Nebraska Newspapers

    page two
PLATTSMOUTH SEMI -WEEKLY JOURNAL
MONDAY, FEBE. 17, 1930.
Alvo News
llprman T, Rnrnnipfpr and Rimnn
Rehmeyer were visiting at Elmwood
lor a short time last baturday eve
ning.
Georee Hall of Elmwood was t
visitor and was looking after some
business matters in Alvo on last
"Wednesday.
Lloyd Lewis and Bud Nlekles, the
former of Union and the latter of
Murray were called to Alvo on some
business matters on Tuesday of last
week.
Mnrh mm is Leine shelled and de
livered to the Rehmeyer elevator at
Alvo. Mr. Rehmeyer taKes an me
offerings and endeavors to get the
very best prices lor tnem.
Fred Taylor and Hal Parsell were
building a brooder house at the lum
ber yard for the use of Mr. and Mrs.
Frank Taylor who are much inter
ested in chickens at this time.
Frank Taylor and Simon Rehmey
er and family were guests at the
hospitable home of Herman L.
Eornemeier and wife for the day
and a vrey fine dinner on last Sun
day. Simon Rehmeyer and family were
ever to Weeping Water on last Mon
day where they were guests at the
hom.e of Mr. and Mrs. Chris Rasmus
sen and where all enjoyed a very
fine visit.
J. B. Roddy and R. E. Foster, both
of Union were looking after some
business matters in and about Alvo
on Monday of last week, they were
also visiting with their friend, John
W. Banning while here.
George Braum and wife, both
operators and who make their home
at South Bend, where Mr. Braum is
employed, were in Alvo on last Wed
nesdav visiting at the home of Mr.
and Mrs. Wni. Yeager, parents of
Mrs. Braum. and with other friends
in Alvo.
Albert B. Stromer has been hav
ing some trouble with his throat on
accounted of affected tonsils for
some time and recently he had the
offenders removed and had a very
sore throat on account thereof. Dur
ing the time that he was not feel
ing like making the grade, Roy Coat
man carried the mall..
Eas An Excellent Time.
The Alvo Ladies reading club
which is a vrey active organization
for the better features of life in the
city, entertained at the church with
a very fine program as well a3 a
banquet on last Thursday evening.
A large crowd was present and an en
joyable time was had.
Alvo Growing in Population.
The hustling city of Alvo made
some substantial gains in population
last week. The stork visited and
blessed the home of Mr. and Mrs.
Ted McCartney by leaving a boy In
their home, which was received with
outspread arms and with great joy.
The mother and young man are do
ing nicely and the father talerble
well. The following day, a blessing
was bestowed on the home of Mr.
and Mrs. Sterling Coatman, when a
baby boy was born to then:. The joy
did not end at the household, but
extended to the homes of R. M Coat
man and wife and Simon Rehmeyer
and wife. As thi3 fortunate couple,
Stirling and Eleanor have hosts of
friends, they are all rejoicing.
Lincoln Put On a Mask Ball.
That is not so strange but in this
instance, there were a large number
of the reople from Alvo who were
present, who attended the function
and had a very fine time. Those to
attend were Elmer Klymer and wife,
Art Skinner and wife, Frank Taylor
and wife, Gilbert Steele. Walter Vin
vent and Sherril Fifer. A most en
joyable time was had. One feature
of the entertainment was a prize of
a set of aluminum ware, which was
offered for the best costume, thi3
being won by Frank Taylor for the
most original costume.
CHICAGO DEALS WITH RESCUERS
Chicago, Feb. 11. A getting to
gether by the city administration and
the citizens' committee endeavoring
to rescue Chicago from Insolvency
was at hand Tuesday.
Silas H. Strawn, chairman of the
citizens' group, gave his approval late
Tuesday of the administration's move
to create a joint committee of citizens
and city hall officials to handle the
sale of 19'0 tax anticipation war
rants to Chicago business men.
Lewis L. Myers, member of Mayor
Thompson's board of education sub
mitted the plant to Mr. Strawn after
the latter's return from New York
and afterwards announced that the
civic leader had agreed to the pro
posal. Until Tuesday the mayor's
representatives had refused to deal
with the Strawn committee.
IRENE CASTLE'S DOGS DIE IN FIRE
Chicago, Feb. 11. Ninety dogs
burned to death early Tuesday as fire
leveled Irene Castle McLaughlin's
port of refuge for stray mongrels at
Deerfield, 111.
Cries of the helpless creatures
awakened Deevfild villagers. Mrs.
McLaughlin was in a state of col
lapse at her home.
Because telephones were found out
of commission and because the names
broke out simultaneously In the three
kennels, police are investigating.
Although the majority of the dogs
that perished in the lire were dere
licts, a number were thoroughbreds
left in the quarters for the winter.
MENINGITIS CLAIMS
KENTUCKY EDITOR
Cincinnati, Feb. 11. Harry Meir,
49, managing editor of the Kentucky
Times-Star, died late Tuesday from
spinal meningitis and Bright's dis
ease. He was ill only two days.
Bank Situation
Said to Require
Revised Policy
Failures, Reserve System Defections,
Chains' Point to Need
for Legislation
Washington Pressing and im
mediateneed for revision of banking
laws and perhaps a revolution In the
theory of banking practice, it Is
thought in some quarters, may be
the result of continued bank failures
and withdrawals of banks from the
reserve system. There Is a strong in
timation that a changed policy will
be favored by the Treasury and pos
sibly by the Administration. A reso
lution authorizing an investigation
of chain and branch banking has
been favorably reported to the House
of Representatives, and the McFad
den Committee on Banking and Cur
rency will soon explore the whole
matter.
The situation results from failure
in the last eight- years of close to
5000 banks, or about one-sixth of
those in the United States. News
from North Carolina reports failure
of six county banks in Rutherford
County, while a dispatch announces
another failure, in Denton. Tex. Con
tinued failures with consequent loss
to subscribers, combined with defec
tions of banks from the reserve sys
tem has caused a situation demand
ing change, in the opinion of high
Treasury officials here. Attention is
directed particularly to the question
of the essential soundness of the
whole system, which centers on the
issue of whether branch-banking
now rorbiaaen snail De permmeu.
J. W. Pole, Comptroller of the Cur
rency, last uctoDer Deiore me Amer
ican Bankers Association at San
Francisco, advocated a sweeping
change in the federal prohibition of
branch banking. Unofficial reports
ascribe similar views to Andrew W.
Mellon, Secretary of the Treasury.
It is felt that the Administration may
follow this view. Conditions leading,
to Mr. Pole's view have become more
acute since that time, it is asserted.
The ban on branch banking is a
historic American policy, but it is
not found elsewhere. The American
theory is that unit banks should be
aintained, drawing their income,
capital and officers locally. This is
opposed rto the. ownership of one or
more banks by another.
Now a third type has been evolv
ed. This is the "chain bank." A
holding company is "formed which
acquires control of several banks,
which however have their own board
of directors. Legally each bank is
independent but actually they are
operated as a unit. Some 240 chains
bank groups, owning about 1800
such banks, are now known. Such
Uclding companies are not now sus
ceptible to supervision either by
state or federal bank inspectors, and
operate therefore almost without
regulation.
A further situation causing the
greatest concern is the continued de
fection of banks from the reserve
system. Reserves of the national
banks as contrasted to state bank3
had sunk from around 45 per cent
in 1919 to only 39 per cent in 1929.
One of the reasons for this, up to the
passage of the McFadden Act was the
fact that state banks could engage
in branch-banking, if only to a lim
ned extent, eitner witnin city or
state limits, in many communities.
The McFadden Act was designed to
relieve thi3 discrimination, but other
discriminations remain and Treasury
officials look forward apprehensively
to a time when the reserve system
will be seriously weakened by the
process of continued withdrawals,
which is still going on.
Mergers of great city institutions
are another manifestation of the
same economic need for larger cap
ital, it is held in financial circles.
The legal loaning capacity permitted
a bank to any one capital and sur
plus, giving an incentive to enlarg
ing the size of such capital by merg
ers. One New York bank has now re
sources of $2,500,000,000, and there
are two others with resources of
more than $1,000,000,000 each;
there are now 12 banks with re
sources of $500,000,000 or over, and
160 with 150,000.000 or over.
All the foregoing factors enter into
the belief, expressed here, that the
time has come for a thorough inves
tigation of present methods, and
legislation to prepare for the future.
LANDS SAFELY IN
DEAD' PARACHUTE
Roosevelt Field, N. Y., Feb. 12.
Aviation tradition was defied here
Wednesday afternoon when Henry
Buddy" Bushmeyer, parachute in
structor, made a 2,000-foot jump with
dead man s parachute.
Bushmeyer made the jump in the
stil blood-stained chute which Elliott
Delisser wore when killed last week
in a nairplane crash.
District Attorney Elvin N. Ed
wards had confiscated the chute for
investigation regarding the respon
sibility for Delisser's death.
In order to show that the para
chute was not at fault, Bushmeyer,
with county officials watching,
jumped from a plane 2,000 feet up
and made a safe landing.
CAROLINA'S OLD GOLD
MINES STILL ACTIVE
Raleigh. N. C, Feb. 14. North
Carolina has produced gold and sil
ver worth $23,603,766 since the dis
covery of the precious metals in the
state in 1799. Annual production
has ranged from $225,000 in 1887
to $1,000 in 1919.
Law Brief Glinting T Sure, the
Journal does it at right prices. Tell
your lawyer you want us to print
vonr brief.
LOCAL N
EWS
rrom Thursday's Danv
Hon. Fred L. Nufzmann of near
Nehawka was In the city today for a
few hours attending to some matters
of business and visiting with frinds.
E. H. Wescott and Jess Perry
motored to Auburn last evening
where Mr. Wescott was the main
speaker at the Fathers and Sons ban
quet held In that city as a part of
the Boy Scout week program.
Krom Friday'" Tmlly
Mr. and Mrs. Joe Boyd of Kansas
City, Missouri, are here for a few
days visit at the home of Mr. and
Mrs. John Sattler. Jr.
Ray Preston of Elmwood was a
visitor here Thursday were he spent
a few hours attending to some mat
ters of business and visiting with
friends.
Mrs. Mae S. Morgan, who has been
here for the past week following the
funeral of her mother, Mrs. M. A.
Street, has returned to Burlington,
IEowa, to resume her school work
there.
Jess F. Warga, local dealer of the
Frigidaire company, departed this
afternoon for Kansas City where he
will attend the convention of the
company that is being held there
Saturday.
State Senator W. B. Banning of
Union was in the city for a short
time today attending to some mat
ters of business and visiting with
friends. Mr. Banning is anticipat
ing an early calling of the legisla
ture to consider the bank guarantee
situation.
Krom sntnrrtay'B Parly
Carl Ganz, the Alvo banker-law
yer, was here today for a few hours
looking after some matters of busi
ness.
Mr. and Mrs. W. O. Troop and chil
dren, Lois and Tommie. were here
today from near Nehawka, Miss Lois
attending the county spelling con
test. Attorney J. C. Bryant of Ashland
was in the city for a short time to
day visiting with friends and look
ing after some matters at the court
house.
County Attorney W. G. Kieck and
Attorney John M. Lyeda were at Ne
hawka today where they spent a
few hours looking after some legal
matters at that place for the day.
Thomas Svoboda, constable, was
at Louisville yesterday afternoon
where he. was busy placing quaran
tine signs for chickenpox and scarlet
fever of which there is a great deal
existing in our neighboring city.
Mr. and Mrs. Arthur Schroeder de
parted this morning for West Point,
Nebraska, where they will visit at
the home of a sister of Mr. Schroe
der, for a short time and on their re
turn will stop at Omaha for a visit
with friends. Mr. Schroeder ha
just recently returned home from
the hospital where he was for sev
eral weeks.
WEAVER, AVERY ON RADIO CARD
Lincoln, Feb. 13. Governor Weav
er and former Chancellor Avery will
be the main speakers in the Univer
sity of Nebraska observance of Char
ter day Saturday, Feb. 15. The entire
program, consisting of other talks and
musical numbers, will be broadcast
over KFAB, beginning at 10 p. m.
The exercises at Lincoln will be
supplementary to the meetings held
by the alumni clubs throughout the
state and nation. A number of fac
ulty mmbers will appear before the
various clubs during the next two
weeks, bringing messages from the
university.
The governor and Dr. Avery will
each speak five minutes over the ra
dio, while others on the program will
have to restrict themselves to two
minutes. The complete program, as
released by the alumni secretary, is
as follows:
University band, Governor Weaver,
Dr. Avery. Girls' octet. Dr. L. A.
Sherman, Miss Laura B. Pfeifer, Dr
H. H. Waite, Prof. Clara Conklin,
Prof. Elizabeth Reese, Dean G. A.
Grubb, Dean O. J. Ferguson, Prof
C. A. Robbins, Prof. D. D. Whitney,
R. D. Moritz, Dean W. W. Burr. Dean
K. A. Lyman. Dean II. II. Foster.
Prof. H. II. Marvin, Prof. J. E. Klrsch.
man. Prof. J. E. Alexis, Prof. H
Grummann, the band.
DEFENDANTS ARE FREE
Oklahoma City Argument to the
jury in the Pottawatomie county li
quor conspiracy trial in federal court
here was started Thursday night af
ter further depletion of the number
of defendants, originally 102, by
Judge Edgar S. Vaught's sustention
of motions for instructed Windrow
and Gua Heme, jr., negroes, and R.
L. Sherill, former constable at Maud.
Among the twelve remaining defend
ant are Randall Pitman, county at
torney, and Frank Fox, former sher
iff of the county.
A half dozen women from the
Shawnee chapter of the Women's
Christian Temperance union, who at
their request had been seated "where
the jury can see us," Thursday were
ordered to take seats behind the rail
ing after they had been seated in
the enclosure set aside for lawyers
and defendants. The move was made
after defense attorneys protested to
the court they learned the idenity
of the visitors.
DE RIVERA LEAVES
LAND HE
RULED
Barcelona, Spain, Feb. 11. Primo
de Rivera, until two weeks ago the
dictator and "strong man" of Spain,
Monday left the country which he
governed with an iron hand for six
years "to escape the attacks and
criticisms" leveled at him for his
acts while In office.
The former premier boarded a
train here for San Remo, Italy.
Journal Want-Ada get results.
Manley News Items
Teddy Harmes was called to Om
aha the first of last week to look after
some business .matters.
Mrs. Theo Harmes was spending a
number of days during the past week
at the home of her parents, Mr. and
Mrs. Henry Peters, of Talmage.
Rudolph Bergman and wife were
over to Omaha last Tuesday, driving
up to look after some business mat
ters and also visiting with friends
while there.
Otto Harms and Harold Krecklow
were assisting with some carpenter
work which was being done at thefl
state fisheries at South Bend by Mr.
Henry Elseman.
Walter Mockenhaupt and the fam
ily were enjoying a very fine visit at
the home of the parents of Mrs.
Mockenhaupt in Omaha, John Tlghe
and wife, on last Sunday.
Miss Anna Erhart, who is employ
ed in Omaha, was an over week end
visitor at the home of her mother,
Mrs. Catherine Erhart. where she
enjoyed the visit very much.
The quarantine which was placed
on the home of Herman Dall early
last week, on account of the im
provement of the case which was
round there was removed a few days
ago.
Fred Bauer and family, who have
farmed on the Red Ball highway west
of Manley, moved into their home
property in Manley last week and
will make their home here for the
present.
George Bauer and the family have
been placed under quarantine on ac
count of the small pox at their home.
They are, however, getting along
nicely and it is hoped will soon be
over the malady.
John Gruber has been assisting in
the handling qf the grain at the Man
ley Farmers Elevator, where deliv
eries have been pretty heavy of late,
and of such volume that Mr. Hawes
was not able to care for it all.
Ernest Hainey and wife entertain
ed on last Friday for supper and the
evening, having as their guests for
the occasion Messrs . and Mesdames
Herman Rauth and Ray Smith. Need
!cs? to say, all enjoyed a very fine
evening.
Mrs. Harry Haws, who was at
the hospital for a time and where
she underwent an operation for re
lief from appendicitis, was able to
return home last Friday and is mak
ing very satisfactory improvement
at this time.
Oscar Dowler and family .were
z-uests for the day on last Sunday at
Hie home of Mr. and Mrs. Lawrence
Wiseman, west of Weeping Water,
where all enjoyed the visit very
much. Mesdames Dowler and Wle
:nan are sisters.
A. Steinkamp was a visitor over
irg after his work as representative
of a Btock food company, but found j
many of the larmers away trom nome
that particular day, as they were at
t3r.ding a neighborhood sale.
Miss Carrie Schaefer, who is re
ceiving treatment at the Clarkson
hospital in Omaha, where she has
been for some time, is reported as
Jeing slightly improved.
friends are hoping that she may soon
be entirely well again and able to re -
turn to her home
i tie -Maniey t armors tievator com-
pany are having installed a new,
moisture tester, with which they will)
be able to ascertain the exact amount j
of moisture in grains which they !
buy. In order to secure the very best, j
they observed the recommendation of
Peter E. Diehl. who is government ,
mam uipeiiui, iwidicu ai JJlulu'" eprloimlv in a mm hittle latA Wed
With this new machine they wiirbe LI w0n SSS; twm.,
able to grade the grain received and , ben f nman and sheriffs
.o,- ,0n.H f,nrt ! dputles who went to the man s home
those to whom they consign the var-j0
i,,a cViir.mor.fo Tf 4a fha hoot cnlllr- 1
ment of this kind available and very
accurate.
Good Oats for Sale
We have a quantity of very good-
oats at the elevator, which we arejtne Bheriff went to the barQ
oueruig ai ouc per uusiiei ai me ele
vator as long as they last. Manley
Farmers Elevator, Harry Haws. Man
ager, f 17-3 w
Will Make Home Here
Andrew Schliefert. who has resid
ed west of Manley for many years.
recently purchased the home of Aug
ust Stander and will become a citizen
of Manley, having moved to the place
during the present week. Mr. Schlie
fert and wife will make good citizens
of this hustling littlo city and are
welcomed by the other excellent fam
ilies here.
Occupying New Home
On Saturday, a week ago, W. J.
Rau and wife moved into the house
which has been the home of Mrs.
Rose Kelly for many years and which
she sold to the bank, and which has
been undergoing many changes the
past few weeks and was only com
pleted a short time since. Mr. and
Mrs. Rau will find this a very com
fortable place to reside and will be
handy to their work.
Visiting in Iowa
An uncle of Mrs. Ray Wiles from
Iowa was here for a short visit and
when they returned early last week.
Mrs. Wiles accompanied them for a
short visit. During the latter portion
of the week, Mr. Wiles drove over
also for a short visit and tho wife
returned with him Sunday.
Will Make Home in Louisville
Herman Mann held a very fine sale
last week and the property which he
was offering being in excellent condi
tion, brought good prices, so ue wass
well satisfied with the returns. Mr.
Mann will with the good wife move
to Louisville in a short time, where
they will make their home.
Visits Sister at Omaha
Last Sunday John C. Rauth was a
visitor in Omaha, where he went to
visit with . his sister, Mrs. August
Glaubitz, who is receiving treatment
in a hospital at Omaha. Mr. Olau
bitz has been in poor health for some
time and is receiving treatment with
the hope of being restored to her
former good health. Mr. Rauth re
ports the sister some better.
Had Fine Meeting
The xtension club of Manley were
gathered at the hospitable home of
Mr. and Mrs. Frank Reister on last
Wednesday afternoon, where a most
profitable afternoon was spent in the
work which tha ladies had in hand,
and receiving instructions in other
work. Following this came the so
cial hour, which was greatly enjoy
ed and the very fine refreshments,
which the capable hostess served. All
voted for an early date at which the
gathering would be at this hospitable
home.
Will Build .Office Soon
The Manley Farmers Elevator com
pany, which has been doing a very
fine business during the pant couple
of years, has had very cramped quar
ters for the scale and office room,
and in order o get more room will in
the near future start work on a naw
office that will be 14x24 feet in Hire,
wit ir two rooms, thereby providing
much better quarters for the trans
action of the business of the com
pany. More Than Half a Century
On Lincoln's birthday annlvernary,
Fred Flaischman was also celebrat
ing the passing of his fifty-first anni
versary. Fred has spent many yearn
in Manley and has a hot of friends
here who are extending congratula
tions to this happy and go a head
many who pays his toll to youth
and age, doing his full quota for the
benefit of his community, and trav
els on with cheer. Lincoln was born
seventy years before Fred was.
Community Program Thursday
The Manley Community associa
tion, not so unlike the gatherings at
the heme of Seth Parker, of North
port, Maine, but with the same spirit
of friendliness which characterizes
the eastern meeting, met last Thurs
day at the Manley hall, whero they
gave a program covering some thirty
minutes, after which the meeting was
resolved into a social affair and with
games and some dancing, which
evinced their enjoyment in the get
together meetings. A splendid time
was had, and the next meeting will
be held Thursday, February 27th.
All come.
Will Farm This Year
Will Gerlach, son of Charles Ger
lach, who has been making his home.
In Omaha, will farm on the Gerlach
farm this year, and following the
sale of Frank Goodman and his de-
parture for Esex, Illinois, will move
onto the farm and become a cltlren
of thlS OUDty aSaI"
Moves to Manley
Mr. and Mrs. Al Hill, of Omaha,
who recently purchased the home of
W. J. Rau and wife moved to Manley
during the past week and are duly
installed as citizens of this hustling
city. They who have resided In Om-
Her many'3'14 are pleased to make their home
; here and will find Manley a very
j Place to reside.
FARMER SLAIN BY OFFICER
Everett, Wash. Al Kinman, fifty,
a Iarmer, anci alleged moonshiner of
the Cicero district about fifteen miles
northwest of here, was killed, and
j w Thomas, forty-five, Snobomish
count d Bheriff, was wounded
?earfh f?r li(J"or- Thomas was shot
"l l" ttUUUUieu.
Accompanied by Sheriff George
I. Stevers, and Deputy J. J. Jack
son, Thomas had gone to Kineman's
home with a search warrant. Thomas
Qf nnno at trio frnnt rlrni" urTHla Ta r1 V
t. tho f th ,im,ao aTlH
Thomas knocked, Kinman an
swered and when told that officers
were there, opened the door and shot
Thomas twice. Sheriff Stevers said.
Thomas did not get a chance to pull
his gun, the sheriff said. Jackson ran
around the house as Kinman stepped
onto the pim h and the farmer start
ed shooting at Jackson. Jackson re
turned the fire and killed Kinman.
STAMP TAXES IN BIG RISE
Washington, Feb. 12. An Increase
of $23,936,369 in stamp taxes collect
ed by the government In 1929 as
compared with the previous year was
shown Wednesday in an Internal
Revenue bureau statement.
A total of $78,593,360 was col
lected fro mthis source in the 12
months. The largest gain in the
stamp taxes was from capital stock
sales and transfers, which rolled up
an aggregate of $47,840,580 in 1929,
as compared with $30,327,890 the
previous year. j
The tax on bonds of indebtedness,
capital stock issues, etc.. totaled $21,
799,213, a gain of approximately
$6,000,000 over the previous year,
Sales of produce paid $3,765,755 and
the playing card tax, $5,187,811.
New York led in the amount paid
into the treasury on stamp taxes,
turning in $56,682,905. Of this. $42,
609,799 was from the tax on capital
stock issues or transfers, a gain of
rpproximately $15,400,000 over the
previous year.
SHIP IS REPORTED LOST
Algarve, Portugal The captain of
a Spanish fishing smack reported to
the Portuguese authorities Thurs
day that the Portuguese steamer
Tigre had gone down at sea with all
hands, presumably from an explosion
in the boiler room.
. Warships were sent out to search
for wreckage and survivors.
Read the Journal Want-Ads.
Everyday s
at the Brink Hatchery
Try some o our prize winning White
Leghorns or iliizo early Fali layers.
Our next hatch will be off February 226,
and the last of each week from then on
until the end of the hatching season.
WE STILL HAVE A FEW TRAYS FOR
Custom and Production Hatching
Custom Hatching, Zt; $2.75 for 96-egg tray
Production Hatching 5c per chick
Come and See Our Hatchery Let'i Get Acquainted
rink Hatchery
18th and Granite Phone 631-W P. O. Box 417
Plattsmouth, Nebr.
Gov. Weaver
Gives Plan for
Bank Law Relief
cers.
; Th's program, the governor says, is
Would Have State Aid Banks in the based upon the obvious facts that the
Payment of the Leases to De- Lstate and the banks have a joint
positon in Banks. '"moral responsibility" to the depo-i-
.tors, and that "we must not overlook
the necessity for making suitable pro
Lincoln, Neb.. Feb. 13. Governor viicn for present depositors."
Weaver today, in a special statement "Nebraska has neither a shortage
to members of the state legislature . fjf commoditieg nor a shortage or
who will meet in special aauicn ear,y j monies he say3. "Splendid crops
in March, urged repayment of inct;year after year and farIly remuner
of the losses of depositors In banks ative prices su9tain that statement.
which failed under the old state bank 0ne le are industrious enterpris-
gram for "restoration of the etate
banking system."
His program contemplates a re-
payment fund of 16 million dollars.
to which the state and the state
banks vll each contribute eight mil-
lion dollars, over a period of 10
years. (The actual losses at the be
ginning of his administration, he es
timates, were from 16 to 20 million
dollars. Now they are at least
million dollars.)
He proposes a system for the fu
ture by which each bank shall accum
ulate Its own "guaranty fund" to be
used only for payment of Its deposi
tors If it fails. This fund shall be
obtained by an annual assessment of
three-tenths of 1 per cent of the av
erage daily deposits of each bank.
It shall be placed, In the form of ap-
yiuveu secuimes, m ine nai us ui iuthat the state was guaranteeing their
state treasurer, to oe held for tne
protection Of depositors. This assess-
nieui, lie prupuaes, buau cuuuuue un
til the reserve is at least equal to
the capital stock.
Needs Constitutional Change.
The soundness of this proposal,"
he says, "is based on the fundamental
proposition that what each bank is
assessed in the future will be for the
protection of its own depositors, to
whom it owes its first duty, rather
than for payment of depositors in
other banks, concerning which, un
der the involuntary partnership
plan, it has no voice as to policies
or management."
His repayment plan, the governor
points out, hinges on approval by
the people of a constitutional amend
ment which authorizes appropriation
by the state of sums up to eight mil
lion dollars, to bepaid the deposi
tors.
He points out that this can be
done without increasing the state
tax levy. The final levy for the state
capitol, approximately 22 hundredths
of a mill, will be made In 1930. "A
continuation of the amount of the
capitol levy for a
should be sufficient to take care of
the appropriation for the relief of de
positors," the governor says.
Bank Assessment Plan.
The banks' contribution to the re
payment fund shall come, he pro
poses, by collection of unpaid assess
ments, which the banks, through a
long legal battle, have sought to
avoid paying, and by annual assess
ments of two-tenths of 1 per cent
of average deposits, to continue for a
period of 10 years.
About three million dollars Is now
due and unpaid on assessments under
the old law. The additional assess
ment will bring in five million dol
lars in 10 years, he estimates.
He suggests that the three million
dollars now due be paid over a period
of three years, at the discretion of
the bank commissioner and the sec
retary of the department of trade and
commerce.
The two-tenths of 1 per cent as
sessment will not work a hardship
upon the banks, he points out, be
cause it is less than the "banks are
now saving annually on taxes under
the new intangible tax classification
A and B."
To Bond Bank Officers.
Other items of his dual program
follow:
Distribution of all relief funds on
a step-up basis, beginning with those
depositors who so far have received
the least amounts.
Leislation requiring all bank offi
cials to furnish bonds.
Restriction of deposits to 15 times
the amount of capital and surplus.
uisif or s Bay
Adoption of the constitutional
! amn'iir.fer.t ur.'ier which double Iia
bi!:ty r,t stockholders wiir accrue at
: the time of a bank failure, rather
!than at the time of its final liquid
ation.
w
LtgialaMon making- it a crime to
CTlate lies about a bank or its offi-
bank problem no serious economic
difficulty confronts them. A return
of confidence will come under a new
:hak,T, nlflT1 fnr th"fntlir1. nT,H nn
; equitaDie settlement with depositors
win nut mir triio fnnrU wnri: hoth
In the banks aad ln the buslneE3 of
the state.
"In reaching a decision as to the
fiitnrfl Rvstflm wo will find BTtrpma
20:posltlong taken hy both tho bankers
and depositors. The solution rests
in finding a sane position on middle
ground."
The statement concludes:
"If the citizens of this state could
read the files In my office disclosing
the tragedies which have come into
the lives of splendid Nebraska citi
zens, many of them past the earning
period, and who in the sincere belief
RJ,virir nr ho nrnr-PP of nn
nnlirv nr BUffrine- frnm tho
preferential and confiscatory policy
of the state in the operation of insol
vent banks, are now homeless and in
distress for the bare necessities of
life, the result of the vote of thi3
eight million dollars' constitutional
amendment would be unanimous."
The governor's recommendation is
said to be based, to a considerable
extent, on a study of the South Da
kota plan.
FORD HAS A NEW AMBITION
Ft. Myers, Fla. Henry Ford said
Thursday he would devote the re
mainder of his life to education, and
in developing his ideas would spend
perhaps $100,000,000. Confirming an
interview given out earlier in the
day, the Detroit motor car manu
facturer said he wanted to do every
thing he could to help young men to
fit themselves for the world.
He said he would build a number
of schools in various parts of the
country and while he does not yet
know their exact number or location.
period of years,he Radi the nucieus wuold be the Edi-
son institute of Technology, founded
last year at Dearborn, Mich., during
the celebration of the golden anni
versary of the electric light.
Mr. Ford said he believed every
youth should learn a trade, to keep
him active and out of trouble. He
said that when students come out of
school they should be in demand and
not be shifted about aimlessly.
RADIO STATION IS RAIDED
New York Federal agents Thurs
day night raided a bungalow in In
wood, L. I., which they said con
tained a powerful radiostation used
in communication with rum run
ners along the Atlantic coast. The
alleged operator of the station was
arrested. The agents said that when
they entered the bungalow the oper
ator, whose name was not immediate
ly available, was in the act of com
municating in code with a vessel at
sea. The apparatus was confiscated.
The agents said they had been seek
ing the locating of the radio sta
tion for three months.
10-YEAR FUGITIVE
HELD FOR SLAYING
Chehalis, Wash.. Feb. 10 A fu
gitive for 10 years. Elisha Mullins.
alias Bill-Johnson, was under arre-t
Monday for the murder of Clay Lus
her in Webster county. West Vir
ginia.
Your aa in the Journal will h
read, and they sure do get results.