Evening Star Newspaper, March 29, 1929, Page 1

“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. WEATHER. (U. 8. Weather Bureau Forecast.) Increasing cloudiness and somewhat warmer tonight, followed by showers to- morrow:; lowest temperature tonight about 46 degrees. Temperatures: High- est, 60, at noon yesterday; lowest, 37, at 6:45 am. today. Full report on page 9. MORNING EDITION New York Markets Closed Today. b b ¢ Foening Star. Yesterday’s Circulation, 110,523 Yntered as seco post office, Wa No. 31,013. nd class matter shington, D. C. WASHING & TON, D. C, FRIDAY, MARCH 29, 1929—SIXTY PAGES. * (#) Means Associated Press. TWO CENTS. INSPECTOR PRATT APPOINTED AS CHIEF OF POLICE FORCE 10 SUCGEED HESSE New Superintendent, Veteran Peace Officer, Will Take Over New Duties Monday With Rank of Major. COMMISSIONERS PLAN- SEVERAL PROMOTIONS Department Reorganization Is Pro- posed Following Induction Into Office—Shelby, Bean, Edwards, Davis, Bobo and Barnes Are| Slated for Advance. Inspector Henry G. Pratt, as-| sistant superintendent of the Met- ropolitan Police Department, and chief of the Detective Bureau, was today appointed by the District Commissicners to succeed Maj. Edwin B. Hesse as superintendent. | He will take over his new position Monday, when Maj. Hesse goes into retirement. ‘The promotion of Inspector Pratt had been regarded as a certainty and the Commissioners’ action did not come with any degree of surprise in police circles. Before making the selection, however, the Commissioners gave serious and |- thorough consideration to the nearly score of candidates for the position. With the new superintendent chosen, the Commissioners will concentrate on plans for reorganization of the depart- ment which will follow Inspector Pratt’s induction into office. At least half a dozen outstanding figures in the de- partment are slated for promotion, Shelby May Succeed Pratt. A tentative list of those eligible for advancement has been drawn up for the Commissioners’ approval. The slate is understood to have been framed dur- ing a series of recent conferences be- tween Maj. Hesse, Inspector Pratt and Inspector William S. Shelby, assistant superintendent and personnel officer, Inspector Pratt’s post as chief of the Central Detective Bureau, according to the tentative plans, would be given to Inspector Shelby. Pratt's rank of assistant. superintendent, which carries with it an increased tion of $250 & year, would be conferred on In- spector E. W. Brown in charge of the Traffic Bureau. Brown, however, would continue his present duties. The program of promotions also pro- vides for the elevation o: glpt. T. Er n of the first preeinct auml the vacancy in this rank due to the appointment of Pratt as superinten- dent. It is planned to place Bean in charge of the detective bureau at ht. m{dwt. Lewis I. H. Edwards, assistant ‘personnel officer, would be advanced to captain under the tentative slate and given direct charge of the personnel bureau which Inspector’ Shelby now di- | Tects. The vacancy created by the con- templated, promotion of Capt. Bean would be filled by the advancement of Lieut. Ogden T. Davis, whp was re- cently ordered transferred from the fifth precinct to police headquarters. It has not been definitely decided, how- ever, whether Davis would be put in command of the first precinct. Bobo Slated for Advance. Other promotions contemplated to fill vncancies caused by the series of ele- vations involve Sergt. J. E. Bobo, night inspector, who is slated for a lieuten- ancy, and Pvt. J. P. Barnes of the seventh precinct, who'is mentioned for a sergeantcy. None ofy the personnel changes, it was said, is likely to be made before Mon- day, as it is the intention of the Com- missioners to confer with the new su- perintendent before he makes recom- mendations for promotions. Pratt’s promotion to the superintend- ency was made by the Comissioners on motion of Proctor L. Dougherty, who has supervision over the Police Depart- ment. The official motion read: “I move that the following order be adopted: “Ordered, that Henry G. Pratt, assist- ant superintendent, Metropolitan Police Department, is hereby appointed major | and superintendent of the Metropolitan | Police Depar!m?n(.ggg take effect on after April 1, 1929.” .nghomy after being officially advised | of the action, Pratt, in an interview with newspaper men, announced he did not plan any radical changes in the policies of the department. “I lhln!{' the policies in force now are good ones,’ he said, “and that will do pretty well ve carry then on. 1 ‘?As to personnel, of course there will be several changes, but they are mot ready to be made just vet, or mot be- fore Monday at the earliest. | 1 “I haven't had time yet to think out nnvI details of the reorganization, “but it ought not to be a difficult matter. Hesse Praises Successor. stioned as to his attitude on en- o e pronibition act in Washing- fon, Pratt said he thought the situa- tion could be handled better if every member of the department were given authority to meke arrests for violations of the law. At present this authority is conferred on only one man in each | ~ the 14 precincts. “(“1 think that Pratt should have had the job when it was given to me,” said Maj. Hesse. “He has always been my candidate. I feel that I will leave the department in safe hands with him in charge. He has always been a square shooter.” g The new major and superintendent, a veteran in the police service, has had & distinguished carcer. He is a picturesque character, his 200 pounds towering above 6 feet “The advancement of Pratt is the ful- fillment of his hopes. During the ad- ministration of the late Commissioner James F. Oyster he was on the threshold of the superintendency, but fate de- layed his promotion. ‘Born in Passapatanzy, King George County, Va., August 25, 1873, Pratt came to Washington at the age of 23 to ac- ept & sition as money fhce of the United States Express Co He remanied there until August 1, 1896, when he began his career in the Police Department. Pratt Has Won Commendations. Numerous_entries of commendations have marked his official record of serv- ice, now rounding out the thirty-second ear. The latest was entered June 17 . A-gonfinued, n Page 2, Column 1.) clerk in the | | ommended for promotion to inspector. LIQUOR SMUGGLING LAID T0 LAWMAKER Warrant Issued for Arrest of Representative Michaelson of Illinois. By the Associated Press. CHICAGO, March 29.—A warrant for the arrest of Representative M. A. Michaelson was issued today by United States Commissioner Edwin K. Walker. ‘The complaint against the Illinois Representative was signed by Frank L. ‘White, prohibition agent, following the arrival of an indictment returned last October at Jacksonville, Fla. Bond was set at $2,000 and it was un- derstood Michaelson would be given 24 hours to surrender and file bond, pend- ing a hearing on removal proceedings. He was charged with possession and transportation of liquor and importation of liguor without payment of revenue. ‘Warrant Sent to Washington Once. ‘The latter charge is a felony and car- ries with it & maximum penitentiary sentence of two years and-a fine of $5,000 in case of conviction. 1f Michaelson does not appear of his own accord, the warrant will be turned over to a deputy United States marshal for service. The caplas for the arrest was sent from Jacksonviile to Washing- ton several weeks ago, but was not served. It was redirected to Chicago. Claim Baggage Leaks. ‘The charges resulted from the con- fiscation of a suit case of liquor, part of Michaelson's baggage, brought from Cuba after a tour of the island. It was said the baggage bore an “expedite” or- der, which assured the Congressman freedom of the port. Having passed the Key West customs men without inspection, he proceeded to Jacksonville, unmolested, and was standing in the railroad terminal when the suit case in his hand began to leak. A State officer seized it and turned the matter over to Federal agents. Backed by Dry League. Representative Michaelson of Chi- cago has been backed in his politi- cal career by the Anti-Saloon League, and he has voted for several laws fa- vored by the league, including the Jones law. Michaelson was first elected to repre- sent the seventh Illinois district in 1920 with the backing of the organization headed by Mayor “Big Bill” Thompson. (Continued on Page 2, Column 6.) FAILS TO FIND PLANE. Los Angeles Returns After Vain Hunt for Amphibian. LAKEHURST, N. J., March 29 (#).— The Navy dirigible Los Angeles was re- turned to its hangar today ,after two nights and a day of fruitless search along the coast between here and Nor- folk, Va., for the amphibian airplane, in which T. Raymond Finucane of Rochester, N. Y., and three others, who disappeared last Friday. Lieut. Comdr. Charles E. Rosendahl was in charge of a crew of 50 officers and men on the airship. They flew low | 100 miles off shore. Maryland and Virginia News SHIFTS IN POLICE DEPARTMENT Upper left: Inspector William S. Shelby, who is slated to become chief of detectives, Upper right: Capt. Thaddeus R. Bean, who is expected to be rec- Center: Henry G. Pratt, whose appoint- ment as superintendent of police was approved today by the Commissioners. Below, left to right: Inspector E. W. Brown, who is expected to be appointed as assistant superintendent; Lieut. O. T. Davis, who likely will be promoted to a captaincy and may go to the first precinct; Licut. Lewis I. H. Edwards, slated for promotion to a captaincy and to take over the personnel bureau at headquarters. over the coast line and in areas at sea | —Star Staff Photos. PRIEST SHOT DOWN; BLAMED IN ARREST Father of Youths Held in Church Theft Thrice Wounds Pastor. By the Assoclated Press. CHICAGO, March 29.—A Roman Catholic priest was shot three times and Pprobably fatally wounded today by the father of two boys whom the priest had arrested for burglaring his church. ‘The priest, FPather C. A. Erkenswick, pastor of the Church of the Holy Ghost, on the West Side, was accosted in the church yard as he talked to sev- eral men by the boys’ father, Gadtano Menna, who asked for the head priest, and when the minister replied he wasin | charge of the church handed him a| letter. As Father Erkenswick started to read it Menna whipped out a pistol, shot the clergyman in the head and then fired two shots into his back as he fell. Menna fled to his home near the church where police squads, armed with tear bombs and riot guns, arrested him. ‘The priest was hurried to a hospital, where doctors said he probably would die. Menna’s two sons, John and Paul, were arraigned in the Boys’ Court to- day on charges of having stolen from the church. Menna readily gave up the pistol with which he shot the priest. Two small boys saw him flee from the scene and pointed out the house he entered. At the police station he told his story of the shooting without hesitation. ‘The father said his sons, Paul and John, 19 and 18, had.been arrested last ‘Wednesday with a companion on in- formation furnished by the priest. The police said they had since confessed robbing more than 30 Catholic churches, among them the Church of the Holy Ghost. Menna said he recefved a letter yes- terday from his son in jail, accusing the priest for causing the arrest. Menna said this so enraged him that he took the letter to the priest and shot him as the victim read it. YOUTH FOUND GUILTY Oregon Jury Recommends Life Im- prisonment—Jealousy Given as Killing Motive. By the Associated Press. CORVALLIS, Oreg, March 29— Lanza Bryant, 20, of Corvallis, who stabbed to death Lewis (Hip) Dicker- son, Oregon State College foot ball star and assistant coach, in a fit of Jealousy, today stood convicted of first- degree murder. The jury, in returning the verdict last night, recommended life imprisonment. of December 17, when he accosted the latter and Mae Troxell, Bryant’s al- leged fiancee. The coach died four days later. ' Question Mark Starts West. 1 (®).—The Army refueling endurance plane Question Mark, left for Chicago, via Cleveland, today in continuation of a tour of Army posts. It came here from Washington two days ago. Rumania Bans Sunday Liquor. BUCHAREST, Rumania, March 29 ().—The Rumanian government today OF MURDERING COACH|~ Bryant stabbed Dickerson the night |2 MITCHEL FIELD, N. Y, March 29| : REBEL PLOT TO KILL CALLES IS BARED BY CONSUL AT EL PAGD Mexico City Is Notified of Plan to Assassinate Com- mander at Headquarters. MAJOR CLASH IMPENDS AS FORCES DRAW NEAR Outposts But 17 Miles Apart in Chihuahua as Federals Force Insurgents Northwest. By the Associated Press. Only 17 miles today separated feder- al and rebel outposts in the State of Chihuahua, and a long awaited major clash seemed near at hand as the gov- ernment continued crowding the in- surgents into Northwestern Mexico. While the rebel leaders still insist that an advance on Mexico City is contemplated and that Gen. Calles is leading his troops into a trap, the feder- al authorities announced the govern- ment pursuit was in full operation both in_Central and Western Mexico. ‘The Mexican consul general at El Paso reported to Mexico City that he had learned of a rebel plot to assas- sinate Gen. Calles at his headquarters. The surrender of numerous rebel sol- diers, tired of fighting the government and discouraged by lack of pay, were reported by the federal authorities. While the main Calles army was ad- vancing on Jimenez, important rebel stronghold, federal reinforcements for Mazatlan on the west coast were nearing that city, with federal cavalry advanc- ing northward in pursuit of the insur- gent forces which failed to capture the place early this week. ‘The federal forces are advancing in two columns to recapture Culiacan from the insurgents. The insurgents reported air raids by two bombers and pursuit planes on federal headquarters at Bermefillo. Activity has developed in Sonora near the American border, one rebel force of 500 men leaving for an unrevealed destination, while others are in the fleld to disperse federal horsemen re- ported in Mesquite, Sonora. FEDERALS ADVANCE ON 2 FRONTS. Destroyed Railroad Lines Impede Move- ments of Calles’ Troops. MEXICO CITY, March 29 (#).— Enrique Liekens, Mexican consul at El Paso, informed the government today that there was a pot on foot to assas- sinate Gen. Plutarco Elias Calles at his headquarters in Northern Mexico. The consul said a telephone conver- sation between two prominent rebel leaders (presumably at El Paso or Juarez) had been overheard in which it was related that the rebel general Jose Gonzalo Escobar, on fleeing from ‘Torreon, left behind him “well paid agents” to Kill Mexico's former presi- dent and minister of war. Thus far no attempt has been made on the life of Gen. Calles, who has his headquarters in the vicinity of Torreon. Federals Advance on Two Fronts. Mexican government troops advanced on two fronts today, finding little rebel opposition to delay their progress. Mile after mile of destroyed rail lines, how- ever, made going slow and arduous. In the north, federal cavalry under Gen. Benigno Serrato occupied Escalon, former insurgent headquarters, after a fight in which two federals were wounded and four rebels killed. An- other federal advance guards cut in near Jimenez, near Chihuahua City, but made no attempt to enter the city. Federal aviators reported Jimenez had been deserted by the rebels, who re- established themselves at Santa Rosalia, 73 kilometers to the northwest, although dispatches from the border said the rebels claimed still to hold this city. The main body of Gen. Almazan's army was operating out of Jaral Grande, be- low Escalon. Rebels Surrender as Pay Is Missing. Government anouncements said there had been numerous surrenders of rebels who no longer wished to fight against the government. News dispatches con- cerning some of these sald the rebel soldiers were paid neither Monday nor Tuesday and that the delinquency had been a great blow to morale. ‘The belief persisted here that if the rebels fight at all it will be at Bachimba Pass, 99 kilometers beyond Santa Rosalia, where the railroad cuts through a mountain gorge just outside of Chi- huahua. Their smaller force would be better able to cope with Gen. Almazan's 10,000 well equipped troops there than at any place north of Torreon, it was said. - Cardenas Reaches Rosario. On the west coast, 3,000 infantry of Gen. Lazaro Cardenas’ army reached Rosario, & short distance from Mazat- (Continued on Page 4, Colu o LOVRR L R “An Easter Flower”—A Page, and other features. Pages 10 and 11. holic beverages throughout the kingdem I on Sundage, 5 forbade sale and consumption of alco- | i In the Easter Magazine of The Sunday Star “Easter at the Franciscan Monastery”—A story of the annual ceremony at Brookland. “Anton Lang’s Story”—The Christus of the Passion Play relates his experiences. “Lyric Poetry Corridor”—An illustrated article on this feature of the Library of Congress. “The Racing Season Opens”—Training thoroughbreds for the Maryland tracks at old Benning. Also, John Clagett Proctor’s weekly article on old Washington, complete fiction by Zona Gale and Royal Brown, an article by Will Rogers, the Boys’ and Girls’ The Star’s Sunday Graphic Section contains a re- markable full-page illustration of the Japanese cherry trees in bloom—“The Capital’s Spring 1HOPE “THAT BUNCH \ g SErTTS W " N Har —SENATEN /5 g . 15 DIFFEREN FROM . THE OIL CONTROL PLAN STDY IS ORDERED Attorney General Is Asked for Opinion Regarding Legal- ity of Proposal. . By the Associated Press. ‘The announced plan of the American Petroleum Institute for control of pro- duction is to be investigated by both the Department of Justice and the Fed- eral Trade Commission. Attorney General Mitchell has been asked by Secretary Wilbur of the Inte- rior Department for an opinion on the legality of the plan under the anti-trust laws, and the Trade Commission plans to study the institute's curtallment pro- gram on its own initiative, ‘When announced, the plan was de- scribed by the institute as haying been devised in ice with the advice| complian of the Federal Ofl Conservation Board, which includes the War, Navy, Com- merce and Interior Secretaries. That board, Mr. Wilbur, holds, can act only in an advisory capacity, and any as- sistance the institute might obtain for its program would have to come from other agencies. Program Is Not Announced. Members of the board have withheld comment on its program. It has been proposed, however, that the president of the institute and its general and re- glonal committee chairman meet here with the board April 3. Meanwhile officials who have studled its proposal are inclined to regard it as one intended to reduce production and storage costs rather than to raise prices, and while they see in it a possibility of higher crude oil prices, they think it unlikely to affect gasoline and refined oil prices very much, if at all. Mr. Wilbur's pronouncement was made late yesterday after the close of the first hearing by the oil conservation committee of the Interior Department relative to the new oil conservation pol- lcy laid down by President Hoover. Appearing for the Texas Production Co. before the conservation committee, Edward M. Freeman said it had spent $600,000 drilling on government land in Mexico. He contended continuation of that work should be allowed, and that the company should be permitted to work further if oil were found in quantity. ‘Wilbur Withholds Comment. Secretary Wilbur said until he had finished a “most minute study” of the Petroleum Institute plan he did not wish to discuss any of its details. The ofl conservation board has said that reports indicated there was over one-half billion barrels of oil in storage. In January this year the Bureau of Mines reported that over 6,500,000 bar- rels were added to storage, and pre- liminary reports indicated that the total for February would run well over 7,500,~ 000 barrels. During the first two months of the year, the bureau found, oil com- panies stored more than was stored during the entire year of 1928. The present storage is more than double the amount needed as a normal ofl reserve. ORI D S A TN 6 poem by Alfred Noyes. MR N SO I TR In the Magaszine of Next Sunday’s Star ower Show.” Flames Destroy Sepulchre Effigy Of Christ’s Tomb By the Associated Press. NAPLES, March 20.—Fire de- stroyed the sepulcher effigy repre- senting Christ's tomb in the center of the basilica of Santa Maria Nova today just as the priests were pre- paring to celebrate Good Friday mass. ‘The blaze appeared to have started either frora candles or from a short circuit igniting the black draperies. ‘The Franciscan fathers did eve thing possible to smother the flai A fireman named Demicco, at the peril of his life, rushed into the fire and rescued an urn containing the “presanctified” host destined for to- day's communion. The friars, once the fire was subdued, proceeded with the mass at another altar. o LOST PHILADELPHIA GIRL, 12, LOCATED Kidnaping Suspect, Husband of Takoma Park Woman, Held in Charlotte. By the Associated Press. PHILADELPHIA, March 29.—Curtis S. Devonshire, 30-year-old salesman, and Alice Labutis, 12 years, whom he is accused of kidnaping from her home here on Wednesday, were found today at Charlotte, N. C., police announced. He was arrested when he called at a telegraph office for money. The girl was with him. According to word received here, Dev~ onshire told Charlotte police that he had been drinking when he took the girl from her West Philadelphia home. The police said the giri was unharmed. Devonshire said he would waive ex- tradition and would come back to Phila- delphia immediately with the police. Under Care of Physicians. The girl was an invalid and had been under care of physicians here. She was boarding at the home of Mrs.Stella Ross as the ward of the Soclal Service Department of Jefferson Hospital. She had to undergo treatment every week and when she was kidnaped it was feared this lack of attention might prove fatal. Whether Devonshire was aware of this condition is not known. Alice was playing in front of her home with Helen Ross, 14, when a man asked one of the girls where a woman who had lived next to the Ross home had moved to. The man offered; the girls 50 cents, Helen Ross said, and Alice agreed to go in his car to the house. Aid of Other Cities Asked. ‘When she did not return, Helen told her mother and said she recognized the man as Devonshire, who was a salesman and collector and had frequently been in the neighborhood. When Devonshire failed to return to his home Wednesday night or report at his place of employ- ment yesterday, police notified authori- ties in other cities. Police here got on his trail last night when he sent a telegram to a brother- in-law here asking for money. Roads Are Guarded. ‘The local police immediately notified Chatlotte authorities. Roads entering Charlotte were guarded and two Char- lotte detectives trailed a car they sus- pected -was Devonshire’s. When the driver stopped at a telegraph office he was questioned and admitted his identity. “I thought I was nearly home,” Alice told Detectives Porter and Lee ofiChar- lotte, according to.a statement tele- phoned here. “Every time I asked him he said we would be home soon. I got into his car to show him the new’ home of Mrs. Anna Jenkins, who used to live next door to us. “He didn’t go.near there, but kept on driving all night. I begged him to take me home, and all day yesterday he kept telling me we were only a short distance_away. He drove all the first night, but I slept some. in a while he would leave me in the car and go' somewhere and get some food. We ate in the car. “Then he kept on driving last:night. He didn't hurt me, but I was scared. I didn't know where we were going. He drove into the city and he went to the telegraph office. Then we drove out by the side of a road in the country and slept in the automobile. a “When we started out this morning he told me we would be back home - | soon.” Devonshire’s wife, who is about 20, closed her apartment yesterday and went to her home in Takoma Park, near Washingten, D. C. 'Rggio Prpgr_a;ggs_ Page S0 Every. once; ELLON ON RADI CHAN TOMORROM ‘Treasury Policies” Will Be Topic of Star Forum Address. f Secretary of the Treasury Andrew W. i Mellon will make a significant pro- | nouncement on Treasury policies to- | morrow night in an address direct to the American people through the National Radio Forum and the Nation- wide hookup over the Columbia Broad- | casting system. In the first important speech which he has made since the inauguration of the Hoover administration, Secretary Mellon will go before the microphone of station WMAL at 10 o'clogk to open the series of addresses by cabinet mem- bers in the National Radio Forum ar- ranged each week by The Washington Star. is now serving under his third President, will go into & discussion of the fundamental policies by which he has managed so successfully the Nation's finances for more than eight years. The i,l:’l;m ,of the address is “Treasury Good Speaks April 6. ‘The series of cabinet addresses which will present to the American family, will be continued on su Saturday nights. On April 6 the Na- tional Radio Forum will present Secre- tary of War James W. Good and At- torney General William D.*Mitchell. The forum, which was inaugurated by Senator Willlam E. Borah.of Idaho, and has continued on each Saturday night, has evoked a country-wide re- sponse, judging from the correspond- ence and comment which has been pouring into’the Columbia Broadcasting System and The Washington Star. The series of eabinet addresses, to be opened by the important pronounce- ment of Treasury policies by Secretary Mellon tomorrow right, is expected to bring to the homes of the Nation an intimate insight into Federal affairs, Makes Few Addresses. Secretary Mellon makes few addresses, and this is the first extended discussion he has taken up since he went before the microphone in support of Herbert Hoover" for President. He made only two speeches during the campaign. On presenting the acknowledged “dean” of the Hoover cabinet, the Co- lumbia Broadcasting System will estab- lish a hook-up of radio stations to carry the significant message to all corners of the country, so that every American citizen may hear this deciaration by the man who handles the finances of their own Government. The following stations will carry Mr. Mellon’s mes- sage: WABC, WFAN, WNAC, WEAN, WFBL, WKBW, WCAO, WJAS, WADC, WKRC, WGHP, WMAQ, WOWO, KMOX, KMBC, KOIL, WSPD, WHK, WMAL, WCCO, WISN, KDYL, KYA, KEX, KJR and KGA. U. S. RIVER GUNBOAT HITS ROCKS IN YANGTSE Tutuila Pumps Control Water In- flow—8hip Goes to Shanghai for Repairs. By the Associated Press. HANKOW, China, March 29.—The new American river gunboat Tutuila struck a submerged rock in the gorges of the Upper Yangtse River today near Wanhsien. Two compart- ments were flooded, but ship’s pumps controlled the water inflow. She will g0 _to Shanghai for repairs. The Tutuila has been on patrol duty in the Yangtse. The U. S. S. Monocacy has arrived from Shanghai to observe developments of the situation at Han- kow, where opposition leaders of the Kuomintang party are expecting attack from Nanking forces. . Auto Designer Dies in Crash. DETROIT, March 29 (#).—William Henderson, chief designer of the Due- senberg Motor Car Co., Indianapolis, dled two hours after a car he was driving left the pavement and crashed into a tree here this morning. His com) Indianapolis, was cut and bruised. [ oot e 10}”5‘;““‘“ clearing house, $5,189,- Treasury balance, $425541,924.76. New York clearing house exchange, $2,118,000,000. New York clearing house balance, $218,000,000, I It is understood the Secretary, who | le | every member of the Hoover official | nion, Shannon Brown of | the FEDERAL RESERVE FACING CRISIS IN SPECULATION WAR Controversy Started by Mitchell's Offer of $25,- 000,000 in Call Market. CONGRESS ECHO LIKELY AT SPECIAL SESSION Board Determined to Go to Limit of Powers in Curbing Spcou- lative Credits. By the Associated Prees. NEW YORK, March 29.—Charles E. Mitchell, president of the National City Bank, who was charged by Sen- ator Carter Glass with “vigorously slapping the Federal Reserve Board in the face,” today said this week's credit crisis was passed, but that only another wild stock market would bring a return of Tuesday's chaotic conditions. BY DAVID LAWRENCE. The Federal Reserve Board has i reached the crisis of its career of 15 ars. Originally designed as a pro- tection against money control by Wall Street, the Federal Reserve Board now faces a challenge by the speculators, aided by important banks—and that challenge will be met by drastic action if necessary, to compel conformity to its policies. ‘The board has been disturbed not so much by the action of Charles E. Mitch- ell, president of the National City Bank, in pegging, so to speak, the call money rate at 15 per cent by a willingness to lend $25,000,000, but by the quoted statement of Mr. Mitchell in which he said: “We feel that we have an obliga- tion which is paramount to any Federal Reserve warning or anything else to avert, so far as lies within our power, any dangerous crisis in the market.” | Naturally Mr. Mitchell had to bor- | Tow the $25,000,000 at the Federal Re- 1serve Bank in New York and by agree- |ing to lend this money the New York institution by infercnce acquiesced in his action, for the Pederal Reserve Board was only interested in breaking down speculation and not in forcing a situa- tion in which money could net be had by anybody at any price. Statement Held Unfortanate. The words of Mr. Mitchell, however, | have been studied here for their sig- nificance in relation to the tige of the Federal Reserve Board. fi?mwh- ell is a director of the Federal Reserve Bank of New York, having been elected | by member . To the extent that the board of directors of the Federal Re- serve Bank of New York are presumed to have been acting in harmony with the Federal Reserve Board in Washing- | ton, which has the power of review of } its actions, the statement by Mr. Mitch- ell is regarded as unfortunate in that it may be construed by the banking world as a criticism on his part of the famous Federal Reserve Board warning of February 14. The fact that Mr. Mitchell is presi- dent of a bank with deposits of more than a billion dollars makes the situa- tion one that it is difficult for the Fed- eral Reserve Board here to overlook, though in the interest of harmony and in its desire to avold anything that might appear as a personal issue, it is possible no action will be taken as to this specific incident. The statement by Senator Glass of Virginia, one of the principal authors of the Federal Reserve act, calling for Mr. Mitchell’s resignation as a director of the Federal Reserve Bank of New York, is looked upon as foreshadowing further controversy in Congress when the special session convenes. Being made by Senator Glass, who was so intimately identified with the origin of the Federal Reserve system and who is known to guard zealously the pres- tige of the board, it may have the same effect as if the board itself were to sfi s'omethln. publicly about the in- cident. Not Likely to Raise Issue. It was not what Mr. Mitchell did but what he said that caused discussion in official quarters here, and for that rea- son the board itself is.not likely to raise_an issuegat this time. In fact, Mr. Mitchell's point of view was out- lined at Thursday’s meeting of the di- rectors of the Federal Reserve Bank in New York, which was attended by rep- resentatives of the Federal Reserve Board of Washington. In situations like these the Federal Reserve Board gets in personal touch with the directors of the Federal Re- serve banks in New York and elsewhere in order to save time and get first-hand information and impressions. Co-oper- ation from other money centers has been forthcoming in the last 10 days to such an extent that the board now feels the necessity of preserving the ground that has been gained, and if the Mitchell statement does not start a reversal of sentiment among banks, so to speak, the board will feel that prcg- ress is being made. Determined to Go Limit. There is nevertheless in the back- ground a determination on the part of the board to go the limit of its powers. In discussions thus far no decision has been reached as to the next step. It is known, however, that the board points to the language of the Federal Reserve act, which says rates of dis- count shall be fixed to accommodate tl'(,r‘:;“:;ts; xl:n:.lh.c:nmneme," Is s) category? The board has been advised that ‘r‘yu not. Con- gress, it is asserted, set up a banking system for commercial credits and not for stock market gambling. The rais- ing of the rediscount rate is the normal weapon used, but in & situation like the present, which is abnormal, something more drastic than a mere raising of It e rediscount rate is talked about. is. in a nutshell, the ordering of the Federal Reserve banks and inches to refuse to rediscount at all the paper of member banks when presented to get funds to aid speculation. 1t is difficult, of course, to draw the line between a loan for speculative pur- poses and a commercial credit, but the burden of proof would be on the bank- Ing institution and the mere announce- ;nem of the &rd;: or_regulatién, is is el