Evening Star Newspaper, July 22, 1924, Page 1

g WEATHER. Showers and thunderstorms this aft- ernoon or tonight; tomorrow fair; not much change in temperature. Temperature for twenty-four hours ending at 2 p.m. today—Highest, §8, at 4:40 p.m. yesterday: lowest, 73, at 3 am. today. Full report Closing N. Y. Stocks and Bonds, Page 18 No. 29,302. post CROHE WL W UTHST EEFORT TOANBSLAYERS Prosecution to Present About 100 Witnesses Against Loeb and Leopold. MITIGATION EVIDENCE * ONLY ALLOWED DEFENSE Darrow Says Parents Want Only Life in Jail, Not Asylum, for Youths. By the Associated T CHICAGO, July 22.—Jacob Franks. father of the 13-year-old vietim of Nathan Leopold, jr. and Richard Loeb, confessed slayers, will be the first witness for the state when the Presentation of evidence begins to- morrow before Chief Justice John R. Caverly in the judicial hearing des. tined to fix the punishment of the Youthful intellectuals. State’s Attorney Robert E. Crowe ‘Will make a brief opening statement, E«H‘ing forth the aims of the prose- cution and suggesting the punish- ment—death—demanded by the state. Mr. Franks will take the stand after the opening statement. The hearing is purely in the nature of an advisory conference, in which the oppusing counsel Wwill present ar- #uments and evidence in support of their respective pleas for punishment. Having yesterday entered pleas of guilty to the charges of murder and kidnaping. Leopold and Loeb face a certain sentence, with the only ques- tion centering about the degree of severity. father, the state plans to present expert testimony from several noted alienists designed to demonstrate the mental responsibility of the defend- ants. The proceedings, it was stated, ‘would require about three weeks. Defense Limited. Only evidence tending to mitigate their punishment can without a jury at a judicial hearing beginning tomorrow. The prosecu- tion, which demands the gallows for the two university students who said they killed for experiment, plans to examine a hundred witnesses. The defense, hoping for a life sentence, expects to submit testimony of alien- jsts regarding the mental responsi- bility of the youths. Three Weeks Hearing Case. R More than three weeks are expect- ed to be consumed for the hearing. | State’s Attorney Crowe intends to present every bit of evidence collect- ed by the State just as if a jury was hearing the case. His opening state- ment is expected to occupy all day tomorrow. The parents of the two boys, estimated to have resources of more than $10,000,000, do not wish them to have their freedom, attorneys for the | defense say. Neither, it is said, do they desire that their incarceration be in an asylum, as might have re- culted had the insanity theory been pursued. Consequently the corps of alienists who made minute examina- and prepared voluminous re- make brief statements on the effort to gain tions ports will the stand leniency. D. C. Alienist May Testify. Drs. James Whitney Hall and <villiam J. Hickson of Chicago, Dr. ~william A. White of Washington, Dr. Karl Bowman of Boston and Dr. Ralph Hamill are among the mental experts who will probably take the gtand for the defense. k “I am confident that both will be pentenced to hang,” said Mr. Crowe. 1t is the only just punishment for in their crime. “The State is going to prove not only that they are guilty, but that they are absolutely sane and should be hanged. “Now we need no allenists. The defense cannot introduce testimony tending to show the boys insane whey can, however, bring in witnesses or experts who may testify bearing r responsibility.” n“Tllxtfldefen‘;e was moved to cast aside the insanity plea, defense at- torneys said, because if they were adjudged insane their families would be injured by the refiection for suc- ceeding generations. A debt to pub- lie opinion, they said, also impelled discarding the theory. Wealth of Families. The wealth of their families was partly responsible for the pleas of guilty, Mr. Darrow said. “If these boys were poor,” he said, «f am confident I could get a verdict of acquittal. Their wealth is a tre- mendous handicap. “We have thrown ourselves upon the mercy of the court because 1 firmly believe that nowhere in this broad land could there be gotten to- gether a fair-minded and impartial jury to try the case. Some would say they had no opinions, but they would have—most of them subcor- sciously.” Willing to Plead Gullty. Yo:mg Leopold, whose study of pirds had made him an authority on ornithology, was said by the attor- ney to have been willing to plead guilty in the hope of receiving a life sentence when informed he could have scientific apparatus and books if he went to the penitentiary. . Both youths answered in the affirmative when asked by Judge Caverly if they realized their pleas might result in a 4 death sentence. Afterward, when questioned by newspaper men, the boys wondered what amount of apace would be given " (Continued an_Page 5, Column 4) . After the statement of the | be submitted | on page 7. Entered az secuna cluss matter ofice Washington. ¢ D. C. dirplane Rushing Appeal to Beat Pacific Hangman By the Associated Press. SAN FRANCISCO, July 22.—With every legal recourse exhausted except that of appeal to the Su- preme Court of the United States, to save the life of lsaac Wolf- sang, application for a writ of erTor was en route to Washington today by air mail, in an effort to reach the National Capital in time for action before sentence of death can be carried out at San Quentin, Calif., penitentiary Thursday. Wolfgang was convicted in Los Angeles of killing a policeman who arrested him for stealing a bottle of milk. REPUBLICAN DRIVE ALREADY STARTED Butler Says Campaign for Coolidge Now Is Actively Under Way. ENCOURAGED BY NEWS Sees National Harmony on Plat- form Fundamentals as Real Asset. With countrywide harmony as to| the fundamentals of the Republican | party belief a substantial asset, the | campaign for the election of the| Coolidge-Dawes ticket is already un- | der way, Chairman William M. Butler of the Republican national committee | said today, betore leaving for Chi- cago, where he will confer with Gen. |Charles G. Dawes in regard to the |part which the vice presidential nominee will take in the campaign. Gen. Dawes, it is well understood, will do much of the speaking for the national ticket. There has been no | change in the plan for President Coolidge to remain in Washington and in the White House during the campaign, Mr. Butler said. It is ex- pected the President will make half | a dozen or more speeches, but he | probably will deliver them here, it| was said, using the radio to reach many different parts of the country. Campaign Underway. “Formally the campaign opens af- ter the notification of the candidates by the committees appointed,” said Mr. Butler today. “But as a matter of fact, the campaign is already un- | der way.” He said that the speaking campaign was scheduled to commence after the | notification of President Coolidge and Gen. Dawes in the States, and that an intensive speaking campaign would come after Labor day, when the holiday season is over. 1 Mr. Butler will spend considerable | time in the Chicago headquarters be- |fore the notification of President Coolidge, when he will be in Wash- | ngton, and later in New York. James | B. Reynolds of Massachusetts will be {in charge of the national committee's | headquarters in Washington, he said. Mr. Butler made the following statement toda: Harmony in Country. “One of the most substantial assets | of our campaign is our country-wide i harmony as to the fundamentals of party belief. We have national head- quarters in Chicago; eastern head- quarters in New York, a Washington office, and we will probably later| open an office further west. These offices are only required for the more efficient management of the campaign. They are not required by any politi cal problem which we have of pre- senting our candidates in different phases to the voters of the country. “This is possible by reason of the fortunate fact that the American peo- ple as a whole have already achieved their own understanding of President Coolidge. His program of economy, of taxation reduction, of efficiency, is nation wide in its appeal. We do not have to shade or modify it to meet any sectional situation. “As matters stand, our friendly en- (Continued on Page 4, Column 1.) HARRELL BELIEVED TRAPPED IN WOODS | Alleged Accomplice in Slaying of McLeary Sought Near Union, 8. C. By the Associated Press. UNION, 8. C, July 22.—In the belief that Frank Harrell, alleged accomplice of Mortimer N. King, confessed slayer of Maj. §amuel H. McLeary, is in hiding near here, police and deputies are today scour- ing a wooded section south of Union. A man arrested yesterday afternoon carrying a parcel of food toward the ‘woods is reported to have confessed to officers that he was taking it to Harrell. The fugitive, for whose arrest Gov. Thomas G. McLeod Saturday offered a reward of $500, is believed to be surrounded. The search for Harrell, which was started as soon as King, according to officers, confessed to the Kkilling of the Army officer near Cheraw on July 2, naming Harrell as his com- panion, led first to this vicinity. oOf- ficers brought King from Canton, N. C, on July 16, following his con- fession, and sought his alleged gc- @ i Collns and Sheely complice here and at Lockhart, a few miles to the east of Union. No trace of him was found and officers con- tinued with King their search for the remains of Maj. McLeary, which were finally pointed out by the pris- oner near the Raleigh-Columbia highway, 11 miles south of, Cieraw, WASHINGT VT SOK DEFEAT GRIFFSINFRSTTLT OF DOUBLE L 49 Thurston,-Evers’ Hurling Ace, Gets Better of Mogridge and Speece. THREE MARKERS IN 6TH CLINCH GAME FOR CHISOX Local Sluggers Unable to Solve De- livery of Windy City Star, Who Registers Tenth Straight Win. BY JOHN B. KELLER. Inability of the Griffmen to solve the offerings of Hollis Thurston, White Sox pitching ace, caused the defeat of the Nationals by Chicago by a 4-t0-0 score in the first game of today’s double-header. George Mogridge started on the mound for the local club and worked until the seventh inning, when, after the Sox had chased three runs over the rubber in the sixth. \Speece was sent to his relief and he pitched out the game. Chicago counted a run in the open- ng frame on a walk to Archdeacon, | a sacrifice putting him on second, and when Peck fumbled Collins' roller | Archdeacon counted. In the sixthg the enemy sent a trio of runs ove: the pan on hits contributed by Elsh, Sheely, Falk and Kamm. FIRST INNING. CHICAGO—Archdeacon walked. Mo- gridge threw out Elsh, Archdeacon tak- ing second. Collins made first and Archdeacon scored when Peck fumbled Eddie’s roller. Sheely grounded to Tay- lor, who tried for Collins at second, but the throw was late and both men were safe. Mogridge threw out Falk, advancing. Kamm | fanned. One run. | WASHINGTON — Rice Sheely. Leibold popped Kamm threw out Taylor. SECOND IN CHICAGO—McClellan fanned. Peck threw out Schalk. Thurston tripled to center. Peck threw out Archdeacon. No runs. WASHINGTON — Goslin bunted and was thrown out by Thurston. Judge walked. Ruel forced Judge, McClellan to Collins, and was safe when Sheely dropped Collins’ throw for a double play. Ruel died stealing, Schalk to Col- lins. No runs. THIRD INNING. CHICAGO—Harris threw out Collins flied to Goslin. Sheely. No run: WASHINGTON—McClellan threw out Harris. Peck singled to center. Mo- gridge grounded to Sheely, Peck hold- ing up at second. Rice flied to Elsh. No runs. FOURTH INNING. CHICAGO—Falk bounded to Judge. Kamm singled to center. McClellan rolled into a double play, Peck to Har- ris to Judge. No runs. WASHINGTON—Leibold sent a Texas League single to right center. Taylor sacrificed, Sheely to Collins. Collins threw out Goslin, Leibold taking third. Judge flied to Elsh. No runs. FIFTH INNING. | CHICAGO—Peck threw out Schalk. Thurston fouled to Judge. Archdeacon walked. Archdeacon died stealing, Ruel to Harris. No runs. WASHINGTON —Ruel went out, Thurston to McClellan to Sheely. Kamm threw out Harris. Kamm threw out Peck. No runs. SIXTH INNING. CHICAGO—EIsh singled to left. Col- lins _sacrificed, Mogridge to Judge. Sheely doubled to center, scoring Elsh. Falk bounded a single off Mogridge, scoring Sheely. Falk took second on the throw by Peck, who recovered the ball. Goslin misjudged Kamm's fly, and_the hit went for a double, scoring Falk. Mogridge threw out McClellan, Kamm taking third. Schalk flied to Leibold. Three runs, WASHINGTON—Matthews batted for Mogridge and singled to center. Rice singled to left, Matthews stopping at second. Leibold flied to Falk. Taylor | popped to Collins. Goslin flied to Arch- deacon. No runs. SEVENTH INNING. CHICAGO—Speece now pitching for ‘Washington. Peck threw out Thurston. Archdeacon went out the same way. Elsh popped to Speece. No runs. WASHINGTON—Judge flied to Arch- deacon. Ruel was hit by a pitched ball. Harris fouled to Falk, who made a one- handed catch. Peck flied to Elsh. No runs. grounded to to Sheely. Noruns. NG. Elsh. Peck threw out EIGHTH INNING. CHICAGO—Collins scratched a single past Harris. Sheely sacrificed, Speece to Judge. Third strike was called on Falk. Falk was put out of the game N, | Chicago. for disputing Dineen's decision on the pitch. Kamm flied to Leibold, who came in far for the catch. No rui WASHINGTON—Barrett now playing left for Chicago. McClellan threw out Speece. Rice flled to Elsh. Leibold singled to center. Taylor fanned. No runs. NINTH INNING. CHICAGO—McClellan popped to Har- ris. Schalk grounded to Judge. Thur- ston_singled to right. Archdeacon lined to Goslin. No runs, WASHINGTON—Thurston threw out Goslin. ~ McClellan threw out Judge. Ruel flied to Archdeacon. No runs. 5 STEAMERS GROUNDED. Release of Water in Ohio River Leaves Boats Stranded. CINCINNATI, July 22.—At least five river steamers are aground and innu- merable houseboats are stranded as the result of an unprecedented drop of 10 feet in the Ohio River within the last 24 hours. The drop was caused by the sudden raising of wickets in the dams above Cincinnati. It is expected that the situation will be righted late today, as the dam at Fernbank, below Cincinnati, s being ralsed. The inflow of ‘water will again float the grounded and stranded craft and restore the river to its usual depth sround Cinclonatly .. . .. . WITH SUNDAY MORNING EDITION D. C, TUESDAY, JULY ¢ Foening 29 &2, BOX SCORE OF FIRST GAME CHIC IArchdeacon, cf.. Collins, 2b Sheely, 1b. Falk, If. Barrett, If Kamm,3b...... McClellan, ss. Schalk, ¢ Thurston, p. Totals WASHING AB. 4 4 Rice, rf...... Leibold, cf.. Taylor, 3b . 3 Goslin, If.... . 4 Judge, 1b....... 2 Ruel, c...... 4 Harris, 2b.... Peckinpaugh, ss Matthews ... .. Totals......... AGO ® —uwcompce? | ...lcccC=-—c-— alececocrnecer Bl - =] ee wew - 3 |c-d-u:-c=ccc? Ic-ecuu ~looomucoccecc? ClcCQGCcCGGCCF © - - El Matthews batted for Mogridge in the sixth inning. SCORE BY %8 1 o o0 Washington............. o o INNINGS s 4 s 8 7 0o 3 0 o 0o o [ o o SUMMARY 1y, Kamm. ay—Peck to Harris to Judge. Left on bases—Chicago, 4; Washing- ton, 3. FLYERS TOAWAT SUPPLESONWAY Will Leave England as Soon as Distribution Along Route Is Completed. Maj. Gen. Patrick, chief of the Army Air Service, has cabled instruc- tions to Lieut. Lowell H. Smith, com- manding officer of the world flight, to start the transatlantic hop as soon as supplies are distributed along the path of the flight, and naval vessels have taken their position on the water stretches between stopping points. A statement issued today by the Army air service said “the flight is not expected to leave England before August 1. It was also announced that the trip from Brough will be by way of Kirkwall, Iceland, Greenland and Labrador, with the omission of the stop previously scheduled for the Faroe Islands. The fiyers will pro- ceed directly from Kirkwall, Orkney Islands, to Icel#nd, a distance of 560 miles. “According to present plans,” the air service said, “the flight should leave Kirkwall, Orkney Islands, for Hofn Horafjord, Iceland, on_August 1. They should arrive at Labrador about August 10 and Boston about August 16. This schedule, of course, is subject to delay, but on the other hand may be better. AWAITING WORD TO GO. Flyers Completing Work on Planes. Will Be Ready Tomororw. By the Associated Press. BROUGH, England, July 22.—The American aviators will be ready to resume their whirl round the world tomorrow, but will wait in this tiny village by the Humber until Wash- ington says the word “go.” The process of converting their three planes from the overland type into seagoing ships will be completed tomorrow, when the landing gear will be removed and pontoons placed under the fuselages. This will be the last labor of the six days of hard work which the flyers have put in since their arrival in Great Britain. Radio Programs—Page 15. . . Baxes on balls—Off Thurst Mogridge, 2. R e Struck out—By Mogridge, 2. Hits—Ofl Mogridge, 6 in 6 innings. Hit by pitcher—By Thursten (Ruel.) Umpires—Mexxrs. D Nalli CHARWOMEN UNITE 10 FIGHT FOR PAY 250 Attend Protest Meeting. Some Declare Wages Are Cut in Half. 7 Reclassification rose up again to- day to be buffeted about in the con- troversy now raging, developments breaking in several quarters. The case of the charwomen—both white and colored—was championed by Henry Lincoln Johnson and John T. Risher, prominent colored law- yers, who will fight the battles to save them from the reduction in pay which all suffered under reclassifica- tion. At the same time, two decisions by the Acting Controller General, Luther R. Ginn, came to light, deciding that the charwomen were entitled to cer- tain annual and sick leave, but not to pay for Sundays and holidays, upon which they did no work. Luther Steward, president of the National Federation of Federal Em- ployes, broke into the controversy again- with a statement taking issue with the position of First Assistant Postmaster General John H. Bartlett as outlined in The Sunday Star. Charwomen Ask Ald. Speaking for himself and Johnson, Attorney Risher declared a “pathetic” meeting had ‘taken place in their office at 1216 Pennsylvania avenue northwest last night, in which more than 250 charwomen, both white and colored, had appeared in confused anxiety and worry over the reduction in salary, appealing for help. Attor- ney Risher said he and Johnson had offered to help the charwomen and another meeting would be held Wed- nesday night for report on the pre- dicament of these workers in all de- partments.| The opinions of the acting control- ler general concerning the char- women were rendered in reply to questions by both the Secretary of the Treasury and the Secretary of War. Payment for Sundays or holidays is not authorized unless services be actually performed on sald days,™ (Continued -on -Page 2, Column 3.) WENTY-EIGHT PAGES. 3000 DEAD OR HURT AMONG SAO PAULO CVLIANS REPORTED Accounts Received Here State No Americans Are in Casualty Lists. Three thousand civilians have been killed or injured in fighting at Sao Paulo between Brazilian federal and | revolutionary forces, according to re- ports received today by the State De- partment. No. Americans were in- cluded among the casualties, it was announced. The American consul at Sao Paulo, Arminius T. Haeberle, and American Trade Commissioner Connell were re- ported “well and safe.” ttle July 20. The heaviest fighting of the revolt, the messages said, took place during the night of July 20, but the result did not materially change the situation. The rebel forces, it was said, appear to be well equipped with arms, ammuni- tion and food. Their strength was esti- mated at 10,000 or more. Food Supply Adequate. The food supply of Sao Paulo was de- ciared to be adequate, but many thou. sands of residents had left the city. Americans in Sao Paulo are housed in the districts described as being “most adequately protected.” The Brazilian federal forces at Sao Paulo are being further strengthened by reinforcements sent by the gov- ernment from various points. SUICIDES ARE DECLARED INCREASING IN BALTIMORE Forty Cases Reported This Year, Compared to 29 for Same Period of 1923. Special Dispatch to The Star. BALTIMORE, Md., July 22.—Sui- cldes here are on the increase, rec- ords of the police department show. Forty men and women have taken their lives since the first of the year, while fon the same period last year the total was 29. During 1923 69 men and women committed suicide and 13% others made attempts. In previous years, records show, poison was most frequently used, but during the last two years firearms and gas have taken precedence. DEATH IS BEING PROBED. Virginian Found Mangled Near Railroad Tracks. By the Associated Press. WINCHESTER, Va., July 22.—Bal- timore and Ohio Railroad agents are making an inquiry to determine whether Henry Funk, 27 years old, of Riverton, Va, an employe of the Conner Lime Company, at Cedar Creek, was killed by a train late Sat- urday night, or whether he died from other causes. A son of Robert Spik- er, at whose hom2 he boarded, found the body, mangled, some distance from the tracks near Capon Road. Trainmen knew nothing of the man's death. Ollie Conner, superinfendent ‘of the company’s plant at Vaucluse, died of acute indigestion at the home of his father-in-law, Thomas Higgs, where he was spending the week. Conner leaves his wife, one child, his father, two sisters and three brothers. ° - CHILD BODIES RECOVERED. Two of Seven Lost in Boat on Leng Island Sound Found. BRIDGEPORT, ,Conn., July 22. The bodies of two boys, members of a party of seven children, who put out into Long Island Sound last Thurs- day In a canoe, were recovered today off Franche's Dock, about a mile from wx:§. they were last seen alive. “From Press to Home Within the Hour” The Star’s carrier system covers every city block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. Yesterday’s Circulation, 93,357. “Ape Men” Prove Youngsters From Summer“Y” Camp By the Associated Press. PORTLAND, Oreg., July 22.—Two boys at the Young Men's Christian Association camp at Spirit Lake, on the elopes of Mount St. Helens, be- lieve they were the ‘“apes” Which prospectors reported hurled stones at their cabin recently. One of the boys, Maxwell Pierce, in a letter to his parents, said: “We stumbled onto a trail that led to the miners’ cabin. A couple of them greeted us with revolvers. They told us we were the first ones ever to find their cabin. But the next day they told the rangers of their ‘ape man’ story.” COOLIDGE INDORSES U . ADTOEUROPE Hughes’ London Speech As- suring Dawes Plan Back- ing Was Authorized. WALES PROPOSES TOAST Prince Banters Secretary for Trav- eling “Incognito”’—Notable Guests at Dinner. The declaration by Secretary| Hughes at the Pilgrims’ dinner last | night in London that American as- sistance might be counted upon in the economic rehabilitation of Eu-| rope is regarded at the White House as a general statement of American | international policy under the Cool- idge administration. Mr. Hughes discussed his Pilgrims’ dinner address with President Cool- idge before going abroad and the President feels that the United | States under the present administra- tion stands committed to the pledge | which Mr. Hughes made. | Al efforts will be made by the| American Government to carry out| this pledge, either through encour-| agement of private enterprise or| through governmental operation | where possible and not inconsistent | with American international policies. | | PLEDGE LOUDLY CHEERED. | Pilgrims Hear U. S. Backing for * Dawes Plan Stated. By the Associated Press. LONDON, July 22.—Charles Evans Hughes, the American Secretary of State, whom the Prince of Wales re- ferred to as visiting England “in- cognito,” delivered an eloquent and forceful speech as president of the American Bar Association at the Pil- | grims’ dinner last night, interpreting American ideals and explaining con vincingly the part the United States could be expected to take in European affairs. The dominant note of the Secre- tary's address was that America’s de- votion to the cause of peace could be counted upon, as well as America’s purpose to co-operate Wwith Great| Britain and others in every way con- genial with American institutions in the interest of peace. | For the economic rehabilitation of | Europe dependence could be put on | American assistance. “And,” added | the Secretary, “it does not maller; that this aid i$ not given by the Gov- ernment.” | Confidence in Dawes’ Plan. | He laid stress on the Dawes plan and the partictpation of American ex perts with the liberty of constructive | effort, and declared We believe that the Dawes plan opens the path of confidence and prosperity. For that reason we are deeplv interested in its prompt_execution.” Mr, Hughes explained that any at- tempt to make America's contribu- tion a governmental matter would have meant hopeless debate and no adequate action. The dominant sen- timent in the United States, he was! sure, was absolutely opposed to com- mitments _which - would promise ac- tion by Congress in unknown con- tingencies. Englishmen who admired Roose- velt's audacity were first to applaud when Secretary Hughes, emphasizing that his visit to England was entire- ly unofticial, opened his address by saying: “Borrowing the phrase of a famous statesman with respect to a certain international transaction in which he | took pride, I may say that there is! not the slightest taint of legality in my appearance here tonight.” The Secretary's declaration was greeted with rounds of applause and laughter, and soon the story was go- ing round the Pilgrim's board that the reference was to Roosevelt and his Panama policy. The story told to Englishmen who did not know it was that President (Continued on Page 4, Column 1) NORWEGIAN MINISTRY QUITS OVER PROHIBITION Government Sought Repeal of Dry Law to Get Revenue to Meet Deficit. By the Associated Pres "CHRISTIANIA, July 22.—The thinis- try of Premier Abraham Berge has re- signed as a result of the defeat of the Ihgovernment's proposals for balancing the budget. It will be replaced by a new ministry headed by Johan Ludvig Mowinckel, former minister of com. merce. Premier Berge, faced by a deficit of 120,000,000 kroner in previous budgets and 30,000,000 kroner in the coming budget, sponsored a bill in the Storthing repealing the present prohibition law and permitting trade in liquors and al- cohol under government control. It was estimated this trade would bring in an income of 30,000,000 kroner. The communistic faction joined Dr. Mowinckel and the radicals in defeating the bill. The new government stands ’s TWO' CENTS. U. 3. BANKERS BALK ATLOAN IF FRENCH CAN INVADE REICH Investors Must Have Abso. lute Guarantee of Safety, Is American Stand. HUGHES GIVES SUPPORT TO POSITION IN SPEECH Belgian Compromise Proposal to Be Considered—Poincare Bugaboo in Background. > . July 22—The guarantees provided for safeguarding the Ger- man loan, with which is is proposed to launch the Dawes reparation plan, were the chief topic of discussion among the delegates to the interallied conference today. The discussions between the finan- cial delegates of the conference and the British and American bankers Who are being relied upon to take up the bulk of the proposed $200,000,000 loan, which began immediately with Publication of the findings of the com- mittee on defaults and Ppenalties, were continued. Safeguards Main Issue. The sufficiency of the financial safe- guards which this report provides was a question which overshadowed every other fissue in the discussions amongst the delegates, financiers and diplomatic experts. Every effort is be- ing made in the discussion between the conferees and the bankers to ob- tain the bankers’ approval of the scheme. While the general feeling regarding an ultimate agreement is still opti- mistic, it cannot be denied that the situation is not quite so bright today in view of the differences which have arisen since the committee’s report was made public last night. The vagueness of the article under which France might insist upon her right to separate action in the event of Germany's default is a principal stumbling block. In the background there always appears the figure of Raymond Poincare, former French premier, as one of the most powerful critics of the conference, and the French have to keep this in mind in connection with any concessions they may grant regarding French rights under the Versailles treaty. U. S. Bankers Dissatisfied. It is understood that the American bankers are most frank in their dis- satisfaction with the present security for the loan, although outwardly they are maintaining a non-committal at- itude. In the conversations between the conferees and the bankers it is | Jearned that some consideration has ‘been given to a proposal accredited pto the Belgian delegation under which the reparation commission would be further Americanized by placing under it not only the agent general of reparations and the representa- tives of the loan bondholders, but also another American who would be the representative of the bankers. 1t is understood that this proposal is tentative and that the exact status of these officials under jthe reparation | commission has not Been definitely worked out. "®he task befowme the conference of dissipating the doubts and anxieties which the bankers feel about the se- curity for the German loan is ine creased by two considerations: 1n conterence circles it is stated there can be no serious consideration of governmental guarantees 8f the loan nér is there any likelihood that France will agree to forego het rights to separate action, which she claims under the Versailles treaty. Serious View Taken. ‘While the official delegations sisted upon maintaining a note of op- timism and while the bankers re- mained silent, there were unmistak- able evidences that the financiers were dissatisfied With the recommen- dations of the committee regarding the question of Germany's default. While official quarters were not in- clined to regard the bankers' attitude as raising a crisis, it was recognized that this reassertion of the bankers’ proper demand for security for the proposed loan must be met with proper guarantees, since it was gen- erally recognized that successful Jaunching of the Dawes plan depend- od in the first place’ upon flotation of the loan. The British attitude has always been that it is of no use to prepare eclaborate plans dependent upon the loan until it is clear that the loan is certain to be forthcoming. in- Text of Samctions. The text of the report of the com- mittee on defaults and sanctions con- firms the digests of the provisions al- ready carried in these dispatches. It is provided that the reparation com- mission, enlarged to include an Amer- jcan member, shall be the sole judge as to whether Germany has made a default under the Dawes plan. This report, which it is proposed to in- corporate into a protocol, further pro- vides that in any contingency, includ- ing both default and resultant sanc- tions, the holders of the proposed German loan shall have a priority claim on all of Germany's state as- sets. DProvision is made that the American member ef the reparation commission shall be appointed by that commission within 30 days afteradop- tion of the protocol. “In the event of the reparation com- mission not being unanimous,” says pledged to retain the present prohibition law and to balance the budget by other the text, “the appointment shall be . (Continued op Page 4, Column 3 ¥ ~