Evening Star Newspaper, March 1, 1921, Page 1

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A8 el Tow; moderate temperatu; § p.m. yesterday; lowest, today. Full report on page 16. WEATHER. Fatr tonight and probably tomor- ‘Temperature for twenty-four hours ended at 2 p.m. today: Highest, 57, at re. 38, at 7 am. Closing New York Stocks, Page 28. Che bend WITH SUNDAY MORNING EDITION ny Star. The Associated the Bse for rep: Paper and alsa Member of the Associated Presl | | credited to i or not otberwise credited In this | | All rights of publication of special dispatches herein are aiso reserved. Press Is exclusively entitled te “blication of all mews dispatches the local news publichod nereta. Yesterday’s Net Circulation, 95,573 No. 28,065. — Formation of Ministry o Undersecretaries for GEN. MARCH SLATED Secretary of the Navy and Secre and in their stead would be crea ‘WIIl Further Co-Operation. The proposed amalgamation of - the armed services is a part and parcel of Mr. Harding’s very earn- est desire to bring about a simplifi- cation of the government’s method of doing business. Mr. Harding has| been considering the matter for some time, and has had expert ad- vice from all the various angles of what_would seem at first a_very complicated proposition. The Presi- dent-elect believes that in the last analysis, however, the solution will prove very simple. 2 The_closest possible co-operation is desirable at all times between the Army and Navy. This is particula ly true in the matter of economy in time of peace. It is equally true in the matter of effective operation inst the enemy in time of war. The statement has been made to Mr. Harding that during the recent war the United States lost millions of dollars as a result of the competi- tive buying of the ‘War and Navy ents. Each department head and his staff naturally desired to make the best possible showing. Will Keep-Own Personnel. The War Department bitterly com- plained during the first months of the ‘war that the Navy Department, being better equiped for action, gobbled up ,all the available 'supplies in the open market and left the War Department { to shift for itself as bet it could. Under the Harding plan, the Army {and the naval services would keep their own personnel, their own staff departments and their own traditions, | but in all the larger matters of policy they would be under a single execu- tive head. Under this plan further- more the advocates of a ministry of air_would come into their own. At present there is an Army aviation ce, a naval aviation service, a ¢ aviation service and a postal service. Whether the postal fsecvice would be combined with the others as a part of the system of na- tions] defense remains to be worked out, but having 8o close a relationship .of the training of skilled fiyers, who wonld be invaluable in time of war, it } swsumed that eventually it would be included in the general air service. Many of the best students of aviation ;have declared no real progress in the development of that service could be made in this country except through !a combination of effort. Secretary of the Navy Daniels has (GEN. WOOD SEES Entered as second-class matter post office Washington, D. C. UNION OF WAR AND NAVY DEPARTMENTS UNDER ONE HEAD DECIDED BY HARDING f National Defense With Army, Navy and Air Service About to be Announced. TO GO AS CHIEF OF STAFF IN REORGANIZATION SCHEME Early Sweeping Out of Daniels’ Appointments Expected—New Combination Will Prevent High Costs of Com- petitive Bidding for Materials in War. BY ROBERT T. SMALL. MARION, Ohio, March 1.—One of the big policies of the Harding administration about to be announced will be the com- bining of the War and Navy Departments under one head. The plans to this end have not progressed very far as yet, but Mr. Harding stated today that John W. Weeks of Massachusetts, who is to be Secretary of War, and Edwin Denby of Michigan, who is to be Secretary of the Navy, have accepted these cabinet posts with the understanding that they will work together with the ultimate aim in view of an amalgamation of the two departments. Under the plan, as it is now being considered, both offices of tary of War would be abolished, ted a ministry or department of national defense. Under the Secretary of national defense there would be three departments, the air service being given a rank virtually equal to that of the Army and Navy. These three serv- ices would be presided over immediately by under-secretaries of national defense for war, for the Navy and for air. been a stumbling block in any sug- gested combination of the Army and Navy services. He has been jealous of the naval service and during the war was keenly delighted that the Navy made better flying progress than the Army. Mr. Harding would not wipe out friendly rivalry between the services, but desires that in the com- mon good the latest developments in either service shall be the property f both. From a sound military point of view as well as from the standpoint of economy, the President-elect believes a great stride forward would be made in the combining of the two depart- ments and the creation of the air Service as the third arm of the mew department of national defense. islative action will be required, of course, t6 Sccomplish the ends ‘t sired, and Mr. Harding, as President ‘will consult freely with the members of the Senate and House committees on naval and military affairs before attempting to work out the detalls of the amalgamation. The plan,. as will be readily seen, involves neces- sary changes in the congressional committee system also, the existing committees on naval and military af- fairs being abolished in favor of a House and Senate committee on na- tional defense. New Chief of Army Statr. Pending the amalgamation of the Army and Navy departments, the new Secretaries of these services in the Harding cabinet will set about soon after March 4 to reorganize thelr re- spective departments completely. In the War Department this will in- volve, with other things, the early appointment of a new chief of staff, the present chief, Gen. March, being generally credited with having in- fluenced Secretary Baker in much that he has done. In the Navy De: partment there probably will be an early sweeping out of virtually all of the Daniels appointments in bu- reau and staff positions, the great bulk of the Navy being represented as crying for a new deal all around. Mr. Denby, the new Secretary, as soon as he gets comfortably settied in the department, probably will review all of Mr. Daniels’ recent orders with a view to their abolishment or amend- ment, as may seem desirable. Mr. Denby is a very sound man; he will proceed with all proper caution, and his friends expect him to bring the Navy back to its old high morale, He will not stand for department: politics or favoritism, and under him every officer and man is assured of a square deal. (Copyright, 1921.) SENATORS “DIRECT” HARDING AT HOME, HOUSTON T0 ACT /Believed Being Considered to |Demand Production of Com- i Govern Philippines—Weeks | plete Correspondence Rela- Named. |9y 0o Associsted Press. } MARION, Ohio, March 1L.—Returning ito Marion for a short visit before en- jtering the White House, President- elect Harding went into conference | Soday "with Mag Gen. Leonard Wood, who is prominently under considera- tion for tment as governor general of the Philippine Islands. . Although nmo formal offer has been ‘made, it is believed by those close to !Mr. Harding that his former chief op- ponent for the presidential nomina- .tion can have the island governorship Uit he wants it, and that the meeting of the two here today went a long way toward making the selection def- jnite. A formal announcement on the subject may be made shortly. The President-elect and Mrs. Hard- ing reached their home town from Florida early this mornnig after an absence of more than five weeks. Be- Fides Gen.,Wood, there were no call- ers to be received today, but they » were kept busy finally arranging their j Dersonal affairs and making farewell visits to their neighbors. larewell by 1will leave for Washington late in the afternoon. ! ‘onfirmation of the selection ‘of John W. Weeks of Massachusetts 1o be Secretary of War was given by President-elect Harding last night as he neared Marion on his return from Florida. Mr. Harding also let it be known “that be is thinking seriously of fol- Jowing the example of President Wil- &on in delivering his messages to Con- &ress In person rather than by mes- ,wenger, as had been the custom for guany years preceding the first Wilson nistration. Pdml i e i | tive to Foreign Loans., Secretary Houston is “directed 1n a resolution adopted today by the Senate judiciary ‘committee, to pro- duce complete Treasury files of cor- respondence relating to foreign loans. Members of the committee saia the resolution was practically a “quantity subpoena” in form. The resolution was introduced by Senator Reed, democrat, Missouri, au- thor of the bill to prohibit further loans to foreign governments, and was adopted in executive session. Committeemen said it made it “man- datory” for the Secretary to appear before the committee tomorrow with the full correspondence. Referred to Secretary Colby. Secretary Houston in committee yesterday thumnr;mh':d e ferred the "correspondence to Secre. tary Colby of the State Department for determination as to what part of it could be submitted to the commit- tee without affecting the publc in. “ée“'z s enator reiterated toda; Secretary Houston ought to ba"e?ll:é for contempt.,” and declared that un- less the Secretary produced the papers as directed by the resolution he would ask the Senate to take action. Some members of the committee said the fallure of the Secretary to com- ply with the committee’s “directions" would make him liable to contempt proceedings before the bar of the Sen- ate, as the resolution had been passed under authority given the committee to call cabinet members for whatever mformstion they destred, WASHINGTON, D. €., TUESDAY, MARCH 1, 1921-THIRTY- EIGHT PAGES. L4 'WO CENTS. REMIERS REJECT GERVAN OFFERTO. ' PAY $7.500,000,000 Lloyd George Calls Prop- osition Not Worth While ' Discussing. | TEUTONS ARE DEPRESSED BY STAND OF THE ALLIES Dr. Simons at First Reparations | _Parleys Tells Why Nation Can- | not Meet Paris Stipulations. | LONDON, March 1. — Germany. | through her delegates to the confer- | ence with the allies here today, made | reparation offers of flpproxima\ely‘ thirty billion gold marks, or about $7.500,000,000. The German financial proposals, it was [earned, were made subject to two conditions: First—That the plebiscite in Upper Silesia should result in favor of Ger- many. Second—That Germany should have restored to her free commercial priv- ileges throughout the world. After Dr. Simons, the German for-| eign minister, had finished his state- ment on reparations to the conferees, Mr. Lioyd George, the British prime minister, replied in substance that un-| less the Germans had something more to offer than appeared fn Dr. Simons’ statement there was no need of cof- tinuing the conference. Mr. Lloyd George told the German foreign minister: “If the written proposals are of the same general character as the ex- planation of them it isn’t worth while for us to read them. You have a com- plete lack of comprehension of the position of the allies and of your own position. We will discuss among our- selves our reply and give it to you tomorrow at 11 o'clock.” Germans Leave Depressed. ‘When the Germans left the con- |/ ference they appeared to be greatly depressed. Premiers Lioyd George and Briand were smiling as they came from the conference chamber. The_British prime minister opened the conference by saying the allied representatives had assembled to re- ceive the German reply to the de- cision of the Paris conference. The German foreign minister was then given the floor. Dr. Simons sald the Germans had prepared two written propositions most carefully, and after profound study of Germany's Tresources and possibilities. They had béen engaged in this work up to the moment of their departure from Berlin, the Ger- man foreign minister declared, and therefore had not been able to com- municate their proposition in ad- vance. Terms Wound Up fa Lean. Dr. Simons then, in effect, said Germany would pay 50,000,000,000 marks, subject to the various dis- ounts and reductions and the sums already pald. A hasty examination by the French delegation of the writ- ten proposals of the Germans indi- oated that after the reductions Ger- many would pay about 30,000,000,000 marks. (Advices to official circles in Washington today said that Ger- many had submitted to the allied reparations commigsion a list of reparation payments made up to Jan- uary 21, last, amounting to 21,000,- 000,000 gold marks, or approximately $5.250,000,000.) Premier Briand said that the pro- posals were S0 drawn that they amounted to an offer that if the allies weuld advance Germany money on favorable terms, then Germany would pay them. The Germans apparently figure that if the capital sum of about 30,008,000,000 marks were taken now, it would amount to about 220,000.- 000,000 marks in forty-two years at 5 per cent. The difficulty, however, it is pointed out in allied quarters, is for Germany to obtain these 30.000,- 000.000 marks without the allies doing it largely for them, which the allies regard as wholly unacceptable. Briand Sketches Himuself. ‘While Dr. Simons was making his statement, Premier Briand was sketching on a pad of paper before him. He drew a caricature of him- self, with long hair and baggy trous- ers. and wrote under it: “The little Breton listening with curiosity to what the boche have to P ay. M. Briand passed the drawing to Mr. Lloyd George, who smiled and said: “From the way things are going, In another ten minutes we shall have to Among the most important points in the proposals advanced by Dr. Simons were his insistence that the total capital sum of Germanv's obligations be definitely fixed, and his representa- tion that Germany was expected to reach her maximum capaeity to pay in 1926, when the Germans propose another arrangement shall be entered into for payment of the remainder within thirty years. Dr. Simons said the difficulties ‘which rendered the acceptance of the Paris reparations proposals impos- sible were due to the fundamental controversy Involving. on the one side, the ralsing of Germany’s pro- ductive efforts to a maximum in or- der to enable her to meet her. obli- gations, and. on the other, the pre- vention of German competition be- coming a menace to other nations. Expect to Use Exports. The Paris proposals, continued the German spokesman, contemplated the payment of annuities of 6,000,000,000 marks, gold, and all were agreed that the only manner in which this amount could be pald was by a sur- plus of exports. The German experts had declared, however, that in order to meet these annuities the German exports would have to be four times as great as the annuities, and the forcing up of the German export trade to this figur>, he said, would constitute a serious menace to the rest of the world. The foreign minister’s reference to the proposed export tax of 123 per cent was that It must either be paid by the consumer, if the price could be forced up, or by German industry, which would thereby be weakened in its power to compete. The result would be that the exports would de- cline. The German government, declared Dr. Simons, believed the Paris pro- posals were based on a too hasty con- Ception of the condition of German industry. Germany was now able to export, he pointed out, because of the favorable exchange rate and the low cost of production, and these condi- tions probably would not be lasting. They really represented an unhealthy ~(Continued on Page 2, Column 5.) LAYIN' ALL It Il W Vin i I = SID50 AT TOPIGKPRESDENT Senate Investigators Put G. 0. P. Bill a¥$8,100,739, Democratic at $2,237,770. Campaign costs of electing a Presi- dent of the United Stafes in 1920 were $10,338,509, as estimated by a special Senate committee created to investi- gate them, which today filed its report with Congress. Of this amount re- publican candidates and campaign organizations spent $8,100,739, while democratic expenditures were $2,237,- 770. The committee compilation took into account the expenditures made by or, in behalf of all candidates for the republican and democratic presi- dential nominations, and of national, state, congressional and senatorial committees of both these parties, neglecting amounts spent by.candi dates and organizations of minor po- litical parties. Report of Committees Senators Kenyon, Iowa; Edge, New Jersey, and Spencer, Missouri, repub- licans, and Pomerene, Ohio, and Reed, Missouri, democrats, signed the report, which was unanimous. While stating thelr conclusion that “the’expenditure of these vast sums is a present and growing menace to the nation,” no recommendations for congressional action were made, except that the suggestion was made that election committees of the next Congress should consider the question. Constitutional difficulties may fn- tervene to prevent legislation on the subject, the report said, but Congress should “take proper steps to submit" a_constitutional amendment dealing with the difficulty “if it is found nec- essary.” While the largest sums of campaign expenditures found were those of the national organizations, which the committee said was $5,319,729 for the republican party and $1,318,274 for the democrats, candidates who sought presidential nominations from the conventions accounted for a total of $2,980,033. Expenditures for Nominations. Maj. Gen. Leonard Wood's effort to secure the republican nomination jn- volved expenditure of $1,773.303, the committee found, while for Frank O. Lowden the total was $414,000; for Senator Johnson of California, $194,- 000; for Herbert Hoover, $173,000, and for President-elect Harding, $115,000. Expenditures noted in behalf of other republican candidates were $77,000 for Senator Poindexter, Washington; $68,- 000 for Vice President-elect Coolidge, and $40,000 for Dr. Nicholas Murray Butler of New York. Attorney General Palmer led demo- cratic candidates in expenditures, the amount being fixed at $59,000, while Gov. Cox, who secured the nomination, spent $22,000. James W. Gerard, for- mer ambassador to Germany, was list- ed at $14,000, and Senator Owen, Okla- homa, at $8,595. Two candidates in behalf of whom no money was found to have been spent were William G. McAdoo, democrat, and Senator France, | republican, Maryland. | Many difficulties were found in get- ting complete tabulations and avoiding | @uplications, the report said, but the amounts were given as showing the situation fairly and accurately. Money for Congressional Contests. Something over $700,000 of the total went into senatorfal and congressional contests, the committee found, of which only $31,000 was spent by demo- cratic national organizations created for the purpose. The republican con- gressional committee spent $375,969, | while the G. O. P. senatorial organiza- tion spent $326,980. Through state committees, the report sald, the republicans spent an aggre- gate of $2,078,060, against $888,323 for their democratic competitors. The larger republican state expenditures were. in New York, $479,000; Indiana, $215,000; Pennsylvania, $139,000; Massachusetts, $133,000, and ‘ashington, $116,000. Democratic state expenditures were greatest in Indiana, $74,692; New York, $63,000; Kentucky, $62,930; Ohio, $58,- 815; Marylanqg $57.889, and Pennsyl- vania, $58,512. Several state commit- tees, representing both parties, failed to file reports, the committee said, and amounts turned into states by national committees were not included. i i AN e CLEARS BARUCH AND RYAN President Declares Neither Had Anything to Do With Price Fixing. President Wilson came today to the defense of B. M. Baruch and John D. Ryan, who have been charged by Rep- resentative Mason, republican, II- linois, with profiteering in copper while serving the government during the war. 5 In a letter to Representative Gar- ret, democrat, tennessee, the Presi- dent said the “charges and intima- tions” had been satisfactorily an- swered, but that he thought a state- ment of the facts from him as to the fixing of the price of copper during the war might clarify the situation. The President denied flatly that either Mr. Baruch or Mr. Ryan had anything to do with the price fixing negotiations for which he said Judge Robert S. Lovett, priorities commis- sioner for the government during the war, was responsible in the initial stages. POST OF CURATOR - FOR JORN LODGE John Lodge, curator of far eastern art in the Boston Museum of Art and son of Senator Henry Cabot Lodge of Massachusetts, has been offered the curatorship of the Freer Art Gallery here It was understood today that Mr Lodge, who is helping with the in- stallation of the magnificent Freer collections at the gallery at 12th and B streets southwest, as yet has not accepted the offer, being perfectly sat- isfled with his present sphere of ac- tivity. Mr. Lodge was unable to say today when the new gallery, which is prac- tically completed, will be opened to the public. While the whole collec- tion is at the Smithsonian Institu- tion, the various items have never been arranged, and an immense amount of work yet remains to be done on them. Must Be Properly Arranged. To be of service to the whole pub- lic, both general and art lovers, it is declared, the collection must be ar- ranged properly, and this is “not like putting things into a showecase,” according to one official. Only artists can have a proper con- ception of the tremendous amount of work involved in getting the Freer collection into shape and properly installed in the fine new gallery, it is said. The collection has been stored for so long that the time of Mr. Lodge and various assistant has been fully occu- pied in getting the paintings and other articles in shape for proper installa- tion. Prof. E. S. Morse of Salem, Mass., probably the country’s highest authority of Japanese art, has been as- sisting in the supervision of the ar. rangement and cataloging of the Japa- nese portion of the gallery. Others Who Assist. Prof. Morse has been assisted by Miss Katherine L. Rhoades and Miss Grace D. Guest, who have worked on the collection until late in the night, on various occasions. As to when the gallery will be opened officials were untable to state today. - DENBY EN ROUTE HERE. DETROIT. Mich.,, March 1.—Edwin Denby, named Secretary of the Navy in President-elect Harding's cabinet, left here for Washington to prepare to take up his duties. In his first public statement of policy Mr. Denby, at a farewell banquet last night, declared he would urge that there be no material change in the naval building program, and that the first line of defense be kept at the strength warranted by the importance of American interests. He had no idea that a war impended, he said, but considered a potent fieet an insurance against such a happening. PRESIDENT PICKS RAINEY. The President today appdinted Rep- resentative Henry T. Rainey of Illincis a member of the United States Tariff Commission. His nom- ination was sent to the Senate. INAUGURAL EDITIONS > : THE EVENING STAR March 3, Mailed, Postage Prepaid, 10 Cents (Anywhere in the United States or Canada) Send list of names and addresses, with necessary money, to The Star office, 11th street and Pennsylvania avenue. 4 and 5 [ MOB TRIES TOKILL PANAMA PRESIDENT Porras Saved by American Troops From War-Crazed Crowds. PRESIDENT PORRAS. By the Assoclated Press. PANAMA, March 1.—One person is dead and four others are suffering from wounds received when the presi- dential guard fired upon a mob which broke into the executive mansion here yesterday. One of the fnjured was Domingo Turner, who was the chief organizer of the demonstration here when Gen. Pershing visited the Canal Zone last year. American troops arrived at the home of President Porras just in time to save the President’s life. Senor Por- ras was conferring with William Jennings Price, United States minis- ter to Panama, and Col Jay J. Mor- row, acting governor of the Canal Zone, when a crowd which had gathered in front of the palace be- came threatening. A request was at once sent to the commandant of the United States troops in the Canal Zone, asking him to send soldiers to the palace. Before they had arrived, {however, a portion of the crowd had broken in one of the doors and had been fired upon. A demonstration called for yesterday aftern declared off. o o Quict had been completely restored last night. Saloons, both in P and Colon, had been closed, while United States troops guarded presidential palace during i presid £ the night, in spite of the president's reques thelr withdrawal. R The attack upon the palace was in- stigated by men who had become maddened over a published interview in which President Porras was quoted as having declared himself favorable | to a diplomatic settlement with Cq 3 osta, Rica after Panama had recovered ter- ritory Costa Rica forces seized last week. It is a: S sserted the mob which sassinate Senor Porras. Bills for Army add Loans. Reports of all governmental activ- ities since Costa Rican forces occu- pied the town of Coto, on the Pacific end of the houndary between that country and Panama, were laid before the national assembly by President | Porras today in extraordinary session. Bills for organizing an army and for raising of an internal loan to meet military expenses were submitted. The Panaman government does not intend to proceed further unless ag- gression by Costa Rica should compel warlike measures, Dr. Elusebio Mo- Tales, secretary of the treasury, stated last night. He declared the present situation fully justified Panama’s attitude, and asserted Panama had recovered the territory invaded by the Costa Ricans by using police measures and without a declaration of war. With her na- tional rights and her territorial integ- rity preserved, he said, Panama would await further action by Costa Rica. Favorable Reports From Coto. Reports from Coto continue to be favorable. Small forces under Gen. Manuel Quintero have recaptured the town of Coto, together with the Costa Rican ‘troops there and the armed launch Sultana, with its crew of fif} five men. The Panama troops suffe but two wounded, it is reported. An- other body of Costa Ricans equippad with a machine gun is said to have lost touch with its headquarters and to be nearing a trap laid by Gen. Quintero. > the | nto the palace intended to as- | |DOCTORS LOSE HGPE | FOR EX-SPEAKER CLARK | | Democratic Leader Is in Comatose | State Today and Apparently | Losing Ground. | Hope for the recovery of Repre tive Champ Clark virtually was |doned today by his ph ns. The democratic House leader and former | Speaker. who is ill with p ¢ and complication of other re {mained in a comato: { the morning and ap; ing ground | Early last evening Mr. Clark suf- |fered a sinking spell. and his physi- |cian, Dr. Jesse Shoum said last night that' his condition was very unfavor- |able. He had a bad night. with Mrs. {Clark and his son and daughter in |constant s bedside. IMr. Clark rs d attendance at h s seventy-one of |age and just rounding out twenty-six |years in the House. His colleagues in the House {in prayer today for the spe {covery of the former S {were led by the Rev. He {den. chaplain _emeritus, w served as chaplain practically the tire time that Mr. Clark has been a member of the House. ENPLOYES' BONUS AGAIN UNCERTAIN The final status of the $240 bonus for employes of the federal govern- ment and of the District of Columbia again was gade uncertain today when the Senate refused to accede to the House amendment to the bonus pro- vision and sent the matter back to conference. Chairman Warren of the Senate ap- | propriations committee at first moved to concur in the House amendment on { the bonus provision. ; | Senator Harrison of Mississippi | brought out that the House amend- ! ment took the bonus away from the employes of navy yards and arsenals, ito time by wage boards,sand from the woman’s bureau. He said that the Senate had adopted these provisions by a large yote and that he thought {the matter should go back to confer- ence. He pinted out that if Senator Warren's original motion to concur in the House amendment was allowed to stand there would be a long de- bate. Senator Warren deplored the delay, and said that already it appeared that the sundry civil appropriation bill would fail because of a deadlock be- tween the two houses. He finally agreed to change his motion, and the | matter of the bonus was sent back to conference, the Senate further insist- ing upon its stand. There was no rec- ord vote on the action. All the other matters in dispute on the legislative, executive and judicial appropriation bill were agreed to by the Senate, accepting the House point of view. CODLIDGES SHoP AND MAKE CALLS Vice Preident-elect and Mrs. Cool- idge, who arrived last night from Boston. breakfasted shortly after 9 o'clock at the New Willard Hotel, their official stay in Washington, and left immediately after breakfast on a shopping and calling tour. In democratic fashion they passed through the lobby of the hotel: posed on the steps of the Pennsylvania ave- nue entrance for a battery of photo- graphers and “movie” men and then parted, Mr. Coolidge hailing a taxi, while Mrs. Coolidge proceeded on foot in ‘the direction of the F street shop- ping district. She was accompanied by H. F. Long, who, with Mr. and Mrs. F. W. Stearns. accompanied the Vice President-elect and Mrs. Cool- idge on the trip from Boston. Mrs. Coolidge in Blue. Mrs. Coolidge wore a blue suit and a hat trimmed with ostrich plumes to match. She caught the humor of the situation as the camera men maneuvered for points of advantage and good-naturedly acceded to their requests to descend the steps a second time. Mr. Coolidge recognized friends in the crowd, which gathered.quickly, and was kept busy acknowledging greetings while the pictures were being made. After he had left, Mrs. Coolidge was again a target for the photographers, but she did not appear to mind their insistence for pictures. She chatted for a few moments with newspapermen and said that she was looking forward eagerly to the ar- rival of her two boys who will be down Thursday. They are coming with their Grandfather Coolidge. Cordially Greeted at Station. Arriving at Union station at 9:30 last night, Mr. and Mrs. Coolidge {were met by the Vice President and {Mrs. Marshall and Senator Lodge of Massachusetts. After facing photog- iraphers at the station they were jdriven to the Willard, where they were again halted, at the F street en- trance, to pose for a flashlight. They will have the suite that has been oc- cupied by the Vice President and Mrs. Marshall. “HOME-RUN” BAKER TO SIGN WITH NEW YORK EASTON. Md., March 1.—J. Franklin Baker, former “home-run king,” an- nounced today that he will sign with the New York Americans and will go south for spring/training. Today’s News . in Paragraphs General police regulation of movies in D. C. without censorship is proposed. Page 3| U. S. airplanes and warships to make efficiency test on obsolete German and | American war craft June 1 to July | 15. Page Friendship Clubs’ Council, representi D. C. high school girls, adopts reastes tions declaring for dress reforms. Page 4 See lax gun laws cause for murders Page 5 Citizens discuss probability- of Senate’s failure to confirm appointees for D, C. Commissionership. Page 13 Secretary of Labor tells union leaders of welfare workers in drive on labor bu- reaus. Page 17 Anti-profiteering act held umconstitu- tional by Supreme Court. Page 17 Midcity citizens favor new law govern- ing firearms in D. C. Page 17 Retiring cabinet officers to give up| scores of positions little known to public. Bage 1 Ambassador Davis given unstinted whose wages are adjusted from time | where they expect to reside during | 3 | Commissioners. CAPITAL TRACTION - OFFICIAL OUTLINES - BASISFORMERGER Hamilton Says Plan Shoult { Take in Holdings, Both In and Out of District. WOULD ALSO INCLUDE POTOMAC POWER PLANT | ! Force—Favors Service- at-Cost. ously exp easserting its pr ssed |attitude as favorable to a merger of | the street car interests of the Distriet, the Capital Traction Company today ned the basis on which it believes olidation should be effected. | The company’s position is set forth |In a letter from George E. Haseilton, Enrn\-idonl. to Repr. ntatrve rreaerick . Zihlman of Maryland, member of ‘the District »mmittee, in reply to a f8er from Mr. Zihiman request- {ing specific information In his inquiry addressed to the trac- tlon official Mr. Zihlman had stated {that because the Capital Traction {Company had not found it necessary {to ask for an in ed rate of fare and because of conditions on the lines {of the competing company—the Wash- ington Railway and Eleetric Company— |an impression appa Iy had de- {veloped that the Cabital Traction | Company was opposed to a merger. | Mr. Zihiman asked to be advised as to whether, in the event a merger was favored by the Cap'tal Traction Com- pany. it was Mr. 5 Haumilton's opinion that it should include the entire prop- erties of both companies, including the ]| lines extending beyond the District, and also the Potomac Llectric Power Company. Also. information re- i !1 ; | quested as to whether- the stockholders and officials would favor a service-at- ‘ cost plan of operation. Service at Cost Favored. l _In his answer to these specific ques- | tions, Mr. Hamilton states: | That any pian for a_merger should include all holdings of both traction { ccmpanies and the Potomac Eiectric Power Company, both within and with- | out the District. | That the company favors a service- {at—cost plan, in the management of { which the public would have a repre- | sentative. That the basis of merger should be | the relative earning or exchange value j of the companies. { The company, according to Mr. Ham- | ilton, does not favor a merger by | force, either directly or indirectly. He !denies that Congress has the right, i though it may have the power, by ex- ! cessive Qnuon and other to destroy the properties. 1f gress would remove the present legal pro- | hibition against a merger, it is Mr. | Hamilton’s belief the traction inter- ests could be brought together | through their voluntary action. His {letter in full follows: | Merger by Agreement Urged. | “Yours of February 23, subject | ‘merger of street car companies in | the District of Columbia,’ received. “No plan of merger has ever been submitted to the stockholders of the Capital Traction Company, and the company, through its stockholders, has never taken a position on the ques- tion. and has never been called upon to do so, and, as you know, a volun- tary merger can only be concluded by the stockholders. The managers of the company, its officers and directors, however. have for several years held, and publicly expressed, the view contained in your letter—that a con- solidation should be worked out on a basis fair to the public as well as to the security holders of the company. “This view was given definite ex- pression by me in a letter to William McK. Clayton, chairman of the utili- ties committee of the Federation of | Citizens' Associations of Washington. of date January 24, 1920, wherein I stated: ““The management of the Capital Traction Company has never opposed, but on the contrary is on record in the expression of a view favorable to a merger by agreement, fair and protective to its security holders and to the public, and providing a sound and safe direotion.’ “In this letter I referred to the @if- ficulties confronting any effort to ef- fect a consolidation and said: ““These, however, in my opinion, are difficulties that may be overcome. and overcome more certainly and more usefully by the stockholders through the application of sound judgment and business sense than through compulsion in the direction of public ownership, or through tax provisions. which apparently sound. in principle. are sought to be enacted alize one com : it of another: L0y for the bene: Facts to Be Considered. “The board of directors a v the position taken in this m'ié’;"’lifi‘ in recording its approval stated as among the elements that should be larkpn‘ir_llo account in the working out of a fair merger agre. = st B greement, the fol. “(a) A merger should incl property of both companies, t’r‘-‘fgli:': within and without the District of Columbia, and the Potomac Electric Power Company. J “('t;‘) 'I"hnl_bui& of merger should e the relative earning o \'a]l:e‘OfAlhe r‘omnanlesg ST *¢el provision for s cost, in order that the ralfr?fu(.:: might be automatically adjusted to conditions. “(d) A management that would command the confidence of the public and the security holders, and in this management, as well as in the nego- tiations for merger, the public should have representation. “(e) A plan of merger so worked out and approved by the Commission- ers should be submitted to the stock- holders of the respective companies for their consideration, and if ap- proved by them reported back to the Former Views Unchanged. “The letter above recited and the action of our board of directors will be found fully set out and discussed by Vice President John H. Hanna in his testimony before the House com- mittee at its hearing in February, 1920, on H. R. 11753, entitled ‘a bill to further regulate public utilities in the District of Columbia. etc.! in part 4, page 327, et seq., of the printed re- port of said hearings. “This view and position as to the view and position of our m: ment, and has not been in_any wi changed by recent increase in receipts due to increases in fares not asked for y the company. The permanent sue- cess and stabilization of the industry. which would, in my opinion, follow & consolidation, which, to quote your praise at British banquet. Page 20 Republicans agree on re-election of present House leaders. Page 21 » letter, “will be fair to the public, as well as to the stockholders of g . (Continued on Page 2, Column 2.) merger. so often repeated in the past, is &till |

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