Evening Star Newspaper, December 7, 1927, Page 1

WEATHER. (0. 8. Weather Bureau Forecast.) Rain tonight and tomorrow; warmer tonight; colder tomorrow afternoon and night. Temperature—Highest, 51, at 4 p.m. vesterday: lowest, 40, at 7:30 a.m. to- day. Full report on page 9. Ch Closing N. Y. Markets, Pages 14 and 15 WITH SUNDAY MORNING EDITION No. 30,535. post office, Entered as second clasa matte; Washington. D. C WASHINGTON, D. (., WEDNESDAY, DECEMBER 7, 1927 . FIFTY-FOUR PAGES. ¢ Foening i * * “From Press to Home Within the Hour” The Star's carrier system covers every city block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. Yesterday’s Circulation, 104,259 (#) Means Associated Press. TWO CENTS. HUGHES DECLINES TO RUN; G. 0. P. STILL DEADLOCKED IN CONVENTION CITY FIGHT Field Narrows, With Coolidge Out of Race; PARTY THROWN INTO CONFUSION Hilles Is Silent on Ex-Secretary’s Statement. (XS ™ BY G. GOULD LINCOLN. The East has lost its two promi- fient Republican presidential possi- bilitics—President Calvin Coolidge and Charles Evans Hughes of New York. While Republican leaders today were mourning the statement of President Coolidge to the Republican national committee finally eliminat- ing himself, Mr. Hughes gave out a statement in New York which ap- parently has taken him no Jless ef- fectually out of the presidential race of 1928, The effect of the two statements, one by the President and the other by Mr. Hughes, has been to throw the Republican ranks, momentarily at least, into confusion. The names of Hoover, Lowden and Dawes, the three other Republicans most prominently mentioned in con- nection with the presidential nomina- tion, were on the lips of many. Field Narrows to Three. Unless there should be a change, it appears that the nomination will Q\'e(?t‘l’la]ly go to the Far West, with Secretary Hoover of the Deparm’\em of Commerce, or to the Middle West, with either Vice President Dawes or former Gov. Frank O. Lowden as the choice of the Republican national convention next June. y Mr. Hughes declared qnequwocally that he was not a candidate for the presidential nomination. He added that he stood by the statement he issued last May, in which he said: “I do not wish my name to be used in any contingency. Iam too eld to run for President, and I would neither seek nor accept the nomina- tion.” His statement today was as follows: “I ara not a candidate in any sense. T am keenly disappointed by Mr. Cool- idge's decision, but so far as my own attitude toward the candidacy is con- cerned, 1 stand by the statement I made last May. I have notbing to add to it Coolidge Definitely Out. The great majority of the members of the Republican national committee, as they assembled today to select a city in which to hold the party’s na- tional convention next year, expressed their conviction that Mr. Coolidge, in his statement last night, had definite- 1y removed himse]f from consideration for the presidential nomination. Those members of the committee who have been desirous of renominat- ing the President—even by the draft method if necessary—regretfully said that they felt that Mr. Coolidge had taken himself out of the picture. The only contingency, which might arise, they said, that would bring about the nomination of the President would be a deadlock convention, backs ed by a wave of popular feeling thl?( Mr. Coolidge must be the party's nominee. The President said to the national eommittee at the White House last vening: y "Thifi is naturally the time to be planning for the future. The party will soon place in nomination its can- didate to succced me. 5 “To give time for mature delibera- tion, I stated to the country August 2 that I did not choose to run for President in 1928. My statement stands. No one should be led to sup- pose that I have modified it. My de- sion will be respected. Eliminated, He Says. *After 1 had been eliminated, the party began, and should vigorously continue, the serious task of selecting another ' candi from among the numbers of distinguished men avail- able.” The President night by the give great of other tement last immediately impetus to the candidack Republicans who have been mentioned for the presidential nomination. The prediction was broadcast that fa greater activity would be evinced by the friends of Mr. Hoover, Vice Presi- dent Dawes, and Mr. Lowden. Willis Enters Race. One immediate affect was a state- ment by Senator Frank B. Willis of Ohio, casting his hat in the ring. Senator Willis said: umerous friends in Ohio, and some in other States, have been good enough to wmention my name in con- nection with the Republican nomi- mation for the presidency. If the Republicans of Ohio feel that I can creditably represent them as their eandidato in the forthcoming national convention, I shall feel it a great honor to do so.” Senator Curtis of Kansas, the Re- publican leader of the Senate, hither- %o has been the only formally an- nounced Republican candidate for the residential nomination. When he was fo1d of the President’s statement he said that he had been convinced for some time that the President would S0t permit himself to be nominated and that he was definitely out of the ce. ¢ P therwise,” said Senator Curtis, “I would not have entered the fleld.” Other Republican presidential possi- pilities include Senator Norris of Ne braska, who Ias had the backing of the progressive group in the Senate, and Senator Borah of Idaho. Republicans of the East who have n favorable either to the nomina- of dent Coolidge or M o Page 7, Golump By CHARLES EVANS HUGHES. I am not a candidate in any sense. I am keenly disappoint- ed by Mr. Coolidge's decisivn, but so far as my own attitude toward the candidacy is con- cerned, I stand by the state- ment I made last May. I have nothing to add to it. In his statement last May Mr. Hughes said: “I do mot wish my name to be used in any contingency. I am too old to run for Presi- dent and T would neither seek nor accept the nomination.” WAR DANGER SEEN INEASTERN EURDPE Lithuanian Premier Opens Attack on Poland Before League Council. i By the Assoclated Press. GENEVA, December 7.—Conditions which threaten to endanger the peace of Eastern Europe now exist, Pre- mier Waldemaras of Lithuania told the Council of the League of Nations today, opening an attack on Poland In the present Polish-Lithuanian con- troversy. Premier Waldemaras charged that the Polish Minister at Riga promised aid to Lithuanian refugees who were in Latvia conspiring against the Lithuanian regime, provided that they fulfilled “certain conditions.” The premier asked the Council to hold Poland responsible for the or- ganization on Polish sofl of bands which he declared were fomenting strife in Lithuania. Asks An Inquiry. Finally he requested the Council to order an inquiry into the alleged persecution of Lithuanians in the district of Vilna, including the clergy, and into the closing of Lithuanian schools. Foreign Minister Zaleski of Poland, presenting the Polish case, asked the Council to rule that the state of war which Lithuania says exists between the two countires, is incom- patible avith the covenant of the League of Nations, of which Lithu- ania is a member, and should be dis- continued. He said that while only fictitious, the state of war might be transformed into a war of carnage by some unhappy incident. He also requested the council to rule that the Lithuanian attitude is a danger to general peace. Replying to the general accusation of Premier Waldemaras that Poland had conspired against the independ- ence of Lithuania, M. Zaleski said that Poland has always and will al- ways give asylum to political refugees, but denied that the Polish authori- ties. had connived with Lithuanian refugees against the independence of Lithuania, or for the overthrow of the existing regime there. Helped in Independence. 1 “We have never menaced Lithuania,” | he said. *On the contrary, we have helped her guard her independence.” The great powers have endeavored in vain to persuade Premier Walde- maras to establish diplomatic rela- tions with Poland as a preliminary step to harmonizing differences be- tween the two countries. He re- mained firm in his refusal, declar- ing that Lithuania_must have some (Continued on Page 6, Column 1.) Out of Presidential Race By CALVIN COOLIDGE. This is naturally the time to be planning for the future. The party will soon place in nomination its candid: succeed me. To give time for mature de- liberation I stated to the Country on August 2 that I did not choose to run for Pres- ident in 1928. My statement stands. No one should be led to suppose that I have modi- fled it. My decision will be re- spected. After I had been eliminated the party began, and should vigorously con- tinue, the serious task of se- lecting another candidate from among the numbers of distinguished men available. MR. HUGHES, ANTLJEWISH RIOTS INCLUDE MAGYARS SMITH 1 REFUSED SENATE OATH BY WIEOF50T0 Y Action Follows Vain Plea by Borah to Seat Him Pend- ing Inquiry. By a vote of 50 to 32, the Senate this afternoon rejected a motion to permit Senator-elect Frank L. Smith of Illinois to take the oath of office, pending further . investigation of charges that he spent large sums of money in the primary campaign. The vote came suddenly after an hour of debate, in which Senator Borah, Republican, of Idaho, and Sen- ator Reed, Democrat, of Missouri, took part. Senator Borah, although not contending that Smith should remain a member of the Senate, argued that he was entitled to be sworn in on the .,#e of his credentials, pending in- e%nnflun. Three Reported SIaih and Many Injured Near Ruma- nia-Hungary Border. By the Associated Press. BUDAPEST, Hungary, December 7. —Two days of disorder, during which three ‘men were stabbed to death, many persons injured and several buildings destroyed, have occurred in the town of Nagyvard, Rumania, near the Rumanian-Hungarian bor- der, reports from the frontier state. The demonstrations were at first directed against the Jews and then against the Magyars. Nagyvard formerly belonged to Hungary, but was annexed to Rumania The ‘first disorders occurred Sun- day, but are said to have been com- paratively unimportant. On Monday there were somewhat bloody conflicts, with the result that citizens were afraid to leave their homes. Alleged Spy Slain. The attendance of several thousand students from various parts of Transylvania for a congress was the occasion for the demonstrations. The congress was held under the super- vision of Prof. Cuza, noted as an anti-Semite. A man named Sonnefeld, suspected of spying on the proceedings of the congress, was stabbed to death. M. Vajszlovitz, owner of the Hotel Du Pare, which was attacked by the stu- dents, was also stabbed to death, as was an unnamed Hungarian actor. Many persons are reported to have been seriously injured. The offices of two Hungarian news- papers, a printing plant, the offices of the Catholic_Union_Society _and_the (Continued on Page 5, Column 4. et REVOLT IS NIPPED. Government Quells Uprising in San Salvador. SAN SALVADOR, Republic of Sal- idor, December 7 (4).—An unsu tul attempt to start an uprising in San Salvador was made today. After putting down the movement, the Gov- ernment proclaimed a state of siege. Most of the alleged plotters are re- ported to have been arrested. Others have fled. Various labor organizations and stu- dent societies immediately announced their support of the government and the situation was stated to be in hand. $1.000,000 in U. S. Gold, First Since War, Goes to England Tonight in Secret Deal By the Associated Press. NEW YORK, December 7 (#).— Gold will be moved from New York to London tonight for the first timé since the outhreak of the World War, in 1914, The shipment, which amounts to $1,000,000, was announced by the In- ternational Acceptance Bank, Inc., but with the excaption of a statement that it was a “special transaction” no details were made publie. ‘The gold, in the form of coin, was removed from the vaults of the Fed- eral Reserve Bank of New York for forwarding on the Cunard liner Aqul- tania, salling at midnight, to a corre- spondent in London. Although the sensational advance in sterling excl - hagy caused Wall |5 Street to include in its calculations the possibility that part of the huge hoard of gold accumulated in this country since the war might be transferred to England, announcement yesterday that & shipment actually had been ar- ranged occasioned some surprise. Most bankers who have studied the forelgn exchange situation believed that sterling still had at least half a cent further to advance before the transfer of gold from New York to London would become profitable, The advance had carried the sterling eable rate yesterday up to §$4.88%. Virtually all foreign exchange experts had fig- ured that the transfer level was around $4.88%, or even higher. Although the umount of the ship- ment is small, the announcement W large In Importance in Wall Reed Answers Borah. Answering Senator Borah, Senator Reed, who headed the special com- mittee that inquired into the cam- paign expenditures latst year, offered a resolution, which was adopted, per- mitting Mr. Smith to be heard from the floor of the Senate in his own de- fense, without actually administering to _him the oath of Senator. Following the vote by which the Senate refused decisively to admin- ister the oath in advance of an in- quiry, the body proceeded immediate- 1y to consider other pending motions relating to whether further inquiry into Mr. Smith's case should be made by the regular committee on privi- leges and election or by a speclal cam- paign expenditures committee. On the vote by which the oath was denied, several Southern Democratic Senators voted in favor of administer- ing the oath, pending investigation. The vote came when Senator Deneen, Republican, of 1llinois, offered a sub- stitute for the pending resolution of Senator Norris, The Deneen substitute sought to have the Senate decide to administer the oath without expressing any opinion on the question whether he should finally remain in the Senate. Thus, an affirmative vote was to ad- minister the oath and a negative vote to deny it. Motion to Refer Fails. After it had voted down®the mo- tion to administer the oath immedi- ately to Mr. Smith, the Senate also rejected another motion by Senator Deneen which would have referred the Smith case to the regular Senate committee on privileges and elections. The final vote then came on the resolution of Senator Norris of Ne- braska, which was adopted, 53 to 28, and which provides that the ¢laim of Smith to a seat in the Senate is re- ferred to the special campaign ex- penditure committee, headed by Sen- ator Reed, Democrat, of Missouri, which committee made the investiga- tion on which the resolution to pre- vent Smith from taking the oath was based. The Norris resolution as amended directs the special committee to take further evidence and also carries the suggestion of Senator Reed of Missouri that Mr. Smith may have the privilege of the floor of the Senate for the purpose of defending his claim to be sworn in as a Senator. After thus disposing of the case of Smith of Illinois, the Senate recessed for 45 minutes, after which it is ex. pected the case of Senator-elect Vare of Pennsylvania will be taken up. It is not regarded as likely, however, that the Vare case will reach a vote today, How They Voted. The roll call follows: For the oath: Republicans — Bingham, Borah, Brookhart, Curtis, Dineen, Edge, Fess, Gillett, Goff, Gould, Greene, Hale, Keyes. McLean, Metcalf, Moses, Phipps, Pine, Reed of Pennsylvania, ctt, Schall, Shortridge, Smoot, Steiwer, Warren, Waterman and Wat- son—2T. Democrats—Blease, Broussard, Over- man, Ransdell, Smith of South Caro- lina—5. Total, 82, Against the oath: Republicans—Blaine, Capper, Couz- ens, Dale, Frazier, Howell, Johnson, Jones of Washington, La Follette, McMaster, McNary, Nye and Willis— 13 Democrats—Ashurst, Barkley, Bay- ard, Black, Bratton, Bruce, Caraway, DI, Edwards, Ferris, Fletcher, George, Glass, Harrls, Harrison, Hawes, Hayden, Heflln, Kendrick, MeKellar, yfield, Neely, Pittman, Reed of Missourl. Robinson of Arkan- sas, Sheppard, Simmons, Stephens, wanson, Thomas, Trammell, Tyd- ings, Tysom, Wagner, Walsh of Massachusetts and Wheeler—36, Farmer-Laboy—Shipstead—1, otal, 60, {_..A - 13,500 Volts Fail To Kill; Worker Is Revived by Friends By tts Associated Press. BUENOS AIRES, December T.— Juan Moreno was alive today after receiving 13,500 volts of electricity through his body when he came in contact with a live wire. Moreno, employed by a radio company in Monte Grande, near Buenos Aires, was shocked while at work. His companions, although believing him dead, resorted to ar- tificial respiration. Moreno re- gained consciousness within 15 minutes and was found to have suffered only slight burns. This was Moreno's second misad- venture with electricity. On a previous_occasion he was shocked in the head and turned several somersaults before righting himself. . BURNS MAN TELLS OF JURY TRAILING Chief of Shadowers on Stand in Contempt Case After Ar- raignment Is Denied. | Pursuant to the action of Justice Frederick L. Siddons yesterday after- noon in overruling without prejudice the motions of the six respondents in the Sinclair-Burns criminal contempt case to dismiss the proceedings, the Government today delved Into the task of proving the allegations set forth in its contempt petition that Harry F. Sinclair, William J. Burns, Henry Mason Day, Sheldon Clark, W. Sherman Burns and Charles L. Vietsch sought to influence the ver- dict of the Teapot Dome jury. ‘When court opened this morning, United States Attorney Gordon sug- gested that the respondents be ar- raigned, but Justice Siddons agreed with counsel for Day and the Burns officlals there was no neces- sity for it. The court took judicial notice of the existence of the Fall- Sinclair trial and the defense admitted it, after Gordon sought to read the min- utes of those proceedings, and the case got under way when Charles G. Ruddy, manager of the Philadelphia office of the Burns Detective Agency, in charge of the jury shadowers, was called as the first Government witness. Gov- ernment counsel, consisting of Gor- don and his assistant, Neal Burkin- shaw, was reinforced this morning by Assistant United States Attorney James J. O'Leary, who has specialized on the law aspect of the case. Ruddy, in substance, testified as fol- low About 5:10 p.m. Tuesday, October 18, he was called on the telephone in his Philadelphia office by W. Sherman Burns, secretary-treasurer of _the agency, from headquarters in New York, and instructed to proceed to Washington and report to Day at 2118 Leroy place. Burns said he would send a_number of operatives from New York, and Ruddy was told to take as many from Philadelphia as he could get in touch with. Jurors’ History Given. Ruddy arrived in Washington at 10:20 o'clock that same night and re- ported to Day at the Leroy place ad- dress. Day gave him a list of jurors in the Fall-Sinclair case, together with a brief history of each juror. This list was produced by the Government and Ruddy identified it. In response to a question from Day, Ruddy said he would have eight men | in the field by the following morning, October 19. Day wanted to place each juror under surveillance, and said under no circumstances were any of the men to approach any-juror. He wanted them particularly informed whether the operatives found the jurors approached by any one else, and to be careful to take the numbers of any automobliles the jurors got into. Ruddy did not call upon the Burns agency here for any men or any ad- vice. He checked in at Wardman Park Hotel that night together with George H. Robbins, jr., assistant man- ager of the Philadelphia office, who came with him. A few minutes later he departed for Baltimore, arriving there in the early morning hours of the 19th, and conferred with Charles L. Vietsch, manager of the office there. Money Issue Related. Then he called Sherman Burns in New York by telephone, informed him of his meeting with Day and what Day wanted and requested as many men as could be spared. Burns said (Continued on Page Radio Programs—Page 36 NORMAL BUSINESS IS ON WAY, MELLON INFORMS CONGRESS Regular Increase Expected to Follow Recession of Last Year. By the Associated Press. Although business showed a reces- sion during the last year, it now is ap- proaching a normal expectancy, with sound underlying fundamentals, Sec- retary Mellon said today in his annual report to Congress. Under the heading of “The present situation of business,” the Treasury Secretary asserted that business activ- ity began in the Spring months of this year -to fall below the totals of last year. As a result of this recession, he said, business is “now being conducted on a basis that conforms more nearly to the normal expectancy as judged from the regular rate of growth of the country that has prevailed on the average for some years." “While business is not as active as in most of 1926, it can hardly be said to be subnormal, and the underlying fundamentals appear to be sound,” he added. “Another indication of healthy business conditions is the recemnt re- covery in commodity prices, due in the main to the rise in agricultural prices.” Credit conditions were described as sound, as indicated by the handling of the peak load of crop financing with- out strain and with interest rates eas- ing in the middle of October. Survey Shows Conditious. Explaining that the Treasury ac- cumulated vast amounts of informa- tion on business and finance, Secre- tary Mellon said a survey of this data suggested the following conclusions as to business in the past year: “A large volume of business was done simultaneously with declining commodity prices—an unusual combi- wation of circumstances. “The volume of new construction re- mained large, as engineering, indus- trial and public works projects were in sufficient volume practically to off- ?et a decline in construction of dwell- ngs. “High wages, due to increased aver- age . productivity per worker, and lower living costs, due to declining prices, resulted in a sustained pur- chasing power for a large variety of consumers' commodities. “Business was free from the accu- mulation of excessive inventories, ad- vance ordering subiect to cancellation and unreasonable speulation in com- modities, and a spirit of caution pre- vailed generally among business men. ‘Automobile production continued at a pace somewhat reduced from the year before, and dangers of a serious (Continued on Page 4, Column 2.) o HOUSE G. 0. P. REFUSES TO GIVE NELSON POST Man Who Backed La Follette Pres- idency 'wurned Down as In- valid Pensions Head. Refusing to forglve and forget, House Republicans today declined to give the chairmanship of the House invalid pensions committee to Repre- sentative Nelson of Wisconsin, who in 1924 deserted the party polls to adhere to the La Follette independent presidential movement. While action of the Republican committee on committees today in assigning the post to a regular Re- publican_was peaceful, it climaxed a bitter fight that has existed in Republi- can ranks for nearly six months. Representative Tilson of Connecti- cut, the Republican House leader, was among those urging the election of Nelson, who just two days ago joined with other Republicans in re-electing Speaker Longworth. The chairmanship probably will go to W. T. Fitzgerald of Ohio, as Beers of Pennsylvania is expected to take the chairmanship of the printing committee. —_— NATIONS SIGN ‘PROTOCOL. GENEVA, December 7 (#).—Great| Britain and Italy have signed a proto- col providing for the execution in for- elgn countries of arbitral awards in commercial matters. Announcement of the signature was made by Sir Austen Chamberlain for )| Great Britain and Vittorio Sclaloja for Italy. Forelgn Minister Briand said that France likewise would adhere to the [ BUDGET OF City’s Estimates In- clude $2,720,000 for Permanent Needs. SUPPLEMENTAL LIST AMOUNTS TO $395,795 Failure of Second Defi- ciency Bill Caused Use of Relief Funds. The District budget submitted to Congress today for the fiscal year beginning July 1, 1928, totals $40,- 431,186, as compared with $38824,385 in the current appropriation act. This includes $2720,000 for perma- nent and indefinite appropriations and $1,104,350 for the Water Depart- ment, In addition to the $38,825385 in the appropriation act for 1928, supple- mental estimates submitted for the current fiscal year amount to $395,- 79574, so that the net increase in the District budget this year is $1211,00526. This absorbs $1,082,300 in additional supplemental items previously listed for inclusion in de- ficiency appropriation bills, which has now been transferred to the reg- ular appropriation biil for the subse- quent fiscal year, Relief Fund Affected. Fallure of the second deficiency ap propriation bill for the fiscal year 1927 behind the Senate filibuster at the close of the last Congress made neces- sary the use of $116,468 of the police and firemen’s relief fund appropriated for 1928 to meet relief and other pay- ments to beneficiaries thereunder for the months of May and June, 1927. This situation also applied with re- spect to the employes’ compensation fund of the District and to the work ingident to caring for children com- mitted to the guardianship of the Board of Public Welfare. Supplemental estimates to cover these payments have been submitted for the fiscal year 1928. A supple- mental estimate for 1928 of $100,000 has been submitted in order that nec- $40,431,186 ASKED FOR DISTRICT; $4,258,793,765 FOR U.S. President’s Figures Show Saving of $38.- 792,466 for 1929. CONGRESS IS WARNED OF ECONOMY NEED $8,084,794,716 Reduc- tion of Public Debt Cited by Executive. Declaring for “determined contin- uance of the campaign for rigid Government economy,” and empha- sizing that “the sanctity of a bal- anced budget must be preserved,” President Coolidge today submitted the Federal budget for the fiscal year 1929, with recommendations for a tax reduction “not to exceed $2 000,000.” o The budget, carrying estimates for all branches of the Government, in- cluding the postal service. the ex- penses of which are paid from postal revenues, as submitted to Congress today totals $42387 3, which is a reduction of $39792.466.19 from the total for the fiscal year 1928, The 1928 figures used in this com- parison include (a) the appropriations made for the fiseal Yyear 1928, (b) per. manent and indefinite which have not be vious bu appropriations A0 een included fn pre. dzet estimates, (c) the balance of the 1928 and prior years supple. mental appropriations for tax refund yhich is available for the fiscal year 1028 and (@ supplemental estimates or the fiscal year 1928 which are now being submitted to Congress for con- siderati e b“:' ation under the urgent deficiency 1928 Total $4,208,586,231. The appropriations mad ular supply bill for !hoefi,:\";:le;:‘ls!: 1928 made a total of $3,953,480,110.47, The permanent and indefinite appro. priations for 1928 totaled $79,664.463 The balance of the 192728 supple- mental appropriations for tax refund available for 1928 amounts to $107,- 000.000. Supplemental estimates now before Congress for 1928 to be con- sidered in the deficiency bill amount to $158,441,685.25, making a grand total for 1928 of $4,28,585,231.7, essary repairs may be made to the suburban roads of the District after February, 1928, at which time the cur- rent appropriation for this purpose will be exhausted. These and other supplemental items for 1928, if appropriated by Congress, will bring the total of appropriations for the current fiscal year from $38,- 824,385 to $39,220,180.74. For the District schools the amount recommended in the budget is $12,156,- 130, which is $158,115 in excess of the appropriations for 1928. This includes salaries for 95 additional teachers and a total of $2,478,500 for school build- ings and the acquisition of sites for schools and playgrounds. For street and road improvement a total ‘of $4,233,000 is recommended, which is an increase of $459,700. Of this amount $1,750,000, which is an increase of $263,500, comes under the gasoline tax road fund. Important items under this fund are $178,000 for new flooring on the Highway Bridge and $5,000 for plans and specifications for abolition of the Michigan avenue “grade crossing in Brookland. For the metropolitan police force $3,209,180 is recommended, which is $120,420 more than in the current ap- propriation act. It provides for 25 ad- ditional men for the police force and $52,000 for the erection of a new No. 15 police precinct station house. Library Appropiations. For the fire department $2,13Q,015 is recommended, which is a decrease of $8,847. This includes $12,000 for the purchase of a site in the vicinity of Connecticut and Nebraska avenues northwest for a new fire engine com- pany and another $12,000 for the pur- chase of a new motor-driven rescue squad wagon for the fire depart- ment. The appropriations recommended for the Free Public Library total $314,900, which is an increase of $14,480 and provides for 10 new em- ployes. A recommended increase of $160,000 for street lighting will continue the program of replacing gas lamps and certain of the electric lamps with improved electric lighting equipment. Provisions is made for three addition- al Inspectors and one clerk is also recommended for the office of the electrical engineer. Estimates of $350,000 and $25,000, respectively, as authorized by legisla- tion enacted during the second ses- sion of the Sixty-ninth Congress, are recommended for the construction and equipment of a nurses’ home at Columbia Hospital and Lying-In Asy- lum, and for the refund of moneys be- longing to the hospital which had previously been covered into the Treasury of the United States. An estimate of $465,000 is provided for completing the construction of the domestic service and ward buildings at Gallinger Municipal Hospital. For operating the recently com- pleted Washington Aqueduct there is recommended for 1929 an appropria- tion of $425,000, as compared with the appropriation of $202,210 for the cur- rent fiscal year. While this represents an apparent increase of $222,790, it is in reality a net increase of $89,290 In his message the President gives a summary reflecting the balance sheet of Government finances in which the total estimated for 1929 is exclusive of the postal revenues and postal expenditures. This shows the total receipts estimated for 1929 to be {3,809,497,314. made up as follows: Customs, $602,000,000; income tax, $2,065,000,000; miscellaneous internal revenue, $640,545,000, and miscellane- ous receipts, $501,952,314. T!le total expenditures balanced against this in the President’s sum- mary, including reduction of the pub- lic debt required by law to be made from ordinary receipts, is placed at $3,556,957,031, making the excess of receipts over estimated expenditures 40.283 for the fiscal year 1929, Balanced against this is an excess of $454,283,806 of estimated receipts in 1928 and an excess of $635,309,921.70 in receipts actually shown for the year 1927, Safe Margin of Surplus. This shows that while still pre- serving “the sanctity of a balanced budget” with a safe margin of sur- plus in the Treasury, in declaring that a reduction of taxes “not to ex- ceed $225,000,000 is justified,” the administration is figuring down to a closer financial balance with a dimin- ishing surplus. Of outstandirig importance In the President’s budget message is the fact, which he stresses, that from a peak of more than twenty-six and & half billions of dollars in 1920 the public debt has been reduced by $8,- 084,794,716, which means an annual saving in interest of aj $320,000,000. i In the present budget for the first time an appropriation is recom- mended for commencing the liquida- tion of the Government's liability for both civil service and foreign service retirement systems, so that the for- mer would be amortized in 71 years under the present pay roll and the | latter in 60 years. Salary Average Gains, It is shown that for the fiscal year 1929 the average salary of Govern- ment employes will be approximately $1,897, or §11 more than during the rrent flscal year, but $223 more than the average salary in 1923. The Pr lent focuses attention on the fact that the far-reaching im- portance of the budget system can now be fully appreciated and that it is directly responsible for the United States Government's present position of financial stability, which ne points out “has been acquired by scientific management of our busi- ness affairs.” In summarizing the improvement throughout the entire field covered by Federal operations, which has re- sulted from this efficient manage- ment, the President says: “It seems inconceivable that such progress could have been made in so short a period after the great world conflict. Yet it has “gen done. It demonstrates the eMciency of our form of government. The good of all the people is our controlling con- sideration. And because of this, sci- entific management of our affairs is essential. In slightly more than six years we have had substantial re- ductions in taxes and in that same period we have enhanced greatly the value of the service which we are rendering the people. We are. rais- ing money to pay our long-term through reductions In the estimates for operating expenses of the Water Department. There Is an increase of $25,000 recommended for installing fire hydrants, which will provide for making a start on the program for better fire protectfon in the central part of the city mapped out by the commitments. We have provided for adequate national defense. Our hous- ing problems are being cared for. Al through our Qovernment activities there have been improvement and progress. Federal activities have kept pace with a growing d pro- gressive Nation. This has al called for orderly procedure, and we gge (Continued on Page 39, Column 1) (Continued on Page 38, Columa $4 ¢