The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-03-29
INDICATIONS POINT
TO INVESTIGATION
OF LEADER RACKET
Numerous Local Persons Serv.
ed With Subpoenas to
Give Testimony
NEWsPAPERMEN ARE CALLED
District Attorney Refuses to
Talk on Possibilities Of
Jury Action
NEWsPAPERMEN ARE CALLED

Service Of subpoenas on many Bis
marck residents to appear before .
federal grand jury at Fargo on April
10 was regarded here Thursday Is
the opening gun IN the governments
formal investigation Of The Leader
racket" in which Governor william
LANCER and others have been accused
Of mulcting persons on the federal
payroll Of five per cent Of their SAL
aries to support the executives per-
sonal political publication.
Although the nature Of the matters
to be investigated was not disclosed
in the subpoenas. the fact that no.
tees to appear were served on many
state officials and employees as well
as upon one or more representatives
OF every English-language newspaper
In Bismarck, was regarded as signifi-
cant. In all, It was learned from Z
reliable source, approximately 20
subpoenas were issued, most Of them
being served on local residents.
Service was made by U. 8. Marshal
Q. Gunvaldsen. p. w. Lanier, United
States district attorney, also was in
the city Tuesday and Wednesday, but
both declined to comment on the
matters to be presented to the grand
jury.
Whatever the matter up for In.
vestigation may be, 1t Is not proper
for me to comment on 1t at this time, !"
was Lanier,s statement. 1T will be
time enough to disclose what the
grand jury does after It has COM
pleted its session."
May Probe Wheat Deal
From reliable sources, however, It
was learned that the Leader racket"
will hold the grand jury limelight.
with possibility that the jury also
may probe into the operations Of the
state mill and elevator with reference
to the storage of grain there by the
government. Much has been said
and printed with reference to the
handling of Red Cross wheat by the
mill management and q probe may
be made to determine the truth or
falsity Of accusations which have
been publicly made.
Speculation was rife Thursday rs
to the possible basis for a prosecution
based on the collection Of five per
cent from federal employees to sup
port the LANCER newspaper. Some
lawyers said any prosecution, II In
dictments are voted, probably would
be on the basis Of an alleged conspir-
acy to commit felony. The federal
law makes it q felony for one federal
nreN1nva ~ eolinif funds F,evn an
other employe or to solicit political
funds in a federal building. II It can
be proved that this has been done,
some lawyers said. not only the man
who did the solicitation but those
who supported 1t and who profited
from 1t could be charged with con-
spiracy.
II this is the view which Is taken
by the federal prosecutors and the
grand jury. the way Is opened for the
indictment Of everyone alleged to
have taken part, directly or indirect.
~, IN the collections from federal en-
ployes.
Question Raised Months Ago
The question Of five per cent col
lections from state employees was rais-
ed soon after the LANCER newspaper
was inaugurated and later rumblings
were heard Of assessments against
federal employees.
These came to light formally when
Relief Director Harry Hopkins remov-
ed Governor LANCER from MI counec-
ton with the relief administration Ia
this state on the ground that he had
used funds solicited from them for
his personal political purposes.
Later. it was reported 1T Washing-
ton, that Interior Secretary Harold
.. Ickes had presented the matter 70
the department Of justice for review.
Ickes Is in charge Of the Public Works
Administration which supplies prac-
tically all Of the money used In road
construction by the state highway
department.
In . statement Thursday, Governor
LANCER reiterated previous assertions
that he will welcome investigation BY
the grand jury and renewed assertions
that the whole business Is politically
inspired"
IT . grand Jury investigation has
been decided on" he said, Il most
heartily welcome It. From the first
! have made It known ! would de-
mand that the grand Jury investigate
these false charges and I am pleased
to know that my demands have been
met. 4.
AS have said before, the entire
matter Is politically inspired = can b
seen by the fact that my removal @
relief administrator In North Dakota
came just before the Nonpartisan
League convention as part Of "a un-
successful attempt to prevent my re-
endorsement for governor