Evening Star Newspaper, October 23, 1923, Page 1

WEATHER.” ™ Rain tonight and tomorrow; little change in temperature. Temperature for twenty-four hours “From Press to Home Within the Hour” The Star is deliversd every evening and ended at 2 p.m. today: at 3 p.m. vesterday. Lo 6:30 a.m. today. Full report on page % Clasing N. Y; Stocks and Bonds, Page 24 No. 29009, e Highest, 67, west, 44, at Enterea e second-ciass matter D C. ¢h ¢ Foeni WITH SUNDAY 'MORNING EDITION Star. WASHINGTON, D. C., TUESDAY, OCTOBER 23, 1923 -THIRTY-FOUR PAGES, SEPARATISTS ARE OUSTED FROM 3 RHINE TOWNS; FIGHT REDS IN HAMBURG Severe Beatings Given Revolt Followers. WIESBADENHELD! BY REPUBLICANS Seat of Uprising at| Aix-la-Chapelle Is Lost. By the Associated Press. The Rhineland republican move- snent was extended in some quarters of the occupied area today, . but scemed to be receding in the dis- tricts first affected. Berlin main- tains that the movement has been generally defeated. The most important new accession of the separatists was Duisburg, in the Ruhr, where, according to a Bel- gian official message, the republic was proclaimed early today and the public buildings occupied. Dorten Joins Revolt. Dr. Hans A. Dorten, leader of the previous separatist movement, seems 1o have thrown in his lot with the proponents of the present venture, as. his followers are reported to have hoisted the republican colors on the government buildings at Wiesbaden, lis home town, where ten persons were wounded in subsequent rioting. On the other hand. Berlin dispatches report the expulsion of the repub- Jicans from Aix-la-Chapelle, where the present republican movement saw its inception early Sunday. The for- mer regime is declared to have re- gained complete mastery there and also at Muenchen-Gladbach, where the separatists had seized control. Hope to Take Coblenz. Coblenz, which the republicans plan to make their capital, was still in the hands of the old officials this forenoon, but the separatists were said to be ready to seize it before the day was over and expected no opposition. There are conflicting reports regard ing the city of Boon, where the re- publicans were reported.to have seized the government offices.” THE Tatest Berlin advices, however, declared the separatists had been defeated there. Treves, Mayence and all_the cities in the Ruhr area, except Duisburg are apparently still in_the hands of the regular officials. Overnight develop- ments In the Bavarian situation were neglible. Bavaria Not Curbed. The dEgressive attitude of Dr. Von Kahr, the Bavarlan dictator, and the support given him against Berlin by Gen. von Lossow, commander of the! Bavarian Reichswehr, has made the Bavarian authorities ‘masters of the situation and loft the central govern- ment apparently helpless for the mo- ment to curb such independent action #s Bavaria may wish to take. It is insisted in Munich, however, that Bavaria is not considering se- cession from the federation and that the differences are solely with the present Berlin government. Mean- while the reichsrat, or council of the reich, has been summoned to meet to- morrow to discuss the whole Bavarian situation. Food disorders are continuing in the interior of Germany. The most se- rious development now is at Ham- burg, where rioters early today storm- ed several police stations and retaln- ed them for several hours, police re- inforcements recapturing them. There was plundering of food shops and other disorders. The turbulence had not been entirely subdued at the lat- est advices. THREE TOWNS RETAKEN. Separatists Severely Beaten in Aix la Chapelle. By the Associated Press. BERLIN, October 23.—Reports from varfous points in the Rhineland this afternoon indicate the separatists have been generally defeated, espe- clally at Aix-la-Chapelle, Muenchen- Gladbach and Bonne. At Alx-la-Chapelle they were se- verely beaten up by the trade union-, ssts and then ejected from the public buildings which they had been hold- ing since midnight Saturday. Wiesbnden Is Taken. The colors of the Rhineland repub- lic were hoisted during the night on the German government building at Wiesbaden by a band of the follow- | ers of Dr. Hans A. Dorten, leader of | the previous Rhineland- republic snovement, whose home is in Wies- baden, a dispatch from that states, The Wiesbaden police were dis- armed and locked up in their bar- racks. A crowd which gathered in front of the government headquarters was sired on by the secessionists, who wounded ten persons, the message ndds. A general strike was proclaim- cd'by the trades unions. Cabinet Holds Session. Offictals of the federal government will leave for the occupled area shortly, for the purpose of conferring with the Rhineland leaders. The situation in the Rhineland was discussed by the cabinet last night, but no definite action was voted, as the government still belleves 'the Rhineland populace will succeed In defeating the plans of the secession- ists. A_telegram from a German source ot Bonn says the French gendarmes are being held in readiness to appre- fiend whoever first uses firearms in any disturbance that may arise from the separatist movement. Firing Is Banned. § It is emphasized in French quar- ters that the separatists do not use weapons, and a French army order nas been issued to the effect that the pecessionists must not be fired upon. As a result the German police are said to be almost impotent. Ministerial Director Schubert, re- piaolng the forelgn minister, who is bsent, called on the French embassy and informed the ambassador, M. de Margerie, that the German govern- inent had learned that at the report @' the abproach of the separatists the (Continued on Page 2, Column 4.) i | city | British Will Prevent Disorders in Cologne In Separatist Moves By the Associated Prese LONDON, October 23.—-If the German weaparatist movement extends to Cologme, which i the bridgehead of the British Rhineland army, Great Britaln will preserve an attitude of re- serve, but will take every mean- ure to maintain order, prevent bloodshed und. insure the con- tinuance of the prewent local government, it was stated here today. News received nt the British foreign office today from the Rhenish aren was to the effect t the secessionist movement was lacking in dtvection and co- hesiveness., The view prevalls here that the present disaffec- tlon in Alx-la-Chapelle and other Rhineland cities will col- lapse at the slightest gesture of firmness from the French or Belginn troops. DEVIAND GERNIN CABINET RESIGN Nationalists Believe Prestige of Reich and Morale of Ruhr Are Menaced. By the Assoclated Press, BERLIN, October 23.—With the German natlonalists demanding the resignation of the Stresemann gov- ernment the cabinet today discussed events in the Rhineland. Official opin- fon Is that the success of the sepa- ratist movement in several Rhenish towns and cities has seriously af- fected not only the morale of the Ruhr population, but also the pres- tige of the reich. An order has been issued prohibit- ing display of the red flag. In order to meet the dffficulties en- sulng from the rise in dollar exchange and the shortage of commodities, the government today Issued two new de- crees. be carried on with forelgn currencies as the unit of exchange, while the #écond Eompels traders to sell goods regularly for payment in German reichsmarks, , Disobedience of the latter decree will 8 punished severely. The gov- ernment also informed the public that it was striving to the utmost to effect the . introduction of a stable currency. The bakeshops again yesterda: ket, stalls in w been evacuated. Strike Is Threatened. Dr. Schacht, managing director of the Darmstadter Bank, sald today that representatives of the Berlin were plundered The covered mar- ich were sacked, has workingmen had demanded payment | of wages In stable currency within three days; otherwise a general strike would be proclaimed. Dr. Schacht added that he considered there was serious danger of such a strike. It costs five and a half billion marks to buy a loaf of bread and the food situation is continuing to give rise to numerous small demonstrations and occasionally a larger outbreak. The police were summoned last even- ing to forty places where disturb- ances were occurring, but quickly re- stored order. Scenes approaching a panic took place on the bourse vesterday and at one time there was Some question of closing the bourse. The tragic politi- cal situation sent the dollar up to forty-seven billlon marks, after the official rates had been quoted, and all the possessors of large quantities of paper marks tried their utmost to rid, themselves of them, while the holders of securities refused to sell for paper marks. “Billions” Displace “Millions.” With the rise of the dollar food prices reaching fantastic heights and the word “millfons” gradually disappearing, as scarcely anything can be purchased under .billions, many | of the stallholders in the-public mar- kets preferred not to open for fear of being plundered, whilé’ others anxiously sold their goods from be- hind the protection of iron shutters. Butter was disposed of in limited quantities at ten billion marks per pound. With Dr. von Kahr, the military dictator, and Gen. von Lossow, com- mander-in-chief of the Bavarian reichswehr, completely masters of the situation in Bavaria the German government, for the moment, has been forced by the Munich insur- gents on the defensive. Its only temporary recourse has been an ap- peal to the nation and an_indictment (Continued on Page 2, Column 6.) The first authorizes trade to| Police Stations Are Stormed by Rioters. SOME RETAKEN AFTER BATTLE Many Women With Communists in Attack. By the Associated Press. BERLIN, October 23.—Disorders which started in Hamburg this morning were continuing this after- noon. Popular discontent with food prices caused the trouble, it is stated. Some police stations were stormed and some of the policemen were dis- armed, but police reinforcements re- captured the stations. A large num- ber of food shops were plundered. A dispatch to the Zeitung am Mittag from Hamburg reports that many women were among the communists who stormed and captured Several of the policestations. . Firing Is Heavy. Shortly after 3 o'clock, when the rioting began, the police were rein- forced, and by heavy firing had recap- tured most of the station by 8 a.m., but the shooting still continued. There were no detalls avallable as to casualties, the message added. The rioters stopped the running of the tramears and the tubes, and destroyed several lorries which were distributing newspapers. A later dlspatch from the Central | News correspondent says the situa- | tion s “very serious.” The commu- nists and strikers, he reports, caused considerable damage to the Ham- burg-Lubeck raillway, tearing up the rafls and felling seventy trees across the right of way to obstruct traffic. REDS HOLDING OUT. | \ { London He?s All But Three Polic Stations Taken. By the Associated Press, LONDON, October 23.—Bands of communists made concerted attacks fon the police stations of Hamburg today, says the Berlin corespondent of the Central News. The communists occupied all except three of the sta- tions, which, at the time the dispatch was filed (about noon), were still hold- ing out. Strikes have been proclaimed in the Vulkan, Jansen and Schulinski dockyards in Hamburg, the corre- spondent asserts.. The city authori- tics are distributing food to the starving working people. OPEN TANGIER DOOR U.5. WARNS PARLEY Note to Powers Carries As- sumption This Policy Will Be Put in Effect. PARIS, October 23.—The State De- partment at Washington has made |known to the powers represented in the conference oves Tangler—Great | Britain, France and Spain—that It |takes for granted that any regime adopted for Tangler will be In ac- | cordance with tlie decisions of the | Algeciras conference as respects thy open door. The department’s view was com- municated in a sort of informal memorandum which was handed. to the powers Interested. Views have been exchanged be- | tween certain of the European coun- |tries other than the so-called Med- iterranean powers, as to whether they ought to be represented at the Paris conference on Tangier. The attitude of France remains that tho | question _is" one concerning Great Britain, France and Spain only. | Circulation . ... .. Advertising Columns Number of Pages. . . Including Graphic tracted to The Sunday Wasl\ington' reads The the exception? A;l Washington Reads The Sunday Star Each week several hundred new readers are at- 7,314 have been added. Nearly everybody in Sunday, October 21, 1923 ..97,795 465 108 and Comic Sections. Star. Since a year ago Sunday Star. Are you | 4 SURPLUS QUESTION NO MORE DISTURBS FISCAL RELATIONS Controller General Decides, Joint Committee Assenting, That Surplus “on Books of Treasury” Exists. APPROPRIATION, NOT LEGISLATION, NEEDED Congress 'in Appropriating May Raise or Lower Surplus by Moral Credits of Either Party. Editorial Correspondence of The Star. THEODORE W. NOYES. II. Another burden imposed by the new law upon the District is that of accumulating a surplus which will put it upon a so-called pay-as-you-go basis in 1927. Congress determines thit after 1927 the nation shall no longer (as under the act of 1878) ad- vance money for District uses in the period of the current year before cur- rent tax collections are actually made, and that by 1927 the District shall have on hand a tax surplus which will enable it to meet its share of current expenses without borrowing even for a few months from Uncle Sam or anybody. The amount of new surplus, if any, which the taxpayers of today must ac- cumulate for the benefit of the taxpay- ers of 1927 to put the District of that year on a “pay-as-you-go” basis is obviously affected by authoritative decision of the aniount of District surplus already accumulated in the Treasury and available for this or any other District use. The law of 1922, in erder to dispose of all fiscal issues, provided for the determination by a Jjoint congres- slonal committee of the surplus in the Treasury for the benefit of the District and of any equitable credits either in favor of the nation or Capital which would alter the figures of Treasury surplus to the District's credit, if moral as well as legal in debtedness of either party to the other were to enter into the calcula- tion. Surplus No Longer Bar to Peace. This joint committee has performed its task and has so decided the essential issues submitted to it that Congress may, If it will, treat the fact of a District surplus as definitely estab- lished by certificate of _the con- er ral and -the. amount. of that surplis now in the naticnal Treasury, available for appropriation at the pleasure of Congress, as ap- proximately fixed, leaving only to be determined by Congress at its leisure the net District surplus after moral indebtedness since 1874, either in favor of the United States or of the District, has been subtracted or added. Thus the surplus issue as a factor the fiscal controversy & the equitable compro- nt of all fincal insues ger exints to prohibit the proe mation by Congress of a wholesome nd beneficial fixc: in the re- lations of nation and Capital. Analysis of Joint Committee's Report. The joint surplus committee was to “ascertain and report what surplus, if any, the District of Columbia has to its credit on the books of the Treas- ury of the United States which has been acquired from taxation or from licenses.” It was to “Inquire into all matters pertaining to the fiscal relations be- tween the District of Columbla and the United States since July 1, 1874.” It was to “ascertain and report the United States and by the District of Columbla, respectively,” on speci- fied and limited lines of National Capital maintenance and upbullding. It was to find whether any money is due, either legally or mor- ally, from the United States to District of Columbia to the United States, and “In the event any money may be, or at any time has been by Congress or otherwise, either legally or morally, from the one to the other on account of loans, advancements or improvements made, upon which interest has not been paid as have been or may be found due from one to the other, shall be con- sidered as bearing interest at the rate of 3 per cent per annum from the time when the principal should either legally or morally have been paid until actually paid. Clear Intent of the Law. The recognized intent of the law is that the committee after inquiry intg the fiscal relations of District and United States since July 1, 1874, and after ascertalning the sums ex- pended by the United States and the District in specified forms of Capital { upbuilding during that period, and after determining in the light of Ithese inquiries and investigations ! what sums of money (principal and |interest) are due, either legally or morally, from one to the other of the partles, shall add to or subtract from any District surplus “on the books of the Treasury” such sums of money thus found, as equitable (mor- al) or legal credits of either the District or the United States, the final figure representing the real le- gal and moral indebtedness Trom one party to the other. . Decision of Joint Committee. The joint committee of six ‘mem- bers (with one member dissenting in specified particulars) has thus func- tioned and reported. It finds ‘on the books of the. Treasury” a .Di trict surplus of a certain amount. It deducts from that total certain ap- propriations not yet pald, chargeable against the District during the fiscal year in question. Finally it deducts another sum approximating closely the amount which will probably be charged against the fiscal.year in question, though -to be ascertained and paid .in -the succeeding fiscal yoar or years. The first figure rep- Tesents the gross District surplus “on the books of the Treasury.” The second figure represents the met Di: trict surplus of the fiscal year of‘the date of surplus ascertainment. The thira figure represents the met Dis- trict surplus of the fiscal year after all possible or probable deductions chargeable against that year have been made, even though not actually i | what sums have been-expended by | the District of Columbla or from the ' found due, | by either to the other, then such sums ! NORTHEAST STORM SWEEPS SEABOARD Rain to Continue Here—Nor- folk Streets Flooded. Drought End Hailed. A roaring northeaster is ripping its | way up the Atlantic seaboard today | from Cape Hatteras to Nova Scotla and at least twenty-four hours more of rain are in store for Washington as | a result, the weather bureau an- nounced this afternoon. Although such storms are usually accompanied by hemvy damage to shipping and small ports along the coast, today’s blow comes as a salva- tion to a drought-stricken area that is bounded by Ohio on the west, the | Canadian border on the morth and ®outhern Pennsylvania to the south, Forecaster Mitchell said. 8o severe has been the drought for the. past month that wells and streams have dried up in many sec- tions and _the farmers have had to resort to hauling water from places far distant from their homes. In some cities water is almost on a ration basis, the forecaster sald. The present storm originated in tropical waters and has not vet be. gun to spend its force. Its full ef- fect will not be felt here before,to- night, he said, although the winds in this section will be comparatively light. Gale-like winds and tremen- dous seas, however, are battering the entire Atlantic seaboard. NORFOLK STREETS FLOODED. | Heavy Wind Causes Damage, Ship- ping Tied Up. fir the Assoclated Press. NORFOLK, Va. October 23.—A | | heavy northeast gale that has been {lashing the Virginia coast for the| {last two days, today continued at a fifty-mile clip, causing heavy damage | and forcing shipping, not already at sea, to remain in port. The Cape! Charles lightship has been blown {from her moorings and this morning | the principal business streets of this city were a foot under water at high tide. The wind reached its highest velog- lity last night, when the station at | Cape Henry = reported the gauge | | showed fifty-six miles an hour. ‘ihe wind forced the tide into the Eliza- beth river Into the city and office workers were carrled to work in automobiles and in Some instances had to wade. Street car service in the business section was suspended. SNOWING IN SOUTH. 1 | By the Associated Press JOHNSON CITY, Tenn., October 23. —The first snow of the Season was rocorded here this morning, when in- termittent flurries were in evidence | for several hours, and before noon the snow was beginning to lie on the grount “on the books of the Treasury” for the fiscal year of the date of sur- plus ascertainment. Controller General Certifies Surplus. The report by %the committee of these figures. answers clearly, fully and conclusively the question of “what _surplus, if any, the District of Columbia has’ to its credit om the hooks of the Treasury of the United | States.” All of the evidence, includ- | ing that of the office of the controller general of the United States and of the Treasury Department officials, sustains this finding. There is no room for dissent from it; and mo formal dissent has apparently been made. So far as the books of the Treasury are concermied, the District surplus 18.not a myth, but a concrete fact, raising a distinct obligation. Net Moral Indebtedness. The committee also labored aili- gently to ascertain whether there were any equitabld or legal credits, either @f the United States or of the District,” arising since July 1, 1874, which should be subtracted from or added to the District surplus to ascer- tain the net legal and moral indebted- ness of one party to the other. The committee considered the au- dits_made by authority of Congress of District accounts from July 1, 1874, to July 1, 1911, and through its own accountants it ‘audited the District's accounts sinee that date. The com- mittee construed the law creating it, aided by the authorized representa- tive of the Department of Justice, and applied it to the facts ascertained by its accountants or testified to by the representatives of the government and of the District who appeared. be- fore it. Specific Surplus Findings. The committee = reported. that ‘it EAKING .UP THE OLD HO Squirrel Puts Out All Capital Lights' In Hunt for Nuts A gray squirrel, looking for nuts, pursued his quest into the Capitol today with far-reaching results. In the basement, where.a dynamo works constantly to supply light and power to the entire Capitol group of buildings, he became en- tangled in a delicate electric fuse which ended his hunt forever. In consequence, several miles of cor- ridors and m 1y inside rooms were thrown into ‘arkness, while in the Congressional Library and the of- fices of senators and representa- tives work had to stop or else go forward in the gray light of a rainy fall day. Two Senate com- mittees, groped dismally in a semi-darkness. After a search of half hour elec- tricians finally found the disabled fuse with the lifeless body of the little squirrel beside it ROTARY AID-OPENS FIVE PLAYGROUNDS Club’s Donation of $1,053 Used to Equip Recreation Centers for Children. Five additional playgrounds will be thrown open to the children of ‘Washington this winter through a donation of $1,053 from the Rotary Club, Commissioner Oyster announc- { ed today. Following Commissioner Oyster's announcement, Mrs. Susie Root Rhodes, supervisor of playgrounds, stated that the following school yards had been selected: ' Cook, 17th street and Columbia road; Johnson-Powell, Lamont street and Hyatt place; J¥fferson, 6th and D streets southwest; Briggs, 22nd and E streets northwest, and Giddings, 3a_and G streets southeast. The gates of these yards will be opened for playground purposes at 3 o'clock beginning today and kept open as long as the funds last. In responding to the Rotary Club's contribution, Mrs. Rhodes expressed the hope that the donation would help to impress upon Congress the necessitp for continuing to appro- priate funds for the operation of school yards as fegular playgrounds. “I thank the Rotary Club person- ally and for the children of the Dis- trict_who will benefit from this gift, and whose school yards would other- wise be closed and the apparatus locked,” said Mrs. Rhodes. “The joy that this will bring to the little peo- ple_cannot be measured. Commissioner Oyster also joined in an expression of appreciation for the generosity of the Rotarian Treasury; and that it found equitable or legal credits of the District against the United States of $665.46 to be added to that surplus. It reported that after thesé subtractions and ad- ditions had been made there remained a net District surplus of $4,438,154.92, representing the amount in which the United States was legally and moral- Iy indebted to the District. These findings are sapported by all three Senate representatives on the joint committee and by two. of the three representatives of the House. Congress took no action upon the committee’'s report concerning the equitable subtractions from or addi tions tc be madg to the District’s tréasury surplus 8 cause It to repre. sent moral as well as legal indebted- ness. 1t is left open in the future for all the claims of such equitable credits, whether in favor of the'United States or of the District, to be pressed anew. Gratitude of District. But the District is gratefully ap- preciative that the tribunal created by Congress to examine into the Dis- trict’s treasury surplus and the moral | and legal indebtedness of one party to the other finds that the District has a_comcrete tremsury surplus of $4,671,196.97 and that after consider- ing fiscal relations since July 1, 1874, the United States is morally as well as legally indebted to the District in the sum of $4,438,154.92. Inaction by Congress upon the re- rt affects only the equitable sub-! 01 Practions or additions to Bo made from or to the District's treasury surplus. ! Proofs of Surplus. The existence of the District's treasury surplus as a concrete fact raising a distinct obligation has been proved by the Treasury officials and the officials representing the District, and as been recognized by the ac- deducted until the succeeding fiscal | found equitable or legal credits of the | counting officials of the committee year or years. The third or last figure represents, therefore, the ab- solute mlnlmm@! District surplus * United Stat 33,707.51 to be subtracted from the tificate of_the controlier general 2. %il!fll:l surplus on the books of the against the District of ) and by the committee itself. The cer- , the highest ority in respect to such Sunday morning to Washington homes at 60 cents and service w month Telephone Main 5000 ill start immediately Yesterday’s Net Circulation, 92,553. TWO CENTS. ME. CLUBS WILL FORM NEW FORD PARTY | Michigan Organizations to Is- sue National Call for December 12, 13, 14. By the Associated Press. DETROIT, Mich., October 23.—For- mation of a new national political party with Henry Ford as its stand- ard bearer will be undertaken at a ! national organization conference of |all Ford-for-President clubs to be held here December 12, 13 and 14. The call for the organization con- ‘fvrnncc was decided upon at a meet- ing last night of several Michigan Ford clubs, The conference, accord- | ing to leaders of the movement, prob- sbly will name a date and place for holding & hominating convention next spring. The conference call will go out within a few days, it was stated by Willlam Kronberg, secretary of the Dearborn Ford-for-President Club. “It was decided upon,” he said, “only after insistent demand from Ford clubs throughout the country.” The Dearborn club, been inactive for some time owing to its inability to obtain from Henry Ford any statement as to whether or { not he would accept nomination by a party the clubs might organize. We virtually were forced into actio Kronberg said, “many of the clubs in other states threatening to proceed with a convention call if we did not’ do_so. Mr. Kronberg estimated the num- ber of Ford clubs now in existence at | between 300 and 400, and added that xhe was advised the organization con- {ference would attract at least 3,000 delegates and visitors. Sessions of { the organization conference, he said, { would be held in the audiforium at i Dearborn, home of Henry Ford. { Last night's meeting, at which about a score of delegates were pres» ent, was presided over by Judge Ed ward Jeffries of the recorder's court of Detroit. Among those present be- sides Judge Jeffries and Mr. Kronberg were Clyde Ford, a cousin of the De- troit manufacturer; Edward Fisher, president of the village of Dearborn: | Rev. William Dawe, president of the Dearborn Ford Club, and Henry Ruduck, treasurer of Dearborn town- ship. ————— DENBY ON CRUTCHES. Meeting After Operation. cabinet meeting on ‘crutches. He re- turned to Washington yesterday after of his left foot, and expects to be back within a few da; of the Treasury, July 30, 1822, to the credit of the District of $7,574,416, which is reduced to_ the net surplus already stated by subtraction of out- standing obligations. The character and amount of offsets to this treasury surplus are left to the future for final determination by Con- gress, favorably affected, as far as the District is concerned, by the com- mittee's report negativing alleged an: cient resurrected debts. But the ex- istence of the specific treasury sur- ; plus is declared by the controller gen- eral and reported by the committee as an existing, undenlable fact, need- |ing no legislation to confirm 1t. Of course, there {5 no practical use of this surplus, either for the govern- ment or for the District, except by | congressional appropriation; but the | Treasury Department and the congres- sional committee report that this sur- ) plus is there available for appropria- tion by Congress whenever the na- | tional "legislature wishes to appro- i priate. 3 No Further Legislation Needed, Apparently from the District's point of view there is no need to seek fur- ther surplus, legislation from Con- { aress, except ‘that which appropriates the surplus with a corresponding con- tribution by the nation to meet Dis- trict needs. The controller general has already- certified that the surplus money is in the Treasury to the cred- it of the District, and it thus auto- matically becomes available for ap- propriation by Congress to District use Washington rejolces that it has be- come unnecessary to reopen the sur. lus {sxue on its merits, and will ap- ply ltwelf vigorously with some de f confidence to the tagk of convineing Congress of the justice of | approprinting quickly for District uses (with a_corresponding contribu- tion from Unele Sam) the money which the controller general certifies to be in the Treasury to the credit of the District. he said, had| Mr. | Navy Secretary Attends Cabinet| Secretary, Denby attended today's | an operation in New York on a tendon | at his desk in the Navy Department | matters, shows a balance on the books | ASSERTS 1., PAID 964000 FOR UNUSED PLAN FOR HOSPITAL Veterans’ Bureau Head Tells of Deal Under Forbes Ad- ministration. UNKNOWN ARCHITECT SAID TO HAVE RECEIVED MONEY Senate Committee Continues Hear- ing—Hines Explains Policies Now Used. The special Senate committee inves tigating the Veterans' Bureau was told today by Director Hines that on one occasion the bureau paid $64,000 for architects’ plans for a hospital at Liver- more, Calif, and then found that the drawings submitted were unsuitable. The director sald the payment was made before he came into office and that the recipient, Matthew O'Brien of Los Angeles, had filed a claim for an additional $13,000, which was disal- {lowed. Gen. Hines added that O'Brien {had come to Washington and had re- ceived standard plans for public butld- ings from the War and Treasury de- partments, and that these plans were followed closely in the drawings he later submitted for Livermore. The director testified that he filed a claim against Mr. O'Brien for a re- fund of $5,000 on the original pay ment and that the architect t placed the matter in the hands of his attorney, and it still Is unsettled. This was the only instance, he said, where an architect outside of the govern- ment service had been employed to draw plans for government hospitals John F. O'Ryan, counsel for the committee, said his information had been that O'Brien never previously prepared plans for any large build- ings, but merely for some moving picture houses in San Francisco. Forbes Then Director. The payment to the Los Angtles architect, Gen. Hines said, took place while Charles R. Forbes still was director of the bureau. The general then turned to his own administra- |tion of bureau affairs, and Gen. | O'Ryan remarked to the committee | that there had been the closest co- | operation between himself and Gen. Hines throughout the investigation, | which he has made as counsel. Questioned as to whether any em ployes of the bureau received govern- ment compensation for vocational training, Gen. Hines said that at one time 473 employes were drawing vo- cational training pay, but that this practice had been discontinued, as he regarded it as contrary to the law and intent of Congress. Charges Polities. Replying to further questions of { committee members the bureau direc- tor said there was evidence that the bureau in the past had been handicaped by political pressure, especially from | members of Congress, and particularly with respect to the location of voca- tional schools and hospitals. He de- { clared, however, that since he became Fead of the bureau he had operated on { D the theory that when senators and representatives wrote to the bureau regarding cases they desired simply to |ascertain the facts, and were not seek- | ing to disrupt the orderly consideration of claims. Gen. Hines testifled that of the total of 183,000 disability claims allowed, only 25 per cent resulted from wounds in action. The remaining 75 per cent | grew out of diseases and injuries | suffered outside of the battle zone. | Gen. O'Ryan told the committee that a number of doctors will testify that in many cases the disease for which disability claims have been allowed | cannot properly be traceable to mil- | ttary service. TEAPOT OIL LEASE DEFENDED BY FALL | Maintains Chief Reason Was * Danger of Drainage by Nearby Wells. 1 | By the Associated Press. Former Secretary Fall of the ln- | terior Department appeared today be- fore the Senate public lands com- { mittee in its investigation of the lease of the Teapot Dome, Wyo., na- val ofl reserve last year to the Sin- clair interests. The former Secre- tary was largely responsible for the lease, made jointly with Secretary Denby of the Navy Department. The chlef reasons advanced by Mr. Fall and other administration offi- { clals for granting the lease—the dan- | ger of drainage from adjacent wells —were in general supported by re- ports on the ipresent state of the property submitted. to the committee at the opening of the investigation yesterday by two expert geologists. Explaining to the committee today why he had not asked for competi- tive bids for Teapot Dome, Mr. Fall said he could get a more advantage- ous settlement for the government by closing the deal privately. “There was such a congestion of oil in that field at that time,” sald the former secretary, “that-the royal- ty obtained by the government would have been very low. The result of the arrangement I made was to glvc the government royaltles twice as large as otherwise could have been obtained. ¢ ‘I_know there will be a dlfference in the minds of lawyvers as to my authority, but I did not feel con- strained under thé law to call for bids.” In reply to questioning Mr. Fal! sald the Mid-West Company, exten- sively engaged in the adjoining Salt Creek region before the Sinclair lease was_made, had directly applied for the Teapot Dome lease, but that the Sinclair offer appeared more advan- tageous. Asked by Senator Walsh, democrat, Montana, whether Presi- dent Harding’s transfer of the Tea- pot Dome reserve from the Navy to the Interior Department was not in violation of the act of Congress plac- ing the naval reserve under the Navy Department, Mr. Fall replied that ho thought not. “The President’s authority as Chlet Executive,” he sald, “is guperior to his duties as an adminisfrative offi- cer. The President can use the ma- chinery at his disposal in the execu- tive departments as he pleases. The Interfor Department had the equip- ment to handle the reserves. It had gu‘%egpens and the President used