank, gen- eral secretary of the National Union of Railwaymen. Washington — The postoffice de- partment Friday announced appoint- ment of Nathan Myrick as acting postmaster at Pembina, N. D. London—The Italian delegation to the international naval conference backed up the French Friday in an attack on the, United States; policy of maintaining large battleships. Washington — After lunching with President Roosevelt by invitation Thursday, Senator Borah of Idaho told reporters “we didn’t omit any from page one subjects.” Co D Shuldberg Did Not Threaten Liggett, Federal Man Says how he had arranged for Louis Male Flee an employe of his company, to T| drive Blumenfeld down town late in the afternoon, Dec. 9. They left the plant, Shuldberg said, at 5:06 p. m. The car used was a Chevrolet coupe, dark-colored, with red wheels. A timecard, which Malkin punched upon leaving the plant at that time, was offered as evidence of the time of departure. The witness explaihed he had never drove in the alley the night Liggett was slain. There has been testimony from defense wit- nesses that Mrs. Liggett immediately. after the killing claimed Kid Cann Killed her husband and that Meyer Shuldberg was in the assassin’s auto- mbile with him. Left About 5:50 p. m. Shuldberg explained he left the plant about 5:50 p. m. that night. One of the defense witnesses, Mrs Petty Paymar, testified she saw the killer's automobile leave the alley and that it was a “light colored‘ coupe.” Both Andersch and Mrs. Liggett had testified the car was either a sedan or coach and dark colored. Mrs. Paymar said that when she ar- rived at the death scene in the alley she heard someone ask Mrs. Liggett who had shot her husband and that the widow had replied, “How should I know? I was looking out of the window at the time.” Train Leaves Tracks In Marmarth Mishap Marmarth, N. D., Feb. 7.—(P)—A Milwaukee passenger train was de- layed in the yards here Thursday when several of its cars and the en- gine were thrown from the track in an accident which officials said was caused by a split rail. Passenger: found shelter in the de] NTINUE “The grouping would in-}° ] (OLSON REPRIMANDED BY FEDERAL JUDGES Governor Replies With Words to Court Order Permitting Factory Re-Opening Rochester, Minn., Feb. 7.—(}—Com- menting from his: hospital room on Thursday's federal court decision re- quiring authorities to permit re-open- ing of the Strutwear Knitting com- pany of Minneapolis, Gov. Olson Fri- day said, “It is impressive in its ring- ing and lofty enunciation of the con- stitutional sacredness of property rights.” Mayor Thomas Latimer of Minne- apolis, Governor Olson and the Min- nesota national guard were required, in a federal court injunction granted the Strutwear company, to permit the concern to occupy and operate its plant. Three federal judges, in enjoining city or state officials from closing the plant or interfering with its opera- tions, reprimanded Governor Olson for taking an “absurd” course in de- sess its own property.” Armed guardsmen took charge Dec. 27, last, after riots. In succeeding weeks, the firm shipped equipment to St. Joseph, Mo., to resume partial op- eration. Governor Olson withdrew the troops Jan. 28 on the contention city officials refused to assume re- sponsibility for their presence. The injunction order, on which Mayor Latimer indicated a possible ppeal to the United States supreme court, cited “complete breakdown of government” as the eventuality were troops employed against “lawful use of property.” ONTINUE D C from page one: Taxpayers Assert 1935 Purse Levies * A <a ‘Highest in Nation livestock operations; under the defin!- tions and rules set forth in the income tax, this increase is classified as in- come and taxable under the act. Here is a direct tax on property as no strained construction could hold that livestock 1s not property.” Cites Hypothetical Case . He cited a hypothetical case of a farmer purchasing a farm for $10,000, subsequently re-selling it for $15,000, taking a promissory note, secured by @ mortgage, in payment.” “According to the law, the farmer must pay an income tax on the $5,000 profit, although the profit is entirely in the form of a promissory note and mortgage, which are personal prop- young declared. Grain and other produce raised by farmers are subject to the income tax, he pointed out in support of his claim the levy was one directly on prop- erty. Rents in the form of shares of pro- duce also are subject to the tax he said, terming this type of income “de- rived from the property, and as has been frequently stated, there is no difference in imposing» tax.upon property than upon taxing the income from the property. The taxation of the income is in effect a tax on the property.” Compares 27 States Of 27 states imposing graduated in. come taxes, Young said 14 had speci fic constitutional provisions permit- ting such a tax, three states had no constitutional restrictions, while three states having uniform provisions in their constitution similar to North Dakota, that held the tax to be not @ property tax and hence not within the uniform constitutional rule. Two states have upheld the grad- uated tax, where the constitutional provisions of uniformity refers to sub- jects and not to property, he said, while four states have a flat rate of per-|),,, sonal income tax. Six states have held a graduated personal income tax to be unconstitu- tional, he told the court. He declared the majority of courts had held an income tax to bea tax on property, and therefore must come within the constitutional rule requir- ing the levy to be uniform upon the same classes. Tax Is on Property “We submit,” Young said, “that un der the North Dakota statute, even a strained construction could not fail to hold that at least a large portion of the income sought to be taxed is no more or less than property and that the tax therefore is a tax upon the property.” To claims the income tax was au excise tax, which he said had been held by some legal authorities, Young replied, “a nonresident landowner must pay a tax on income he derives from rental of property. If the in- come tax was not a property tax but an excise or occupational tax, then nonresidents could not be taxed, be- cause the state would be without juris- diction.” He termed the tax a “double tax” in some instances, citing income taxes collected on coupon notes represent- ing interest payments on mortgages. “The coupon note is and has frequent- ly been enn Dele to be personal property,” he Even though the court might hold the tax not to be a property tax, Young said, the law still violates the uniformity provision of the constitu- coe which. he said included “all ‘ax rohibits Loss Deductions The North Dakota income tax law would prohibit deductions of all losses incurred in prior years, he said, and priving the firm of the “right to pos- | $5.00. would heavily tax the the farmer during disregard the. the fect that iat probably al e obtained be prio “to pay up the probit: tions incurred in prior bad years.” He termed provisions of the law no deductions for losses an “illustration of the capricious char- acter” of the act. A professional man, engaged farming operations in addition to his profession, might lose $10,000 on his farm operations in one year, but make an equal amount the same year in his business or profession, Young cited. Finds Self in Debt “Thus at the end of the Young argued, “he will find himeeit in debt and without funds. In reality his net income is nothing. However, the North Dakota income tax law im- Poses a tax by its prohibition against deducting losses. Here is a clear case of arbitrary discrimination.” He asserted the rates “on exemp- tions are such as would levy a tax upon those receiving direct from the federal “In addition,” he said, “the Dakota legislature apparently is al- most persuaded of the old saying, Two can live as cheaply as one.’ The head of a family may make a deduction of $15 from his net tax, whereas an in- dividual is permitted a deduction of Wife Costs $10 “Apparently it would appear the cost of supporting a spouse was placed at $10. A $2 deduction is permitted for children and dependents. It may be that some thrifty individuals can support a child for the sum of $2 an- nually, but we have been unable to ascertain any such individual.” Charles Murphy of Grand Forks, insisted “it is not a question of ability to pay.” Put Brakes On He declared “the brakes should be put on, not taken off.” “If the people who run our govern- ment would give as much thought to practicing economy, instead of seek- ‘ing to take away as much as possible relief | North |*®, NEW TEMPERATURE DROP IS FORECAST Torrent of Biting Cold Rages Down on Northwest From Canada Friday Forecasts of severe cold Saturday promised no relief from the bitter, be- low-zero temperatures, now Temperatures, moderated slight Friday morning and the snow 7 down both slopes tains and weather as Canada the Raat dott kf iy erature drops of forecast in Se Alen frost bite near Butte, Mont.; shortages in Ohio and Towa were re- blocked by heavy falls of snow. By contrast, flood conditions were considered dangerous in southwest Alabama while in Ws the senate took 15 minutes to round up a by mid- morning the fall totalled 16 inches. Head of the Lakes coal supplies at Duluth and Superior, principal source of the Northwest's supply, reported output taxed to the limit for the from those who have it, we will get along better. I don’t believe in letting the bars down, resulting in a grand chase against those who have money, by the ones in charge of the govern- ment to support them in their ex- travagance.” Attorney General P. O. Sathre and T. A. Thompson, assistant attorney general, were to argue the state's op- Position to the move at the afternoon session of court. Likewise appearing for the appel- lants, were George Thorp, Fargo; Charles Wattam, Fargo; John Sulli- van, coarse SEA C oO NTINU TINUE D from page one- 500 Lumbermen to Attend Convention Beginning Monday the annual president’s message by J. L. Odette of Minot. Following in order will be an ad- dress by Governor Walter Welford, a talk on “Industry Cooperation” by R. M. Bellis of the Weyerhauser Sales Co., Minneapolis; “Cooperation and the Necessity for Organization for the Equipped Retail Dealer,” by W. H Martin, secretary of the Northwestern | are Retail Coal Dealers association, Min- neapolis; and a talking picture “The Home of the Wooden Soldiers,” by the Red Cedar Shingle bureau. Adjourn- ment the first day is scheduled for 4:30 p. m., with the evening enter- tainment to begin at 8. Luncheon Follows Tour Opening the, second day’s program will be the tour of the capitol build- ing, followed by the luncheon. The afternoon session again will open with music by the juvenile band, followed by the reports of committees and the election of officers. Following this will be a Lincoln Day address by Former Governor George F. Shafer; “Keeping in Step With the Parade,” by O. C. Lance, Levesenge pared fi secretary of the Northwestern Lum- bermen’s association, and “The Lum- berman’s Opportunity,” by W. Rav Reichert, North Dakota chief of the Federal Housing administration. At 3:50 the convention will become an experience meeting under the gen- eral heading of “What I Learned About the Lumber Business in 1935.” in which all members are expected to take part. Speeches will be limited to @ maximum of 3 minutes each. Any- thing of interest to lumber dealers 1s eligible for presentation. Women Plan Activities Adjournment is slated for 4.30 with the salesmen’s banquet to begin at 7:30 in the silver ballroom at the Patterson hotel. While the men delegates are attend- ing the business sessions and stag en- tertainments, their wives will be the guests of a committee of local: lumber dealers’ wives, headed by Mrs. John A. Larson and Mrs. W. T. Kraft. Teas, bridge and theater parties are planned by the women for those pe- riods in which their husbands will be | busy elsewhere. The Patterson Hotel just re- ceived a shipment of live lob- sters direct from the coast of Maine. WILLIAM M. SCHANTZ Certified Public Accountant (American Inst. of Accountants) | Al - - Income Tax Reports Systems Phones: first time in 15 years. NUMEROUS ADDRESS CHANGES REPORTED 10 Residents Leave Bismarck and Mandan and Several New People Arrive Departure of eight Bismarck resi- dents is reported in the current serv- ice bulletin of the Bismarck-Mandan Credit Bureau, Inc. They are C. O. Barton, Mason apartments; Jerry McAllister, 618 Righth to 210 Eleventh St.; Lydia Me- Laughlin, Apartment 14, 200% Main avenue, to Apartment 21, 101 Sixth &t.; William E, Mueller, 600 First to 1026 Kighth St, Also Ernest Penwarden, 202 Avenue A to Apartment 3, 611 Avenue A; Carl G, Peterson, 318 Ninth St. to 110 Ros- ser avenue; R. C. Peterson, 422 Sev- enth to 513 Ninth 8t.; Dr. R. B. Radl, Rose apartments to 1025 Fifth 8t.; Salvation Army, 220 to 112 Main avenue; John Stein, 512 Hannafin to ‘714 Raymond &t.; Frank Welch to 410 Ninth 8t., south; W. C. Wiley, 100 Seventh 8t. NEW GAINS IN 341 More Motor Vehicles Sold in North Dakota This Year Than Last $$$ __$__________¢ f Gity and County | ha Mr. and Mrs. W. G. Childs, 1002 apartments, to Madison, Wis.; Harry | cott Deasy, 309 Twelfth &t., Strasburg; M. E. Fahler, 408 Mandan St., to Mandan; 8. G. Harwood, 110 Rosser avenue, to Glasgow, Mont.; J. V. Miska, 707 Avenue A, to Fargo; Merton J. Orr, 1025 Fifth 8t., to Ma- son City, Ia.; E. G. Sawyer, 513 Ninth St., to Beach, and Lt. Wesley ©. Wil- south, to bree Gied at his farm home lay. * IN WREELER'S STAFF son, 623 Eighth 8t., to Fort Lincoln. | staff. Ben Nelson moved to 314 Eleventh &t., from Regan. Local changes of address reported George Bashara, 512 Hannafin to 419 Third St.; Isam Belk to 410% Third St.; Frank Boehm, 513 Ninth to 811 Second St.; Rosella Brelje, 114% Fourth to Apartment ©, 101 Sixth &t. D. F. Burroughs to Apartment 2, 206% Main avenue; John Dybwad, 506 to 319 Second 8 sabes Fahl- FINISHING Iz. 120%, ae en cache” 116’, 4e ench. Lee _entargement with ench ase reprint order. i CAMreaie’s PHOTO SHOP Corner 3ré & Main Bismarck AT THE Patterson Hotel You will always find a wonder- ful selection of delicious foods. We serve genuine Jones’ Little Pig Sausage. We sell 1-pound * packages. : Try our won: derful bake———————— goods. ie ale Se aol Other breads 6&6-—$<$—$—$$—$———— per loaf. Jackrabbits Whole l4e Jacks Slightly Gray—12c furs. We Pay Highest Market ices. Beef and Horse Hide prices are high, at least twice Bring us all articles listed above, with your metals. “Northern” Hide & Fur Co. Broadway, Oftice—540 Bismarck, N. D. Residence—1620 La Crosse Also Available in Picnic (2-quart) Bottles .LA CROSSE BREWERIES, INC. LA CROSSE, WISC. NOW ON SALE AT THE FOLLOWING PLACES: merican Billiard Parlors Bashara’s Grocery Chuck’s Bar Corner Grocery The Dutch Lunch The Idle Hour Neff Billiard Parlors Nicola Beer Parlor The Ritz The Savoy Sak’s Confectionery Schlitz Palm Garden NOTICE! messenger mislaid or lost paid. Brick Bldg., Corner 9th & Frent Bismarck, REWARD! LOST . In clearing checks between banka in Bismarck 2 a small bunch of checks properly endorsed and payable at a bank in Bismarck. Checks are of no value to anyone except endorsed to. If checks are found and bank in Bismarck or Tribune Office, a CAPITOL LAST TIMES TODAY STARTLING, NERVE-TINGLING, GRANDIOSE GAYETY! , WiHALE'S TRIUMPH OF TRIUMPHS! “REMEMBER LAST NIGHT?” Robert Armstrong-Louise Heni éregny Rateff . Reginald Den From the novel, “Hangover Mur- ders,” by Adam Hobhouse. SAT. - SUN. - MON. _ JESSIE MATTHEWS Pisens Pronclity Hbrulf FIRST A GIRL (THEN A 6O”/) Cone JURY AWARDS $76 DAMAGES 10 ENGLE|" “Shaping i Veniremen en Deliberate Five! resenttuiness of of criticism, an ims Hours in $5,000 Suit Against Patience tute. ee ca ‘caihise ot ee Two Policemen hg New Deal, declared in a Chicago ‘apeech that the administration “faces” certain defeat” in November. league chief struck out at Sec- Wallace for his “sneering ref- to the supreme court's AAA actual and] Pension Plans Probe Proposed by Solons ‘Washington, Feb, | 1—(?)—Contro- vVersy in congress over the Townsend old age pension plan engaged the at- tention of leaders Friday. A group Planned to meet for a discussion of the entire question and particuarly the proposed congressional investiga- tion of the Townsend and similar Pension PATTY BERG WINS Coral Gables, Fla. Feb. 7—(?)— Patty Berg of Minneapolis defeated Mrs. ‘onal’ 8. Hill of Kansas City, one up, in the semi-finals Friday of the Miami Biltmore women’s golf tourna- She was only a realtor’s daughter but I loved her lots! Start your dinner with blue points at the Patterson. Try one of those wonderful elec- trically-broiled steaks, PARAMOUNT, Starts Sunday THE BIG TIME MUSICAL THAT WOWED NEW YORK For One Entire Year! It’s the Top! Hi api i : Walter Dietaman, Olaf Wold, Virian Nelson, Jacob Hein and John A. Killdeer to Observe | Washington Birthday NEW LOW PRICES! ==ISTATE Adults 16c - - Children 10c THURS. - FRI. - SAT. “Adventures of Rin-Tin- Tin and Rex” A Dog and a Horse in the Thrill of Thrills! A Musical Fun Voyage with a Cargo of Gorgeous Danc- ing Girls! TODAY and SAT. Daily 2:30-7-9 AMERICA’S LAST FRONTIER IN A CITY THAT KNEW NO LAW! the living bieoey te voulo cha te be- MIRIAM HOPKINS EDW. G. ROBINSON A Blazing Drama of the Roaring, Smashing Gold Coast! Extra! ‘rea’ kay = ee fen News