Evening Star Newspaper, November 3, 1927, Page 1

WEATHER: (U. 8. Weather Bureau Forecast.) Rain_this afternoon; mostly cloudy and colder, with lowest temperature about 40 degrees, tonight. Tomorrow fair. Temperature—Highest, 74, at 2:15 p.m. yesterday; lowest, b4, at noon to- day. Full report on page 9. ! “From Press to Home Within the Howe™ The Star’s carrier system flx every city block and the regular tion is delivered to Washington homes as fast as the papers are printed. z l Foening » Star. WITH SUNDAY MORNING EDITION Yesterday’s Circulation, 101,556 ch Closing N. Y. Markets, Pages 14 and 15 [} Entered post_ offl No. 30,501 FALLS ATTORNEY QUIZZED BY JURY INTAMPERING CASE Witness Asked to Explain Telephone Call to Assist- ant Attorney General. DECLARES HE HAS KNOWN OFFICIAL TWENTY YEARS Day and Ruddy Also Called as In- quisitors Pursue Their Inquiry. The trail of grand jury investiga- fions into irregularities that brought the conspiracy trial of Albert B. Fall and Harry F. Sinclair abruptly to an end today led to a mysterious tele- phone call made by Mark B. Thomp son, attorney for the defendant Fall to the Department of Justice. Mr. Thompson appeared unexpect- edly before the grand jury as its first witness today and was questioned closely about a telephone call traced ¢o Daniel Jacksen, an Assistant Attor- ney General. Matters connected with the investi- gation which led to the disclosure of the telephone call were not divulged by the district attorney’s office. Fol- Jowing & tip, investigators for the Dis- trict attorney’s oftice traced the mys- terious call as having been made by Mr. Thompson last week. Fall's attorney, brought into the in vestigation for the first time, was closeted with the grand jury for sume 10 or 15 minutes. Upon leaving the jury room Mr. Thompson unhesitat- ingly explained the reason for his summons by Neil J. Burkinshaw, as- sistant United States attorney. He explained that he had known Assist- snt Attorney General Jackson inti- mately for 20 vears, the latter having been a resident of El Paso, Tex. Mr. Thompson said he had told the grand jury “all about it," but would not divalge what the telephone con- versation was about. Day and Ruddy Called.. A.-Mason Day, contact man to whom the Burns' operatives, alleged 1o have been employed by Sinclair 10 shadow the jurors, reported daily, and Charles G. Rudd: hief vt the detectives, wercd t?e next to arpesr rand jury. erJonx; l.h.:"gmnm that he stond squarety upon his claim of immunity second class matter ‘Washington, D. C. While the story of how Government operatives, working under the direc- tion of United States Attorney Peyton Gordon, kept'a number of Burns de- tectives under surveilance as the latter were ‘“shadowing” the Fall-Sinclair conspiracy trial jury during the past two weeks, cannot be told in advance of action by the grand jury, which now is investigating the entire alleged- jury tampering matter, facts so far brought to light, indicates Washington was a me:ry-go-round of spying dur- ing the past two weeks. Should the grand jury return an indictment on the entire matter sup- mitted to Justice Frederick L. Siddons by Government counsel and which used the court to declare a mistrial in the Teapot Dome case, the intimate details of how private detectives spied on the jurors and how the Govern- ment spi.d on the detectives, will be threshed out in open proceedings. Shortly after receiving a “tip” to the effect that a number of private de- tectives were in town, ich was com- municated to him by Owen J. Roberts, special Government oil prosecutor, Maj. Gordon began an investigation. Through his agents he established the fact to his satisfaction that the detec- tives displayed a keen interest in the personnel of the Fall-Sinclair jury. Detectives' Movements Known. How this was learned is not known at present, but it was stated at the courthouse today that the movements of the detectives about town were well known to the United States attorneys’ office at all times. Then one day last week information was brought to Maj. Gordon that all but five of the men under surveillance had left the city. The Government agents had trailed the men they were assigned to “cover" from one hotel to another, although they did not pursue them while it is alleged they were “shadowing” the jurors, it was stated. RAIL RATES HELD FARM AID PROBLEM Brookhart Says No Relief Bill Alone Can Solve All Difficulties. BY G. GOULD LINCOLN. made yesterday and would decline 1o give testimony that might tend to incriminate him. As a result he is to appear before Chief Justice Wal- ter 1. McCoy 8! the-District Supreme Court tomorrow for a hedring to determine his constitutional rights. Ruddy followed Thompson into the grand jui room and was stil closeted them when adjourn- ment was taken for lunch. Burkinshaw stated before the grand ry that Day's reasons for claiming !:Imunlw were not adequate and that it would be necessary for Justice Mc- to rule upon it. cgi"omorro' an effort will be made to #ix a date for the Government's next attempt to prove that conspiracy #nd fraud attended the making of the lease under which Fall, as Secretary of the Interior, turned over the Teapot Dome naval reserves to Sinclair. Fall thas indicated that an immediate second trial would be to his liking. but coun- sel for himself and for Sinclair have not been =0 willing. Accordingly, after filing application for hearing on & motion of a new trial, Owen J. Rob- erts and Atlee Pomerene of special Government counsel, and Peyton Gor- don, District attorney, have served at- torneys for the defense with notice of what has been done. Argument on the motion has been set for tomorrow morning at 10 o'clock before Justice ¥rederick L. Siddons, who presided at the trial. It is expected that a date 3n January, probably about January 10, will be agreed upon. Merritt Is Silent. Day is a“strapping big fellow, built Bike i foot ball player, and did not appear at all disturbed despite the defiant attitude he has taken. All the detectives summoned to appear were questioned in the District at- torney’s office before Day and Ruddy @ppeared before the grand jury. Merritt, who has been identified by 8 policeman as a man seen shadow- 4ng Kidwell outside the near beer e tablishment in southwest Washing- ton, refused flatly to say anything eoday about his connection with the case. In reply o questions Ruddy Interrupted to say: “He was acting under instructions. Meanwhile, no in fven as 1o what course is to be pur- Wued with regard to Kidwell. Al hough it was expected that Donald foodward, prominent Washington erchant, would appear before the rand jury today, he has not yet put n an appearance. It was at Wood- ‘ward's house that Day, vice president ‘of a Sinclair exploration company, re- ceived reports a directed work of ‘the Burns detectlv Mr. Woodward has disclaimed any knowledge of re- orts having been delivered at hix fome. Day s represented by counsel which ncludes former Justice Danlel Thew Wright of the District Supreme Court. 3He got into touch with Wright shortly 2fter appearing at the courthouse to- v. O ach of the 12 jurors signed vouch- ers today for their pay while serving 2 jurors in the Kall-Sinclair trial fhey will receive $48 each. (this pmount being on the basis of 34 a day or 12 days during which they were in sttendance i« not likely now. at any rate ir will be called before the rand jury. The oil defendant re- furned to his home in New York laat might, Former Secretary Fall, who Wwar bitterly dieappointed over the mne- essity of a second trial, is remaining fn Washington for the time being. tions were To Issuc Many Subpoenas. A score of subpoenas for prominent ersons in New York, Chicago and elrewhere will be issued by the dis- #rict attorney's office in connection with the pending investigation. The yames of these to be subpoenaed have not yet been divulged. Roberts, special Government gounsel, expressed himself today a greatly encouraged over the swift ness with which the grand jury in ation i being conducted. resumed its Wyvestigation this afternoon the first wtness called was Kugene Blavuet 1021 Twentieth street, employed Day as personal chauffeur for Sin- during the period of the trial Railroad freight rates are at the bottom of the American farmer's troubles, Senator Brookhart 01-1;:: insisted today. .An a siatement issu with - the “spproval of the group 'of | progressive Senators from the West which is working on a legislative pro- 11| gram, the Jowa Senator pointed the way to the introduction of a rafiroad bill in the coming session of Con- gress. Dealing with the surplus crop prob- tem through the McNary-Haugen farm aid bill, or a similar measure, Senator Brookhart szid. would not solve the farmers’ problem. “The farm bill will not remove this discrimination (the freight rate charges),” said Senator Brookhart in his statement. “It will require a rali- road bill to consolidate the railroads by condemnation of their stocks and bonds, and to provide for their opera- tion in a little private corporation, earnings of which shall be fixed by law, and with power in Congress to recapture the stock at par.” Says He Will Write Bill Senator Brookhart said that he him- self would prepare and introduce a bill for this purpose, and that he was contident the members of the progres- sive group would get behind it. The statement issued today puts into_more concrete form assertions which have come from various mem- bers of the progressive group that railroad freight rates must be dealt with in connection with the farm problem. It is this belief of the pro- gressives in part that has made them balk at the proposed nomination for President of former Gov. Frank O. Lowden of Illinois. They are not sat- isfied that Mr. Lowden, a son-in-law of George M. Pullman, will go along with them in their demands for rail- road legisiation. Some of the progressive Senators are ready to attack the eandidacy of Mr. Lowden, who has been hailed a friend of the farmer because of h support of the McNary-Haugen farm- aid bill. Not only are they demand- ing his attitute on railroad legisla- tion, but they are calling attention to the expenditure of Lowden money in Missouri in the 1920 preconvention campaign for the election of delegates, which caused a scandal at that time and injured Mr. Lowden's chances of nomination materially. Mr. Lowden was never connected personally with the scandal, but his opponents have used it againet him and are preparing to do so again. Says Loss Is 15 Cents a Bushel. Senator Brookhart said that the American farmer is obtalning from 15 to 20 cents less per bushel for his wheat than the Canadian farmer, be- cause the transportation charges of the latter are less than those imposed on the American farmer, “The farm problem cannot be solved by the mere enactment of a farm bill" said the Brookhart state- | ment. “There 18 no single farm bill that is a cure-all for all the discrimina- tions against the farmer, “About 10 per cent of the farmers’ troubles are due tn excess charges for transportation. For instance, as I WASHINGTON, SPY SYSTEM COVERED CAPITAL DURING OIL CONSPIRACY TRIAL One Group of Detectives vWas Watching Another While They Checked Up on Jurors in Fall-Sinclair Case. Believing that whatever task the out-of-town sleuths had to perform was nearing completion as a result of the egress of the others, Maj. Gordon decided to strike while the iron was hot. Sunday he increased the guard placed about the subjects of the in- vestigation and Monday the search warrants were sworn. That same day they were executed and the object of the United States Attorney—seizure of documentary evidence—was accom- plished. It was explained today that had the Government presented to the court charges that private detectives were shadowing the jury and nothing more, its case would have blown up in an instant because the detectives, if called upon for an explanation would have the obvious reply to state—they were watching the Government operatives who were watching the Jury, “Double-Barreled” Victory. As the Government's investigation of the private detectives neared the threshold of action, along came infor- mation about the Juror Kldwell inci- dent which materially strenthened its case. The four affidavits submit- ted to the court were divided equally with respect to the matter in posse: sion of the Government. Either sub- ject, it is felt, would have been suf- ficient in itself to have brought about the action which the court took, It was a ‘“double-barreled” victory, in the opinion of the Government. When the October panels for jury service were drawn, the Government made its usual investigation when big cases are about to be tried, as to the character and ability of a talesman to serve. This investigation was for the guidance of the Government counsel in selecting the jury, and, after the report was made, the inves- tigators were discharged. Their task was completed, it is stated, the day the trial opened. WINE IVIPORT BAN IS RAPPED ABROAD Seven Nations Protest Bar- rier in Edict to Trade Par- ley at Geneva. By the Associated Press. GENEVA, November 3.—The wine- producing countries of Europe have administered what is regarded as an ial elap at countries like the importation of products ‘af the vine, such as ved and white ‘wines and champagne. These countries haye annexed to the convention for the abolition of import and export prohibitions und restrictions, the text of which was completed today by a co-ordiniting committee of the international con~ ference on the subject now in ses- sion, 4 declaration on the subject. This declaration reads that al- though these countries do not desire to place obstacies in the way of the success of the conference, nor raise a controversy on the question of principles, nevertheless they are con- vinced that prohibition of viticultural products can not be justified under terms of the convention. Seven Nations Aligned. In particular, the declaration, which is adhered to by the delegations of France, Greece, Hungary, lialy, Por- tugal, Jugoslavia and Switzerland, in- sists that the prevention of the im- portation of wine can not be justi- fled under article 4 of the convention. This article permits the signatory nations to maintain prohibitions and restrictions imposed to protect the public health. By Inference, these countries argue that drinking of wine is not injurious to the health and wine cannot be excluded from any country on that ground. . 40-DEGREE TEMPERATURE IS FORECAST TOMORROW With temperatures during the past several days holding considerably above the normal heights for this sea- son, Washington will experience what might seem to he a “cold wave” to- night when the temperature drops to about its normal seasonable level. Forecasters at the United States Weather Bureau shortly before noon today said the temperature probably would reach a minimum of 40 degrees at 8 o'clock tomorrow morning, after which the mercury will climb slowly. This would be 4 degrees2below the aver- age for the date, and will present a marked contrast to the 62 degrees reg- istered at the same hour this morning. ‘Weather Bureau officials do not an- ticipate frost for the District and im- mediate vicinity, however, because the minimum temperature which will be recorded will not be low enough to create frost in the face of other con- ditions of active air currents and poor radiation. October 23 is the normal “frost date” for Washington, the bu- reau declares, and to date no frost has appeared here, It is possible that the nearest frost will form in the western part of Maryland, they said. o Chaliapin Wins Soviet Divorce. MOSCOW, November 3 (P).—The Moscow People’s Court today formal- ly granted a divorce decree to Fredor Chaliapin. famous basso, from Yolle Tgnatievna Chaliapin, whom he mar. ried 29 years ago and from whom he | write, the quotations in the Des (Continued on Page 5, Column 3. had been separated for the past 21 years. By the Associated Press NEW YORK. November 3.—Theresa Bloom, 18-year-old Los Angeles so- prano, told today how a black cat, svmbol of bad luck, had started her on the road to success. “Two years ago," she said, “I heard that the Los Angeles Art Center was giving a scholarship for music and | went to the building with my heart in my throat. As | entered | met a black cat and I was terribly super- stitious. 1 let out such a cry that al] the critics rushed out and to my astonisament : ‘What a magnificent, powert and beautifal Black Cat Starts Soprano‘s Success | When Music Critics Hear Her Scream volce 1 received the first scholar- ship the Art Center ever gave." Six weeks ago, having completed her work under the scholarship, Miss Bloom slipped away from home, against her mother's wishes, and “hitch-hiked” to New York for an audition. “I agree with the black cat” Wil liam Thorner, teacher of Galli-Curel, very beautiful lyric soprano voice. Not only will 1 give her lessons, but 1 will do eve to make her as successful as Rosa Ponselle or Mary Lewis.” B IAE T, D. C. METHOD TO BETTER CALIBER OF JURORS PROPOSED BY TAFT Exemptions From Jury Serv- ice Should Be Reduced, He Tells Crime Body. THURSDAY, LAW ENFORCING MINUS FEAR OR FAVOR URGED Nation Aroused to Need for Im- provement in Legal Machinery, Chief Justice Holds. A “further examination of the methods by which jurors are select- ed,” so that “jurors of weak intelli- gence, of little experience and sub- ject to emotions easily aroused” may be eliminated from the panel, was advocated today by Chief Justice Taft at the National Conference for Reduc- tion of Crime in the Willard Hotel. The method for selection, the Chief Justice declared, ought not to be such that counsel for the defendants may exclude worthy citizens from the panel in favor of persons less re- sponsible, Too Many Exemptions. “Exemptions from jury service ought to be cut down,” Mr. Taft said, “and society ought to be able to secure a jury that approaches the issues with a sense of its obligation to enforce the law without fear or favor, and with intelligence enough to learn from the judge what the law 18 and to weigh the evidence with ref- erence to its violation. “The country has been aroused to the necessity of bettering our legal machinery for prosecution of crime and this hae led to the organization of commissions to study what can be done in regard to the matter. The movement thus inaugurated has locused attention on the responsibility of Legislatures of the States for the improvement of criminal procedure and the importance of adopting it to present needs. “Public opinion as manifested in the public press, has created a de- mand for investigation. Elected mem- bers of Legislatures have become aware of -the obligation they are under to see to it that measures of reform are adopted to protect society. The general interests of the people have been forgotten in failing to make our procedure such that ac- cused persons may be promptly tried and if guilty convicted and pun- ished. “We are an easy-goin; eople. We allow abuses to cmep‘ lnp u‘;ul they become so objectionable that we m_n purselves and then work radi reforms. | hope such a time is at hand now. The country at large is ripe for measures of this kind. Baumes’ Work Praised. “Without examining closely 'the statutes proposed and partly carried through by Senator Baumes and his asgociates, it seems o me that they indicate that the forgotten man, the victim of the murderer and the robber and the criminal, as well as society at large, is belng remembered in the new legislation in New York. We are all in favor, of course, of measures which will induce criminals to become law- abiding citizens, but we must never forget that the chief and first object of prosecution of crime i its deterrent effect upon future would-be criminals in the protection of society. We must not allow our interest in criminals to £o to the point of making effective prosecution of crime and its punish- ment subordinate to schemes for re- form of criminals, however admirable they may be. “Our system of criminal prosecution suffers, because we have not, through the States, an_adequate police forae (Continued on Page 5, Column 5. . MARINES SHOOT 0 IN GUERRILLA WAR Two Combats Reported in Search for Missing Airmen in Nicaragua. By the Associated Press. MANAGUA, Nicaragua, Novembe: 3.—Continuing their search for two missing Marine Corps aviators, a combined combat patrol of United States Marines and National Guards- men have fought two more engage- ments with Nicaraguan irregulars, in which 60 of the guerrillas were killed or wounded. One Marine was wounded when cut by flying glass from a bomb hurled by the bandits and two Guardsmen were killed. Combat patrols have heen rearch- irg the region near Kl Chipote, de- partment of Nueva Segovia, ever since Second Lieut. E. A. Thomas and Sergt. Frank Dowdell engaged in bombing followers of the rebel Gen. Augusto Sandino, crashed in (heir plane and disappeared early in October. Search for them is being actively pushed by combat patrols in Northwestern Nicaragua. There have been frequent encounters be- tween the bandits and these patrols. The latest encounter took place about 6 miles east of Jicaro when the patrol met 250 guerrillas. A flerce battle ensued. Aside from wounding the Marine and killing two Guards- men, the bandit five seriously wound- ed a muleteer, and six mules were slain. L On the afternoon of the same day the patrol. then about 3 miles from Jicaro, was ambushed by another bandit gang. A few minutes of fght- ing ensued. The patrol, although heavily outnumbered, scattered the guerilias, The combat patrol was commanded by Lieuts. C. J. Chappell und Moses J. Gould, who recently engaged lireg- ulars in a three-hour battle. Five bandits were killed in that encounter and several wounded. Previous to that encounter 67 irregulars were killed in severe fight- ing, which occurred when 300 ban- dits closed in on a patrol of 40 Ma- rines and constabulary from (hree sides. —— Radio Proq?lm—l’nge kL] NOVEMBER 3, 1927 — F1KFT Y PAGES., *# PROGRESSIVES? (#) Means Associated Press. INDIVIDUAL INCOME LEVIES TAKEN UP House Ways and Means Com- mittee Has Longest List of Witnesses. By the Associated Press. Consideration of the tax rate on individual incomes was taken up to- day by the House ways and means committee, which received a wide va- riety of recommendations, many of them of a purely administrative nature, The whole day was set aside for discussion of this phase of the tax subject, a number of requests to be heard having been received by the committee which has given little in- dication that it would seriously con- sider revision of the individual in- comes levies except possibly im the higher brackets. Some Iittle time was lost at the out- set, the committee permitting Nathan William MacChesney, representing the Natlonal Association of Real Estate Boards, to conclude argument begun_ yesterday on the advisability of revising a number of provisions in the real estate tax law. L. A. Lecher of Milwaukee, Wis.. representing a law firm of which he is a member, was the first witness to discuss the individual income tax pro- visions. Practically all of his recom- mendations concerned revision of ad- ministrative features and technical- ities in the phrasing of the present statute. The witness list for the day was hearings and included the names of two women, the first time in the memory of committee clerks that women have sought to present their views to a congressional com- mittee on the subject of tax reduc- tion. The women, Lena M. Phillips of New York City and Martha L. Con- nole of Eust St. Louis, I, were listed as spokesmen for the National Fed- eration of Business and Professional Women's Clubs. While up until to- day the question of revision of indi- vidual income rates has occupied & back seat during discussions of tax reduction, the Treasury, in presenting its recommendation that the prospec- tive total reduction should be held to $225,000,000, advocated a slice in rates applying to incomes between $14,000 and $90,000. Certain Changes Unlikely. At the same time, however, it was announced that the administration did not favor a slash on normal income rates or any further increase of per- sonal exemption. In addition con- gressional leaders of both parties have given little indication that they will seek downward revision of the normal income levy or increase of exemptlons, a_general belief prevail- ~(Continued on Page 2. Column - FILIPINOS ARE SILENT | ON WHITE HOUSE TALK Quezon and Osmena Refuse to Comment on Conference With President. Manuel Quezon, president of the Phillppine Senate, and Sergio Osmena, presiding officer of the Philippine lower House, who have been quoted extensively in the press regarding independence and other matters the longest during the present tax | ROUTE SIGNS HELD VITAL NEED Visitors Declared Lost in Maze of Un- marked Streets—Traffic Jams Laid to Strangers’ Ignorance. BY WILLIAM ULLMAN, Mecca for tens of thousands of motor travelers, dotted with scores of shrines of historic and cultural in- terest, a meeting point for the leading highways of the Eastern Seaboard over which traffic radiates in all directions, Washington is appraised by its host of visitors as the hardest city in the country in which to find one's way around. Filled with much interest, the Cap- ital hides from many the beauty of which it is so justly proud, merely ba- cause it has no directional signs point- ing out to the tourists the pathway he must traverse te find the public building or patriotic shrine he may STRIKERS REPLACE PICKETING SYSTEM Mass Meetings Held Near Mines—Governor’s 0. K. Claimed. By the Associated Pr DENVER. ' Colo.. November 3.— Mass meetings of idle miners near the larger properties in the southern Colo- rado coal strike area were planned today in place of picketing declared illegal by the State. Leaders of the Industrial Workers of the World in charge of strike ac- tivities, announced at theif headquar- ters at Walsenburg last night that Gov. W. H. Adams had told them they could hold meetings and that this method of “legalized picketing” would supplant actual patrol of mines. e mass meeting plan was tested yesterday at a Colorado KFuel & Iron Co. mine near Walsenburg. Hundreds of strike sympathizers assembled a short distance from the mine shaft as workers came off shift. Company officials protested that this was but another form of picketing and that it would result in intimida- tion of miners wishing to work. Operators throughout the southern field reported that many men return- ed to work yesterday when the threat of I. W. W, leaders to resume picket- ing in defiance of State orders, failed to_materialize. While citizens joined mine operators in protesting the mass meetings, Gov. Adams declined to state what action he would take other than to deny re- ports he contemplated signing an order for mobilization of the Colorado National Guard at present. FRENCH PARLIAMENT CONFERS ON BUDGET | Foreign Affairs Chairman Quits; Post as Fate of Government Hangs in Balance. By the Associated Press. appertaining to the administration of the affairs of the Philippine Islands, were silent when they left President Coolidge today after an hour's con- ference. These two Philippine legislators and political leaders declined to discuss their visit to the White House other than to say that they called to pay their respects and to talk Philippine subjects generally. They sald that if there was to be any announcement made of the nature of the subjects discussed at the conference it would have to come from the President himself. Quezon did admit, however, that he and his associate did not bring up the subject of independence for the Islands, but would not say whether or President introduced the Gnevera, missioner, Philippine PARIS, November 3.—The French Parliament, which will determine the tate of the present Poincare National Union Government, convened today in its regular Autumn session to take up the budget question as its chief problem. M. Franklin-Bouillon started the fireworks by resigning his chairman- ship of the foreign affairs committee of the Chamber of Deputies. His action was taken as a result of his recent break with the Radical party, which threw down his plea that it re- main in Premier Poincare’s National Union. M. Franklin-Bouillon is widely ac- quainted in the United States and Great Britain through his visits to those countries. He speaks English and is one of the best informed French political figures on Anglo- Saxon affairs, It is reported that he will organize a new party in the Chamber com- posed of Radicaly who agree with him ip favoring support for the Na Ho! Govarnmant. yhave traveled hundreds of miles to see. The end of the touring season sug- gests to many the thought that before another year ‘draws its motoring throng to the Capital some effort should be taken to remedy the con- spicuous deficiency of the District in respect to directional signs. Where other cities and even smaller towns go to great lengths to mark not only streets to leading places of interest within their boundaries, but also through highways, the District 1s pointed out as a notable example of the other extreme. Where even the smallest municipalities rarely poorly equipped with directional signs, the Capital is almost entirely without VOIDING OF BRICK CONTRACT ASKED | McCarl Recommends Cancel- lation in Opinion to D. C. Heads. Cancellation of the contract award- | ed to the United Clay Products Co. for furnishing the District with" 1,000,000 | vitrified sewer brick was recommend- ed to the District Commissioners to- day by Controller General McCarl. The contract was awarded this firm over the protest of John Clark, Wash ington representative of the Victor Cushwa Co., brick makers, of Hagers- town, M which submitted the low bid. The Commissioners rejected the Hagerstown firm’s bid on the ground that its brick did not come up to specifications with respect to- vitrifica- tion. McCarl Gives Ruling. The United Clay Products Co. quoted the second lowest price, which | was 38 cents higher than that of Clark's firm. Mr. McCarl's opinion on the brick case read, in part: “It appears after the inspection and examination of the brick had been made, and after samples had been j broken into pieces at the instance of | Mr. John R. Clark, the low bidder, the | samples of brick were sent to the Bu- reau of Standards for testing purposes to determine the quality, vitrification and so forth, and that the test dis- closed that the brick offered by both | bidders might have been rejected, but | that the bricks offered by the said | John R. Clark, low bidder, were of bet- jter quality than the bricks offered at the higher bid. “It is also to be noted that the dif- ference in price between the two bids after deduction of discount is only 38 cents per thousand, which in view lof the facts appearing would warrant | the assumption that the bricks offered by both the bidders in question are of the same class and quality, the only difference being as to the price, Simply because the bricks are offered at a higher price or by a particular bidder is no justification for the as- sumption that they are of better qual- ity; especially is this true under such circumstances as here presented. i No Deliveries Made. | "It is understood that no deliveries of brick have been made under said contract and that final consummation i thereof has not been effected. In view of the facts of record and for the, rea- sons herein stated, it would appear that the interests of the District of Columbia demand that the award of the contract be canceled; that new bids be asked on specifications show: lv‘. among other things,, actual qu: 1ty, vitrification, etc., of the bricks needed, as indicated in the last para- graph of your letter, and that the low- | est bidder offering bricks meeting the requirements of the specifications should be accepted.” Steamer Is Believed Lost. LIMERICK, Ireland, November 3 (#).—The small steamer Loop Head, which left South Wales for here | October 27, was listed today as unre- ported. It was feared that the boat, which carri a crew of 12, had foundered in the gale which swept the coast lamt wi e | TWO CENTS. - STREET CAR HEADS FAIL T0 REGENE PLANS FOR MERGER Wilson Tells W. R. & E. Di- rectors Proposal Is Not Yet Completed. EXPERTS HOLD METHOD SIMILAR TO FORMER ONE Capital Traction Heads to Meet Tomorrow, but Problem May Not Come Up. Although the plan of Harley P. Wil son for consolidating the transporta- tion systems of the District has been officially before the Public Utilities Commission for four days, it has not vet been formally submitted to the boards of directors of either the Cap~ ital Traction or Washington Rallway and Electric companies. Charles J. Bell, chairman of the board of directors of the Washington Railway and Electric Co., and Geol E. Hamilton, who heads the director- ate of the Capital Traction Co., both revealed today that the only informa- tion they have had about Mr. Wilson's plan is what they have gathered from the newspapers. Thus far. only a gen- eral outline of the scheme has been made public, but Mr. Wilson has in- dicated that the other features and details would be submitted to the commission at a later date. Plan Still Incomplete. . The board of directors of the Wash- ington Railway & Electric met yesterday afternoon, and Mr. Wilson, a member, who was present, merely pointed out in the course of the pro- ceedings that his merger plan was yet in an incompleted state not ready, therefore. for the board' o tion. Mr. Wilson, however, it was said, did explain, In response to a query, that the plan was not similar to the one concelved by the North American Co. of New York two years ago and presented to the District Commissioners, who then also consti- tuted the Public Utilities Commission. Utilities experts at the District Build- ing, who carefully examined Mr. Wil- son’s plan, have declared that, ex for several minor modefications, it is practically identical with the one ad- vocated by the New York investment e Capita T ' e pital Traction Co.' of directors will meet !omorr:'bo:k-f‘ ernoon, but there is no indication that the merger plan wi Abat p! 11 b3 consid- Says He Talked to Owners. Whather the stockholders in either of the two companies, aside from the North American Co. which is reputed to have the lg-t single holding of stock in the Washington Railway and Electric Co. and sub- stantial hol in the Capital Trae- tion Co, have been advised of the various financlal details of Mr, Wil- son's plan, is one question that is puzzling the utility experts. Mr. Wilson rlnud out in the gen- eral outline of the plan submitted to the commission that he had devoted much time and effort to the difficult problem of inducing the owners of the street railway properties to ac- cept as a capitalization for the merged company the earnings of ‘a typical year rather than the court valuation. Legal Advisers Discuss Plan. Mr. Wilson and his 1 advisors, William G. McAdoo ln':’Brio' ett, discussed the mergen plan at & three-hour conference today with the members of the Public Utilities Com« mission. The conference was held be- hind closed doors, and at conelu- sion John W. Childress, chairman of the commission, issued the following statement: “Mr. Harley P. Wilson and his attor. neys, Mr. McAdoo and Mr. Clagett, came in to have a discussion with the Public Utilities Commission and the people’s council upon the proposed merger. Mr. Wilson wished firr to set straight the published story of the similarity of his plan to that submit. ted in informal conference by Mr. Dolittle in June, 1926, with some of the stockholders of some of the trac- tion companies and the officials of the Public Utilities Commissiop at that time. Mr. Wilson's position in that matter is set forth in the following memorandum presented by him: “The suggestion has been made that the rate base of $50,000,000 for the Consolidated Street Railways anl busses made this week to the Public Utilities Commission is the same rafe base discussed by representatives of the street railway companies for a consolidation with the Public Utilities Commission in June, 1926. Rate Base Lower. “As a matter of fact, the rate base of $50,000,000 represents a reduction of approximately $11,000,000 from the bage suggested in 1926, and the street railway companies never even com- mitted themselves then. ‘The rate base discussed !enut{w in 1926 was approximately $51,000,000, but this figure represented only the transit properties as of June 30, inside of the District of Columbia, whereas the rate base suggested in the so-called Wilson plan includes the transit properties both inside and ous- side of the District of Columbia and also includes additions and better- ments up to December 31, 1926, and in- cludes as well the properties of the Washington Rapid Transit Co. “On the bassi of the figure of $51,- 000,000 used in discussions of June, 1926, the value as of December 31, ::2 5 wouldl?' 'fl.‘ 2!!.:00 Oxcluflnu e properties of e Wi Rapid Transit Co., or 0! n:'t‘:l; fi;,‘ooo.oau over the basts ssed in “Mr. Wilson also talked with the commission as to the advantages of the ultimate need of a traction merger for Washington based upon its future as the Nation's capital and also from both the economic and esthetic value to_the city and capital, 3 “He had with him figures which were the result of study by his engi neers, which had convinced him, and which he believed would convince the public and the commission that his plan. would save approximately $1- 000,000 per year. These figures wers not exhibited, but he suggested: that h.uk won:a lh‘!.‘;:. u.m conference next week, at whicl e they would ;un;x In‘l;"tully. 5 % e “*Mr. son stated. in leaving he would in due season n::.u -pm‘:f tion llorn- Du!;:h.‘ !m:flnl before 3 cominission when proposed 3 ::.o in l:‘x’vllhed -;: acted upon taa" .