The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-05-07
ATTORNEY CONTENDS
GOVERNMENT HAD MO-
CONTROL OVER FUNDS|
Says It Became Property Of
State Before Leader Levy !
Was Made on It
EXECUTIVE CHEWS CIGAR
Munches Cold Stogie Without
Taking Trouble to Remove
celIophane Wrapper
EXECUTIVE CHEWS CIGAR

Fargo, May 7.-(R)-vigorously at
lacking the indictments returned
against Governor William LANCER and
eight Of his associates. charging them
with conspiracy to collect funds de-
rived from the government for relief
purposes. George Thorpe. defense
counsel. argued before Judge Andrew
Miller In federal court Monday to have
the indictments quashed.
With the exception Of Oscar E.
Erickson, publisher Of the Leader. who
is i'll, all Of the defendants were pres
ent in court. They are Governor
LANCER, Oscar ]. Chaput, business
manager Of the Leader; Frank A.
Vogel, state highway commissioner;
Harold Mcdonald. Leader solicitor; r.
A Kinzer, former executive secretary
CT the federal emergency relief COM
mittee In North Dakota: j. A. Kinzer,
an employee in the relief department,
and Paul j. Yeater and G. A. Hample,
employees in the highway department.
Gov. LANCER sat through the pro-
ceedings during the forenoon chewing
cellophane-wrapped cigar from
which the wrapper had not been re-
moved.
Grand Jury Meets Tuesday
The grand jury which indicted
LANCER and the others Is scheduled to
reconvene Tuesday, supposedly for the
purpose Of investigating further al
legations. It is known that new wit
nesses who did not testify before have
been subpoenaed to appear before the
grand jury.
p. w. Lanier, district attorney. will
take up the governments side Of the
argument during the afternoon.
Most Of the forenoon was taken up
by Thorp in arguing demurrer to
the indictment charging the entire
group with conspiracy to violate sec
ton l18 Of the criminal code which
prohibits government officers or en-
ployees from soliciting funds from Of
ficers or employees or other persons
deriving salary from the treasury OF
the United States for political pur-
poses.
Thorp argued that the charge that
LANCER Is q federal officer or employee
cannot be true, contending the state
constitution Of North Dakota prohibits
him from holding any other office ex-
cept that Of governor.
Not Government Employe
r. A. Kinzer, Thorp argued. was IN
no way employed by the United States,
but was an employee Of Governor
LANCER under the relief set-up in the
state which had to be formulated in
order to obtain loans and grants from
the Reconstruction Finance Corpora
ton.
None of the defendants except Lam
ger and Kinzer are alleged In the in
dictments to be officers Of the United
States, Thorp argued. and he also
offended that the indictment does
not charge that any Of the alleged
conspirators except LANCER and Kin
ger received money from the United
States treasury.
None Of the money which was re-
ceived by any Of the defendants was
-vernment money, Thorp argued
The funds In question, he declared,
were obtained by the state Of North
Dakota from the Reconstruction FL
rance Corporation. which Thorp con-
tended IS the same as any other pri-
vate or individual corporation. and
was in the hands Of the state and
the property Of the state before 1t was
obtained by any Of the individuals
who were indicted.