The Bismarck Tribune Newspaper, May 23, 1936, Page 1

| |===] THE BISMARCK TRIBUNE ESTABLISHED 1873 BISMARCK, NORTH DAKOTA, SATURDAY, MAY 23, 1936 PRICE FIVE CENTS -G-Men Probing Northwest Vice Ring Marmarth Well Shows Promise of Being Big Producer [3 PRODUCING NOW AT 40 BARRELS PER HOUR SAYS REPORT Between 300 and’ 400 Barrels Already Placed in Tanks at Drill Site TO START ACID PROCESS Observers Claim Oil Penetrates Column of Mud to Rise Rap- idly in Hole (Special to The Tribune) Marmerth, N. D. May 23.—()}— Despite the fact that it must pene- trate 2,000 feet of mud placed in the hole two weeks ago, the oil well re- cently brought in southwest of here by the Montana-Dakota Utilities company is producing 40 barrels of oil an hour. ‘This was disclosed Saturday whet Grillers said they were bringing up that quantity of oll in connection with the “swabbing out” process by which they are opening up the hole. Between 300 and 400 barrels of oil have been placed in tanks near the well and will be used in connection with the work of “acidizing” the well. This consists of placing acid at the bottom of the well to eat a hole in the rock and create a pool in which the oil may collect more easily, oll men said. The job of putting the acid in the well is expected to begin Sun- day and it will be 10 days before the work is completed. During the swabbing out process, it was reported here, the oil rose in the hole at the rate of 100 feet each half hour and shortly after the work was shut down Saturday was said to be flowing over the top of the hole, despite the fact that it must penetrae nearly 2,000 feet of mud in the bottom of the well. On’ the’ basis of the inférmation’ now available oil men are confident that the will will prove to be a big producer. The news stimulated again the dreams of wealth from black gold which have been current in this area since the discovery first was an- nounced, Haile Selassie to Leave for England London, May 23.—(AP)—Emperor Haile Selassie of Ethiopia will board the British cruiser Capetown at Haifa Saturday afternoon en route to London, the foreign office an- nounced Saturday. The king of kings submitted the proposal to visit the English capital and received approval from the gov- ernment, it was learned officially. The length of his visit was not disclosed. The foreign office declined to say whether the Negus will be received as @ sovereign or as a private citizen. New Crossing Mark Made by Hindenburg PRESIDENT TAKES OFFICE {SENATE TRYING TO. |HOUSE LEADERS ARE Miguel Mariano Gomez (left), whose father once was president of the republic, is shown az he was sworn in as president of Cuba by retiring President Jose A. Barnet in the presence of high governmental officials at Havana. (Associated Press FRANCE MAKES BID FOR FRIENDSHIP OF jesignate Outlines Hopes in Radio Address Broadcast Friday Photo) No Mourning Marks Passing of Dobbin Hl I citi een db Greenfield, Mass., May 23.—(?) —Greenfield is at last convinced its “horse and buggy days” are over. Ten granite hitching posts were cut down Friday without a mur- mur of urotest. Twenty-five years ago when Main Street was resurfaced the posts, which then were a quarter century old, were removed tempo- rarily but loud protests by citi- zens caused the selectment to order them put back. -designate, Socialist leader of the leftist bloc that comes to power in the new chamber of de- puties next month, intends to head the French delegation to the June 16 session of the League of Nations council, Informed sources said he would at- tempt to form a close Franco-British diplomatic front at the special meet- ing called in the Italo-Ethiopian con- troversy. Former Premier Herriot’s refusal to take over the foreign ministry was accepted generally now as final. Blum addressed an appeal to the United States in a radio address Fri- day night for better understanding between the American and French Peoples, After citing American adherence to democracy, efforts to overcome eco- nomic depression and opposition to war, Blum asked: “May I not, in view of all this, con- clude that what we are about to un- dertake deserves the attention—even the goodwill—of American opinion?” He avoided direct reference to -|Prance’s defaulted war debt to Amer- ica, age | spective declared, “I insist on the re- Positions of our two peo- ples in regard to the most pressing Problems of today.” Crops in Valley Are Benefited by Rains (By the Associated Press) SHAKEN AS THOMAS RESIGNS HIS POST Major Turn-over Visualized in Wake of Information Leak of Budget Details London, May 23.—(?)—The resigna- tion of Colonial Secretary J. H. Thomas in Britain's budget leakage scandal — the third desertion from Prime Minister Stanley Baldwin's cabinet—raised a probability Satur- [the FORCE LARGE FIRMS TOPAY MORE TAXES Turns Thumbs Down on Un- distributed Income Levy But Hunts New Revenue SEEK MORE TEETH FOR LAW Measure May Be Brought to Senate Floor for Debate Late Next Week Washington, May 23. — (?) — New Dealers began a last-ditch struggle Saturday to equip the government with a big stick to force certain cor- porations to distribute large sums in dividends. Now that the senate finance com- mittee has turned thumbs down on the proposal to levy stiff graduated taxes on undistributed corporation income and has approved instead a comparatively lean tax of 7 per cent, administration men have concentrated on an effort to put “teeth” in existing penalties against corporations “im- surpluses. come and 35 per cent on all over $100,000. ‘These levies are much stiffer than those on other corporations, which are taxed from 12% to 15 per Also question of high penalty taxes on cer- tain corporations which, some sena- tors contend, are used as tax avoid- ance devices by men who, without them, would pay high taxes on their rsonal 5. pe . (The new bill imposes an 18 per cent levy on corporation net income, a 7 per cent tax on undistributed cor- poration earnings, subjects dividends to the present 4 per cent normal in- come tax as well as the graduated ing no-more than $15,000 a year ® $1,000 exemption from taxation.) Bar ‘Tax on Taxes’ The committee eliminated what was cent of income which a corporation cannot distribute to stockholders be- cause it must go into the federal treasury. After the committee smooths off a few “feather edges” on the bill, Chairman Harrison said, it may be approved finally by the committeemen Monday. That might bring it to the senate floor for debate late next week. Roosevelt Visiting His Injured Mother Aboard Roosevelt train, en route to Hyde Park, May 23.—(#)—President Roosevelt travelled by train to Hyde Park, N. Y., Saturday to spend three days close to the bedside of his 82- year-old mother who was injured re- cently. While at the old Roosevelt home on the Hudson Mr. Roosevelt will have an opportunity, if he sees fit, to go over the latest twist in the political situation in the empire state caused by decision of Gov. Herbert H. Lehman to retire after serving two terms, Political observers would not be surprised if Lehman paid a visit to ‘Hyde Park for a conference. Amnesty Granted to Two Roman Generals Rome, May 23.—()—Two Italian ae “| generals, Capello and Zaniboni, exiled the budget was announced April 21 to the house of commons. . | Bismarck to Close Up For 3 Hours on July 3 more than 10 years ago for allegedly conspiring to kill Premier Mussolini, DEVILS LAKE MAN DIES Devils Lake, May 23.—(?)—Davis DIVIDED ON ACTION AGAINST TOWNSEND Committee Undetermined What to Do About Pension Chief’s Defiant Stand FEAR HE WILL BE MARTYR Doctor Isgues Challenge to Cite Him for Contempt Before Bar of Congress Washington, May 23.—(7)—A har- tied house investigating committee was deadlocked Saturday over action to be taken against Dr. F. E. Town- send, old age pension leader, for his continued defiance. That Dr. Townsend should be cited for contempt, most members agreed. but on the question of whether he should be tried before the bar of the house or the case turned over to the courts there was a decided difference of opinion. Several members said privately that they do not want to make a “martyr” out of Dr. Townsend and that angle must be given consideration in any steps taken. With the committee still smarting Sheridan Downey, Dr. Townsend's counsel, gave newsmen a statement which said “Dr. Townsend now prophesies the committee will not have the courage to put this matter up to the house because they will be afraid to give him a hearing before that body. “They will weakly evade the issue and put this baby in the lap of the district court. The case will not come <NO. action was taken,” was the statement issued by Chairman Bell (Dem., Mo.) after the committee met in closed: session for two hours, Bell indicated. the committee was not immediately concerned with the order issued by Dr. Townsend to his leutenants and leaders to follow his example and refuse testimony to the committee. Drag Montana Lake For Body of Jurist ‘Wolf Creek, ieee May 23.—(?)— loot waters Friday in the fifth day's search for the body of Albert J. Galen, former Montana supreme court justice. Galen, 60-year-old Helena attor-: ney, has been missing since last Sat- urday when he borrowed a small motorboat from his son, James, and started across the lake to his sum- mer home. The empty bost was his father’s failure to return to the ranch. 22-Year-Old Youth To Begin Life Term route to Stillwater penitentiary Sat- urday to begin serving a life term for trict Judge James Montague Friday and was sentenced immediately. Authorities said Riggers admitted killed Keninger May 1 in a rob- buy mpi netted him'$10 and a few ni Amorous Butterfly Gets Crush on Boy Cranston, R, I., May 23.—(P)— Woman Frightened Once Angered Twice by Bombs eras on i “When I found out what had $560,000,000 Is Tax Bill Yield Prosecutor Says Giris Are Sold Sum Which Measure Will Raise Is $60,000,000 Short of Roo- sevelt’s Aim NEW LEVY ON SUGAR SEEN Aim of Proposed Impost Would Be to Enforce Jones-Cos- tigan Sugar Law Washington, May 23—(#)—A re- vised estimate of the yield of the sen- ate finance committee's compromise tax plan Saturday placed the total at $560,000,000, or $60,000,000 short of the additional permanent revenue sought by President Roosevelt. Chairman Harrison (Dem., Miss.), in giving this figure, sald the com- mittee, moreover, seems to be of the opinion that an excise tax should be placed on sugar, to enforce the Jones- Costigan sugar act and that it would bring in an estimated $66,000,000. How Bill Works Out Harrison detailed the estimated yield of the corporate tax plan this way: From an 18 per cent tax on corpor- ation income, $215,000,000. From a 7 per cent levy on undis- tributed corporate income, $217,000,- 000. From application of the normal 4 per cent income tax to corporate divi- dends, $90,000,000. From eliminating “cushions” pro- vided in the bill as it passed the house for debt-ridden and other corpora- tions, $5,000,000. From placing profits from liquida- tions under the capital gains provi- sion of existing law, $33,000,000. “Our work is about done,” the chair- man said. Consider Excise Taxes Still remaining to be disposed of Monday, he said, are the questions of te caMnran Ieerte att Om foscion starches. D and on foreign The committee has reached agree- ment on how to handle foreign cor- porations. It agreed on @ flat 22 per cent rate on those with offices or places of business in the United States, compared with 22% per cent in the house bill. ‘They would be taxed, like domestic corporations, only on 10 per cent of income received from dividends from American corporations. They would have no $1,000 exemption as provided for domestic corporations making no more than $15,000 annually. 5500 WORKERS IN OHIO STEEL PLANT SEEK RECOGNITION Strike in Effort to Enforce Rul- ing of National Labor Rela- tions Board Portsmouth, Ohio, May 23—(?)—A| 5, workers Saturday cli- Late News GRANT NAVY HUGE SUM Washington—House and senate conferees agreed to appropriate $526,- 000,000 for the navy. The bill pro- vides for construction of 12 destroy- ers, six submarines and work on 8 other war vessels as well as 333 new airplanes and two big battleships if the president deems them necessary. It is the biggest naval appropriation in peace-time history. CHILD SLAYER EXECUTED NAB FOUR SHARPERS Minneapolis — Four Minnespolis men, arrested in Hillsboro, N. D., are accused of fleecing innocent victims in card games. Their system was to inveigle visitors into games of chance in which the latter always lost. AMERICANS WIN IN LOTTERY broke the old mark for the pole vault at the annual Kiwanis track and field meet here with @ leap of 11 feet. The former record was 10 feet, 8% inches, About 200 athletes were here for the games. PLAN MILITARY FUNERAL Hillsboro—The body of Lynn J. Splering, found on a French bat- Edgeley, 3.35 inches of precipitation falling in a few hours last night, SIOUX FALLS FLOODED Sioux Falls, 8. D.—Rain anh Columbus, O.—Don Lash, Indiana, ran the mile in 4:108 here to break his own former Big Ten record. Condition of Former effects of an automobile accident two days ago. Dr. J. P. Craven said the former governor is out of danger but that it might be a week to 10 days before he could leave the hospital. TO CASH BONDS AT FARGO N. D, LETTERS TAKEN IN RAID REVEAL FIVE STATES AFFECTED Into White Slavery on ‘Chain’ Principle NORTH DAKOTA IS INCLUDED This Said to Be One of States Into Which Gang Stretches Its Foul Hand Minneapolis, May 23.—(?)—Federal agents entered investigation of vice conditions in the Twin Cities Satur- day following of letters in a raid on a house of ill fame here that County Attorney Ed J. Goff said in- dicated spread of a “white slave” ring into five northwest states. Goff said a “little black bag” seized in the raid contained “in letters which indicated vice activities controlled by a Twin Cities group had spread into Wisconsin, North Dakota, South Dakota and Iowa, as well Minnesota.” * Houses of ill fame are maintained, Goff said, and girl employes are ob- tained, on a regular “circuit” or chain arrangement. He said the ring ex- tended “even into rural sections of the northwest.” Operatives of the federal depart- ment of investigation were scheduled by a 19-year-old white girl concerning “white slave” activities, lost his fight to obtain @ trial by judge instead of by jury. District Judge W. W. Bardwell or- dered jury trial of Johnson to start Monday. Goff said he probably will be tried first on a charge of main- taining a house of ill fame. SCORES TERRORIZED BY SECRET SOGIETY, PROSECUTOR STATES Ramifications of Murder Lead Police to Investigate Black Legion Crimes Detroit, May 23.—(?)—Prosecutor Duncan C. McCrea ordered an in- vestigation Saturday of reports that scores of victims had been “execution” of Charles A. Poole, WPA worker. Prosecutor McCrea said the arrests had been followed by a stream of re- ports from citizens who said they had been the victims of the group, which he ssid was reported to have 10,000 members in Wayne (Detroit) county. Most of the 16 members in custody adhered to the society’s password of “secrecy always.” At least one, how- ever, talked vaguely of floggings and other sinister activities and said that Lipps, 32, automobile factory worker. He is one of four men said by Police Inspector John I. Navarre to have confessed that they took Charles A. Poole, 32-year-old WPA worker to & country roadside and shot him be- the members refer to it as the Black » Which is the name under which it was organized.” Several of the members said the Black Legion has branches in other cities. Literature found in the hall where it met and in the homes of members, indicated that it was anti-Communis- anti-Catholic, anti-Jewish, anti-Negro,