The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-07-30
State Mills Money!
Is Ciuet1 Wild Ride
$3.50 Taken From State In.
dustry for Leader Is Return.
ed. After Battle
WAS FORCED TO DIseoReE
Peterson Wrote Check, Then
Hurried to Get Il Back
With Sathrs's Help

How the North Dakota Leader"
political newspaper, obtained $3.50
from the state mill and elevator and
then was forced to disgorge 1t was
exposed Sunday by the Fargo Forum
after an investigation Of rlmors
heard in Bismarck last week.
The money was paid by Ludwig
Peterson, mill manager, to James
Mulloy, former secretary Of the state
industrial commission, and Oscar
Chaput, Leader" business manager,
on q contract which previously had
been ordered cancelled by Governor
Ole Olson and the industrial COM
mission.
Involved in the story are DR.. NJ. w.
Roam, Bismarck: Attorney General
p. o. Satire, LANCER and his political
aides; Peterson and hts wife. It tells
how Peterson paid out the money
and later recovered 1t, with sathres
assistance, after he had come to the
conclusion that the payment was a
mistake.
The tale begins with the signing Of
an advertising contract between the
mill and 1.-THE Leader" on July 2,
three days after LANCER and his as
sociates had been sentenced to fed
eral prison for crime against the
government. It covered mill adver-
Using for q period Of 48 weeks, re-
quired that q minimum Of 70 inches
q week be used and fixed the rate at
$3.50 q column inch. A special clause
provided 4 15-per-cent discount u the
money was paid In advance .=s
Satire Entered Protest
At q meeting Of the industrial COM
mission the same day, attended only
by LANCER and Satire, the latter pro-
tested the contract and particularly
the advance payment clause. In q
telephone conversation with Peder-
son he advised him not to make any
advance payment and confirmed this
advice with special delivery letter.
On Monday. July %, Chaput and
Mulloy, who had resigned" as Sec
rotary Of the industrial commission,
appeared at the mill and asked
Peterson to make advance payment
on the advertising contract. Peder-
son demurred but they persisted and
he finally drew check for $3.50,
payable to 1.-THE Leader" It was en-
dorsed by Chaput and Peterson and
cashed at the Red River National
Bank In Grand Forks withou. delay,
Pederson's signature being required
as an Identification for Chaput.
Chaput took the cash and returned
to Bismarck, The Forum relates. He
contends that he delivered it to O. E.
Erickson, LANCER figure-head as
Leader" publisher, but Erickson said
he had not seen the money.
Peterson contends that, ct the time
he made the payment, he did not
know Of the industrial commissions
action In cancelling the contract,
voted on Saturday, July q, after Oh
sons accession to the governorship.
When he learned that the contract
had been cancelled. he piled into an
automobile with Mrs. Peterson and
headed for Bismarck, not far behind
Chaput and Mulloy, who were speed
Ing toward the capitol.
Arriving here ct I q. m, Tuesday,
July -, he reused Satire and told
him what had happened, asked his
help in getting the money back.
Satire thereupon called on Erick-
son and demanded the money be re-
turned to the mill. He is said to have
threatened q lawsuit unless this was
done.
Federson Takes Il Back
Meanwhile, It appears, the money
was In Dr.. Roan's safe. How 1t got
there. or whether 1t was there at all,
Is controversial. but Satire told The
Forum he got it from Roam Wednes-
day morning and turned 1t over to
Peterson, who immediately took 1t
back to Grand Forks.
Chaput said he gave It to Erick-
son but Erickson said he did not re-
ceive 1t from Chaput and that the
first time he saw the currency it was
Ia the possession Of Edwin Mandigo,
hangers chauffeur. But, by what
ever means It got into Roan's safe,
It Vas there that Satire obtained it.
Roam, however, denied that he had
seen the envelope containing the
money or that he had seen Mand1go
In connection with the deal.
Satire served his demand for re-
turn Of the money On Erickson Tues-
day morning but II was late that
night before he was advised it would
b returned. Meanwhile there were
numerous conferences II the COVER
nors mansion, where LANCER still
lives despite his custer. Among those
participating, The Forum asserts,
were Highway Chief Frank vogel,
convicted With LANCER; State Ssna-
tor A. +. Bonxer, Jr., LANCER whip
In the senate, and State Senator g.
q. Bangert. LANCER candidate tor the
supreme court.
All are said to have advised return
Of the money, with Langer opposing
such action on the ground that the
contract Was legal. The advisers
pointed out that ! similar deal early
Ia THE Leader,S' history, In which
N advance payment o. $4,000 Was
made, had brought too much heat
At the end. laneer agreed 70 give up
tho money and oathre Was advised
tOont lled - Pass y