Evening Star Newspaper, January 30, 1927, Page 4

4 L3 PRESIDENT DEFINES PROPER ARMAMENT " Lies in Neither Extreme, He | Says, Discussing Finances.. (Continued_from_ First Page) saving in interest of nearly $100- 000,000. And in the same period of time we have seen three substantial reductions in rates of taxation.” Commendation of the great build- ing program, which will make vast changes in Washington in the mnext few years was volced by .the Chief Executive. “The completion of these ms,” he said, “will remove an overhead cost and effect a permanent | saving. This is wise spending. It| will bring a real profit, which Is the essence of constructive economy. The cost of Government had been reduced in six years, the President said, from $51 per capita to $26 per capita, while the index cost of living had fallen during the same time from over 190 to 176 at present. Speaks of Personnel. President and General length on the matter subject of Both the Lord dwelt at 3 of Government personne! of vital interest in thousands Washington home 3 Without laying down a policy of ge new slashes in the Government vroll here, the President said, “when reductions of force are jusl_i- fled, they must be made.” He paid considerable attention to what he sald was “evidence during the last few vears of the continuing interest in the welfare of employes.” Reporting on the progress of the yper cent club inaugurated by the Pres- ident at the last business meeting, Gien. Lord pointed to the small per- centage of Federal appropriation act- ually under administrative control, #nd showed how the Government pay- roll must bear the brunt of much of the economy drive. The 2 per cent club, Gen. Lord ex- plained, had been formed for saving not less than 2 per cent in the cost of personne! through omitting to fill va- cancles. Personnel Club Formed. . “To carry this into effect,” he said, *“we organized the 2 per cent person- nel club. Reports in hand show that 2 The text of the President’s address to the budget meeting last night fol- lows: Members of the Government's business organization: In these meetings I find a real encouragement. 1 approach them with knowledge of what has been done, 1 leave them with- increased hope for the future. We gather here to consider the busi- ness operations of the Government. It is here we discuss our policies and aims, so that all may contribute understandingly to their fulfillment. We represent the most colossal busi- ness organization in the world. Its activities touch almost every known interest. Because of this it is im- portant that we proceed along defi- nite business lines, And this be- comes even more important when we pause to considel the one and only object of our owerations—the welfare of the Americak veople. The profit of our labors go to the people. This is our constant Inspirtion for loyal, faithful and devoted service. In speaking of the business opera- tions of the Federal Government we are not greatly concerned with the amount of responsibility attaching to an office. Rather are we concerned with the manner in which that re- sponsibility is discharged. It is in the discharge of our duties that we find success or failure. In the vast business of the Federal Government we must necessarily measure the product in the aggregate. This aggregate is the sum total of all of our efforts. No matter how high or how low the position held, each of us in the Federal service contributes to the aggregate of the product. We are often charged with in- efficiency. But I am fully convinced that the facts demonstrate that, measuring efficiency by the aggre. gate of the product these last year: there is no business body more effi- clent than the business organization of the Federal Government. You have the opportunity and privilege of serving all of the people. It calls not alone for efficiency, but for high ideals of service—a conception of duty where selfish interest and selfish practically all of the Federal agencies are making loyal effort to effect this saving desired by the President, with the prospeet that most of them will succeed. In all the various plans and drives for saving we h;v! ht‘)?l none :g reater importance than this, n Ficher in possibilities, and certainly none offering such unusual opportu- nity for real administration. We wait with great Interest to see who of our administrators are equal,to the test. “The importance of this effort, which should be continuing, is appar- ent from a study of the factors in- volved. The estimated expenditure for this year, excluding the postal ex- penses and including debt reduction is $3,643,000,000. The President exer- cises administrative control over but $1,100,000,000 of this amount, or about 30 per cent. Of this the cost of per- sonnel is approximately 65 per cent. If Government overhead is brought down or kept down, personnel must do it.” Gen. Lord sharply criticized the tendency to “too much dictation and too much typewriting.* “We have in mind,” he said, “the organization of a new and different kind of Federal club—a correspondence club. The the Federal specificatios board has reduced the kinds of ink for Govern- ment use from %o 7. Stufly? of the great and increasing mass and mess of correspondence with which the Gov- ernment is afflicted makes one almost wish that the specifications board had limited the varletles of ink to one, and that one the invisible kind. Letters too Lengthy. “Stenographers and typewriters are alluring temptations to verbosity, lo- quacity, garrulity and prolixity. We use a page or two to say what should be expressed in a brief sentence or two, and use a brief sentence or two to say what just as well or better be left unsaid. - Those who n't write out their message in longhand and make it readable can dictate to an in- telligent stenographer who can make @ farly presentable production out of @ jumble of bad grammar and a halt- ing vocabulary, and thus make pos- sible, correspondence that otherwise would never have troubled the malls and otherwise would never have been missed. The stenographer and type- writer usurp all too frequently the function of the televhone. There's too much dictation and too much type- writing. “‘Unnecessary correspondence, re- dundancy, repetition, duplication, re- iteration are costing the Federal ‘Treasury a great deal of money an- nually. The fauit is so universal in the service, the cost in time and sup- plies so great something must surely be done, and an attempt will be made to curtall and improve Government correspondence. Just how this will be done has not yet been determined. I present it to you at this time with &an earnest appeal that you give thought to the subject, and furnish fl:" director of the budget suggestions ¥ think may be helpful in organiz- ing this effort.” Only One Deficit Recorded. Gen. Lord reviewed the record of mine years and their balances, indi- cating that In that time there had n only one deficit, in 1919, while ever since that time “this succession of annual balances” had recurred. He was emphasizing them, he said, “be- cause of the splendid contribution made to them by the Federal service.” Tn 1919 there had been a deficit of $13, 637,568.60, Gen. Lord said, when “we were paying for our great adventure in war,” but since that time the surplus % were recount- 2,475,000; 1921, 1924, B $250,505,238; 1926, $377,767,81 for this fiscal year, known as 19 estimated surplus is $383,079,095. Pre- liminary estimates for the year 1928 int to a surplus of more than $200, 703,000. 3 The national debt, Gen. Lord point- ed out, had been brought down from its peak of $26,596,701,648.01 on August 21, 1919, to $19,074,665,377.35 on De- cember 31 last, a reduction in seven years of $7,5622,036,310.66. Savings Greatly Increased. The Govnment is still striving, Gen. Lord said, to bring within a three-billion-dollar limit all expendi- tures outside that for the postal serv- fce and reduction of the public debt. Ina 1 per cent club for saving that percentage of the appropriation, Gen Tord said 32 out of 43 departments and establishments had qualified, in- cluding the White House and Budget Bureau, which had brought their sav- s up to 5 per cent The six budgets submitted to Con- , Gen. Lord explained, were near- v $1,500,000,000 less than had been asked by the executive departments in those si rs. “In that billion are buried The budget director also took some desires have no place. It calls for loyaity and patriotism. Serving Sacred Cause. We are serving a cause which to us should be sacred above all things —the cause of the people of this great Nation. Errors of judgment are excusable. There is no excuse for disloyalty. If there be persons in our organization who have not been loyal, who have not lived up to the ideals demanded by the cause we serve, they have not only con- tributed nothing, but they have sub- tracted something from the efforts of the loyal. They should be dis- placed. ‘When fite and 'a half years ago we set about to put our flnances in order we were faced with a public debt of $28,977,000,000. It is easy to save when not in debt. It is an entirely different thing to save and economize when in debt. The rec- ord of this intervening period has shown that the vast public debt was an {inspiration for real accomplish- ment. We have seen that debt re- duced by more than $4,334,000,000 in the five years which ended June 30 last. In these five years the sched- ule fixed by law for debt reduction from our ordinary receipts was ex- ceeded by $2,096,000,000, In other words, on June 30 last we were over $2,000,000,000 ahead of the schedule. This excess debt reduction repre- sents an extraordinary annual sav- ing in interest of nearly $100,000,000. And in the same period of time we have seen three substantial reduc- tions in rates of taxation. This has been accomplished not at the ex- pensa of the character of service rendered by the Federal Government, but manifestly and plainly to all for the benefit of that service. The out- look today is that a large sum can be applied this current fiscal year to the further reduction of our debt. If this is realized our debt on June 30 next will stand well below $19,000,000,000, We will be then ahead of the schedule more than two and one-half billions of dollars. Military Phase of Debt. The public debt has a direct con- nection with the question of mili- tary preparedness. To the extent that we are able to reduce our public debt and to eliminate the vast charges of interest thereon, to that extent are we adding to our military pre- prepardness; and to the same extent are we lightening the burden of the people of this country. Probably of all the’ great nations of the world we are in the most fortunate financial condition. - But, aside from the many and other more important reasons, we should, from a financlal standpoint alone, refrain from any gesture which could possibly be construed as_militaristic. There are in this nation people whoy advocate policies which would place us in a militaristic attitude. There are others who beguile them- selves with a feeling of absolute safety and preach a doctrine of ex- treme pacifism. -Both of these are dangerous to our continued peace and prosperity. What we need, and all that we need, for national protection is adequate prepardness. In that is reflected our traditional attitude to- ward all nations. It contains no gesture of offense and no gesture of weakness. I am for adequate military pre- paredness. It is a question to which I always give the most serious thought in my recommendations to the Congress in the budget message. As Commander-in-Chief of the Army and of the Navy, the Chief Executive of this Nation has an emphatic re- sponsibility for this phase of our wel- tare. As a nation we are advocates of peace. Not only should we re- frain from any act which might be construed as calling for competition in armament, but rather should we bend our every effort to eliminate forever any such competition. We cannot and should not divorce our own interests in this direction from the interests of other nations. Rather should we view the matter from the standpoint of the best Interests of all the nations. Surely the best in- terests of all are found in directing to the channels of public welfare e br t over WRC and a series of other radio stations constituting what Music of the evening was by the Marine Band, Willilam H. Santelmann, Jpader, and Taylor Branson, second leader. The band opened the pro- gram with a half-hour concert from 7 to 7:30 prior to the addresses. Among the selections played by the band were: March, “The Stars and Stripes Forever,” Sous overture, “Bohemian Girl,” Balfe; fantasia, of the Federal agencies to task for their complaints in annual reports. against the Budget Bureau, The program of the evening was “Songs of the Old Folks,” Lake; ex- cerpts from “La Traviata,” Verdi; march, “My Own United States,” Ed- wards. THE SUNDAY STAR, WASHINGTON, D. C, JANUARY 30, 1927—PART 1 BRITAIN PROPOSES. SWEEPING CHANGES TO PACIFY CHINESE TEXT OF PRESIDENT'S SPEECH TO BUDGET MEETING OF U. S. Beneficial Effect on Every Home in Nation Is Seen from Economy Policy of Recent Years. moneys which would otherwise be spent without reproductive results. There has been great improvement in the business operations of our Government. This is due primarily to the establishment by the Congress of a scientific plan for carrylng on the Nation's business. But the real accomplishment has been in the ex- ecution of this plan by the executive branch of the Government with the unwavering support of its general principles by the legislative branch. We have learned that’ impulsive recommendations or impulsive action is out of harmony with good business administration. In these days of effort to make each dollar count we have learned the lesson of mature thought and mature delfberation. We are giving relative weight to each of our requirements and are measuring them in the light of thelr real importance and necessity. And upon this same principle we are look- ing forward and bullding for the future. It 1s rather difficult to visualize the real effect of his successful effort for construction economy in the business of the Government. We see certain tangible results, but there are others equally, if not more, important. We can visualize the vast reduction in our public debt. There is brought home to us the benefits of the three substantial reductions made in rates of taxation. We know the firm grasp which we have taken on our ex- penditures. But there are other things not so apparent. Prosperity in this country has been increasing from year to year since the depression of 1920. The calendar year which just closed was “one of unprecedented business prosperity in the history of this nation. Your efforts contributed materially to this favorable situation. The reduction in taxes gavesthe people a greater proportion of their own income for investment in profit- able industry. It thereby returned more money to the channels of agri- culture, trade and commerce. And aside from all of this is the great in- fluence which the economical opéra- tlons of the Federal Government have had on the people of this country. An extravagant and poorly managed cen- tral government necessarily has an adverse influence on its people. And just the reverse influence flows from a well ordered and well managed cen- tral government. Value of Co-ordination. One of the great lessons we have learned in the transaction of our busi- ness is the value of co-ordinated ef- fort. Co-ordination in any business is essential to success. .The Natlon's business is no exception. For many long years the executive departments and establishments operated inde- pendently, with little or no concern for the common good of all. This is no longer the case. The old order of things has disappeared. In its place we have a well co-ordinated executive branch of the Government. Depart- mental lines have given away and de- partment prerogatives have willingly surrendered to policies and practices which are adopted for 'the best inter- ests of all. The facilitles at the disposal of the Federal Government are extraordinary both in class and character. In our personnel are represented the highest talent of science, profession and trade. We are utilizing our facilities and talent not alone departmentally, but interdepartmentally, The extent to which we are doing this is increasing as our vision of its possibilities is en- larged. Co-ordination has brought a clearer conception of what is required of us— a clearer conception of what our real duty is. For your assistance in co- ordinating the routine business of government we are maintaining cer- tain co-ordinating agencies. These in effect are your agencies, their busi- ness is your business and the work they are doing is your work. I refer to the chief co-ordinator, hts assistants and the several co-ordinating boards. They are rendering valuable service, and I urge you to give them your hearty. co-operation. ‘We are gradually but surely cover- ing the ground for standardization of methods and practices to cover opera- tions which are common throughout the service. Standardized Federal forms are replacing the individual de- partmental forms. We are still in the period of transition, but the founda- tion has been well laid, and we are building on that. Physical Plant Improves. Keeping pace with the improve- ment in our business operations is an improvement in our physical plant. This has been made possible by hold- ing down our ordinary current re- quirements so that we could make profitable investment. The building programs prescribed by the Congress will extend over a period of years. The cost is thereby wisely distributed so that it can be absorbed without embarrass- ment. The completion of these pro- grams will remove an overhead cost and effect a permanent saving. This is wise spending. It will bring a real profit, which is the essence of con- structive economy. - In all directions we are taking up the slack. We are striving in this way to provide for enlargements in existing necessary lines of effort and for the assumption of the cost of ad- ditional projects essential to the pub- lic welfare without materially increas- ing the sum total of ‘our annual ex- penditures. We are having a fair measure of success in this. In 1925 we spent $3,529,000,000; in 1926, $3,- 584,000,000, and it is now estimated that we will spend in 1927 $3,643,000, 000 and in 1928 $3,572,000,000. ‘With a full Treasury and revenues at flood it requires ccurage to con- tinue along the lines we have been following these last years. I am speaking not alone from the executive standpoint, but also from a legislative one. I realize the great pressure for increased appropriations brought upon is kndwn as the blue and red network, | ching potentially millions of listen- | the Congress and I realize the envi- able record which it has made in sup- porting the principles of its budget law. It is significant that the Con- sress has not granted the total amount requested In any single bud- jget. It is pleasurable and easy to {give. Tt is difficult to withhold. | If the Treasury vaults were thrown | open and is accumulated capital drawn upon until not a dollar was left, even {Lhen would we not be able to satisfy {the demands that probably would be imade from various groups and from { various localitles. And who will say i that these demands may not have jus. | tification? Profects that eventual ! will be resolved into completed work purposes and policies that in time to come must be adopted and financed, if laccepted in their entirety today would |throw a tax burden upon the people |that would cripple business, check | prosperity and convert our annual | surplus into an annual deficit. Eye on Taxpayers’ Interest, What needs to be done should be | done. Great developments are sure to |come. They -should come, however, 'as the result of orderly procedure, {with an eye ulways to the best inter- (ests of the taxpayers. For extrava- !gance and unnecessary provision--a waste of the people’s money—there is no justification. 1 intend always to recommend sufficient appropriations to do what is necessary to be done and what should be done. If I err in my judgment I prefer to err on the side of saving rather than on the side of spending. In business administration the mat- T ter of personnel is of first importance. | It is a matter In which justice to the employes and justice to the people must be equally conserved. It is the money of the people which pays the salaries of our ‘employes. These sal- aries constitute the largest single item in our overhead costs. The Federal service should be adequately manned, but not overmanned. It may be im- possible to secure this exact level, but every effort should ‘be made to ap- proximate it. Since the end of the fiscal year 1921 the number of em- ployes in the Federal executive civil service, excluding the postal service, has been reduced 70,000. This has not impaired efliciency of operation. Rather has it been one of the contributing factors in Increasing efficiency. The chief incentive for perfecting new and improved methods of busi- ness is reduction in cost. That in- centive, which exists everywhere in private business, should certainly ex- {1st in the business of the Federal Gov- ! ernment. We are serving more stock- holders than any other business. When reductions of force are justified they must be made. This does not mean that we have no concern in the welfare of employes separated from the service by reason of reduction of force. 1 have recently issued an ex- ecutive order that the names of those s0 separated having satisfactory ef- clency records be placed upon the re. employment registers of the Civil Service Commission and that all new appointments be made from the quali- fled eligibles thereon until the regis- ters have been exhausted. Wants Adequate Salaries. The Government has given evidence during the last few years of its con- tinuing interest in the welfare of its employes. The 1ecently amended re- tirement act has materially improved the financial outlook for those em- ployes who leave the service because of ‘age. The new travel-allowance law has provided adequate rates of reimbursement for those traveling on the business of the Government. The classification act of 1923 is continually operating to improve the salary status of the personnel in the execu- tive departments and independent es- tablishments . We are concerned with the question of adequitee and proper salaries fo rour employes. This is both a natural and a necessary in- terest. In the last fiscal year there were 21,486 employes at the seat of gov- ernment in grades 1 to 4 of the clerical, administrative and fiscal serv- ice, with a salary range from $1,140 to $2,040. They comprised 46 per cent of all employes classified under the act of March 4, 1923, and their av- erage salary was $1,649. The average salary in that year of 8,039 employes of banks, financial institutions and in- surance companies in nine of the largest cities east of the Mississippi River, with duties comparing fairly with ‘those of the Government em- ployes in the four grades mentioned, was $1,329. This shows a difference of $220 per year in favor of these employes in Washington. Since the fleld services are on a comparable salary basls, this favorable difference applies to the much larger number of employes performing the same kind of service in the field. The Federal Government exists only for the good of the people. If we do not make every dollar count in doing the needful things, we unduly enlarge the amount required from the people. The same is true if we unduly enlarge the functions of the Government. In spite of three substantial reductions in tax rates, we have taken from the people something more than ac- tually necessary to carry on the busi- ness of the Government. From this has accrued the yearly surpluses which have been invested in the fur- ther reduction of the national debt and the profit arising therefrom through reduction in interest. These surpluses would not have accrued had the business of government not been well managed. Cannot Forecast Tax Cut. This year promises a substantial surplus, and we have every hope for a surplus the next year. It is too early to forecast whether or not there can be a further permanent reduction in taxes in the near future. We are waiting a test of the producing ability of the reevnue act of 1926. But what we can, should and must do today is to Keep a firm grasp on our ex- venditure program. This is essential if we are reap the full benefits of a favorable revenue under the existing law. In planning your next year's ex- penditure program keep constantly in mind the necessity of holding the level of spending to a degree consis- tent with efficient and productive re- sults. Every dollar wasted, every penny misspent, is confiscation of capital—a withdrawal of working funds from the field of useful develop- ment and production. And in giving consideration to plans or proposals for enlarging the functions and ac- tivities of the Government apply to them the measure, not of desirability, but of necessity. In making your apportionment of funds for the coming year, I want to emphasize again the necessity of set- ting aside a reasonable amount in re- serve to meet the contingencies which may happen during the year. We have found this a profitable practice. These reserves should not be released to meet ordinary or routine require- ments. The true spirit of the re- serve of which I speak is to have something in hand to meet contin- gencles. If these do not arise, the re- serves are then reflected in a direct saving. They always reflect an in- direct saving to the extent that they make it unnecessary to call upon Congress for additional funds. Six years ugo the cost of the Government was over $5,500,000,000, or §51 per capita. Total taxes were nearly ~ $4,900,000,000. The index figure of the cost of living was over 190. To initiate a policy of construc- tive economy at that time required a great deal of courage. To all ap- pearances it was almost impossible of accomplishment. The time when it would give any actual relief seemed too far in the distance that there was little incentive to make the required sacrifices to secure it. Sees Astounding Progress. In this short period of time the progress has been nothing less than astounding. We have reduced the costs of the Government nearly $2,000,000,000, so that they now stand somewhat over $3,500,000,000. The per capita costs have been reduced more than $20, so that they now stand at somewhat over $30. The total taxes have been reduced about $1,600,000,000, so that they are now Just over $3,400,000,000. This is a saving of $5,000,000 for each work- ing day. The index cost of living has come down to 176, ‘This readjustment of the finances of the Government has been a large con- tributing* factor in the prosperity which the country has enjoyed. Out of our surplus earnings we have paid off nearly a quarter of our national debt and furnished billions of dollars to stabilize and refinance other parts of the world. Measured by its pro- ductive capacity and by its distribu- tion in wages, and its results in the general raising af the standards of living, it is far in excess of anything ever enjoyed before by any people anywhere at any time. it we had the courage to adopt this policy when its beneficial results ap- peared to be far in the future, now that we are in the midst of their en- joyment we ought to have the courage and the self-control to continue fit. ‘There is not a home anywhere within the broad confines of this Republic which is not better off because of the services which you have ren- dered and the sacrifices- which you have made. These results are un- precedented in the financial history of the world. They have placed America at the pinnacle of success and prosperity. It is our business to do our part to keep it there, 3 THREE MORE SHIPS SENT T0 HONOLULU Light War Cruisers Dispatch- ed on Stand-by Orders, Pending Shanghai Action. By the Associated Press. Desplte “reasonably hopeful” pros- pects of treaty negotiations with China seen by Secretary Kellogg, three additional American warships were dispatched to Honolulu yester- day on stand-by orders. They will be quickly available there in the event of serious disorders at Shanghal to supplement the naval forces on the Chinese coast, to rush Marines from the Philippines to China, or to take aboard Americans should evacuation of the international settlement become necessary. Each ship could land about 150 men from its-own crew in an urgent emergency. Two Now at Balboa. The ships are the light cruisers Cincinnati, Marblehead and Rich- mond, all modern high-speed vessels of the 7,600-to class, with long cruis- ing radlus on ofl fuel. The first two are now at Balboa, assigned to the speclal service squadron commanded by Rear Admiral Julian Latimer, in personal charge of naval forces in Nicaraguan waters. The Richmond is at Guantanamo, Cuba and is assigned to the scouting fleet in the Atlantic. The cruisers will assemble in Honolulu under the flag of Rear Admiral John R. Y. Blakely, aboard the Cincinnati as flagship. They will await orders for further movements from Washington. Admiral Blakely has the advantage of having received his instructions in person at the Navy Department. He left Washington tonight for San Francisco and. will sail February 6 from that port for Honolulu to as- sume command of his emergency squadraon, which will be held at the call of Admiral Willlams, commanding the Asiatic fleet and in personal charge at Shanghai. No Word of Agreement. Secretary Kellogg's hopes that there will emerge from the Chinese civil war turmoil an agreement between the factions on ways and means of nego- tiating new treatles are founded on no definite information that the Can- tonese and Peking governments are approaching such an understanding. It was reiterated at the State De- partment today that the Washington Government is ready at any moment to enter negotiations with a Chinese treaty commission upon which the Nationalist government at Hankow and the Peking government, dominat- ed by Chang Tso-Lin, Manchurian mil- itary dictator, can agree, but that no officfal intimation has been received that these two factions were contem- plating such an agreement. On the contrary, each side has protested vig- orously against any American treaty dealings with the other side. Resent Dr. Sze Action. Mr. Kellogg feels, however, that he has made so plain in his recent state- ment both the friendly purposes to- ward China of the Washington Gov- ernment and its desire to remain strict- 1y neutral as between the Chinese fac- tions that there can be no mistake on either point among Chinese leaders. There was some suggestion of re- sentment at the State Department over the action last night of Dr. Al- fred Sze, Chinese Minister, in demand- ing a more explicit and simplified dec- laration of American purposes, al- though' 'department officlals refused to make any direct comment upon CAROL WY EET HIS WIFE IN MILAN Reconciliation Would Be Fol- lowed by Trip to Ruma- nia, Italy Hears. By the Associated Press. MILAN, Italy, January 29.—Rumors are current here that Prince Carol of Rumania will come to Milan to meet his estranged wife, the Princess Helen, and their young son, Michael, after which he will go to Bucharest. ‘When Princess Helen and young Prince Michael went to the Italian Riviera the Rumanian government was careful to issue a statement dis- counting suggestions that she was to meet Prince Carol, who at that time was on the French Riviera, in an ef- fort to effect a reconciliation. Prince Carol returned from the Riviera several days ago. Asked whether he intended to make any ef- fort to visit his wife in Italy, he re- plied enigmatically that the weather was ideal in Italy and that lots of people went there for a visit. Rumors have been current for some time that King Ferdinand was con- terhplating the restoration of Prince Carol to his rights as heir of the Ru- manian throne. Leaves $86,500 Estate. An estate valued at $86,500 was left by Arabella P. Moses, who died Janu- ary 5. Her sister, Catherine M. Wer- ber, named as executrix under her will, has filed a petition for the pro- of the document. Besides the ster ther 15 nieces and nephews. (Continued from First Page.) guarantee of safety for British lives under the authority of the Cantonese government in the present revolution- ary state of affairs. He argued that while it was com- paratively easy to evacuate the few British residents from Hankow, it would not be so easy from Shanghai; hence, while he did not desire to as- sume that there would be bloodshed at Shanghal, it would be a dereliction of duty If the British government failed to take proper precautions. Emphasizing that the defence forte ‘was non-aggressive, Sir Austen added: “I hope no occasion will arise for fits use. There is no intention on our part to hold Shanghal if we can ob- tain satisfactory assurance that what has happened at Hankow will not be repeated at Shanghal.” Hopes For Happler Future. He heartlly reciprocated the ex- pressed desire of Eugene Chen, the Cantonese foreign minister, for a set- tlement of the treaty and other ques- tions on a basis of economic equality and respect for each other's political and territorial sovereignty. He there- fore desired to say nothing to make a friendly settlement more difficult, but preferred to look for what he hoped would be a_happler future. Former Premier David Lloyd George, addressing the Midland Federation today, declared that the only solution of the Chinese problem was the wise and prompt concession of legitimate Chinese demands. “I have no apprehension of a_mill- tary defeat in -China,” Mr. Lloyd George said, “but there is real danger that we may secure a diplomatic de- feat which will shake our position in the whole East.” Trade Factor Stressed. The treaties imposed upon China were doomed from the moment Japan became a great power, the former premier continued. The real struggle | was between British traders and the traders of Japan, Germany and the United States. If the Chinese got the idea that the other nations were their friends and Great Britain their enemy then the other nations would capture the Chinese. Aslde from the speech of Sir Austen the public was without any new in- formation on the Chinese situation. There is no confirmation of the press report that the Cantonese army is withdrawing from Chekiang province, but the report is interesting in the light of recent suggestions for a move- ment to make Shanghai a sort of neu- tral zone, in order to avoid conflicts with the powers while the negotlations are proceeding. Chang’s Criticism Reported. A Peking dispatch represents Gen. Chang-Tso-Lin as complaining of lack of support and sympathy from the powers, and protesting that he always had protected foreigners, while his Cantonese opponents were violently anti-foreign. ‘The inference is drawn from vari- CHARGE D’AFFAIRES O'MALLEY ous reports reaching London that both north and south are bidding for recognition by the powers as the de {ftacto government of China. The foreign office will, within a few days, issue the text of the proposals presented to China, which will further elucidate details not given by Secre- tary Chamberlain concerning exactly what guarantees or asurances will be expected for the proposed new rela- tions. President Interrupts Gen. Lord to Catch Glass of Water, Saving Him From Shower President _ Coolidge, unexpectedly saved Gen. Herbert M. Lord from a damp reception last night when he interrupted the Director of the Budget in the midst of a speech at Memorial Continental Hall to rescue a glass of water sliding rapidly down the inclin- ed plane of the speaker’s stand. Gen. Lord, the hundreds of Govern- ment officals, including the eight cabinet members, and the Vice Presi- dent, assembled for the twelfth regu- lar'meeting of the business organiza- tion of the Government, enjoyed the incident hugely. But the President got more fun out of it than anybody, and laughed heartily. Some thought it was a funny story WILSON WILL ADDRESS WOMAN DEMOCRATS Mrs. Emily Newell Blair Is Coming Here for Political and Edi- torial Conferences. Willlam B. Wilson, former Secre- tary of Labor under the Wilson ad- ministration, will speak at the lunch- eon to be given tomorrow under the auspices of the Women’s National Democratic Club at the Hotel Wash- ington. Mrs. Emily Newell Blair, vice chair- man of the Democratic national com- mittee and secretary of the club, is expected to arrive here today from her home in Joplin, Mo., for a series of political and editorial conferences. She will be a guest at the luncheon. In the evening, at 8 o'clock, the National Democratic Club will hear a number of leading Democrats. Among the speakers will be Senator King of Utah and Senator-elect Barkley of Kentucky. Representatives Rainey of Illinois, Lea of California and Gam- brill of Maryland also will speak. The National Democratic Club re- cently underwent reorganization with a view to becoming more active in the 1928 campaign. A national drive for membership is now under way. S UL HUSBAND, 19, ARRESTED. Donovan Byson Frazee, 19, paper- hanger of 5833 Colorado avenue, and bridegroom of only a few days, was arrested by Detective Thomas Sweeney yesterday on a warrant from Prince Georges County, charging him with falsifying the age of his bride, former- ly Miss Margaret Lane, in applying for a marriage license. It is alleged he gave the age of the bride as 18, whereas her mother con- tends she is 16. The coupl® was mar- ried in Hyattsville, Md., after an elopement. They were living at the Colorado avenue house at the time of the arrest. The terms of Morris Plan Loans are simple and practical and fair—it is not necessary to have had an account at this Bank you a; it $1 per week an Account, eds of may be used to cancel the note when may be made on a weekly, semi- monthly or monthly basis as you prefer. Loans are pass- ed within a day or two after filing MORRIS PLAN notes are |;mally Yyear, though they may be an; %0 12 months. MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 H Street N. W. Gen. Lord had just told that started the glass of water on its nearly destructive trip. Gen. Lord was tell- ing about an old colored woman and a merry-go-round. The old mammy, according to Gen. Lord, said: “No sah! Ah doan never ride on dem things. Why, de oder day ah seen Rastus Johnson git on an ride as much as a dollah’s wurf and git off at de very same place he got on at and ah seys to him, ‘Rastus,” ah seys, ‘yo spent yo money, but where you bin?* " At this joke the room rocked with laughter, and Gen. Lord started to g0 ahead with this sentence: “We shouldn’t spend a dollar of the peo- ple’s money without getting some place with it.” But he got no fur- ther. The audience was surprised to see President Coolidge suddenly arise from his chair and -glide swiftly across the platform. The budget di- rector stopped and looked at Mr. Colidge with concern. Few saw at first what had caused the trouble. As the President glided the glass on the speaker’s stand also had glided toward the edge. But the President won the race. Mr. Coolidge caught it in his right hand just in time to prevent its contents from splashing Gen. Lord. Then he walked to one side and deposited it on a little shelf on the railing, nearby, without spilling a drop. The audience heaved a sigh of relief and the President chuckled heartily, TOWN THREATENED WITH INUNDATION Turbulent Waters of Ohig May Break Levees at Shawneetown, I, = 1y the Associated Press. INDIANAPOLIS, Ind., January 29, +~Flood waters of the Ohfo and othed iivers today were causing distress and 12 some instances peril along the a 44.5-foot stage at Evansville the nearby community of Shawneetown was being watched a8 the turbulent waters threatened tq tear away levees protecting the town from inundation. Shawneetown was in the greatest perll since the flood of The erest of the floor, however. thought to have been reached at Evanaville, as the watdt had risen little more than an inch during the iast 12 hours. River navigation was almost suspended, as steamers wers unable to make ports down the rivi because of high waters. b Appeals have been made to the New Albany Red Cross chapter by flood sufferers in_ need of fuel, food and medicine. In many instances nine persons were housed in one room, and iliness was reported among children due to exposure. Leavenworth, Ind, in Crawford County, was experfencing the worst flood since 1913. Most of the principal streets are under several inches of water. STREAM NEAR LEVEE TOP. White River Flood Threatens Towns in Arkansas. LITTLE ROCK, Ark. January 29 (P)—Though running nearly leved full, the White River in Woodruff and Pralrie Counties, was still confined in its overflow to the bottom lands to- night and the situation at McClelland and Devall's Bluff remained about the same, Reports that the river was trickling. over the leves opposite Georgetown were denied by business interests at McClelland, with the announcement that no damage to the dikes was expected. Devall's Bluff is a town of about 500 persons, 50 miles east of Little Rocl It is so situated that a further risgh, of 18 inches in the river would put water in the first floors of the hotel and business houses and many mer- chants selzed the respite to move stock and furniture to safer levels. OHIO SOCIETY RECALLS ! BIRTHDAY OF McKINLEY Burton Presides at Gathering. Canton Man Gives Recollections of President’s Boyhood. The Ohlo Soclety of Washington last night celebrated the birthday of* President William McKinley at a meeting_held at Rauscher’s restaur- ant. William T. Kuhns, president of the Canton, Ohio, Chamber of Com- merce, a personal friend of Mr. Me- Kinley, related a few anecdotes of their boyhood. A prayer was offered by Right Rev John W. Hamilton, chaplain of the soclety, followed by ‘songs rendered by a quartet, composed of Misses Helen Harper, Miss Elizabeth Parker, Lucy Hopkins, and Hattie Herfurth, accompanied by Miss Margaret Mor- gan. The meeting was presided over by - Representative Theodore E. Bur- ton, president of the soclety. Danc- ing and refreshments concluded the program. s g WALSH TO SPEAK. Senator. Will Address Gonug. Alumni Tomerrow. Senator David I. Walsh of Massa- chusetts will be the principal speaker tomorrow night at the annual smoker of the Gonzaga Alumni Association in Gonzaga College Hall, 23 I street. The program includes initiation of the class of 1926-into the alumni as- sociation, election of officers and. en- tertainment. Willam E. Leahy will delivep, an address, and George O’Connor and Matt Horne are listed as entertainers. Arrangements are in charge of Ber- nard F. Garvey, chairman of the ex- ecutive committee. THIS WEEK ONLY 20 00 Allowance for ‘:—‘f old Elec- tric, Hand or Water Power Washing Ma- chine on the purchase of a (fotmerly the APEX) ELECTRIC WASHING MACHINE No moving parts in the tub. Easy to clean. Several patented safety features.: 3 ht years. There are_thousands ‘of satisfied users. Pittsburg Water Hoatore—Quality Gas Ranges- 11305 G St. N.W. . Main 10321033 3 s