Evening Star Newspaper, March 19, 1924, Page 1

WEATHER. Fair tonight, temperature near Ireezing: tomorrow increasing cloudi- followed by rain and probably 2 r_the 24 hours Highest, 60, at lowest, 37, at 7 “From Press to Home Within the Hour” _The Star's carrier system covers every city block and the regular edition is ded at 2 p.m. tod: * delivered to Washington homes as fast 30 p.m. veste day a.m. today. Full report on Closing N. Y. Stocks and Bonds, Page 26 page 2, No. 29,177. Entered as second-class matter post office Washington, D.. C. RECOUNTS G0SSIP OF “OIL DEAL” WITH 6. 0.7 CANDIDATE Ohioan Tells 0il Probers Story Based on “Talk” at 1920 Convention. DARDEN TELLS OF EFFORT HERE TO PROTECT CLAIM Conferred With Ifarding, Fall and Daungherty With Ill Success, He Declares. Gossip about an “oil deal” at the republican national convention in 1920, and a story about a venture in Teapot Dome that collided with that of Harry F. Sinclair, made up today’s book of testimony in the oil inquiry. The tale about the Chicago con- | vention was brought before the oil committee by Tiffin Gilmore, deputy secretary of state of Ohio, who work- edin1 it was “common talk” that there "iad been a deal “between oil operators and the possible nominee”; that he understood an offer was made to Wood and was refused; but that he knew the names of none ot the men concerned and had no “firs story. Darden Tells of Claims. James G. Darden, friend of Presi- t Harding and a man of farflung interests, testified about the Teapot venture in which he himself was in- terested, along with John F. Campion and Robert G. Taylor. He said they had made claim to 160 acres, without & fence or a “scratch” upon it; had been promised some sort of an ad- Justment by Secretary Payne in the Wilson administration; but never had apiied for a lease and eventually had been ejected by Marines after the re- serve wasp leased to Sinelair. Darden ~declared he had learned through “gossip” two months in ad Yance that Sinclair was to get th lease. An arrangement was made with the Mutual Oil Company to develop the ciaum, and Darden's law. yer, Robert S. Bright, told the com- Iittee tnat the deveiopment company began work after it became known that the Sinclair lease had been con- Bu; ted. Planned Legal Contest. Their hope was, he said, to contest the legality of the Sinclair contract, but when Darden took the matter up with President Harding and Attorney General Daugherty he found that In- terior Secretary Fall was determined to clear the Mutual off the reserva- tion forthwith by force. The committee expects at tomor- row’s session to again question G. D. former secretary to Harry and on Friday to recail Clair himself. After its hearings were adjourned today the committee held an execu- tive meeting to_discuss the nomina- tion of Samuel Knight of San Fran- cisco to be special government coun- sel in the suit to recover two sec- tions of land in Calfornia. A poll of the committee members on his con- tion will be taken iater in the rmel A. Thompson, an Ohio repub- leader, with whom Gilmore tes- he discussed a land claim after Chicago convention, was sub- aed today by the committee. Was Wood Supporter. Called as a part of the committee's tnquiry into stories of in “eil deal in the 1920 campaign, Gilmore was acked about his connections with that campaign. He said he attended the republican national convention at Chicago in 1920 as a worker for Gen. Wood. “Wa were almost hostile camps,” Gilmore said. “Who?" asked Senatéor Walsh, the com tee investigator. We had had a bitter primary as between Senator Harding and Gen. Wood The witness added that it was car- ried over to the convention. Gilmore said he had a conference with Carmi Thompson, a Harding eupporter, on a sleeper leaving Chi- cago for Washingto He quoted Thompeon saying. ““Tiffin, we need an vou are damned right you continued. Thompson, he said, discussed with him a land claim. Asked About Land. “I asked, ‘What did vou want that land for? Is it agricultural land? " Gilmore went on. “He said it was Indian land. I asked if it was min- cral land. He said he didn't know. I asked if it was oil land, and he said it hadn't been tested. “There was a man standing nearby, and he turned and said, ‘They have o wells drilled and are getting £o0d production.’ " ‘What prompted you to make suc an inquiry of him concerning the land? wsked Senator Walsh. “The whole thing had been super- heated with charges that a deal had Dbeen consummated between the ofl op- erators and the possible nominee of the convention. That was common talk.” “Do you yourself know anything for Leonard Wood. He said | -hand in- | formation” whatever to support the ou worse than | JAPANESE SUB SINKS WITH 44 ABOARD, FOLLO Little Hope for i;scuing €rew of Undersea Craft Struqk by Warship Tatsuta, During Maneuvers. Went Down Suddenly. i { i SAZBO, Japan, March 19.—The 800- ton submarine 43 of the Japanese navy collided today with the war- ship Tatsuta during minor maneu- vers, and sank with four officers and forty men in twenty-six fathoms of water, ten miles outside Sazbo har- bor. Several hours later, the navy of- fice ascertained that while attempts at rescue were proceeding, there was DAUGHERTY REMISS INLOTTERY CHARGE GASES, SAYS TEXAN Witness Admits U. S. Had Been Prosecuting, But As- serts Under Wrong Laws. { mittee had a brief, dull, drab session today because Senator Wheeler, the committee “prosecutor,” had a_bad cold and remained at home. @ ‘Will A. Orr, former private secre- tary to Gov. Whitman of New York, !was waiting to be grilled further about the film “deals” and whisky “deals” on which he testified yester- day, but the commiftee turned aside {from Orr to hear briefly again Maco ! Stewart, a Galveston, Tex., lawyer, who complained in his testimony yes- terday that the Department of Justice had heen remiss in prosecuting lot- teries and to hear briefly also T. D. jDawkins, a Texas post office inspector. Prosecution Admitted. | Attorney General Daugherty's coun- ! sel brought out on cross-examination |that the government had been prose- |cuting the concerns Stewart com- plained of, but the witness insisted {they had not been prosecuted under ‘th lottery law, as he contended they should have been. The Attorney General's counsel an- | nounced they did not wish to cross- examine Orr and he was excused in- | definitely. { The hearing will | o'clock tomorrow morning. ; Burns and Haynes Present. {= “Newly summoned witnesses jammea !the anteroom, among them W. J. | Burns, chief of the department bureau | of investigation, and Roy A. Haynes, | prohibition director Burns first ex- | changed a smile with Gaston Means iand then walked out for a private i talk with this personage, whose de- i tective efforts have become famaus. The chairman let Orr go for a mo- | ment, and then recalled Stewart, the | Texas attorney who has brought in the complaint as to non-prosecution jof lottery operators. Mr. Howland took the witness for cross-examina- tion. ' Stewart repeated his story that various concerns adopting the name of “United Home Builders' Associa- tion,” or some such term, were really ! engaged in running lotteries. | _“These concerns tried to convince ipeople that they can come in as istockholders,” Stewart said, ilaler on borrow money at 2 or 3 per cent interest to buy a home. The con- tract they sell is so beclouded with words that the victim doesn’t see what he is doing.” Says Most Investors Lost. “lost every cent they put in,” Stewart asserted. “You said yesterday that the Indi- ana Mortgage Company, and William Stacks and a_number of people were indicted in Indiana,” Mr Howland said. He read the names. The in- dictment was for use of the mails to defraud. “This indictment- meets your ap- proval™ Attorney Howland con- cluded. “As €ar as it goes, Stewart re- turned, “but it seems to indict them in the place where there isn't the evidence to prove them guilty of run- ining a lottery and put them out of {business all over the country.” |, He agreed that “was a matter of |lawyers’ opinion.” Stewart said in his original state- ment that he sent a brief explaining his charges to the Attorney General. Mr. Howland told him in the course jof the examination that this com- munication had not been found at the | Department of Justice. He was ex- | cused, and Dawkins was called. i Conferred With Ofcials. Chairman Brookhart told him to {proceed. B. C. Baldwin, captain of i Texas Rangers and former agent of | the Department of Justice, testified | that various federal officials in Texas had tried to “blackmail” oil pro- moters, and named Dawkins as a person’ able to confirm the charges. “I conferred with ‘my superior officer about this blackmail allega- ition,” Dawkins sald. “That was | George M. Sutton, inspector _in icharge. He told 'me there was jnothing in Baldwin's belief that justified action by the Post Office D partment, that there wasn't any evi- i dence to ‘justify it.” |, He went on to explain that he had !investigated the United Home { Bullders. Henry Zweifel, United | States attorney in Texas, conferred with him in the work. | i ¢h The Daugherty investigating com-' resume at 10; “and ; About 60 per cent of the investors | WASHINGTO:; WING COLLISION little hope there would be any sur- vivors. The submarine went down sud- denly after the colliston. The 43, constructed two years ago, is the second underwater craft of the Japanese navy lost in the last seven months.* another having sunk off Kobe, last August. Sazbo is a naval port on the west coast of the Island of Kyushu, just south of the Island of Hondo, largest of the Japanese archipelago. ' GONTRACT AWARDS AND ZONING POLICY Make Full Reply to Senator King—Declare D. C. Work Let to Lowest Bidder. While assistant Attorney General Rush L. Holland continued his | “friendly investigation” into the ad- | ministration of Commissioners Cuno H. Rudolph and James F. Oyster, the Commissioners themselves, in a let- ter to Senator King of Ytah, explain- led and defended their administration {of the zoning law and the contracts ! which have been let to the National | West Company. | The letter, which was in answer to a request for information by Sen- lator King administration of the zon- ing laws and District contracts let to the three companies named, was made public by Senator King. Bids Competitive, The statement by the purchasing officer of the District, M. C. Hargrove, ex- plaining that contracts have been let to the National Blectric Supply Company, W. and Rudolph and West Company, but only as the result of competitive bid- ding. In each case where award was Mr. Hargrove said. it was because their bid was the lowest. Mr. Hargrove said that am; tice of proposwie-tor suppties bids are asked always is given: that a definite hour is set for receipt of bids, and that they are opened and publicly read. i, The Commissioners point out that { the District {s divided 'into eight building inspection districts, each of which is assigned to an assistant in- spector of buildings. The appropria- { tions do not permit of increasing the | aumber of inspectors or allowances {for transportation. However, the building operations is condu€ted and whenever a violation of zoning regu- iations is discovered the inspector of : buildings serves a notice to comply {with those regulations within ten idays. In the event of failure to obey | the notice, the matter is referred to jthe corporation consel. There are now eight zoning cases in the hands of the corporation counsel. Demand Law Be Met. The Commissioners said no permits for the erection, alteration or repair of any structure, nor for the ocou- pancy of any structure is issued un- less such cases comply with all zon- ing requirements. With regard to the suggestion that the beauty of the city is being marred by non-enforce- ment of the zoning regulation the Commissioners said: “If the beauty of the city is being marred, the cause cannot concievably be laid to zoning. Zoning pertains exclusively to private property, which comprises about 50 per cent of the area of the District, and which, until August 30, 1920, was left to develop largely as the individual owners saw fit. subject only to the usual limita- tion upon character of building ma- terials and construction and regula- tion of nuisances, “The plan of Washington until August 30, 1920, was concerned al- most entirely with public property. : Therefore, it cannot be said with rea- !son that a zoning plan—a plan of regulating the height, zone and use of all new private buildings or the alterations of old privately owned buildings, a plan of orderly growth and expansion based upon study of what has been done in the past— could, in a period of a little over! three years, mar the beauty of a city that for over a hundred vears—from 1792, when the L'Enfant plan embrac- ing only that portion of the District south of Florida avenue was approved, to 1893, when the present highw: plan extending to the District lin was adopted—struggled to confine itself to a garment too restricted to . P‘Srml! it to grow in keeping with the subsequent vast expansion and great growth of the nation. Zoning Law Antednted. ‘“What mistakes could possibly oc- cur in three years of orderly control of private property that would com- pare with those that might happen in 130 years of uncontrolled private de- velopment. The mistakes that have CITY HEADS DEFEND. { Electric Supply Company, W. P. Gal- | {liher and Brothers, and Budolph and | Commissioners transmitted a' P. Galliher and Brother . recommended to either of the three,' o s A G Commissioners said careful study of ' ¢ Foeni WITH SUNDAY MORNING EDITION AIM TO CLEAN DECK OF ALL UNDISPUTED MEASURES FORD.. House Committee Members to See Longworth on Legis- lative Program March 31. BILLS CERTAIN TO PASS WILL GET PREFERENCE Republican Leader Willing to Give Time for Uncontroversial Local Busines: House Leader Longworth will con- ! fer tomorrow morning with a com- | mittee from the Iouse District com- | mittee, consisting of Representa-ives | Fred N. Zihlman of Maryland, Florian | Lampert, Wisconsin, and Thomas L. { Blanton, Texas, on a program of { legislation for the National Capital on which a drive will be made to get action by Congress at this session. At that conference, it will be definite- Iy settled what measures will be brought up on Monday, March 31, which House Leader Longworth is willing to_allocate to the District committee for District legislation not {of a controversial nature. | The Gilbert bill for control and prevention of social disease is un- finished business and is a measure on which the District committee is unanimous, so this will probably head the list for consideration on the next District day. Several other measures over which there is no con- troversy within the District com- mittee were reported out today so as to be ready on the calendar for action. Freight Terminal Bill | The bills reported out today include |one fathered by Representative Zihl- | man, providing for additional ter- | minal facilities for freight traffic. The purpose of this bill is to_establish a reasonable switching charge on oal and other carload freght. It |has been approved by the District Commissioners and by the Interstate Commerce Commission. It was re- ported out on motion of Representa- tu Representative Zihlman was ‘inst ted to write the report. Another bill reported out is fath- ered by Representative Louis C. Cramton of Michigan, to change the name of Jewett street west of Wis- consin avenue to Cathedral avenue, it avenue. The report on this bill will be written by Representative Gasque of South Carolina. A bill introduced by Chairma Reed of the House District commit- | tee, to change the name of 37th vy Chase Circle o vora- bly reported. written by Representative Beers of | Pennsylvania. y ’ | __Representative Gibson, republican, | Vermont, was, responsible for the action of the committee in reporting out committee was agreed In order to get before the House non-controver- sial matters that coul passed. Representative Gasque, ness would be brought up on the next District day. Gilbert bill idisease as important legislation on which the committee was mous. Representative Zihlman, act- | ing chairman of the committee, said |that he would endeavor to bring up |as far as possible matters on which the committee were in accord. Rep- resentative Gasque advocated as a | general policy of the committee giv- |ing right of way to legislation on which there was no opposition within the committee. Power for Commissioners. Representative Underhill of Massa- chusetts suggested that the chairman of the District committee should be authdrized to draft a measure giving to proceed in ,such minor matters !affecting the streets and highways of the District without having to come !to Congress for specific legislation jon each project. Representative Os- he had long favored giving the Dis. {trict Commissioners wider administra- | tive authority along this line. ‘Acting Chairman Zihiman called the attention of the committee to the fact that the Senate had passed a bill !identical with the one favorably re- ported by the House District com- ! mittee for extension of the parkway system_by _the purchase of Klingle Ford, Piney Branch and Patterson :mhe tracts. Representative Gibson was being an extension of Cathedral, The report will be| the District Commissioners authority | 1 ibeen suffered, principally by British, | these measures on which the!Chinese and American merchants, democrat, | lines of revolutionary forces atta of South Carolina, asked what busi- |ing Tegucigalpa. Representative | se; i Blanton and other members of the approved here on the ground that It | icommittee spoke in support of the was unani- Z U.S. FORCE RUSHING T0 HONDURAN FIGHT Naval Party to Protect Americans at Tegucigalpa, Stormed by Rebels. A landing force of 167 sailors and nine officers from the cruiser Mil waukee, at Amapala, Honduras, is be- tive Ralph Gilbert, democrat. of Ken- |ing rushed today from that port to| Tegucigalpa, the Honduran capital, where wild disorder prevails. The landing force was asked for by American Minister Morales for the protection of the American legation and consular offices, fired upon by drunken soldiers over which the Honduran ministry has lost all n | control. Sheoting Dewn Innocent. Consular advices from Tegucigalpa also sald many inhdcent persons were being shot down and looting was rampapt. Losses estimated at $400,000 have Arrangements have been completed d be easily ,by which the American naval detach- ment would be passed through the k- State Department officials said the nding of the detachment had been vitally necessary to protect for the control of social American lives and property. WORKMAN CAUGHT IN FLYWHEEL DIES A. C. Pool Dragged In by Clothing—Head Partly Severed. i Dragged into the flywheel of a car E. Keller of Minnesota said thag|Small electric motor, A. Clifton Pool, forty-two years old, was almost in- stantly killed shortly before noon today, when part of his head was torn off by the machine. Pool was employed as a carpenter by Herman Shapiro, who is construct- ing a row of houses at Crittenden street and Sherman circle northwest. motor, a small device, barely knee high, is used to run a buzz-saw, instructed- to favorably report the a1 Senate bill, as well as the House bill | a{lodckiooorln :’h‘.:'!:’:’?loyed HEURE SoniY |in order to facilit: ate passage of the i measure. Advocates Changes. Representative Blanton showed in the proposed parkway drive in or- ider to avoid the purchase of the Klingle Ford tract and still give traf- fic an outlet through Rock Creek locked during certain hours. Representative Blanton bill, Klingle Ford lract. Lampert of Wisconsin, stood up and declared: “I for one, will meet the gentleman. from Texas on the floor and vote for this bill.” A subcommittee consisting of Rep- photographs and advocated changes | | | I H. Sheckels, living at the same ad-!new discussion. jwho examined the machine declared ' | | Dragged to Ground. ‘The carpenter's clothing became entangled in the flywheel and before he could even utter a cry, he had been dragged to the ground and his.! head fastened between the spinning wheel and the body of the motor. Virtually the entire right side of his head and face were ripped away. One_of the first to reach the man said he, was John C. Tear of 201 Channing knew the committee would report the | street northeast. but that he was prepared to bile Pool was rushed to Freedmen's meet them on the floor of the House Hospital and there pronounced dead. in opposition to the purchase of the Physicians said he had died almost Representative | instant! In Tear's automo- 1y, A_brother-in-law of Pool, Willlam dress, witnessed the accident. Those that the fiywheel was unguarded. The unfortunate workman Wwas dragged ny Star. , D. C, WEDNESDAY, MARCH 19, 1924 _THIRTY-EIGHT PAGES. & ( APPROPRIATL <" <> |CHINA CABINET REFUSES | RECOGNITION OF RUSSIA‘ Peking Reports Rejection of Tenta- | tive Agreement With Negotia- l tions Probably Ended. ! 1 ! By the Associated Press. PEKING, March 19.—The negotia- tions for recognition by China of the Russian soviet government appear| definitely to have failed. | The cabinet has refused to approve | the tentative agreement for recogni- | tion. I 'SENATE BACKS NEW ATEONSTOEK TAX i Proposal Seeks to Eliminate' Surtax and Protects - Small investor. | | Profits on stock dlvidends redeemed | in liquidation proceedings would be subject to the capital gain tax of | 12% per cent, instead of to surtax ! rates, under an amendment to the revenue bill approved today by the ! Senate. finance committee. The committee threw out the House | provision on that subject and sub-| stituted one approved by Secretary | Mellon; Chairman Smoot sald the commit- | tee believed the House provision left small stockholders in an unfair posi- tion since on liquidation of a corpora~ tion their profiis would be made sub- ject to the higher surtax rates. It was likely, he said, that large stock- | holders would be able to dispose of their stocks prior to the liquidation thus subjecting their profits to the regular cabital gain tax. Fae ENTENTE CONFERENCE NEW POINCARE PLAN: | French Premier Reported Eager to Clear Up Economic Troubles of Europe. | By the Associated Press. PARIS, March 19.—A conference of the entente nations immediately after the interallied reparation commis- sion has taken cognizance of the re- port of the Yeparation experts 15 re- garded probable in dipijmatic circles. There is the best authority fcr the supposition that Premisr Poincare is quite as anxious as Prime Minister MacDonald of Great B-itain to clear jup the reparation and other kuro- pean difficulties that are kecping the economic situation in an unsettlcd | state. The conference, it is thought, will grapple with the question of France's security as well as the reparation problem. The prospect of a settle- ment of the first of these problems before the French elections in Mav is understood to be one of the reasons for Premier Poincare's desire to meet . his British colleague ag socn as the i experts have paved ths way for a 1 CONTRACTOR ATTACKS as the papers Yesterday’s * 1 { HOUSE GROUP AGTS, OND.C.VOTE BILLS Subcommittee Appointed to | Consider Measures Propos- i | | are printed. Circulation, 102,666 TWO CENTS. COOLIDGE UNLIKELY TOVETO INSURANCE BONUS PROVISIONS Bill as Passed by House Meets Objections Raised Against Previous Measures. EXACT COSTS CERTAIN; NO INCREASE IN BUDGET Gives Able-Bodied No Money to Waste, But Will Prove Boon for Those in Need. BY DAVID LAWRENCE. President Coolidge probably wiil sign the endowment policy insurance bill just passed by the House for the benefit of soldiers and sallors who participated in the Furopean war provided the Senate does not mate- rially alter the measure. The President was opposed to a bonus bill that the government could not afford and he particularly ex- pressed his antipathy toward th | payment of funds to the able-bodie The new bill in large part takes care of the veterans when they are ap- proaching age or when they are ir acute need. It is a bill to reli possible distress and not a measure that will permit the ex-service men to fritter away the funds given them a8 argued by the opponents of a la cash outlay. Principle of Bill The principle of the ir.surance bLi is so different from previous meus- ures passed by Congress and vetoed by the Executive that Mr. Coolidge can consistently sign it. The Amer can Legion favors the bill. The total i ed for Local Representation. }i‘m to the government is slightly | more than two billion dollars, spread _ |over a period of twenty years, and In order to give careful consideration | the annual appropriations are already to the several proposals for Voting rep- | ayaitable because Congress has been resentgtion of the citizens of the Na-|aythorizing about $100,000,000 for tional Capital in Congress on nallonz!!\'or* tional training, and that fon'u-e aftairs, * T -|to an end shortly. So the existing afajrs, and what is known as the Dis- | {3, 2 “Contains the funds. the total rict delegate bill and all other meas- | cost"ia nor enmjestural s’ has her ures concerning District suffrage, a | tofore been the case, §7 per cent of subcommittes of the House District | the ex-service men will be alive to committee was appointed today. oy the benefits of the insarance, 3 ording to the ectimates of insur- This subcommittee is composed Representatives Florian Lampert. Wis- | was a controversial question, and that | that a referendum should be taken of | ance experts who have been able in % {the past to fizure out mortality consin; Rathbone, Illinois; Gibson, Vermont ; Giibert, Kentucky, and Jost. Missouri. It was on motion of Representative Lampert that the subcommittee was set up, with the understanding that all meagures regarding suffrage for the District will be given earnest considera- | j tion, and that no effort wiil be made to | mum annual rush through any legislation upon the eubject. Controversial Question. Representatives Blanton, democrat, and Underhill, republican, declared this with various measures before the com- mittee, whether or net it was the best policy for the committee to confine it- self to a constructive program which | there was a chance to get through the House at this session, rather than to bring up problems which it was known wou'd be difficu’t to reconcile even with- in the comittee. Representative Blanton proposed through the Washington Board of Trade and citizens' associations to dnd out what the residents of the National Capital really want in the way of suffrage. Representative Lampert assured the committee that there is no need for immediate haste on the suffrage proposals, but advised that all of the measures should be considered care- fully by the same subcommittee. Representative Rathbone, republi-' can, Illinois, said that it was only| right for the committee to meet the desires of 480,000 residents of the National Capital by giving them an opportunity for orgerly consideration of their wishes. Representative Rathbone raised the question whether ‘it would not be necessary to put through a constitu- tional amendment in order to give District residents voting representa- tion in national affairs. Representative Underhill of Massa- chusetts said that there were only two courses opened to the committee and Congress regarding District suf- frage, either by a constitutional amendment or by putting the District under a territorial form of govern- ment. COOLIDGE LEADS DAKOTAVOTE 21 Johnson Second, La Follette Third in Presidential In- dorsement Race. By the Associated Press. FARGO, N. D., March 19.—Returns from 358 precincts out of 2,068 in, North Dakota for republican presi- | 1= tables, and the families of those vet- erans who have died since the war will immediately get the benefit of the insurance payments. The reason why the new measure will not make a serious financial bur- den is the Introduction of the sink- ing furd. In other words, the maxi- appropriation will be $110,036,564, while the minimum out- for any one year will be $30,835.- 930. Such sums as that when set 2side annuaily grow larger and larger, because the interest on the sums in- vested constantly increases Based on Natural Law. The idea is absclutely sound, be- cause it has been demonstrated in the case of private insurance companies, who invest the premiums paid by in- dividuals, and yet the number of per- sons who die annually is not equal to the number who carry insurance. The law of probability and mortality takes care of the insurance company just as surely as it will take care of the government's sinking fund. The government will give the veteran the opportuuity that private insurance companies zive to borrow on an insi ance po’icy when in need. No loan can exceed 90 per cent of the reserve value of the loan for the current year of the certificate or 60 per cent of the face value at any time. The veteran who borrows on his insurance certificate at the bank and fails to pay the amount back to the bank will find it expensive to recover the full value of the policy when he comes to redeem it. The banks wil] be privileged to go to the Veterans' Bureau in case of default and receive the amount they have lent to the veteran with the accumulated interest, but when the veteran tries to jredeem a defaulted certificate he will have to D ¥ 6_per cent interest com- pounded annually This was arranged so0 as to discourage veterans from bor- rowing on their certi and failing to pay up. The number of defaulted certificates will not be large, according to the estimates thus far made, and the Veterans' Bureau will be able to take care of the defau'ted cases out of the sinking fund provided, Indeed, the whole plan is worked out so conservatively that the gov- ernment may find in a few years that the amount appropriated annually can be cut down, for the purpose of the fund is not to make a profit, but to take care of the needs of the veterans. Payments in Cash. The bill provides: First—The payment in cash of the adjusted service credit to ' those veterans to whom $50 or less is due. The basis of the credit is $1 per day for each day of service on this side of the Atlantic and $1.25 per day for overweas service. So few men were in the service fifty dayd or less that the sacrifice Involved was considered relatively small and the cash amounts in the aggregatd will not total very much. Second—The dependent relatives of the veterans who have died will be ! paid immediately the full amount of the insurance policy to which the veteran's length of :ervice would have @bout the facts?” dentlal indorsement give: Coolidge, | entitled him’ based, of course, on s “I cannot say that I do know any- resentatives Gibson, Vermont; Fitz- | ol uiqie pies eaw only £o be s : 13,888; Johnson, 9,999; La Follette, | S¥eRty-year paid-up =—endownment Ve Neouslit) n omcialsiof these gerald, Ohio, and 'Hammer, North | ! concerns for a conference,” he went occurred antedate soning and pertain | \by the spinning wheel. - thing first hand—I only know second hand.” ““You really know nothing of these matters except gossip on the street?” ¥ do not.” “No man who knew ever told you?”" o, sir.” Says Wood Rejected Deal. Asked by Senator Walsh, democrat, Montana, if he knew what reply Gen. Wood had made, Gilmore said: “I was told he walked up and down at his hotel and sald it was a ‘shady’ deal; that .he would have nothing to do with it, and that they would have to defeat him. ‘With that tie witness was excused, and the committee called James G. Dar- den, a man of many adventures, whose name has been interwoven with dis- closures_In both the Daugherty and Teapot Dome inquiries. Process serv- * vers had reported failure to locate him for a month, but he denied thgt he had tried to avold service of the'commit- tee's subpoena. He said he was away from home a good deal, but had seen by the newspapers that he was sought on. “At the conclusion of the session, with the approval of the United States attorney, I gave each of them a list of ten questions. Ordered to Washington. “A few days after that I was or- dered to proceed to Washington with all the data. M. M. Crane and Thomas Love, attorneys for the loan com- panies, had come to Washington to quiet the investigation. The United Home Builders’ Company was not represented by these attorneys, but eight or ten other companies were.” Will Hays, the Postmaster General, had referred the matter to Joseph i Stewart, special assistant to the At- torney General. “Mr, Stewart gave the Postmaster General an opinion that the loan companles, by eliminating some s tions of their contracts, would not be objectionable to the Post Office Department. The decision was at once capitaiized by the loan com- panies. 8 “Did_the Postmaster Géneral ap- prove_that opinion?’ Senator Jones, republican, Washington, inquired. “He did.in this way,” Dawkins said. “He advised the companies per the to the plan for public property, but it is believed that even these miltakes are minor and have failed to seriously affect the larger aspects of the plan! ! resentatives Keller, Minnggota; Mc- of Washington, and that substantial improvements to the beauty: of the city have been and are being accom- plished. “Specific_instances where it is be- lieved the beauty of the city Is bein; marred will be.carefully considered. The Commissioners deny specifically the suggestion contained in Senator King’s letter that buildings are being constructed here at height in excess of that permitted by law. To the suggestion in Senator King's letter that the regulations them- selves permit the construction of apartment and other houses of such form and height as to be at varisnce with the national and proper building policy, the Commissioners said: _“if this ‘general statement means .that ‘the forms and heights permitted by zoning regulations are not good ar- chitecture, then it is l\lg%e!led that reference be made to the Washington Chapter, American Institute of Ar- citects, that has always so strongly supported zoning, and which is B (Continued on Page 5, Column 2.) \ ~ (Continued on Page 4, Columa 2.) » (Continued on Page 2, Column 2.) = Carolina, was appointed to consider the bill introduced by Representative . Gibson to amend the corporation laws i of “the District. A subcommittee consisting of Rep- ; Leod, Michigan, and Blanton, Texas, { was appointed to consider the bill 'ln:roduczd by Representative O'Briep of New Jersey authorizing the sale { for cash of about 600 feet of gov- ernment property in the rear of 913 E street northwest, Washingtoa, to Jeremiah O'Connor. CRUSHED IN MACHINE. +D. C. Paper Co. Worker Expected to Die of Injuries. Caught in a paper machine at the plant of the District. of Columbia Paper Company, 3255 K street northwest, this |afternoon, Peter Snook of 1068% Jet- ferson_ street northwest was. so:badly crushed that it was stated at Emergency Hospital, where he was rushed .in.an 1 ambulance, that he Tecover, | l 1 i ! is not expected to |pressed by the dirigible accident only a few hours later, £ i et pline “"FORBES INDICTMENTS FIVE KILLED IN FALL OF JAPANESE AIRSHIP|Jokn W. Thompson Says Duress and Subterfuge Employed to Dirigible Catches on ‘Fire Above Get Jury Action. Forest North of Tokio—Only One Body Recovered. By the Amociated Press. S Aoeosluthd Pros: CHICAGO, March 18.—John & B R Maven 15.—A small® naval| Thompson, St. Louls and Chicago con- dirigible caught fire and fell late to- | tractor, jointly indicted ‘l'uhtocooli day In Ibaraki prefecture, northeast Charles R. F?rben,«iomehr a r:c eE of Tokio, killing the crew of five men. ::B.V:::::\l. us;“e:::: ‘cn ‘:'n‘: ha"‘j The body of the commander was the . only one found, the other four prab- 4istrict court that the indictments ably having leaped from -the blazing | voted by the grand jury had been airship betore it plunged into a for-|obtained by -subterfuge. misrepre; : sen . e fleibio mao. on s was Bt et vas b s the sumigaura aval viation e statement wi -8 -~ School to the Yokosuka naval base. '-nppon of ‘a motion by Thompson's Naval circles,"deeply affected by the | counsel to' quash the indictments e ot T et b T ie: | AEATY (o TFuatratn. the.pee, of DoOkE res | | aid papers belonging to Thompson as evidence against him. 5,525, H The California senator continued ' to hold his two-to-one lead over Senator Robert M. La Follette, whose | name had been written in on many | ballots as the result of a sticker . campaign launched in the tlosing hours of the campaign. | These rural returns prompted the prediction from Johnson men at his state headquarters here that more complete returns woulé show a ris- ing tide in his favor and culminate in his indorsement, holding that his greatest strength is in the unreported precincts. Coolidge leaders, however, did not recede from their earlier prediction, and expressed confidence that later returns would show a plurality for him, although in diminished ratio. Municipal and township elections throughout the state slowed up tabu- lation of returns on the presidential test, as most of the precinct JGdges counted the local contest bal- lots first, There was no contest for the demo- cratic _presidential indorsement, Wil- llam G. McAdoo, former Secretary of 5';'&3" ry, being the only candi- | course, The age of the veteran, of is a factor in determining the amount of insurance to which he would be entitled. Third—The credit in no case ex- ceeds $500 for home service and $625 for overseas duty. The veteran re- ceives the equivalent of a twenty- year-paid-up instrance policy for the amount of his service credit plus 25 per cent and with interest compound- ed annually at 4 per cent. If a veteran, therefore, is entitied to $500, the face of his policy would be increased by 25 per cent, to $625, and that sum compounded at interest of 4 per cent for twenty years constitutes the amount of money he would receive at the end of that. period. If he died before the twenty vears, his famlily receives the full amount the veteran would have received if he had lived through the twenty-year period. Right to Borrow. Fourth—The veteran has the privilege of borrowing money on his insurance certificate and the govern- ment will indicate on the certificate the amounts that can be borrowed at any one time. More money can be (Continued on Page % Columa 4) policy.