Evening Star Newspaper, November 16, 1928, Page 1

WEATHER. (U. 8. Weather Cloudy with mild temperature to- rrow, showers tomorrow; : Highest, 74, at 3:15 ; lowest, 53, at 6 am. and “eol Closing N. Y. Markets, Pages 14 and i5 No. 30,880. Joie"oimee, “Wa Entered as second class matt Bureau Forecast.) Che WITH SUNDAY MORNING EDITION Foening Star. er ¢ & shington, D. ‘WASHINGTON, G, FRIDAY, NOVEMBER 16, 1928 —SIXTY-TWO PAGES. service. The only evening paper in Washington with the Associated Press news Yesterday’s Cireulation, 107,709 (#) Means Associated Press. TWO CENTS. VESTRIS OFFICERS CALLED IN PROBE; LEADER, REPORTED MISSING, 15 FOUND tain, Located in Hotel. Members of Crew Sum- moned in Federal Inquiry. EXPECTS TO FIX BLAME FOR HEAVY LOSS OF LIFE Witnesses So Far Charge Incompe- tence and Lack of Discipline. Wireless Messages Subpoened, as Well as Lifeboat No. 13 Brought | to New York From Wreck. By the Associated Press. NEW YORK, November 16.— Frank Johnson, chief officer of the Vestris, and three minor officers were served with subpoenas today to appear before the Federal in- quiry into the disaster. Earlier in the day Federal At-| torney Charles H. Tuttle had an- nounced that Johnson could not be found. Government agents, however, eventually reached him at the Hotel Holley, to which h¢ had gone after arriving here on a rescue ship. The -other officers subpoenaed‘ were J. O. Bulger, second officer; | H. L. Welland, third officer, and | Charles Verchere, third wireless officer. The four were expected to testify this afternoon. Wants Wireless Messages. Tuttle said he had subpoenaed whatever wireless messages, if any, were sent by Capt. ‘William | J. Carey, master of the Vestris, to duct the inqu criminal di fey, chief assis Curran, assistant United States attorney. Committee appointed by United States Attorney Tuttle of New York to con- Left to right: Seated—George J. Mintzer, head of Mr. Tuttle’s : United States Commissioner Francis A. O'Neill, Robert C. Man- | ant United States aftorney, Standing in the rear is Thomas J.! —~Wide World Photo. PRESDENT SCORED ONARMTIEETALK “pecksniffian Guff,” Says} One British Weekly; Some Approval of Frankness. By ths Ascociated Press. P LONDCN, November 16.—Great Britain = literary weeklies today echoed and in most instances emphasized the “sheck” which has been sustained by Presiden’ Coolidge's Armistice day's h. ‘wg_ Ner Statesman is the most out- «pokén. Pecksnifian Guff,” it heads o sp?m cditorial. The Saturday Re- view, the Nation and. even the Spec- “which is the stanchest exponent of{ hinds-~cross-the-sea policies, * join in Yeriieism of the President’s utterance. New Statesman declares that the local offices of Lamport & Holt, or from the office to the cap- |} tain, and also the files of the] Radio Corporation of America to determine whether they had sent any messages to Sanderson & Sen, the local agents of the line. A representative of David Cook, vice president of Sanderson & Son, said that all such messages could be put on one piece of paper, and that none had been received on Monday. ‘Wants Naval Information. Mr. Tuttle has also wired the Depart- ment of Justice at Washington asking that the statement of the executive fiicer of the U. S. S. Wyoming, based gn testimony of survivors picked up by the battleship, be sent to him as soon as ble, together with the survivors' statements. five of his assistants of the criminal division mm he has assigned to the vest! % mTWO““’flVm‘Kltbm of the sinking are now under way in Federal buildings here. Eight survivors of the disaster, all passengers of the Vestris, repeat under oath at the opening sessions of the inquiries charges of incompetence and faulty equipment first voiced at the time of their rescue. One investigation is that being con- ducted in the old post office before United States Commissioner O'Neill by Mr. Tuttle, The other is being held in the customshouse by Capt. G. T. Charlton and William H. Powers, chiefs of the second district steamship in- spection service of thé Department of Commerce. Those Who Testified. The survivors who testified yesterday before Commissioner O'Neill are Fred- erick W. Puppe of New York, whose wife and baby were lost on the Vestris; Carlos Quiros, chancellor of the Argen- ‘tine consulate general in New York; Jose Santa Anna of New York and Bra- i1, Wallace M. Sinclair of Bound Brook, N. J.; Herman ?uckert and Walter Spitz, German business men. l’Tl?mse who first appeared at the Customhouse were T. E. Mack of Tecla, Wyo., and O. I. Maxey of Rich- mond, Va., who were among the most Ditter in their denunciations when they Janded from the rescue ship Berlin. Among their charges made yesterday e: v”’ll:hat there were general incompetence and lack of discipline among officers and crew. That two filled boatloads were left hanging in thexl‘f\ davits and carried wn with the ship. duThll no orderspwere issued to don lifebelts and that ,n“o bc&mwpeum officers vere assigned to lifel 3 1M’I‘hat. .sogr‘:ne lifeboats were improperly equipped and leaked like sieves at every seam. That in some cases the launching tackle was out of commission. That rescuing steamers passed sev- eral lifeboats, occupants being unable to signal because of defective flares. Expects to Fix Blame. In a statement at the close of the hearing yesterday, Mr. Tuttle sald: “Prom the testimony taken in today’s hearings * * * it is fully apparent that we shall ultimately obtain evidence to fix blame for the wreck and the great loss of life. You can state that this of- fice will make every effort to place the responsibility where it belongs and to the extent of ascertaining whether the United States inspection service permit- ted the ship to lel‘ve New York in en seaworthy condition.” . m;-!e said I was inquiring into a re- port that tfle anti-rolling tanks were t of repair. p ou"?uur‘:i.}ng the blame will not be a light task,” he continued. “As far as what transpired on the high seas on board a British ship is concerned, we have no direct jurisdiction, of course, e s whether we must determi :%S:fel::s eriminal negligence. If there but American “Tuttle conferred this morning with jnst H%'Cwlidze broke the rule that an g ing President should make no | it speech or take any other b step. Calied “Dying Kick.” "§rs of sonorous silence only Hgreaa S Gilcreet DY, denly’ vered a sort of dying kick with a viciousness of which few people on this side of the Atlantic would have supposed him capable,” the New States- man says. “His tice day speech was in effect a denunciation of Europe and all its works from the standpoint of a 100 per cent New England back- woodsman.” Concluding a full page editorial along the same tone challenging the Presi- dent’s facts and motives, the New Statesman says that after all speeches like President Coolidge’s or Lord Birk- enhead’s reply to it can do no very serious harm because the real relations between America and Great Britain do not depend upon mutual civilities, but upon common interests, institutions and =i, tancts. “Still, harking back to the speech of the obsolescent President, it would probably be better if the statesmen on both sides of the Atlantic would avoid these nationalistic imbecilities, or, if that is asking too much, that their speeches should not be given extra- territorial publicity,” the paper adds. This last clause refers to the issuing of the President’s speech from Amer- ican embassies abroad for use in the European press. The Spectator says that the speech came as a shock to those Englishmen who have not been carefully noting the signs in America. “To others it was no surprise, but it must be to all 2 mat- ter of profound regret,” the paper says, challenging the figures on comparative naval strength given by the President. Frankness Is Praised. The Saturday Review declares that the speech is above all valuable on ac- count. of its frankness. “There is no probability that Mr. Hoover will be even as tolerant of European weaknesses as is the present occupant of the White House.” The Nation says that the speech was read in draft form by Mr. Hoover, and must be taken as a formal statement of the foreign policy which the new administration will take over. “It may be regretted,” the Nation adds, “that on this particular day President Cool- idge should have clothed himself so ostentatiously in the spotless toga of American virtue * * * buf-the speech will do much good if it" makes the statesmen and peoples, of Europe re- alize the dislike and suspicion with which the American people regard the post-bellum tendencies of European politics.” .~ FLYERS REACH NANKING. Chinese Good-Will Trip Around Republic. NANKING, China, November 16 (). —Three Chinese airmen, flying an American-built plane christened the Spirit of Canton, arrived at Nanking today from Hankow on a good-will flight which they are making over China. Aviators on Among the officials greeting the flyers was Gen. Feng Yu-Hslang, Nationalist minister of war. W. J. Chang, who was in charge of the flight, was told that China was looking to him to blaze the way to the development of commercial 4 b ECYPT PRCHASES [EGATON BULDING House at 2301 Massachu- setts Avenue Bought for Diplomats. The Egyptian government has pur- chased as the permanent home of its ‘Washington legation the palatial lime- stone house located at 2301 Massachu- setts avenue, overlooking Sheridan Cir- cle, it was announced today by Mahmoud Samy Pasha, Egyptian Min- isted to the United States. Contracts for the acqusition of the house from its present owner, Mrs, Mar- gaiet Beale, have been signed and trans- fer of title is expected to be effected in the next day or two, following which the legation will move from its present loca- tion, in the Embassy Building, at 2401 Fifteenth street, now leased from Mrs. John B. Henderson. The new Egyptian legation will have as its neighbors the Chilean legation and the Czechoslovakian legation. while it also will be nearby the Swedish, Co- ioml:?m, Rémn:mn X and legations and no Tom W ems= jes Bein ~cma‘¥!\n‘ ac usetts avenue for the British, German and Austrian governments. The new Egyptian legation, one of the largest residences in this section, is situated on a lot having a frontage of 107 feet on the avenue and R street, of 75 feet in Decatur street and a depth of 195 feet. The consideration in the transaction, handled through the office of Horace H. Westcott & Co., was not disclosed. The building is of four stories. “B00-B00” HOFF AIDES SOUGHT AS FUGITIVES Warrants Issued After Three Cafe Employes Are Held on Liquor Charges. By the Associated Press. PHILADELPHIA, November 16. — Charles Schwartz and Samuel Lazar, reputed wealthy associates of Max “Boo Boo” Hoff, alleged “king of bootleggers,” whose names frequently have been men- tioned in the special grand jury investi- gation of rum runners and police cor- ruption, were being sought today on fugitive warrants. The warrants were issued by Judge Edwind O. Lewis after he had held three men connected with the Piccadilly Cafe in $5,000 bail each for court on charges of illegal sale, possession and transportation of liquor and conspiracy. Frank J. Donahue, a former waiter at the Piccadilly, testified that Schwartz, Lazar and Hoff were the principal own- ers of the cafe. Donahue told of gay parties at the cafe at which underworld c?amcwrs and police officials clinked glasses. POLICE CHIEF HELD. Accused of Slaying Son of Prede- cessor, Who Killed Self. LOGAN, W. Va., November 16 (#).— A. D. Scaggs, chief of police of Logan, was in jail today charged with the slaying of Brooks Carey at the head- quarters of the Logan Fire Department shortly after midnight. The shooting was said by authorities to have fol- lowed an attempt by Scaggs to arrest Carey on a disorderly conduct charge. They also said there had been ill feel- ing between the two men since the re- cent election. Carey was a son of Scaggs’ prede- cessor as chief of police. The elder Carey, officers said, committed suicide while awaiting trial on a charge of murder. Habitual Criminal Law Upheld. MINNEAPOLIS, Minn., November 16 (/) —Minnesota’s habitual criminal act adopted by the 1927 Legislature, an adaptation of the Baumes law of New York, was upheld as constitutional to- day by the State Supreme Court. The law, aimed directly at the habitual criminal, or “repeater,” had been at- tacked in appeals from two Minnesota aviation in China. counties. But Police Are By the Associated Presp. CHICAGO, November 16.—Deaf peo- ple are not good people to hold up, be- cause they do not co-operate, Steven Gundlach, hold-up man, declared em- phatically today in his temporary abode was, we shall determine whose negli- ence it was.” : nMcnst of the passensg 0 test-!ftl!eld were still highly nervo: Mr. Tuttle 2aid it was probable that few more of them would be called as he did not = «Coatiued on Page 3, ColmB 5. in a police cell. Steven does not believe in carrying a_pistol, because it is dangerous, so when he approached John McKnight he had nothing but his good strong arm to enforce his demands. | “Stick 'em up!” said M8, Gundlach, Deaf Man Deaf to Bandit's Shouts, Not and He's in Jail queried Mr, Me- bawled “What's that?” Knight, hand to ear. “I say you're being robbed!” Mr. Gundlach. “Write it out,” suggested Mr. Mc- Knight, politely producing pad and pencil. “Robbed! Stuck up! Jack-rolled!” howled Mr. Gundlach. The police, a block away, heard the echoes and drew alongside. “Guys like that,” said the hoarse Mr. Gundlach, “should be forced by law to carry ear trumpets. Aoy | Latin American waters on stern assign- AMITY, NOT TRADE BOOST, HELD HOPE OF HOOVER'S TRIP Will Make Extraordinary Bid for Friendship of Sister Nations in South. SEEKS TO ELIMINATE | FUTURE ALOOFNESS Maryland's Guns Will Boom Sa- lutes in Appeals for Peace- ful Relations. BY REX COLLIER, Staff Correspondent of The Star. PALO ALTO, Calif., November 16.— President-elect Hoover is going to South America, not, to see the sights or boost American trade, but to make an ex- traordinary bid for the wholehearted | friendship of the Latin American slswr} republics, Had he desired merely to make a | sightseeing tour of the only connnentl he has never visited, he would not have requested President Coolidge to assign one of the Navy's battleships to carry him to tropical waters. Such a junket could be taken with considerably more thoroughness aboard a private liner and with the comfort that comes of in- formality. Good Will Is Main Purpose. Had he wished to dig up trade for American shippers and find new mar- kets for American-manufactured goods, he would not have invoked the aid of the United States Navy. He does have, however, a deep-seated, sincere desire of welding the peoples of the New World together with bonds of mutual good will. He believes the nations of the Western Hemisphere do noi understand one another as they should. If nations would know one an- other better, their nationals must over- come natural barriers of language and mode and get acquainted with the cus- toms and ideals of their neighbors, he contends. The President-elect freely admits that he would like to know more about the peoples of Central and South America. He wants to learn of their problems and their aspirations and their government. He thinks it would be a good thing for newspaper men to go along with him, so that the eyes of the press may reflect back to the citizens of the Un' ed States the things they see. In th', way the story of South America wilfibe brought home in a way that the cam] not do. It was not selfish curiosity which prompted the next President to under- take so important a mission. He is of the opinion that the chief executive of a great nation will be better able to understand and deal with international problems that may arise if he has a background of acquaintance with gov- ernments and people involved in those problems; Aloofness Marks Past. 1t is pointed out the United States has held itself a little aloof from the Southern republics in the past, without meaning to do so at all. Presidents and Presidents-elect have journed to other countries as far away as Europe, but none ever as paid a visit to South America. Uncle Sam’s warships have sailed into ments of business, but never on an out- standing mission of international friend- chip. Hoover’s peace ship. With guns manned for the purpose of salute only, she will put in at the principal harbors along the west coast of the Southern Conti- nent and call attention of all the people to the fact that the United States de- sires their friendship. The President-elect undoubtedly will have a special message of greeting for each of the nations he will visit. He will spend much of his time aboard the battleship preparing these speeches. In the meantime he is laying aside such matters as selection of a cabinet and arranging for the inauguration. The Maryland was due to head for San Pedro today. She has been recon- ditioned from stem to stern. Living quarters have been made ready for the 40 members of the party, who will leave here Sunday night by special train for San Pedro. Party Gets Passports. Members of the party received hastily prepared passports today at the Hoover home on San Juan hill. They lined up in a Palo Alto studio yesterday to be photographed for identification pur- poses. The passports were brought to the house by a United States customs official from San Francisco. At first it had been thought the passports would not be necessary, but later the creden- tials were deemed essential. Friends of the President-elect are beginning to arrive in increasing num- bers to bid him bon voyage. Members of the Stanford class of '95 called in a group yesterday. Mr. Hoover received them in his study and chatted about old times. Most of the alumni live in San Francisco or vicinity. Representative William E. Hull of Peoria, Ill, also was a visitor. He called to pay his respects, he said. It is thought that a mutually favorite topic—waterways—came into the dis- cussion, too. Mr. Hull, a member of the river and harbor committee, is an (Continued on Page 4, Column 1.) o ATLANTIC SHIPPING DELAYED BY STORM Liners Report Severe Gales Sweep- ing Bay of Biscay and English Coast. By the Associated Press. PLYMOUTH, England, November 16, —A southwesterly gale off the coast of England was causing much trouble to shipping today and incoming liners re- ported severe storms in the Bay of Bis- cay and out in the Atlantic. Several liners, including the President | the; Roosevelt, felt the full force of the gale and had to seek shelter behind the breakwater before communicating with their tenders or with the shore. A small steamer was driven ashore on the Kentish coast. A lifeboat was as- sisting in rescue work. Several boats along the coast were damaged al their moorings. Radio Programs—iPages 44 & 47" |3 the maili The U. S. S. Maryland will be Herbert | POS! CHRISTMAS CLUBS TOGET 7,000,000 Thirty Washington Banks to Pay Vast Sum to 83,178 Subscribers. Members of the Christmas savings clubs in 30 Washington banks will re- ceive checks totaling more than $7,000,- 000 on Decembér 1. This surprising sum, $7,046497 to be exact, has been saved during the past year by 83,178 subscribers and is the culmination of the most successful Christmas savings campaign ever known in the Capital. It marks 2 gain of almost $1,000,000 over last year. This thrift campaign, which has as- tonished local bankers by its magni- tude, commenced on December 1 of last year, when all the clubs were opened. Deposits were made weekly until No- vember 15, when all further entries closed in order to dv.wme bank W b Th‘g‘ advertising committee of the District Bankers' Association is given unstinted praise for the amazing growth of Christmas clubs in Washington. The committee published a long series of co-operative advertisements prior to the opening of this year's clubs, the results being a rush of new depositors to the banks and the new total in the amount saved. The committee reports a gain of 6 E:r cent, in the number of people hav- g club accounts and 11 per cent, in the amount subscribed in comparison with 1927. It has been found that comparatively few members drop out during the year. Four-Year Comparison. Comparisons for the past four years reveal how the Christmas savings club idea has spread like wildfire all over Washington. In 1925 the number of members was 66,279 and they saved $4,447,741. During the vear 1926 de- itions increased to 73,615, who land aside $5,544,967, while in 1927 the num- ber having such books had mounted tc 78,145 and the sum they took to the ‘banks had reached $5,994,903. It re- mained for the present year to show a gain over 1927 of 5,033 in the number of depositors and of $1,000,000 in their savings. The original Christmas savings plan started in Washington several years ago with only three banks taking part in it. It was scoffed at by the others. Too much bookkeeping, officials said. Soon, however, there was a complete change of front, as reports filtered out showing the popularity of the new savings method and the rapid expansion int the amount being set aside. While Washington bankers have been astonished by the total savings of the present year, local merchants have been no less interested. Turning millions loose just at the real beginning of Christmas trade means a boom to store sales that is difficult to estimate. The committee of the District Bank- ers’ Association, which has made a spe cial study of Christmas savings, has dis- covered that between 25 and 28 per cent of these furids are transferred into permanent savings in the banks. The greater part of the remainder of the savings finds its way into Christmas buying, some goes into insurance pre- miums and interest on mortgages, ¢! smaller amount into taxes and install- ment payment and a still smaller sum ir paying other bills of every conceivable description. . Total in U. S. $550,000,000. ‘That people living adjacent to Wash- ington have also displayed commendable thrift during the past year is shown by estimates which place the Christmas savings club total for the State of Maryland at $6,900,000; of Virginia at $4,600,000 and of West Virginia at $4,800,000. Of economic_importance second only (Continued on Page 2, Column 7.) .. November’s Heat Here Overcomes 2 At Grange Session Just as Washington is preparing for its Christmas season, it experi- enced today two heat prostrations. John Brubaker of Lebanon, Pa. and another man whose name has not yet been learned, both of whom are attending the convention of the National Grange being held here, were prostrated while in the rear grounds of the White House, where nearly 2,000 members of the Grange had assembled to pose in a group photograph with President_Coolidge. Both men who were affected by the unseasonable weather were given first aid and attention on the lawn and then taken to Emergency Hospital. STEWART SEEKS D 0 lustice Bailey Hears Argu- ment and Defers Decision. U. S. Rests. By the Associated Press. Justice Jennings Bailey in District of Columbia Supreme Court took under advisement at lunch hour today| a de- fense motion in the perjury trial of Robert W. Stewart of the Indiana Standard Oil Co. that he direct a ver- dict of not guilty. Justice Bailey declined to indicate whether he would decide the question at the afternoon session or wait until Monday. No court session will be held tomorrow. Arguing the motion, defense counsel contended the Government had failed to support its charge that Stewart had falsely sworn before a Senate commit- tee that he had no knowledge of the bond transactions of the Continental Trading Co., involved in the Teapot Dome oil case. The Government rested its case today. Nye Last Witness. The last witness, Senator Nye of North Dakota, testified the oil man had sworn to the Senate public lands com- mittee last February that “he had never received personally” any of the bonds of the Continental Trading Co. Earlier, Roy J. Barnett, tax commis- sloner for Stewart’s eompany. had told of acting as trustee for $759,000 of the bonds at the oil man's request. Questioning Senator Nye, Frank J. Hogan brought out for the defense that when the North Dakotan had testified in the contempt trial of Stewart last Spring he had said the oil man de- clined to answer questions about his knowledge of recipients of the Conti- nental bonds. ‘Walsh Testifies. The Government approached the end of its case early today with testimony by Senator Walsh of Montana, as to the rules and customs followed by Senate committee meetings. The propriety of the public lands committee meetings last February, be- fore which the oil man is charged with having sworn falsely that he knew noth- ing about bonds of the Continental Trading Co., has been challenged by the defense. Cross examining Walsh, Ho- gan dwelt particularly on the lack of an actual eg\mmm present when Stewart appeared. Among the spectators in court to- day was “Chick” Evans, famous golfer and a friend of Stewart’s, who, defense counsel said, would testify in the case as a character witness. The agreement by which Stewart MISSING MEN THOUGHT VICTIMS OF BLIZZARD Rescuers Believe Seven Lost Thir- teen Days Could Not Sur- vive Storm. By the Associated Press. PRINCE ALBERT, Saskatchewan, November 16.—Seven men, since November 3, when the; Churchill for the terminus of the Hud- son Bay Railway line, are believed to have perished in a blizzard which swept northern Manitoba shortly after 'y started their 100-mile journey. Word of the blizzard was brought here by A. Johnstone, who, with plnge of 11, left Fort Churchill Nc vember 2, arriving at the railroad tes minus November 5, after hours of co tinuous travel through the storm. Johnstone said his party counted themselves lucky to arrive safe. An unsuccessful search by men in air- planes and Indian guides with dog since November 5, (Continued on Page 4, Column 4.) Remarkable FSCAL ELATONS STIDY NEARS END Merger Report Also Beiqg Written by ‘Bureau of Efficiency Probers. 4 Findings of the Bureau of Efficiency as a result of its exhaustive investiga- tion of the fiscal relations between the Federal and District governments and the transit merger agreement pending in Congress are being written today and probably will be made known in several weeks. Tabulations of the vast amount of data collected by bureau representa- tives on these two subjects are being used as a basis for the conclusions. No indication was given, however, as to whtnthnu rwnmmend:.tgm would be, jureau represent lves QXWM that they would be of vital the belief Merger Report Separate. the District committees of the Senate and House. The merger report will go directly to Senator Capper, chairman of the Senate District committee, who re- quested the bureau to make a thorough investigation of the merger plan inde- grndent of the study being made by . Milo Maltbie for the Senate com- mittee. The investigation of these two sub- jects has been broader in scope than any inquiry in District affairs ever undertaken by the bureau. It has covered a period of more than four months. Information was gathered from a number of cities in the coun- ton, and the reports minute descriptive detail of the con- ditions both as to.the methods and rates of taxation and to the operating systems of the street rallway lines in these cities. Other Cities Visited. _Most of the data was collected by visits to these cities by bureau in- vestigators. ‘The report on the merger agreement, it was said, will treat comprehensively every phase of the plan of consolida- tion and most likely will recommend approval of a unified operation of the transportation lines. However, certain modifications probably will be recom- mended in the financial arrangements between the transit companies and the $50,000,000 rate base proposed in the unification agreement. The only comment bureau attaches would make on the fiscal relations re- rt is that “it will do the District no rm.” Gibson Returns. Representative Gibson of Vermont, chairman of the special subcommittee of the House District committee which has been making a comprehensive sur- vey of the municipal administration of \the National Capital. has returned to his office and is getting in touch with officials of the District Government and the Bureau of Efficiency preparatory to continuing his survey and the drafting of remedial legislation to be presented at the approaching short session of Congress. Because of the keen interest taken in this survey by Representative Gil- bert of Kentucky, the ranking Demo- crat on the investigating committee, who will not be in the next Congress, Chairman Gibson is particularly anx- lous to get a clean-up through new legislation and administrative action on many of the conditions shown during the survey thus far. He desires to use to the fullest ible extent the results cl ‘The report on fiscal relations is being prepared for the Budget Bureau and | foda; MILLIONS SAVING INU. 3. MERCHANT FLEET PROMISED “Lump-Sum” and “Profit- Sharing” Plans to Be Put Into Effect. AIM TO BRING OPERATION NEAR PRIVATE CONTROL Increased Efficiency and Elimina- tion of Duplication Are Assured Under New Program. The saving of millions of dollars in net results in the operation of the government-owned part of the Amer- ican merchant marine, with increased operating efficiency and elimination of duplication of operation by the Mer- chant Fleet Corporation are claimed for a new program to be put into effect as rapidly as possible. Two plans have been developed in the Merchant Fleet Corporation and have just been stamped with approval by the Shipping Board and are known as the “lump-sum” and “profit-sharing” plans. The “lump-sum” plan was rep- resented by officials today as bringing the operation of the Government-owned { merchant fleet as near to private con- trol as is possible under the present sit- uation existing under the Government ownership program. Supervisory Duties Reduced. Officials déclared today that the su- pervisory requirements would be re- duced to merely an inspection and au- diting force under the new program, and initiative of the private companies that are now operating lines in various parts of the world would be stimulated by placing responsibility on the operators. Officials termed the “lump sum” plan ideal, as this puts control in the hands of the private operator and is an incen- tive as he stands the profit or loss, thus encouraging him to reduce operating costs, and get extra cargoes. Up to this time, the Shipping Board has shared ex- penses with these operators, and the compensation will be changed under the new plan from a commission to a “lump sum” basis. Under the “profit sharing” plan, officials said, the tor will get part of the net results and the Shipping will likewise _share in managing operators gether in conneetion with their activi- ties in securing business and operating the vessels. This overhead will be allotted to the operators. The present m&;gyvil;s e{na'l‘ }nd as lacking pe- cun centive for a mmfix - erator to operate efficiently, s ‘,’fle cost of operation is borne entirely by the owner—the United States—through the Shipping Board. Officials illustrated the “lump-sum” plan by citing the case of a line los- ing $500,000 annually, from which the Fleet Corporation overhead allocated to the line, about $125,000, would be de- ducted. Under the proposed plan the operator will be given a free hand to control operations, so that he can afford to. maintain a specific service and ‘maintain ships for the flat sum of $300.000, with a larger profit to him- self and a very apparent saving to the owners. Fixed Amount Per Voyage. Under the “profit-sharing” plan, offi- cials said, the cperator would be allowed a fixed amount per voyage with which to pay overhead expense so he would not be subjected to an actual loss. A definite percentage on gross receipts would be fixed to be paid him, officals added, thus establishing a pecuntary incentive for the operator to get all posoA ible rev:nua percentage, ynder this plan, would be fired in balance with theppercentsge g{n mss recellgts. tg 1wh:ch extent the tor would participate in the - ating cost. b e “Profit Sharing” Explained. Officials illustrated the working of the “profit-sharing” plan thus, in a hy- pothetical case: An operator would be allowed $3,000 a voyage, for 90 voyages annually, to cover his overhead; he would be credited with 12 per cent on the gross revenue and debited with 10 per cent of the voyage costs, the fig- I.l'r:s being arrived at to fit each oper- T, The result claimed for this plan is in making any substantial profit to the operator dependant upon the increase in gross revenue and the decrease in costs. This plan, officials explain, does not involve any material change in the present operating except as to com- Ppensation, nor does it involve a shifting of control to the operator on any items which he does not now controi, al- though it is believed that it will bring about a condition where fuller control can safely be given him when felt ad- visable by the operating department be- cause of the operator’s incemtive to guard the owner's interests, which of the careful application of Mr. Gil- bert to these subjects. He expects to invite Mr. Gilbert to return to Wash- ington as soon as possible, so that they cnnmmapro& prellmm':;y to the con- vening o ngress rogram on which the Gibson subcon‘l’mlttee will work during the next three months. Photographs of Sea Disaster A full page of photographs, S. S. Vestris was sinking, are contained in the Rotogravure Section of many of them taken as the Next Sunday’s Star Order your copy of next Sunday’s Star from Your Newsdealer Today. teams, has been carried on for the men would also be his interest umder the proposed plan. 1 et LT POLO TEAM FLIES SOUTH. Fort Myer Players Go by} Alr to Atlanta for Game. Members of the 3d Cavalry polo team, Fort Myer, Va., left Bolling Field by air this morning for Atlanta, Ga., where they will play the Fort McPher- son team at 3 o'clock Sunday after- noon. They left in the Army C-2 Fokker transport plane, piloted by Capt. Ira C. Eaker, Army Air Corps, and gt. John G. Carden as mechanic, at 10:20 o'clock this morn- ing. After delivering the team, composed of Capt. Perry and Lieuts. Bosserman, McClure and Wofford, at Fort McPher- son, Capt. Eaker will continue South with the Fokker transport on a 10-day mission, authorized by the Army Air Corps, taking him as far South as New Orleans. He will visit a number of Army flying flelds. Italian Town Feels fl.uke. lmg‘D]l;NI Italy, N:.'.embel:. 16 (Fg.—An lulatory earthquake sec- onds was felt here at 4:13 o’ k this %mo&w“wmfi e A 4