The Bismarck Tribune Newspaper, June 27, 1933, Page 1

|. "North Dakota’s Oldest Newspaper THE BISMARCK TRIBUNE Weather Report Fair to partly cloudy tonight and ‘Wednesday; not much change in temperature. ESTABLISHED 1873 BISMARCK, NORTH DAKOTA, TUESDAY, JUNE 27, 1933 PRICE FIVE CENTS | Wheat Crosses Dollar Line |.State Board > f- EXTORTION BRRORT DEALT SEVERE BLOW | | BY UNANIMOUS VOTE * Employes of Institutions Noti- fled Jobs Not At Stake If They Refuse THOMPSON, HUSBY ACTIVE Resolution By Latter to ‘Fire’ Sanatorium Secretary Is Rejected . Efforts to extort five per cent of the salaries of state institutional +employes for support of a political newspaper were dealt a severe blow by the state board of administration ‘Monday. ' . _ This board, members of which had heretofore taken the attitude that solicitation of institutional employes was none of its affair, unanimously ‘went on record as advising employes of institutions under its control that they will not be discharged from their jobs for failure to “subscribe” five per cent of their salaries to the newspaper enterprise. It also voted to reappoint Dr. Charles MacLachlan, superintendent of the state sanatorium at Dunseith who recently became a leading figure in the fight against the five-per- i cent “squeeze.” Dr. MacLachlan re- “instated eight employes who had been discharged by Secretary L. F. Wetsch, : an appointee of Governor William Langer, because they had refused to make the five-per-cent subscription. The effect of the board’s vote is to protect institutional employes from further political solicitation of a kind unprecedented in North Dakota. By inference, it relieves employes who already have pledged five per cent of their salaries from paying on the subscriptions if the contributions * were made under duress, express or implied. x The motion to take a definite stand against the solicitation was offered by Arthur E. Thompson, superinten- dent of public instruction and ex- officio member of the board. It was Z ‘unanimously approved. Wetsch Keeps Job Previously the board had considered & proposal by John Husby, commission- er of agriculture and labor and also an ex-officio member, asking Mac- Lachlan to discharge Wetsch as sang- torium secretary. It was determined that this action would be illegal since the head of an institution is the only one empowered to remove an employe, and a formal motion, , « which had been prepared by Husby, was not offered. Husby said Wetch, was the personal appointee of the gov- ernor, although the law gives the jatter no control over institutions. The motion passed by the board regarding the five per cent assess- ment stated “That it be made pub- lic that no employe in any’ institu- tion which is under the supervision of the board of administration will jeopardize: his or her position or job, because of failure to contribute a five-per-cent assessment for a news- paper and that we instruct the secre- tary to so notify the heads of the institutions under the jurisdiction of the board.” ’ _ Nelson Sauvain, chairman of the board, in announcing the action, said several members of the board had in- dividually told heads of institutions employes were not required to pay the assessment for the newspaper. Vote on reappointing MacLachlan) *for a two-year period from July 1, was four to one, with Husby voting against reappointment. Thompson, Sauvain, Laura B. Sanderson and R. M. Rishworth approved the action. Following the dismissal of the eight sanatorium employes by Wetsch, MacLachlan said this was done with- out his consent and ordered them re- instated. Federal Dry Forces Being Reorganized Washington, June 27.—(®)—Attor- ney General Cummings is reorganiz- . ing prohibition forces with the inten- tion of spending, in the new financial year, only half the $8,000,000 congress made available. Hs plan likely will reduce by more than 1,300 about the 2,500 men and ‘women employed under the prohibi- tion bureau. Some will be furlough- ed, some discharged. Cummings hopes to have the new line up completed by the time the present fiscal year ends at midnight Friday. Already, at the recommendation of & 14. V. Dalrymple, prohibition director, Cummings has eliminated Puerto Rico, and Hawaii as separate enforcement anes and split the fifth district in The order for this change, issued late Monday, put prohibition problems “ * in Hawaii, Puerto Rico and Alaska in the hands of United States marshals in those areas. It also took Texas and Louisiana out of the fifth district and put them into a new thirteenth. ‘The number of employes,to be drop- ped includes: sota 32; North’ Dakota 6; South Dakota 11. FLIGHT AGAIN DELAYED Orbetello, ‘Italy, June 27.—(#)—The takeoff of 25 Italian seaplanes on the first leg of a flight to Chicago was again delayed by adverse weather conditions Tuesday, but orders still pig to leave on the first favorable y- Shown above are Prince Alexis) trict town hall in Paris after their Madvani and his bride, the former | Wedding. Barbara Hutton, heiress to the Wool- worth five-and-ten cent store mil- The prince, scion of a Georgian (Soviet Republic) house, received a handsome cash settlement in advance lions, as they left the sixteenth dis-|of the nuptial ceremony. Gold-Bloc Nations Make New Stabilization Moves BOYS AND GIRLS OF 4-H CLUBS HOLDING) ANNUAL ENCAMPMENT Gather At Indian School Here For Vacation Festivities and Programs More than 30 members of 4-H clubs in Burleigh county are at the Bis- marck Indian school for their annual encampment under the direction of H. O. Putnam, county agricultural agent. - In charge of the group are Mrs. Margaret Robinson of Braddock and Mrs. H. Larson of McKenzie. The encampment opened Sunday evening and will continue until Wed- nesday noon. The club members are quartered in the Indian school dor- mitory and eat at the school also. Each paid a small entrance fee to cover cost of meals. C. Vernon Freeman discussed game conservation on the first program Sunday night and Miss Lillian Cook of the state library commission, Esther Watson of McKenzie and H. A. Mc- Nutt, agricultural agent of the Soo Line, were on the Monday morning Program. The latter discussed farm machinery. Play under the direction of Miss Betty Haagensen and swimming were on the program Monday afternoon while in the evening Clell Gannon discussed natural history. Instruction Is Offered Life-saving demonstrations were given Tuesday morning by Ernest Mc- Call, and Mrs. McNutt discussed foods. Play and swimming. were on the Tuesday afternoon while Tuesday evening the club members will make a field trip, during which they will study native grasses, under the direction of John T. Sarvis of the U. 8. Northern Great Plains experi- mental station at Mandan. Each club) represented in the encampment will present a stunt at a program to fol- low the trip. Mamie Naaden of Braddock Wed- nesday morning will discuss color com- binations and @ lesson in personal hy- giene will. complete the school. ‘Those in attendance include Clar- ence J. Johnson and Garth Scallon of ‘Wing; Wanda Parks, Norma Hill, Ruby Nieland, Verona Jensen, Evelyn Walk- er, Florence Nickel and Beth Porter of Moffit; Betty Jame Bower, Helen Tracy and Olga Naaden of Braddock; Cara L. Rise and Elsie E. Eide of Arena; Mildred Wright, May Amund- son, Elsie M. Tompt and Clarice bunn of Driscoll; Allene Holmes, Maurice Dance, Ida Giese, Dorothy Wood and Eleanor Ebeling of Menoken; Alvin Stanley and Orville Stanley of Kin- tyre; Leona M. Sundquist, Cleo John- son, Betty Johnson, Ted Hochhalter, Aldythe McCullough and Marie Falk- enstein of Wilton. i pub lite REFUSES POLICE JOB St. Paul, June 27—(?)—Melvin C. Passolt, head of the Minnesota Bu- reau of Criminal Apprehension, said ‘Tuesday he would not accept the posi- tion of chief of police of Minneapolis, offered him by Mayor-elect A. C. Bainbridge. WEST VIRGINIA AND - CALIFORNIA VOTING ON DRY LAW ISSUE Interest Centers on Mountaineer State, First in South to Enter Fight BOTH SIDES ARE ACTIVE Friends and Foes Labor to Get Citizens Out; Each Side Is Hopeful (By The Associated Press) West Virginia and California voted Tuesday on prohibition repeal but the contest .in the little mountain state overshadowed in interest the fight in the big state on the west coast. ‘West Virginia has been dry 20 years —seven years longer than the natiort It is the first state with strong southern traditions to vote on repeal. Therefore both wets and drys re- garded the vote as a “pivotal one;” Prohibition’s foes labored to the last minute to get out a strong vote; its friends conducted many prayer meet- ings. F. Scott McBride, superintendent of the Anti-Saloon League, said if West Virginia voted no; repeal would be blocked; leaders of the united repeal council predicted victory by 50,000 to 100,000; drys also predicted triumph. California voted its own prohibition law into the discard last November. Fourteen states have voted to date on repeal, all in favor of it. HOLT RECOMMENDED TOHAVE CHARGE OF Would Act Irrespective of Amer- ican Desires or What Happens to Dollar London, June 27.—(#)—The world economic conference Tuesday morn- ing was in the throes of a fresh dra- matic development precipitated by the unexpected action of gold-bloc countries in trying to force European monetary stabilization irrespective of American desires or what happens to the American dollar. Representatives of the central banks of France, Switzerland, Holland and Belgium met secretly to perfect plana, which involve forcing Great Britain to stabilize along with continental countries. From this meeting came a declara- tion by one of the conferees that gold would be defended to the last ditch. Many observers expressed opinion that this scheme is, in effect, a chal- lenge to President Roosevelt's price- raising program which the gold-bloc members maintained would force a depreciation of their currenices and would be disastrous. The bankers decided to ask the Bank of England to make a declara- tion to the effect that it would not be in Great Britain's interest to see con- tinental currencies depreciated. ~ Cool Toward Idea Later it was learned in well-inform- ed quarters that England had refused to commit herself to the scheme, view- ing the movement as one designed to split Britain and America so they would be unable to deal independent- ly on stabilization. Britain was rep- resented as being desirous of keeping her hands free for negotiations with the United States later. Finance Minister Georges Bonnet of France again declared that in the French view the economic conference cannot achieve concrete results unless it arrives at definite proposals for the reestablishment of stability in cur- Tenices. Dealing with the question of in- debtedness, which has been under consideration for several days, Bonnet said that settlement of the debts problem was necessary for bringing about equilibrium. Moreover, he continued, this could not be sought at the expense of credit itself. American sources, commenting on Tuesday’s developments, made it clear that they have no intention of start- ing a currency warfare, but at the same time could not fly in the face of '@ positive economic situation demand- ing the revaluation of the dollar, The conference, which had eagerly awaiting the arrival of Assist- ‘ant Secretary of State Raymond Mo- ley and expected Bim 0 ae. & spec- tacular appearance by ne, was robbed of that thrill by a change in his plans. Moley made a last-minute decision to remain aboard the steamship Man- hattan, on which he arrived from the Dnited States Tuesday morning at Cobh, the Irish Free State, and to proceed to Plymouth. He will not, therefore, arrive in London until nearly midnight and (Continued on Page Two) ACCUSED OF CONSPIRACY " St. Paul, June 27—()—Mrs. Fern Sankey was removed to Sioux Falls, 8. D., late Tuesday to face a fed- eral charge of conspiracy in the $60,000 ransom kidnaping of Charles Boettcher, Il, of Denver. t P. MacReady, veteran British player, ND, PUBLIC WORKS TEXTILE INDUSTRY BXAMINES CODE FOR PAIR COMPETITION Government Launches First Wide-Spread Attempt To Regulate Wages ALL SIDES REPRESENTED Manufacturers and Laborers to Present Arguments to Administrator Washington, June 27.—(#)—Frank- lin D. Roosevelt's idea of how to bring about a helpful industrial revolution was opened to public scrutiny Tues- day with hearings on the application of cotton textile makers to regulate! working hours and wages. The proposed code of fair competi- tion, submitted under the Industrial Recovery Act by more than two-thirds of the cotton textile operators, rep- resented the first widespread attempt of the government to regulate wages within private industry. It repre- sented, also, the first open agreement among manufacturers since the pass- ag. of the Sherman Anti-Trust law. Because of the supreme importance which he attached to this first hear- ing, Hugh 8. Johnson, national re- covery administrator, chose himself to preside and interpret the legisla- tion. Supporting the agreement designed to raise wages generally throughout the textile mills as the first step in @ general upward shift, were George A. Sloan, of New York, president of the cotton-textile institute; T. M. Marchant of Greenville, South Car- Olina, president of the American Cot- ton Manufacturers’ association, rep- resenting southern mills, and Robert Amory of Nashua, New Hampshire, speaking for the northern plants. Labor May File Protest Awaiting its turn, labor had spokes- men ready. There were indications opposition would be presented to the Grand Forks Man Is Favored By Democratic Chiefs At Fargo Meeting Grand Forks, N. D., June 27.—(?)}— Henry Holt, Grand Forks city com- missioner and chairman of the North Dakota public works committee, will be recommended to President Roose- velt as administrator of the North Dakota share of the public works ap- Propriation under the industrial re- covery bill. Approval of Holt’s appointment was expressed at a meeting in Fargo Fri- day of H. H. Perry, Democratic na- tional committeeman, F. W. McLean, Democratic state chairman, and other Prominent Democrats. Perry left for Washington immediately after the meeting and it is expected he will recommend Holt for the appointment to be made when President Roosevelt returns to Washington. News of the decision was kept se- cret until after Perry's departure for! Washington. Usually, the recom- mendation of the national commit- teeman and state chairman is suffi- cient for appointment if there is no opposition. : American Net Stars Advance in England Wimbledon, Eng., June 27.—(?)— Ellsworth Vines, Jr., defending his Wimbledon tennis title, Tuesday ad- vanced to the third round with a four set victory, 6-1, 4-6, 7-5, 6-1, over A. T. England, unranked British player. David Jones, former Columbia star and now at Cambridge, followed Vines and Clayton Lee Burwell into the third round with a 9-7, 6-4, 6-4 victory over H. E. Weatherall, unranked English- man. Burwell gained his third-round bracket at the expense of Hans Tim- mer, Holland Davis cup player, retired because of the heat with the set score 1-6,7-5. # W. (Bunny) Austin, one of the British favorites,,eliminated the vet- eran Frenchman, Jacques Brugnon, 6-2, 3-6, 7-5, 6-0, in another second- round feature. Lester Stoeffen, giant California youngster playing his first tournament at Wimbedon, defeated the Japanese champion, R. Nunot, in a bitter five- set struggle 9-7, 2-6, 9-7, 1-6, 6-2. In the women’s competition Mrs. Helen Wills Moody opened defense of her Wimbledon singles title wtih a smashing love set victory over Mrs. J. 6-0, 6-0, Lightning Bolt Ends Man’s Mercy Errand Lewistown, Mont:, June 27.—(P)— Struck by lightning as they rode horseback through a thunderstorm on an errand of mercy to a sick neigh- bor, Calvin C. Birdwell, 54 and his grandson, Chester Birdwell, 8, were! killed instantly. Birdwell and the boy, Coroner C. W. Wilder said, started out from their ranch Sunday night, riding double on @ saddle horse. The bodies of the man and boy and their horse were| found about midway between the two ranches. Birdwell’s body, Wilder re-| ported, was virtually stripped of cloth- ing, but in his arm were clutched five’ neighbor Yoaves of bread for his sick minimum wage scale provided in the agreement. For northern mills this scale was Placed at $11 for a 40-hour work week and in the south $10. No worker would be permitted to work more than 40 hours and productive machinery could be operated only two 40 hour shifts a week. In addition, as required by law, the agreement granted workers the right to bargain collectively and to organize in any manner they chose. Opening the discussion, Sloan said the code would make jobs. for 100,000 idle men, eliminate child labor and enhance the purchasing power of workers. He called attention to the fact that tariff protection will be needed to make it effective. Child labor, he said, will be elimin- ated because of the minimum wage scale, since employers will be able to obtain older workers for the same rate of pay. Dairymen Ask Action Representatives of the dairy indus- try, which produces about one-fourth of American farm income, Monday night voted to ask Secretary Wallace to employ his drastic licensing pow- ers to enforce dairy trade agreements. Their decision came soon after rep- resentatives of butter manufacturers and distributors had submitted a pro- posed trade agreement calling for the fixing of minimum weekly prices of butter by a dairy council of 10 mem- bers in the major markets. The vote favoring licensing was taken at the general dairy conference called by administrators of the farm act. More than 200 representatives of producers, processors and distri- butors, including officers of both co- operative and private concerns, were present. Under his licensing powers Wallace can refuse operating permits to con- cerns which fail to observe trade agreements now being drawn for every phase of the dairy industry, in- cluding butter, cheese, fluid milk, evaporated and dry milk and ice cream manufacturing. A concern operating without a license is subject to a daily fine of $1,000. ‘The group selected a committee to. represent each phase of the industry in correlating an agreement which each will present in an effort to in- crease the return to producers. John Brandt, Minneapolis, was named to the committee on manufac- ture and sale. Relative of Local. Resident Drowned F. E. Ball, Columbia, Miss., a broth- er-in-law of J. F. Fortenberry, 2000 Avenue A, was drowned Monday eve- ning while fishing in the Pearl river, according to a message received here. Funeral arrangements have not been made. Besides his widow he leayes four daughters and two sons. Operating Income of N. P. Shows Big Gain St. Paul, June 27.—(#)—Net ope- rating income of $285,444 in May was reported Tuesday by the Northern Pacific railway. This compares with a deficit of $61,299 in the same month last year. A deficit of $1,761,973 was reported for the first five months this year compared with a deficit of $1,541,924 period last in the same year. Opposes Five-Per-Cent | Prince Leads Heiress from Altar Grab Moley Abandons Spectacular Entry RAYMOND MOLEY Prof. Raymond Moley, head of President Roosevelt's so-called “brain trust” and one of the executive's clos- est advisors, Tuesday abandoned plans to fly from Cobh, Irish Free state, to London, thereby making a spectacular HERBERT BAYARD SWOPE entrance on the stage at the world economic parley.- The above picture of Moley was tak- en as he and Swope, former New York Publisher and an economic adviser, sailed from New York to attend the economic conference. Court Refuses to Direct Verdict in Gammons Case WHEAT SITUATION SERIOUSLY ALTERED BY CROP CONDITION Bad Outlook In Fields’ Lends New Optimism to Confer- ence At London London, June 27.—(?)—What one of the “big four” chief delegates called an “act of providence” has so altered the wheat situation that the con- ferees decided Tuesday to wait until crop prospects are better manifested before approving or disapproving a plan to restrict wheat acreage. Prime Minister Ramsay MacDonald, in an hour-long discussion of the problem with the leaders of the “big four” delegations, asked for and re- ceived information as to the near breakdown of the negotiations at the morning session of the conferees. The “big four” are the United States, Canada, Australia and Argentina. He called the session because of the threatened breakdown. When he received information con- cerning the rise in the price of wheat on world markets, presumably because of adverse crop reports, MacDonald professed satisfaction with the pro- gress of the negotiations. Plant 47,500 Trees On Game Preserves The planting of 47,500 trees in North Dakota was reported Tuesday by Commissioner Thorwald Swénson of the state game and fish depart- ment. The distribution of trees was as follows: Dawson game preserve, 14,300 cottonwood, 14,300 green ash, 14,400 honeysuckle, Russian olive and wild plum; Crystal Springs Lake, 500 each of cottonwood and green ash, and 500 honeysuckle, Russian olive, and wild plum; Spiritwéod park, 500 each of cottonwood and green ash, and 500 honeysuckle, Russian olive and wild plum. Affirm Decision in Sioux Election Fight Election of Irving Koths as Sioux county state’s attorney has been af- firmed by the North Dakota supreme court. An election contest was filed against Koths by Thomas McDonald, defeated for the office. Judge John C. Lowe held in Koths’ favor, and his decision was affirmed by the su- preme court. Three Electrocuted In Hay-Field Mishap Anamosa, Ia., June 27.—(?)—Three Persons were electrocuted in a hay field one mile east of here Monday when the pole of a hay stacker fell against a power line. The dead: John Gerdes, 45; Louis Walberback, 23; Leo Walberback, 13. They were hoisting the pole pre- paratory to stacking hay on the Gerdes farm when the accident oc- curred. ROOSEVELT IS FOGBOUND Lakeman Bay, Roque Island, Me., June 27.—(?)—Fogbound for the sec- ond day in succession, President Roosevelt loafed about the Amberjack II Tuesday as he awaited a visit from Norman H. Davis, America’s roving ambassador. _He was en route on a| i destrovar. Plea Is Made By Defense After Prosecution Completes Its Evidence A motion for a directed verdict of acquittal was entered by John Sul- livan, defense counsel, in the trial of John Gammons, former industrial and securities commission secretary, charged with embezzlement, after the state rested Tuesday aftérnoon. Judge Fred Jansonius denied the motion after Attorney General A. J. Gronna completed arguments resist- ing it. In moying for a directed, verdict, Sullivan said there was insufficient evidence to support the charges against Gammons; that the secretary of the commission is an officer sub- ject to instructions and directions of the industrial commission; that there is a total absence of testimony show- ing Gammons had acted contrary to instructions; that no evidence has been given to show the fund involved was a public fund; and that there was no evidence to show the money be- longed to the state. Sullivan said there was no evidence to show that the $20,000 military his- tory fund involved in the case did not belong to the Bank of North Dakota, and then cited a supreme court decis- ion holding the state and bank are separate units. Could Still Be Innocent He referred to the state's case as building up circumstantial evidence, declaring that if all this evidence were true Gammons could still be innocent, ‘At the opening session of the trial Tuesday morning 11 exhibits were of- fered and several witnesses examined. At the afternoon session, a 12th exhibit, Gammons’ signature card at the First National Bank, was enter- ed during testimony by Warren. F. E. Shepard, vice president and cashier of the First National, iden- tified four exhibits dealing with the $600 depostt by Gammons. The state then rested its case. Eleven banking instruments had been offered in evidence by the state Tuesday forenoon as testimony be- gan, The state alleges that Gammons appropriated to his own use a check for $600, cashed on Aug. 17, 1931, which represented three perc ent in- terest on the $20,000 state military history fund for one year. Gammons, as sectetary of the industrial com- mission, had charge of the military history fund. The jury of eight men and four women in the case was selected a week ago but taking of testimony was delayed until Tuesday forenoon, due to illness of Sullivan, defense counsel. Sullivan’s Neck Bandaged Sullivan appeared in court Tuesday forenoon with his neck bandaged. As- sisting him in the defense is Scott Cameron, Bismarck attorney. Seated near the defendant through- out the proceedings was Mrs. Ga! mons, with whom Gammons con- ferred often. Handling the prosecution was At- torney General A. J. Gronna, aided by Assistant Attorney General Mil- ton K. Higgins and State’s Attorney George S. Register of Burleigh coun- ty. The 11 exhibits follow: No. 1—Bank of North Dakota cash- jer’s check No. 22,856, in the sum of $600 issued Aug. 17, 1931, to the secre- tary of the industrial commission, signed by Theodore W. Sette, teller, and counter-signed by George W. Janda, director of audits. No, 2—Slip attached to affidavit ferrifig to $20,000 certificate of depos: it for military history fund. No. 3—Affidavit signed by Gammons in lieu of $20,000 military history fund certificate of deposit, No. 16,887, which was destroyed in state capitol building fire in 1930. No. 4—Bank of North Dakota in- terest debit slip, showing payment of $600 interest on $20,000 military his- (Continued on Page Seven) ' REPORTS OF DAMAGE FROM ALL SECTIONS SKYROCKET PRICES Blistering Sun, Drought and Grasshoppers Reduce Prospective Yield ALL MARKETS ADVANCING Chicago and Minneapolis Pits See Furious Trade; Shorts Are Trapped ‘With reports of crop damage floote ing in from all parts of the nation, wheat jumped more than seven cents a bushel at Chicago and Minneapolis Tuesday, crossing the dollar line. Blistering sun, drought and grass- hoppers combined to reduce the pros- pective yield of all grains throughout the nation and the market immedi- ately reflected these adverse condi- tions. At the peak the market was up 7 3-8 cents a bushel at Chicago and 7 1-8 cents at Minneapolis. The close was somewhat under these fig- ures but was strong. May wheat went well above a dol- lar to a high point of $1.06 3-8 at Chicago and closed at $1.05. Decem- ber, on the same market, closed at $1.00 3-8. Despite the increase in prices, how- ever, it was announced at Washing- ton, administrators of the farm act plan to levy a 30-cent-a-bushel tax on wheat. It was said the administrators in- tend making an announcement late Tuesday or Wednesday and hope to $1.03 AT MINNEAPOLIS Minneapolis, June 27—()—Dol- lar wheat came to Minneapolis Tuesday for the first time since August, 1930. A car of No, 1 dark northern spring from North Dakota sold on the local grain exchange trading floor for $1.01 a bushel, The wheat was shipped to Min- | neapolis by the Wheian brothers of St. Thomas, N. D., and was sold here by the Brown Grain Co., to the Cargill Elevator company, It tested 61 pounds to the bushel, 14 per cent protein. Keeping abreast of wheat and other grains in their climbs fam- ily patent flour jumped 50c a bar- rel and was quoted at $6.55 to $6.65. Later the Imperial Elevator company sold # carload of wheat from Turner, Mont., to Hallet and Carey company for $1.03, the top for the day. go ahead with their original ar- rangement of fixing the wheat levy at a minimum of 30 cents to go into effect early next month, probably July 8. They have authority to levy s pro- cessing tax on wheat used in milling flour and manufacturing other food products for human consumption equal to the difference between the “current farm price” and the “par- ity price based on pre-war farm prices.” On the basis of price relationships early in June administrators could levy a tax of 30 cents a bushel. Wheat acreage plans announced by Secre- tary Wallace were predicated in part on an expectation of a tax of this amount to finance that program. Gap Has Narrowed The rise in wheat prices has nar- rowed the gap between current and pre-war average farm prices. If this is recognized it would cut the tax rate substantially. There is no provision in the farm act, in the opinion of administrators however, which requires Wallace to use the price relationships of the last week or two weeks before the tax goes into effect. Instead he can use averages for sfx months or any other period if he desires, they be- lieve. It was learned that the announce- ment of the tax may avoid any re- ference to a specific period on which the current and pre-war “parity” prices are based. May futures went above the dollar mark for the first time since Septem- ber, 1930. Failure to get relief from the drought, along with stoploss sales for (Continued on Page Two) To Spend Huge Sum On Navy Next Year Washington, June 27.—(#)—High Officials hope to spend $400,000,000 on the navy during the fiscal year that begins Saturday. Already $238,000,000 has been set aside by President Roosevelt from public works money for new ship con- struction in a three-year program, Secretary Swanson has fixed $46,000,- 000 as the minimum for the first-year expenditure on 32 vessels. This brings the fiscal year’s assured expenditures — $270,000,000 of cash withdrwals from regular appropria- tions plus the $46,000,000—to $316,000,- But in addition the navy plans shore station construction and plant modernization ashore and afloat to cost about $84,000,000. To do this, though, it must get that amount from the public works fund in a new allo- cation, Then 1934 naval construction plans would set up like this: m $40,000,000 for ships under construc< tion. $46,000,000 for starting the 32 new ships. $84,000,000 for modernization and ‘constsuatdon ashore and afloat.