Evening Star Newspaper, July 26, 1921, Page 1

; Finance Corporation as an agency of © War Finanee 4 NEW RENT CONTROL BILL. - - ‘WEATHER. tonight and tomorrow. ‘Tempera: p.m. today; " No. 28212 Generally fair and moderately warm ture for twenty-four hours ended at 2 p.m. today: Highest, 91, ; lowest, 70, at 5730 a.m. Closing New York Stocks, Page 17. Entcred as second-class matter post office Washington, D. C. ' PRESIDENT ASKS CONGRESS , TO AUTHORIZE PURCHASE OF RAILROAD SECURITIES; Would Use Funds of War Finance Corporation FARM EXPORT AID| IS ALSO SOUGHT Message Says Plan to Help Rail Lines Will Be Economical. President Harding, in a special mes- sage to Congress today, asked it to extend ithe authority of the war finance corporation to purchase se- curities, probably up to $500,000,000, now in the hands of the railroad ad- ministration, so that the proceeds may be used for Settlements with the rail- ways. This the President told Congress would open the way to “early ad- justment and relief” of the railroad problem. There was no thought he said of asking Congress for additional money. The message asked legislation au- thorizing the war finance corporation 1o increase credit for financing agri- cultural exports. Cites Government's ‘Moral Obligations® That there were “moral” obliga- tions upon the government to aid in both respects was stated by the President, who commended the War great value in restoring economic conditions. Prompt action was re- quested by the President. but he did not ask that both features be con- tained In one bill. Railway claims, based on the “inef- ficiency of labor” during the war. the President said, were to be waived for the present to hasten settlement with- out surrender of any rights in court. Although the railroads owe the gov- ernment large sums, the President said, the government also owed the railroads large sums on various ac- counts. “No added expense,” said the Presi- dent, explaining his request. *“No added investment Is required on the part of the government. There is no added liability, no added tax burden.” “It Is merely the grant of authority necessary to enable a most useful and efficient government agency to use its available funds to purchase securities for which Congress already has authorized the issue, and turn them into channels of finance fédy to float them.” Elrector General Sends Data. With his message the President sent also to Congress, a large amount of data from rector General Davis of the railroad administration, showing the yrogress of liquidation so far and treat- ing present financial conditions. Republican leaders, after the receipt of the message. adopted the plan of dealing with the railroad and agri- cultural questions in separate meas- ures. Senator Kellogg, republican, Minnesota, introduced a bill, drafted by Secretary Hdover of the Depart- ment of Commerce and Chairman Meyer of the War Finance Corpora- tion, ‘extending the powers of the orporation to agricul- tural export financing. It also would fncrease the corporation’s revolving credit fund from five hundred million to one billion dollars. Kellogg Bill as Substitute. The Kellogg bill was offered as a rubstitute for the pending Norris bill 10 create a new government export financing corporation, With $100,- 000,000 capital. Provisions dealing with railroad funding were stricken from the Hoover-Meyer draft beforé st was presented, and republican Jeaders planned to consider later and scparately the President's recom- mendations that the War Finance Corporation tak® over railroad fund- ing. lfl his memorandum accompanying the President’s message Director General Pavis submitted figures to show that the amount of claims settled by the “{Continuéd on Page 9, Column 3.) —_— NEW POST FOR CLAXTON. Accepts Proctorship of the Univer- sity of Alabama. TUSCALOOSA, Ala, July 26—Dr. P. P. Claxton, United States commis- sloner of education, has accepted the position of "proctor of the University of Alabama, according to announce- ment by the board of trustees, today This is a new executive office at the university Continued federal control over food and rent charges in the National Capital 4s proposed In a bill introduced yester- day by Representative James T. Begg of| Ohlo. Owners of rental property who, previous to ‘April 18, 1921, collected rents in excess of the amount allowed by the rent commission, would be granted ten Jays after the passage of the bill to re- fuhd the excess amount to avoid lia- bility. It stipulates that owners who have obtained judgments for rents in the courts against & tenant in excess of the amount allowed by the rent com- mission are given sixty days in which to move that the court order be vacated, to the amount of the’excess. The Begg bill would have the Attor- ney General instead of the rent commis- sion prosecute the violations under that act. It provides salaries of $5,000 each for the rent commissioners and an at- PRESIDENT’S MESSAGE URGING EARLY RELIEF FOR THE RAILROADS President Harding’s message to Congress on railroad and agricul- tural financing, follows in full: To the Senate and House of Rep- resentatives: It is necessary to call the atten~ tion of Congress to the obligatiens of the government to the railroads. and ask your co-operation in order to enable the government to dis- charge these obligations. There is nothing new about them, but only recently has there come an under- standing which seems well to jus- tify a sincere endeavor to effect an_ early settlement. These obli- gations already have been recog- nized by Congress, in the passage of the transportation act, restor- ing the railroads to their owners. but previous recognition was made in the contract under which the railroads were operated by the government for the period of the world war. The contract covering operation provided that the railways should be returned to their owners in as good condition as when taken over by the government, and the trans- portation act, recognizing that bet- terments and additions belong to capital account, provided that such sums as the railway companies owed the government for better- ments and new equipment, added during the period of government operation, might be funded. There has been. at no time, any question about the justice of funding such indebtedness to the government. Indeed, it has been in progress to a measurable degree ever since the return of the railroads to their owners. It has been limited, how- ever, to such cases as those in which final settlements with the railway administration have been effected. The process is admittedly too slow to meet the difficult sit- uation which the owners of the railroads have been facing, =nd I believe it essential to restore rail- way activities and essential to the country’s good fortune to hasten both funding and settlemen:. Quite apart from the large su owing to the government, which we are morally and legally bound to fund, the government admitted- ly owes the railway companies large sums on various accounts, such as compensation. depreciation and maintenance. There has been a wide difference of opinion relat- ing to the amount tffe government owes, due in the main to the claim of the owners that in spite of ma- teriala and hours of labor being imated in proper relations to similar expenditure in the pre-war test period, the “Inefficiency - of labor” still left a wide difference between actual -upkeep and -the expenditure made during the gov- ernment operation. In order to expedite settlement and funding an informal under- standing. which is all that is pos~ sible or practical, has been reached, under which the railway claims based on the “inefficiency of labor" are to be waived to hasten complete and final settle- ments, without surrender of any rights -in courts in case there is faHure to settle. I have no doubt that early, final and satisfactory settlements will be reached, since the policy of the railway adminis- tration already has been effective in finally settling the accounts of roads filing claims amounting to $225.563.764, resulting in the pay- ment to them of $68,141.222. The way now would seem to be clear to very early adjustment and relief, except for the fact that the railway administration, though possessing assets, does not com- mand the funds necessary to meet what will be its admitted obliga- tions. . There is no thought to ask Con- gress for additional funds. Perhaps $500,000,000 will be necessary. The railroad administration has, or will have in the progress of funding, ample securities to meet all re- quirements if Congress only will grant the authority to negotiate these securities and provide the agemey for their negotiation. With this end in view you are asked to extend the authority of the War Finance Corporation so that it may purchase these rallway funding securities accepted by the director general of railroads. No added expense, no added invest- ment is required on the part of the government: there is no added lia- bility, no added tax burden. It is mgerely the grant of authority nec- essary,to enable a most useful and efficient government agency to use its available funds to purchase se- curities for which Congress al- ready has authorized the Issue, and turn them into the channels of finance ready to float them. 1 can readily believe that so sim- ple a remedy will have your prompt sanction. The question of our ob- ligation cannot be raised, the wis- dom of affording early relief is not to be doubted, and the avoidance of added appropriation or liability will appeal to Congress and the public alike. The after-war distresses of two great and fundamental activities have been riveting the anxious at- tention of the country. One is the readjustment and restoration of agriculture, the other is the dis- tress of our railway transportation system. Pending proposals for relief and their _discussion gress, the very promising possibili- tles of broadening the powers of the War Finance Corporation for the further relief of agriculture and live stock production. This corporation has proven itself so helpful in the relief thus far un- dertaken that I cannot help but belleve that its broadened powers, as have been proposed, to meet torney and secretary at $3,000 each. | (Continued on Page 2, Column 7.) PRESIDENT OPPOSES HOUSE VACATION UNTIL TAX REVISION BILL IS PASSED President Harding disapproves of the idea of the House of Rep- Tresentatives taking a recess until it has disposed of the tax revision legislation now pending before the ways and means committee. He made this fact known today to Housé Leader Mondell, who con- ferred with him regarding several matters, including the. desire on the part of some republican mem- bers for a recess in the near fu- ture. “It is my idea,” Representative Mondell said, on leaving the Presi- dent, “that we should be _through ‘with this legislation by.September 1. There will be plenty of time then for a recess. It also is my idea that we should lift rather than add to the heavy tax burdens now being bbrne by -the American ! l ple; that is, I am in favor of re- moving every possible tax. I b lieve that subMantial reduction all along the line can be made under the plan which the republican lead. ell‘l ultimately will'put into execu- tion. “In my judgment,” Mr. Mondell continued “we ¢an reduce the taxation by at least half a billion dollars a year without impairing the efficlency of the government. ‘The so-called ‘nuisance’ taxes, such as those on soda water, toilet arti- cleg and the like, can easily be abolished without apparent loss in revenue to the government. Then, there should be a reduction in the tax on_transportation.” The House leader said he was ogpoud to putting a tax on bank checks, but he thought it was prob- able that a three-cent. stamp, in place of a two-cent stamp, will be required for first-class mail. . - 1 | WITH SUNDAY MORNING EDITION \VASHINGTOi\T D. C, TUESDAY, JULY 26 1921.-TWENTY-FOUR PAGES. APPORTIONMENT OF OFFICES.LAW Unsound in Principle, Vicious in Practice; Hurtful to Na- tion and Capital in War and Peace; Helpful to Nobody. Editorial Correspondence of The Star. THEODORE W. NOYES. IL Employment in local industries of local people is based on the soundest principles of efiiciency. For example consider the New England industrial towns, where whole families are em- ployed in the same mill, chifdren profiting in efficiency by the experi- ence and instruction of their parents. Suppose the United States should nationalize the mills of Lynn, and put its employes engaged In these mills in the classified service. Under the apportionment of offices law, it would discharge the men, women and children of Lynn until only Lynn's fraction of the Massachusetts quota remained, and wpuld distribute the remainder of the positions among the states of the Unlon, according to their population, so many to Oresum, s0 many to Florida, so may to Texas. Such a course would be idiotic on the part of a private employer. Would it be any less idiotic because the employer is Uncle Sam? Or take the railroads, the nation- alization of which has been urged as a practical matter. If they iers na- tlonalized would Uncle Sam escape qualifying for the insane asylum if he should say: “I cannot under the ap- portionment of offices law choose as my railroad employes the most effi- cient Americans available Irrespective of their state allegiance. 1 must di- vide my engineers and my conductors and my perters and my railroad oper- atives in general among the various states according to their populations, even if the result is to bar efficient | Americans who wish the work and to draft for this employment com- paratively unfit Americans because they happen to live in California or Wyoming or New Mexieo or Florida.” Unele Sas Crasy Employer. Would it not be as logical to divide offices among Americans according to the color of their hair, as red-headed, black-haired or tow-headed. or #- cording to the shape of their noses as aquiline or pug, or according to their church affiliations as Baptist, Meth- odist or Presbyterian? 1s there any difference in prineiple Letween raflroading or cotton mHI work and work im the government workrhops at Washington that makes a principle and method of employ- ment crimimally absurd in the - the othert Summary of Law's The apportionment of offices law (1) hampers and Injures the goversment as _employer, assuring impairment of efficiency,” violating _every _business principle; (2) it violates she basic principles of the merit system (a3 dis- tinguished from the spolls system) of employing workers in the nation’s public service. It makes residence in a particular state a. condition of employment by Uncle Sam and bars him from employing to do his work the most meritorious apd most effi- cient of Americans, irrespective of whether they hail from north, south, east or west. Pretending te over- throw the spoils system and to substi- tute merit as the sole test of national employment, by a miserable compro- mise this law carries over into the merit system a relic of the spoils system, apportioning s ppointmentsnot solely on the basis of merit and effi- ciency, but, like spoils of war, among the states in accordance with their population strength; (3) it confers mo henefit on the congressiomal repre- sentutives of the states, who super- vise the division of patronage spoil, Patronage is not an element of strength but of weakness. It has been aptly said that the appointing power in selecting or indorsing one official out of a dozen candidates makes eleven enemies and one in- grate: (4) it in mot on the whole a bleasing to appointees from reméte States, whom it demands, when bet- ter American workers from nearby states are available. These states, remote fom the capital, whose quotas are unfilled, are in the sections of great opportunities, high wages, in- spiring prospects. It is no benefit or kindness to the young man of such a state to remove him from the activi- ties and oppertinities of home to vegetate at a desk in Washington. Thus the apportionment law bemefits neither Uncle Sam nor the sional patre e dispenser mor the reeipient of office spolls from the re- mote state with its unmfilled quota. Thix method of apportioning offices in doubly cursed. It blesseth meither him who gives mor him who takes; (5)%it is cruelly unjust to the capital community, to whose youth it denies local means of self-support in em- ployments which in other cities go naturally to the extent needed to the youth of the.local community. Repeal in District’s Interest. Repeal, in the interest of the Dis- trict, the apportionment of offices law, 80 that the youth of Washington, if the most meritorious of all applicants, may have ready access to the govern- ment departments and workshops, which for Washington take the place of Tron mills in Pittsburgh and the cotton, woolen and shoe factories of many New England cities. Congress by its policy of discouraging -com- merce and manufactures at the cap- ital excludes all other great factories and workshops than its own, and then by the apportionment. of offices law (a relic of the old spoils system) shuts out the growing youth of the city from the classified service and from access to the only local means of self- support of this kind which it permits to exist. In the nation’s city national workshops are local. Wash g ington is the only community in " world where employment of local youth in the local workshops, instead of be- ting encouraged, is prohibited; where the .young man must go abroad in or- der .t: become eligible for employment at home. ; Repeal in Nation’s Interest: The mational interest demands the repeal of the apportionment of offices have seen, this law exposed in all its unbusinesslike. hhrtful ineffi- clency. In order that.the national government might function quickly and effectively to meet the require- ments of the business of war-making the hampering apportionment of of- fices law was in effect suspended. Un- der a true merit system the govern- ment should be able to use, in order to do the nation’s work. whether in war or peace, the best fitted of Amer- ican applicants, irrespective of the|yg state or territory - or section - from which they hail. As a P r - to eoffices law should repealed- as|Crane, Charles J. unsound in primciple and hurtful fa| Oty Club—F. practice. NES 23 ‘Weller. = - During the world war, as we | io part|11oyd, Albert FREE TRANSFERS OYSTER PROPOSAL Universal’ Change Added to Commissioner’s Trol- ley Solution. Universai free trgnsfers may be made a part of the Oyster plan to re- lieve Washington's traction situation. To his proposal for increasing the electric rate to 10 cents and reducing lcar fare to 7 cents the Commissioner would add, it ‘was learned today, the Proviso that transfers be issued with- out charge between the lines of the several street car companies operat- =ln%ln the Dll'lr’h::. 44 S 9 Dfesent intercompany. tranafer chnl!‘a ‘fl'z. cent. It is un e’;nwd the Capital Traction and Washington Railway and Electric companies reslize about $20,800 ' each anngally frofm . this source. This represents about 10,000 transfers. New Signifiensice. The Oystes traction plan took on new significance today, following the indorsement given it yesterday by the joint committee of commercial and | clvic organizations on street railways. The committee’s position, set forth in a petition adopted at a meeting last night in the assembly room of the Merchants and Manufacturers' Asso- ciation, will be communicated formal- 1y to the Utilities Commission today. Commissioner Oyster again today stressed the point that his preposal is advanced as a temporary mcasure of re- lief pending action by the courts in the electric rate case. Consumers, he pointed out, are now paying 10 cents a kilawatt hour for electricity and will continue to pay this amount’ until the courts have acted finally, although a cent and a half of the charge is impounded. The Com- missioner would stop this impounding progess and make the.money available for railway needs, which would make possible immediately a 7-cent car rate. The joint committee's _petition does not mention the plan by name, but sub- scribes to the general propositoin of a uniform 7-cent car fare and a 10-cent | electric rate. The petition says: “There is a general desire that the street rallways of the Digstrict of Co- lumbia shall render the fullest possi- ble' measure of public service and an equal desire for a lower rate of car fare and a minimum electwic light rate consistent with such service. “The members of the joint com- mittee of commercial and civic or- ganizations on street railways of the District of Columbia, comprising_the Board of Trade, Chamber of Com- merce, Merchants and Manufacturers’ Assocfation and -the City Club, are committed to a uniform rate of fare on our street railways, and hereby slon of the District of Columbla to seek a solution of the present situa- tion by establishing a seven-cent car fare rate, and a rate for electric light and power based on a ten-cent-per- kilowatt-hour - rate to retail con- sumers. “This recommendation is offered as a temporary expedient until perma- nent reliet can be afforded.” James T. Lloyd, chairman of the ex- ecutive committee of the joint com- mittee, presided at the meeting. This committee is made Up of three repre- uentatives of the organizations, which represent a membership of about 6,000 firms and individuals. In addition to_the adoption of the petition to the Public Utilitips Com- ission the joint committee decided m course of procedare for the fu- :I'Ilre- and directed Chairman Samuel J. Prescott, who is out of the city at the present time, to name three com- mittees—one to consider the financial aspects of the railroad _situation, another the commercial and the third the historic. % It was the sense of the joint com- mittee that today’s situation demand- ed the passage of the petition to the Public Utilities Commission, so that the commission might have the benefit of the judgment of the duly accredited committee acting as’ the mouthpfece of the trade and civie or- ganizations. Both the general com- mittee and the executive committee of this joint committee have held four meetings and have set in motion a program which they expect will get to the Tobt of the entire railroad problem. The joint committee will not only give the Public. Utilities Commission the benefit of ‘this and further opin- ButAwill go_to Congress on' the question. At the direction ofithe-com- ry. Columbus -has ad- dressed’ a ‘letter to both the Public Utllities Commission and the District committees of Congress, requesting notified of any and all hearings lroad matters, and that Mr. Columbus and others: to be. designated later would attend all ‘hearings. 32, T;‘a ‘p‘mnnel of the joint commit- tee follows: 5 Board of Trade—Willlam Clabaugh, ‘Grabam-and Samuel-J. Pregcott. Commerce — James T. Schultels "and Arthur Seymour. rchents: and Manpfacturers’ As P. A.dlr‘flu. arles F. . C. ‘Chamber .of petition the Public Utilities Commls-l Columbus. H. Ellis and Frank R. Northcliffe Says He Could Tell More of -Prohibition If It Were By the Associated Pres: NEW YORK, Jul, count Northeliffe, who is en, ing the lure of the metropolis for a short while before resum- ing his trip toward the far east,’ has jolmed ling foreign. personnges, who exhil of humer fch recalls what n prince on a recent visit o New York asked: “When does prokibition be- sint” COMMITTEE RULES AGAINST SALES TAX Will Not Include Provision in Revision of Revenue ; Laws. Agreement among members of the House ways and means committee that in revision of revenue laws no provigion will be made for a sales tax was announced today by Chair- man Fordney at the opening of pub- lic hearings on the proposed measure, H. C. McKendrie, tax representative of the American. Farm Bureau Fed- eration, appeared before the commi tee prepared to oppose this form of tax. He was advised to proceed with Larguments on other phases of the |Beneral tax question, in view of the i committee’s attitude. Result of Referendum. The witness did get into the rec- ord a statement that in a referen- dum, members of his organization 1 had voted 87,395 to 722 against a sales i tax, 6 to 9,621 in favor of a | constitutional amendment to pro- hibit the issuing of tax-free securi- ties, and 83,475 to 6,121. against re- Ppeal of the excess profits tax. ‘When Benjamin C. Marsh, represent- ing the People’s Reconstruction League, appeared he was given only ten minutes. Milliopaires had been given an entire day, Marsh said, and Chairman Fordney replied: “You are here to give information. If you insist on giving sarcasm, you are through.” Urges Abolition. Mr. Marsh argued that existing consumption and all other taxes should be abolished except “taxes upon individual incomes, upon cor- porate profits and upon estates and transfers of property between living persons, plus a reasonable tax upon vast landed estates and city land speculators.” Representative Mills, republican, bill, proposing a reduction of sur- taxes and imposition of taxes on the ’n-m of persondl expenditures. He declared that| present tax laws were causing a “maximum of damage to the business community and ylelding a diminishing return each year.” Mr. Mills said there should be no tax-exempt securities. DISABLED ON MAIDEN TRIP Steamship American Legion H Broken Feed Pump. ' NEW _YORK, July: 26.—The new United States Shipping Board steam- ship _American Legion,” which left here“Saturday for Rio Janejro on her maiden trip, has put into~Bermuda because of a broken feed pump, the Munson line operator of the vessel has advised. Frank C. Munson, president of the un;, sald repairs would take less than a day. STUDY U. S, PROHIBITION. Two Members of British. Parlia- ment to Determine Effects: . NEW YORK, July 26—Two mem- bera of the British (rll'll-\lnenl start- ed today a first-hand investigation to ascertain how prohibition is working out in the United States. The two, Charles Sitch, member. for Kingwin- ford. Staffordshire, and John E. Da- vidson, member for Smethwick, Bir- mingham, said they - would ort their findings to the ll_hor_pléq, of which they are members. Both took occasion to deny - pre- dictions of American reformers that England will be dry within ten years, {/ asserting. there was little dry senti- L % Teast in the labor party. 'he Britishers will spend two weel g K8 in New York and then will visit other. 1 citiés and towns.: New York, appeared to explain his|where [ Member of the Associated Press The_Awociated Press is exclusively entitied to the ‘use for republication of all news dispatches credited to it or not otherwise «redited In this paper and also the local news published herein, All rights of pl’lblfitlul ot spacial diepatches acrefu are alw reserved. Yesterday's Net Circulation, 88,142 TWO CENTS. TIGHTENS SHIELDS FORD. BATERS Col. Sherrill’s Program Calls for Sanitary and Safety Measures. A general tightening of the regu- lations for protection of patrons of the municipal bathing beach and the swimming pools in Rock Creek Park was ordered today by Col Sherrill, officer in charge of public buildings and grounds. This program will be put into effect immediately. First—A sanitary officer will be placed in charge of the municipal bathing beach. Second—A section of the beach will be reserved for children wh cannot swim and who are not ac- | companied by adults. " Third —Rock creek water will be chlorifiated. Fourth—The park police regula tions will be revised to conform to the District regulations, so that ef. fective supervision may be maintain. ed over concessionaries who sell foodstuffs at the bathing beach and other places in the parks. Water Purificati Col. Sherrill visited the beach this morning to witness the operation of the chlorinating process. Reports of eye infection have been made by several persons who have patronized the Leach recently, and it was be- lieved the trouble might have been caused by too much chlorine in the water. According to Col. Sherrill, this was not a likely cause of the trdEble, as the chlorine is placed in the water in a liguid form so that it may be dis- solved readily. But he is having tests made today to determine the condition of the water. Fublic_health service tests, made before the chlorine process was started, showed the bathing beach to have a better quality of water than it had last year, the Army offi- | cial stated. He considers the beach absolutely safe from a health view- point. The sanitary officer for whom Col. Sherrill has applied will be detailed from the Army Medical School, it was stated. This official will make regu- lar tests of the water and look after the health interests of the patrons. He also will keep close tab on the quality. of food offered~for salegin the parks and prosecutions will follow violation of the regulations. Col. Sherrill said the quality of the water in Rock Creek is not as good as that in the tidal basin. An auto. matic chlorinating device is to be in stalled in the creek above the swim- ming places. If this fails to purify the water properly, "these swimming pools will be closed. Guarding the Children. Hereafter children visiting the beach who cannot swim or who are not accom- panied by thgir parents or adults will be seg! ted in a safe part of the beach, they will be under the constant protection of guards. Col. Sherrill said ‘this step was made necessary because so many unattended ehildren are patron- izing the beach. The District health department has no supervision over the tidal basin or the public parks, and all complaints re- 'garding the quality of water and other conditions that are received at the Dis- trict bullding are forwarded to Col. Sher- rill.. That officer -said today that -the sanitary organization being built up under the direction of the public health service would be adequate to cope with the situation. Today’s News in Paragraphs Universal interchange of transfers may be added to Commissioner Oyster's trolley plan. Page 1 Porte cochere planned for executive offices at White House. Page 1 ‘Commissioners propose municipal super- vision' of school playgrounds during vacation months. . Page 1 Sales, tax opposed by committee. Page rogram pro_vld’nl for, safety of chil- at the bathi beach and for bet- i -ter sanitary conditions for bathers has ' : been adopted. Page 1 President shows Congress how to meet ‘needs"of agriculture.and raflroads. Page 1 ‘Board of Trade to inquire into means to “solve disposal problem, Page 3 Canada elections likely to be delayed on accougt of disarmament parley. % Page 5 Meeting of supreme council called to take up Silesian problem. Page 13 Greek ‘victories force Turk nationalists to move seat of government. Page 13 saident to attend pilgrim fete at Ply- Dt and vistt Secietary Weeks -in New Hampshire on ten-day REPLY OF JAPAN LIKELY TO BE DECIDED ON TODAY Definite Action by Tokio Cabinet Expected—Talks = Here Clarify Situation. By the Associnted Press. TOKIO, July 25.—Official circles to- night were disposed to forecast defi- nite action by the Japanese cabinet tomorrow (Tuesday) in acceptance of President Harding's suggestion fora far eastern confernece. Apparently the talks hetween Ambassador Shide- hara and Secretary of State Hughes in Washington have gone far toward clarifying the situaton. According to Japan's understanding of the American viewpoint, as given out here, America’s idea is to make the basis of the conference a broad discussion of policies and principles| rather than of specific topics, al- though each participant would have the right to introduce specific sub- jects if they were germane to the principle under discussion, and if the powers generally in the l'acific were affected. The idea Is said to prevail that questions affecting two powers should be left, wherever possible, to the powers concerned. The general position of Japan was summarized as foHows: Peace now prevails in the far east, and the great aim of the conference shoud be to harmonize policies, and all participants in the conference should strive to this end. Bitterness and misunderstanding should not be created by allowing any participant to leave the conference with the feel- ing that action had been taken detri- mental to his rights and vital inter- ests. [LLINOIS GOVERNOR WILL BE ARRESTED iNot Immune, Court Rules, Scoring Divine Right of Kings. 1 BY the Associated Press. | SPRINGFIELD, 1L, July 26.—Gov. | Small, despite his official position, is subject to arrest and prosecution for his aits as state treasurer, Judge E. S. Smith of the Sangamon county circuit | court ruled this morning. Under the de- cision, the governor would be permitted “to voluntarily present himself before the court.” | The next.move in the Small-Sterling- Curtis embezzlement probe will come ‘from Sheriff Mester of S8angamon countys | the court having ruled that “it is not | the duty of the court to withhold war- | rants for the governor." | Sheriff Mester indicated, immediately after receipt of the opinion, that he would immediately notify the governor | that he held the warrants, but that *“no {attempt will be made to embarzass the i chiet executive.” Divine Right Flayed. i The opinion of Judge Smith also ruled i that it was “bevond the gcope of the | governor's power to call state troops Ho shield him from arrest” He stressed that there is no such thing in Illinois as the divine right of {kings and that the Kking has no counterpart in Illingis, and declared {that the statutes of limitations would expire through any prolonged delay in ‘serving warrants upon the governor. Notification of Gov. Small by tele- phone was the method of procedure i decided upon by Sheriff Mester. “1 may go-over for an interview i with the ‘governor later,” Sheriff | Mester said. Courtroom Crowded. Spectators began to arrive in the | historic old courtroom long before | Judge Smith was ready to open court. | The judge arrived early himself and | went to his private chambers. By 9 o'clock all seats in the court- room were filled. A number of wom- |en were among the early arrivals. Former Gov. Joseph W. Fifer and | George B. Gillespie of Gov. Small's { counsel took -the same places they ccupied last Friday, when = as {“friends of the court” they argued immunity for the governor. “Are there any motions?" Judge Smith asked when he took the bench, and a hush fell over the courtroom. There was no reply. Judge's Opinion. Addressing _himself to attorne: Fifer, Gillespie and Graham, counsel for the governor, Judge Smith then read his opinion.” Judge Smith_ said: “Hon Joseph W. Fifer, Hon. James M. Graham, Hon. George B. Gillespie: “On July 21st you three distin- guished gentlemen appeared in court as amici curias and asked leave to jadvise the court as to its duties. A request from such a source could not be ignored. and your contentions and uggestions merit most serious and careful consideration. “On the 20th day of July, 1921, the grand jury of Sangamon ceunty re- turned “into this court three indict- ments against Len Small, charging him' with criminal offenses. “The etatute makes it the duty of the court, when an indictment. is re- turned, to fix bail, if the offens: charged is bailable, and makes it thi duty of the clerk of the court to im- mediately issue process of capias di- rected to the sheriff for service. “Appearing as amicl curlas to give the court friendly advice as to its duties and the course it should pursue, you advise that the court, on its own motion, should issue a re- straining order ‘enjoining the clerk of this court from issuing process of capias for the apprehension of the defendant until after the expiration of his term of office, and tha® the icourt should suspend prosecution during said term. . Official Can Err. | ‘“The king can do no wrong. “In support of this advice it is urged that because of the high of- great disaster that would otherwise befall the state, and in pursuance of public policy, the defendant is im- mune from arrest and that prose- D.C.HEADSTOASK PLAYGROUNDS BE CITY GONTROLLED of Municipal Supervision School Sites in Vacation Months Planned. PROPOSAL WOULD INSURE MORE CERTAIN FACILITIES Commissioners Grateful for Repre- sentative Focht's Efforts, But Can Meet Situation. Placing of all school playgrounds under the supervision of the mun pal playgrounds department during vacation months will be proposed to the board of education, Commissioner Oyster announced today. In making the announcement the Commissioner expressed dpreciation of the efforts of Representative Focht. chairman of the House District com- mittee, to relieve the playgrounds sit- uation’ through special legislation, but expreseed the opinion that the Com- jmissioners will be able to handle the sit uation through the regular District appropriation bill. This probably means that Repre- sentative Focht's bill, introduced yes- terday, giving the Commissioners’ au- thorily to take vacant ground for playground purposes under certain conditions. may net receive a favor- able report from the District heads. although it was made plain_ at the District building that the Commix- sioners are not ungrateful to the | House member for the interest he is showing in the matter. Budget Would Provide. Commissioner Oyster believes the playgrounds situation can be worked out satisfactorily if provision is made for operating at least 50 of the 72 school plavgrounds during the summer. If the bozrd of education agrecs to turn over these grounds to the municipal department during the vacation period, the forthcomi: District budget undoubtedly will p vide for the employment of at least fif.v additional playground instruc- tors next year. Meanwhile, the gquestion of open- ing these grounds during the balance of the present summer is under con- sideraticn. Mrs. Susie Root Rhodes rupervisor of playgrounds. went over the situation with Commissioner Oys- ter today. The difficulty in the way of placing these recreation centers in cperaticn at the present time I8 lack of funds. Under an order of the Commission- ers no mypicipal department may so- licit donagions, but contributions vol- untarily made can be accepted. The law prohibits acceptance @f free per- sonal service, which makes impossiblc the providing of Instructors for the playgrounds except upon a remunera- tion basis. Public Ald Needed. Unless the public, without solicita- tion, sends In contributions for oper- ating the school grounds during the balance of the summer, there is little likelihood of their being opened, it is stated. In her talk with Commissioner Oys- ter this morning Mrs. Rhodes sug- gested the desirability of placing in- structors in public parks to direct the play of the children who congregate there. -Mra. Rhodes would like to see a fourth of each of the large parks set aside for play purposes and equip- ped with small apparatus. But if the federal government should the placing of playerounds nalia in the parks. she would be sat- isfled with being permitted to direct the play of children in the parks through competent instructors. Mrs. Rhodes points out that the parks are the favored play places of the children. It is probabie her sug- gestion for expansion in this direc- tion of the capital's play facilities will be communicated to Col. Sherrill, of- ficer in charge of public buildings and grounds. Bill to Use Lots. Making good on his promise as re- ported in The Star yesterday, Chair- man Focht of the House District com- mittee drafted late yesterday and to- ficial position of the accused and the [ day introduced a bill providing that any vacant lot in the District may be <aken over by the District Commis- sioners for playground use until the owner of the property is ready to build upon it “This would provide abundant play space for the children in their homv neighborhood, keeping them off the streets, dffording them organized play supervision, =o that their bodies would be trained instead of maimed.’ said Representative Focht. “It is a move toward conservation of our greatest national resource—the men and women of tomorrow. Play is the heritage of the American youth and should have its I ghest development in_the nation's capital. “This would be done without any hardship to the property owner, be- cause my plan provides for moving the playground equipment from one lot to another as the owners decide they are ready to build. It would be one of the greatest moves we could make for beautification of the city. for surely a vision of happy children growing strong and learning the great lessons of democracy by mixing together in sports at the playgrounds, is a much Dleasanter picture than vacant lots overgrown with weeds and decorated with tin cans. Will' Push Measure. Chairman Focht announced his a-- termination to push this measure f.r early: action and said he anticipated no opposition in the committee. -His bill on which he has invited the Com- missionars to suggest amendments is as follows: *“Be it enacted by the Senate and the House of Representa- (Continued on Page 2, Column i.) SOVIET NEW TYORK; July 26—The Rus- #an sovigt ‘government has served notice on four New York and two Washington banks that it is the own- er of more than $179,000,000 deposit- ed in_these institutions by Boris Bakhmeteff, who was appointed Rus- sian ambassador to the United States before the soviets %cquired control. In making this announcement to- day Charles Reicht, .attorney for the soviet regime, said the notices sent to the banks warned them that they would be held liable if they should pay the funds to any one but an ac- credited representative of the soviet ernment.. < - ‘fi;'he banks are the National- City 13!.Bank, the Guaranty Trust Company, {Continued on Tage 2, Column 7.) CLAIMS ~ $179,000,000 - IN BANKS HERE AND IN NEW YORK 1; By the Associated Press. e Bankers' Trust Company and the tSheennd,Nlflcm‘l Bank of this city and the Dupont National Bamk and the Riggs National Bank of Wash- ington. Officiale, of both the Riggs and Du- pont national banks here today said they had mot yet recelved any motice from, the soviet government regard- ing éredit of funds placed in the in- stituticns by Boris Bakhmeteff, for- merly ambassador of the imperial gov- -rnment of Russla. €TAT ‘the Dupont National Bank it was sajd that the cashier had no personal knowledge of any deposits gither by the former government or by Ambassador-Bakhmeteff. Officials at the Riggs Bank declined to uis- cuss whether .there -were deposits made there by the Russian govern- ment or its ambassador.