Evening Star Newspaper, June 18, 1923, Page 1

i WEATHER. Fair and continued warm tonight and tomorrow; gentle southerly winds. Temperature for twenty-four hours ended at 2 pm. today: Highest, 87, at § p.m. vesterday; lowest, 60, at 5:30 a.m. today. Full report on page 7, Closing N. Y. Stocks and Bonds, Page 20 Entered_as second-class matter post office Washington, D. C. No. 28,902, D.C. BANK DEPOSITS FAIL T0' INDICATE SHRINE SPENDING Large Sums Believed Left Here, But Figures Show Almost No Change. STORES REPORT LITTLE DIFFERENCE IN BUSINESS Theaters Suffer, But Hotels, Hack- ers and Lunchrooms Thought to Have Done Well. The thousands of Shriners and their friends who were in Washington during their recent convention, un- doubtedly left a considerable amount of money here, but the banks of the National Capital fail to show it. Comparison of total deposits of fif- teen prominent banks of the city for June 15, with deposits as of June 1, show a total grand loss in deposits ©f $705,593.95. “ This loss in bank deposits was ac- | counted for by some bankers as the natural result of intangible and in- come tax payments, the payments having been made a few days prior to June 15. Gain Over 1922, Hotels, hackers, restaurants and sireet car companies got the Shrin- ©rs’ money, in the opinion of many, Lut what they obtained from the visitors is not reflected in the bank deposits. Clearings of the 15cal banks, June 4 to June 16, inclusive, which includes the period of Shrine activity, show a Zaln of $4.711.969.66, as compared With the same two weeks during 1922. k& figures follow: For the two Weaks, 1923, $37.990.122.60; for the two weeks of 1922, $43,278.152.94. The amount of money left here by | not | the Shriners, however, would show in the clearings, because the merchants of the city would not cash checks for strangers. Stores Differ in Opinlons. Tt 1s admitted that some of the big downtown department stores were agreeably surprised by the amount of business done during Shrine weck, although other stores do not seem to e as enthusiastic. “We noticed their presence,” said the financial head of one big store. Of course, the Shriners spent money, t maybe they took some away with them, too. 1t is certain that in some scctions of the city business houses did not do a normal amount of busi- ness, owing to the fact that all the residents were down town most of the time during Shrine week. Movie House Suffers. One motion picture house, it is un- derstood, in the western part of the city. which normally does an excel- lent business, only took in $35 the first night of the “big week.” The second day's receipts were $25. The third day it closed. This instance, while extreme, shows perhaps the way the wind blew in re- ard to spending on the part of the Shriners. The bank deposit state- ments do not show any gain in de- ts, in fact, just the reverse. This is accounted for, as pre- viously stated, by the intangible and income tax and also, according to some bank officials, by the fact that persons of the business world com- ing into the bank during the Shrine week expressed the belief that busi- ness was “in mighty poor condition” generally Figures by Banks. Total deposits of the banks sought | One bank | by The Star today follow. asked that its name be not uged and that its fisures be not used except in the aggregate, so neither name nor figures for that institution fol- | Its figures, however. were used Tow. in arriving at in deposits. Total deposits: Potomac Savings $3,062,245.06: June gain, $30,89 National -June 1, the total grand loss Bank 15, June 1, $3,093,136.05; ings $10,054,000; . $166,000. s ' National ' Bank—June 1, .641,000; June 15, $26,932,000; loss, 09,000 Second ,739,00 June 15, National Bank—June 1, June 13, $4,961,000; gain, Washington Loan and Trust Com- pany—June 1, $11,953,887.7 31 Loss, $14,630.75, American Security and Trust Com- 1, $26,899,366; June 13, $26,031.019. Loss, $868,347 Columbia National Bank—June 1, $2,854,000; June 15, $2,943,000. Gain. $89,000. Farmers and Mechanics’ Bank-—June 1, $3.023.717; June 15, $3 108,592, Gain, $20,600. Commercial National Bank: June 1, $12,423.373; June 15, $12.605,807. Gain, $182,434. District Bank: June 1, $6,443.153; $6,991,209. Gain, $518,056. Federal-American National Bank June 1. $11.356.000; June 15, $11,141,- 000. 1L $215,001 i Nationa .76; June 15, 133.17. Merchants — June 1. $4,835,927.24; $4.799,090.97. Loss, $36,846.27. National Bank of Washington—June 1, $7.576,703.18; June 15, $7,557,950.12, Loss, $18,753.06. Calls Convention Unprofitable. R. Golden Donaldson, president of the Commerclal National Bank (whose National National June 15, June 1, $2.430.- $2,437,790,93. Gain, bank showed a gain in deposits on the | 15th over those on the 1st, declared: “The reported loss is not neces- sarily indicative of the Shrine con- vention. I belleve, fhowever, that large conventions are not profitable, Too much preparation is made in an- ticipation of large amounts of money to be spent. 1 talked with a promf- nent motion picture manager and he| said a few days before the con- , vention arrived business fell off. During the convention there were so many sights to see that very few attended his theaters. After the con- vention everybody was tired out and the movies were not patronized, Hotels, too, lost, because three or four days before the arrival of the sShriners reservations. The regular, steady, profitable business was sidetracked for the convention, and it was this business that paid. Large gatherings| re not beneficial. The lunchrooms, I m told, made a lot of morey. Our bank Bas had a steady increase of il |,Jn | Men Dispatched From State Farm | i and Trust Com- | | PINE {from the state farm at Cummins in an- :_June 15, | they could not accept any By the Associated Press. LONDON, June 18.—An Exchange Telegraph dispatch from Rome quotes an unconfirmed message recelved by the Naples newspapers to the effect that the town of Linguaglossa has been destroyed by lava from Mount Etna, | ROME, June 18.—The great streams | of lava flowing from Mount Etna have reached a point only one kilometer from Linguaglossa Castiglione, | |both of which are being evacuated, according to dispatches from Catania. The lava stream approaching the for- mer town, however, is reported to have divided into two channels and | will probably not damage the Vi lage, owing to the configuration of | the ground. The railway station at Castiglione has been destroyed and some of the| most fertile vineyards, farms and | groves wiped out. A pine grove near Linguaglossa was obliterated. The lava stream headed toward Linguaglossa, before dividing, and at _a’'speed of 500 yards an hour. terror-stricken. ered in Yesterday they gath- the churches and organized KILLSWIFE, WOUNDS 4 ENDS OWN LIFE | Attack on Church Party Cul- mination of Elopement of Couple Under Age. | Special Dispateh to The Star. FREDERICK, Md. June double tragedy last night closed the stormy romance of Roy Smith and | Helen Wilhite, who eloped a year ago | |last March at eighteen and fifteen | years of age and set the countryside a flurry in evading sheriffs set upon their trail by the girl's parents. | Roy killed his wife and himself with a shotgun. Four members of a | party with whom the bride, who had | separated from her husband, was re- turning in a carriage from church were igjured by spreading shot as the team of\ horses driven by Harry Wil- hite. father of Mrs. Smith, dashed | | wildly through the darkness of the | country road. Concealed in Woods. Smith had concealed himself in the | woods and fired upon the wife, who t between Mildred, fifteen, and Beatrice, sixteen, her sisters, on the back seat of the carriage. Frances | Saxton, eleven, daughter of Rev. J. ! A Saxton, besides Wilhite was the| | other member of the party. They had just left Oak Hill Church of God, where Smith had been seen in the congregation. Smith’s body was found in a wheat fleld near the scene of ambush, at | §12:30 o'clock this morning, by a posse | which took his trail shortly after {news reached here. Mrs. Smith was dead when the breathless team drew up at the home of Al C. Barrick. a mile from the church. First aid was given others of the party, none of whom were seriously hurt. leaving the home of her hus band’s parents, Mr. and Mrs. Clarence Smith, near Woodboro, neighbors of her own parents, Mrs. Smith recently charged abuse at the hands of her husband. —_————— CONVICTS SENT TO FIGHT FLOOD IN ARKANSAS as Bank Begins to Cave. | By the Associated Press. BLUFF, June 18.—A detach- | {ment of 135 convicts was dispatched swer to an emergency call from South i Bend. Lincoin county, where the bank of the river near the South | | Bend levee began to cave this morn- | |ing about 8 oclock. | | SWALLOWS $1,500 RING | ! WHEN HELD UP BY BAND | Jeweler Loses $2,850 in Jewels and | $300 in Cash; 50 irr Garage Held Up by Bandits. NEW YORK, June 18.—Twelve armed bandits today held up fifty | chauffeurs, helpers and washers in lan East Side garage, while confed- lerates robbed a safe of $3,000. {Nothing was taken from the em- ! ployes. Earlier in the day two ban- dits, armed with revolvers, held up { Samuel Lowey, a jeweler, robbed him of jewels worth $2,850 and $300 in |cash. Lowey, who was in a taxicab |in front of his home in the Bronx, | swallowed a ring worth $1,500 when i the bandits approached. | In each case the bandits escaped in automobiles. | PARK RUM AT HALIFAX. | Liners Leave Liquor at Canadian Port Before Reaching U. S. | HALIFAX, N. S, June 18.—Halifax @h WASHINGTON, D. C, was | 250 yards wide and was advancing | is accompanied by violent explosions The inhabitants of the villages ad-| jacent to the base of th volcano are | flowing down the sides of the moun- 18.—A | follow Mr. Wilson's counsel, democratic | fight for the Irun | the presidential jcaptain of the democratic senatorial Italian Town Reported Razed By Lava Flood From Mt. Etna Linguaglossa Destroyed as Avalanche Descends Mountainside After Series of Violent Eruptions, Say Dispatches. processions imploring divine inter- vention. They spent the night watch- ing the approach of the lava streams, which, as they advanced, engulfed and incinerated trees, bushes and vineyards. Linguaglossa has a population of 15,000 and Castiglionge 10,000. LAVA FLOODS FIELDS. Land Explosions Herald Eruptions; Many Craters Open. By the Associated Press. CATANIA, June 18.— active today. Several eruptions of the volcano during the night were heralded by loud explosions, followed by streams of lava that overran a number of cultivated fields and woods. The station at Castigliona has been destroyed and the railway near the mountain obstructed, while a lava stream 300 meters wide threatens the district about Linguaglossa. Besides the eruption from the main crater, numerous small craters opened in the sides of the mountain. The eruptive activity of the voleano fount Etna is and tremendous discharges of ashes and cinders, with lava constantly tain. Slighter shocks are adding ter- ror to the situation WILSON SUPPORTS | WORLD COURT PLAN Urges Senate Followers Vote - for U. S. Entry; Silent on 1924 Nominee. BY FREDERIC WILLIAM WILE, Woodrow Wilson is advising demo- cratic senators, who seek his counsel, to support President Harding's proposal for American - adhesion to the world court. "The announcement, which this writer can make the highest au- thority, Is of special significance in view of the report that twenty-eight repub- licans have now pledged themselves to support Senator Lodge's “strong’” reser- vations to the Harding-Hughes proposal. Mr. Wilson, as his letter to Representa- tive Rouse of Kentucky, stated, would prefer unconditional American entry into the world court, But he is telling | his democratic friends that the terms on which President Harding would enter | are better than no entry at all. If they on senators will vote for Hughes program. who are ready to should be assured, in the form the ad- ministration desires, despite opposition of the Lodge battalion of reservation- ists, if the President decides to make a original Hughes project, | the Harding- With the republicans do so its passage unmodified. "As 1924 approaches and the country | is canvassing the men and measures that will be conspicuous in the next campaign, Woodrow Wilson's interest in them grows. Those more intimate political friends who see him nowa- days find him taking no assertive po- | sition, nor comporting himself as if| he still were the leader of the demo- | cratic party. If he were not physical- ly incapacitated, many democrats say he would have no serious competitor | for that title. He remalins, despite his disabllity, the party’s unrivaled “best mind.” Influence to Be Felt. His influence at the democratic na-! tional convention will not be parae| mount, but, as one national leadep puts it, will be ample enough to “hurl forked lightning” all through the! convention whenever he wants to. It is estimated that at least one-third| of the convention will consist of Woodrow Wilson's friends, ready at all times to veto. the ambitions of | men or the adoption of measures that | violently counter to “\Vilson poli- cies. The sage of S street emphasizes to all his callers that as far as 1924 15 concerned he is vastly more inter- ested in principles than in -persons. There is no “Wilson candidate” for nomination, It he has a preference, he refrains from voicing it. Probably Oscar W, Un- derwood is not one of S street's fa- vorite sons. In Mr. Wilson's cstima- tion, the Alabama senator is too much of-a conservative to meet the needs of ‘these progressive times. It is an open secret that the former President did not like Underwood's activitics as a Harding administration protago- nist “during the four-power treaty fight in the Senate, following the ‘Washington conference. Senator ““Joe™ Robinson’s vigorous leadership of the democratic minority on that occasion ' had Mr. Wilson's hearty approval and { strengthened the latter's belief that the hard-hitting Arkansan was the logical successor of Underwood as forces. Not “Booming” MecAdoo. William G. McAdoo will never be obviously “boomed” by his distin- guished father-in-law for presidential honors, But, on the other hand, there is no likelihood the Wilson influence | would ever be invoked against a Mc- Adoo candidacy. As in other cases, it would be what McAdoo stands for, as policies, that mainly would count. | 1t they were as liberaily progressive in respect of both national and inter- national affairs as Wopdrow Wilson thinks the democratic platform must be, he would offer no hostility to his son-in-law's aspirations, The former President thinks well of James M. Cox. He often takes oc-| casion to say 8o and to speak of the | courageous fight Cox made in 1920| for the league of nations. That lost| contest Woodrow Wilson still looks i today joined Bermuda as a parking | station for liquor which ocean liners {are forbidden to take into American ports, The Furness Liner Sachem, bound for Boston, and the Red Cross liner Silvia, on her way to New York from Liverpool, were the first vessels to check their supplies here. The vessels, carried just enough liquor to last to the three-mile limit. Saturday the Lamport and Holt line, operating between New York and Buenos Aires announced, its selection of Bermuda as a storage upon as merely one unsuccessful bat- tle in a war which is going on—as a temporary reverse, without de- cisive influence on the final result. If Cox should be renominated he would undoubtedly command Wood- row Wilson'’s hearty support. In 1918 it was at President Wilson's request that Henry Ford entered the ) Michigan senatorial race as a demo- cratic opponent of Truman H. New- {lowing obscrvations: { There berry. Mr. Wilson, like the rest of the country, is not’ unmindful of the “Ford-for-President” talk. But, de- spite his admiration for Ford's busi- ness career and acknowledgement of ¢ Foeni WITH SUNDAY MORNING EDITION SCHOOL OFFICIALS | STUDY PAY DRAFT Think Teacher Unions Aim| at Increase in Mem- bership. An analytical study of the new teachers' salary schedule, drafted by ! the legislative committee of the high school, grade school and principals’ unions, was begun today by school| authorities. i Although declining to comment on the new schedule, because of its con- troversial aspect. officials indicated | that behind it they designed to increase the membership rolls of the three organizations re- spoysiblé for its creation. The belief of the authoritiés is based on the fol- Reasons for Bellef. 1 That recommendations u{. the unions are premature because the | board of education has not yet under- taken the preparation of the salary! legislation it plans to submit to Con- | gress at the forthcoming session { 2. That some of the features pro- posed in the union’s schedule were in the original Capper bill and un- doubtedly would be incorporated in the board’s ne salary program. It also was pointed out that the statement of the unions that their salary schedule represents the views of the teachers is hardl correct. are approximately 00 teachers in the school system, It wa explained, while only a small per- centage, or about 400, are affiliated with the unions. Ask Higher Pay. The officials noted particularly in their examination of the new sched- ule that the salaries proposed are considerably higher than at present and even greater than those pro- vided in the Capper bill, which failed of passage fn the last Congress. It is up to the school board, it was said, | to determine whether it can expect | Congress to grant the salaries pro- vided in the new scale. | The minumum salary for class 1| group A, in the unions’ recommenda- | tlons, it was cited, is $100 greater | than provided in the Capper Dbill| while the maximum is $500 higher. For group B. of this class the min- imum is $500 greater than we rec- ommended in the Capper bill, while the maximum is $300 higher. Will Make Studies. ¥or class 2, group A,. the minimum is $200 greater than provided by the Capper bill, while ‘the maximum is $400 larger. For group B of this class the minimum is $400 greater| than provided in the Capper bill, while the maximum is §100 greater. In their study of the recommenda- tions, the officials will make a com- parison of the salaries proposed by the unions and those paid in other cities of corresponding size and pop- ulation. ART GALLERY SELLS LOTS FOR $250,000, Two at 17th and H Streets Trans- ferred to Randall H. Hagner. he Announcement of the sale of prop. erty from 719 to 727 17th street, com- prising lots 801 and 803 of square 167, by the Corcoran Gallery of Art to kandall H. Hagner for $250,000 was made today. The property is in the radius of interesting real cstate transfers of the past few months, being between H street and Pennsylvania avenue. The corner property of 17th and H streets, where the Albany apart ments are now located, figured re. cently in a deal handled by John W. Brawner for the Lincoln ‘National Bunk. I Construction of the transportation scent w movement | DEMURRER UPHELD | son, mayor of Jamestown, N. Y. {Unitea States: building on another corner_of 17th and H streets, and the arrival of a rumber of business houses on the: 17th street block between H street and Pennsylvania avenue, add spice %o real estate transfers in that vicin- ity. The Hagner deal was started some time ago, but the completion was not announced until today. The property had been held by the art gailery for ! - Star. “From Press to Home Within, the Hour” The Star’s carrier system covers every <ity block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. CIRCUS DAYS. Girl Leaves Bed For First Time In Year; Elopes By the Associated Press. SAN FRANCISCO, Calif., June 18. -—Miss Jean rang, whose spine was fractured in an automobile accident last year. and who since has lived strapped to a board in bed, was able to leave the bourd for the first time last week, and seized the sion to elope with George Franklin, her flance before the ac- cident. They were married at Burlingame, near here, after the bridegroom had carried the bride in his arms from the automobiie to the altar. Each is nineteen vears Mrs. Pauline Franklin, mother of the bridegroom, anounced that she would sfek to have the marriage annulled Mrs. Rebecca Strang, mother of the girl, also is said to favor an annuiment. Police were asked-to search for-the couple.: 10 FRAUD CHARGES Court Sustains Contentions| of Nine Defendants in Bir- mingham Motors Case. Justice Bailey of the District Su- preme Court today sustained demur- rers filed by nine of the twenty-seven persons charged with conspiracy to| use the mails to defraud in connec-, $3 : {1 Howard University’s medical school tion with the sale Birmingham Motors. clared there was nothing in the in- of stock of the dictment ‘which showed a scheme to! defraud. Attorneys Cromelin and Laws filed the demurrers Indictmenix Returned in October. The indictments were reported last October, and chargea Samuel A, Carl- Guy treasurer of the ames B. Mansfield, in- ternationally known engineer, and twenty-four others with victimizing hundreds of persons in various parts of the United States to whom stock in the corporation was sold. Attor- neys Cromelin & Laws on behalf of George B. Mechem, sr.; Harlan Van Wyck, Calus E, Weaver. Leland Can- non, George B. Mechem, jr.; Thomas E. Dicken, Martin Lindquist, Allen E. Mechem and R. C. Northwood, resi- dents of Jamestown, N. Y. and the Vicinity, filed demurrers to the in- dictment. Mayor Carlson refused to join in the attack on the indictment and asserting his innocence of any crime in connection with the stock of the company, asked United States At- torney Gordon to set an early date for a trial. Mr. Allen and Mr. Mans- field filed separate attacks on the in- dictment, but arguments were not heard on’ their motions. Effect of Court's Ruling. . The effect of the court's ruling to- day is to invalidate the indictments as to all the accused. Assistant United States Attorney Bilbrey, who attempted to uphold the allegations of the indictments,” had not decided this afternoon on the course of the government and _declined to say whether an attempt would be made to secure an indictment that would meet the requirements of the ruling of Justice Bailey or to appeal to' the Court of appeals for a reversal of the court’s decision. F. Allen, former \Playground Director Suspended On Charge of Striking Schoolboy Frank E. Kirk, director of boys’ ac- tivities in the playground depart- ment, was suspended today by Mrs. Susie Root Rhodes, supervisor of. the department, following charges that at a track meet at the Central High S&hool Thursday afternoon. 3 The complaint is that John Hefford, 1440 Rhode Island avenue, fourteen- year-old pupil at the ' Dennison School, sustained a cut on the should- er and had to be treated at a phy- sician’s office. Says Arm Was Hit. Robert Chipman, thirteen-year-old son of Dr. and Mrs. C. N, Chipman of 1420 Rhode -Island ‘avenue, also told his ' parents that - the ~ megaphone | the largest endowment in the hjsto: The court de- | general education board. | in Palestine, was murdered last Fri- | day while traveling between Ramleh MONDAY, JUNE 18, 1923—THIRTY-FOUR PAGES. HOWARD U. TO GET BIG ENDOWMENT $500,000 Sum for Medical School Lacks But $3,060 of Attainment. Howard University of Washington will fall heir within a few days to of its medical school. The university is under the supervision of the Sec- retary of the Interior, and the an- nouncement of the endowment was made by Secretary Work today. : The school is tq receive ,$500.000. half'of which s pledped By the gen- eral education board of New York city, provided the university raises a| similar sum through public subscrip- | tion by July 1. Three more yeaks are allowed to collect the pledges, so that the entire sum will be #vailable by | July 1, 1926, Officials f the Interior Department sald today that $246,940 of Howard | Universit. share of the half million | dollars has already been raised, and that it is only necessary to obtain $3.060 in additiona subscriptions dur- ing the next thirteen days to obtain the full amount. Officials were con- fident there would be no difficulty in | securing pledges for this amount. According to the endowment made - the general education board of New York. its contribution of $250, 000 will be paid to Howard University | in amounts equal to the cash from pledges from time to time. At present payments on contributions amount to ,000, with the result that after July will receive $32,000 also from the Contributions to the university are made up of 2,200 pledges. One of them is from a colored philanthropist and there are sixty-eight pledges from prominent alumni and friends of £1.000 each, many of whom are resi- dents of the District of Columbia. The $500.000 endowment is expected to result in the expansion of Howard University's medical school, which is the only school of this character ex- clusive of one in Nashville, Tenn., graduating colored physiclans, 'dentists and pharmacists. MINE LEADER HELD. Myerscough Arrested With Sedition. PITTSBURGH. June 15.—Thomas Myerscough, secretary-treasurer of the progressive international commit- tee of the United Mine Workers, was arrested on a charge of sedition as he left the'Allegheny county court house today. Myerscough had just filed a peti- tion for the recovery of papers seized in raids on alleged radicals here April 27. —_— BRITISH OFFICIAL SLAIN. Paymaster of Gendarmerie in Pales- tine Assassinated by Brigands. LONDON, June 18.—Capt. Swan, paymaster of the British gendarmerie Charged and Jaffa, says a Jerusalem dispatch to" the Daily Mail. His assailants escaped. Several other acts of bri- gandage have occurred in the district in the last few days, adds the.cor- respondent. 2 | The .occurrence is alleged to have | taken place during one of the public school divisional track meets at the high school stadium. A group of boys.from the Dennison School were standing on the sidelines watching a | race when the alleged mix-up oc- \ ‘Will Make Probe. Mr. Kirk, who has been with the playgrounds department * for about four years, was not at the office when the suspension became known. .Mrs. Rhodes stated that a thorough in- quiry into the affair is being made. According to.a relative of one of the | children, the boys were not doing| anything out of the way and were be- hind the rope that lines the running! track. : i One of fhe parents reported the al- leged happenings to Mrs. Rhodes and szmlunfiu r Oyster Saturday and the investigation was started imme- Saturday's Net Circulation, 83,703 Sunday’s Circu'ation, 96,641 TWO CENTS. COST OF GOVERNMENT CUT QUARTER BILLION PRESIDENT REVEALS Text of Address By President on Federal Economy Members of the Government's Business Organization: Two years ago this month there Wwas held the first meeting of the business organization of the gov- ernment. You were called to- gether at that time to afford me opportunity to lay before you the problem of diminishing the cost of government and to enlist your help and co-operation in its re- duction. We came out of the world war with a vastly increased public debt and a greatly expand- ed public service. It was Impera- tive that we should curb the ris- ing cost of government in its peace-time activities, and so we met together in that first meeting to discuss and formulate definite policies * of retrenchment and methods for carrying them into effect. As I look back over the past two . years 1 feel what that first meeting of the business organization whs an epoch in the administration of government business. Since then we have held thrée simllar meetings, all of which had as their keynote greater economy and greater ef- ficieney of the conduct of the rou- tine business of the government. Weo are now at the close of the current fiscal year, and this is an opportune time to take stock of what has been accomplished this year. On January 29, 1923, the date of our last meeting, we faced an apparent deficit of $92400,000 in expenditures over receipts for the current fiscal year, 1923. The fore- cast today is that we will end the fiscal vear with'a balance of ordinary receipts over expendi- tures of approximately $200,000.- 000. This is a signal achievement. and while we have been greatly alded by unforeseen increases in ordinary receipts and reduced operations in capital funds, we could not .have reached this suc- cessful balancing of the budget with a substantial balance on the right side of the ledger without the material assistance which you have rendered. You can all polnt with pride to the showing made thia fiscal. year, as it Is due In part to your untiring and unselfish devotion to the campaign . for economy in the administration of the routine_business of the gov- ernment. You can take further pride in the fact that while we will_close this fiscal year with a surplus ;of . receipts over ndi- turés of u‘o,os.dn, Weve. han been an actusl reduction of ap- proximately $256.000,000 in the cxpenditurge of the departments tablishments engs with Inary businéss of the gov- ent . for the corresponding expenditures for the it fiscal year. We have thus to our' credit two signal aclievements ‘In our financial transactions for the cur- rént fiscal year. Valwe of Téam Work. The co-ordinating of the routine business of the government . and the development of team .work both between and within the de- partments and establishments have have been most important factors in reducing the operatnig expenses of the government. I cannot over- emphasize. the impartance of pro- moting this rapidly developing and highly beneficial team work. it is of prime neeessity if we are to reap the full benefit of the intelli- gent effort we have already made in the co-ordination of the govern- ment's business..And it should not be confined alone to the depart- ments and establishments in Wash- ington, but should be extended to the ficld activities. An admirable start in this direction has already been made by the establishment of Federal Business Assoclations. Six- ty-nine of these associations have already been formed in the larger cities embracing the officials and employes of all the government ac- tivities located in these cities. Certainly no business concern should have several activities lo- cated In one place without bring- ing_them together in contact. one with the other, so as to develop community of interest and action. These Federal assoclations meet regularly, just as we are meeting here today. and through their dis- cussion of their respective prob- Jems and requirements find ways and means for -more efficlently and economically. carrying on_the business of the government. They should be encouraged and alded Tn a few days we commence an- other fiscal year and 1 feel confi- dent that at its-close we will be able to point to even. greater achievements in our eampaign for retrenchment, economy and effi- ciency than have been accom- plished this current year. The appropriations for the coming fiscal year amount in round fig- ures to $3,706,000,000, which is $234,000,000 less than the appro- priations for the current fiscal year. As compared with the esti- mate presented to Congress, the anpropriations fér 1924 are but $7,825,000 less. than the amount asked for in the budget and the estimates = supplemental thereto. Action by Congress on the esti- mates for 1924, therefore, amount- ed to practicai ratification of the budget and the supplemental esti- mates. . This In itself shows how carefully, how painstakingly were the estimates prepared, and is a source of much gratification to the chief_ executive. It is the Arst time in many years that executive requests for .appropriations and legislative grant have been . in ractical accord. Deficit Is Faced. A revised estimate just com- pleted indicates that the ordinary receipts for 1924 will amount in round figures to $3.638.000,000 and that the expenditures, ‘including $507,000.000 for public debt reduc- tion, will total $3,668.000.000. This indicates a deficit of $30.000,000. This _deficit .must not only be wiped out, bit we must close the coming vear with a substantial balance to our credit. It is my earnest desire that the expendl tures for the coming 'year, ex cluding ,the $500,000,000 for debt reduction, be kept within $3,000,- 000,000. Your assistance is needed to accomplish this and I know that 1 can count on your loyal and unwavering support. Right here T want to leave this further word with you. The ap- propridtions madé “by Congress are’ the measure of the maximum amount of business which may be planned for the fiscal. year to which the’ appropriations . relate. They are not the measure of the minimum amount of business which may be performed.. There- fore, in planning your expendi- ture program for'the coming fiscal year and apportioning your funds under such program, you should not only carefully: guard inst any of your activities being car- ried on at a rate which would re- quire-additional appropriations for Tells of Changing Expected Deficit Into Surplus. WANTS TO CONTINUE ECONOMIES IN 1924 Gen. Lord Explains Work- ing of Budget to U. S. Business Heads. Proclaiming a $200,000,000 surplus for the federal fiscal year, 1923, end- ing June 30, pointing to a cut in ex- penditures over the previous year of more than a quarter of a billion dol- lars, and sounding the “efficiency- with-economy” battlecry of his bud- get bureau, President Harding today called upon the business organiza- tion of the government in session at Memorial Continental Hall to slash sharply at government expenditures for the next two years. But he pre- dicted significantly that “The day will come when we will deal with increases.” The President made no mention ef tax reduction. He announced a pre- spective deficit of §30,000,000, accord- ing to present estimates, for the year ending June 30, 1924, instead of a previously anticipated surplus, but said he confidently expected not only | that the deficit would be wiped out, i but that expenditures would be cut by more than half a billion, and “be kept within $3,000,000,000." He fur- ther added. “I expect you all to ef- fect some savings from your appro- priations for the coming fiscal year.” Surplus Obtained. The resuits of showed a prospective 000,000, which was 1 200,000,000 surplus. ! For 1924, as set forth by President Harding and Director Lord of the bu- reau of the budget, who addressed the meeting at length, the latest re- vised estimates indicate total re- celpts will amount to $3,638.484.453 and ‘expenditures $3,668,534.911, mak- ing the prospective deficit $30,044. 528, as against the estimate in the, December 4 budget of a surplus of $180,000,000. For 1925, the President said, he ex- pected the estimated expenditures to meet the reduction in and the inter- est on the public debt, and. “exclus sive of the amount required for the Post Office Department, not to be excess of $1,700.000,000. To reach th amount the’ estimates for 1925 must be $126,000,000 less than the appro- priations for 1924, Proposed Reductions, Thus, broadly speaking. the gigese tic reductions effect¢d, and expected to be effected in government expen- dityres for three years, are as fol- lows. 1923, $256,000,000; less than 1922; 1924, $234,000,000 less than 1923; 1825, $126.000,000 less than 1924. The President's prediction concern- ing “increase” instead of “retrenci- ment” of expenditures came toward | the conclusion of his address, and was considered slgnificant, revealing that the administration ~believes that some time it will come to the turn in the road, when it will no longer be able to “reduce.” 1 can understand,” said the Presi- dent. in this connection, “how the constant call for reductions somewhat tries your patience. But a day will come “when we must deal with in- creases, because there must be ex- panding _activities and attending | growth of cost in the government of ia growing nation. Our big problem is to find the irreducible minimum {upon which we may consistently en- large. [ Succesnes of Years. | The operations of the present now drawing to a close, the President said, showed “two signal achleve- ments'—the transfer of the estimated | deficit into a surplus, and “an actual reduction of approximately $256,000.- 000 in the expenditures of the depart- ments and establishments engaged with the ordinary business of the Bovernment from the corresponding Sxpenditures for the last fiscal year. The elimination of a deficit and creation of & surplus during the pres- ent year, it was explained by Presi- dent Harding and Gen. Lord, were due to several factors, including the un- foreseen increases in receipts, reduced operations in capital funds, the co- ordination of routine business of the government and development of team- work everywhere, Customs receipts Tor the year are now expected to show a $200,000,000 increase over earlier estimates, whila the increase in internal revenue collections will be about $300,000,000. Estimate of Deficit. The previously anticipated deficit for the present .year. which was turned into surplus, had varied ac- cording to estimates at different times from $823,000.000 last July to $80.- (Continued on Page 2, Column 2.) BRITISH CAPTURE . TURKISH GUN CARGO the present year deficit of $823.- turned into a i Thrace, Seized in Sea of - Marmora. By the Associated Press. CONSTANTINOPLE. June 18.—The British destroyer Splendid has seized in the Sea of Marmora a Turkish transport carrying a cargo of guns trom Thrace. The capture is the result of plans of the British authorities who had received Information that the Turks were endeavoring to remove from Thrace guns and troops clandestinely sent there in violation of the Mudania afmistice “when the resumption ef hostilities with Greece was threat- | l'runport With Munitions From he struck a boy with a m““h.mlcu"“ ‘(Continued on Page 2, Columa 7.) . many years. nruk bis sxam diatels, (Continued on Page ‘z. Column 3.) eacd. iy ¢ 4 poiat. § o (Continued on rage 2, Column 7.)