Evening Star Newspaper, December 9, 1926, Page 1

WEATHER. (U. S. Weather Bureau Forecast.) Rain tonight a temperature tomorrow; minimum tem- perature tonight Temperature—Highest, esterday: lowest, 34, at noon to- am. y ds "ull report *#(losing N.Y. Stocks No. 30,172. s omee, Wi nd tomorrow; rising about 33 degrees. 50, at 6:15 on page 9, and Bonds, Page 14 Entered as second class matter ashington, D. C. @b WASHINGTON, D. €., THURSDAY, DECEMBER 9, 1926—SIXTY PAGES. - BATILE IN SENATE {ORMISTON, ELUSIVE RADIO MAN CASE, ¥CAPTURED IN McPHERSON ON VARE AND SMITH raen o i ut e s LAUNCHED BY DILL Calls on Members to Refuse} to Accept Credentials, Due to Slush Charges.. REED’'S II;IVESTIGATING COMMITTEE UNDECIDED Action to Be Taken in Massachu- 4 setts Situation Also Is Undetermined. F GOULD LINCOLN. War on the seating of Senatorse elect William 8. Vare of Pennsy @nd Frank L. Smith of Illincis opened in the S tody Resolut Dill of W ins were offered by Senator s<hington, a Democrat, di- recting officials of the Senate to de- cline to receive the credentials of cither Vare or Smith, on the ground that, by excessive expenditures -of money in their primary campaigns, they had disqualified themselves. s D ked that the resolu- tions lie on the table, so that he could get them up for early consideration action A esutions are not premature, Ashurst of Arizona, Demo- \sisted. He pointed out that the present law and rules of nate Senators-elect whose e~ dentials have been refused, but who have not had an opportunity to take the oath of office in open session, are of the Senate and Would Keep Them Off Rolls. Under these conditions, Senator Ash- urst said, Vare smith would be- come de facto Senators after March 4. Senator Dill insisted that the pres- ent Scnate has the right and power to declare 1d Smith disqualified, and to prevent the receipt of their credent In this w i would be to p ing placed on the rolls of the Senate. Senator Diil pointed out that the hearings before the Se slush fund headed by Senator Reed Juti, had revealed the fact that upward of $800,000 was expended to procure the nomination of Mr. Vare for the Senate and more than $400,000 was expended to nominate Col. nith in_Dllinois In addition, he vealed that Samuel raction magnate, had contributed $125,000 to the Smith camp: while Smith was chairman of the Public utilities com- on of the s enator Dill decl of Mr. Vars are corruption and inls. assible d been re- are dticky have been abie to itor Dill, “there is or the presentation of i 1 pre- rd tc 1id cedent suc no yesolut sented th Vare mith because their are unusual and different. The + appuinted a_committee to in - the expenditures in the pri- ction by which they were ; comuittee has held - evidence is undis- Action Demanded. f the spirit of free L "O'Jan- shaft and sent the cage to the o the per- institutions that e shou ak nd by a_de- of the Sen- re they ever introduction these resolu- unless they etracked, will ually precipitate the contest over Vare and s in the pres although they emselves until the tions are s over the th sh fund » got under way together by its the commit investigat from sev cluding Massachusett Senatc i that no that the rirman, r the meeting en reached and would meet again to go further into it ssion of the r of Bos- by mmittee s made in behalf William Butler, Republican national enate Valsh, of former chairman ¢ committee, zainst Democra Four Members Present. Four of the committee were five members of the present, Senators King_of The te of fifth. member Wi nas nsin. ¢ not yet returned to Washington. 1 question whether t the seatin of Senator- of Tlinois, should he be to fill the vacancy cau death ator McKinley, Senator Reed did not wish to make any at this time. Smith, 1 . has not been appointe not the matter of se nid .}n stater Reed nois_Republ The investi i thor- ex- the 11 oughly. pected. w regarding it is toward Samuel traction magnate, ited more than $100,000 n of Senatorelect who refused to answer + questions put to him by » during the investiga- cour tion in Illinc 0'Connor Action Also Likely. the refusal of of Philadelphia stigation of the election elect Vare, and the cases of other witne clined to answer questions. The : ent of Col. Smith by Gov. of Tllinois to fill ised by the death of McKinley would pre- cipitate, in all probability, a struggle over the seaiing of Smith. The strug- gle mizht last long enough to prevent the passage of some of the appropria- tion bills before March 4 and force a special session of the mew Congress next Spring. This would run counter 10, the wjshes of Republican leaders. ‘Word has been sent to Gov. Small ~ (Continued on Page 4, Columa 4) Stat | red the crededitials | gas formation, may not be known for tainted with political | several v with | e determination | es who de-| Throughout Nation Ends in Harrishurg, Pa. “Spirited Away,” Says Chief of Police, as Detectives Leave With Captive. By the Associated Press, HARRISBURG, Pa., December 9.— Kenneth Ormiston, missing radio op- erator, wanted in connection with the Aimee Semple McPherson kidnaping case in Los Angeles, left here this morning for Chicago in company with Charles Ellwood and Harry Donnelly, private detectives, of Chicago, accord- ing to Chief of I’olice Joseph Thomp- son. Ormiston, in company of the two detectives, left the Penn-Harris Ho- tel, where, the trio spent the night, }in an automobile. The chiet of police said he had no knowledge of their destination other than that the party was heading for Chicage. Chief Thompson expressed the opinfon that Ormiston was “spirited away,” but admitted that Detective Oscar Carson, who was with the Chicago officel said Ormiston declared he was sati fied to return after he admitted his identity. The party left here in a taxicab and officials of the taxicab company KENNETH G. ORMISTON. said they did not know its destination. They said that Detective Carson vouched for its safe return. The detective declined to discuss Ormis- ton’s departure. Ormiston was apprehended between 9 and 10 o'clock last night. He was found in a rooming house on South Front street, a location_overlooking the Susquehanna River. He had been living there under the name of “F. Lininger” and was surprised when the officers dropped fn on him. He told them he had been in Harrisburg about two months, coming to this city (Continued on Mage 5, Column 2.) 20 FEARED DEAD | INMINE EXPLOSION Only Half of 69 Entombed by Indiana Blast Brought Out of Pit. By the Associated Press. PRINCETON, Ind., December 9.— Rescue crews at noon today predicted | that the dead in the explosion early this morning in Francisco mine No. | might total 20. They based their con- clusion on the fact that only one-half {of the 69 men who were in the shaft {brought to the surface. The rescue forces were adhering to ithe rule of their training—to disre- i gard the dead until all the wounded 1 been removed and given medical i attention. { As a result, the toll of the blast, which occurred at 6:20 a.m., from hours, it,_ Every available ph { was rushed from Princeton to the { scene of the explosion. Jack Ogilvie, | director of mine rescue work in the | Knox County coal fields, was ordered | to rush rescue equipment to the scene. | The mine had been operating under | a receivership for some time, employ- ing 300 miners. Of the 68 men who were in the | mine when the blast occurred, 32 had ! been brought to the surface, each | suffering from injuries. Others who were not hurt remained below to as- | sist in rescue work. |" The explosion occurred at o'clock this morning. The explos which was believed to have caused by gas, blew the top off the { top of the mine, Rescue forces said they were hav- ling difficulty in locating the miners. | The Francisco No. 2 is one of the | 1argest mines in the State. 'BANK CLERK GIVES UP 'IN $100,000 SHORTAGE .| Memphis Man Returns on Hearing Assistant Cashier Had Com- mitted Suicide. | By the Associated Press | "MEMPHIS, Tenn. December 9.— {Rush H. Parke, American Savings | Bank clerk, who disappeared a week {ago just before a shortage of approxi- ! mately $100,000 was found in his ac- | counts, surrendered to police today. | He phoned J. F. Hunt and I H. | Wilson, bank examiners, and told |them he wanted to surrender. The | examiners had policemen sent to him. |, Parke appearance was followed by the suicjde of the assistant cashier {of the haflk, Clarence Henochsberg, ]\\'hfl,?m. himself at his home Tues- nd the closing of the American Savings Bank came the same day. | The institution is now In the hands {of a receiver. Before he Kkilled him- {self Henochsberg said he was short $300.000, and begged Abe Plough, | Memphis capitalist, to replace the amount before it was discovered. Mr. Plough told Henochsberg that he {would try to help him, but the banker hot himself before Plough could ach him. g | Whether there any connection | between the shortages is not known. | Parke._ acting on the advice of his at- torney, refused to talk to newspaper | men after his arrest. | “Parke is said to have told the officers who arrested him that he fled {to New Orleans, returning to Memphis when he heard of the suicide of the {assistant cashier. BLAS'FWRECKS HOUSES. Explosion in Mexican Town Laid to Criminal Origin. MEXICO CITY, December 9 (P).— | An explosion, with an unknown num- | ber of casualties, occurred in the com- mercial district of Monterey, capital of Nuevo Leon State, last night. Dis- patches say it is believed to have been of criminal origin. Two houses were destroyed and five seriously damaged. Bergdoll Denies U. S. Trip. ‘WEINSBERG, Wurttemberg, De- cember 9 (#).—Grover Bergdoll, the American draft evader, has arrived at when the explosion occurred had been | ALBANIA RATIFIES PAGT WITH ITALY Rome Continues to Deny Any Overtures to'Jugoslavia for Another Treaty. By the Associated Press. TIRANA, Albania, December 9.— The treaty of friendship and security between Albania and Italy, subject of censure in Jugoslavia, has been rati- fied by the Albanian Chamber. Alliance Plans Denied. ROME, December 9 ().—Semi-offi- cial denial was given today to the re- port through Vienna yesterday that i ssolini had suggested to the Jugoslavian minister in Rome that Jugoslavia negotiate a treaty with Al- bania similar to that negotiated by Italy. The premier has not even seen the "Jugoslav minister, it was- stated. The Vienna report, quoting Belgrade advices, said the suggestion attributed to Mussolini envisaged a “triple al- liance” of Italy, Jugoslavia and Al- bania, Official quarters continue to answer criticisms of the treaty from abroad by stating _most emphatically that the pact, signed on November 27, is per- milar to the treaties of friend- tions. It is a treaty concluded in a condi- tion of absolute equality between the two contracting powers, officials say, this excluding the possibility of tute- lage one over the other. Through it Italy does not mean to interfere in Balkan policy, but wishes, as in her treaty with' Jugoslavia, to render peace in the Adriatic sure and stable. The suspicion is voiced that Jugoslavia took the treaty as a pre- text to justify a change in policy toward Italy, - Greece Is Waiting. ATHENS, December 9 (#).—Greece has adopted a policy of watchful wait- ing in the political situation caused by the recently signed Italian-Albanian treaty. Foreign Minister Michalakopulos today stated that. his government views the treaty calmly and is wait- ing to see what interpretation will be given it by the contracting parties and the great powers who guaranteed the independence of Albania in 1921. He said that Greece would then regulate her attitude in accordance with such interpretation. Jugoslavia to Change Policy. BELGRADE, Jugoslavia, December 9 (P).—The Jugoslav government has ‘brought pressure to bear on the Al- banian government in connection with the recently signed pact of friendship and_security between Italy and Al- bania, and officials here had asserted the belief that the Albanian Parlia- ment. probably would not ratify the pact. The crisis brought about by the resignation of the cabinet of Premier Ouzounovitch is still unsettled. There is now a possibility that the veteran statesman, N. P. Pachitch, who was prime minister several times, again will take his portfolio with Democrats in_a coalition government. A But whatever combination takes office, and whether the foreign minis- try will be presided over by Voja Marinkovitch, or Dr. M. Spalaiko- vitch, minister to France, who is now on his way here, it is said the forelgn policy of Jugoslavia will be fundamentally changed. It is asserted that instead of former Foreign Min- ister Ninchitch's plan for establishing closer and_ friendlier relations with taly, toward France and her Balkan neigh- bors, while maintaining a correct, but reserved attitude toward Italy. GOULD MEETS PRESIDENT. Declines to Discuss Investigation of Bribery Charges. By the Assoclated Press. Senator Gould, Republican of Maine, was presented to President Coolidge today by his colleague, Senator Hale. The new Senator declined after the 1 to discuss the pending Senate in- vestigation of stories that he had paid money to Canadian officials in connec- tion with a railroad contract. Crossing Hazards Reduced. NEW YORK, December 9 (#).— Flashing lights and clanging bells have been added by the Long Island this Swabian village, 25 miles north of Stuttgart, with the apparent inten- tion of taking up permanent residence. Bergdoll declared he had no intention 9f returning to the United States, Railroad to its protective crossing equipment. Recently an unheralded official tour of the danger points re- sulted in an official report that 18 watchmen were asleep at their posts, Jugoslavia's policy will lean ! ¢ Foeni WITH SUNDAY MORNING EDITION DOHENY SAYS WAR ' SCARE: MADE HIM TAKE OIL CONTRAGT Alarmed by Picture Admiral Robison Drew of Pacific Defense, He Adds. $100,000 LOAN TO FALL CALLED FRIENDLY ACT Magnate Preceded on Stand by Wife and Son TeHing of Aid Given Secretary. Describing in graphic fashion the patriotic appeal made to him by the hen Rear Admiral J. K. Robison, chief of naval engineers, Edward L. Do- heny, co-defendant with Albert B. Fall in the Government’s oil conspiracy case, late today told the jury that he was so worked up over the Navy's preparations to resist a feared Jap- anese invasion from the Pacific that he consented to undertake construc- tion of oil fuel tanks at Pearl Harbor to strengthen the Hawalian base against attack. Mr. Doheny declared that Admiral Robison had told him that President Harding and Secretary of State Hughes had called the disarmament conference, then in session, because of “Japanese gestures’ in the Pacific. ‘The oil man gave a vivid descriptior of Admiral Robison’s appeal to him to help the Navy out of the situation that threatened a ‘“reign of terrorism” should Japan invade the Pacific Coast. “He got me so worked up over it, and | I still am,” said Mr. Doheny, “that I gave him assurances that my com- pany would make a bid.” = ! Believed Mobilization Near. The oil man told the jury that he had been led to believe that orders already had been issued for mobiliza- tion in the Pacific to offset any steps that Japan would make. Without a large fuel base &t Pearl Harbor, Admiral Robison had told him that the American Navy would be at the mercy of any fleet in the Pacific bent on invasion. Robison was very earnest and urgent, the witness said, and told him that the proposed oil reserve sup- ply at Pearl Harbor would more than double the value of the fleet. Without this fuel base the witness said he had been told the ships could not move. Doheny told the jury what seemed to be a frank and complete story of the $100,000 loan to Fall. Mrs. Doheny, the oil magnate's wife, had told the same story to the jury a little earlier and produced in court Fall's signature to the mutilated note .which forms one of the vital connecting links in thé Government's conspiracy charge. Attorney Frank J. Hogan, Fall's chief counsel, put the witnesses upon the stand as a forceful touch to the day's proceedings. Edward L. Do- heny, jr., the oil man’s son, had gone on the stand earlier and bore out the | testimony of his father with regard | to having taking the $100,000 in cash to Washington. Security for Loan. The defense brought out for the first time that Fall's $100,000 demand note was secured last year with one- third of the stock of the Tres Ritos Cattle and Land Co., which is the concern Fall organized after the pur- chase of the Harris ranch. The cer-| tificate of stock was introduced in evidence by Mr. Hogan. b The Doheny who testified today was a different man, physically, from the impetuous Doheny who defied Senators at the oil investiga- tion in 1924, when he first told of the loan to Fall. Suffering from an infected arm, which necessitated two operations, Mr. Doheny bore up exceedingly well under the strain, and in simple, direct fashion outlined what took place be- tween him and Fall with regard to the loan for the purchase of the Har- ris ranch at New Mexico. Says Fall Asked Cash. He explained that the $100,000 was delivered to Fall in cash at the latter’s own request; that the transaction was one in which he thought only of ren- dering assistance to an old friend. He graphically described the mutilation of the note, explaining that he had torn off the signature when he and his wife were prepared to return to Los Angeles, so that in event of his death payment could not be wrung from Fall by the executors of his estate. . “I do not want it to be an instru- ment of torture, but a form of assist- ance,” he told his wife, upon tearing the note and handing her Fall's signa- ture to guard carefully. Admirals on Stand. | When court reconvened this morn- | ing defense counsel indicated they in- tended going as fully as possible into testimony to prove the strategic im- portance of Hawali and Pearl Harbor in relation to the war plans of 1921 in the Pacific. Rear Admiral William C. Cole and Rear Admiral Robert E. Coontz were the first two witnesses to take the stand today. F. R. Kellogg questioned the wit- nesses. Admiral Cole, who was as- sistant chief of operations during Denby’s regime and now commandant at the navy yard at Norfolk, Va., was asked if strategic problems and naval | bases were the subject of special study | at the Naval War College. He ad- mitted that was so. “What was and is the value of Hawali for the strategic purposes of the Navy,” Mr. Kellogg asked. “Of the highest importance,” Ad- miral Cole replied. Government counsel objected to the line of testimony as irrelevant, but the court permitted the witness to answer. Mr. Kellogg next asked what im- portance was attacned to the main- tenance of a properly equipped naval base at Hawali. *Vital,” he replied. The same answer was applied to a ! question regarding the importance of i maintaining an adequate fuel oil sup- ply at the base. U. 8. Objection Overruled. Government counsel vigorously ob- jected when Mr. Kellogg asked 4,200,000 barrels of oil was or was not excessive for the Navy’s need at Pearl Harhor, as provided in the con- tract. Mr. Hogan interrupted to de- clare that it had been charged that the making of the leases was to de-| prive the Navy of its oil. The court, (Continued on Page 4, Columa 2. ¢ .. CASH ROON DECLARED UNSHFE Money in No Danger, How- ever—$30,000 Is Sought for Remodeling. Because its antiquated equipment, dating back to the time of President Grant, is not only so out of date, but so inadequate as to ‘‘make things dangerously unsafe,” the cash room ‘of the United States Treasury here, which in reality is the headquarters “bank’” for the richest nation in the world, would be entirely remodeled with the latest banking facilities un- der an appropriation reported favor- ably to Congress by the House ap- propriations committee. The historic old place exists today substantially as it was built, with a | few exceptions, testimony presented to the appropriations committee now made public discloses for the first time telling how great are the hazards in handling sums there of about $1,280,000 daily. Before the present fixtures were placed the room was used by the administration for the inaugural ball of President Grant. Appropriation Never Used. An appropriation was made several years ago for $10,000 to make changes in the bankroom, but it was explained by James A. Wetmore, acting super- vising architect, to the committee “it was never used because it was inade- quate.” After hearing the story of how the | Nation’s home bank lacks equipment “which even our smaller banks regard as essential,” the appropriations committee reported favorably an item of $20,000, which, if appropriated would make available a total of $30, 000 for the work. Principal changes will be made in the “screen,” which will be changed from the present one to an up-to-date bronze, iron and glass affair, of the most approved model. New Counters Needed. The ancient white marble counters, which for years have reflected a glare of light into the eyes of tellers, and over which literally billions of dollars in actual cash have passed, would be replaced by modern count- ers of composition, of a restful color. The screen itself would be moved, and some shift made in the steel tellers’ cages behind the screen, so as to give more space for the cages of the tellers, and for the money carts. New money carts of the most up-to-date style and heaviest steel construction would be installed. Although the cashroom itself was declared unsafe, a guard system on the treasury Department Building in which the cashroom is located, was described to the committee by Chief Clerk Frank A. Birgfeld, as so effi- cient, that should a burglar or bandit attempt to hold up a cashier, an elec- tric system and numerous guards would close all outside entrances and lock him inside. DISTRICT QUIZ STARTS. Federal Bureau of Efficiency Be- gins on Assessor's Office. Investigation of several depart- ments of the District Government, suggested by the Gibson subcommit- tee of the House, was started today by a corps of investigators of the Federal Bureau of Efficiency. The efficiency experts concentrated first on the office of William P. Richards, tax assessor. The offices of Auditor Daniel J. Donovan and Tax Collector Chatham M. Towers will be visited next, it is understsood. The investigators will determine whether any reforms are needed in the business practices of these depart- ments. A similar investigation about three yvears ago resulted in several changes in the office of Tax Assessor Richards. Christmas is coming ny Star. » THE JOY KILLER service. () Means Associated Pr MELLON ASKS LAND PURCHASE FOR BUILDING NOW, AS SAVING Congress Is Urged To Acquire Tria.ngle Between Pennsylvania ‘Avenue. Mall and 15th Street. Recommending, “from motives of economy,” that the entire triangle of land between Pennsylvania avenue and the Mall, Fifteenth and 7Third strects, be acquired “at once” for the Government's great building program, Secretary of the Treasury Mellon to- day told Congress that the one out- standing consideration in the program should be to “place Washington in the forefront of the architecturally beau- tiful cities of the world.” To buy this triangle “‘piecemeal,” he said in his annual report, “will en- hance the value of property remaining in private ownership, and these in- creased prices must be paid on later acquisitions.” Congress already had authorized construction of buildings in the triangle, he said, and the business- like way was to purchase it in entirety at once. The Public Buildings Commission recently approved a policy of purchase of all this land in the triangle, and legislation to authorize the expendi- ture of $25,000,000 for such acquisition was introduced today. The east part of the triangle of land will be required to safeguard the plan of the Park Commission of the Dis- trict of Columbia of 1901, based on in its provisions for a fine approach to the Capitol, Congress was reminded by the Secretary of the Treasury. | report of the Public Buildings Com- mission of December 18, 1917, sup- ported by the Fine Arts Commission in the same report, was also con- curred in. Secretary Mellon took up the whole (Continued on Page 6, Column 2) ANNIBAL PRAGTICE REPORTED N CHINA Siege of Sianfu Said to Be Starving Populace—70,000 Destitute'Near Foochow. By the Associated Press. PEKING, December 9.—The popu- lace of the city of Sianfu, capital of Shensi province, is resorting. to canni- balism to ward off starvation as the result of being besieged for months because of factional fighting. This in- formation is contained in dispatches received here quoting a Chinese refu- gee who made his way past the lines of the besieged city and entered. The streets of Sianfu are strewn with dead. The natives have been robbed of all foodstuffs by soldiers. There were 19 foreigners in the city at last reports. A letter from one of these dated November 19, said star- vation was but a matter of days, un- less relief came. Report Seige Is Raised. There have been reports that the siege has been raised, following re- treat of the troops of Gen. Liu Chen Hua, the besieger, but this cannot be confirmed. The 19 foreigners remaining in Sianfu include an American, if avail- able reports are correct. The others represent European nationalities, in- cluding five British. The Baptist mission has received a letter dated Sianfu, November 19, from the British missionary, T FOUR OF ONE FAMILY KILLED BY KEG BLAST Mother Walks Seven Miles Over Ice-Covered Roads for Doc- for and May Die. By the Associated Press. INDIANA, Pa., December 9.—Four members of one family were dead today from injuries suffered in the explosion of a keg of powder in the home of Isaac Beck, a coal miner of Shelocta, an isolated mining village near thé Indiana County border. The accident occurred Monday night, but because of interrupted telephone ser- vice due to a sleet storm it did not become known until last night, when three of the victims were brought to a hospital here, where they died. The dead: Clair Beck, 18 Marie Beck, 15; Zelda Beck, 11, and Twila Nelson, 5, nfece of the other victims. The explosion occurred when Clair Beck, a miner, attempted to open a keg of powder while wearing a miner’s cap containing a lighted car- bide lamp. Mrs. Beck walked seven miles over ice-covered roads for a doctor. At- tending physicians reported her con- BILL 0 PURCHASE Smoot to Speak Tomorrow to Explain Measure to Au- thorize Project. The bill authorizing the purchase of all the private land in the triangle between Pennsylvania avenue and B street for the development of public buildings was offered in the Senate today by Chairman Smoot of the Public Buildings Commission. An identical bill was introduced also in the House today by Represen- tative Underhill of Massachusetts, who originally proposed the measure four years ago. The bill will be con- sidered in committee next Wednes- day. Will Speak Tomorrow. Senator Smoot announced that he would address the Senate tomorrow in explanation of the bill, and give his colleagues an outline of the com- prehensive plan that is being worked out for the Government's construction program in the National Capital. Senator King, Democrat, of Utah, asked Senator Smoot if the Public Buildings Commission, would inquire into the wisdom and propriety of spending $1,000,000 for a Police Court building for the District of Columbia. He said he had noticed yesterday that it had been decided to erect a Police Court building at the east end of Judiciary Square. Denies Having Jurisdiction. Senator Smoot told Senator King that the Public Buildings Commission had no jurisdiction over additional structures for the municipal govern- ment and suggested that he take up with the Senate District committee any question in his mind concerning the Police Court building. Senator Smoot's bill would estab- lish the legislative authority to take over the entire triangle south of the Avenue, the necessary funds to be appropriated at a later date. Bellef that this legislation will even- tually pass, but not at this session, was expressed today by Representa- tive Snell of New York, chairman of the House rules committee. Mr. Snell, who is one of the small igroup of Republican leaders who manage the legislative program in the House, doubts if there will be any action taken regarding this legislation at the present session, because of a lack of time. He does expect the year, and he is inclined to believe it will be passed without great difficulty, he said today at the White House. Sees Necessity of Land. ‘While he personally has not given the proposal to purchase this tri- angle property any serious thought, he is convinced the land must be ac- quired as soon as possible. He said, that Congress realizes this, and also that the longer the purchase is post- poned the greater will be the cost. He admitted arguments advanced by (Continued on Page 2, Column 4.) Radio Programs—Page 42, the plan of Peter Charles I'Enfant, | Al TRIANGLE OFFERED subject to come to the front next! The only evening paper in Washington with the Associated Press news Yesterday’s Circulation, 104,114 TWO CENTS. PROSPERTY THE NOTTO BB, HYS NELLON REPOR Secretary Asks Congress to Strengthen Prohibition by Passing Needed Bills. DESIRES REVENUE LAW TEST BEFORE TAX CUT Urges War Debt Funding Body Be Allowed to Die in February, As Work Is Nearly Done. 8y the Assoclated Press. The Nation has attained a record level of income, and there is likely to be no ebbing of the high tide of pros- perity, Secretary Mellon reported to Congress today in his annual review of Treasury activities. At the same time he virtually closed the door to revision of the French debt settlement, and declared that pro- hibition enforcement, also a part of the work of the Treasury Department, was making good progress, but should be stimulated by the passage of pend- ing bills strengthening the enforce- ment statutes. He also urged legislation to permit disposition of the sequestered German property and to renew the charters of the Federal reserve system, and advo cating passage of the McFadden branch banking bill without the Hull amendment restricting branch bank- ing in the future. Revenue Law Test. The financial and industrial outlook received the lion’s share of attention in the report. Mr. Mellon declared the domestic situation was such that “‘we can look forward to another satisfac- tory year.” The strength of the pros- perity, he added, is the “broadness of its base,” and while spending has in- creased, so have savings accounts, life insurance writings and the pur- chasing of sound securities by small investors, The Nation's prosperity is shared by the Treasury, the Secretary reported, but he again demanded a year's test of the new revenue law before sanc- tioning any revision of the tax rates. He indorsed as a permanent policy, however, the proposal of President Coolidge to return to the taxpayers the large surpluses of the Government such as will be available this year. ! In suggesting that Congress make no move to continue the life of the War Debt Funding Commission, which | expires next February, Mr. Mellon declared the work of the commission had virtually been completed. He did inot even mention the possibility of {further negotiations with France, i which appears dissatisfied with the | agreement effected by her representa- | tives in consultation with the commis- sion and has not yet ratified it. He emphasized that this Government has maintained a consistent policy against | cancellation, and quoted at length the | discussions between foreign represent- jatives and American officlals at the | time the war loans were made, as well | as statements by President Wilson, to {show that there had been no thought of cancellation from the very outset. “Progress” in Prohibition. i The commission has negotiated set tlements representing $9,811,094,094, or 97 per cent of the total, the Secre- tary said. While Greece has not con- cluded a settlement, he suggested that if negotiations are necessary these might be conducted by such members of the commission as are available. | _Reporting “progress” in the enforce- ment of the’ prohibition law, Mr. | Mellon *declared that if given the i legislation requested ‘“‘the Treasury feels confident that its reorganized force, given the essential co-operation iand assistance of the Department of : Justice, will be able in the future to {achieve even greater effectiveness in | the enforcement of this ** { He believed the reorganized prohibi I tion staff, under the direction of As- i sistant Secretary Andrews, had in the |last year effectively stopped rum | smuggling and had gained the upper {hand on the diversion of industrial | alcohol and illicit distilling. He em | phasized that the Federal forces were | centering their attention on th Isnurcns of supplies, and expected lo authoritles to reassume their respon sibilities of law enforcement. i Debt Situation Sound. i Pronouncing the debt situation of | the Government sound, Mr. Mellon i pointed out that in the sever years {since the close of the war the public | debt has been cut by $5.841,289,845 to | $19,643,216,315 on I July 1. A re- | duction of $872,977, was made in "Lhe last year. “We have worked hard and we have progressed,” the Secretary continued. “During the year commodity prices ! generally have declined slightly, and | farm prices have not yet been re- stored ta their relative position as ! compared with all prices. | " “There is little unemployment and | wages are good. Industry is active. | There is a close margin between costs |ana prices, which has made competi- | tion severe, but, due to the great vol- { ume of business and quantity produc- tion, profits, small in each transaction, have been large in the aggregate. The ! most notable improvement has been | the restoration of the railroads to | their proper place in the community. The railroads are one of the prinefpal factors in the strength of this coun- jtry.” Warns Against Trend. Mr. Mellon indorsed the principles | of installment buying and the making of foreign loans, with proper caution in each Installment buying is no menace, he said, if the article has a real and permanent value and if the { payments are not made too light in |an effort to stimulate consumption in times of decline. He said the Treasury was not pass- ing upon the soundness of particular foreign loans, a problem entirely for private bankers. “If a foreign loan is producive— and by that I mean that the debtor, out of the use of the money borrowed, can repay the principal, the interest, and make a profit for itself—then I | think foreign loans are sound,” he sald. ‘Warning against the trend in in- vestments and loans on securities without a proportionate increase in short-term commercial bills, however, he continued: Adequate Tax Rates. “Since it is the latter which are the most easily liquidated, we are gradu- ally noting a decline in assets which may be rediscounted at the Federal reserve banks, and thus in what may (Continued on Page 6, Columa §4 y