Evening Star Newspaper, June 25, 1925, Page 2

b * NIGHT SESSION MA END SHEPHERD CASE Judge in Germ Murder Trial Offers to Hold Court Sit- ting After Dark. By the Associated Prese. CHICAGO, June 25.—The Shepherd murder trial probably will be con- cluded with a session tonight, Judge T. J. Lynch and the lawyers for both sides tentatively agreeing to such a step at a recess conference in cham- bers. The night session was not definitely decided upon, however. “I am willing to keep court in ses slon untii the case is concluded,” said Judge Lynch. “I am willing to start my closing argument at 10 o'clock, d Iobert E. Crowe, State’s attorney. I shall peak at length. I shall confine Ik to the evidence.” 3. Stewart, chief of defense said he would need a little time this afternoon. W. W. O'Brien, his associate, did not indicate how long his speech would take. jury plea in behalf of Shepherd 5 continued today by W. S. Stewart, chief of defense counsel. He spoke for more than two hours yesterday, and said this morning he would require all of the forenoon, and probably would continue talking this afternoon. counsel, Shepherd Looks Worried. Shepherd entered the courtroom this morning with his face showing dis- tinet marks of worry. Newspaper men who have seen him almost daily for three months said that he seemed more careworn than at any time since he was accused of using typhoid germs to murder his millionaire foster son, William N. McClintock. Mrs. Shepherd red particularly affable, however, smiling and chatting with a’ group of friends who constant- 1y attend her in court. Attorney Stewart continued his at- tack upon Alexander F. Reichmann, Chicago attorney, and with Mrs. Shep- herd former co-guardian of Billy Mc. Clintock. “Don’t you think it reasonable to #ay that he didn't like Bill?” demanded Stewart, after he had detailed many of the disagreements between Reichmann and the Shepherds and had accused Reichmann_ of unethical tactics in drawing the will of the youth’s mother. It was the first time Stewart had referred to the defendant as “Bill.” Stewart then took up the manner of the making of the McClintock will and scored that as a point in Shepherd's favor. “If he had been nursing the boy along to slay him, wouldn't he have gotten some one e to draw the will?" asked Stewart. “That is one of the points he is going to have to explain in the Probate Court in the will fight. But if he had been trying to prepare an alibi, he have had somebody else draw the will =0 as to cast suspicions from him?" Stewart took up the testimony the many witnesses and analyzed it from his viewpoint. Asked Gift of Bil The letter Shepherd wrote to Miss Gehling, a young nurse with whom he once was friendly, “was just a let- ter to a girl,” Stewart said, even though Shepherd wrote that he was bankrupt, had no plans and probabl would close his office and drift away from it all. Shepherd's statement to the voung woman that he had asked Billy to give him a valuable piece of property was not in keeping with his alleged plan to kill the youth and get it all, Stewart said. “Never mind about Willie—he will come out of this with his pockets filled,” an undenied statement at. tributed to Shepherd 17 yvears ago, while he was examining Mrs. Mo. Clintock’s Texas property, was called @ reference to the money-making pos- sibilities of a_project rather than a step in a murder plot. Opposed “Billy's” Marriage. Stewart admitted that Shepherd had said to a newspaper reporter that he hurried home to throw out of the house anybody who tried to marry Billy. He pointed to that as an illustration of fatherly interest rather than a desper- ate effort to prevent a marriage which would nullify the wili in which Billy had left Shepherd the §1,000,000 es- tate. He had gotten through with the tes- timony of all witnesses except that of John P. Marchand and C. C. Faiman, the State’s chief witnes 3 “From all that has been testified by all these witnesses I have gone over have you anything but a lot of foolish statements from which have been drawn & lot of foolish and nonsensical conclusions?” demanded Stewart. “Why, you would not send a dog to the dog pound for a day on such evidence. © “'All they have done here is bring in proof possibly of a motive, possibly of an opportunity to kill, but are you go- ing to hang a man for that?" In reaching Faiman’s testimony, Stewart reiterated his demand to “hang Shepherd if you believe he dealt with Faiman.” Stewart still was talking when court recessed for lunch. PINCHOT WARNS OF STOCK SCHEMES AT EXPOSITION Governor Asks Director to Aid in Protecting Public Against Frauds. By the Associated Press. HARRISBURG. Pa.. June 25.—Gov. Pinchot today made public a letter to Director General Collier of the Phila- delphla sesquicentennial exposition, to be held next year, asking the co-opera- tion of the management with the State in “protecting the public against worthless and unworthy sesquicenten- nial promotion scheme: “The Bureau of Securities of the Department of Banking advises me that in connection with the sesqui- centennial exhibition certain promot- ers are planning to conduct extensive stock-selling campaigns based on noth- ing else than amusement concessions obtained fror the exhibition manage- ment,” the Governor wrote. *“The Bureau of Securities feels that temporary amusement enterprises should not be made -the basis for stock investments and that such amusement _concessions should be awarded only to reputable and re- sponsible parties able to finance them- selves without making the sesquicen- Presides Over Bankers VICTOR B. DEYBER, President, D. C. Bankers’ Assoclation. wouldn't | “AD STUNT” AROUSES BRITISH WAR OFFICE American Press Agent Enlists Aid of Soldiers to Get Publicity for New Film. BY JOHN GUNTHER. By Cable to The Star and Chicago Daily News. LONDOX .—Questions will be asked in Parliament tonight regard- ing the strange manifestations of the activity -of the American press agent. The amazement began on Wednesday when 3 officers and 100 men of the British territorial army met the liner Berengaria at Southampton, greeted an American film group and escorted them into London. James V. Bryson, director of a Holly- wood movie concern, was arriving in Europe with negatives of a new pic- tures which is to be produced in Lon- don soon. Apparently he arranged for a detachment of British soldiers to meet him while his cameraman filmed the parade of uniformed and armed men, carrying the film like a solemn cortege, the film cases being banked on a special car like a casket and covered with flowers. Armored cars and a band later joined the de- tachment as it marched through Lon- on. The curiosity aroused was succeeded by indignation when it was explained that Bryvson promised to show the ar- rival of the film to help the regiment's Summer recruiting in exchange for his publicit Bryson is reported to have boasted: This affair will cost me £100. It was well worth it.” The war office got wind of the affair after it was over, an official stating that it “sounds like Edgar Allan Poe's wildest dream. The regiment was the 153d Battery, Hampshire Territo- rial Brigade. (Copyright, 1925, by Chicago Daily News Co.) HITS OFFICIAL VIOLATORS OF PROHIBITION LAWS Anti-Dry Leader Declares Disre- gard for Ban on Drinking Sets Bad Example. The job of Policé Commissioner of the District would be made less dif- ficult if members of Washington's of- ficial life could, by force or persuasion, be induced to obey the Volstead law, Capt. W. H. Stayton, founder and national chairman of the Assocfation Against the Prohibition Amendment, de(x-!flr('d in a prepared statement today. “One of the most difficult phases of enforcement of the prohibition law in this city, with which Commissioner Fenning must deal, is that dry ele- ment which votes dry and drinks wet,” Capt. Stayton declared. “And as long as these drys are permitted to flagrantly violate a law which they enacted, the people of Washington and the Nation will hold it in con- tempt “Official police statistics show an alarming increase in crime since the prohibition law went into effect. They also show large increases in arrests for drunkenness in the Capital City. “The statistics for arrests for all causes are as follows: In 1919 (last wet vear), 48,930; 1920, 1921, 61,0 , 66,758; 1923, 69,159, and 1924, 72,234, The arrests for drunkenness are: “In 1919, 3,568; 1920, 5,415; 1921, 6,375; 1922, §,368; 1923, 8,128, and 1924, 9,149.” Aid Mangin’s Family. PARIS, June 25 (#).—The American Chamber of Commerce in France has opened a subscription for the family of the late Gen. Mangin, who died re- cently. Gen. Mangin was closely as- sociated with the American forces during the war Grants Macri Venue Change. NEW HAVEN, Conn., June 25 (#).— The motion of the State for a change in venue of retrial of Miss Olympia Macri, indicted for murder of John Bagnano, was granted by Judge John R. Booth of the Superior Court today, T DEYBER PRAISES RESERVE SYSTEN Makes Opening Address at Bankers’ Convention at Hot Springs. BY CHAS. P. SHAEFFER, Staff Correspondent of The Star. HOT SPRINGS, Va., June 25.—The seventh annual convention of the Dis trict of Columbia Bankers' Associa- tion got under way here this morning. Once a year the precarious loans, unprofitable and overdrawn notes and defaulted payments are subordinated or entirely forgotten by this group of ‘Washington financiers, who gain con- structive knowledge of vital subjects during the short day business sessions and revel by night. Colcidently, this morning’s initial session was begun at the same hour and on the same date as the assocla- tion’s inaugural conclave held seven years ago at Deer Park, Md. The as- sembly was quickly notified of this fact by Victor B. Deyber, president of the assoclation, in his opening ad- dress. In his speech, which he tacitly re- ferred to as an ‘“ante-mortem state- ment” (Mr. Deyber’s official demise be- ing scheduled for next Saturday morn- ing, when new officers will be named for the vear). Mr. Deyber assumed the role of a eulogist. Beginning with the Federal Reserve Board, and con- tinuing down the line to his minor committees, nothing but unstinted praise was offered by the speaker. The stand taken by the local banking fra- ternity with respect to rent legislation last Spring was also warmly com- mended. Praises Reserve System. From a credit point of view, Mr. Deyber asserted the birth of the Fed- eral reserve system places in our hand a powerful weapon to ‘“carry on” with the minimum of danger and the maximum prospect of success. Trac- ing the unsatisfactory economic seas from colonial days until about 10 years ago when the system came into being, the speaker declared although its christening and initial trial oc- curred during the most unprecedented economic and financial upheaval in the world's history, it has weathered the storms and has brought this country into a peaceful and sound financial calm. “America has escaped the chaotic currency and credit conditions of Europe,” he said, “and will continue to adjust herself in an orderly fashion if this great banking system is safe- guarded, liberalized and administered under intelligent legislation.” Mr. Deyber declared this country’s business was never so good as it is to- day. He believes, he said, conditions were never better set for progress ing as his_reasons the following ent facts: Retall business in 1924 was the largest recorded in this country, and 1925 is running ahead of 1924; the wealth of the world is far in excess of pre-war figures, despite the war’s tre- mendous waste; our transportation fa- cilities are being used to their fullest extent and are more efficient than at any time in our history: the prices of securities are higher than at any time in 1924; a marked improvement has taken place in the agricultural situa- tion, and a higher level of return seems assured to the farmer for the next harvest yvear, and, except during the post-war boom, our foreign trade is the greatest in history. Mondell Scores High Taxes. The present wartime taxes now lev- ied upon the American people, in some cases amounting to more than 40 per cent of earned incomes, are in peace times “‘unfair, unjust and wicked,” Frank W. Mondell, member of the War Finance Corporation, flatly de- clared in a speech on “Federal Tax Reduction and Reform” before the association, Mr. Mondell expressed himself in accord with President Coolidge that the high rates are indefensible from the standpoint of justice and equity. Considering them from the standpoint of their defect upon the general pub- lic interest he called attention that three Presidents and a like number of Secretaries of the Treasury gave warning to the disastrous effect of the continuation of these rates. “Beyond all question,” said Mr. Mondell, “these Treasury returns af- ford abundant demonstration of the unwisdom of continuing high rates. In 1916, under a maximum surtax rate of 13 per cent income in excess of $100,000 were reported in the sum of $1,856,000,000 and in 1923 the same class of reported incomes had dwindled to $913,000,000. The difference be- tween these sums, at the rate of 6 per cent, represents the income from more than $15,000,000,000. Assuming that large incomes have increased in the same proportion as other classes of income, we find that the sum of 2,400,000,000 would represent fncomes in'excess of $100,000 in 1923. The dif- ference between that amount and the sum of incomes actually reported rep- resents, at 6 per cent, the income of $24,000,000,000.” Billions Invested Abroad. “It appears, therefore, that under the high tax rates large portions, in the sum of at least $20,000,000,000, as a conservative estimate, has been withdrawn from the field of active business and invested abroad or in tax free securigies or so divided as to no longer appear in the high brackets of the income tax.” Mr. Mondell offered this suggestion bankers and influential business men Bathing Girl Poster in U. S. Lifts Banned for Displaying Her Limbs Seductive Damsel In Scant Attire Advertising Excursion of Circle Club of the Master Ma- sons Is Persona Non Grata. A lady in a bathing suit, represented on an advertising poster of the Circle Club of the Master Masons, a Dis- trict Buflding organization, has been declared persona non grata to officlals in charge of the display of such post- ers in the District Government ele- vators and she has been amputated from the poster now displayed in the elevators. The bathing suit is quite a garment. It is draped so as to disclose an un- usually graceful left shoulder and quite & portion of the left le—er— limb. The only other portion of the anatomy of the femme persona non grata visible to the naked eyve is her face, eves, nose and mouth. Her puf- tennial the oeeasion for scandalous stock exploitations.” PO PARIS POSTMEN STRIKE. Quit Work for Payment of Wages Now in Arrears. PARIS, June 25 (#).—The postmen 6f Paris struck today to support a demand fér payment of wages in errears. They were promised an in- crease of 1,800 francs by thé Herriot government, but received only$,500 &ancs in 1924 fed hair covers her ears and a chic little bathing cap covers her head. Brooke Bans Poster. The ruling was made by E. P. Brooke, assistant superintendent of the building, when the poster was displayed to him. “It might be objectionable to some persons who ride in the public_ele- vators,” he told Secretary E. L. Phil- lips of the Circle Club. “I can't al- low it.” The result was that only the bar- ren printed portion of the poster tell- ing of the forthcoming moonlight ex- cursion of the Circle Club on July 17, on the steamer St. Johns, was allowed to be hung in the elevator. But op the bulletin board in the center of the basement floor surrounded by civil service examination circulars and the like, the full picture is permitted. A bit of a diplomatic complication is expected as the result of the hang- ing of the poster in the office of the collector of arrears in water taxes and the like. Many girls in this office in- formed President Milton D. Smith of the organization that the poster would remain, because it was a pleasing work of art. Appeal Is Fatile. An appeal was taken by President Smith to Maj. Willam Henry Hol- combe, superintendent of the building, with no result. “Of course,” Maj. Holcombe said, “much depends upon the eyesight of the spectator and upon his sense of propriety. But since Mr. Brooke has decided that the thing is not fitting for the elevators, I see no reason for overruling his decision.” And there the matter stands. President Smith, however, stated that churches, steamboat companies and other organizations had enticed the gaze of the public to advertise- ments by the very same display of feminine pulchritude in years past, and pointed out that & trip up F street might disclose a modern.girl wearing even a less abbreviated ¢pstume than his bathing girl, HE EVENING STAR, WASHINGTON, D. O, THURSDAY, {COLD FORCES QUICK CHANGES IN COURT GOWNS OF U. S. WOMEN Furs and Velvet Substituted for Embroidered Shawls—Capital to be Represented in Presen- tations at Buckingham Pdlace. By the Associated Press. LONDON, June 25—A sudden change in weather sent the Amerigan and other women who are to be yire- sented at Buckingham Palace tonight scurrying in search of warmer wraps after all their plans had been made in accordance with the predictions of the weather prophets that the hot spell would continue. It was so warm dur- ing the first court, a few weeks ago, that 'veral persons fainted, and a num| of innovations were brought into use to keep the presentees cool up to the last moment prior to their entering to curtsy before the king and queen. Among these innovations were little ice boxes, installed in the limousines, both to cool the interior of the vehicles and conserve the freshness of the bouquets during the wait of two or three hours in the Mall, where the machines line up for their turn at_the palace doorway. Indications were this morning, how- ever, that the debutantes would have to use foot-warmers in their cars to- night instead of ice boxes. Numerous dressmakers worked most of last night attending customers desiring last-minute changes, introducing furs and velvets in place of the embroid- ered shawls first provided. In addition to the 13 debutants and matrons to be presented tonight by LADD RITES HELD; SENATOR EULOGIZED Body to Remain Here Until Widow Recovers—Interment May Be in Maine. Simple funeral services for Senator Edwin F. Ladd of North Dakota, who died Monday in Baltimore, were held today at an undertaking establish- ment. Only members of the family, intimate friends and a congressional committee of honor attended. The body was placed in a vault at Glenwood Cemetery until Mrs. Ladd, who collapsed after the death of her husband, is able to accompany the hody from Washington. While an- nouncement had been made that in- terment would be at Fargo, Mrs. Ladd now is undecided whether burial will be there or in Maine, the Senator's native State. The funeral services at 2 p.m. were conducted by the chaplain of the Senate, Rev. J. J. Muir, assisted by Rev. Thomas C. Clark, pastor of the Takoma Park Presbyterian Church, which the Senator attended. CHEMISTS INDORSE_ FOURTEEN SCHOOLS National Body Lists Institution Whose Course It Considers Satisfactory. By the Associated Press. PROVIDENCE, R. I, June 25.— The American Institute of Chemical Engineers, in convention here, today adopted the report of the committee on chemical engineering education, recommending the following 14 schools be rated as giving satisfactory courses in that field: Armour Institute, Car- negie Institute, Case School of Ap- Columbia University. Towa State College, Massachusetts In stitute of Technology, Ohio State Uni- versity, Brooklyn Polytechnic Insti- tute, Yale, Rensselaer Institute, and the Universities of Cincinnati, Mich- igan, Minnesota and Wisconsin. It was voted to hold the next con- vention in December at Cincinnati. The Summer session will be at Berlin, N.H. Dr. F. W. Frericks of St. Louls resigned as treasurer and Dr. H. M. Ippner of Jersey City was named to fill the vacane: Chiapas Women May Vote. Correspondence of the Associated Press. TUXTLA GUTIERREZ, Chiapas, Mexico, June 5.—Supported by Pro. visional Gov. Cesar Cerdova, a bill has been passed by the State Legisla- ture granting women equal political rights with men in state affairs. Chiapas is the first State of the Mexi. can Federation to grant woman suf- frage. e could do very much toward creating and maintaining a determination on the part of legislators to relieve the country from this unhappy and un- fortunate situation, The speaker prefaced his remarks with a glowing acknowledgment to Chauncey Depew, and I. A. Fleming, veteran financial writer of The Star, both of whom were in the audience. The former he characterized as an “Inspiration to America for many years,” and the latter as “one Avho had done so much for his community A special prayer was offered prior to the business session this morning for the hasty recovery of Albert S. Gatley, afflicted treasurer of the as- sociation, who is absent for the first time. Some of the most constructive thought yvet brought out at the con- vention was offered this morning, with the reading of three essays, a discus- sion of “Opportunities for Employes to Gain New Business and Create Good Will for the Bank.” The three papers read were adjudged best of many sub- mitted in an invitation contest offered to the Washington Chapter, American Institute of Banking, the successful authors being the guests of the bank- ers during the conclave. New business can best be gotten for banks through the medium of effi- clency, clear thinking, intellectual honesty, common sense and unerring knowledge of human nature, in the opinion of Ross E. Pollock of the American Security & Trust Co. “Courtesy,.cheer and good will in an office force promote good harmony and co-operation,” was a telling remark of Mr. Pollock’s. On the other hand, he sald, arrogance or incivility, gives a bad impression of the bank's disci- pline. William M. Seay likened the finan- cial institution to a chain, namely, it is no stronger than its weakest link. Mr. Beay, assuming bank employes are rich in both character and strength, submitted a questionnaire consisting of “Do the directors and stockholders keep their own and fam- ily actions in this bank? Do they bring in new business as often as possible? Are they thoroughly cogni- zant of the many different depart- ments and services which their own bank has to sell? Are all the officers and clerks aware of the services which the bank offers the public, as well as the names of those in charge, the lo- cation of the departments and the cost of such services to the public?” The essay of H. T. Bisselle of Riggs National Bank, which took first prize and which has aiready been made public, was on every department of a modern bank. Mr. Bisselle stressed salesmanship in the bank. There is & great difference, however, in selling a bank and in seliing some specific com- modity, the speaker obs¢rved, e Mrs. Alanson B. Houghton, wife of the American Ambassador, -8 other Ameri- cans are to curtsy to their majesties tomorrow evening, being presented in the general circle. They are: Miss Louise A. Boyd of San Francisco, Miss Elaine Wilcox of Denver, Mrs. William Grant of Den- ver, Mrs. George de Benneville Keim of Philadelphia, Mrs. Frank Mebane of Spray, N. C.; Mrs. Claude A. Swan- son of Washington and Richmond, Va.; Mrs. Eliot Wadsworth of Wash: ingfon and Boston and Mrs. Horace Lee Washington, wife of the consul general in London. Tonight's presentees are: In the general circle—Miss Jean Elizabeth Baldwin of New Jersey, Miss Violet Burd Grubb of Burlington, N. J.; Miss Rosalie ans of New York City, Miss Florence Pratt of New York, Miss Helen Sheldon of London, Miss Annie Laurfe Warmack of St. Louls, Mo.; Mrs. Cass Gilbert of New York and Ridgefield, Conn.; Mrs. H. A. Murray of Boston and Mrs. Bertrand H. Snell of New York and Washington. In_the diplomatic circle—Mrs. Shel- don Whitehouse, wife of the counselor of the American Embassy in Paris; Mrs. Donald McDonald, wife of the military attache in Brussels; Mrs. Ed- ward Crocker, wife of the third secre- tary of the embassy in Rome, and Mrs. Charles Moore, wife of the military at- tache in Paris. ITALY WILL SETTLE DEBT TO U. S., SAYS ENVOY; ASKS TIME (Continued from First Page.) repayment of European borrowings in order to reduce American taxes while insisting that “impoverished” coun- tries like Italy should pay more taxes for that purpose. Asks “Breathing Spell.” Italy, in short, demands supergen- erous terms from the United States, on the ground that no other recourse is open to her. The Italians expect to reap full advantage from President Coolidge’s dictum on the debts, enunct- ated in his message to Congress last December. The President declared that “terms and conditions may have to conform to differences in the finan- cial abilities of the countries con- cerned.” On the basis of ‘“capacity to pay” Italy is prepared to fund her huge obligation to the American Treasury, but holds out no prospect at the funding can be either on a h or an immediate basis. The Italians insist they require a prolong- ed “breathing spell,” as well as con- cessions in terms. By this they mean a moratorium that may run for 10 vears, and a reduction in interest ates at least to the 3 and 314 per cent, rates granted to the British when their debt to us was readjusted two years ago. Secretary Mellon recognizes the reasonableness of the Italian position and the good fight that the Mussolini administration is making to keep Ital- ian finances on an even keel. Favor- able impressions on this score were derived in Rome this Spring by Thomas W. Lamont of J. P. Morgan & Co., which has just granted Italy an emergency gold credit of $50,000,000. Another American, not without im- portance in this connection, who also has up-to-date information on Italian finances, is Frank W. Stearns, Presi- dent Coolidge’s great friend and Sum- mer neighbor at Swampscott, who was in Rome when Lamont was there. Internal Debt Reduced. The Italian treasury report of May 31 showed that the internal debt dur- ing the past year was reduced about 1,500,000,000 liras. It is firmly ex- pected that the national budget end- ing June 30 will show that it is bal- anced. Ever since Mussolini obtained power in 1922 his efforts have been systematically bent in the direction of budget-balancing. A desperate situa- tion was Inherited from the regime which the Fascist government super- seded, and it is agreed on all hands, even by Mussolini’s political foes, that he and de Stefani have accomplished financial miracles. But they assert they are still far from the point where it would be physically possible for Italy to fund the American debt in the form of actual liquidation. Italians have intimated that in ad- dition to actual debt concessions, they would ask for special tariff rates on their exports to the United States, in order to facilitate the acquisition of gold or its equivalent. Similar de- mands are to be made of England, it is reported. There’s not likely to be much encouragement of such expecta- tions in Washington. (Copyright. 1925.) TIME RIPE FOR ACTION. World Credit at Stake, Body Is Told. By the Associated Press BRUSSELS, June 25. — John O'Leary, vice president of the Chi- cago Trust Co. and -hairman of the Chamber of Commerce of the United States, today told the International Chamber of Commerce in convention here that American business men belleve the time has come for the settlement of the interallied debts. “The restoration of confidence,” he sald, “lies in the assurance that all nations ~ will meet their financial obligations.” He said the position taken by the United States Government on this question reflects the will of the American people. He expressed re- sentment at statements that Amer- icans are mercenary and are seeking to profit by the misfortunes of Eu- rope. He said the success of the United States is bound up in the suc- icess of Europe and the rest of the world, and that the essential thing everywhere is confidence. Hits All Credits. “There can be no confidence in in- ternational business agreements,” he added, “it governments fall to recog- nize their obligations. “The precedent of non-recognition of governmental obligations is more dangerous to the debtor than to the creditor.” Mr. O'Leary said Americans be- lieved in the Dawes plan. He de- cried the note of pessimism which has been heard here regarding the lan and said the belief in the nited States is that it will hasten the world's economic recovery. Me pointed to the stabilization of the German mark as the first tangible effect of the importance coming from the plan. Lost by Inflation. The people of the debtor nations in Europe have been obliged to pay through inflation more than they would have paid without inflation in direct taxes sufficient to settle their war debts, Mr. O'Leary asserted. “The people of those nations, said, “are now faced with greater ob- ligations than in 1919, and they have much less strength to carry the bur- den.” He saild the real meaning of the Dawes’ plan has been misunderstood and that whatever may be the dif- ferences of opinion concerning it, one thing is certain. that it has created machinery by AR reparations pas- Commerce JUNE 25, 192 SYSTEM OF TAXES | CALED OBSILETE Finley Makes Plea for Re- vision Before Bankers of South Carolina. By the Associated Press. GREENVILLE, §.-C., June “The Treasury, like the business world, views taxation largely as a business problem. It is interested primarily in the extent to which rates | actually produce revenue,” said David | E. Finley of the War Loan Staff of | the United States Treasury, address. ing the twenty-fifth annual conven tion of the South Carolina Bankers' Association here today. The Treasury official then pointed out that “we are still operating under an obsolete system of taxation evolved | during the war to meet conditions | no longer exist.” Secretary Mellon, said Mr. Finley, in urging tax reform, “is actuated solely by the conviction that our present system is unnecessarily com- plicated, inefficient as a revenue pro- ducer and threatens to become a drag on business and development.” Democrats Are Quoted. Mr. Finley read to the bankers quotations from Senator Carter Glass of Virginia, a former Secretary of the Treasury; former Secretary IHouston, Senator Oscar Underwood of Alabam: and the late President Woodrc Wilson to the effect that excessive surtaxes are a distinet disadvantage to any government. “In 1919 President Wilson reported to Congress that “there is a point at which In peace times high rates of in- come and profits taxes discourage en- ergy, remove the incentive to new en- terprise, encourage extravagant ex- penditures and produce industrial stagnation, with consequent unem- ployment and other attendant evils.’ " The speaker then quoted from Presi dent Coolidge’s address in New York last year, from Undersecretary Win- ston’s talk in Chicago a year ago and from the speech of Secretary Mellon to the Richmond bankers in March, to show that the Republican tax plat: form differs lttle from the expressed Democratic views. Touching on the tax question with particular reference to the South, Mr. Finley said: “In the South it is vital that capital should seek business investments and build up cotton mills, railroads and other productive enterprises, rather than lie inactive in county and mu- nicipal bonds. Capital Leaving Busines: “At the present time capital is more and more tending to leave business and go into less productive forms of investment. This is on account of the combination of higher surtaxes and tax-exempt securities. “There are only two remedies for this situation. The first is to pass a constitutional amendment prohibiting future issues of tax-exempt securitie: Secretary Mellon and the Treasu have frequently recommended the pas- sage of such an amendment. “But there is no immediate prospect of a constitutional amendment being passed. Under these circumstances, there is obviously only one course to pur- sue—that i3, to reduce surtaxes to a point where capital will find it worth while to remain in active business and pay the tax rather than go into tax- exempt bonds. Death Tax Revision Needed. “The second objective in tax reform involves a revision of the death taxe Both the Federal and the State go ernments are attempting to exploit this field of taxation. The result is that estates, with widely scattered assets, are frequently subjected to overlapping and confiscatory taxes. re- sulting in a depletion of capital, which must ultimately have a serious effect on the countr: development. “Tke inheritance tax is essentially one which should be levied by the States. The property taxed is located in the States, and its transfer to heirs at death is governed by State, not Federal laws. “Both President Coolidge and Secre- tary Mellon have advocated that the Federal Government retire from the fleld of death taxes and leave those taxes to the States.” FAMILY ESCAPES DEATH AS YACHT CATCHES FIRE Alfred H. Wagg, Wife, Children and Others Forced to Leap Into® Water in Night Clothes. By the Associated Press. NORFOLK, Va., June 25—Leaping for life into the waters of Chesapeake Bay from their blazing 70-foot yacht, the Clare, Alfred H. Wagg, com- modore of the Palm Beach Yacht Club, his family and the crew es- caped almost certain death when two minutes after they hit the water flames ignited a gasoline tank, caus- ing a terrific explosion which threw burning brands for rods around. Aroused from sleep by the captain’s shout of “fire,”" they were forced to flee in their night clothes, saving nothing except a small bag of jewelry which Mrs. Wagg seized as she made her way to the deck. Distress signals were heard by the tug Augusta A. Denhart of Baltimore, which came alongside in a few minutes and res- cued the imperiled group, some of whom were struggling in the water. Mr. and Mrs. Wagg, 12-year-old Al- fred Wagg, III; 3-year-old Margaret Elizabeth Wagg and her nurse, Louis Hockey, composed the family party. The rescued party was taken to Yorktown on the tug and motored from there to Norfolk. — e LA FOLLETTE ESTATE ESTIMATED AT $39,000 Senator's Widow Sole Beneficiary. Property Valued at $68,000, ' With Debts at $20,000. By the Aseociated Press. MADISON, Wis., June 25.—Senator Robert M. La Follette’'s will, offered for probate today, names his widow as sole beneficiary and executrix. The Senator’s debts, including the mortgage on the homestead, are esti- mated in the petition at $29,000, his personal property at $20,000 and his real estate, which is the homestead, at $48,000. —— ments may be assembled. He added there is strong hope that means will be found by which the reparations funds may be distributed. ‘The settlement of all war obliga- tions will restore confidence and re- ’"fi' vast sums for investment, he said. Needs Liberal Terms. Former Minister of Foreign Affairs Jaspar, discussing the Poulet cabl- net’s ministerial declaration in the Chamber of Deputies yesterday. said it was necessary for the United States to give Belgium better terms in the payment of her war debt than were given to Great Britain. ““The United States must grant us better conditions than she did to Confers on Debts ), whi Mario Alberti, Italian banker, who, with Ambassador de Martino, con- ferred today with Secretary Mellon and Undersecretary Winston, thus formally starting the settlement of the TItalian debt to the United States. ARMS PARLEY CALL 1. PRERDEATE Chamberlain Tells Commons That Invitation Should Come From Washington. By tha Associated Pres: LONDON, June #-Forelgn Secre- tary Chamberlain’s declaration that Great Britain would join with the other great powers in further limit- ing naval armaments or reducing land forces, and his intimation that the initiative for the naval conference should come from the United States were regarded today as the features f his statemen n the Ho of Commons last t during bate on the security pact The intiative in calling any inter- tional gathering to consider re-| duction of land armaments, he said, might properly come from either the United States or Great Britain, both of whom had already reduced their land forces “to a scale no larger than police for the interests which we have to guard.” As regards a naval conference, the invitation might better come from the United States, as that power had | been responsible for summoning the Washington conference, which re- | sulted in the first international agreement for limitation of arma-| ments the world had ever seen. Must Allay Fears, He Says. Thé foreign secretary ed for Parliamentary support of the pro-|tle on several drives. F posed security pact to guaraniee the frontiers between Germany, F and Belglum on the ground t would dispel fear and be a great toward peace and disarment ear dominates the whole posi-| tion of the world and the attitude of | every country,” he said. Every- where, among the conquerors no less | than ‘the conquered, there is the| psychology of the vanquished British government is trying to find | a way No among could be claring: ¢ out of this unilateral the allies imp. pact e. added must be mutual amo whose past differences pr , 1o main- tain peace in the future and to avoid recourse to war.” The newspaper commentators this morning take the view that the com mons debate on security has removed certain doubts and fears which previ- ously troubled the publi ind garding the Europes problem. The Times remarks that the debate was in accordance with the best tra ditions of the House, rising above mere party controve While the anti-gov insists that some obscurities still re. main and that the question of the British obligations must be watched closely, no disposition is manifested in this quarter to ha to gov- ernment in its delicate task of seek- ing an ultimate agreement. On the whole, in view of this re. ception of the debate, the security proposal seems to have received a favorable push, in the direction of parliamentary adoption. BODY OF EX-SERVICE MAN UNIDENTIFIED AT MORGUE Burial in Arlington Refused, Le- gion Will Give Military Funeral to Drowning Victim. Numerous persons have visited the morgue in an effort to identify the body of the man found floating Little River early vesterday morni None of them was successful, how- ever, and unless it is identified by tomorrow it will be turned over to Willlam F. Franklin, representing the American Legion, who will arrange details for its burial. Unless the body is identified in the next day or two it cannot be buried at Arlington. It is taken for granted by American Legion representatives that he was a soldier or sailor cause he wore one of the copper emblems given honorably discharged service men. Arrangements will be made for the interment of the body Cemetery with full military honors either tomorrow or Saturday. There will be a firing squad and bugler and a chaplain of the Legion will read the burial service. FOUR THOUGHT DROWNED. Miners Believed Killed by Sudden Flooding of Shaft. WALLACE. Idaho, June 25 (#).— Four men are believed to have been drowned in the Ajax mine at Burke, Idaho, vesterday, when miners broke through the wall of an old shaft and thousands of gallons of water poured in on them. A 70-foot wall of rock and mine debris, besides the water, checked efforts of rescue crews to reach the trapped men. Mine officials have abandoned hope of saving two of the men. Rescue crews late today had failed to break through the debris. The entombed men are approximately 6,000 feet from the tunnel portal. S PRISONER BLAMES WIFE. NEW YORK, June 25 (#).—Ar- rested as a fugitive from justice, Henry A. Rand, Detroit architect, to. day told the police he was a victim of the spite of his wife, to whom he had turned over his business and property worth more than $35,000 before com- ing to New York to start a new home. Rand_was arrested at the request of rnment press Great Britain, otherwise Belzium can- mot Nve,” declared 3. Juspar. the Detroit police, and was held in $1,500 b3 to await extradition papers. b [ hole was dez o | anoth “Germany | de- | co inl be- | in Cedar Hiil { | were MAG SITH'S 145 T0PS BRITISH OPEN Breaks Course Record on Second 18 With 69. Barnes Gets 147. By the Assoctated Pres PRESTWICK, June 25.—Returning a card of 69, a new course record, fod his afternoon round in the British open golf championship, Macdonal Smith, American professional, w for the 36 holes played today, took the lead from Long Jim Barnes, who rr-g Smith had 76 on his mornin Smith plaved brilliantly and on severg arate greens got down in one put on the others he never neede nore than two. Other leaders for the 35 holes areg T Fernie, W. H. Davies and S. Wine each with 1 o} or, Abe Mitchell and Ted Alex Hurd, 154; George Duncan, 136, and J. I. Cruickshankg 158. \Gets Hole in One. The veten'n J. H. Taylor, five time winner of the British open, holed h drive to the yShort second this aftere noon The hole me\'sures only and Taylor dropyed a m the green, the Iwtll r for the cup. Thid one accomplished ¥1 pionship nce the heid at Sandwich in It was the tenth golfing career that ' the thrill of making a hoke in one. caddy, in accordance with the Scottish custom, will have a bottle « whisky to take home tonight Barnes Also Sets Record. Barnes, American professiona brought in a 77 for the second round to add to his morning card of 70y which was the lowest for the opene ing 18 holes. Barnes' first round score & a new record for the Pres course, breaking by two_strol previous low score of 72, made James McDowall of Pr His card for the rec round was Oout— 4 118 ¥ hie shot on aighy first hole in an open tourname a2 Ane in his 1 2 hor experie ris, sef K then by the de-|In— Barnes’ afternoon Out— 4 3 5 4 In— 445 Joe Kirkwosd a 79 for the second ro an aggregate of 162 1 e played today. He had an first round Kirkwood’s Cards. First round Out In Second Out 3 In 4 3 43445 b 4444 Putting Is Praised. Except for being off the line a nes weng around the course in flawless fashion, approach shots were remarkable, in view of the hard-baked the turf. a condition w! e found not to the! putting, expert observ the best ever seen in a I nat aid. was jritish chame | pionship. Barnes had four birdles during the His second shot to the sixth d for a birdie 3 lost the seventh, picked round a stroke ish. where he sank arnes was badly bi enteenth and took four to reach the > yards gave him the home green Followed by 8,000. > Paired with the veteran Alex Herd, Moor Park, ional, Barnes was followed by a gallery which sometimes numbered more th His shots watched his struggle for low oon round being the cent n of the Prestwick s encountered some ha several well hit trouble because fairways and gre coveries, however, were i Fully half the field failed 80 this morning including the W combe brothers, Cyril Tolley Arnold M George Duncan had . Harry Vardon, 79: Arthur Haver A. Compston, 76, and Alex Her ns. CONSECRATION SERVICES FOR BISHOP HAFEY HELD Archbishop Curley Presides at Cere- mony at Baltimore—New Prel- ate Goes to Raleigh. By the Associated Pre IMORE. Md., June 25 R 3. Hafey was ca rated the first bishop of the new! ed diocese of R N, ¢ the cathedral yesterday Michael crating pi M. O'Leary of Sprin, Bishop Michael J nah, Ga., acting as hop Hafey is a { Springfield new dutles July 1 Bishop Hafey's parents, Mr s, James J. Hafey of Chicapes his two sisters, Mis: A. and Rosa M. Hafey « and his two brother of Ch pee and Fran of Miami, Fla, were present Bishop Keyes and Bishop Patrick J. Barry of St. Augustine, Fla w preside at the installation ceremonies at Raleigh_on July 1 Tonight Bishop Hafey will ficate at solemn benediction of tha blessed ssacrament at St. Joseph' Church here, his first participation in an ecclesiastical function. hop, Thom Db, nseeraton native of the dir He ®1I assume 1. ponti- SALESMAN EXONERATED. Court Directs “Not Guilty” Verdict for William J. La Varre. Justice Siddons in Criminal Division 1 has directed a verdict of not guilty in the case of William J. La Varre, @ ock salesman charged with false pre- tenses. The prosecution claimed that La Varre had secured more than $10,000 from Mrs. Sarah Pinkerton by mis- representing certain stocks to her. At the conclusion of the cas for the Government, Attorney J. H. Bilbrey, for the defendant, asked an instructed verdict, claiming the prosecution failed {o prove false pretenses. court granted the motion. — o ‘Women in Anniversary. Women of California have been re- quested to wear gowns of Spanish design with a red. green and gold color scheme, for the six weeks im- mediately preceding the - diamond jubllee to be held next September in celebration of the seventy-fifth anniversary of California’s statem hood-