The Bismarck Tribune Newspaper, May 26, 1933, Page 1

North Dakota’s Oldest Newspaper ESTABLISHED 1873 /U. S. to Abandon Gold Entirel ; Morgan as Utility Czar Adoption of Allotment Plan Truce on Capitol Strike Extended Testi _ DOMINATES FIRMS DOING BIG SHARE OF U. §, BUSINESS Head of Stock-Holding Concern Tells How Banker Or- ganized Company ACQUIRED SHARES CHEAPLY Bought Securities For $12,000,- 000 Less Than Current Market Value Washington, May 26.—(%)—Testi- mony that the United Corporation, whose books are kept in the office of | J. P. Morgan and Company, holds an interest in utility operating compan- ies that do a large percentage of the gas and electric business of the na- tion was given Friday to senate inves- tigators. ‘After his testimony the investiga-| tion recessed until next Wednesday. George Howard, president of the United—a utilities stock holding con- cern—testified as to its organization in which it acquired stock in various utilities at $12,000,000 less than mar- ket value from the Morgan banking; ° partnership and in turn the huge bank obtained a controlling interest in the ‘United Corporation. Consulting his records now and ‘again, the ready witness said the companies in which his corporation holds an interest do 22 per cent of the electric and gas business of the country, on an output basis. In the hot and crowded senate caucus room, he appeared as the third witness in the investigation into ac- tivities by the Morgan firm—the plan being that at the end of Friday’s ses- sion the inquiry will recess until next ‘Wednesday. Gives Details of Deal Submitting readily to questions by Ferdinand Pecora, the committee counsel. Howard painstakingly told how three days after the United Cor- poration was formed, it obtained from | Morgan much stock in Mohawk, Hud- son Power; the United Gas improve- ment company and Public Service of New Jersey. In turn, the United Corporation was authorized to issue a total capital stock of 13,000,000 shares consisting of 1,000,000 first preferred, 2,000,000 pre- ference shares and 10,000,000 common. His words being followed closely by J. P. Morgan and other of the Mor- gan partners, Howard told the crowded room no first preferred had ‘been issued, but 600,000 of the $3 pre- ference stock had been issued and al- 80 800,000 shares of common, all be- ing taken by Morgan. The firm also received 714,000 op- tion warrants entitling it to buy that number of common stock shares at $27.50 a share. “Each share had one vote,” Howard said. ‘Who had control?” Pecora asked. “J, P. Morgan and Company,” Howard returned, while senators at the long committee table leaned over to hear. Held Common Stock Howard said the 800,000 shares of common stock gave control without the exercise of the option warrants for common stock. Pecora asked who the executive of- ficers of the corporation were and the witness began looking through a num- ber of files before replying. “Aren't you familiar with these de- | brief tails?” Pecors voice. Smiling, Howard replied that he was since he became president of the corporation, but not before. The committee previously had de- cided to withhold from publication the list of debts owed to the Morgan firm by partners in the bank. The decision was made in an execu- tive session, but no agreement was reached on the question of publishing the partnership articles under which the great banking house operates. Meanwhile, J. P. Morgan and sundry of his partners awaited the fourth day of inquiry—in the crowded and very warm caucus room of the senate office building. A list of individuals having more than $100,000 on deposit with the Mor- gan firm will be made available to committee members and the question of publication decided later. The senators also determined that at the close of Friday’s session, the hearing will be recessed until next ‘Wednesday. Pecora, Glass in Row Just before the Call Siosad a sharp exchange occu! jween Senator Glass and Attorney Pecora. ‘The Virginian demanded to know the exact course of the inquiry and rajs- ed @ question about Pecora’s reten- tion as counsel, the records contained nothing regarding his ap- pointment. Pecora retorted with a veiled hint that his resignation could be had for the asking. Senator Fletcher, Florida, drew applause by defending the coun- sallor as members of the committee pressed around the table to listen to the controversy. The committee room was packed with an interested crowd despite the oppressive heat. ADVANCE TO FINALS Auteuil, France, May 26.—(®)— Elizabeth Ryan, former Californian, and her French partner, Mme. Rene Mathieu, Friday advanced to the final round of women’s doubles in the French hard court tennis champion- ships, defeating Josane Sigart, af Belgium, and Margaret Scriven, of England, 17-5, 6-2. 2 asked in an irritated THE BISMARCK TRIBUNE BISMARCK, NORTH DAKOTA, FRIDAY, MAY 26, 1933 | | . Pittman Pictured above are six men expect- jed to represent the United States at the world ecoriomic conference, open- ing in London June 12. Secretary of State Hull will head the delegation. Others already chosen are Senator Hiram Johnson (Rep., Urge Speedy To Represent U. S. at London Parley 2 e Wadsworth mony Shows Mo McReynolds | ;Calif.); James M. Cox of Ohio, Dem- ocratic nominee for president in 1920; 'Senator Key Pittman, (Dem., Nev.), and Congressman Sam D. McRey- nolds, (Dem., Tenn.). Congressman FARM CO-OP CHIERS OUTLINE PROPOSAL AT WHEAT MEETING Would Give Benefits This Year on Promises to Reduce Grain Acreage VOICE PLEA AT CONFERENCE All Interested Called to Wash- ington For Session on Government Policy Washington, May 26.—()—Repre- sentatives of wheat growers Friday urged early application of the volun- tary domestic allotment plan and benefit payments to farmers of $231,- 000,000 this summer. This was done at the first commod- ity conference called by George N Peek, chief administrator of the farm adjustment act, to devise methods of increasing farm income. M. W. Thatcher, representing the Farmers National Grain corporation, presented the proposal for 16 wheat grower’s organizations calling for levy- ing of a processing tax by August 1 and payment of benefits to farmers James W. Wadsworth, (Rep., N. Y.). .also is expected to be on the delega- tion. WILL ADD VOICES / ON REPEAL ISSUE Eeastern Delegate to Elect Delegates-At-Large; Oth- er Using Conventions Wilmington, Del. May 26.—(7)— Tiny Delaware adds its voice Satur- day to the national chorus on the theme of prohibition repeai. Voters in the state's 222 precincts will select 17 delegates-at-large to the convention that will meet on June 24 at Dover, the state capital. Observers said the vote in Wilming- ton, which has about half of the state's population of 225,000, probably ; will swing the result in favor of the wet delegates. ee SILVER STATE DROPPED TRIAL 10 YEARS AGO Reno, Nevada, May 26.—(#)—Ne- vada, so-called “wide open” state, which 10 years ago dropped its own experiment with prohibition, will take its first step Saturday on the question of repeal of the eighteenth amendment. At precinct mass meetings, dele- gates will be elected to county con- ventions set for June 10. The county conventions in turn will elect dele- gates to a state convention called for September 5 to ratify or reject a con- gressional resolution re} of the prohibition amendment. Catch One Man Who Escaped | From Jail Delhi, Minn., May 26.—()—Ernest Swenson of Redwood Falls, one of four prisoners who broke jail at Pipestone early Tuesday, was. captured here Thursday night. Swenson was captured within less than five miles of his home town, Redwood Falls. He was serving a 60- day term for escaping from the Pipe- stone county jail a year ago while im- prisoned for assault and battery. Vivian, Mandan, N. D.; Clyde Smith. Bowling Green, Ohio, and Joe La- France, Billings, Mont., held for Mur- ray county authorities on charges of Kidnaping and robbing Leland Lan- ders, manager of an oil station at Fulda, Minn. | Bluebird Sacrifices Life for Her Babes, Springfield, Il, May 26,-—()— ‘The Baby Bluebirds were on their own Friday, their mother having given up her life in what she thought was a fight for their safety. ‘The fuzzy youngsters, making their first solo flights, Thursday came down on a front porch in a forced landing. Their panic stricken mother swooped down to attack six-year- old Mary Ellen Rebock, who was sitting on the porch, then turned her attack to passersby. Two youths defended themselves with tennis rackets. The bird dropped dead just as her two young ones were flying swav. DELAWARE, NEVADA ‘The others still sought are Cameron |. Land Sales Picking Up Bank Officials Report ! | State Institution Reports Some Purchases and Large “Number of Inquiries Land sales are picking up in North Dakota. This word comes from R. M. Stangler, manager of the Bank of North Dakota, and C. W. Lewis, in |charge of the bank's land sales de- | partment. Thirty farms have been sold during the last two months and Lewis has put at 700 the number which he ex- pects to sell before December 1. This still would leave the bank with more land on its hands than it likes to think about but it would be a big improvement on the approximately 2,200 farms which it now has or ex- pects to have. The number of farms which it will list im its files for sale depends in part upon the supreme court's ruling on & law extending for two years the per- fod in which title may be taken af- ter foreclosure. If the old law holds, the farms upon which the bank has foreclosure claims will come into its hands with relative speed. If the new statute is effective the time in which it acquires these properties will be extended. In addition to sales actually made, inquiries are pouring into the bank daily, They come largely from with- in the state, many farmers who have lost their lands desiring to get them back and others seeking to locate on farms. Although the bank desires to get as much cash down as possible in mak- ing land sales, officials are disposed to be “reasonable,” Lewis said, and in- dicated that any bona fide purchaser can make a pretty fair deal. On most of the sales to date the bank has obtained about one third down with an option for contract giv- en the purchaser if he stays on the land and makes a few more payments. As soon as he has paid a little more he is given a contract for deed and a little later the deed itself. This is done, Lewis explained, in order to prevent any entanglements in case the deal doesn’t work out. Terms Are Adjustable - Terms of sales are adjustable, the idea being to have the purchaser pay considerable on his loan if he has a good year and the bank willing to “string along” in the event of a poor crop or low prices. The land sales campaign will be in charge of the bank’s field men, re- cently numbering 18 and now num- bering 15. Their jobs are to manage the bank’s property, make collections. negotiate sales and otherwise handle the institutions affairs in a given area. Each will be given lists of lands to be sold. The land has not been listed with real estate agents in various localities and probably will not be, Stangler said, since this arrangement causes complications, in completing sales and the field men should be able to handle the work. To date no losses have been sustain- ed on any lands sold, the mined until the sales are made. Meanwhile, Stangler said, deposits jin the bank are holding up well. The |bank holiday helped some as since | that time many banks have made re- ‘deposits in the Bank of North Dakota, ! (Continued on Page Nine) starting in mid-July. ‘The plan calls for payment to farm- ers of rewards in return for agree- ments to curtail their wheat output next year. Payment of 70 per cent of the benefits this summer as pro- posed by the growers would, Thatcher said, aid business recovery and assist farmers in the winter wheat belt who have abandoned large acreages be- cause of bad weather conditions. Thatcher said that assuming the net average wheat price to the farmer will be 40 cents per bushel, and that the parity price defined. under the fart act would be $1, 2 processing tax of 60 cents a bushel would be levied. “If our crop for the year will ap- proximate $550,000,000 bushels and our processing will be a like amount, then the imposition of a 60 cent tax per bushel would create a found of $330,000- 000 for benefit payments,” he added. Want Early Action “We ask that 70 per cent of $231,- 000,000 be advanced to farmers at an early date and the balance of the fund over administrative expenses be apportioned near the end of the crop year. We ask that these funds be ap- portioned to states and then by the states to counties, based on past yields and production. “There is no switch on the national board which can be turned to such an immediate advantage to the na- tion as that one which would provide agriculture with some immediate funds for lumber, hardware, paint, clothes, schools, debt payments and 80 on.” “This is the time,” Thatcher con- tinued, “to establish a mutual crop insurance benefit soundly based on historic yields and applicable only to land which has been regularly used for wheat production. If this benefit is not made available as suggested, thousands of families will be obliged to fall back on charity. Secretary Wallace, in an opening statement to the conference attend- ed by growers, millers, bakers, handl- ers and representatives of grain ex- changes, urged that the crop agree as far as possible on a plan, asserting that lack of agreement would “cause failure for this plan.” Edward A. O'Neal, president of the American Farm Bureau federation, who backed the Thatcher plan, said his organization believes that “we should have action on wheat at once.” ~ The wheat men were called together by George N. Peek, chief administrator George N. Peek, chief administrator of the new farm law, to create a price-improving, production-reducing Program for their crop. Growers, millers, bakers, handlers and others interested in wheat were Tepresented. The wheat meeting is the first of @ series on each of the seven basic commodities listed in the adjustment act—cotton, corn, hogs, tobacco, rice and dairy products. Naval Parity Given As Aim of Japanese aeteed Tokyo, May 26.—(7)—A spokesman for the foreign office said Friday that Japan retains the right again to bring up the ratio question at the 1935 naval conference and that she will demand perity with Great Britain and the United States “at least on paper.” The statement was made in ex- Plaining that the speech of the Jap- anese delegate before the disarma- ment conference Thursday, seeking consideration of naval proposals by Japan, was intended to prevent carry- ing the London and Washington naval treaties beyond 1936, The spokesman added, however, that .|4f parity in princinple is granted Japan a supplementary “gentlemen's greement” might be reached covering lesser tonnages to Japan. FIRES RAGE IN JAPAN Tokyo, May 26.—(?)—Anxiety was {expressed Friday concerning the fate of 400 persons isolated by forest fires which were destroying wide areas of valuable timber lands west of Toyo- ihara in Japanese Saghalin, NEW YORK, STIRRED BY MURDERS, BEGINS "DRIVE ON RAGKETS Control of Rich Grafts Is Believ- ed Responsible For Recent Slayings New York, May 26.—()—Racket bosses grown so bold that they send their killers forth to do battle under Broadway's bright lights stirred New York to a new drive on gangs Friday. “Stiffened spines,” was Mayor John P. O'Brien’s prescription. Calling in the police commissioner and the five district attorneys in the city, he de- manded more backbone in enforcing the law. “Racketeering in all its devious ways must be driven out,” he said, “and racketeers efther expelled or sent to Jail. Even as he spoke, racketmen were riding another foe to death. Unlike Wednesday night’s battle on Broad- way, when two women and one man fell before “bullets big enough to kill an elephant,” the latest killing oc- curred in the byways of Brooklyn. John Friscia, linked by police with the rich slot-machine racket, was done to death in an automobile and flung into the street. When passers- by found his bullet-torn body, one hand still’ ‘clutched ‘an arm-strap ripped from.the.tonneau-of an auto- mobile. He was dbdcrfbed asa pal of George Kennedy, shot to death Tuesday night with Kitty O’Brien, a showgirl, in a Long Island apattment. Strife in the slot-machine racket was blamed for this shooting, too, and detectives sur- mised Friscia died because he knew who committed the murders. Kitty O'Brien was one of three wo- men who have fallen victims to gang fights in three days. The other two were wounded Wednesday night when two carloads of hoodlums battled each other in a racing skirmish down Broadway. Stray bullets hit them as they walked along the sidewalk. Purchaser of Bank Stock Wins in Suit New York, May 26.—(7)—Supreme Court Justice Bernard L. Shientag ruled Friday that Joseph W. Harri- man and the Harriman National Bank perpetrated a fraud upon depositors when it sold them stock at $1,500 a share. In accordance with the ruling he awarded full judgment in the suit— the first of a number of the same kind —of Mrs, Margaret Singleton. Mrs. Singleton sued for the difference be- tween the amount she paid for two shares of the bank stock and what she alleged to be its true value, $200 a share. The bank has been closed since the President's March holiday and Harriman, its chairman, is under in- dictment for alleged false entries in the books of the institutign. TORNADO HITS MISSOURI West Plains, Mo, May 26.—(P)— ‘Volunteers Friday tramped the Ozark hill country near Pomona, Mo., 10 miles from West Plains, seeking to determine the definite toll of a tor- nado which Thursday night tore through the area. Fort Lincoln Gets More C. C. C. Youths With Fort Lincoln's capacity for civilian conservation corps men increased to 1,000 men, recruiting of 334 more North Dakota youths for President Roosevelt's refores- tation army was begun Thursday and will continue through Satur- day. With 666 men already at the U. S. army post here when re- cruiting was resumed, by Satur- day night there will be 1,000 men in the civilian conservation corps army at the fort, according to Captain George R. Connor, post adjutant. The men are being quartered both in barracks and under can- vas and outfitted in army over- alls. They are processed in the same manner as was the first group to be sent to Fort Lincoln by the state emergency relief committee here. ‘They undergo physical exam- inations, vaccination, innoculation and preliminary training. Information that some North Dakota men will be sent to Cali- fornia already has been received but no information as to when they will leave here has been re- ceived. The emergency relief committee is awaiting orders from the de- partment of labor while’ post offi- cials await orders. from seventh corps area headquarters at Omaha. \" | Another Conference Planned Saturday By Contractors, Laborers, Officials CHICAGO MAN TO ATTEND Laborers Go to Project Friday Under Misunderstanding | | | But Leave Peaceably | | With the truce between striking common laborers and the contractors of the North Dakota state capitol building project extended until Sat- urday night, all parties in the dispute were marking time Friday pending another conference to be held Satur- day afternoon. The truce taboos any construction work as well as picketing by the strik- ers. Extension of the truce period, which began at 5 p. m., Wednesday after rioting earlier in the day had resulted in injury of two skilled laborers and arrest of 11 common laborers, indi- cates that building operations will not, be resumed until Monday morning at the earliest, even if differences are ironed out at the Saturday confer- jence. | Through a misunderstanding Friday morning, according to Deputy Sheriff Fred E. Anstrom, more than 100 lab- orers went to Capitol Hill, under the impression the dispute had been set- tled, to resume work. Officials of the Lundoff-Bicknell company, contrac- tors, fearing trouble, asked Anstrom and his force for aid, but the labor- ers dispersed voluntarily when they ‘learned of their mistake, the deputy ) sheriff said. Extension of the truce was decided upon late Thursday at a conference of the contractors, striking common laborers, skilled laborers, state offi- cials and representatives of the North Dakota Federation of Labor. Chicagoan Will Attend C. M. Norris, vice president of the Lundoff-Bicknell company, who is in charge of the contracting firm’s main office at Chicago, is expected to at- tend Saturday's conference. State Senator S, S. McDonald of Burleigh county heads the labor committee. Parties to the strike busied themselves Friday in digging up facts for pre- sentation at the next session. A committee of the Bismarck Cen- tral Trades and Labor Assembly called on Governor William Langer and the state capitol building com- mission Thursday, but no announce- ments were made following the con- ference. It became known late Thursday that Governor William Langer, in a letter sent to officials of the Lun- doff-Bicknell company early this week, demanded that the contractors proceed with construction work and notified the firm that if this was not done the state would take other steps to complete the building. This revelation followed reports that common laborers had claimed the support of thé governor “to the fin- ish,” which subsequently were denied by leaders of the strikers. Langer's letter to the contractors [Was sent under date of May 22, last | Monday, and it was on Wednesday jmorning that the Lundoff-Bicknell {company endeavored to resume con- struction operations. Rioting devel- oped when skilled laborers tried to break through the common laborers’ Picket lines around the project. Nearly Two Weeks With no work probable before Mon- day at the earliest, the strike now has extended to within.one working day of two weeks. Common laborers walked off the job May 16, demand- ing “50 cents an hour and better working conditions.” From that time until the truce began Wednesday aft- ernoon, the common laborers, mem- bers of the International Hodcarriers, {Builders and Common Laborers Union, maintained strong picket lines about the project during day- time and observation crews at the site during the night. Skilled laborers, who have pressed resolutions declaring themselves will- ing to resume work immediately un- der existing contracts, have been prevented by common labor pickets from resuming operations. Ten of the common laborers arrest- ed last Wednesday will have hearings ‘before Edward 8. Allen, police magis- trate, at 8:30 a. m. Monday on charges of assault and battery. ey apper ed before the magistrate Friday morn- ing but their cases were constinued in view of the truce extension. They continue at freedom under $500 bonds each, The 11th man arrested was senten- ced Wednesday for assault and bat- tery after he pleaded guilty to striking Deputy Sheriff A. H. Helgeson. Mrs. Jones Speaks ‘At Virginia Meeting Richmond, Va., May 26.—(?)—Mrs. Grace M. Poole, president of the gen- the closing sessions of the federation council meeting Thursday described herself as a pacifist who believes in protection. The belief that women should mo- bilize as club units to lessen the de- moralization growing out of unem- ployment and hazards of illness and accidents in their communities was expressed by Mrs. Albert E. Jones, |Lisbon, N. D., community service | chairman, eral federation of women’s clubs, in| | —__________4 | Soldier-Writer Dies | a> MAJ. SAMUEL H. M. BYERS Los Angeles, May 26.—(?)—Funeral services were held Friday for Major Samuel H. M. Byers, author of the war song, “Sherman’s march to the sea,” and the last member of General Sherman's staff. He died here late Wednesday of pneumonia at the age of 94. A life that spanned the growth of the United States through the de- velopment of territories into states, the Mexican war, the gold rush, the Civil war, the coming of the railroad and the rise of the nation to world leadership was the lot of Major Byers, soldier, diplomat and author. He fought in the Civil war and then, when the inseparability of the Union was assured, turned to foreign lands to serve in the consular corps. Out of his varying experience he evolved much poetry and prose. CONGRESS BUCKS AT HIGH INCOME TAXES TO FINANCE BONDS Revelations of Morgan Inquiry Bring Public Pressure to Bear on Solons Washington, May 26.—()—Congres- sional revolt against imposing higher income taxes when some of the coun- try’s wealthier men have been paying none, imperiled Friday the Roosevelt public works program and spurred hasty plugging of tax law holes. The revelation of the Morgan in- quiry, especially that the partners of the celebrated banking firm paid no income tax during the two hardest years of the depression, poured a stream of protests from back home upon congress. The pressure reached its highest tensity in the house which had up for Passage, before nightfall, the public works-industrial control bill carrying @ new and highly onerous schedule of income taxes. The tax protest was mingled with a block of opposition to suspending anti-trust laws—necessary to the industrial program for com- binations to boost prices, cut produc- tion and raise wages—promising the measure the stiffest opposition yet faced by a Roosevelt bill. ‘The party leaders had to work their hardest but were confident of victory after hastily deciding to amend the bill to prevent holders of securities, such as the Morgan partners, from carrying over part of a year's losses to cancel the income tax they would otherwise pay the next year. That has been the system so far. Until last year, in fact, they could carry over such losses for two years. Speeds Up Glass Bill ‘The reaction already had hastened senate passage of the Glass Bank Re- form bill, a measure which will strip J. P. Morgan and company of much of its power by the tight limits it, Puts on private banking houses. In both houses too had burst out, speeches demanding the resignations of Secretary Woodin of the treasury, of Norman H. Davis, the ambassador at large managing the European end of Roosevelt foreign policy, and of, Dean Acheson, new under secretary of the treasury. The names of Woodin and Davis were among the many on the Morgan favored lists of men sold stock below the public price, and Acheson's name has also figured in the inquiry be- cause of his previous business affilia- tions. Davis was a borrower from Morgan. The administration appeared re- solved to ride out this tide, determin- ed to keep its valued officials, and it stood pat on the new high income taxes to finance the $3,300,000,000 pub- lic works bond issue. | Monotony of Job New York, May 26.—(#)—Twen- ty-six years of murders, theatre fires, drives to cleanup burlesque, gambling raids and whatnot have left Police Captain Amander O. Hayes cold. Resigning from com- mand of the white lights district, he said he was bored. “Nothing much ever happened to me,” he sighed Irks Police Head 4 Weather Report rae) cloudy tonight; Saturda: settled; not much change in un- ID. PRICE FIVE CENTS y PRESIDENT SEEKING REPEAL OF STATUTE LEGALIZING SPECIE House Banking Chairman Says Proposal Is to Repeal Gold Standard By Law SUBSTITUTES LEGAL MONEY Adoption of Resolution Would Take Place of Power Granted Executive Washington, May 26.—()—Pres!. dent Roosevelt has decided that the United States should go off the gold standard by statute. He requested Chairman Steagall of ‘{the house banking committee Friday to introduce a resolution to take the egg States off the standard by jaw. The Alabama Democrat conferred with the prestdent at the white house. Later he called newspapérmen to his office and read a copy of the reso- lution which he said “declares the United States is off the gold standard by statute. “It repeals the ‘gold standard act,’”’ Steagall said, adding that under the resolution, no bonds, no obligations of the federal government and no ob- ligations of any form would have to be paid in gold or gold currency upon the enactment of the measure. He said it would be possible for foreign debtors to pay the United States their war debts in any legal money. “This bill frees the United States from the obstacles and handicaps of the gold standard,” he declared, “It is an administration bill and a part of President Roosevelt's emer- gency relief program.” Market Reaction Is Spectacular Advance New York, May 26.—(?)—Stocks Swept intoa buoyant advance Fri- day when the market learned that President Roosevelt had proposed repeal of the gold standard act. Gains of $1 to more than $9 were general, while a few sales made even larger ad- vances, In addition, Steagall said the law would make it unnecessary for Presi~ dent Roosevelt to devaluate the gold dollar under the inflation provisions’ jof the farm-relief act. Steagall termed the measure one of the greatest steps toward stabilizing money in the United States. All legal money under this act, he asserted, would meet all obligations Payable in gold. Chairman Fletcher of the senate banking committee will introduce an identical resolution in the senate. Early hearings will be held and Steagall expects action in both con- gressional branches next week. The decision by the president to seek the gold legislation came sud- denly. The first inkling was Friday morn- ing when he talked with Steagall. They conferred but briefly. Later the president consulted with his economic delegation and then with Secretary Woodin. It was regarded in Washington as another move to give the president an absolutely free hand in his econ- omic negotiations with the other world powers. The United States is already off the gold standard but by repeal of the gold act Roosevelt will be free to negotiate any standard he sees fit. BUSINESS GAINING CONSISTENTLY SAYS COMMERCIAL AGENCY Dun and Bradstreet Reports Improvement Last Week Best in Three Years New York, May 26.—(?)—Trade and business this week, said the Dun and Bradstreet review Friday, have shown more consistent improvement than in any week in the last three years. “The rise in general business,” the agency stated, “has now been lifted to @ level sufficiently high to reveal its stability, which appears to be forti- fied adequately to withstand the usual Seasonal recessions of the summer months. “Reports of steadily increasing em- ployment continue to be received from centers devoted to the production of steel and Allied products, automobiles, textiles, rubber goods, shoes and leather, and lumber, “The course of the leading indices is indicative of the quicker tempo of industrial activity, which has riow be- come too accentuated to be attributed merely to @ seasonat rz>. “With the large department stores and specialty shops the May turnover gives assurance of surpassing the vol- ume of the comparable preceding year's period for the first time in two years.” | ALLEN TO LEAD BLUES Kansas City, May 26.—(P)—Nick | Allen, former St. Paul manager, Fri- |day was named manager of the Kan- sas City Blues of the American As- sociation, succeeding Tris Speaker, whe, is retained as secretary of the club.