Evening Star Newspaper, September 30, 1930, Page 2

A=2—as - THE EVENING = STAR, _— PROBEBY CONGRESS SEEN N L CHARGE Accuser of Wilbur Declares | He Is Ready to Appear Before Committee. (Continued From First Page.) ordered mli in July-to come to Wash- ington to take charge of the very work he criticized. The Secretary said Kelley had never reported to him for this as- &i ent, but had worked in the Land ce here for about a month after August 5, during Wilbur's absence. enting on Wilbur's statement, Kelley said much of it was correct, but that & great deal of it “requires clarifi- Full Text of Statement. full text of the statement issued at''the Department of the Interior foliows: “Secretary Wilbur stated today (Sep- tember 29) that the resignation of Mr. Ralph Kelley trom the General Land Office, accompanied by a general letter | criticizing the department’s administra- tion of oil shale lands, had come as & surprise in view of the fact that Mr. | Kelley, on July 7, was ordered by the Secretary to Washington from Denver to take charge of this very work, and | has not yet reported to the Secretary. | His offer of resignation first reached | Secretary Wilbur through the news- pea, i ‘He Te) d for duty at the General Land about August 5 and worked appraximately a month, during the Sec- Tetary’s absence. Secretary Wilbur has declined to accept the resignation in view of the seriousness of the charges made and has directed Mr. Kelley to] immediately file the names of the com- | panies referred to in his letter with the dates and nature of the transactions mentioned. Mr. Keliey has been ® nded. > | was stated at the Deparfment | that no leases for oil shale have &m issued under ' this administration. he President’s oil conservation policy was carried into effect by order of the De- partment on March 13, 1929, as to both oil and , although oil shale has only a potential value until some eco- nomical process for extracting the oll is discovered. “However, the Secretary's discretion to refuse to issue leases does der the law, extend to claims located under the old mining laws before the ‘mineral Jeasing act came into effect, in 1920. The mineral leasing act left in- tact such claims so long as they were in accordance with the for- er law. “Prior to 1920 several thousands of these claims had been located in Colo- | rado, Utah and Wyoming, covering in excess of 3,000,000 acres. The depart- ment, under Secre! Work and Secre- tary Wilbur, followed the policy of in- isting on performance by these locators of $100 assessment work per year on p-aflgmor defaulting their claims. It was ent’s construction of ‘the | have had: Court Reverses Decision, jupreme Court, in decicing the ersed a decision by the de- ‘The t had held an shale location was forfeited ‘Government for failure to do as- t , even though work had been resumed before the forfeiture was claimed. The Supreme Court decision required the wi wal of the depart- ment's adverse action t & consid- erable number of a] vol approximately 9,1 wfi:o\uh to ;unt&nmme::uquenee of the Supreme 5 3 because the adverse Krush- uestion of the right to declare these claims forfeited if such forfeiture was demanded before the lo- cator had resumed his assessment work, Secretary Wilbur, immediately after the Supreme Court decision came down, directed that action be taken all claims then in default upon h work had not yet been resumed. ly, practically every available e General Land Office field b ] g® g ¥ ! i man in ring season e]lla:n n:: await Ad]\ld:cl- tion. In addi verse proceedings ‘were directed against 3,081 “other oil shale placer locations. “Of this number, 2,078 have been ad- Judicated as null and void by.the de- ent after notices were served on elaimants of default, in assessment and failure to resume work. the 5,700 ofl shale claims that have been there are included about 912,000 acres, “‘!nl‘tn'h‘zeh 3,081 fidl!l:.nll claims proceedings have been m‘{l‘mm, approximately 492,960 acres, making s total of 1,404,960 acres involved in such claims against which challenge issued on the orders of Becretary “Claims Wilbur. have been allowed to go to patent only in cases where the Krush- nie decision declared the rights of the claimants still in good standing and then only after carefyl field examina. tion as to compliance with the law’ requirement of $500 worth of develop- ment work. The department has A= tuted charges of ult in assessment. ‘work against 60 applications for patent and charges of insufficient patent ex- res against 137 claims. One and seventy-four claims now up for patent have been rejected by the department on the basis of lack of m’.lth on the part of the locators. challenged patent applications have not yet been adjudicated. Contest Right to Challenge. “The right of the department to chal- | Wuom. as well as patent appli- catlons, for failure to do assessment work has been vigorously denied by oll shale claimants. Secretary Wilbur, however, has declined to recede from the requirement that such work be done and there are now pending in the de- partment test cases which the locators asserted they plan to take into court. “Bills were introduced in -the ‘House at the last session: (H. R. 3754, H. R. 12902, H. R. 131191) to compel mod fication of the conservation policy re- specting oil shale. Secretary. Wilbur appeared in opposition to the legisla- tion and in favor of conservation. Hea: mm ail three’ bills have been pub- d. None of these bills was enacted. “The majority of oil shale claims stand in the name of individuals or as- Iflell!kml‘ ,«:‘lc 1‘“““‘1“-{:\' l.;nn.d;n up largely of al people e me- fllrl'!: vicinity. Whether so-called large oil companies purchase these claims after patent is a matter over which the department has no informa- tion_or control. : | alleged stock market speculations. '0( the whole oil shale question.” p-xr:ment of the Interior, follows in full it to | Bishop James Cannon, jr., (right South photographed upon his arrival in charges preferred by four elders of his * BY BISHOP CANNON Churchman, in Brief Talk on| Arrival, Refuses to Discuss Recent Charges. Bishop James Cannon, jr., Methodist Episcopal Church Soutn succeeded in eluding newspaper men today, following the spirited press re- oeption accorded him last night at Union Station on his return with Mrs, Cannon from Brazil. Last night reporters who greeted him at the station were acvised he had “nothing to say” regarding the charges brought against him by four traveling elders of his church, and today the newspaper men could not even learn his whereabouts, At his office in the Bliss Building, near Capitol Hill, it was sald his place of residence was not known and that he was not expected to appear at his desk today. Eugene L. Crawford, gen- eral secretary in charge of the bishop's office,s said he had not heard from ) of the Methodist Episcopal Church New York from Brazil. He will answer church, supposedly growing out of his P. Photo. to issue leases, in accordance with the | general oil conservation policy, and in- | sisting on strict compliance with the | old mining laws by locators claiming the benefit of those laws, will continue. So much of the field work. of posting as is not completed this Summer will be carried on during the next open season until all defaulted claims ve posted. “Statutory rights must necessarily be lized wherever they are shown. Applicants for patent dissatisfied with the department's action will be afforded every opportunity to prove their cases in court. Secretary Wilbur stated that he uld welcome the fullest investigation Text of Kelley’s Letter. Mr. Kelley's letter of resignation, dated September 28, as received at the De- “My Dear Mr. Secretary: For more than 25 years I have been connected with - the Department of the Interior engaged in field work, and for the past six years as chief of Field Division of the United States General Land Office, with headquarters at Denver, Colo., I t charge of nt ac: tivities of oil companies ed in 5{1 tematic efforts to obtain title by viol tion of the United States mining laws an immense oil fleld upon the public lands of the United States in Colorado. “The public may not know that there is situa upon the public domain in Western Colorado an immense ofl re- serve embracing an area of approxi- mately 800,000 acres, in which the oll oceurs in a rock called shale. “The amount of commerclally re- coverable ofl in this field is so stupendous as to be almost unbelievable. Accordis to conservative estimates of the Uni State Geological Survey, and other au- thoritles, this ol fleld contains more than 40,000,000,000 barrels of Retkoleum. of a potentis! value, even at the present Jow price of crude oil at around $1 a | barrel, in excess of $40,000,000,000, equal to about one-tenth of the entire wealth of the United States. “This is the huge prize to which the large oll interests are endeavoring to secure titles by fraud and failure to comply with the requirements of the Unit States mining laws. These ofl interests are thoroughly organized and act concertedly in bringing pressure to bear uzn the Department of the In- terior induce it to give them these valuable ofl lands, but to which they are not rightfully entitled. “Among those in this combination are sevi of the very concerns whose fraudulent practices have so recently been in_the investigations and trials of former Secretary of. the Interior Albert B, Fall, Harry P. Sinclair and others, Activities of Companies Shown. “Although during the past five years my office has submitted to the Tnferior Department a large number of cxhaus- tive reports, showing in great detail the activities of these large cil companies, yet I can scarcely recall an instance during that period that the demands of the oil men have not received favorable consideration by the Secretary of the | Interior, nor - instances in which the | rights of the public have been upheld. “Concession after concession has been anted the Colorado ol applicants, not ause they were rightfully entitled to such copsideration, but purely and sim- ply as conclliatory mensures because of great political or other pressure brought to bear upon the Secretary. “My econtinued protests urging that the interests of the American people in this great oil fleld should receive pro- tection have been ignored or overruled. “I had high hopes that your adminis- tration of the affairs of the Interior Department would result in such a change of policy that the rights of both public and private interests inf this ofl fleld would recelve equal consideration, but I regret to say that so far as I can observe, attempts to placate and ap- | pease the ofl interests at the expense of the rights of the public have been | as noticeable since March 4, 1929, as | theretofore. “Few conciliatory acts of the office of the Secretary of the Interior have gone 50 far as to grant all that the ofl in- terests want, but each recession has been followed by another and then an- other until, eventuall, the entire d tance has been traversed and the public | left holding the bag. “In my opinion, the adjustment of | the titles of these ol lands in such manner that the rights of the public therein shall receive adequate protec- tion tianscends in importance any other matters pending before the Interior De- partment for many years. “In the face of discouragement due to I.:ommued non-co-operation and active pposition on the part of the Secretary of the Interior in the work of my office, we have nevertheless carried on, but I now see that our efforts have been and will continue to be wasted unless public opinion can be focused upon the prac- tices by means of which the titles to billions of dollars of Colorado oil prop- erty have already wrongfully passed out of the hands of the Government to those who wish to exploit them for their own private gain. “1 reg:etfully tender my resignation, effective at the close of business Sep- "The names of all applicants for ent and the status of their cases matter of public record. Such inform: tion qagflbe obtained fror. ‘e General Land Office. v “As to the names of the locators the law does not require that the locator make any formal application to the department until ready to apply for t,. The only requirement of the iw is that the land be staked and y recorder’s tember 15, 1930.” NEVER ASKED FOR HEARING | Eaton, Sees jn. Kelley's Resignation Inability to Justify Ruling, DENVER, September 30 (#).—Repre- sentative Willlam R. Eaton declared the proffered resignation of Ralph 8. Kelley, a chief of the field division of : county of 1is necessarily the source of infor- mation as to the names of locators. The t has, however, taken the in- tive in l!nflncd fleld I'Ql:::. to the records securing names the Federal Land Office in Denver, in- dicated Kelley's inability to justify rul- lnh.rm. he made in Denver on oil shale o tion is the - haried BRANGH BANKING Bishop Cannon since his arrival. Son Visits Office. One of the bishop's sons, David Can- was at the Bliss Building early this morning. It was understood he collected the accumulated mail and took it to his father. At the home of another son, Dr. W. B. Cannon, it was said the whereabouts of Bishop Cannon were not known. Two of the sons who were with the bishop and Mrs. Cannon at the sta- tion last night exchanged heated words with newspaper men who sought to in- terview-the bishop as he left the train. At one stage, when one of the sons assimed & belligerent attitude toward one of the reporters, Bishop Cannon stepped forward and prevented what seemed likely to develop into & fistic encounter. A large corps of news photographers surrounded the party and flashlights boomed. Mrs, Cannon covered her face with a newspaper when confronted by the cameras, OPPOSITION HIT New Orleans Financier Urges A. B. A. to Adopt New Stand in Face of Economies. By the Associated Pres CLEVELAND, Ohlo, September 30.— Recommendation that the American Bankers’ Association break away from its long adopted poliey of opposing branch banking was made today at the general convention of the association by R. B. Hecht, president of the Hibernia Bank & Trust Co., New Orleans, and chairman of the association’s economic policy commission. Hecht said he had the unanimous backing of the commission, which is the bankers’ advisory body. It was proposed that “some extension of branch banking privileges within such restricted territorial limits as ex- perience has proven would be economic- ally sound and will ineyitably come.” Would Strengthen Banks. “Adoption of this recommendation by the association would be justified by the fact that economic forces are run- ning counter the assoclation’s pres- ent rigid policy,” he sald. He said branch banking would rural districts, which, now operating independently, are finding it increas- ingly difficult to make money. In sup- port of this statément he cited the record of country bank failures and ex- pressed belief that branch banks, suj ported by large ent institutions citles could supply requisite service T in localities where independent unit banks would have difficulty in surviving. ‘Where economic condtilons justify it the independent unit bank should be fostered, Hecht said, 8igns of an upward turn of business have recently appeared, and the factors creating the upward turn should have the wisest co-operation the banker can provide, John G. Lonsdale, president of the Mercantile Commerce Bank & ‘Trust Co. of St. Louls and president ot’:he American Bankers' Association, said. Some of the indicators of better busi- ness are the increased credit operations f banks this month, increased pur- chases by the public, increased employ- ment in many factories, and accelerated speed of some factory wheels, he said. GERMANY WARNED COUP MAY FOLLOW FORCE ON BUDGET (Continued Prom First Page.) of the Reichstag and present a menace to the Bruening cabinet’s plans, the chancellor last week let it be known that he was prepared, with the support of President von Hindenburg, to carry forward his reform policies, even if it became npcesu? to adjourn the ‘R‘e'gzhsu' and adopt the role of dic- r. The new program strikingly recalled the frank advice which featured the final report of the agent general for reparations, which was that “Germany must make up her mind to spend less than she earns” Even S, Parker Gil- bert, however, did not hit the economy note with as much vigor as was dis- played in the Bruening program. President von Hindenburg, as the nation’s chief executive, will take a sal- ary cut of 20 per cent and cabinet ministers and Reichstag members will have to accept a similar slash, Six per cent will be lopped off civil service salaries and there will be corresponding reductions in the salaries of Refthsbank and other state personnel. Unemployment insurance, which lately has been a tremendous drain on the treasury, will be made sternly self- supporting. Federal payments to state treasuries will be lowefed drastically. Govern- ment relief of the poor will be regu- lated and limited. The whole financial administration of Germany will be overhauled and simplified. The state taxation system will be rearranged to lift burdens from in- | dustry and farming. 1In this connec- | tion farms worth less than $5,000 will | be_exempt from taxation. | The tax on bachelors and bachelor | girls will remain. i A tax on smoking tobacco and smok- | ing materials is expected to yleld 160,000,000 marks. tion,” said Representative Eaton, who s chairman of the subcommittee. “Mr. Kelley ne this sub- committee for & hearing after he made & complaint to the Secretary of the In- terjor about a report made by the sup- ervisor of the General Land Office um\ an investigation of Kelley's office last April. The last meeting of the sub- committee was held June 17. Kelley was recalled to W . early in July, and, ven an op- strengthen the position of banks in the | ¢, Bishop Cannon was carrying a crutch wrapped in paper when he arrived. The reporters quickly encircled him and plied him with questions regarding the charges brought against him. To each question he replied, “I have nothing o ey sa; Bishop Cannon entered a waiting au- tomobile alone and was driven-down a ramp the lower level of the station, where Mrs. Cannon and & friend got in the car. The sons entered another car and trailed their father to an un- announced destination. Reporters who tried to follow found their cars blocked, before the press car could catch up. TALKS ON PROHIBITION. NEW YORI Bishop James Cannon, jr., of the Metho- dist Ephcopal Church South returned to the United States yesterday to face charges filed against him by four clergy- men of his denomination. He arrived with his bride of three months and former ucrewy. McCallum Cannon, on the liner Ameri- can Legion from Brazil and left the pler in a taxicab. At first he declined to see newspaper men, but later granted an interview on prohibition, cuss the charges against him. ©On that paint, he said: “I will say nothing until I have had an opportunity to read the official docu~ ments In the case. I have already out- lined my position in a statement to the Associa Press (radioed from the American Legion Friday), and I have nothing further to say.” Declines to Pose, The bishop declined to pose for pho- graphers and Mrs. Cannon kept to her state room while the bishop was clearing their baggage through the cus- toms. She then attempted to leave the ship by a freight gangway, but was greeted with a bombardment of flash- lights. She took refuge behind the backs of ship's officers and workers on the pler and waited until the bishop drove up in a taxicab. She entered the cab, pulled down the curtains and it drove away. Admires Morrow’s Stand. “My addresses (on prohibition) were well received,” he said, “and given wide publicity in the leading Brazilian pers.” Among other comments on prohibl- tion, the bishop made these: That he admired Dwight W. Morrow, who urged repeal of the eighteenth amendment, for his sincere stand, which he believed consistent in that Mr. Morrow declared for the enforcement of the prohibition laws 80 long as they were in force; that he belleved the United States, except for the great cities containing a large foreign population, was more temperate than 1t was before ' the eighteenth amendment; that there was no doubt there was a great deal of bootlegging and he believed the breweries of the country probably were disposing of much illegal beer, and that he opposed Alfred E. Smith for the presidency, not because of his religion, but because of his views on prohibition, In speaking of the sentiment against prohibition in the cities, Bishop Cannon sald: . “Where you find the Roman Catholic element you find opposition to the pro- hibition amendment, because the cardi- nals, the archbishops and the Pope are again: ohibition. Romanism, as a body * hates prohibition.” 1 - 0 Justify the av jusf 16 his ofelal posttion ae chict aivision. of the 9 the at of the | and the bishop's automobile disappeared | September 30 UP).— | | Helen | using, however, to dis- | their respects to Mr. Hoover. of the national association. AID FOR JOBLESS URGED I SESSIN Catholic Charities Speaker Says U. S. Should Prepare for Trade Depressions. Presenting to the National Confer- | ence of Catholic Charities a construc- | tive program for the remedy of unem- | ployment and business depressions, J. Rogers Flannery, Pittsburgh marfufac- turer and prominent lay social worker, declared today that & government that is “spending millions in getting ready for a war that may never happen should spend a little time and energy in pre- paring for business depressions or panics, which our industrial leaders in- sist will always happen.” Chief among the remedies which Mr, Flannery outlined were suggestions that President Hoover create a national em- ployment stabilization council, repre- sentative of all business and industrial interests, and a commission on public improvements to develop a plan whereby Federal, State and municipal govern- ments might lay out a definite program of 10 years or more am public improve- ments to be available for operation in times of depression. Flannery Principal Speaker. Mr. Flannery, who also outlined sug- gestions for unemployment insurance and other remedial measures, was the ?nnclpul speaker before a group meet- ng of Catholic social service workers devoted to social and economic problems which affect in a material way the work of charity workers throughout the country. Dr. Leo Wolman, research di- rector of the Amalgamated Clothing Workers of America, who discussed un- emxloymenl. insurance in more detail, and Leifur Magnusson, director of the hington branch of the International e :‘o“:lce, Tm dealt with the ques- employment and public also addressed the meeting.” " "0 Elaborating on his suggestion for a National Employment Stabilization Council, Mr. Flannery expressed the opinion it should include employers of every grade and class of business and | industry, private and public, “with the sole object of developing and putting | into effect equitable, reasonable and ef- ficlent means of stabi L3 | R lizing employ: May Mean Five-day Week. A five-day week or fewer hours per day may be decided upon, he suggested, not only for the stabilization of em- ployment, but also to give everybody more time for leisure and for the en- Joyment of modern comforts and luxu- ries, the consumption of which, he x‘s,via:lled, depends so much on the indi- al, ‘We must keep in mind the fact that labor must receive the necessary pur- chasing power, otherwise these com- forts will not be purchased by them,” | he said, Another fleld to tap in considering | plans for combatting unemployment in | depressed business periods, he pointed out, lies in a public works program. More than $5,000,000,000 is expended | annually in public works, he declared, but it is impossible for these govern- mental agencies to embark on & cam- paign of improvements within a few months b:cause of the innumerable ob- ‘uuclu that retard preparations. In | order, therefore, to have some reserve in public work available for future pe- riods of business depression, he sug- gested that the creation of a National Commission for Public Improvements would do much toward remedying this situation. State and municipal authori- ties should be invited to co-operate in this direction with the Federal Gov- ernment, Mr. Flannery pointed out, for the purpose of definitely establishing a bullding program for the next 10 or 25 years. ‘While Mr. Flannery conceded that American labor is opposed to the dole, and some are afraid that compulsory insurance is a step in that direction, he suggested that some form of protection ls‘hm unemployment must be put into effect pending other attempts to sta- | bilize employment, “Unemployment in- surance seems to be one of the most lo.iul r'fll steps im this direction,” he de- | clared. Must Recognize Minimum. | Mr. Magnussen, in his paper, de- | clared that the first step in any pro- E-MAN LINE AT SHIBE PARK Delegates to the National Conference of Catholic Cha ‘The photo shows, left to right, the charities group and rector of Catholic University here; the President and rities in session called at the White House yesterday to pay in center: Mgr. James H. Ryan, honorary vice president of Thomas F. Farrell of New York, president —Wide World Photo, RFOTER LDED | s somon v s s HODER TDIEAE ON TRIP TOMORROW Charges of Political Meaning Back of Tour Are Denied by ‘White House. ‘When President Hoover leaves Wash- ington tomorrow for Philadelphia to Wwitness the opening game of the world series he will be starting on the first Iap of two trips which are expected to serve as his nearest approach to per- sonal participation in the congressional campaign. ring these two trips, which completed within the r?:xt l‘l‘)‘cdl;t“n‘: Hoover will deliver four addresses, one in Ohlo, two in Massachusetts, in which States the campaign for congressional gram of ummgl:yment relief is the recognition of the principle of a mini- mum of comfort and decency, the rec- |ognition of a minimum material way of life below which no one shall be al-| lowed to fall. | ‘The details of the second step, he| sald, include the use of the power of taxation to bring about better distribu- tion of land resources, better distribu- tion of income, a better education to promote & wise use of that income and 8o _forth. Unemployment insurance in the United States, Mr. Wolman explained, affects only half a million workers and operates solely under private concerns. He explained the experiment in the clothing industry as evidence that it is possible to impose expenditures without Imposing excessivessrdens on industry and to avoid also the evils of the Euro- pean system of insurance. Problems affecting hospitalization, particularly Catholic institutions, were presented at the meeting of the Com- mittee on Health. Rev. C. H. Le Blond of Cleveland, Ohilo, said that a hospital has an obliga- tion which it must perform in social service work to the community upon which it draws its support. ‘“Tne hospital that doesn’t do that certainly misses the opportunity of fill- ing the biggest &cn in the program of charity,” he said. Social service and charity work, he stressed, should be and generaily is the major obligation of Catholic hospitals. Dr. Alexius Mec- Glanoan of Mercy Hospital, Baltimore, also discussed the hospital as a relief- giving institution and Sister M, Eileen of St. John's Hospital, Cleveland, and Rev. Alphonse Schwitalla, 8. J., of St. Louis University School of Medicine, elaborated on the work of social service clinics. At_tonight’s general conference in the Willard, Dr. Willlam J. Kerby, pro- fessor of soclology of the Catholic Uni- versity, will be the principal speaker. Secretary of Labor Speaks. Secretary of Labor James J. Davis Was the principal speaker on last night’s program of the general session. He was introduced by one ot the E.oneer work- ers of the conference, Miss Teresa R. O'Donohue. president of the League of Catholic Women. “A conference in the interests of charity could not have been called at & more propitious time,” Secretary Davis sald- “The home is just now under assault from & number of points of attack. The rapid mechanization of life is a factor. A thousand interests outside the home are luring the family until the home 1s hardly more than a sleeping place.” Preservation of the family hearth and rehabilitation of delinquent children, Becretary Davis told the delegates, are two major tasks confronting charity or- ganizations. He pointed out that 2,000,- 000 delinquent children passed through the ocourts last year and that 45,000 boys and girls are in institutions. r. Davis suggested that the Catholic charities had an important part to rlly in this work of rehabilitating mankind by helping to infuse in this country a spirit of conciliation. 'He praised the work of the conference and told the delegates that the head of the Chil- dren’s Bureau of the Department of Labor had told him of the invaluable service being rendered by the Catholic organizations. Secretary Davis was originally sched- ule to [pelk tonight, but at the last moment he was given a place instead on last- night's program. Rev. Jones Corrigan, 8. J., of Boston College, also was a_speaker on the same program. Mrs. E. J. McDonald of Waterbury, Conn., gave a talk on “Catholic Women and Community Movements.” Unemployed Discussed. Bessions yesterday afternoon were de- voted to various interests affecting charity work, including unemployment. Among the speakers were Rev. Walter E. Foery of hester, N. Y.; Mgr. R. M. Wagner of Cincinnati, E. J. Galbally of Philadelphia, and Dr. Frank O'Hara, professor of economics at the Catholic University in Washington, Dr. O'Hara spoke on “Credit Unions and Their Relations to Unemployment.” He explained the ‘origin and purpose of the credit unions, which for the past 50 years had been established in various Catholic parishes in Europe and in Canada to furnish its members with small loans in times of emergency. Its first popular introduction in this country was in 1909, he said, when Ed- ward A. Filene of Boston created & Credit Union National Extension Bu- reau which was to encourage a similar among the people of the United States. At the present time, Dr. O'Hara pointed out, two-thirds of the States have passed credit union laws and there is now pending in Congress a credi union bill for the District of Columbia. Primarily the credit union aims cultivate & spirit of thrift among its members, he said, and the result is that these associations established on a busi- ness basis, make the most practical xormL of insurance against unemploy- ment. CAPONE AIDE HELD AS SLAYER OF ZUTA Danny Stanton, “Public Enemy,” Arrested on Murder Charge in Chicago Gang Drive, By the Associated Press. CHICAGO, September 30.—“Public Enemy” Danny Stanton, purported Oa- pone aide, was seized today on a warrant charging the murder of Jack Zuts. Zuta, reputed to have been the brains of the George “Bugs” Moran gang, was slain August 1, as he fed nickels into a | slot m-ngull.ll &t Delafleld, Wis. YOUTH IS C | | | H IS CONVICTED Boy, Who Threatened Ben Lyon, Sent to Reform School. LOS ANGELES, September 30 (#).— Vincent McEaney, 17, who was arrested on his arrival here from Brooklyn after he was alleged to have threatened the life of Ben Lyon, screen actor, was con- victed yesterday of carrying a gun. Juvenile Judge Blake sentenced the outh te the Preson School of Industry, gut suspended execution on the under- standing the boy's parents would send for him. g McEaney was grrested outside the studio where Lyom worked after he al- ta | lication of which they have no justi- NYE SAYS TAPPING CHARGES LIBELOUS Three Other Senate Probers Join in Warning to Press Against Publication. By the Associated Press. A warning to newsplfleru that repeat- ed publication of Mrs. Ruth Hanna Mc- Cormick’s wire-tapping chnrrs against the Senate Campaign Funds Investi- gating Committee will be regarded as “willful and malicious libel” was issued yesterday over the signatures of four members of the committee, The statement characterized the ac- cusations of the Illinois Republican senatorial nominee as “false and libel~ ous.” It repeated a specific denial of each of her accusations and charged that “newspapers have been induced by Mrs. McCormick’s well organized publicity to misrepresent the activities of the committee, distort the news of its proceedings and to repeatedly print false statements from the tongue and pen of Mrs, McCormick in apparent disregard of libel laws.” Do Not Waive Rights. ‘The warning against future repeti- tion of the charges was given, the com- mitteemen said, “without waiving any right of the committee or any indi- vidual member of it or any employe of it to bring action for what has already been said and published of a libelous and slanderous nature.” The signers were Senator Nye of North Dakota, the Republican chair- man of the committee, and Senators Dale, Republican, Vermont; Dill of Washington and Wagner of New York, both Democrats. nator tterson, Republican, Missouri, fifth member of theé® group, abstained from signing, Nye said, because he had not been closely assoclated with the Illinois investiga- tion and did not wish to commit o self on any phase of it. Charges Throttling. In Centralia, IIl, Mrs. McCormick replied to u;xle committee with lt J::ft‘ ent that the group was now a - o thronln.{hc press of the United McCormick “has the effrontery to con- tinue to make statements which are not only false in !a::ub b\'xtl which she herself must know e false.’” The statement of the committee read: “Mrs. Ruth Hanna McCormick con- 4inues to make false and libelous charges that men'\:’ecl;s of :h;em':: estigating Com lee pu :lt" wmgk bg break into her' private premises, to ransack her personal cor- respondence, to plifer her files and rec- ords and to tap her telephone wires. Distortion Charged. “Newspapers have been induced by Mrs. Mv;%ormlck's ‘well organized pub- licity to misrepresent the activities of the committee, distort the news of its proceedings and to repeatedly print false statements from the tongue and pen of Mrs. McCormick in apparent disre- gard of libel laws. ‘This has been car- ried to such a point that there are pub- lishers today who seem never to have seen denials of these charges issued to the press in times past. “We have said and we repeat that these charges are totally and utterly false. No member of the committee whose name is affixed hereto has been in any way responsible for such acts as have been committed. We have not at any time spled upon Mrs. McCor- mick. We have not tapped her wires. We have not read her correspondence, either private or official. We did not rifle_her files at Byron or .elsewhere, nor have we or any one of us or any agent for' the committée directed; ap- proved or had knowledge of any such acts, Warns Newspapers. “We dislike honoring these charges by repeating our denials, but Mrs. Mc- Cormick has the effrontery to continue to make statements which are not only fglse in fact, but which she herself lust know to be false. The news- papers which have been induced to print Mrs. McCormick’s libels are now expressly notified that any future repe- tition of them will be regarded as will- ful and malicious libel, for the pub- fication, but must assume individual responsibility, and this notification is given without waiving any right of the committee or any individual member of it or any employe of it to bring action for what has already been said | and published of & libelous or slander- ous nature.” Patterson Declines Statement. KANSAS CITY, September 30 (#)— Declining to comment on & report pf break in the Senate Committee on paign Expenditures, Senator Ros C. Patterson, Missourl, a member of ‘the committee, at his home' here last night made public a tgkgr-m he sent to Sen- ator Nye, in which he refused to sign the committee statement, “Answering your telegram of the 27th 'S tel stated, \nstant,” Mr. Patterson's l:gnm “will say that I desire to adhere to m; :r?lmll p:uuun to 'iI:;l r?:fl that ould make no commitments upon any phase of the investigation until after al the evidence had been heard. “It is my opinion that the Senate Committee on Campaign Expenditures has no jurisdiction to conduct an inquiry into any question except campaign ex- penditures in primary and general elec- tions, and conduct and methods relating thereto. It also is my opinion that the committee does have the inherent power to investigate any charge of misconduct on the part of any of its agents or em~ ployes in their official capacity. “A majority of the committee denied the attorney general of the State of Illinois the opwrwnla of presenting evidence in support of the matters men- tioned in your telegram relating to the alleged misconduct of alleged agents of y I The four committeemen said Mrs. | seats is being hotly contested, and Rzl:anh Carolina, which l:dumedmtl; Denies Expediency Charge. Contrary to charges being made members of the Democratic party that political expediency prompted this presidential activity at this time, the White House explains that the Prestw dent has purposely kept hands off dur- ing the efi:ap-im thus far and that he 1 continue to do so; that these speeches he will make are non-political and solely for the purpose of carryin some of the major problems of the ad- inistration aunt&mu the “ people. ), the Pres t has dope little traveling since his_inai ‘fl“kfl and that he has been anious kr: “’fi by to go out into the ecountry cloxslr 'cnnrl‘lcS with the. n further reputing . charges of politics in connection with these trips, the White House emphasizes the fact that no one of these speeches will be delivered at a political mee , OF even before a gathering with a itical Bt~ mosphere. His first speech, which will be delivered -in Cleveland Thursday night, will be before the aunual meet- f the American Bankers’ Associ In Boston next Monday he will ad- dress the annual convention of the American Legion in the morning and the American Federation of Labor in the afternoon. Between times in Bos- ton he will be a lancheon guest of & large group of prominent Boston busi- ness men, regardiess of their political afliation, at the Copley-Plaza Hotel, which was the headquarters during his campaign in 1928 and where he con- ferred with political leaders regarding the Massachusetts campaign. ‘Wil Stop at Charlotte. He will speak the following day in cohnection with the ceremonies cele- brating the 150th anniversary of the *Battle of Kings Mountain on the border line of North and South Carolina. The spot upon which the President will speak on this occasion, however, will be on the South Carolina side. - En route to Kl:fil Mountain, the presidential train 1 make & brief stop at Charlotte for the purpose of a demonstration at the rail~ road stations and to allow a number of prominent citizens to shake hands Wwith the Executive on the rear platform, ‘This stop was included in the President’s itinerary at the request of Representa- tive Jonas, Republican, in whose district ite is located. A tremendous against Mr. Jonas' ‘The President will travel on_thi two trips in a special train. He wi leave Washington tomorrow morning in time t> arrive at Shibe Park a few minutes, ahead of the starting of the base ball classic. “He will bz accoms anied to Philadelphia by Secretar] ley, Wilbur and -Hyde and his secretaries; .Gieorge Ac!: La¥ichde Richgy;. his. mi naval aidss, Gapt. Russell Col. Campbell Hodges; Wa! Assistant Secretary of the T David Ingalls, Assistant Socrsl the Navy for Aeronautics, and Capt. Jeel T. Boone, White Hou e | Secretary of Labor Davis, # spe:king trip in Penns;l Join the 1?.'&‘. idential parf game. he Fresident ale joined by Jeremiah Millbank. personal | friend; Daniel Pomeroy, Republican National Committes of New Jersey, and Jay Cook of Philadelphia. Program at Cleveland: Immediately following the game, the President will leave for Cleveland, where he will arrive before 'noon the following morning. Mrs. Hoover, who went to Indianapolis to attend the an- nual meeting of the Girl ‘Scauts' Coun= cil, will joint .the .presidential.train just. before it arrives in: Cleveland. ' Accord- ing to information recelved 8y fhe White: House, the President will receive a tre- mendous ovation upor his arrival there and will be given a demoristration of acclaim during & 5-mile automobile pa- rade, which will end up at the Cleve- land Hotel, which will be his headquar- ters during his stay there. He will be the guest of the Presidential Recegflnl Committee at a Inuch at that and in- the afternoon heé and Mrs. Hoover will go for a motor ride and mfi: receive friends at thelr suite. ‘The bani.ers’ meeting in the evening will be held at the public hall which was the scene of the Republican Na~ tional Convention in 1924, and also. the convention which nominated Senator La Follette. The hall seats 16,000 ‘persons,. and information received at the Whitg House is.to the. effect that it will be filled on this occasion. The President will board his train immediately after. his speech, arriving back in Washing~ ton the following- Sunday night on the sleeper from Bosto: ‘The President’s, | n. traln will arrive back at Washington' from Kings Mountain on Wednesday,: October 8. X PERU PAYS ON DEBT New Government Carries Out Ob- ligation of $1,000,000. LIMA, September 30 (#).—The Peru- vian vernment, established through revolution by Lieut. Col. Luis Sanchesz Cerro, yestarday complied with one of its importaht international mm; ments, paying the service of intes and amortization due October 1 for the Peruvian national loan. Most of the Peruvian foreign loans have been refunded into this loan. The operation involved about $1,000,000, in- cluding service on the tobacco loan, paid s ot B teats f this 1 e of eatures of AT, iy ment is the fact that it was clrmm wlm:u: greatly affecting the exchange marke FILM.COMPANIES UNITE Metropolitan Sound Studios and Christie Conclude Deal. LOS ANGELES, Calif, September 30 (#)—Merger of the Metropolitan S8eund Studios, Inc., and the Christie Film Co. ‘was announced yesterday. 3 The new organization wifl be known the Metorpolitan-Christie Picture tion wi u}gluu-um of $10,~ 000,000, Charles H. Christie will be president and William S. Holman gen-- committee. Whil full a’m s bile giving faith ent of every member of that he has no ki committee has been guilty of such mis- conduct until all the evidence relating thereto has been heard. “Holding these views, and having the Jegedly ‘told 8 he_intended to M‘ );.he actor on t. ously he ¢ R the evidence judieial tern | decline to tached eral manager. The announcement saf San nnnclua.-nd New York were behind merger. Christie, known D:od wmul'u:wu‘m the n luce feature length :nd comedies. HAYS B. WHITE DIES further conception that m, tio) member M’m- wlmmfi;uw: :n’f ', I must respe ly name to be ate o Statements con- MANKATO, Kans., S 30 B. White, 8, e T TR £ P, resent triot, alter