Evening Star Newspaper, September 22, 1930, Page 5

Repair Parts for Hot Water Boilers Fries, Beall & Sharp 734 10th St. N.W, Por 30 and General Manager Krieg's Exp is NOW In business at 904 10th St. N.W. FURNITURE RENTING OFFICE FURNITURE 53 GIGESLNW Posing 1s an art that calls for beauty of form and feature, and a sym- pathetic understanding of the character portrayed. Te be a model laundry fa the constant aim of the Home. and that end s Dractically _achieved. An uaderstanding of our cus- tomer's wants in the way of service efficient work INDICAT!ONB point to a severe Winter. Before it is too late, give your roof a coat of Metallic Roof Paint, and keep your walls and ceil- ings snug and dry during the bad weather days. 607-609 C St. Telephone Metropol 7th St. & La. Ave. N.W. 64th Issue of Stock Now Open hllh:fl'fi:' Money loaned to members on eu‘y‘-uglllypay,nh James E. Connelly Jn'—l.n- to h * PHILADELPHIA * NEW YORK THE Ludington Line offers switt. 4 fransportation to the busy execut) o Philadeiphis. 1 to Guation, do business in New Y and be home the same day Wash. & N. Y. C. (Pa. St e | Wash. & Newark Airport. o | Round trip Washinston Airport (approximately r: Puilman) - FISH ORDERS PROBE OF SOVIET WHEAT House Communist Committee . Calls New York Brokers. Hyde Delays Action. (Continued From First Page.) Secretary Hyde upon the exchanges themselves, but he said it was his duty to ses that American institutions were regulated to prevent them. Before Jeaving yesterday on a brief trip to Michigan, Secretary Hyde sald investigation - of the Russian wheat transactions showed a total of 7,500,- 090 bushels had been sold short during a period of four days by the All Russian Textile Syndicate. During the period, he sald, wheat prices were depressed 5 cents, Further Probe Planned. He indicatsd further investigation would be made of the Russian deals by the department on the strength of a statement by E. V. Belitzky, president of the textile syndicate, that the opera- tions had extended over a period of months, Commenting on the claim that the short, sales constituted legitimate hedg- ing on cash sales in other markets, Hyde was sharply critical of Russian exportation of wheat at a time when that government, he said, “is rationing its e and doling out food on food car “It is not my province,” he added, “to pass judgment upon policies of a foreign government. If they elect to sell wheat abroad at a time when they find it necessary to ration their own people, and to shoot men for forging food cards, that is their business. Nor, is it within my power to discern their motives in bearing American markets. “But it is my province and my duty to expose such transactions and to in- sist that American institutions be so regulated as to make such transactions ry on their own GOVERNMENT SWHEAT DEAL CASE| REST ON ONE SHORT CLAUSE Law Provides Specific Punitive Measures in Event Exchange Fails to Prevent Manipulation. BY REX COLLIER. The whole case of the Government vs. the Chicago Board of Trade hinges on the interpretation of a small clause in the lengthy grain futures act of 1922, providing for ‘“prevention of manipulation of prices” on grain ex- changes. ‘The case of the United States Gov- ernment vs. the Russlan government is not so clear cut. In fact, it is doubt- ful that, beyond the ethics of the deal, a case exists at all. the inquiry to be made by the House Committee on Communist activities in America may put a different -complex- ion on the matter. The law is specific as to punitive measures which may be taken against the Chicago Board of Trade or any other grain pit in the event charges of fallure to prevent manipulation of prices are sustained. But observers here declare that proving manipulation no easy matter, Mere proof of “hedging” operations in connection with grain futures is not sufficient, for specu- lation of this type is not prohibited by law. Can Suspend Exchange. The grain futures act provides for a commission composed of the Secretaries of Agriculture and Commerce and the Attorney General to take drastic action against exchanges guilty of non-com- pliance with the law. This commis- sion is empowered to suspend the license of any exchange for six months or to revoke it altogether. It is sald these penalties never have been invoked. Before the license of the Chicago Board of Trade could be revoked in the present case the Government would have to show that in contracting to sell short 5,000,000 bushels of wheat the Russians were not indulging in an ap- proved hedge to insure themselves against loss in a cash transaction else- will have sufficient foresight and public spirit to make such changes in their rules as may be necessary.” May Visit Chicago. Hyde sald the Russian sales probably were not responsible for all of the 5- cent drop during the four days studied. He maintained, however, that they con- tributed greatly to a “bear psychology” which depressed “a market which whs trying to rise.” The Secrettary may ex- tend his trip to Chicago to confer some time this week with o:fficials of the Board of Trade. In a formal statement yesterday the cabinet member quoted = Belitzky as saying that “Mr. Hyde's estimate of 5,000,000 bushels as the amount of So- viet Russia’s short sales as ‘a little ex- aggerated.’ ” “That estimate was obtained from Mr. Belitzky's own company,” continued. “It has proved to be, as he says, incorrect. Our investigations al- Xeady show that, on four days, short sales by the Soviet government, through three brokers, amounted to over 7,500,- 000 bushels of wheat. Thus, actual sales already uncovered overrun Mr. Belitzky's estimate by a little over 50 per_cent. “It is strange that the president of the All-Russian Textile Syndicate does not know within 2,500,000 bushels how much wheat he has actually sold.” ir sales were confined to the two weeks and that the ch ck-up covered only that . Chicago market due to from 50,000,000 to 60,000,000 a day. of prices during e Tour Have:soversd four covered by the sales so far identified” Hyde said. “Those four days are September 8, 9, 10 and 11. On September 8 May wheat opened on Chicago at 991, or ll’r,ll‘. cents above :he pr!fl&us eéose The ice dropped e day and closed at 96%, or on the bottom and down 27% cents, During the four days the market on May wheat from the opening of 99% to the c on September 11 at 94ls, a decline of 5 cents. Comparable declines were mregmmmmmozm'hmm- res. “The sales by Soviet Russia were probably not responsible for'all of this I do say that such sales, added to the other bear factors, contributed greatly to a bear psychology which de- pressed the market. It is evident that something was depressing & market which was trying to rise. Cannot Make Deliveries. “This whole matter presents several unusual aspects. Here is a foreign gov- ernment selling wheat short in a mar- ket to which it can never, under any possibility, make delivery. Preight and where, but were, in fact, uektngnm rul'ely speculative coup for some proved selfish or ulterior purpose. If this could be proved—and present information in the possession of the Government does not appear to be suf- ficient—the next step would be to show that in permitting this manipulation the Chicago Board of Trade-had failed to comply with the terms of its Fed- eral license, which call for promulga- tion by each exchange of proper rules and regulations - to preclude unlawful speculation. b Ag T Secretary of ulture Hyde staf that the inquiry condueted by the De- partment of Agriculture was limited by law and that broader ramifications of the case, if there are any, will be investigated by the committee of which Representative Hamilton Fish of New York is chairman. This committee has been delving into Communist activities in this country. Chairman Fish and his colleagues will seek to learn if there actually was an “ulterior” motive behind the Rusisan wheat transactions in Chicago—if the market was “ma- nipulated” with the view of depressing grain prices and spreading discontent among.the American people. Could Bar Syndicate. Another possibility, in the event manipulation by the All-Russian Textile Syndicate could be established, would be a ban on further wheat dnung in regime Tho fll‘r} e, e gra act invests the Government's three-sided commission with ample au- t.hnn& to bar manipulators from the mar] The Russians readily agmit the short sales charged by Secretary Hyde, but counter with the claim that the mar- ginal trading best circles. Russia, it is claimed by its agents, merely wished to insure itself against possible losses in the Liverpool market by marginal profit on & possible bear market in this country. It's just like betting both ways on the Athletics to win the world series. If they lose, you lose on one bet and win on the"otl;er. Thereku mofiey com- out of your pocke! none go- ‘lfi: in, either, for one bet offsets the other. The Russians say that, even conced- ing Becretary Hyde's figures to be cor- rect, the short sale of 5,000,000 bushels of Russian wheat in the Chicago pit could not affect a market in which the ‘The outcome of | daily turnover of sales totals many times that amount. ‘To this Mr. Hyde counters with a chart showing that the wheat market was on the upgrade on the first of the three days on which the Russian con- tracts were placed. The price of wheat immediately fell off to a low closing mark that day, opened and closed still lower the next and sank yet lower on the third day. Cites Bear Psychology. “That is the best answer to the Rus- sian claim that their dealings were so &mall relatively as not to affect prices,” Mr. Hyde states. “I do not say that the 5,000,000 or so bushels, taken alone, caused the drop, but I do say that the short selling was the chief contributing factor. Bear psychology is a strange thing. A bear movement need not be great at the outset to spread an epi- demic of bear psychology and to create a general depression of prices. The Russians come back with the assertion that other traders handle deals as large and larger than that complained of by Mr. Hyde, and that nothing is said of it. The Department of Agriculture meets this with the statement that “here is not a private dealer, but a foreign gov- ernment engaged in short selling of wheat in the American market when its own people are wanting for food.” If this was a legitimate hedging opera- tion, it is argued, Russia must be ready to deliver 5,000,000 bushels of wheat here in December—and, besides, must actually deliver that amount at Liver | pool or some other market in a casl | transaction. Yet, it is recalled, the Russian people are being rationed, with white bread being distributed only to children under 10. Burden Rests With Board. The case against the Russian govern- ment, therefore, would appear to be one of “international ethics,” on the basis of the Government's present attitude. It is a case presenting what Hyde, after conference with President Hoover, characterized as “a new ques- tion of public policy.” As for the case against the Chicago Board of Trade, Uncle Sam has as- sumed the position that the burden of proof rests upen the defendant. It Justifies this attitude by reminding the board that its Federal license makes it compulsory for the board—not the Government—to “take proper steps to prevent price manipulation. In short, it would seem that the Gov- ernment has called on the Chicago. Board of Trade to “show cause why its Federal license should not be revoked,” although the suggestion has not been put so bluntly as yet. “We are giving the board a chance to clear its deck,” Mr. Hyde explains. “Any future action by the Government must await the board’s own showing in EQUAL RIGHTS’ GROUP FORMS NEW COUNCIL Undaunted by their failure thus far tb obtain the allegiance of all nations to an equal rights treaty, feminists in the United States and other countries haye formed the Equal Rights Interna- tional, & new group with headquarters in_Geneva. The organization will work for equal rights for women throughout the world b{ endeavoring to obtain the allegiance of all the nations to a document of which the major article provides that upon ratification “men and women shall have eqnal rights throughout the territory subject to their respective Jurisdictions.” Miss Alice Paul of New Jersey, a member of the national board of the Natlonal Woman's Party, has been a named member of the new group’s in- ternational council. b RITES FOR MRS. LYNN. LAUSANNE, Switzerland, September 22 (#).—A memorial service was held Saturday for Mrs. Katherine Evans Lynn of Philadelphia and Washington, artist, who died at Montreux Thursday from the effects of @ fall. Her body will be cremated and the ashes burled at Baltimore, Buy Your Home the Easier, Quicker Way— The Way of Our Loan Plan! CHARGES BY HYDE MAY STIR CONGRESS Grain Market Procedure and Diplomatic Relations Promise Debate. BY DAVID LAWRENCE. Although there is no law by which the Russian syndicate speculating in wheat can be reached, the controversy that has arisen between Secretary Hyde of the Dej t of Agriculture and the Soviets is likely to have some far- reaching consequences in a diplomatic sense, Some of the Western Senators have been getting more and more friendly to the idea of the recognition of Soviet Russia, and some of them have been open in their admiration of the prog- ress made by the Russians. American Senators, particularly from the West, have been visiting Russia. The issue raised by Secretary Hyde puts the ad- ministration and these Western Sena- tors in direct conflict on the attitude the United States should pursue toward Russia, and makes the farmer much more interested in ‘the debate than when it conoerns export trade in manu- factured products. Blame for Decline. ‘The price of wheat has been steadily falling and 1t is not unusual for the farmer. to blame the speculators for | Will depressing prices. It is unusual, how- ever, for the Government, itself to blame speculators. So in this case, of course, the charge is not made against specu- lation as such, but the short selling of wheat by the Russians when there was no possible way they could bring their wheat to America over the tariff wall of 42 cents and sell it at the prices that would be necessary under such circumstances. Some of the Western Senators are attacking Secretary Hyde's announce ment on the ground that the American Government speculation by buying wheat thron the Fed Farm Board, or that the amounts ht by the Russians were too cant in quantity to affect price. Some grain mm are saying that the administration is search- :,nr{ulo; :]x‘\ :Iflzl because of the low of 3 No matter what the future debate may reveal, the fact remains that Sec- retary Hyde has tackled something far more: understandable to the American farmer than the complex operations of the Farm Board. For years the farmer has been agitating against trading in future or harmful speculation and dur- ing the last session of Congress the cnr;w-y bl'li. which sought to ;entflgz such operations, was opposed by the administration. The difficulty, of course, is in finding out just how fo regulate future operations ‘and yet provide an exchange for the sale of wheat. Responsibility Involved. The Department of Agriculture feels it has uncovered a serious situation in that it belleves the Chicago Board of Trade should always be in a position to know whether those who sre selling short can actually deliver. When Congress reconvenes there will be renewed agitation for a law to regu- late further the grain exchanges, and no doubt the Secretary of Agriculture will be asked whether his experience in the Rusian controversy indicates the need of a new law. Meanwhile the hope is expressed in official quarters here that the Board of Trade will :\hnke a thormhwinvemntfion and take 9 proper steps to prevent a recurrence of incident. This clash between the tions of <, and the bring any recognition by the Un'f't‘:dmmlm o lon of Soviet Russia. (Gopyright, 1930.) Lily Wisliceniiis, & prominent Geerman sculptress, has just completed a statue of Helene » the Olympic fencing champion. Son Buying cheap, ordinary window shades economy. shades is to get the best. crack, sag or fray, without damage “t Sure, we'll send could have stopped the | sound BUSINESS LEADERS BUYING FAR AHEAD Lamont Reports Low Com- modity Prices Causes Pur- chases of Raw Materials. By the Associated Press. Lamont said today there of industry are buying raw materials far ahead of current consumption rates. ‘The Commerce Department head commented the movement was a natu- ral r!ufioodx:" to l,'I’l,‘he present low level of commodity prices. “It is perfectly clear.” he added, “that business on the whole has ceased a marked decline which was character- istic of a number of earlier months and there are some distinctly -encouraging features. The most encouraging aspects are the growth of export trade as re- vealed by the August statistics and getgmhmg’ckmg up in retail trade country. “The increase of exports during Au- gust was more than is customary at this season. The gain already mani- fested in retafl trade is more thas usually occurs at this season. “Moreover, the stocks of retail stores are exceptionally -low, and there is good reason to believe that their purchases from manufacturers and wholesalers increase materials.” As to the purchase of raw materials by industry, Lamont said the extra buying was beipg done entirely without organization not because of any Government pressure or soliei- tation. “Though there have been one or two conferences as to details of raw ma- terial buying at the instance of indus- trialists themselves,” he expiained, “the Government is not in any way respon- siple. Of course, every good executive knows more about his than any one else possibly can know, and told that ! ped& nl‘z? ot 8 low commodity prices represents a signal for intelli- gent buying.” INDIAN WOMAN JAILED Others Connected With Journal Sentenced’ at Bombay. BOMBAY, India, September 22 (&), ~—Mrs. Rama_Baik: r, president of the Bombay War Council of the All India National Congress, was sentenced today to three months' simple im- gnmnmenc after conviction and arrest aturday on charges of publishing the congress bulletin without ayshority, A 19-year-old M edan 1 editor of the bulletin received a l!mfi’:r sentence. Male members of the war council were assessed four months’ rig- orous imprisonment, e FIRST TRUST LOANS on Improved D. C. Property Prevailing Rates of Interest Prompt Service Since 1890 WALTER A. BROWN 1400 H St. N.W. Nat’l 1652 Regular Delivery Omlw,%oloflmmun ruatm Star every day. The great ma- Jority have the paj delivered ly every e day morning at a cost of cents daily and 5 cents Sunday. If you are not taking advan- of this service at low cost, National now and service will start thi 5000 tomorrow. is mot he only real way to save on your window Landers Washade is one of the finest shade fabrics on the market. wear ordinary shades time and again. It will out- It will not and may be scrubbed frequently finiah. Sy Free Parking Space- for- Customers Autos—E St. Between 6th and 7tk £ THE HECHT CO. F Street at 7th Same Man! Same Dog! R S Vastly Better WORSTED-TEX I tariff absolutely forbid delivery. q;’rg:,u th;:; representatives ;y, is a t] iging operation, but they d Newark Airport. fave Washington Airgort, svers hour | 40 TOU Seem to know by 50 per cent 8 AM. to 5 P.M. daily. Tickets | NOW many bushels they are 3 road,” Western Union | “Not the least striking factor of these Sizguria. unique operations is the fact that, so The Ludington Line far from having wheat to sell, and thus R SR the Russian government is WASHINGTON AIRWAY CORP No finer method—none with more dis- tinct advantages to the borrower—Is operated anywhere in the whole coun- - Our members number among the finest families in Washington—families Who purchased their homes through us. Open Daily, 9 to &, Saturdays, Until Noon NAtional 1381 NATIONAL PERMANENT BUILDING ASSOCIATION 949 NINTH ST, NW. Just below New York Ave. Organized 1890 Under Supervision of U. S. Treasury stoincludes, bus fare betw SUIT hedge, rationing its people and doling out food on food cards. “No white bread is available to Rus- sians except to children under 10 years of age. Industrial workers may have from one-half to three-fourths pound ollrye bniul ;;le'r “yt'l their dm%r:': only one-fourth pound each per 5 No butter is available except to chil- dren, and only one-eighth of a pound per week to them.” BOARD CALLS MEETING. REAL ESTATE Way to Hold Lower “FALSE TEETH | Do Firmly in Place false teeth annoy and bother by dropping and slipping when you | eat, talk or laugh? Just sprinkle a little Fasteeth on your plates. This | new, tasteless powder holds teeth firm and comfortable. No gummy, gooey, pasty taste. Makes breath pleasant. Get Fasteeth today at Lig- gett's, Peoples, or any other drug | store.—Advertisemen phscint mass comen Satisfy.. """Are You? Session Today to Investigate Operations of Russians, CHICAGO, September 22 (#)— Joseph W. Badenoch. chairman of the Business Conduct Committee of the Chicago Board of Trade, announced last = |night that the board will sit at 3 p.m. today for a “thorough and careful” investigation of Russian wheat opera- tions in the Chicago pit. 5 Badenoch, who returned today from | [ a vacation in Wisconsin, said that his committee had had the situation under consideration for a week or more, He withheld comment until after the meeting. Interest in Russian trading here was stirred Friday by the publication of a telegram from Secretary of Agriculture Hyde to John A. Bunneli, president of the board, in which the Secretary said an inguiry had established beyond all question of doubt that the Soviet gov- | ernment had been a heavy short seller | of wheat in Chicago. Russian opera- | | tions, the Secretary said, had had the | effect of “manipulating the price down- | ward against every farmer who has sold his wheat since the short sales were | executed.” |, Members of the Board of Trade saia { that the grain markets are open to the | world and tiat the Government should not place the responsibility on the ex- change for setting prices or manipu~ lating thenr. It is for the Governme: to determine the Soviets' status, thes) | various members believed. The Business Conduct Committe consists, in addition to Badenoch, ol H. H. Lobdell, Lester E. Perrin, A. W. Mansfield and Joseph Jackson. Man Killed, Pilot Hurt in Crash. DANSVILLE, N. Y., September 22 (#), —Burton G. Thompson, 52, of this vil- lage, was fatally injured yesterday when a monoplane piloted by Arthur C. Lohman of Rochester got out of con- trol and crashed near Du;nvlule airport. ‘Thompson died in a hospital. 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