Evening Star Newspaper, June 17, 1930, Page 2

STIMSON N BONDS Glass Aroused by German Issue Competition With U. S. Securities. A battle between the Senate and the Btate Department over the assumption by the latter of power to pass upon for- eign securities issues marketed in the United States was in prospect today with the flotation of $100,000.000 of German reparation bonds in this coun- try imminent. A resolution by Senator Glass, Demo- | crat, Virginia, calling upon the Secre- | tary of State to inform the Senate upon what law or power, “express or- im- plied,” the department based “its right either to approve or disapprove in- | vestment. securities” from abroad, was adopted yesterday after the Virginian had assailed what he termed the State Department's supervision of foreign se- curities. State Department Acquiescent. Secretary Stimson announced about 10 days ago he had informed J. P. Mor- gan & Co.. American agent for the Bank of International Settlements, which is floating the loan, that the State De- partntent had no objection to the mar- keting of the bonds in this country. It was pointed out then that the State Department does not give its ap- proval to any security issue, but it re- serves the right to voice objection. This policy was initiated before war debts had been settled. following a con- ference with leading bankers, who agreed not to market foreign securities which were objectionable to the depart- ment. Glass charges the German bonds were coming in competition with Amer- ican securities. “For the last two years,” he asserted, “it _has been exceedingly dificult for States to float loans on the American market. Yet here the State Depart- ment assumes the right to approve for- eign loans which must compete with domestic loans.” MeFadden Fighting Move. Chairman McFadden of the House banking committee, who is strongly to the sale of the German bonds in this country, said he hoped “the Senate has more luck than I did in getting information from the State Department as to its authority to a| prove or disapprove the sale of the securities.” The Pennsylvanian added he was considering holding hearings on the Tesolution he introduced last week to prevent Pederal Reserve Banks and :;Jda.ntl banks from purchasing the MAY HALT BOND TALK. Senate Move May End State Depart- ment Comment, BY DAVID LAWRENCE. Of more than passing importance is the resolution adopted by the United States Senate requesting the Depart- ment of State to explain under what sanction of law. does it “base its right either to approve or disapprove -invest- ment securil offered for sale in the :;Jrfl!y l‘l:lrkf" of l:;e United States ore! vernments, corporations or lndivifl\ll!.l"u issue was raised particularly in connection with the recent announce- ment that the Government of the United States did not disapprove of the German reparations loan, thus implying to many people that it favored the transaction. Senator Glass is not opposed at all to the State Department’s position in this partieular matter, but he does not see what business it is of the American Gov- ernment to say anything about it at all. As & matter of fact, the right of the State Department to approve or disap- prove foreign loans of any character has never been assumed by the department except by implication. The usual course in the past has been not for the depart- ment to approve or disapprove the mer- its of a loan, but simply to say that it had no objection to the flotation on the grounds of public policy. Original Idea Extended. The practice originated with the Harding administration when various | European governments were not dis- to fund their war debts with the nited States, and public opinion in| this country was opposed to the lending of money to foreign countries whose governments were not ready to begin | rmnt of their war debts to America. nformal conferences between New York bankers and the Department of State resulted in an understanding of an entirely voluntary character, backed only by the sanction of public opinion at the time. It provided that, as a mat- ter of courtesy, the investment bankers would in each case notify the Depart- ment of State of loans they intended to float, 50 as to give the department an opportunity of interposing an objection. | No penalty was provided in the event | that the objection of the Department of State was ignored,®ut while the war debt questions remained unseitled not s single instance of disagreement of this kind between the Department of State and investment bankers occurred. Later on, however, the same princi- ple of objecting to forefgn loans on the ground of public policy was extended by the Department of State to cover loans inf for foreign corporations tied up with government monopolies. Her- bert Hoover, as Secretary of Commerce, was the sponsor of this policy, and there were a number of instances of discord between the investment bank- ers and the Department of State, which resulted in at least two cases of total disregard by the bankers of the ob- Jections made by the department. It has always been assumed that, frrespective of the fact that the Depart- ment of State was not operating under the specific authority of any law, it could publicly announce its objections and interfere considerably with the flotation of a loan to American investors. While the bankers at no time sought the moral support of the American Government for their loans, they re- I"'Rd the danger of its moral oppo- lon. Monopoly Loan Fights Rouse Ire. When the Departments of State and Commerce, acting together, were trying to prevent the flotation of loans to for- eign corporations or governments en- gaged in a monopoly in the production or marketing of an essential commodity, on the nd that American consum- ers would be muicted, there was much | discussion of possible legislation specific- ally prohibiting such loans. It was the threat of such legisiation which kept the | investment bankers from kicking over the traces and making public protest against the two departments in ques- tion, though to be sure the murmurings | of the New York financial district against Government sie volling point. The effect of the Senate resolution may be to put an end to the custom al- together, until such time as the Govern- ment feels it is necessary to exert simi- lar power, and in that event it will de- pend upon the acuteness of the ..tuation Whether Congress will authorize the Department of State to pass upon foreign loans. PLANE UP 132 HOURS lo:kl New Re- #City of Chicago fueling Record. CHICAGO, June 17 (#).—The City of Chicago, in which two brothers, John and Kenneth Hunter, are seeking & new 1930 | morning that the engine was not_rmn- interfecence with | ‘vate investments were frequently at| SENATOR HIRAM JOHNSON. Who will speak in the National Radio 30 o'clock as mn opgenent of the London m litnfations treaty. The forum is ar- ranged by The Siar and sponsored by the Columbia Broadcasting System and is heard locally through WMAL. CHICAGO RESOLVES T0 GRUSH GANGDOM Half Dozen Agencies at Work, With Issue Put Squarely Up to Jury. - By the Associated Press. CHICAGO, June 17.—The arm of public indignation which yesterday forced the resignation of Willlam Rus- sell as commissioner of police reached out today for the slayer of Alfred (Jake) Lingle, Tribune reporter, and the fist was clenched to smash gang- dom. Half & dozen public agencies were di- recting new energies foward crushing gang rule, but chief dependence rested with the grand jury, which .was given a special charge by Chief Justice Nor- moyle of the Crimjnal Court to search out the truth concerning Jolitico-gang connectiont and crime prof “You men do your duty,” Judge Nor- moyle told the jurors. “You have noth- r. Gangsters are inherent ngerous only when they run Action Unexpected. ‘The action of Judge Normoyle was entirely unexpected. Asked later what had prompted his action, Judge Nor- moyle said: “Why? A man has been murdered, and as a consequence the police com- missioner and a deputy (Chief of De- tectives John Stege) have resigned at the demand of public and press. I know nothing about this, but I am a law en- forcement officer in charge of the grand jury, and the grand jury functions for just’ such situations. These 23 men have nothing in common with crooks or am sure they will make a p] Job of this.” State’s Attorney John A. Swanson will direct the grand jury inquiry, and evidence will be ‘gathered by his special investigator, Pat Roche. ‘The position of acting police commis- sioner was taken over last night by John H. Alcock, called “the Iron Man,” who has been first deputy commissioner. One of his first acts was the issuance of “Special Order No, 1,” which in effect rescinded .the final order of his predecessor. The retiring commissioner, Just before resigning, made several re- assignments of police officers, including himself and his detective chief, Stege. Aloo:lk'l order canceled these reassign- ments. Special Committee Created. ‘The Association of Commerce yester- day created a special committee to en- large the work undertaken by the “se- cret six,” which has been at work on the crime problem. The political action committee of the Chicago Church Fed- eration insisted upon an expose of any artnership of crime and politics. The city council police committee voted to sift charges of corrupt alliances of po- lice and criminals, acts finding . Dean Shailer Mathews of the Divlnl:r School of the University of Chicago called the killing of Lingle “the apex of a pyramid, 90 per cent of which is still under ground AUTO FIRE IS FATAL TO VIRGINIA GIRL, 18; THREE MEN ARE HELD (Continued Prom First Page) ing under the frent seat, on the other half of which the girl was sitting. Kirby states that he thinks the fu hit the hot manifold pipe and exploded. The leaping flames immediately cnveloped the girl's body. The men with the help of the station operator pulled her through the door with difficulty, strip- ping her burning clothes off her body. Hailing a passing motorist, she was sent | to Emergency Hospital. ‘The garage is operated by Robert Larrick, who was at his home in Wash- ington last night at the time of the cident. The young operator of the 8as tank, Frank Myers, aged 15, of 3512 Tenth street, Washington, stated this ning and that he thought the explosior was due to a spark from a match lighted by one of the boys while the tank was being filled. He said that the two boys had gotten out of the car and were standing one on either side of the machine, that the girl was sitting behind the steering wheel with the hose crossing in front of her through the window on the left. Myers says that last night after the explosion he heard one of the boys berating the other for siriking a match, and this morning on the ground beside the car he found & box of safety matches and &0 unlighted cigarette, Which one of the two boys was ing on the side nearest the 1 could not say, s he knew mel them. The car itself wus not damaged except for burns on the front seat cushion. Kirby stated this morning that he will confer immediately with the assist- ant to the commonwealth’s attorney, | Hugh Marsh, who is acting during the absence on vacation of Commonwealth's | Attorney W. M. Farr, and determine just whether charges will be preferred ainst the men. ENDS LIFE, BLAMING U..S. LOUISVILLE, Ky, June 17 (#).— Harry B. Driver, 72; who had said tha the government “drove me out of a profitable business” by purchasing his dry cleaning plant as part of a site for & new post office here, yesterday shot and killed his wife, Mrs. Mamie E. THE EVENING Methodist Board Makes Plea | to Senate for Enforce- ment Legislation. By the Associated Press. The Senate received a plea from the Southern Methodist Board of Temper- ance today for enactment at this ses- slon of law enforcement legislation re- quested by President Hoover, and a while later was informed that tomorrow it would be presented with a report concerning Bishop James Cannon, jr., chairman of that board. Senator Sheppard, a dry Democrat from Texas, introduced the plea—which was made public previously by Cannon. Will File Report Tomorrow. Chairman Caraway of the lobby com- mittee revealed the committee would re- port tomorrow on the extensive exam- ination it made of the churchman. The committee is not expected to take any stand in its report, which probably will_consist of a transcript of portions of Cannon's testimony. The transcript shows the questions Cannon refused to answer concerning his 1928 anti-Smith activities. Sheppard presented the petition from the church board without comment. Conflicting views of what would fol- low the lobby reports introduction were held by members of the committee. Senator Blaine, Republican, Wisconsin, contended Vice President Curtis was required by law to cite the bishop to the District attorney for possible con- tempt proceedings. Chairman Caraway believed, however, the bishop did not legally refuse to answer questions because the commit- tee ruled it had no right to inquire into his political activities. At least two other members of the committee of five agreed with Caraway. In the event of the Vice President taking no action. it was considered un- likely that any further move would be made against the Southern Methodist churchman. Curtis has declined to comment on his position. ‘The deflance of the lobby commit- tee by Bishop Cannon was made & sub- ject for the attention of the House to- day by Representative Tinkham, Repub- lican, eMassachusetts, who was directly responsible for the appearance of the dry leader before the committee. Tinkham obtained permission to speak late in the day and he planned to re- view the Cannon examination. He charged before the lobby committee that the bishop had obtained $65.300 from E. C. Jameson, New York capi- talist, and that only $17,000 had been reported. ‘The bishop explained he made no re- port of the remainder because it was not required by law. Senator Caraway explained to the Senate he had Intended to present the report today but he was withholding it because of & previous agreement which gave other business priority throughout today's session. Tinkham Makes Attack. Later in the House, Representative Tinkham, a Massachusetts wet, made his expected attack on Cannon, as serting “in the eyes of all honest men. the churchman “will stand convicted” of appropriating to his own uses $48.- 300 that E. C. Jameson, New York capi- talist, gave him for anti-Smith work, ‘Tinkbam, when a witness before the lobby committee, charged Cannon had violated the corrupt practices act by falling to report how he spent the ‘The bishop denled this. Massachusetts Representative said if Cannon’s transactions ‘“would stand the light &f day” he would have testified before the lobby committee without hesitancy. He said the bishop owed an explanation to his church, and added he would not have been ex- onerated at @ recent church conference if 1t had had the facts presented Lo the lobby committee during Cannon's ex- amination. > Tinkham sald Cannon, to divert suspicion aroused by his refusal to an- swer lobby committee questions, had ap- pealed to sectarian prejudice. He con- tinued the bishop charged Roman Cath- olics with conspiring against him. Charges Made by “Episcopalian.” “They were made by me, an copalian,” Tinkham said. Reviewing the circumstances sur- rounding contributions by Jameson to Cannon during the 1928 campaign, Tinkham reiterated charges of lobbying evasion and law violation in connection with the funds. ‘Tinkham said Cannon feared the lobby committee would ask him about his dealings with Kable & Co. and Harry L. Goldhurst, “bucket shop oper- ator.” He added Cannon also feared questions as to why he wanted the money from Jameson in cash and why he instructed Jameson what to report to the committee investigating presi- dential campaign expenditures. Asserting that Cannon appeared be- fore the lobby commitiee voluntarily, Tinkham said his refusal to answer questions ““can give rise only to sinister implications.” GAS CO. PREPARES 10 PER CENT CUT; AWAITS APPROVAL (Continued From First Page.) posed reductions first, Senator Howell said he felt they should at least take that step. The Nebraskan enumerated some of the things which he says the merger bill would enable the company to do. He pointed out first that it would au thorize issue of additional stock, pre ferred or common, in such amounts as the Utllities Commission may approve, with or without par value. Senator Howell said he does not object to pre- ferred stock issues for the purpose of carrying out improvements, but thinks the common stock should remain as at present. Another advantage which the Senator seid the company would get under the bill would be the provision under which stock heretofore issued would be deemed a8 paid up and non-assessable, which provision, the Senator said, would in- clude any stock which may have been issued as stock dividends. Senator Howell said the existing char- ter makes s holders liable for debts of the company and that this would be changed by the bill. He added that the bill also would exempt companies from the La Follette anti-merger amendment, which limite®. the extent to which an oulside corporation could acquire hold- ings in a local utility. At present, the Senator declared, the companies have to cosie to Congress for charter revisions, and this bill would permit changes to be made in the char- ter upon the approval of the Utilities Commission. Senator Howell has an amendment pending, modifying the original bill in several respects, which he will offer in the form of a substitute, whenever the question is taken up in the Senate. Under the Howell amendment the utilities commission would be allowed to authorize the company to issue pre- ferred stock for the purpose of carry- ing on extensions and improvements, but it would have to have a par value of $100 per share. ‘The bill, as reported by the committee, would permit the is- suance of either preferred or common stock, with or without par value. Another change in the Howell sub- stitute affects the section relating to fu- ture changes in the charter. Under the Howell substitute the company Driver, 56, then turned the gun on rofueling endurance flight record, at 2:40 am. today had been aloft 132 Fours—exactly five and onc-half davs Sy Harbor Afrport officials satd the “ino refueled cix tiresqih the last 24 ey himself and committed suicide. ‘The bodies were found by their son, who said his father had been brooding as A result of inactivity. The Federal Government peid him $117,200 for his property. could amend its charter, with the ap- proval of the commission, in order to Provide for the issuance of preferred atock only and for such other changes not inconsistent with the act. The com- mittee hill used brgadsr ferms in deal- ing with amendmerits to the charter, STAR, WA HINGTON, D. ‘The camera caught Calvin Coolidge, former President, as he sat against the over old times with a couple of friends. Il of the gymnasium on commencement day at Amherst College and talked Ambherst is Mr. Coolidge's alma mater. Assoclated Press Photo. TRADES SPURNATS PENNANT CHANCES Swapping of Braxton and Tate for Shires Concludes Series of Barters. (Continued From_First Page.) who boasts a batting record superior to Goslin's, and Alvin Crowder, & sea- soned pitcher of established worth, and capping it all' was the startling shift engineered shortly before the ban on trades became effective last midnight whereby Pitcher Garlana Braxton and Catcher Benny Tate go to the White Sox in return for Arthur (self-styled “The Great”) Shires, & first baseman whose playing ability belies his 23 years. The extent to which the Nationals have been bolstered by these deals, ac- complished within a space of four days, remains to be seen, but fandom gen- erally in the Capital has reacted favor- ably to all three of the transactions and is disposed to regard them as greatly strengthening Walter John- | son’s team for the bitter battle it now is waging with the Athletics, Indians and Yankees, Marris Extra Base Hitter. To the first of the deals there was no divergence of opinion, as Barnes had been of small value to & club al- ready overloaded with left-hand hitters, while Harrls gives promise of proving a decided asset, not only because he is a right-hand batsman, but due to hl.!im"_w’: proclivity for gelting extra bases with | : his blows. The Manush and Crowder for Goslin | LABOR ASKS HOOVER 10 BREAK PASSE Unions Appeal to Him to Urge Passage of Dis- trict Bill. Organized labor of the District ap- | pealed to President Hoover today to in- tervene in the deadlock between the | House and Senate conferees on the 1931 District appropriation bill and use his | influence to have Congress pass the measure before adjournment. This ap- peal was sent to the White House today. The plea was contained in & reso- lution adopted last night by the Cen- tral Labor Union, which represents 65,- 000 organized workers in the District. | The resolution also indorsed the stand | taken by the Senate conferees in hold- ;mg out for a $12,000,000 lump-sum | contribution by the Federal Government | toward the expenses of the District, | pointing out that this sum is nearer an equitable division under existing sul stantive law, which provides for 60-40 basis of fiscal relations. House Members Are Scored. Another resolution was adopted by the union criticizing a “few” members of the House for “tyrannical” abuse of power and urging the organization's executive committee to formulate plans to appeal to constituents of the “offend- ing” members to bring about their de- feat in the coming election. No nimes were mentioned in the resolution, but John B. Colpoys, its author, said he had particular reference to Speaker Longworth and Representa- tives Snell, chairman of the rules com- ‘Tilson, majority leader, and Simmons, chairman of the subcommit- tee on appropriations, transaction put through several hours later Friday also struck & responsive | chord here. Two years ago, when the | Goose was battering all opposing pitch- | ers with such effectiveness he won the | swatting championship, no offer for | him would have been considered, but in view of the slump he encountered last year and his total inability to get start- ed this season fans generally welcomed the acquisition in Manush of a hitter fully his equal, on the face of the bat- ting_averages, and whose capabilities in this respect apparently are unim- paired in addition to a hurler capable of winning 38 games over the stretch | of the last two seasons. | There will be more dissenting votes | cast among supporters of the Griffmen anent the latest of the trio of trades. The passing of Tate means little 0 them, as he was able to approach the | status of a regular catcher in but one | of his half dozen.years of service here, but they have a deservedly high regard for the prowess of Braxton as a relief pltcher and are fearful he will be sorely missed in the role of a rescuer with the local mound corps in view of the fact | it so frequently has needed an emer- gency performer of his attainments, Need First Base Understudy. The Washington management un- | questionably regretted the necessity for letting Braxton go, but it has a poten- tially strong slab staff and took the view it was imperative a_capable un- derstudy be provided for First Baseman Joe Judge, who now is on the side lines | nureing an injury and for whom no sub- stitute was available except Jack Hay: a handy man who is needed for “in- | surance” against forced absence of the other infielders. The element of “color” Washington lost with the passing of Goslin {s more | than offset by the acquisition of Shires, | who In the last two years has furnished | reams of copy for the sports reporters | with swaggering attitude on the field, | bombastic ulterances and generall belligerent conduct which led to a seri of fist fights with the th® manager of the White Sox, Russell Blackburne; number of costly fines imposed by his club and a campaign in the prize ring in which he earned considerable money as well as a severe scolding from Judge Landls, the commissioner of base ball, whose ultimatum ended his career as a professional ringman. This season, under the management of Donie Bush, himself a forceful, two- fisted character, the fiery Texas youth has appeared tamed, his only outbursts coming in the form of “hard playing” on the fleld which resulted in numerous run-ins with opponents, the most not- able of which was a collision which fractured the wrist of Lew Fonseca, Cleveland first baseman, Shires au injury to his back from which he i5 just now recovering. Better Batter Than Fielder. Shires is a big fellow, standing 6 feet 1 inch and welghing more than 190 pounds, who has indicated better abili- Ly us & balsman than as a fielder. He amaessed an average of 341 for 33 games in his first season with the White 8ox, and in 100 games last year batted 312. To date this season he has an average of 254 for 36 games. This mark is far below what he is be- lieved able to accomplish. He will get a chance to improve it starting at Clark Griffith Stadium the day after tomorrow when, strangely enough, his former team will be opposing Wash- ington, and Capital fandom is expected to turn out in droves to see how he and the other new Nationals show up in the struggle they now are making for the title Confessed Embezzler Sentenced. 8T LOUIS, June 17 (#.—Frank L Berryhill, former sales manager and & director of the First Natlonal Co, in- vestment subsidiary of the First Na- tional Bank, today pleaded gullty to and gave | In introducing the resolution, Colpoys, a former president of the union and now editor of the Trade Unionist, its official organ, declared that Longworth, Snell, Tilson and Simmons are all “culpable” for the failure of Congress to pass much needed legislation for the District. “Simmons is & small man,” he said. {“He is temperamentally unfitted to fill the position he holds by reason of long- evity of service. He has made misstat ments both in the committee and on the floor regarding the District's fisca] re- lations with the Federal Government. He has manifest at all times a petulent, intolerant, overbearing and tyrannical attitude where District legislation has been concerned. “Ought to Be Defeated.” “He comes up for election next Fall. He ought not to be allowed to return to Congress. Organized labor through- out the country should battle for the defcat of all such men who put their own stubbornness above the welfare of pital of the Nation and its pub- nts. olution urging the President to intercede in behalf of the District appropriation read as follows: “According to the daily press, it ap- pears that an irreconcilable difference exists in Congress over the qustion of fscal relations governing the mainte- nance of the District of Columbia, which will prevent the passage of the District of Columbia appropriation bill for the year 1931, and “The question which jeopardizes the passage of this bill is the amount of money which should be appropriated as the national share toward the cost of the expense of maintaining the D trict government, the Senate conferees declaring that & falr share to come from the Nation House conferees declare that the sum should be $9,000,000. “The present law governing the fiscal rlation calls for an appropriation on # 60-40 basis. The sum of $12,000,000, while falling short of the amount which should be provided in the existing law, is nearer an equitable division. We, Lhe delegates to the Washington Central Labor Unfon, representing 65,000 mem- bers, indorse the position as taken by the Senate conferees. “Under our existing form of govern- holds & position in the District of Co- lumbia comparable wtih that of a gov- ernor of a State or a mayor of a eity, therefore be it, Resolved “That the secretary be instructed to write to President Hoover asking that he intervene in this deadlock and use his influence in Congress to the end that the Distriet of Columbia appropriation bill as passed by the Senate be enacted into law before this session of Congress adjourns.” ‘The text of the resolution charging members of Cougress with abuse of power, follows: “Under the form of government in the District of Columbia the members | of Congress act as our legislative body. | “Through longevity of service few members of the House of Represent tives have risen to positions of power and influence on important committees. “Instances have occurred where this power has been abused in a tyrannical manner against, the best interests of the future welfare of our city. Therefore, be it resolved “That the executive committee of the Central Labor Union give consideration to formulating plans to appeal to the constituents of the offending members of Congress with a view to bringing about their defeat in the coming elec- ton.” — College to Build Home. DANVILLE, Va., June 17 (Special). —Decision has been made by the build- ing committee of Averett College to build & new $10,000 home for its presi- dent, Dr. J. W. Cammack. Plans call for erection of the residence on the embezzlement and was sentenced to 10 years' imprisonment by Circuit Judge Taylor. Company auditers announced in court the total of his peculations was $605,000, rear campus of the college. Judge J. B. Robinson of Marysville Kana., was called out of bed four times during May to perform marriages, HOUSE HOLDS FIRM ON'D. C. LUMP SUM Continuing Resolution, Carry- ing No Improvements, Is Introduced. Treasury would be | a lump sum of $12,000,000, while the | ment, the President of the United States | (Continued From PFirst Page.) Simmons and also, he said, the Speaker, the floor lender and the chairman of | the rules committee. ! Representative Moore of - Virginia pointed out that there is'at present a | deadlock, and if the attitude of the Senate and House remains unchanged | it is probable that hereafter no appro- | priation bill could be passed, and that| the business of the District would be | under a continuing resolution. | The continuing resolution for support | of the District Government during the | coming fiscal year predicated on the | failure of the District appropriation bill due to the deadlock between the House and Senate on the fiscal relations pro- vision is as follows: ‘Text of Resolution. “That all purposes and objects of ex- penditure under the Government, of the District of Columbia and under other activities chargeable in whole or in part against the revenues of such District, which shall remain unprovided for by appropriation on June 30, 1930, aie hereby extended. and continued for and during the fiscal year 1931 to the same extent, in detail, and under the same conditions, author- ity, restrictions and limitations for the fiscal year 1931 as the same were provided for on account of the fiscal year 1930 in the District of Columbia appropriation act for that fiscal year, and shall include the vocational re- habilitation of disabled residents of the District of Columbia as provided for in the second deficiency act, fiscal ye: 1929, and the construction and equip- ment of high temperature incinerators as provided for in the first deficiency act, fiscal year 1930. “This joint resolution shall not be construed as providing for or authoriz- ing the duplication of any special pay- ment or for the execution of any pur- pose contained in such District of Co- lumbia appropriation act, thal was in- tended to be paid only once or done solely on account of the fiscal year 1930. “For carrying out the purposes of this Joint resolution, any revenue (not in- cluding the proportionate share of the United States in any revenue arising as the result of the expenditure of ap- propriations. made for the fiscal year 1924 and prior fiscal years) now re- quired by law to be credited to the Dis- trict of Columbia and the United States in the same proportion that each con- tributed to the activity or source from whence such’revenue was derived shall be credited wholly to the District of Columbia, and in addition, the sum of $9,000,000 is appropriated, out of any money in the Treasury not otherwise appropriated, to be advanced July 1, 1930, and all the remainder out of the combined revenues of the District of Columbia; provided. that the tax rate in effect in the fiscal year 1930 on real estate and tangible personal property subject to taxation in the District of Co- lumbia shall be continued for the fiscal year 1931.” Moore Urges Study. Representative Moore of Virginia argued that if the present deadlock was continued, with the House and Sen- ate remaining unchanged in their a‘ti- tude, District business in the future would be carried on only under a con- tinuing resolution. He emphasized that the people of the District have no voice in this matter; that they are in the position of an innocent bystander. He suggested that the conferees might reach an agreement to continue the Tump sum of $9,000,000 for the coming vear and that in the meanwhile a com- mission might study and report to Con- gress what a fair contribution from the Federal Treasury should be. Representative Simmons protested his unwillingness to discuss such proposal as is contained in a resolution intro- duced some time ago by Mr. Moore and which Representative Simmons had op- Pposed before the House District commit- tee. Mr. Simmons said this had no part in the present disagreement be- tween the House and the Senate. Mr. Moore insisted that the House ought to strive to put and end to such a con- lroveni over fiscal relations by definite- ly establishing on a basis of fact what is a fair contribution. Minority Leader Garner declared that there is an easy way to settle the mat- ter by having the House make the ap- propriation, permitting the Senate to make its “bluff,” and then at the end of the session pass the bill as framed by the House. He declared that the ones who have encouraged the dead- lock will be the ones to urge ylelding to the House. It al 'S has been that way, he sald, and always will be done that way. He said he felt that they would be hetraying their constituents and would be making the District “a refuge for tax dodgers” to vote other- wise. Representative Moore argued that a gfeat many members of the House do not know what is a correct proportion, and asked “is it not reasonable to have a fact-finding study and determine what is right?” Representative Garner re- plied that he would want to have the membership of the commission making that study limited to members of the House. Representative Moore emphasized that standing behind such a study would be the Commissioners of th: District, | appointed by the President, and the leg- islative committees of both Houses of Congress, so that it could not be justly claimed that this fact-finding commis- sion was stacked. Tilson Backs Simmons. Representative Garner said that he recalled four distinct investigations which hfd disclosed that the District of Columbia is a most favorite spot and that he is opposed to another investi- gation by & commission and that he had faith in'the House appropriations com- mittee study. House Leader Tilson said he desired to break down the claim that this was a lone fight by Representative Simmons Or & one-man proposition. He declared | that Mr. Simmons represents accurately and well the sentiment of the Housa and that tRe Nebraskan had conferred with him as majority leader; that his position had not been arbitrary. but tha | he was insisting on being shown facts that would warrant a change from the | lump sum which has been approved for | the past six years by the House, which | was recommended by the Budget Bu- | reau and by the House commitlee and #pproved by the House itself. Repre- sentative Tilson declared his intention to stand up for the District and said | | e believed that the constituents of ail | | members want them to give the District | &ll that it needs. | |, Minority Leader Garner injected at | this point that when the Speaker re- cently was acting on the commission to | Secure the site for the new House Office | Bullding he found that when the Fed- eral Government desired to purchase land, it had to pay double the assessed valuation. Representative Blanton interrupted with the comment that iIndisputable | proof of the fact that the $9.000.000 eontribution is enough can be found in the present low tax rate, which s sufi- | clent to meet all other expenses of the Distrlet, Griffin Gives Stand. Representative Griffin, Democrat, of New York, a former member of the subcommittee on District appropriations, made it clear that this Is not & question of whether $9,000,000 should be in- Creased, but a question wholly of get- t the truth squarely. On Round Trip Hop WILLIAM 8. BROCK. EDWARD F. SCHLEE. ble question.” Mr. Griffin said that he had gone carefully into the financial complexities of the situation between the Pederal and District governments, and that the one point to be accentuat- ed Is that there is a law on the statute books that the contribution by the Fed- eral Government shall be 40 per cent of the cost of District government and that that law has been evaded. Representative Collins, Democrat, of M\u&lul&p!, challenged Mr. Griffin with the statement that the $9.000,000 pro- vision under the Holman rule is just as much law as the 40 per cent provision Representative Griffin charged that the House is nullifying an act of Con- gress. He declared that no one has ever fixed by careful study what the proportion to be paid by the Federal Government should be, and that this should be placed on a definite scientific ratio. He supported the Moore resolu- tion for a fact-finding study and said that a matter of such importance should not be dominated by a few men in the House. “All I am appealing for,” said Mr. Griffin, “is fair play.” Chairman Snell of the rules com- mittee declared that he desired to dis- abuse the opinions created by news- papers that this is a personal fight by Mr. Sinmfmons, and declared that Mr. Simmons truly and fairly represents the majority of the House and the average American citizen, Snell Wants Fine City. He said his personal intention and desire is to spend all that is necessary to make Washington the finest city in the world, and that,he would ad- vocate assessing the people reasonable taxes and then for the Federal Gov- ernment. to pay whatever else might be needed. He insisted that the people here are paying the lowest tax rate and enjoying greater advantages than else- where. While it is elaimed that Washington is not a business center, that the big- gest and best business in the world is located here. with a steady and increas- ing pay roll. “We are doing all that is fair and we are not going to do any more at the present time,” he in- sisted. Representative Crisp, Democrat, of Georgia expressed admiration and sym- pathy for Mr. Simmons, who, he said, “is fearlessly performing his public duty.” Mr. Crisp reminded his col- leagues that he originally introduced the bill to repeal the act of 1878 pro- viding for the 50-50 proportion in fiscal relations. He reviewed the extension and de- velopment of the city in recent years and said that he is inclined to believe that a $9,000,000 contribution now is too much. Representative Moore imme- diately suggested that since there was disagreement as to whether $9,000,000 is too little or too much it would be only fair to have a fact-finding study to determine what is an absolutely just Federal participation. Representative Cramton, Republican, of Michigan, who acting chairman of the House subcommittee on District appropriations when the $9,000,000 lump sum was adopted, told his colleagues that the House has not been proceeding In an unfriendly manner towards the District, but that recently $300,000,000 for improvement in the National Capital have been authorized.. He declared that his Jump sum plan has worked so well that important public works and im- provements have been carried out with- out increasing the tax rate. Representative Griffin Cramton to tell the House ju: nllllc figure of $9,000,000” was arrived al 3 Representative Frear, Republican, of Wisconsin also took a ‘crack at Wash- ington newspapers by charging them with “browbeating” members of Con- gress. He appealed for an income tax, an inheritance tax and a tax on intan- gible property to be levied and collected in the District of Columba. Wood Praises Simmons. Chairman Wood of the House appro- priations committee declared that Rep- | resentative Simmons is entitled to the commendation of every fair-minded per- son. He described Mr. Simmons’ atti- tude in the conference with the Senate on-the fiscal relations provision as one | of readiness to compromise if they | would give him one reason why the | change should be made. Mr. Wood said, “We are contributing from the Federal Treasury to the District of Co- | lumbia more than is fair, and proof of | that is shown in the tax rate, which is the lowest in any municipality in the | Union, and that to increase the Fed- eral contribution would be to justify a reduction in the tax rate.” He also paid his respects to the Chamber of Com- merce and to all the newspapers for | Advocating that more Federal money be given to the District without regard to the taxpayers of the country. p sy DIES IN 13-STORY FALL New York Man, in Chicago Hotel, Had Only 38 Cents, CHICAGO, June 17 (#).—A man be- lieved to be J. H. Morgan, New York City, either leaped or fell to his death early todayefrom the sixteenth floor of the Y. M. C. A. Hotel, e body was found in a third-floor court. The man had no extra clothing or baggage. and but 38 cents was found in his room. Identification was tenta- tively made through initisls in s hat snd @ regisiration card. — | | Plan Memorial to Carol. ORADEA, Transylvania, Rumania, ‘The question of tax rate is not rele- vant, he insisted, and sald that he had been driven off the subcommittee on Distriet appronriations because he had been worn down “discussing this misera- June 17 (P.—The district council has decided to place & commemorative tab- let the =pot ere Prince Carol lan ed his arrival in Rumania to re- claim the throne. BROCK AND SCHLEE FLIGHT UNDER WAY Hope to Complete Jackson« ville-San Diego Round-Trip Hop in 24 Hours. By the Associated Press. fl JACKSONVILLE BEACH, Fla, June 17.—William 8. Brock and Edward P, Schlee took off at 5:04 (E. 8. T) today for a round-trip flight. to San Diego, Calif. The start was without incident, their monoplane skimming down the beach for half a mile before rising and head- ing into the West. Brock and Schiee, who carried 450 | gallons of gasoline, hoped to reach San Diego, a distance of 2,112 miles, and return to Jacksinville Beach in 24 to 30 hours. | Overcast weather prevailed at the take-off, and moderate headwinds and showers were predicted along the route of the flight. Three records for coast-to-coast trips now are held by Capt. Frank Hawks. These are 19 hours 10 minutes for the East-West hop and 17 hours 38 minutes for the West to East jump and 44 hours for elapsed time, but the transconti- nental route from Jacksonville Beach to San Diego is about 400 miles shorter than_the distance between New York and Los Angeles, which was covered by Capt. Hawks. The stream-lined monoplane of the famous pair is radio equipped and the fiyers expected to establish communica~ tions with Dallas, Fort Worth, Clovis, Albuquerque, Winslow and Los Angeles to obtain weather forecasts and to re- ort the progress of their flight. Call etters for the ship are KHILO and broadcasting will be done on a frequency of 457 kilocycles. ¢ SIMMONS UNHOPEFUL PAY BILL WILL PASS Emphasizes Amounts Involved in Two Amendments Under Debate in Conference. Chairman Simmons of the House sub- committee on District appropriations te not at all optimistic that the police and firemen's pay increase bill will be saved from the debacle in the closing jam of legisiation, as a result of his conference ' late yesterday with representatives of police and firemen who previously had conferred with members of the Senate District committee. However, another conference is to be held today. It was emphasized by Representative Simmons today that $230,000 over (s two-year perlod and $00,000 a year are involved in the two amendments under debate in the conference yesterday, which he considers a matter of extreme importance for the chajrman of the gub-~ committee on District appropriations to | negotiate upon. The step-up for in- increases to privates in the Police and Fire Departments involve, he sa $105,000 the first vear and $130,000 the second year, while the retirement amendment involves $90,000 per year. FORMER SMITH CO. PRESIDENT QUIZZED IN DONALDSON CASE (Continued Prom Pirst Page) of the construction company, did call for any legal services on his that Donaldson was not serving s capacity as a Iwyer. Robertson also tesiified that was nothing concealed or hidden al the transactions with Donaldson, that he regarded them as business deals. Admits Phrase Omlitted. Questioned by Justice Frederick Side dons regarding the deleting from 0!‘ contract of the term “legal services, Robertson said that this phrase wag omitted after both he and Donaldsos had agreed that the services to be rene dered by the latter were not of & legal character. He also said that he knew Donald- son's law firm had represented the Smith Co., and that he had no objection to this, ~ Mr. Robertson said he understood clearly that his firm was paying Mr. Donaldson $100,000 to * his influ- ence with the Smith Co." but that he neither knew nor inquired as to the ex= act natyre of the service to be rendered. He insisted, however, that the subject of + Donaldson's employment was first opened by the former bank official and not by himself. On cross-examination Henry testified that G. Bryan Pitts, at that time chair- man of the Smith company board of directors, was not_favorably inclined toward the Boyle-Robertson company. He said that Pitts had been'involved in a controversy with officials of the cone« struction company over a $50,000 com- mission trom the refinancing in 1921 of the Roosevelt Hotel. “Cannot Deny Donaldson Request.” He also said he could not deny that Donaldson had asked him to favor the Boyle-Robertson company in che mate ter of the contracts, In the absence from the city of Pitts, t was agreed among counsel to submit) a transcript of testimony relative to the Boyle-Rabertson Co. given by him recently before the referee in bank- ruptey. In substance, Pitts' testimony was that he did not know Donaldson was receiving fees in connection with the award of contracts from the Boyle- Robertson Co. and that Henry seemed surprised when he informed him of this fact. . Robertson Testifies. Robertson testified on_direct examis nation yesterday that Donaldson ap= proached him regarding the contragt! fees, and that the former banker made all the suggestions relative to the nego- tiation. Donaldson told Robertson, according to the latter's testimony, that the con= struction company could not the ract to build the athedral Man- slons Apartment in Pittsburgh without his assistance, A An effort by Robertson to tell of the Interpretation he and his oclates placed on this statement was barred by the court, but he did say that prior to Donaldson's intervention his company already had agreed with the Smith Co. on a contract price. He said he thought his company could have secured the contract without Donaldson’s aid. FIVE DIE IN STORMS Violent Rain Takes H’—!l\'y Toll in Property in France. PARIS, June 17 (#)-—Five persons were killed and considerable property damaged by violent rainstorms in vari- ous parts of France yesterday. A wall of water 12 feet high swept the outskirts of Bar de Luc, drowning & woman and & child. Several houses in surrounding villages were crushed by the impact of the wave. ‘There was fear farm and crop dam- age ultimately would be heavy since the Weather Bureau foresaw continuation of; the bad weather, which began a weely ago.