Evening Star Newspaper, February 7, 1929, Page 2

| g .~ ROOTTO CANVASS | NATIONS ON COURT Will Feel Out Powers on Pos- sibility of Agreeing to U. S. Reservations. By the Associated Press. Adherence by the United States to the World Court may depend upon the #uccess of an unofficial diplomatic mis- sion to be undertaken by Elihu Root, former Secretary of State and an au- thority on international law. Mr. Root will seek an understanding among world powers on America’s reservations to the Court. The Senate voted adherence to the Court three years ago, but it also voted rescrvations that the other powers have | not accepted. One that other ecountries have balked at was a stipulation which would deny the right of the court to render advisory opinion involving the United States without the previous con- sent of this country to consideration of the case. Some international lawyers believe that the court is already bound to render no advisory opinion without the unanimous consent of the Council of the League of Naions. In that case all the other nations have the right with regard to advisory opinions that is asked by the United States. It is also b ed by some that if the American reservations regarding advisory opinions were accepted, the biggest stumbling block in the way of adherence by this counry to the court would be removed. President Coolidge not long ago made it known that he desired another can- vass of the world powers to see whether the way was not still open for an un- derstanding on the reservations by the United States, and Mr. Root plans to undertake that canvass. He was re- cently named a membor of the commit- tee to revise the rules of the World Court and he had an important part in framing the World Court protocol. Mr. Root was in Washington yester- day and while here h2 conferred with leaders of the Senate foreign relations committee, including Chairman Borah, Senator Walsh of Montana and Senator Swanson of Virginia. A Mr. Root resumed discussions with Secretary Kellogz today. He will sail from New York February 18, Secrctary Kellogg said, in response to an invitation from the Council of the Leagu> of Na- THE EVENING STAR, WASHTNGTON. D. . THURSDAY. FEBRUARY .7, 192! q Hard-Luck Story Impresses Judge, Defendant Freed Given Fails to Fine Man Convicted of Reckless Driving. Impressed by a story of the trials and troubles of John J. Johnson of Hyatts- ville, Md., who appeared in Police Court today on a charge of reckless driving, Judge Ralph Given decided that the man had had enough to contend with without being fined. s said that Johnson had had a se of influenza which caused him to be confined in a hospital for three months. Released from that in- stitution he discovered that his teeth were in poor condition and had them all extracted. A few days later he drove his automobile through Washington. Driving down E street he falled to observe that traffic lights had been installed at street intersections during the time he was confined to the hospital Running past the lights, Johnson's car crashed into a machine driven by Mrs. A. P. Kriebehly. He was then arrested and charged with reckless driving. ) “You've had enough hard luck.” said Judge Given as he freed the man. Al- though he decided that Johnson was guilty of the offense and convicted him | he failed to impose a fine. Attorney Harold Hawkins, counsel for the defendant, advised the court that his client had arranged for a settlement of the claim for damages to Mrs. Kriebehly’s car. CHANGE OF TRIAL Policeman Loses Plea to Disqualify Stoll at Rehearing. Granted a rehearing on charges of leaving his beat and subsequently re- moving & part of his uniform, Luther J. ‘Walker, a policeman, appeared before the Police Trial Board this morning and was denied his request for a new chair- man of the board by Inspector Lewis J. tions, to attend a meeting of jurists at Geneva, March 11, called for the pur- pose of studying a revision of the stat- utes of the World Court. " After leaving the State Department | Mr. Root called at the White House, | where President Cooliidge invited him| to be his luncheon guest. i . SHIP BOARD AGREES D AGREES T0 CHECK ON SALE Commerce Committee Be- | fore Closing Contract. By the Associated Press. 3 Members ~of - the Shipping Board agreed today to confer with the Sen- ate commerce committee before closing a contract for the sale of the Atlantic fleet of the Government shipping lines. With this understanding, the Senate committee halted its investigation of the proposed sale of the United States and American Merchant lines which was ordered late yesterday. Chairman O’'Connor of the Shipping Board denied before the committee that the board contemplated signing a con- tract for sale of the 13 ships, including the Leviathen, today, as had been re- ported. . All Agree to Plan. Chairman Jones of the committee then suggested that the board agree to inform the committee of its decision on the ship sales before it took final action. O'Connor at first objected, but | finally agreed, and each member of the Shipping Board then rose in turn before the committee and agreed to the plan. Senator McKellar, Democrat, of Tennessee, author of the resolution ordering the inquiry, told the Senate| aesm'dny he understood the board in- nded to complete the transaction early today for sale of the ships. The highest bid, $16,000,000, was received 1;1‘01?{ Paul W. Chapman, Inc., of New york. O'Connor denied also the charges made yesterday in the Senate that the board had acted irregularly in its con- sideration of the bids for the fleet. He said the board had asked, in the usual manner, for an examination of the bids by the Emergency Fleet Corporation. Board Investigates Bidders. O'Connor said the board had in- vestigated the reliability of Chapman and was now investigating the finances of the other bidders. McKellar’'s resolution yesterday was carried without a record vote, although Senator Jones protested. Jones said in his opinion the Government would never again receive as favorabie a bid for it fleet, and added that the adop- tion of the resolution might endanger the completion of the proposed sale. ——— Houston Chronicle Editor Dies. HOUSTON, Tex., February 7 (#)— C. B. Gillespie, managing editor of the Houston Chronicle, died in a hospital at Dallas early today, according to ad- vices received here. He had been in ill health several years. YOUR INCOME TAX. No. 4. A taxpayer, though unmarried, who supports in his home one or. more relatives over whom he ex- ercises family control is the head of a family, and is entitled to the same exemptions allowed a mar- ried person, $3,500. Also, he may claim $400 for each person de- pendent upon him for chief sup- port if such person is under 18 years of age or incapable of self- support because mentally or physically defective. Such de- pendent need not be a relative of the taxpayer nor a member of his housechold. The term “men- tally or physically defective” in- cludes not only cripples and those mentally defective, but persons in 1l health and the aged. For ex- ample, if an unmarried son sup- ports in his home an aged mother he is entitled to an exemption of $3,500, plus the $400 credit for a dependent, a total of $3,900. If, from choice, the mother lives in another city, the son, although her chief support, would be en- titled only to the $1500 exemp- tion, plus the $400 credit. The mother not living with him, he is not considered the head of a family. The 8400 credit does not apply to the wife or husband of a taxpayer, although one may be totally dependent upon the other. Stoll, who was chairman of the board which recently convicted him. As a matter of fact, it was pointed | out by Capts. Fred Cornwell and W. G. Stott, Stoll's associates, none of the present board may sit in Walker's case if the objection to Inspector Stoll's sitting is upheld. Policeman R. J. Allen, refused per- mission at the first hearing of Walker's case to appear as counsel for the ac- cused policeman, and who again is at- tempting to appear as counsel in the case, leit for a conference with Maj. Hesse immediately after Inspector Stoll announced his decision. Sought Continuance. ‘Walker appeared before the board this morning and sought a continuance, and when this was denied turned his attention to Inspector Stoll's serving in the case again, holding that the board | chairman already has given voice to & | bias in the case. Walker originally was found guilty as charged by the trial board as it is constituted today and a fine of $15 was ordered enforced. The case was submitted to the Dis- trict Commissioners in the nature of an appeal from the trial board's de- cision and a rehearing of the evidence was ordered by the Commissioners. Might Embarryss Board. Policeman Allen was barred from acting as counsel for his brotner offi- cer at the original hearing on the grounds, stated by Inspector Stoll, that he might embarrass the board and prejudice himself with his superior officers through his questioning of them. Policeman Allen claims that he has been advised by Assistant Corporation Counsel Fowler that he is within his rights in appearing as counsel for his brother officer, and today he declared his intention of again attempting to defend Walker. ‘The rehearing was continued over to this afternoon, 0DD FELLOWS ELECT AUDITOR PATRIARCH Annual Session of Order's Grand Encampment Is Conducted at Temple. Ernest L. Loving, senior auditor in the general accounting office, was elected grand patriarch of the Grand Encampment, Independent Order of 0dd Fellows, at the annual session held in the auditorium of the L O. O. F. Temple last Tuesday. Initiated on May 2, 1911, and receiv- ing the degrees in the Robert E. Lee Lodge, No. 537, I. O. O. F., he transfer- red his membership to Metropolis Lodge, No. 16, of Washington. He was admitted to the Grand Encampment on February 3, 1925. Other officers elected for the ensuing year were: Lemuel H. Windsor, P. G. M., grand senior warden; William H. McConnell, grand junior warden; Sam- uel F. Frye, grand high priest; Charles G. Barton, grand scribe; W. B. Randall, grand treasurer; William T. Galliher, representative to the Sovereign Grand Lodge; Millard F. Zepp, grand marshal; James E. Griffith, grand sentinel, and Eppa C. Royston, grand outside sentinel. BEET SUGAR FIRM FACES TRUST CHARGE By the Associated Press. Anti-trust charges against the Great Western Sugar Co. have been filed in the Federal Court at Lincoln, Nebr. The complaint, which charged re- straint of trade in sugar beets and beet sugar in Colorado, Montana, Wyoming has defeated the building of projected competitive factories by beginning the construction of opposition factories to buy and use all sugar beets grown in the areas in which the competitive com- panies would find it necessary to obtain their supply. It charged further that this purpose had been accomplished by increasing purchase prices for sugar beets and reducing selling prices for refined sugar. ‘The complaint charged that because of these tactics a factory projected by the Farmers' Union Co-operative Sugar Co. at Minatare, Nebr., and one planned by the Holly Sugar Corporation at Tor- rington, Wyo., were abandoned. ‘The Department of Justice started its Investigation into the affairs of the Great Western Sugar Co. nearly a year ago. Last May. after the sugar com pany had refused to furnish investiga- tors with data concerning the company’s business, a grand jury, empaneled at Lincoln, subpoenaed all its records and business data. ‘The company finally agreed to per- mit investigators from the department to go over its books at its headquarters in Denver. This was done during the An exemption as the head of the family can be claimed by only one member of a household. Summer, and conferences between the officials of the company and the De- t of Justice were hold here last, EHAIRM“A_NBEFUSED," and Nebraska, alleged that the company } ICRUISER APPROVAL ASSAILED N PARIS Editorials Hold Little Sympa- thy for America’s Claims as to Her Needs. By the Associated Press, PARIS, February 7.—Passage of the | cruiser bill by the' American Senate | evoked long editorials yesterday in both Le Temps and the Journal des Debats. Little sympathy for America’s claims as to her needs, especially in the matter of parity witf Great Britain, was found | in either article. Both, however, accepted unquestion- ably statements by Sir Austen Chamber- lain, foreign secretary; W. C. Bridge- man, first lord of the admiralty, and | other British officials as to England'’s requirements, pacific intentions and su- | perior sacrifices in the scrapping of warships. “One can deduce from yesterday's action in the Senate,” said Le Temps, “that the great majority of the Amer- ican Representatives favor - a policy tending to assure the development of the naval powers of the United States | in such conditions as not only to attain effective parity with Britain, but also in order that mastery of the oceans may definitely be acquired by Americans.” Selfish Motive Seen. The article said that the security requirements of Great Britain and the United States differed and thaf an ab- solute parity between the two navies tuted a false conception of equal- Tha art added. But Americans have considered the question only from the point of view of their own pride. They will admit that there might be in any domain, especially in that mastery of the seas, a nation more powerful than the Unit- ed States. As long as this particular point of view, which has nothing in common with the real needs of national defense, prevails across the Atlantic. an agreement for limitation of naval armaments that would be acceptable to all interested powers will be difficult to find.” England now, in the opinion of Jour- nal des Debats, must proceed to a new examination of the naval question. The paper conceded that the late la- mented Anglo-French naval accord, as well as the breakdown of the tripartite conference at Geneva, provoked the American decision to increase its sea power. England Especially Affected. “Other powers, including France, have great interests at stake in the ques- tion, but it is especially England which is affected by the Senate action,” and, the newspaper said, the London cabinet wonders whether it must separate itself from France and other powers in order to be able to agree with America. The article reminded England that Anglo - French and Anglo - American friendships were not incompatible. It added: “Despite what some Englishmen still say, England is a European and continental power. She is no longer the island which she was up to the be- ginning of this century. She must adopt policies with that fact in mind.” TrEmmm e 33 KILLED, 200 HURT IN BOMBAY RIOTING Hindu-Moslem Disorders on Larger Scale Today—Troops Reach Scene. | By the Associated Press. BOMBAY, February 7—Hindu-Mos- lem rioting broke out again on a larger scale here this morning, the fifth suc- cessive day of the disturbances. In the Bhendy Bazaar district one burly Pathan killed four Hindus with a knife. The district was terrorized, arrival of troops finally allaying its fear. A band of 30 Pathans, assem- bled for the purpose of combined as- sauit, had been arrested previously. ‘The rioting spread quickly to the dock area of Mazgaon and northward to the Byculla district. More troops arrived from Deolali, On two occasions early in the after- noon the military was forced to open fire on mobs in the region north of the Bhendy Bazaar. One 'Mohammedan was killed and one died later in a hospital. Six other Mohammedans were wounded serfously and are not expected to recover. ‘The Bombay government this after- noon issued a communigue reviewing | the events of the past two days and stating that the number killed in the rioting up to noon was 33, with 200 injured. . A -battalion of British troops from | Poona and two companies from Deoali | have reached Bombay to assist the police in maintaining order. A party of Hindus last night at- tacked Moslems returning from a mo- tion picture show, injuring two. The Moslems hurried to their own quarter and raised a mob to retaliate, but troops were able to disperse them with- out firing. Earlier in the day on two occasions troops fired into mobs, killing three | and wounding six. CRITICS OF HARVARD POLICIES ARE HEARD Replies to Comment Made by Prof. Pennypacker at Club's An- nual Dinner. After inviting its dinner guests, heads of Yale, Princeton and Dartmouth alumni here, to criticize adversely the policies of Harvard University, the Washington Harvard Club at its annual dinner last night presented Prof. Henry Pennypacker of Harvard in defense of the university. Prof. Pennypacker gave ample time and attention to the answer of each comment, it was announced. In addition to rival university alumni presidents, a number of high school principals’ were invited to the banquet, held at the University Club. These in- cluded Alvin Miller of Central, Charles Hart of Eastern, Elmer S. Newton of Western, Allan Davis of Business, and Frank C. Daniel of McKinley High School. ‘The fire of the critics, it was said, cenlered on the rigid entrance require- ments at Harvard, by which all but 1,000 persons are excluded from matric- ulating at the university. Prof. Pennypacker, however, assured the guests that it was the hope of the university eventually to remove this restriction. He explained that rigld exi lmuani alre the only practical means of selectivity. Chief Justice McCoy of the District Supreme Court presided, while Justice Sanford of the United States Supreme Court was in attendance. Guevara Is Re;Elecced. MANILA, February 7 (#).—The Philippine Legislature, convened in spe- clal session today, re-elected Pedro Guevara, as resident commissioner of the islands in the United States. It also elected Senator Camilo Osias as resident commissioner to succeed Isauro WALES ON MINE A scene showi stricken regio n Northumberland and and their homs impressed him, and the world, wi DISTRICT TOUR ing the Prince of Wales on his inspection trip of the poverty- Durham, where the sight of the miners h the sad conditions found. 1S OVERSUBSCRIBED Quota Reached on Time, and Surplus Established in First Drive. (Continued From First Page.) ing. W. V. Spaid, who purchased the picture Tuesday for $200, which he gave to th: ches, gave the picture back to the chest so that it might be auctioned for additional funds. It was bought last night by Frank R. Jelleft raised through various bids while Mer- ritt O. Chance served as auctioneer. A list of firms in which all employes contributed, putting them in the *“100 per cent cl s designated by chest | officials, will be submitted by Com-| munity Chest headquarters for publi- cation In the near future, it is stated. Music_was furnished at the dinner by the United States Army Band, and William R. Schmucker led the assom- blage in singing. Further Contributions Are Sought. Deeply impressed and encouraged by the success of the campaign, chest offi- clals today stressed that although the campaign is over it is hoped that many others will give, as additional funds can well be useq in the welfare work. In this connection they point out that due to delays on the part of certain member organizations of the chest in submitting their budget- needs, the budgets of several institutions were placed somewhat below what those organizations actually need. As an illus- tration, it is pointed out that Emer- gency Hospital was given a budget of some $25,000 less than figures later submitted showed it might have been counted in for had figures been sub- mitted earlier. Also, it is pointed out, a number of the organizations have outstanding debts which additional funds will enable them to wipe out immediately, thus doing away with the necessity of paying interest on the debts. Additional contributors are announced as follows: $25 contributions: K. Achtenkirchen, S. N. Acker, J. Mark Albertson, Mrs. Marian Strong Baker, Miss Isabel U. Baldwin, Joseph H. Batt, Batt-Bates & Co., Inc.; Wil- liam L. Belt & Co., H. A. Benner, Dr. Morris I. Bierman, Dr. Biggs, Mrs, Her- man E. Blau, Leonard A. Block, Robert J. Bourke, Clara Bradley, Mr. and Mrs. Frank Van Brakle, J. Howard Brine, Mrs. Karl F. Brodt, Ashman N. Brown, Joseph E. Brunner, H. R. Bryarly & Bro., William E. Buflington, Robert D. Burbank, Mr. Burke, Arthur B. Camp- bell, A. F. Cardon, J. S. Carpenter, John J. Carson, L. W. Cass, Dr. apd Mrs. Claude C. Caylor, N. F. Chaconas, J. A. Chamberlsin, G. W. Chas2, L. W. Chealdins, Chemical Paper Co., E. N. Cherrington, Sam Chesiveir, S. C. Cis- sel, Charles T. Clayton, Mrs. A. A. Clemons, G. H. Collins, W. V. Connoi Conradi: Co., Inc.; A i . Cu lier, John J. Darby, Ralph A. Davis, Dr. Sheldon G. Davis, William Deiches & Co., Inc.; Mrs. Tyler Dennett, Victor S. Desio & Co., Mr. and Mrs. Henry D. Dillon, Mr. and Mrs. Fannie Dobkin, Margaret M. Dore, Aloysius J. Driscoll, Mrs. Charles C. Duncan, George W. Dunn, Dr. Anna Bartach Dunne, Ed- monsfon & Co., Thomas Edwards, E wards Motor Co., Mrs. Emma R. Elias, D. H. Ellis, N. Fanaroff, Miss Ellen L. Fay, Dr. and Mrs. S. Fealy, George N. Ferris, Paul Finckel, Janet Fish, Col. Henry C. Fisher, Milton M. Flanders, Leo Fogel, Miss May D. Fox, Mrs. A. W. Francis, Ruby W. Fred, John B. ey, Mrs. Walter S. Frisble, R. M. 'ud, William J. Galleny & Co., Mrs. Caroline A. Galliher, W. W. Garner, W. L. Gary & Co., Inc.; Mrs. Simon Gerber, W. W. Gilbert, Max Gorin, Clarence W. Gosnell, L. S. Gottlieb, Mr. and Mi E. Charlton Graves, | Lawrence Graves, Comdr., Grienlee, | Lieut. Col. Donald Gubbison, E. F. HBILI F. L. Haller, Mrs. Leo W. K. Busch, Charles L. Mitchell and family, Hairy S. New, Mrs. John B. Quay, George W. | Hamilton, Mrs. Laura V. D. Hanson, Mrs. Mary Harsha, Harvey's, Inc.; M Laura Heldingsfeld, Mr. George Heif muller, Dr. A. Henry, A. E. Henye, Henry Herbert, Frank A. and Eva Hess, Edwin Allston Hill, F. H. Hilman, Allen A. Hollander, Mrs. Kirk Holmes, Kath- Jeen M. Houghtailng, Helen Howison, Mrs. Harry E. Hull, Miss Annette L.} Huntley, Dr. Grace L. Hurd, Isaac Jacobson, Clifford L. Johnson, H. F. Johnson, Mr. John B. Jones, Ruth E.{ Jones, Dr. Robert Kelty, Kent Depart- | ment Store, William Kerols, Russell B. King, August Kleeblatt, Charles F. Koh- lerman, Dr. J. Kotz, Gregor Kramm, John H. Kroll, Nathan Krupsaw, H. N, Lawrie, Dr. and Mrs. Huron W. Lawson, Col. and Mrs. Harry R. Lee, Jacob Levin, Mrs. Sarah Levy, Jacob Liebster, Mrs. Ethel A. Linz, F. E. Livengood, Katherine Lockwood, Mrs. John Lowe, W. H. Luckett, Miss Sarah H. Maher, Thomas O. Marvin, T. J. McBreen, M: Gen. and Mrs. Henry P. McCain, M Burton McCollum, Mrs. Willlam J. Mc- Donald, Dr. Sterling Meade, Walter R. Metz, Mrs. Samuel Miller, Maj. and Mrs., Willlam A. Miller, Willlam E. Mil- ler, Marion J. Money, Miss Katie C. Moore, Mrs. Raymond B. Morgan, Mr. and Mrs. Morris, Mount Pleasant School for Secretaries! William F. Murray, Miss Caroline Mytinger, William W. Neli- gan, New York Cash & Credit Co., Mary A, Noll, Edmund I. Oakes, Robert C. O'Hara, Joseph Oliver, Mau- rice Otterback, Mr. and Mrs. Charles W. Parke, Paul Pearlman, A. Pifferling, Doran Platt, John Pollins, E. E. Pope, Harry C. Pratt, Mrs. James H. Purdy, HWF‘_'A*Q.‘»W LaFour-L. Rage wwaMfiMMmmMg COURSE PONDERED Question of Whether Reserve| Board or Congress Will Act Is Raised. BY DAVID LAWRENCE. The power of the Federal Rescrve board to influence directly and indi- rectly the credit situation throughout the country is now being demonstrated. The board through its statement Wednesday warned that high money rates were interfering with the legiti- mate needs of business. Construction which depends on low money rates is receding from previous months. The cost of borrowing is Jising and the business man is complaining. For many months the board has ruggled with the problem, trying as did last Summer to issue warnings that the loans for speculative purposes being made by member banks of the Federal Reserve system were fundamen- tally wrong, and that the amount bor- rowed for such purposes should be cut down, But the banks themselves appeared unwilling to heed the warning and large corporations with surplus funds were able to use their funds indirectly for speculative purposes, too, by lending it out at call. Board Calls Halt. Now, however, the Federal Reserve | Board has called a halt. Just what measures it can take to enforce its views is a matter of much conjecture. The board has a tenuous hold on member bank policies. It can, of course, bring about the raising of the rediscount rate, but that in turn may hurt business borrowing even more. It could begin a process of differentiation between loans for speculative purposes and loans for commercial reasons. That is a hard thing to do, too, and last Summer when investment bank- ers were confronted with the high money rates there was talk of making a distinction between money borrowed for business expansion and money to be used in the stock market. Nobody, however, has been able to devise a plan that would do what the Federal Re- serve Board asks the banking world itself to do. So far as the board is concerned, it does not view the broker loans them- selves as dangerous, because they are, of course, secured, but the diversion of funds to speculative channels which ought to be available for the normal needs of the country, especially in har- vest seasons and in periods of necessary construction activity, is regarded as a menace to the whole economic struc- ture. Not Discussing Situation. There is no serious talk as yet of legislation to give the Federal Reserve banks power to enforce the views of the board, but that is because members of Congress have not yet begun to hear of the adverse effects of high money rates. The Federal Reserve board is discussing not a situation that is at the moment damaging business so much as a contingency certain to arise and affect business adversely if the specu- lative trend is not definitely and effec- tively checked. Much of the speculation is done with borrowed money. In most commercial lpans banks seek to know definitely the purposes for which the funds borrowed are to be used. In the case of borrow- ings in the speculative market there is no objection offered. In other words, the distinction between constructive purposes and speculative activity is not drawn and never has been. The question now is whether the Fed- eral Reserve Board, having expressed it- self fully in warning the speculative element, will go forward with enforce- ment measures of its own by indirectly influencing the member banks cr whether it will reluctantly turn the problem over to Congress to handle. In- deed, the problem may be tackled there ! anyhow very soon if money rates for commercial purposes_continue (o risc or are not diminished materially. (Copyright, 1929 mond, Marie M. Ready, Mrs. Mary B. Robbins, Mr. and. Mrs. H. S. Robinson, Noel F. Rosasco, Nathan Rosenblatt, Solomon Rosenthal, Jacob Rounbery, Miss Ellen Marshall Rugg, Mr. and Mrs. John L. Ryan, Salvation Army Social Service Center, Mrs. Jane C. Sawyer, Herman L. Schub, Mrs. Harriet R. Searle, Louis H. Seigel, Richard L. Seiss, R. Lyman Sexton, M. D. Herman Shapiro, Sheedy & Co., Miss Bertha O. | Sherty, Jacob Seigel, Sigma ‘Theta Pi Sororiety, Goldsmith M. Sigmund, Mr. and Mrs. Robert J. Sime, Simpson Eck- holm Printing Co., K. L. Simpson, C Arthur Slater, Chester Smith, George L. Smith, Mrs. Julia H. Sonneborn, Arthur Steinberg, Mrs. Helene Stern, Dr. Mar- tin A. Stohlman, Mrs. Luke C. Strider, J. E. Swigart, Mrs. Edward Tarring, Edward B. Thiele, Elliott L. Thurston, W. Ullman, Lieut. Charles H. Venable, Louey Venn, Helen P. Vernon, Mrs. Ralph Walsh, W. J. Walther, George H. Ward, Warren Ehret Co., M. T. Watson, J. Willlam Weber, Mrs. John A. Wells, O. H. Wenat, Josephine T. Willlams, Miss Lulie Willlamson, Dr. E. C. Wilson, Robert and Mary W. Wilson, Louls Winer, Miss Wood, H. R. Woodward, Mr. and Mrs, Philip Yudelvil, Jacob Zarin, Arthur M. Zinkham, Carl A. Zolln, jr., and Lieut. Col. Thomas E. Jansen. . Peru is receiving this 0 and un&l\lod Skilled labor RESERVE BOARD POWERS LIMITED Treasury Officials Believe Much Speculative Credit Is Beyond Control. While the Federal Reserve Board has | authority to take certain steps to curb advance of Federal Reserve credit for speculation, following the warning sent out last night, a great bulk of specula- | tion, in the view of Treasury officials { here, is carried on by money over which j neither the Federal Reserve Board nor { its member banks have direct control. { The wave of speculation against which fthe board sounded warning last night is believed by high officials to be running a course which eventually will adjust itself without any per- mapently serfous disruption of the stock market or of the industrial and eco- | nomic system of the country. Meantime the combination of the rise today in the discount rate of the Bank {of England from 4': to 5'; per cent and the Federal Reserve Board's warn- ing had sudden effect on the New York Stock Exchange, which fell off sharply this morning, but was recovering some- | what at a later hour. Individuals Advance Credit. Steps which the board, or reserve banks can take, such as advancing the discount rate, or authorizing the special reserve system committee to buy or sell Government securities to effect the flow of money on the market, are held by authorities here to be helpful in curbing speculation, but not “highly effective.” One reason for this belief, it was pointed out today, was the fact that most of the money used in speculation is coming not from member banks of the Federal Reserve system, but from ) individuals and corporations, over whom the banks exercise no direct control. One of the big factors in holding up the market, according to some official belief here today, has been the great growth of investment trusts throughout the country, for the pur- pose of diversification of investments. Such organizations have gone in for investment generally in sound securi- (ties and are holding these securities |out of the trading, which has created a scarcity in some of the more desir- able stocks. This absorbing of such stecks has had the effect of keeping up speculation among the people, it was pointed out. New York Rate 5 Per Cent. The rise in the Bank of England rate was seen here as a natural development since the opportunity for using money to greater earning capacity in New York had been attracting a flow of Money to New York. Gov. Montague paper which is offered for security. But been in the United States for several days conferring with officials in both New York and Washington. The New York Federal Reserve Bank discount rate is now 5 per cent. Concerning the steps which the Federal Reserve Banks can take to curb speculation, it was explained that the {advance of the discount rate might be resorted to, but if the profits on the exchange continued to be large, this would have a temporary effect only, on the bulk of investment. In the maiter of the Federal Reserve ‘Bank's control over the loans which it makes to member banks, there is a practical control which can be exercised in the supervision of the character of paper which is offered for security. But it had been found, according to one high official, that member banks have been loaning very little on “specu- lative” issues on the Stock Exchange. Cites Gain in Speculation. Examination of the nature of invest- ments had often revealed the fact that | the investments concerned were not of such a nature as to be considered objec- tionably speculative. The Federal Re- serve Bank holds the right to refuse the discount privilege to a member bank in case of necessity, but high offi- clals predicted this would not have to be_resorted to. In its warning the Federal Reserve Board said it neither assumed the right nor had it any disposition to set itself up as an_ “arbiter of security speculation or values,” but emphasized that it was, however, ils “business to see to it that the Federal Reserve banks function as effectively as conditions will permit.” The. board called attention to the growth of speculative credit in the last year. “The resources of the Federal Reserve system,” said the board's statement, “are ample for meeting the growth of the country’s commercial needs for credit, provided they are competently administered and pro. tected against seepage into uses not cu{nempm.ed by the Federal Reserve act.” Diiring the past year loans to brokers and dealers have increased from $3,- 816,000,000 to $5,569,000,000. Era of Productivity. The statement of the board read: “The United States has during the last six years experienced a most re- markable run of economic activity and productivity. The production, distribu- tion and consumption of goods have been in unprecedented volume. The economic system of the country has functioned efficiently and smoothly. Among the factors which have con- tributed to this result, an imporiant place must be assigned to the operation of our credit system and notably to the steadying influence and moderating policies of the Federal Reserve System. “During the last year or more, how- ever, the functioning of the Federal Reserve System has encountered inter- ference by reason of the excessive amount of the country’s credit absorbed in speculative security loans. The credit situation since the opening of the new year indicates that some of the factors which occasioned untoward developments during the year 1928 are still at work. The volume of specula- tive credit is still growing. “Coming at a time when the country has lost some $500,000,000 of gold, the effect of the great and growing volume of speculative credit has already pro- duced some strain, which has reflected itself in advances of from 1 to 1!, per cent in the cost of credit for commercial uses. The matter is one that concerns every section of the country and every business interest, as an aggravation of these conditions may be expected to have detrimental effects on business and may impair its future. Assumes No Right As Arbiter. “The Federal Reserve Board neither assumes the right noy has any disposi- tion to set itself up #s an arbiter of security speculation or' values. It is, howevar, its business to see to it that the Federal Reserve banks function as effectively as conditions will permit. “When it finds that conditions are arising which obstruct Federal Reserve banks in the effective discharge of their function of so managing the credit facil- ities of the Federal Reserve System as to accommodate commerce and business, it s its duty to inquire into them and to take such measures as may be deemed sultable and effective in the circum- stances to correct them; which, in the immediate situation, means to restrain the use, either directly or indirectly, of Federal Reserve credit facilities in ald of the growth of speculative credit. In this connection, the Federal serve Board, under date of February 2, ad- dressed a letter to Federal Reserve banks which contains a fuller state- ment of its position: “‘The firming tendencies of the money market which have been in evi- dence since the beginning of the year— contrary to the usual trend at this sea- son—make it incumbent upon the Fe eral Resetve banks to give constant and close attention to the altuation n oxder | “Thrilled” by Wink, Girl Causes Arrest Of Alleged Bandit Throws Arms Around His Neck to Hold Him for Police as Hold-up Man. By the Associated Press. CHICAGO, February 7.—Jack Walton winked at a pretty girl yesterday. The girl winked right back, and came right over. “Like my looks?” smiled Jack Walton. “You bet,” quoth the fair one and threw her arms around his neck. Jack well knew his power over women, but the ardor of this one was amazing. This clinging vine clung tighter, and let loose | a scream. Police came. “M§ name,” she said as she handed over her quarry, “is Betty Suerth. Last| Saturday this man held me up and took $300 and checks for $1,300 from me.” Jack Walton observed sadly that his faith in women was shattered. FARM CONFERENCE 1S HELD UNLIKELY Hoover, While Seeing Agri- cultural Leaders, Does Not Plan General Parley. By the Assoclated Press. MIAMI BEACH, Fla., February 17 (#)—While President-elect Hoover will confer with a number of farm leaders in the formulation of an agricultural relief program, he has ne intention of calling a generfl farm conference in advance of the special session of Con- gress in April, His general ideas on the subject al- ready have been outlined along broad lines and no dount will be restated in his message to the Seventy-first Congress at the convening of the extraordinary session. Details naturally will be left to the two Houses, committees of which are expected to begin public hearings early ! in March. Opposes Governmenial Interference. Many plans will be presented to these committees and the bill as finally re- ported will be the result of a process of elimination with the exception that the fundamental principle will be that of a farm board and a revolving fund with provision made for the creation of farm- ) owned and farm-controlled corporations to assist in the orderly marketing of crops. In the agricultural industry as well as in all others, the President-elect wants as little Government interference as is consistent with the interest of the people. His conception of the problem is that the farmers want to conduct their own industry along sound lines with such Federal assistance as will enable it to reach a parity with other industries. Upward revision of tarilf schedules on farm products is one method which has been promised and in the forth- | coming general amendment to the pres- | ent tariff law this will be sought along | with changes in schedules atfecting | other products necessary to meet | changed conditions since these sched- | ules were written. Friends of Mr. Hoover assert tha' he does not look with favor upon a general revision of the tariff. They rep- resent him as favoring only a general amendment to the present act which wil afford the additional measure of protection that certain industries need in the light of altered conditions af- fecting them. Session Date Is Undecided. . ‘While Senator Smoot of Utah, chair- man of the Senate finance committee, favors the calling of the extra session on April 1, the actual date of the con- vening of Congress will depend largely upon the progress made by the House committees handling the farm relief and tariff measures. If these committees can be ready to report out measures by the date sug- gested by Senator Smoot, then Congress probably will meet at that time. If they cannot, then the call would be for a later date, but with little likeli- hood that it would be after April 15, as the leaders want to clean up their work and get away before August. All of these questions have formed | subjects of conferences which the | President-elect has been holding with Senator Smoot, who is to remain here for a week. They also will be taken up with other Senate and House lead. ers after Mr. Hoover returns to Wash- ington a short time before his inaugu- ration on March 4. STOCK PRICES DROP ON CREDIT WARNING OF RESERVE BANK ___ (Continued From First Page. Grigsby-Grunow in the slump, but sub- stantial recoveries occurred in many cases toward midseason and gsby [ rallied to 165. U. S. Radio & Television, ed lated to 127, only to break again to 120. Ceco, however, off 7 at the open- ing, moved back to 77 and retained its Tecovery. In the industrials, Art Metal was down 5 at the start, opening at 47, and later moved up to 50. Allied Motors was off more than 6 at 50%, and Borg- ‘Warner more than 4 at 140. that no influence adverse to the trade and industry of the country shall be exercised by the trend of money con- ditions, beyond what may develop as inevitable. ‘Would Protect Commerce. “‘The extraordinary absorption of | funds in speculative security loans which has characterized the credit movement during the past year or more, in the judgment of the Federal Reserve Board, deserves particular attention lest it become a decisive factor working to- ward a still further firming of the money rates to the prejudice of the country’s commercial interest. ““The resources of the Federal Re- serve system are ample for meeting the growth of the country’s commercial needs for credit, provided they are com- petently administered and protected against seepage into uses not contem- plated by the Federal Reserve act. “‘The Federal Reserve act does not, in the opinion of the Federal Reserve Board, contemplate the use of the re-| sources of the Federal Reserve banks for the creation or extension of specu- lative credit. A member bank is not within its reasonable claims for redis- count facilities at its Federal Reserve bank when it borrows either for the purpose of making speculative loans or for the purpose of malntaining specu- lative loans. “‘The board has no disposition to assume authority to interfere with the loan practices of anber banks so long as they do not involve the Federal Re- serve banks. It has, however, a grave responsibility whenever there is evidence that member banks are maintaining speculative security loans with the aid of Federal Reserve credit. When such is the case the Federal Reserve bank becomes either a contributing or a sustaining factor in the current volume | tilt. “after opening 13 points off at 120, soar- 4 e BYRD SHIP BACK AFTER ICE BREAK City of New York, Endanger- ed by Shifting Pack, Is Safely Moored. BY RUSSELL OWEN. By Wireless to The Star and New York Times. BAY OF WHALES, Antarctica, Febru= ary 5.—After a short jaunt out to sea night before last to avoid being bumped on the bay ice under our lee in a strong northerly wind, the bark City of New York is back again being unloaded of the materials left aboard by the supply ship Eleanor Bolling. Everything left on the barrier edge, after the cliff broke off and fell on us, has been hauled to the base safely, and it should take only a few days to get ashore the large house, gasoline and food on this ship. The Ford fuselage, which had been taken to safety far back from the bar- rier edge, was hauled in by 27 dogs, a unique load for these husky little toilers. The entire 27 could easily have been put in the cabin of the plane. It was hard pulling, but, with men pushing up the snow hills, it was accomplished in & few hours. K The barrier trail was so smooth that even a topheavy radio transmittet, weighing nearly 1,000 pounds, was taken in easily by one driver and seven dogs. The old trail over the bay ice is being used again and, as the ship is moored now to old bay ice several feet thick, there is no chance of the men going in near the ship. Some of the cracks near the inlet, on which our. base is situated, have opened up recently. This was because of the movement of the bay ice or some unexplained pressure. However, they can be bridged. ‘The weather today is perfect after the storm, and the sun shines as warmly as on a Spring day at home. But when the sun gets low it quickly becomes cold and the ice forms near the ship. Mail Record Set by the Bolling. ON BOARD THE STEAMSHIP ELEANOR BOLLING, en Route From the Bay of Whales to Dunedin, New Zealand, February 5—For the first time in history the United States mail flag has been flown south of latitude 75 south. It flew from the mast of the steamship Eleanor Bolling, the ‘Supply ship of the Byrd Antarctic expedition. On January 27 the Eleanor MW delivered mail to the bark City of Ne! York, Comdr. Byrd's flagship, in the Bay of Whales, and to Little America, his base on the ice barrier of Antarctica fringing the bay, in latitude 78:58 south, longitude 162:30 west. On Saturday Eleanor Bolling left the Bay of Whalps bearing mail from the members of tix Byrd expedition to their families and' friends back home, and today she is stopping -alongside various whalers in' the Ross Sea, in latitude 74 south, longitude 180 west, picking up mail for various parts of the world. The mails wil be promptly trahsshipped upon the ayrival of the Eleanor Bolling at Dunedin. (Copyright, 1929, by the New York Times Co. aud the St. Louis Post-Dispatch. Al rights for publication reserved\ throushout the world.) DRY FUND BLOCKS DEFICIENCY BILL Deadlock Between Senate and House Threatens to Kill Measure. By the Associated Press. Alarmed at the threat of failure of the deficiency appropriation bill, con- gressional leaders are anxiously study- ing the deadlock between the Senate and House over the $24,000,000 increase in prohibition funds added to the meas- ure by the Senate. Neither House nor Senate made a move for a renewal of ences which broke up when the I spokesmen refused the demand {0 haw the House vote on the item. . If a break comes, it is believed i#. be on the Senate side, because of retary Mellon’s vigorous opposition the increase. The Senate o ingly approved it with the votes of administration Senators, but there age signs that some of the supporters of the dry fund in the Senate are worried over the prospects of the bill, which containg several other appropriations. Senator Harris, Democrat, Georgis, the author of the prohibition-increase amendment, declared today he could hold his strength in another Senate Meanwhile, both Senate and House leaders are openly declaring the bill is dead. Senator Harris declared that if the deficiency bill does fail, he will renew his fight when the second deficiency measure comes along, and another is expected before the end of the session. If the increase is not allowed at this session, he said, he would resume the fight next session. ‘While some opposition has crobped up to it, the conferees are about ready to approve the proposal of Scnator Glass, Democrat, Virginia, adding $250,- 000 to the bill, to be used by the Presi- dent for a sclentific investigation of prohibition. Herbert Hoover has said he wants such an inquiry. MASONS CONDUCT RITES FOR PAST GRAND MASTER Services for Frederick C. Alexander Are Held at Glenwood Cemetery. Funeral services for Frederick C. Alex- ander, 75, past grand master of the iGl'nnfl Lodge of Masons of the District of "Columbia, who died in Sibley Hos- pital Monday, were conducted in Hy- song's funeral chapel, 1300 N street, this afternoon. Interment was in Glen- wood Cemetery, with Masonic rites at the grave by the Grand Lodge of Ma- sons. Mr. Alexander was grand master of the Grand Lodge in 1892, and in the year previous served as potentate of Al- mas Temple of the Mystic Shrine. He was widely known among Masons. B Tailors Map Advertising Program. DETROIT, February 7 (#).—A na- tional advertising campaign calling for expenditure of $2,000,000 over a four- year period was indorsed by the Merchant Tailors Designers’ Associae tion in its national convention here, ‘The campalgn will be restricted princi- pally to newspapers. -— PSS JAND CONCERT. By the United States Soldiers’ Home Band Orchestra, at Stanley Hall, Thurs- day, February 7, at 5:30 o'cloc! “Let's Go” Gershwin of s?eculnlve security credit. This is not in harmony with the intent of the Federal Reserve act nor is it conducive to the e of uumdu‘fl‘ it system. of the country.’ ) A “If You Want the Rainbow, You Must Have the Rain” «. ... Dixon “Confidences” ....... Waldteufel T Wanna Be Loved by You”....Ruby “The Star Spangled Banner,”