Morning Pioneer from Mandan, North Dakota • 1

tonight and in tonight or and south por- a on today of a a tion in day; warmer northwest Flax portions MANDAN PIONEER Barley .11 .37 east Oats .03 Thursday. Rye .14 TODAY'S NEWS TODAY COMPLETE MARKET REPORT THE WEATHER Wednesday's Mandan Market Local Thurs- Wheat .28 VOLUME XIX- -NUMBER 206 PRICE FIVE CENTS MANDAN. NORTH DAKOTA WEDNESDAY EVENING. JANUARY 4. 1933 ASSOCIATED PRESS LEASED WIRE SERVICE SHAFER WARNS AGAINST HASTY LEGISLATION Education Cost In North Dakota Highest Of Any In United States ROOSEVELT TO DIRECT BALANCING OF THE BUDGET CONFERENCE TO FORM PLAN OF DEM.

ACTIVITY NEW TAXES NECESSARY TO MAKE ENDS MEET--SALES TAX BANNED BY FRANCIS M. STEPHENSON. New York, Jan. 4 (AP)-Balancing of the federal budget by this congress is demanded by President-elect Roosevelt and the ways for doing it will be decided at tomorrow night's conference with democratic congressional leaders here. Mr.

Roosevelt realizes that the outgo and income of government expenditures for his first year's administration must be decided by the present congress, or, at least, before July 1 when the government year begins, so he is taking a hand. There is a conviction in congressional circles that new taxes in addition to the proposed levy on beer and drastic economy are necessary to make ends meet. This new levy will be considered tomorrow night. The president-elect is also insistent on farm relief legislation but he is refraining from discussion of the "rotary plan" measure now before the house. Since Roosevelt has banned the manufacturers' sales tax recommended by President Hoover, it is believed the democratic congressional financial chieftains arriving here tomorrow will bring a substitute proposal, possibly a levy on interstate shipments.

It is regarded as significant that the ranking members of the senate and house interstate commerce committee Senator Yittman of Nevada, and Rep. Rayburn of Texas--are included in the budget parley. The president-elect came to New York early last night by automobile and established himself at the family's home where he will conduct conferences in the next two weeks in the organization of the new democratic administration. More than a score of visitors were on the calendar of Mr. Roosevelt for today.

For the most part intimate friends were among today's callers. Because of the congressional problems on his doorstep, the president-elect has deferred until next month at the earliest, announcement of his cabinet. Whatever conclusions are reached at tomorrow's conference will go far in determining the course of legislation this session, probably settle the question of new taxes and may decide the issue of a spe(Continuea on page 7) WASHINGTON IS SEEKING CAUSE FAR EAST ROW NO ACTION CONTEMPLATED UNTIL MORE DETAILS ARE RECEIVED Washington, Jan. 4. -Chinese and Japanese representatives in Washington offer different explanations of what touched off the latest sound af guns in the far east.

The Japanese embassy saId It had an idea that a chip on the shoulder of General Chang Hsiao Liang, deposed ruler of Manchuria, may have had a lot to do with the fighting which resulted the Japanese occupation of Chanhalkwan. But the Chinese legation has given the state department information which charged that Japanese civilians fired first in the direction of the Shanhaikwan city wall and that Japanese soldiers bombed the railway station on January 1. As far as this government is concerned, no action is in prospect until the origin of the clash is established and the events considered in the light of treaties. Nevertheless, officials sought all information and kept in close touch with developments. Secretary Stimson has confined his comment to the statement that the United States stands on the position it took a year ago against recognition of territorial gains made by aggression in violation of existing treaties.

SPEAKER OF THE HOUSE MRS. MINNIE D. CRAIG $150,000 LOOT GAINED BY GANG IN MINNEAPOLIS MAILING ROOM AT DEPOT IS RAIDED--THREE POUCHES TAKEN Minneapolis, Jan. 4 -Police today said they had all unconfirmed report that loot valued at $150,000 or more was taken by the gang that raided a mailing 1'00m at a local depot last Postal Inspector R. H.

Griggs said, however, that. his investigators had not determined just what was in the three registered mail pouches which six or more men carried away in two automobiles in a machine-like raid carried out in a few minutes. One of the three pouches WAS destined for Chicago, another for Aberdetn, and the third for Portal, N. investigators said. A few persons had only a fleeting view of the robbers, who worked in the half-darkness of the Milwaukee road's depot and train(Continued on page 7) FURTHER CUTS IN STATE COSTS ASKED BY NEW GOV.

NEW OFFICERS TAKE HOLD AND NAME DEPUTIES ASSEMBLIES CONVENED THIS SET FOR 2 P. M. (By The Associated Press) Ceremonies for inauguration of state officials opened before a joint session of the North Dakota legislative assemblies with Governor William Langer unable to be present because of illness. State Senator O. E.

Erickson of Kidder county announced from the floor of the assembly that "I regret to report that on the doctor's orders, Governor Langer is unable to be present. He said it was Langer's wish that E. H. Brandt, former candidate for governor, be permitted to read the new governor's prepared inaugural address. Langer is confined to a hospital here suffering from influenza.

On the speaker's platform as the joint assemblies convened for the ceremonies were Mrs. Langer and Langer's parents from Casselton. New state officials were organizing their offices with additional appointments announced today. Arthur E. Thompson, newly elected superintendent of public instruction, announced he has named R.

B. Murphy, former member of the state borad of administration as chief deputy. E. P. Crain has been reappointed director of certification.

Fred W. Cathro of Bottineau has been named deputy tax commissioner, A. G. Sorlie, Grand Forks, income deputy, and Albert (Continuco on page 7) Chinese Marshal Declines To Treat With Japanese- Refers Communication To Nanking JAP WAR OFFICE SAYS TRUCE HAS BEEN PROPOSED CABINET CONSIDERS NEW WAR SITUATION; MAKES NO ANNOUNCEMENT Tokyo, Jan. 4' (AP) The government Instructed Japanese military and diplomatic authorities in Manchuria and north China today to avoid aggravation of the Shanhaikwan situation resulting from occupation of that Chinese city by Japanese troops.

They were instructed to seek a peaceful "localized" settlement. The Japanese legation at Peiping was ordered to negotiate for this purpose with Marshal Chang HsiaoLiang, the Chinese commander in north China. The verancular newspapers ported that General Suzuki, in command at Shanhalkwan, had already proposed terms for a truce to General Ho Chu-Kuo, commander of the Chinese garrison which was ousted from the city. These terms it was said, included a plan for mutual evacuation of the Shanhaikwan area which would become a neutral zone. The Japanese delegation at the league of nations in Geneva was notified of the government's decision to "localize" the Shanhaikwan conflict and was instructed to inform the league of this decison.

As evidence that Japan, at present, was not planning a. major campaign, military, leaders point. ed out that the famous second division, active during the past year in the Manchurian, was being steadily returned home despite the outbreak at Shanhaikwan. Tokyo, 4. -The cabinet considered the situation resulting from occupation of the Chinese city of Shanhaikwan Japanese troops at a special meeting today.

No decisions were announced. (Continued on Page 7) EXEC. HEAD FOR New Mine Warfare Comes To Head In Illinois--2 Killed--Many Arrested SEEK TO RUSH FARM RELIEF THRU CONGRESS DEM. LEADERS CLEAR PATH OF MEASURE FOR QUICK ACTION Senate Completing Repeal Resolution 'OINT COMMITTEE CONTINU. ES HEARINGS ON VETERANS LEGISLATION Washington, Jan.

4. -Farm relief was rushed swiftly along in congress today with the democratic leadership seeking to clear every obstacle from the road to the white house. Chairman Jones of the house agriculture committee sought from the rules group a rule for eight hours general debate 011 the emergency measure designed to increase farm prices. Leaders appeared confident that a final vote would be had in the house by the first of next week at the latest and that the measure would be sent to the senate despite opposition that is developing. Meanwhile, as the senate debated minor legislation and the house worked on the first deliciency bill, a senate judiciary subcommittee was called together.

to complete the drafting of a prohibition repeal resolution. Chairman Baine of the subcommittee hoped to decide today the method of ratification by states so that the way would be cleared for hearings Saturday on the constitutional phases of the house 3.2 percen bill. The prohibition resolution, as tentatively drawn, provides for repeal of the eighteenth amendment, protection for dry states and gives congress power to rule against the saloon. A new group of witnesses appeared before the senate manufactures committee to tell of what they consider to be the need for additional federal aid in providing (Continued on page 7) JURY BIAS IS CHARGED IN J. J.

HALLORAN CASE LUMBERMAN CONTINUES ATTEMPT TO QUASH INDICT. MENT Phoenix, Jan. 4. (AP) John J. Halloran, wealthy Phoenix lumberman and sportsman, today sought to quash the indictment which charges him with being an "accessory to the crime of murder." Halloran is charged with concealing knowledge of the murders of Mrs.

Agnes Anne Le Roi and Miss Hedvig Samuelson, both for. mer friends of Mrs. Winnie Ruth Judd. Mrs. Judd was sentenced to be hanged February 17 for the murder of Mrs.

Le Roi. After indicting Halloran, the grand jury urged the state board of pardons and paroles to commute Mrs. Judd's sentence to life (imprisonment. The board has not acted en the recommendation. At this preliminary hearing, continued to today, Halloran charged members of the jury "were Qualified from serving in this case by reason of bias and prejudice a- gainst this defendant, and were in state of mind which prevented them from acting impartially." He also charged the jury "invalidated its own indictment" when it recommended the mutation of sentence.

The indictment was returned last week after the jurors heard Mrs. Judd tell what she had said was the "whole truth" of the here in October 1931. After the women were slain, their bodies were sent to Los Angeles in trunks. NO DEFICITS IN TREASURY; N. D.

'ON CASH BASIS NO NEW TAX BURDENS ARE JUSTIFIED AT THIS TIME Against Extension Farm Loan Credit POINTS TO SURVEY REPORT AS GUIDE FOR ECONOMY LEGISLATION (By The Associated Press) A warning to the legislature a- gainst hasty action on proposals calling for drastic changes tin the state system of government "no matter what the source of such proposals may be" was issued by George F. Shafer in his message to the legislative assemblies today as his last official act as governor of North Dakota. The governor, speaking at the ceremonies for inauguration of his successor and other new state.officials, counseled that "the great legislative need of the day is not hasty and ill-considered action, but wise and intelligent action." In 37 typewritten pages, he summarized the work of his administration during the past four years, declaring that he was confining his recommendations as to new legislation mainly to emergency matters. Outstanding comments made by the out going governor in his mes. sage included: On Cash Basis The state government has continued to conduct its business on a cash basis.

and has avoided deficits in the treasury, as well as the making of loans for current operating expenses. The times demand that 110 new tax burdens be created at this time. The State bonded indebtedness totaled $43,098,200 011 January 1, but there is no outstanding bonds against the state for any strictly governmental purposes. Full provision has been made for retirement of all outstanding Bank of North Dakota capital bonds. Adequate provision has been (Continued on Page 2) FRENCH CREW RESCUED FROM BLAZING SHIP LINER BELIEVED LOST BUT NO FATALITIES ARE REPORTED France, Jan.

4. Cherbourg, -Captain Schoof, master of the French liner L'Atlantque, reported tonight that 30 of his crew were killed when the vessel was destroyed by fire in the English channel today. Cherbourg, France, Jan. 4. (AP) -The French liner L'Atlantique, which operates to South America, caught, fire early today, enroute from Pauillac, near Bordeaux, to Le Havre.

Abondoning the ship two hours later, the crew was rescued by the Hamburg-American liner Ruhr. The L'Atlantique was proceeding without passengers to Le Havre for overhauling. The maritime perfect at Cherbourg sent the minelayer Pollux to the scene while other boats were held ready to assist, but the liner was believed lost. The fire was continuing. Meager reports indicated the entire crew of about 240 members was rescued from the burning ship but it was unknown here where they would be landed, the scene of the fire being 75 miles off Cherbourg.

It was reported the crew of L'Atlaatique took to the sea- in boats at six a. m. The failure L'Atlantique itself to radio SOS calls led to the supposition that the fire started in the radio cabin from a possible short circuit. Niton, Isle of Wight, Jan. 4.

(AP)-The German steamer Ruhr reported the liner L'Atlantique. which caught fire early today in the English channel, had a crew of 260 members of whom 80 already were transferred to the Ruhr. The British steamer Ford Castle, a quarter mile away, was proceeding to assist. LANGER PLEDGE FOR ECONOMY IS REITERATED NEW SOURCES OF REVENUE MUST BE FOUND TO BALANCE BUDGET Wheat Price to Have First Consideration DECLARES UNJUST BUDGET BOARD CUT OF STATE AID TO SCHOOLS Bismarck, N. Jan.

4. (AP) Drastic reductions in state expenditures to bring them $3,758,796 below the appropriations allowed for the last opening of new avenues of revenue, abolition of the capitol commission, a tax 011 chain stores, and use of counties' share of the gasoline tax for poor relief are among made by Governor William Langer 1 in his inaugural message to a joint session of the North Dakota legislative assemblies late this af. ternoon. The governor, pointing to the re. commendations of the state budget board for reduction of state appro.

priations by $2,804,527 below those of two years ago, called for an additional slash of $1,071,434. Abolition of all inspectors whose duties would be assigned to eight nien attached to the tax commissioner's office was recommended. and consolidation of 17 minor boards to be placed under tion of the industrial commission was urged. Langer would consolidate the 'oflice of receiver of closed banks with that of the state examiner. and turned over closed banks for liquidation to a depositors and stockholders committee.

Abolition of deputy game wardens, placed by Langer at 1.100. was recommended. Redeposit of stationary reserves of the Bank of North Dakota in state and national banks within North Dakota was favored by Langer. He termed as "unjust" the commendation of the state budget board that state aid for schools be reduced $450,000. The state board of administration would be charged with the duty of completing the new capitol building, and the present capitol commission discharged under atother recommendation.

Declaring that prosperity in North Dakota is dependent 011 wheat, Langer said, "the problem of raising the price of wheat will receive my first consideration." He said he would to effect a meeting of governors of states in the wheat area and work out A joint plan of cooporation with the federal government. The governor promised another message would be sent to the leg. islature in the near future regarding reduction of appropriations for individual state departments not covered separately in his present message. "I am to be the servant not of any particular party nor of any particular group. Irrespective of any party, of any creed, or of any group, I will be the servant of all the people of this state.

"It is said that a public job is private graft, that honesty is a mere name, and expediency is the law of political life. I am aware of the element of truth in this stuto ment and I know only too well that it is a common thought in the public mind, and it is for that reason that I wish to assure you that, as I am entering the office of governor, I am determined to make honesty not only the slogan of my administration, but that I shall do my utmost to see that its principles shall be reduced to practice in the conduct of state affairs. Must Face Problem "The thought that is uppermost in every man's mind is of the devastating effect of this depressed condition. Statesmen and scholars are earnestly striving to find a solution. Is it reasonable for us to think that we cannot in some measure aid in that solution.

We must face the problem as it confronts us in North Dakota. There can be. no return to prosperity in North Dakota that does not begin with the farmer. To my mind, next to the price of wheat, the greatest problem confronting us is the probtaxation and the expenditure of moneys obtained from taxation; and it is to this subject that the greater part of my message (Continued on Page 2) ALL. SCHOOLS RECOMMENDED GREATER NORTH DAKOTA UNIVERSITY SHOULD CONTROL ALL SCHOOL UNITS Montana System is Highly Endorsed SURVEY COMMISSION POINTS OUT WAY FOR SAVINGS TO TAXPAYERS AUTHORITIES MOVE TO HALT FURTHER CLASHES BE.

TWEEN FACTIONS Taylorville, Jan. 4. (AP)Five companies of the national guard were ordered here today to quell disturbances in the troubled central Illinois coal fields. It was the second time troops were called to restore order in Christian county. Officials of the county, helpless in the fact of two killings and repeated ambushings of members of the United Mine Workers of Amerca asked the troops to resume occupation of the county which they left only ten days ago.

Fighting broke out anew today among factions of miners. Lieut. Col. Robert D. Davis of Carbondale, commanding the 130th infantry of the guard who was 10 charge during the three and onehalf month stay last fall, was ordered by Adjutant General Car.

lose. Black to take charge once more. Company A of Danville, B. of Champaign, of Springfield, 1 of Salem and headquarters troop of Sullivan were designated for duty. They were expected here within two hours.

Taylorville, Jan. 4. (AP) Authorities moved swiftly to prevent further bloodshed in the latest flareup of violence in the Central Illinois coal miners wage war in which two persons, one of them a. woman, were killed. Thirty or more persons suspected of participating in street ing at nearby Kincaid last night when the two were killed and about a dozen others injured, were arrested.

Orders were issued by Sheriff Charles Weineke banning picketing at the mines of Christian county and prohibiting public meetings of the Progressive Union, which was organized in opposition to the United Mine Workers of America. The anti-picketing and anti-public meeting edicts came following a conference attended by the sheriff, States Attorney John W. Coale and Major O. E. Davenport of the Illinois National guard.

They decided no "troops would be called after Sheriff Weineke expressed belief the county authorities could handle the situation. Accounts varied regarding the fight in. which Vincent Rodems, working miner from Springfield. and Mrs. Emma Cumerlato, 51, mother of three grown children, met death.

Authorities said apparently Mrs. Cumerlato was struck by a. stray bullet as she stood on A porch watching the fight. For months factions of miners have warred in this area. Last night's melee occurred at mine No.

7 of the Peabody Coal Company which employes workers under a $5 daily basic wage contract by the old United Mine Workers Union. Dozens of workers emerged from (Continued on page 7) Seven Die Over Week-End at Bis. (By The Associated Press) Disease claimed seven lives in the Bismarck district over the new years week-end. Victims included: Carl A. Barneck, 80 Bismarck, influenza and pneumonia, Saturday.

He had spent two years in the U. S. Naval air force and funeral services were held yesterday with full military rites. S. K.

Sorenson, 79, Bismarck, justice of the peace at Crookston, died of heart disease. Burial will be here Wednesday. Orin Almont Dutton, 42, Twelfer township farmer, pneumonia, Sunday. Burial today at Glencoe. Auto Thefts Drop in N.

D. For 1932 Bismarck, N. Jan, 4. (AP)Auto thefts in North Dakota declined sharply in 1932 in comparison with the previous year, accordto Ted Millner of Bismarck, a representative of a Minneapolis handling the recovery of company stolen cars for 10 insurance companies. He said that in 1931 a total of 816 stolen cars was reported with about 80 percent recovery while in 1932 only 239 were stolen with a- bout 92 percent recovered.

(By The Associated Press) Adoption of the Montana system of higher education. abolition of the office of commissioner of agriculture, adoption of a state support system of elementary education, consolidation of smaller elementary schools and utilization of prison labor for reforestation and water conservation mark the highlights of the closing recommendations of the governmental survey commission to relieve the state tax burden. The commission explains titat the act under which it was created confined its study to matters that may be classed as strictly governmental and "for this reason, has not conducted a survey of such industries or departments as the Bank of North Dakota. state mill and elevator, state hail insurance department, state bonding fund state fire and tornado fund, and workmen's compensation bureau. feeling that a survey of such 1101- governmental functions is not within its province." Cost in N.

D. Highest Pointing out that the cost of Pducation in North Dakota is the highest in the United States with the percentage cost to income at percent, or a total of 641.250 out of the income of 024.600 in 1928, the commission says these -figures indicate "some thing is wrong "The somewhere," it adds is in our system of administration. There is no centralized authority qualified to administer higher education. Too Many Units "There are too many unorganized units of education. There is 110 control of inter-campus compotition.

There is 110 unified budgetary system. There is 110 coordinated supervision that will eliminate waste of effort and cOst. There is 110 systematic. concise and connected presentation of information concerning our schools to the legislature upon which it can act intelligently, nor any centralized authority competent make unbiased recommendatid to the legislature, Under circumstances, there can be nit ed and unified policy of eductl for all our schools, nor an SOUTHWARD DRIVE OF JAP TROOPS EXPECTED TO FOLLOW SOON Chink Losses Placed at Five Hundred JAPS NOW HAVE EIGHT WARSHIPS STATIONED OFF CHINESE COAST (By The Associated Press) Shanhaikwan, scene of the latest outbreak of hostilities between China and 1 Japan, is in the hands of the Japanese after a three-day1 battle. Word from Tokyo said the Japanese command had been warned that nothing must be done to extend the battle zone and that every effort must be made to "localize" the hostilities.

Chang Hsiao-Liang, the Chinese commander-in-chief, reported 10 his government, however, that the troops which evacuated Shanhaikwan were entrenching northwest of there, awaiting reinforcements and preparing to resist any Japanese advance up to Lan river into Jehol. Fragmentary reports of the fighting at Shanhaikwan indicated that the Chinese had put up a good defense. The casualties were variously estimated at between 300 and 2,000. Japanese men-of-war lay off Changwaigtao, not far from Shanhaikwan, and two British vessels were ordered up there today to protect foreign residents. There was a report, which a spokesman for General Chang denied, that the Chinese commander had received from General Nakamura of the Japanese force three demands for settlement of the situation at Shanhaikwan-that General Chang and the Chinese mander at Shanhaikwan apologize to the Japanese; that the Japanese be given control of the Shanhaikwan railway station, and that the Shanhaikwan area be made 9 neutral zone.

BY HAROLD TIMPERLEY (Associated Press Staff Writer) Peiping, China, Jan. 4. (AP)--Chang Hsiao-Liang, military of North China, served notice Japanese authorities (Continuea on page 7) trol of cost." Organize as One Institu To relieve the situation higher education field th mission recommends the Ing: Ing: 1. All state stitutions should be orga as one institution to be krieret as the Greater North Da University, each institution taining its individuality identity, but as a compone, unit of the whole. 2..

The institution thus ized by legislative enactment" should be under the administrative and supervisory control of the board ofadministration, which should be composed of the governor, the state superintendent of public instruction, and three members appointed by the governor upon the approval of the senate. The appointive members should be named from the state at large, not more than two from any political party, not more than one from any county, and no two to be alumni of the same institution. 3. The board of administration should have the power to employ a chancellor of the university, who should be the executive officer of the board in its relation to the educational institutions. 4.

The duties and powers of the chancellor. should be prescribed by the controlling board and not by the legisla- ture. Same As In Montana This set-up, the commission reports, is identical with the Mon: tana system except that in that state, control is vested in a board of educatior. That system has been in force there since 1915. "It' has operated with great sue.

(Continued on page 6).