Evening Star Newspaper, November 1, 1927, Page 1

WEATHLER. U 8 Weathet Bureau Forecast ) Fair and slightly warmer tonight; tomorrow mostly cloudy Temperature—Highest, 68. at noon today; lowest. 49, at 6:15 a.m. today Full report on Closing N. Y. Mark 30,499. No. Entered as secot post office Wa: OIL TRIAL 1 ASSIDDONS page 9. ets, Pages 14 and 15 nd class matte; shington. D C. S HALTED CONSIDERS JURY TAMPERING DATA @h WASHI TON, WITH SUNDAY MORNI Talkative Juror Member Involved in Affidavits‘ Presented by Government—Mat- ter Described as “Grave.” COURT HEARS C IN PRIVA OMPLAINT TE CONFERENCE Decision May Be Announced Tomorrow Morning—Grand Jury Also Considers Case. The Fall-Sinclair Teapot Do abruptly today while Justice F four affidavits, involving jury ta opened this morning by Atlee Pc Government. ne oil conspiracy trial was halted rederick L. Siddons considered | mpering, presented when court omerene, special counsel for the EDWARD KIDWELL. GANG TERROR LAID TOEXTORTIONISTS Probe in Chicago Follows Ar- Just as Justice Siddons took his place at the bench at 10 rest of “Candy Association” o'clock to resume proceeding nounced, “We have a matter which gives the United States at- torney and special Government cern, which we present to your the form of affidavits.” After having considered affi Justice Siddons, at 1:40 o’clock Mr. Pomerene arose and an- | counsel a matter of grave con- honor for your consideration in davits in his private chambers this afternoon, returned to the | court and announced that he had not yet “determined upon the course the court should take.” trial until 10 o'clock tomorrow m: Thereupon, he adjourned the orning, at which time, he stated, he may announce his conclusions. Gist of Charges. Charges contained in the affidavits pronounced by Government counsel | bear witness to the following facts: | That Edward Kidwell, serving as Juror No. 11 at the trial. had remark- ed in the presence of witnesses that he “could net see any advantage of | bringing in a verdict of conviction. | while there might be some advantage | in bringing in a verdict of acquital.” | Jt is charged furthermore that Kid- well, when told something to the effect that he ought to be well fixed. rejoined that he “expected to have a car as Jong &s the block” and that in the course of the conversation Kidwell ex- admiration™ ants, because of his “@democratic man- ner.” Charges that detectives of the Burns Detective Agency had the petif jury under “close intimate, objectionable and improper surveillance”” are made in affidavits sworn to by Neil Burkin- shaw and Walter M. Shea, assistant United States attorneys, who caused a search t0 be made of room 111.E, Wardman Pack Hotel, on a search warrant. Charles C. Buddy and C. H. Robbins, manager and assistant man- ager, respectively, of the detective agency, were In charge of the head- | quarters. Reports found in their pos- =easion show that each of the jurors empanelled was under surveillance ex- cept juror No. 6, Robert C. Flora. Ruddy was alleged to be frequently in touch with a =o-called “client,” A. Mason Day. registered at the Ward- man Park Hotel, where Sinclair is registered. Reports were rendered to the said Day at the home of Donald Woodward, 2118 LeRoy place. “It is my belief that the real em- plover of said detectives is Harry F. Binclair, a defendant in this case,™ Burkinshaw's affidavit declares. On or about October 18, the date on which the jury was sworn, the affidavit al-| leges that 16 detectives in all were working in Washington as set forth. “Tip” by Telephone. ‘The “tip” by which evidence agains' the juror Kidwell, a leather worker, 31 years old. residing at 1637 U street northeast, came by telephone to the office of the Washington Herald about midnight of Friday, October 26, ac- cording to an affidavit by Donald T. King, a Herald reporter. The inform- ant was J. Ray Akers of 206 Seventh street southwest. a conductor on the Washington Railway and Electric Co. Akers remarked over the phone that “they are going to hang the jur: and that he had “heard a man say s After some hesitation he named Ki well. Akers, when seen the next morning. agreed to take the reporter to a soft drink establishment at 611 Four-and- alalf street southwest. There the reporter was introduced to Kidwell, | who was found at the address Satur-| « afternoon. | g's affidavit recites the conver- that took place between the | e of them and that Kidwell said for the jury be- ¢ good vesand- | e smart lawyers could not m say what he did | not want to say.” Kidwell remarked that he was “getting his $5 a day” for jury service and “‘was not paying a whole lot of attention to what was 3 on. affidavit no man. further alleges that marked that ‘there was nothing wronz with this fellow Sin- clair,” that he was all rig he was a democratic fellow th “so much money that he didn't bave to put on airs During the conversation marl 1 that he supposed Kidwell would be riding around in a big car xoon and the aflidavit alleges that Kid- ! In response said: “Well, if T don't one as long as this block, 1 will be very much disappointed.” Declares He Discussed Case. Aker, upon being sworn, stated in his aflidavit that he had Known Ki well for about three years and th he has discussed the pending caso with him during the past two wecks. lie substantiated ctly the facts et forth in King's affidavit and the conversation with Kidwell at the soft drink place in which the juror e pressed his opinion about Sinclair and what he expected to get out of the tnal. According to the affidavit given by Mr. Shea, one of the assistant United States attorneys for the District, October 31, a search warrant was is- sued by United States Commissioner Needham C. Turn directing Dep- uty United States Marshals John J. Clarkson and Constantine Corimele to search room 111-E, Wardman Park Hotel. In pursuance of his official du- ties. Mr. Shea accompanied them and was present when the warrants were served on Charles C. Ruddy and G. H. Robbine in said premixes. They ob- tained a folder containing carbon copies of reports rendered by Ruddy as manager and Robbins as assistant manager and various operatives of the Burns Detective Agency to the egency. These operatives some 14 in num Akers re- on} Affidavits Which Involve Juror And Detectives DISTRICT OF COLUMBIA. Holding a Criminal Term. UNITED STATES vs. ALBERT B. FALL, » HARRY F. SINCLAIR Defendants Crimin; No. 43,324 AFFIDAVIT OF J. RAY AKERS. District of Columbia, ss: J. Ray Akers, being first duly sworn according to law, on oath deposes and says that he is thirty-four years old and employed as a eonduetor by the Washington Railway and Electric Co. that he lives at 206 Seventh street southwest, Washington, D. C.: that he | knows 2 man by the name of Kidwell, at present serving on the petit jury in the trial of the case of United States vs. Sinclair and Fall: that he has known said Kidwell for about three vears; that he has discussed the said case with Kidwell during the past two weeks: that on Saturday, October 29, 1927, affiant and Mr. King of the Washington Herald were in conversa. tion with said Kidwell, in the course of which Kidwell expressed a great admiration for Mr. Sinclair, one of the defendants in sald case, because of Mr. Sinclair's democratic manner; that Kidwell remarked that he was getting five dollars a day upon this jury while he was there, but he was just putting in his time and was not paying a whole lot of attention to the evidence as it was submitted: that Kidwell fur- ther remarked that he could not see any advantage to him in bringing in a verdict of conviction, while there might be some advantage in bringing in a verdict of acquittal in said case; that afflant remarked to Kidwell some- thing to the effect that he ought to be well fixed, thereupon Kidwell re- joined that he expected to have a car as long as the block; that Kidwell stated that some detective now at headquarters and formerly a precinct detective at No. 4 precinct had re- marked to him, Kidwell, that he was a fine fellow to get on that jury and that he didn’t know how Kidwell had | got on, and that Kidwell had stated to him that he was a good yes-and-no man Subscribed and sworn to before me this 31st day of October, A.I CARLTON G. SCHENKEN. Notary Public, D. C. IN THE SUPREME COURT OF THE DISTRICT OF COLUMBIA Holding a Criminal Term, UNITED STATES vs HARRY F. SINCLAIR and ALBERT B. FALL Criminal ( No. 43324, UNITED STATES OF AMERICA, DISTRICT OF COLUMBIA, ss: Walter M. Shea, having been duly sworn according.to law, did depose and say: I am an assistant United States at. torney for the District of Columbia. knowledge that on October 31, @ search warrant was issued by °d States Commissioner Needham C. Turnage, directed to Deputy United ates Mars¢hals John J. Clarkson and onstanzo Cerimele to search room 111-E, Wardman Park Hotel. In pur- suance of my official duties 1 aceom- panied said deputy marshals to the premises mentioned and was present during the time that they executed their v it They found Ruddy and G. nises at the time obtained a folder | containin large number of |carbon coples of reports rendered by tsaid Ruddy as manager and said Rob- bins as assistant manager and varfous operat of the Burns Detective Ageney to the Burns Detective Agency. They further found certain lists showing ‘inter alia: (a) That the operatives, some four- teen (14) in number, had been collected from New York, Baltimo Washing- ton, Philadelphia and perhaps other points and concentrated in Washing- ton, 2 () That each of these operatives had a designation other than his name, (¢) That these operatives were as- {signed to and in fact registered and made their headquarters in various hotels in the city of Washington, The sald reports show that each of the jurors empaneled in the above cause was under =urveillance for va- rious lengths of time, with the sole Robbins in said p of said = he affidavit_sets forth, had heen itinued on Page 2, Column 3.) exception of Juror No. 6. Robert C. ¥l The reports show_that_the ed on Pagg 2, Column 2,) by IN THE SUPREME COURT OF THE | 1927. | Heads for Assault. By the Associated Press | CHICAGO, November 1.—Investiga- {tion into alleged extortion rings was |under way today by the State’s attor- ¥'s office, following a arters of the Chicago Associa- tion of Candy Jobbers last night. Five officials of the association were ar- rested The arrests peated complaints masque: ganizers, have collected many thous- ands of dollars as dues, initiation fees and fines from small dealers. The quintet was arrested as they were in the act of beating Benjamin Simanevich, 42, for disobediance of orders. Simanevich complained to the authorities, and he was followed to the headguarters of the association by po- | fice, who entered upon a signal, and took the officials into custody. Refused to Raise Prices. Simanevich said he had refused to pay a $100 assessment of the associa- tion and had declined to raise the prices of candy as demanded by the | association. | “Two weeks ago they threatened me and my son if we didn’t do what they sa2id.” he declared. “My son, a sales- man fer the firm, was told he would} be ‘taken for a ride.’ He guit. But I taughed at them. “Last Friday |, Jotter.~it said cerious charges h been placed against me and that I should appear at the association offices Monday night. 1 notified the police, and they told me to go ahead, and if there was any trouble to break a window.” The candy jobber entered the of- fice und after refusing to agree to the demands of the association officials, was beaten until he signaled the po- lice. were made after re- that extortionists Officers Are Arrested. ‘The men arrested were John Hand, business secretary of the association; Albers Hoffman, president: Max Gold- &mith, Frank Stritch and Sam Rock- man. They were held on charges of assault with intent to kill A special bureau to investigate and | prosecute similar racketeers has been created by State’s Attorney Crowe, who said that business men who have | refused to pay have been beaten and even killed and their establishments have been bombed, boycotted and sub fected to other violence. Already a number of cases have besn prepared and will be presented before the grand jury, the prosecutor announced. He said he expected to show they were mere shells of organi- zations, with one or two extortiunists at their head, aided by gangs. THIEVES GET AWAY WITH S20000 FURS Connecticut Avenue Shop Looted — 100 Dresses in Haul—Rear Door Broken. Burglurs last night gained access to the Rose Shop, 1323 Connecticut ave- nue, by forcing open a rear door and stole fur coats, scarfs and dresses valued at $20,000. A greater part of the loot was imported from France. Examination of the premises by po- lice disclosed the breaking of interior metal doors of the establishment in order to reach the more valuable stock. Property taken from the store included about 100 dresses and cloth coats, 17 fur coats, 5 skins and 13 fur scarfs. Detectives conducting an Investiga- ticn reported the finding of 10 dresses in the rear of 1527 Kingman place, where they had been discarded by the burglars. An insurance of $10,000 was carried on the stock. ‘The dresses were recovered in the vicinity of the garage in which the abandoned car of the slayers Policeman Raymond C. Leisinger on X was located during stigation, 1t is believed by the police that the robbery was committed by thieves specializing in the thefts of furs, who have been operating in the South. In a message to the several captains yes- terday, Maj. Hesse directed that they have members of their respective com- mands give special attention to all stores where furs are sold. The chief also informed captains that the department had information from a reliable source that the fur thieves operating in the South were heading this wa — Soviet Bans Capital Punishment. MOSCOW, November 1 (#).—The Soviet government has issued a decree clarifying the recent manifesto abol- ishing capital punishment except in the gravest of offenses, —_— Radio Program—Page 34 d upon the | ading as labor and trade or- | 940,000,000 SLASH INTAXES IS URGED BY U. . CHAMBER $175,000,000 More Than| Mellon Wanted Favored by Body. GARNER HITS TREASURY | FIGURE AS 'NACCURATE Also for Reduction of Corporation Levy to 11 or 10 Per Cent Rath- er Than Surtax Revision. By the Associated Press With the recommendation of the | Treasury that tax reduction be held to a 00,000 maximum before | them. members of the House ways and means committee were urged to day by the United States Chamber of Commerce to make a tax slash of | about §400,000,000. James R. MacColl, speaking for the chamber, said that “it is common | knowledge that in recent years the | actual surplus has greatly exceeded the estimates. Almost simultaneous with his ap- pearance on the witness stand Repre- sentative Garner of Texas, ranking Democrat on the committee, issued a statement assailing the Treasury for | inaccuracy in its forecast of surpluses and advocating a reduction of the cor- poration tax from 1313 per cent to 11 or possibly 10 per cent. instead of 12 per cent proposed by Secretary Mel- lon. The Texan said he believed material reduction of this tax rather than a | revision of surtax rates on incomes of | from §16,000 to $90,000 was required. Too Low, Says Simmons. | | Secretary Mellon's estimate was de- | clared 12 be too low by Senator Sim. | mons, North Carolina, ranking Demo crat on the Senate finance committee, after a call on President Coolidge. The Senator said he felt that total tax reduction could reach $400,000,000 in- stead of the $: 000,000 recommended by the Treasur; While he did not differ with Sec- retary Mellon as to the exact means of reducing the taxes, Senator Sim- mons was of the opinion that the extent of reduction in the various classes to be affected should be greater than that proposed by the Treasury. He recommended abolition of all the so-called nuisance taxes, a reduction of the automobile tax and greater reduction of the corporation tax than suggested by Mr. Mellon. He also said that the tobacco growers were entitled to some reduction of the tax imposed upon their products. Would Repeal Inheritance Tax. Like Secretary Mellon, the Senator favors a repeal of the inheritance tax and he concurred in the Treasury S¢ retary's view regarding a reduction of personal income taxes in the inter- mediary brackets. Chairman Green of the ways and means committee also said that re- iteration by the Treasury of Its recommendations for repeal of the estate and inheritance tax had not altered his previously announced op- position to such action, while a number of other committee members held the view that a reduction hizher than suggested by the Treasury should be effected. A wide difference of views existed ovar Mr. Mellon's proposal to reduce the corporation tax from 13%; per cent to 12 per cent, Democratic members generally taking the position that a larger cut should be made in this levy. Party Lines Form. Considerable comment also was forthcoming on the Treasury proposal to retain the excise taxes, particu- larly that on automobile sales, whi the suggestion for a downward revi: sion of surtax rates on incomes be- tween $16,000 and $90.000 evoked much discussion, in which party lines crept to the surface. But little, however, was heard re | garding the other two Treasury rec ommendations —one proposing thai corporations with incomes less than $25,000 and with not more than 10 directors be permitted to file returns | as partnerships or corporations, af their option, and that income derived from American bankers' acceptances held by foreign central banks of issua be exempted from taxation. ‘The first witness today, James A Emery, general counsel for the Na. tional Association of Manufacturers, urged that Congress make the corpora- tion tax the subject of its major re- duction to “remedy a long-standing injustice.” Corporation Cut Urged. Emery said the manufacturers’ as- sociation also desired Congress to rec- ognize as a permanent tax policy that a corporation tax should approximate the normal individual tax rate, save in the possible exception of a national emergency. Shortly after the committes con- vened Representative Garner issued a statement declaring he was convinced that Mr. Mellon's statement was an ‘“‘unanswerable argument in favor of a materfal reduction of the corpora- tion tax.” “That tax should be reduced to 10 per cent," he said, “but instead of re- ducing it to that figure the President suggests a reduction to 12 per cent, and to devote $50,000,000 to a reduc- tion to those paying taxes in the high- er surtax brackets, who already have | a very large advantage over the corporations in paying taxes. As be. tween the two, the reduction should 80 to the corporations.” INDIAN PLOT UNCOVERED. Revolutionary Conspiracy Believed Discovered at Calcutta. i CALCUTTA, India, November 1 (#).—Documents which officials be- lieve reveal widespread ramifications of a revolutionary conspiracy have been seized by the police in searches of a number of houses in Calcutta and northeast Bengal. The searches were carried out at the request of the Bihar police after the discovery of two pistols with am- munition in the possession of a Ben. gali youth at Deoghar Bihar last month. Certain ciphers also were found, which were decoded, yielding the names of a number of persuns living at the addresses searched to- day. No arrests wn? reported. D. C, TUESDAY, NOVEMBER 1, NG EDITION 1927 -FEPY e Foening Slar. PAG “From Press to Mome Within the Hour” The Star’s carrier system covers every city block and the regular edi- tion is delivered to Washington homes [APAN MAY NAME DEBUCHI AS ENVOY [ Tokio Press Predicts His Ap- | nointment—Report Uncon- firmed Here. By 'the Associated Press. TOKIO, November 1.—The vernacu- lar newspapers print a report that| Katsuji Debuchi, foreign vice minister | and one-time secretary to the Japan- | wse embassy at Washington, prohably | will be named as Japanese Ambassa- dor to the United States. Tsuneo Matsudaira, present Jap- anese Ambassador to the United States, has been the center of reports recent- ly that he was to be transferred to London as Ambassador to Great Brit- ain, succeeding Ambassador Matsui. M. Debuchi, who has long been in the diplomatic and foreign service of his nation, was sent to the Japanese embassy at Wakhington in 1918, serv- ing as secretary. He was promoted at the embassy to a higher post and played an active part in various diplo- matic problems that came up betwaen the United States and Japan, particu- larly with reference to China and Shantung. He left Washington to become harge d’affaires at Berlin in 1920, and later returned to Tokio as director of loreign Eastern affairs and as vice minister in the foreign department. A report from Tokio that Katsuji Debucki, forelgn vice minister and one-time secretary and charge d'af- faires to the Japanese embassy at Washington, had been meutioned in the vernacular newspapers of Japan as the next Japanese Ambassador to the United States was unconfirmed at :ha Japanese embassy here this morn- ng. HUGHES WILL KEAD HAVANA DELEGATES U. S. Representatives at Pan- | American Congress Are Announced Here. By the Associated Press. Charles Evans Hughes, former Sec- retary of State, will head the Ameri- can delegation to the Sixth Pan-Amer- ican Congress at Havana. opening Tanuary 16 Other members of the delegation as announced at the White House wil be Henry P. Fletcher, Ambassador to Italy: Oscar Underwood. former Sen- ator from Alabama: Dwight W. Mor- row newly appointed Ambassador to Mexico; Morgan J. O'Brien of New York, James Brown Scott, this city: Ray Lyman Wilbur. president of Le- land Stanford University, Calif., and Dr. Leo S. Rowe, director general of the Pan-American Union, Washing- ton. The new American Ambassador to Cuba, whose appointment will soon be announced, will be added to the dele- gation. . OFFICER SHOT DEAD BY BANK ROBBERS Bandits Flee From Lafayette, Ind., Building Without Trying to Get Money. By the Associated Prei LAFAYETTE. Ind., November 1.— Capt. Charles Arman of the Lafay- ette police force v.as shot and killed this morning when robbers unsuccess- fully attempted to rob the Tippecanoe Loan & Trust Co. The bandits quietly entered the bank, which is directly across the streel from police headquarters. and had lined the employees up prepara- tory to looting the teller's cages. A girl employe stepped on a burglar alarm button and Capt. Arman rushed across the street. As he entered the door he was shot through the head and died instantly. | reported to be in a filth 'PRITTWITZ-G MAY BE ENVOY TO U. S.| { of the German mission to ¥ KATSUJI DEBUCHI. CHINESE ROB SAFE OF U. S, CONSULATE Heirlooms Stolen in Nanking. British Offices Used to House “olera Patients. By the Associated Press, PEKING, China, November 1.—The safe of the American consulate at Nanking has been broken open and its contents stolen, according to official reports to foreign sources here from Nanking. 4 The contents included Colonial sil- ver heirlooms belong to John K. Davis, the consul. Bound volumes of the consulate correspondence are be- ing hawked, on the streets of Nanking for a few cents as waste paper. The consulate has been unoccupied since March 24, when it was aban- doned atter the capture of Nanking by the Cantonese Nationalist forces. The building has been under guard, how- ever, of picked Nationalists troops, avowed to be members of the body- guard of the former Cantonese com- mander, Gen. Chiang -Sh The PBritish consulate at Nanking, also abandoned, s being used as a hospital for sufferers sfrom cholera. The dead are being buried on the con- sulate grounds and the premises are condition. These violations of foreign property are a recent development. For se eral months after March 24 the Na- tionalists guarding the consulates maintained comparative cleanliness, saying that they desired that the for- eign officials return. The recent in- stances are believed to be an indica- tion of loosening of discipline among the Nanking Nationalist: AFFRON By the Associated Press. BERL November 1.—Dr. Fried erich Wilhelm von Prittwitz-Gaffron cot cilor of the German embassy at Rome, is now en route to Berlin for | consultation with emann News of this gives credence to per sistent rumors in political circles that he has been selected to succeed the late Baron Ago von Maltzan as chief ashington He was a close friend of the late baron. Foregin Minister Woman Possessed With 12 Devils Has 10 Extrac By the Assoclated Press, CHICAGO, November 1.—Yesterday Mrs. Sarah Mahood had 12 devils and $1,013. Today she has two devils, the other 10 and the $1,013 having been abstracted by a woman known as “Purity.” A strange lady who Identified her- self as a spirit healer called at Mrs. Mahood's home and informed her that she (Mrs. Mahood) was the possessor of 12 individual devils which needed to be exorcised. The robbers, without attempting to take any mo: rushed from the bank and drove away in an automo- bile, The same strange lady gested that her daughter whom_she recommended as a devil diat r, be called, explaining that MORROW DENES SEEKING TREATY [Rumors in Mexico City Per- sist, However, That New Pact Is to Be Sought. BY HARRY NICHOLLS. Bv Cable to The Star and C News. Copyright, 19 MEXICO CITY, November 1.—Am- bassador Dwight W. Morrow expects | soon to be able to get down to real | work. The official receptions now are { about over, with most of the ambassa- dorial calls made, although he still has a big affair on Friday, when the American colony calls to meet the new envoy. The Ambassador denies reports that he is proposing a new treaty of amity and commerce with Mexico, although observers are convinced that such a measure will surely enter into the sphere of Mr. Morrow's work in the near future. Such a treaty was one of the fore: most measures in the plan of Am- bassador Charles Beecher Warren and matters of more urgent necessity pre- vented Mr. Sheffield from making progress on it. Although silent regarding his mis- sion, it is apparent that Mr. Morrow is optomistic with regard to it. First though, there is the problem of getting settled, which is more difficult as : result of the recent rebel movement This, fortunately, is about ended even though small bandit movements con tinued, Gen. Aguirre, chief of the military operations in the State of Vera Cruz, conferred with President Calles Mon day. His very presence in the capi tal indicates that the military move ment in that State cannot be consid ered organized. At the invitation of the Mexicar government, ir Henry Thornton president of the Canadian Nationa Railways, will arrive in Mexico this month to study the condition of the Mexican national railways. He wil suggest measures needed to place the system on a_paying basis and will re port on the possibility of opening branches. HALL READY T0 QUIT HIS POST ON 1. C. C. Commissioner Advises President He Wishes to Retire—No Effec- tive Date Set. hicazo Daily 27. By the Associated Press. Commissioner Henry C. Hall of the Interstate Commerce Commission has .|advised President Coolidge that he wishes to retire. Mr. Coolidge has not yet accepted the resignation but will be governed by the commissioner's wishes. No ef- fective date has been set for the resgi nation. It was disclosed today at the White House that the President has been discussing possible appointees to vari- ous commissions and boards with Senator Curtis, Republican, Kansas, who spent two hours at the White House yesterday. Commissioner Hall of Colorado Springs, Colo., was appointed to the commission in 1914. LIFEBOAT IS FOUND. LONDON, November 1 (#).—Lloyvds received a report from Milford Haven October 30 that a lifehoat marked Craigavon was washed ashore at Broadhaven on St. Govan Head. » (The steamer Craigavon is 682 tons r and is owned by H. Craig & Co. of Belf: i ted at $100 a Dev. with the aid of a sum of money the devils could be driven forth. All this was done, but two devils remained obdurate. “Purity” then suggested that Mrs. Mahood take home the money. which had been put in a package, and sleep on it, first putting two glasses of water under the bed for the devils to drown in when the force of the money and “Purity" finally drove them out. When M Mahood awoke and opened the package she found that, while there were no indications of the devils having drowned, there were also no indications of the §1,013 remaining in the package. And so she t police. as fast as the papers are printed. Yesterday’s Circulation, 100,859 TWO CENTS. TRAGTION MERGER PROPOSAL MEETS - OFFICIAL DOUBTS son Plan Will Have Rough Road to Travel. COST-PLUS ELEMENT SEEN AS UNFEASIBLE | Brand and Fleharty Indicate They Are Not in Favor of Guar- anteed Return. | The plan of Harley P. Wilson for | consolidating the street car and motor | bus systems of the Distric thas a rough and dublous path to negotiate before it progresses very far in the Publle Utilities Commission. judging from the early reaction which set in today at the District Building. Officials of the commission and others conversant with the District’s transportation problems have only had time to make a cursory examination of the general outline of the plan as submitted officially to the commission vesterday by its author, and for this rveason they were inclined to discuss | it with cautfon and some reluctanee, The consensus scems to be at this'} | time, however, that certain of its major and fundamental features are objectionable. “Cost-Plus” Hit. The principal criticism was leveled at the so-called service at cost or cost plus element of the plan—its very | foundation—which would guarantee the merged company a return of 7 pep" cent annually on the proposed capital- ization of $52,700,000. On this basis, | the owners would be assured an in- come of $3,689,000 a year. Msaj. William E. R. Covell, senfor Assistant Engineer Commissioner and executive officer of the former Utili- tles Commission. who framed the bill designed to force a consolidation of the car companies which failed to pass in the last session of Congress, point- ed out that the executives of the rail- way companies have invariably estl- mated that it would be practically im~ possible to bring the net income up to that amount, even considering the economies in operation that might be sffected through a rearrangemtnt of tracks and having the public revenues pay the expense of crossing policemen and certain paving charges now borne by the traction companies. Moreover, Maj. Covell is doubtful that the savings through a unification would amount to $1,000,000 a year, as estimated by Mr. Wilson. He explaine ed that the heads of the car coms panies had testified at a merger-hears ing conducted by the old commission that economies in operation through a consolidation probably would mot ' exceed $300,000. A $500,000 estimate, he believes, would be liberal. 2 Skeptical on Guarantee. Col. Harrison Brand, jr., vice chair- man of the commisison, and Ralph B. Fleharty, the people’s counsel, also indicated that they were not any too sympathetic with the principle of guaranteeing the consolidated com- pany a predetermined and definite re- turn. This feature alone, it was pointed out, probably would bring about an increased fare, as the com- bined earnings of the companies in recent years, did not exceed $2,500,006 a year. If the given basis of fares failed to yield the $3,689,000 guaran- teed return. the fare adjustment fune of $1.000,000 proposed by Mr. Wilsox would have to be drawn upon. it wa/ said, and the deficit would sub quently have to be made up by creasing fares, issuing new capita} or by loans from the District revenues, Another feature which did not meet the approval of Maj. Covell is the one which provides that the Potomac Elec- tric Power Co. be required to contract solidated company at a rate lower than it now charges. In effect, Maj. Covell said. this would require the power company to sell the curreat under the production cost and force the difference. Trustee Clause Hit. The creation of a board of three trustees, appointed by the Distriet® Commissioners, which would have the puwer to determine conditions on which the consolidated properties : should be operated and the proposal that the merged company be allowed to add to its valuation by additions ' to the $1,000,000 fare adjustment cash fund—two other major items in the Wilson plan—also met Maj. Covell's objection. These trustees, in Maj. Covell opinion, should have no more author- ity than the existing Public Utilities | Commission, whereas, they would compose under Mr. Wilson's scheme, a sort of a super-commission. On the other hand, Maj. Covell believes that the present commission has the time and the authority to manage the consolidated company, and the pro- posed board of trustees would be a more or less superfluous agency, Commissioner Brand and Counsel Fleharty, likewise share view substantially. The former cated that he probably would net oppose the creation of the board .of " trustees should it be given merely supervisory powers and the members assumed at least some of the k of the company executives. i Fleharty, however. said that Congress most likely would not even approve the proposition. Urges Careful Study, The proposal under which the solidated company would be permitf v to add to its valuation by increments to the fare adjustment fund, without providing for a reduction in.its value ation by deductions from the fumd, Maj. Covell said. should be studied carefully. No comment was forthcoming today * on Mr. Wilson's plan from the execu- tives of the traction companies. John H. Hanna, president of the Ca Traction Co.. admitted that he conferred with Mr. Wilson about the plan, but that he is not prepared to agree or disagree with any of the pro- visions or to discuss them for publica. tion. William F. Ham, president of the Washington Railway & Electric Co., was reported out of the city. £ Although the plan is now offictally before the commission, public hear- ings are not likely to be Mr. Wilson submits a s which he promised to do, certain features and other dets which have not been completed. Wilson, however. has not in P when this additional data wom“ submitted. \Early Reaction Indicates Wil- | electric current consumers to subsidize | to furnish electrical power to the con- % ol wital et |