Evening Star Newspaper, February 4, 1931, Page 1

WEATHER. \ (U. 8. Weather Bureau Forecast.) Slightly colder tonight; minimum tem- perature about 27 degrees; tomorrow fair. ‘Temperatures—Highest, 48, at noon today: lowest, 31, at 7:30 a.m. today. Full report on page 4, Closing N.Y. Markets, Pages 11, 12&13 @b WITH SUNDAY MORNING EDITION ¢ Foening Star. No. 31690, Brered ol % Zntered as second class matter shinzton. D. WASHINGTON, D. C., WEDNESDAY, FE BRUARY 4, “From Press to Home Within the Hour” The Star’s cairier system covers every City block and the regular edi- tion i3 delivered to Washington homes 1931 —THIRTY-FOUR PAGES. #%¥% as fast as the papers are printed. Yesterday’s Circulation, 118,465 CENTS. J00DEAD IN QUAKE, THOUSANDS HURT, SURVEY INDIGATES New Zealand Rescuers Fear| Larger Casualties—Napier Ordered Evacuated. 5,000 REFUGEES TO GET | AID IN ANOTHER TOWN Fire Engines Buried in Debris and | Water Mains Broken—Planes | Rush Help. By the Associated Press. | WELLINGTON, New Zcaland, Febru- ary 4.—Preliminary estimates of the death toll at Napier and Hastings Jumped to 400 today when s f the damage caused by yest quake and fire had cnly begun. Eyewitnesses reported its was impos- sible to give any accurate figure at pres- ent. but agreed there were at least 300 | dead in Napier and 100 in Hastings. | The number of injured at Napier was | estimated at 1,000. No figure on injured | at Hastings was reported, but the num- | ber was believed to run into the h\m-‘ dreds. | Thousands Are Homeless. The total number of injured in the tremors probably will run into thou- sands, while many other thousands are homeless. The town of Palmerston, north, is preparing to received 5.000 refugees for whom the goverriment is providing blankets. and other equip- ment. Among the injured at Napier is Very Rev. Josepf Brocklehurst, archdeacon of Hawkes Bay. His spine is dislocated Tonight a general order was issued for the evacuation of Napier within two days. The sewerage system has been destroyed and the authorities feared a serious outbreak of discass 1if the inhabitants were not compel to leave the city as expeditiously as pos- sible. Today the commander of the naval sloop Vercnica, which was in Hawke Bay when the quake struck, radioed the | naval base here asking that all avail- able demolition stores b: sent to him at once. The request indicated his in- | tention to blow up some of the buildings in Napier in an effort to check the fire which has not been brought under con- trol since the first quake. Five naval planes set cut for Napier this morning with sanitary experts and equipment. Streets Piled With Debris. Survivors said the quake wrecked nearly all the stqne buildings in Napier and that the fire, fanned by a breez | coming in from the sea, swept inland, | destroying everything in its path. { Napier was'a shambles. Streets were | piled with debris and bulldln&:’hich did | not collapse from the “ghocks. leaned at dangerous angles. A heavy | pall of dust arose from the ruins and mingled with the smoke from burnlnl\ buildings to create additional terror. As soon as the earth tremors ceased | desperate efforts were made to rescue those entombed in the ruins of build- ings. Those who came out alive as- sisted in the rescue operations. | Both the injured and dead were laid in the streets. | Sightseers Are Barred. | ‘The work of search and rescue is be- ing organized as quickly as possible by | the Red Cross and governmental agencies. They are facing enormous | difficulties, however, owing to the wide scope of the ruin and suffering. Police | have drawn a cordon across the island | at Dannevirke, 75 miles south of Napier, in order to prevent sightseers hindering the rescue operations. There have been many landslides damming rivers. A party of workmen at Wairoa had a remarkable escape. ‘When the railroad tunnel in which they were working collapsed they crawled to the surface through a crack 18 inches wide | The Catholic seminary at Napier col- lapsed during the quake, killng two priests, Fathers Boyle and Condringer, and eight students. Several others were injured. Sleep on Seashore. Napier families slept last night wrap- ped in rugs on the seashore, afraid to venture back to their old shelters. Even the waterline was changed. The bed of the harbor was raised 18 feet and places formerly covered by deep water were dried up. A Wellington newspaper man making his way into the stricken area said that the marine parade was lined with broken houses, that the entire business quarter was a heap of ashes, and that every bank in the city had collapsed. Two fine newspaper offices, the Hawkes Bay Herald and the Napier Telegraph, were wrecked with their modern equipment a total loss. The Masonic Hotel was a smoldering ruin, and the seaport section of Napier has been virtually wiped out by blazing gasoline. The new Municipal Theater, one of the finest in New Zealand, and the Presbyterian Church both were burned, while the Cathedral was dam- beyond repa “LONG-LOST STAT TO STAND AT HIS VIRGINIA HOME | By the Associated Press BY BANKERS HEAD Stephenson Says Nation Is Recovering, but Payment May Kill Present Hopes. HODVER SENDS ADE TODRDUGHTREGIN FORRELEF SURVEY Col. Campbell Hodges Goes to | Little Rock to Ascertain | Extent of Need. PRESIDENT TO STAND PAT| AGAINST $25,000,000 FUND Chief Executive Insists' Charity of | American People Will Meet Demands of Situation. | tinued reports nsas of in- | Prompted by the cof from drought-stricken A creasing human distress, President | Hoover has sent Col. Campbell Hodges, | his chief military aide, by airplane to that State to ms vey to de- termine the actual situation. | Col. Hodges left Bolling Field yesterday in a transport plane, used usually by the Secretary of War, and piloted by Lieut. Cornelius W. Crous- land, the latter's special pilot. | To_ald Col. Hodges in this survey | the President has detailed Capt. Lewis A. Pick of the Engineer Corps, sta-| tioned in Texas, who was an aide to Mr. Hoover when he directed the relief work following the Mississippi flood in a su late | By the Associated Press. Rome C. Stephenson, president of the | American Bankers' Association, testi- fied today that cashing veterans' service certificates would make hopes of gradual business recovery seem “ill founded.” | Befcre the House Ways and Means | Committee the banker reiterated his be- lief the “Nation is now headed toward ery.” he added, “if this bonu: plan payment is to eventuate it would seem that those hopes are {iI founded. Blames “Economic Surpris Stephenson termed the Nation's pres- ent condition “one of the greatest busi- ness depressions of its history,” and at- tribute it to “economic surprises.” Upholding Secretary Mellon’s opposi- tion to cash redemption of the veterans’ adjusted ccmpensation certificates, he said he spoke “not primarily for the) banks cr for any particular interests, | Counsel but essentially for the far greater wel fare of all of our people.” Enactment of plans to pay cash fo certificates now, he warned, might in | the future hinder enactment of “other | really deserving bills for the relief Df‘ the World War veterans.” “The Nation has suffered enough eco- nomic adversity already,” he declared. Substitutes Held Possible. Stephenson went on to give the opin- ion, however, that two substitutes for full cash redemption of soldiers’ certifi- cates coult be executed “without serious injury to business.” Representative Hadley, Republican, Washington, asked what woulc result from ing $784,000,000 of the Treas- ury reserve for application toward re- tirement of the certificates, and floating a billion-dollar bond issue for part pay- ment. . “It would not be so disastrous,” was the answer. | “You think that would have less effect | on the market?” Hadley questicned. | “If arrangements for that could be | made so as to spread it over some | months,” th> banker answered, “I be- | lieve it could be done without serious | injury.” Bond Plan Considered. Representative Crowther, Republican, | New York. asked what would come of giving veterans 4 per cent Treasury | (Continued on Page 2, Column 3.) PATRIOTIC INVENTOR | MAY BE REWARDED Bill Introduced to Retire Master | Sergt. Nelson With Pay of Captain. Master Sergt. Paul R. Nelson of the Coast Artillery, who two years ago deeded to the Government an invention worth hundreds of thousands of dollars, will retire next June with the rank and pay of a captain if Congress can be induced to act. | Representative Hull of Wisconsin, with War Department approval, has | introduced a bill providing for Nelson's promotion when he retires with 30 years' service to his credit. Nelson, working on his own time, in- vented a simplified system of coast defense submarine mine control. It was estimated its use would save the Gov- ernment $1,000,000 over 10 years. He| applied for a patent and assigned all | his rights to the Government “purely | from a semse of duty, loyalty and patriotism to the United States.” The details of the patent have been | secret of the War Department. | UE” OF MONROE Figure in Marble Was Intended for Erection in Capital of Venezuela, but Revolution Changed Plans. Bpecial D h to The Star WINCHESTER, Va. February 4.— ‘long lost statue” of President James Monrce, which a South American revolution prevented from being erected i front of the Venezuelan Capitol in Caracas, and which was found recently in a New York sculptor's studio, is about to be erected permanently at Ash Lawn, Albermarle County, Va. where Monroe lived for 26 years The figure of Monroe, standing 11 feet high and carved from a solid block of Carrara marble 33 years ago, will be the first statue of Monroe, author of the Monroe doctrine, to be erected in his native State. It will also be the Jargest figure of any statue now in Virginia. YOU | The figure weighs three tons, and was made by Attillio Piccirilli, New York | sculptor, on the order of President Crespo, president of Venezuela. Before the completed monument could be shipped a revolution resulted in the overthrow of the government and Senor Crespo_died in jail. owner of “Ash Lawn," | : sted in Monroe, and is |one of the instigators of the movement to have Virginia honor her distin- guished son. |~ The Monroe statue is to stand within |sight of Thomas Jeferson's home, | Monticello. Unveiling of the monument |is planned for April 28, the birthday | of Monroe. | days. 1927. Maj. Oliver S. Wood, Infantry, assigned to the Military Buresu, and a native of Arkansas, accompanied Col. Hodges on his flight and will assist in the survey. Secrecy surrounded this movement of the President’s and the fact that his representatives were flying to Little Rock was not learned until today. The White House then explained this in- formation had been withheld because of the President’s wish that his repre- entatives arrive at Little Rock before (Continued on Page 2, Column 1.) COMMISSION-BRIDE ‘SPLIT AGAIN LOOMS Is Told to Amend Modification Asked for Rates Decree. Another dispute between the Public | ‘U(lutlcs Commission and its legal ad- | viser, Corporation Counsel Willlam W. Bride, seemed inevitable today, as the cdmmission sent to Mr. Bride an in- struction to amend the tition to | Equity Court to modify the consent de- cree by which electric rates in Wash- | ington are governed. Amendment Kept Secret. The nature of the amendment has not been disclosed, but it is apparent that it dces not meet with Mr. Bride's approval. The request for the amend- ment was made informally by the d livery of a slip of paper to Assistant | Corporation Counsel Willlam A. Rob- erts by an employe of the commission. The slip was undated, unsigned and unstamped, according to Mr. Bride, whereas his previous instructions have all come to him in triplicate on the let- | terhead of the commission and bearing the signature of Chairman Mason M. | | Patrick of the commission. Apparently, the amendment, the text of which is being withheld from the public for the time being, is of consid- erable importance, as it has already de- layed the filing of the petition for six The commission at first seemed to be in a hurry to file the petition, giving instructions to Mr. Bride to pro- ceed “immediately” with the filing, be- fore even receiving his advice on the subject. This action caused a breach between the commission and Mr. Bride which was fusther widened whin the former insisted that the petition be one to modify the decree, instead of entirely abrogating it, as recogmended by Mr. Bride. Petition Submitted Thursday. The petition, in its present form, was drawn up and submitted to the com- | mission last Thursday and today's re- quest for the amendment is the nm{ action known to have been taken by the commission with respect to it. The | petition, as it now stands, asks the court to use as a fund for calculating rate reductions the excess profits of the Potomac Electric Power Co. above | 6%, per cent. At present the fund used is the excess over 7' per cent. A sliding scale is set up in the petition, so0 that the greater the excess profits of the company, the greater the propor- tion to be used for rate reduction becomes. HOLD-UP IS FRU: UP IS FRUSTRATED | BY BLOW ON MAN’S HEAD | | An attempt to hold up the grocery store of F. D. Caprino at Ninth and | N streets was frustrated today when | Steve Biancanello, who runs a shoe while the hold-up was in progress and | slugged the colored bandit with a candlestick. | The man was arrested and taken to | the second precinct, where he was | booked as William Brown, 28 years old, who said he had been out of work for | about two weeks. According to Caprino, the man shoved | a gun against his body and demanded | | his money. Caprino had three or four | dollars in change and the bandit or- | dered him to lay this money on the { counter and then forced him into a back room, demanding more money. Just then the shoemaker entered the store The bandit, alarmed, jumped backward and Caprino made a lunge for him. The bandit swung his gun at the | grocer, cutting his hand, and the two | were locked in a struggle when Bian- | canello grabbed a candlestick from the counter and came to the grocer's| assistance. Radio Prognm.t on Page B9/ R You WERE HUNGRY WHICH WOULD You RELYON FoR. QUICK RELIEF? FIVE MEN APPEAR ATCANNDN EARNC Richmond Detective, Compan- ion, School Secretary and Two Others at Trial. Five witnesses, including Fred Mor- gan, a Richmond detective, appeared this morning bofore the board of traveling elcers trying Bishop James Cannon, jr., at Mount Vernon Plac: M. E. Church South, as taking of testimony in the case was started. Other witnesses were George P. Adams, secretary-treasurer of Black- stone Institute, at Blackstone, Va., a Methodist school for girls, where Bishop | Capnon formerly was president; Dr. W. Asbury Christian, who occupies a Rich- mond, Va., pastorate, and two other men whose identity was not certain. One of these accompanied Morgan, who laughingly told newspaper men that he and his companions were “Rich- mond lawyers” by the name of “Smith & Jones” Morgan and his companion were only before the elders a few min- utes, but the other witnesses were in the church throughout the morning. ‘ None would discuss what had trans- pired. It is known, however, that the greater part of the morning was given | | over to a evidence, study of documentary Bishop Cannon Present. Bishop Cannon was at the hearing again early, remaining throughout the | morning session and was understood to be bearing up as well as could be ex- pected in view of his physical condition. For more than five hours yesterday the noted churchman, long a power in both religious and political circles, sat in Mount Vernon Place Church and heard outlined the counts filed against him by four traveling elders—Rev. Forrest J. Prettyman of Baltimore, Rev. P. Martin of Abingdon, Va. and |Rev. J. T. Masten and Rev. Costen J. Harrell, both of Richmond. Allowed to Voice Objections. While the utmost secreoy surrounds the proceedings, it was learned on gocd authority that at the very outset there was a development not hitherto antici- pated when permission was allowed (Continued on Page 2, Column 8.) Talking in Sleep Costs Liberty of Escaped Convicts By the Associated Press. BLOOMINGTON, I, Febru- ary 4—Talking in their sleep cost two escaped convicts their liberty yesterday. The two, David Griff and Wil- liam Hanley, both of Chicago, who escaped from the reforma- tory at Pontiac last night, fell asleep while riding in the truck of a friendly driver, who over- heard what they said and notified | | sState highway patrolmen. BUTLER WL NAKE ACCUSATION PUBLE !Marine and Lawyer Confer in Secret After Eluding | Curious Throngs. | By the Associated Press. | A secret conference was held today {between Maj. Gen. Smediey D. Butler, | awaiting court-martial, and his counsel, | Maj. Henry Leonard, at the exclusive | Metropolitan Club, Seventeenth and H | streets. | The accused Marine would not talk | to newspaper men, and care was taken to conceal his whereabouts. Informed by telephone that such.a crowd had gathered outside his office | that four policemen nad been called to control it, Maj. Leonard laughed, and | Gen. Butler joined. Will Announce Charges. Leonard said the formal charges against the officer might be made public later in the day at his office. < | Early in the day Maj. Leonard, on of Butler's old campaign comrades, told newspaper men who waited outside his | office door that he would do everything possible to prevent his client from being photographed or interviewed. | Throws Off Followers. | He then drove away and a circuitous route and heavy downtown traffic pre- | vented pursuit. Before leaving, he said, | “it would be prejudicial to our case to (Continued on Page 2, Column 7.) (CARAWAY ASKS REPETITION OF EPITHETS IN PRIVATE Proposal to Bar Defeated Congressmcn From Federal Posts Follows Invec- tive of Representatives. Senator Caraway, Democrat, Arkan- sas, said today he had extended a pub- lic invitation to Representative Cram- ton, Republican, Michigan, and Repre- sentative Preadway of Massachusetts to repeat to him personally their accusa- tions on the floor of the House yester- dny Y. Mr. Caraway, who was designated by Mr. Cramton in tge House yesterday as a “plain, unadulterated liar” ex- tended a public invitation to Mr. Cram- ton and the others to meet him per- | shop next door to the grocery, entered |sonally at any time or place they may desire and say to him privately ‘what they thought of him. “The other da said Senator Cara- , “I made a speech discussing the drought situation; _whether in good faith or bad faith I am not now dis- cussing. Two gentlemen became very much stirred up about it. I have been endeavoring to extend to them an op- portunity to tell me personally what they really think about it. They have declined to do it or to afford me an opportunity to tell them privately what I think about them. I am now ex- tending them this public invitation. At anytime that it is convenient for them, it ‘will be conveunient for me to have them tell me privately what they want to say about that speech.” Senator Caraway said later that he had called Mr. Cramton on the tele- phone and had told him.he would be glad to meet him any place and at any time where they could say privately to each other what they thought about each other. The Arkansas Senator said that Mr. Cramton implied that what he had said on the floor of the House stood for it- self and had rung off. Senator Caraway added that he had tried to get Mr. Cramton several times thereafter, but had been unable to do so. Mr. Caraway said also he had tried to get in touch with Mr, Treadway, but that he had been unable to do so. Dill Proposes Measure. A bill to prohibit the appointment of any defeated member of Congress to any Federal position within two years fol- lowing ‘the expiration of their terms was introduced in the Senate this after- noon by Senator Dill, Democrat of Washington, Introduction ef the bill came imme- diately followirS a discussion between other Senators as to whether or not Representative Cramton of Michigan has been selected to be an associate director for the George Washington Bicentennial celebration at a salary of $10,000 a year after he leaves the House, March 4. The bill is general in its terms. Senator Fess, Republican, of Ohio, chairman of the bicentennial Executive Committee, toid the Senate that Mr. Cramton is not a candidate for the po- sition, and that no decision has been reached regarding the appointment. The question came up during consid- eration of the independent offices ap- propriation bill, which contains an item carrying funds for expenses of the Bi- centennial Commission, Senator Norris, Republican, of Ne- (Continued on Page 2, Column 5.) PTS DENED BAL ON HABEAS WA Justice Siddons Rules Plea Pending Appeal Is With- out Merit. G. Bryan Pitts, former chairman of the board of the F. H. Smith Co., now William Hitz following his conviction of conspiracy to embezzle funds of the wmpany, was denied release on bail to- day by Justice Frederick L. Siddons. The court ruled that there was no merit in the contentions made by At- Vtorney T. Morris Wampler in an appli- cation for a writ of habeas corpus to secure the release of Pitts pending the hearing of his appeal from his convic- tion and sentence. Justice Siddons pointed out that the case is now before the Court of Appeals and that tribunal has authority to release on bail. H wrote a memorandum opinion and an- nounced that he will sign an order de- Smw the mym of the petition and 3 writ of habeas corpus. Hezring January 26. Hearing on the writ was held January 26, at which arguments were mi by Wampler in support of the n which was opposed by Assistant Attor- ney General Nugent Dodds and_Assist- ant United States Attorney Neil Burkin- shaw. The court has had the matter under consideration until today. Wampler had contended the trial of Pitts was 1llegal because conducted by the Criminal Division of the District Supreme Court and not by that court sitting as a District Court of the United States. In refuting that contention Justice Siddons reviewed the powers re- posed in the Distric. Supreme Court and its predecessor, the Circuit Court of the District of Columbia, and declared: “It may be observed at this point that it is believed that never in the whole_ history of the judicial systems that have been created.for the Dis- trict of Columbia has there ever been a trial of a criminal case in _the “(Continued on Page 2, Column 5) | DO-X FLIGHT HELD UP | BY DAMAGE OF WAVES| Transatlantic Trip to Continue Aft- er Repairs Which May Re- quire Two Weeks: By the Associated Press. LAS PALMAS, Canary Islands, Feb- ruary 4.—Battered by giant waves in Bahia Gando, several miles from here, the DO-X, German 12-motored sea- plane, appeared today to have been thwarted in its transatlantic flight proj- est for two weeks at least. Some doubt existed here as to the extent of injuries sustained by the plane yesterday morning as it attempted to take off for Porto Praia, Cape Verde Islands, en route to Rio de Janeiro, but it was understood that both motors and superstructure were damaged. Ad urgent message has been sent to Lisbon to the Dornier engineer. M. Ber- nier, to proceed at once to the Canary Islands to aid in the repairs to the plane. He is leaving Cadiz to catch a ship to Las Palmas. He inferred before his departure that repairs might take several weeks siuce parts would have to be imported from Germany. Capt. Christiansen attempted yester- day morning to taxi here from Bahai Gando but found the water too rough and returned. He said that the trans- atlantic trip would have to be post- poned anyway until the next new moon. DOG POINTS OUT TRAGEDY PITTSBURGH, February 4 (P).— in jail under sentence of 14 years' im- | prisonment imposed on him by Justice | 14} COMMUNITY CHEST SUCCESS INDICATED BY EARLY REPORTS Crucial Need Expected to Bring $300,000 Required to Reach Goal Tonight. NOTABLES ARE INVITED TO HEAR FINAL RESULTS ing Last-Minute Pleas for Nation's Sufferers. Preliminary reports received today in- dicated the Community Chest workers had a good chance of attaining their goal of $1,950,154.40 by the final report meeting tonight at 8:15 in Constitution Hall. Elwood Street, Chest director, pre- dicted approximately $300,800 needed to assure success would be obtained in the stipulated time. He explained he based his prediction on the fact that the public, in contributing $1,647,690.31 up to noon yesterday, had given evidence of the widespread appreciation of the ung usual situation faced by the Chest. Present Need Is Crisis. “Every cne knows about the crisis resulting from unemployment and the drought,”Mr. Street declared. “That is why there have been so many more gifts this year and explains the deter- mination of the thousands of solicitors to get sufficient pledges to cope with the situation. The solicitors are work- ing today as they never did before. “The workers are going back today to to increase the donations they already have made. The workers also are re- turning to see many persons who were not at home or were sick when visits were first made. In addition, they are interviewing as many entirely new po- tential contributors as possible.” Other leaders pointed out some 78, 000 pledges had been reported with (Continued on Page 2, Column 4.) ANCESTRY IGNORED IN WHOLEAN SUIT | Attorneys SaylParenlage Not Involved in Suit Against Mrs. Henderson’s Gift. Although Mrs. John B. Henderson re- iterated her denials that Mrs. Beatrice Henderson Wholean is her adopted daughter, attorneys for the latter de- clared today that formal adoption pro- ceedings, disclosed after a six-year lapse yesterday, were initiated by Mrs. Hen- derson and kept secret by the court at her own request. At the_same time counsel for the claimant & the Henderson millions an- nounced that the question of Mrs. ‘Wholean’s ancestry, raised by Mrs. Hen- derson, is in no way pertinent to Mrs. Wholean's suit to have the 90-year-old widow.of Senator Henderson removed as trustee of the Henderson estate. Suit Would Bar Gift. ‘The suit by the young woman whom the world has regarded as Mrs. Hen- derson’s granddaughter also would pre- vent Mrs. Henderson from giving her palatial new residence at 2437 Fifteenth street to the Government as a home for Vice Presidents. “Mrs. Wholean is not interested in any statements Mrs. Henderson may make on the street, in the park or in her home,” Prescott Gatley, attorney for Mrs. Wholean, said today. “Mrs. Wholean has presented her case to the court and Mrs. Henderson has ample opportunity to make any defense she may wish to in the case. The question so. prominently discussed in the press is entirely outside and beyond the issues raised by Mrs. Wholean'’s suit, and is entirely foreign to the subject.” Sought to Avoid Publicity. Mr. Wholean said today the adop- tion procedure in 1924 was conducted in strict accordance with Mrs. Hender- son’s instructions. Secrecy was main- tained because Mrs. Henderson did not wish any publicity given to the matter at_that time, he stated. Friends of the Wholean family said Gen. Pershing Among Many Mak-| get more from persons abe and willing | GRAND JURY TO GET COMPLAINT FILED AGAINST E. D. RHEEM Vice President of Mortgage Company Accused of Em- bezzling $162,000. INVESTIGATORS CONTINUE STUDY OF FIRM’S AFFAIRS Several Days Expected to Be Needed to Prepare Evidence for Inquisitorial Body. Preparations were being made today to present to the grand jury evidence gathered by the Government against Edmund D. Rheem, vice president of Swartzell, Rheem & Hensey, who was arrested yesterday on a warrant charg- ing him with embezzling $162,000. It was expected, however, that in- vestigators for the Départment of Jus- tice and the United States attorney’s office will need several days to com= plete their study of the company's af- fairs. The warrant for Rheem's arrest was issued after Department of Justice ac- countants discovered certain facts | which they said indicated that Rheem had used mortgage notes left with him for safekeeping to replace other notes being held by a bank as security for an investment made through his firm. Say Notes Substituted. It was caid that the bank had in- vested $162,000 from funds in the estate of Mr. Rheem’s father in mortgage notes on a building project financed through Swartzell, Rheem & Hensey. Last month, it was said, officials of the bank learned that this mortgage had been released. It was understocd the notes held by the bank had not beem paid, and that officials of the institu~ tion went to see Mr. Rheem about the matter. He is then said to have sub- stituted as security notes of unques- tionable value which had been left with mfiul}b Rhee:l::u & Hensey for safe g by purchasers. Rheem m%urhu co-trustee, J. Newton Brewer, today formally resigned their trusteeship under a deed of trust for $75,000 on the Windemere Apartments, 1825 New Hampshire avenue, when Avoub M. Rjzik, 1213 F street, filed a petition in District Supreme Court de- claring they were “unfit to continue as_trustees.” Through Attorneys H. Winship ‘Wheatley and H. Winship Wheatley, jr., Mr. Rizik also obtained a rule on the receivers for Swartzell, Rheem & H sey to show cause why they should not return to him notes aggregating $25,000 secured on the New Haven Aj ts at 412 Third street, which been left by Mr. Rizik at the office of the bankrupt order requiring the receivers to furnish Frank Tomlinson, a builder, informa« tion as to who holds his notes. Tome linscn, in a petition filed Monday through Attorney Edmund D. Campbell, explained that he had borrowed $200,= 000 from the bankrupt firm and had given a second deed of trust on cer- tain property, making 370 mortgage notes, which he believed the firm had disposed of to various persons. He said he had received only approximate- ly $75,000 from the firm and that the rest was still due him. Bond Fixed at $25,000. Rheem was released unWer $25,000 bond after the warrant had been served on him in the office of United States Comsmissioner Needham'C. Tarnage. The young financier who directed the affairs of Swartzell Rheem & Hen- sey told reporters after his arrest that he was anxious to do all in his power to aid investigators in straightening out the affairs of his company. “I lost every dollar I had trying to keep the company going,” he said, “but I am anxious to do anything I can to help.” The warrant was issued at the re- quest of Assistant Attorney General Nugent Dodds, United States Attorney Leo A. Rover and Neil Burkinshaw, one of Mr. Rover’s assistants. It was sworn to by Louis Loebl and Aaron W. Jacob- son, special agents of the Bureau of Investigation, who were among the agents assigned to the investigation by Director J. Edgar Hoover. Notified by Telephone. One of the most difficult phases of the investigation—the audit of the bankrupt company’s books—was handled by Agents Charles T. Malone and E. J. Armbruster, the bureau’s expert ac- countants. After the warrant had been pree pared, Mr. Rheem was notified by tele- phone and he came to Commissioner (Continued on Page 2, Column 1.) (Continued on Page 2, Column 3.) By the Associated Press. CHICAGO, February 4.—Acting on information given them by George ‘Wittbrod, 34, whom they found in a coffinlike box on a_lonely road early today, police arrested seven youths for questioning on charges of kidnaping Wittbrod, torturing him and then leaving nim in an open grave. ‘The men, Albert Ehmann, 20; George Schimmel, 19; Joe Klopp, 19; Michael Kuhn, 19; ed Cost, 21; Richard Morawez, 21, and William Meddy, all six feet fall, confessed the abduction, police said, bué argued it was “just a Neighbors watching firemen in a futile battle to put out the flames consuming the home of George Meyers, 75-year-old blind man, tried to quiet the dog that has led him about for years. And when he would not be still, they followed him to a thicket not far away. In a clump of bushes they lgx_nd Meyers, dying from a shotgun wous Meyers set fire to his home; then shot himself, the coroner reported. Are Needed More Than Ever Before This Year in the Joke.” They refused to explain ref- erences to Wittbrod as a “stool pigeon.” ‘Wittbrod, a rubber salesman, whose left hand is crippled, said that seven SEVEN HELD AFTER KIDNAPING; VICTIM NAILED IN COFFIN BCX Chicagoan Almost Smothered by “Joke” of “Torturers” Before His Cries Attract Attention. ‘They threw clods of airt at him. When he jerked one of his arms free, the men found a wooden box, the kind in which caskets are kept, near a new- ly dug grave. After gagging him they forced him into it, nailed down the lid' and tried to throw it into the grave. . The box, however, did not fit well, so the abductors tied a rope to the box, fastening the other end to the auto- mobile, and dragged it to the point where Wittbrod was found. “You are getting yours now.,” Witt- brod quoted one of the men as saying. “We told you we were going to take you for a ride ” Wittbrod's cries attracted the atten- tion of a farmer, who summoned two men took him from a room as a highway policemen. They reported the man was almost smothered., The victim told the police he had often been the butt of pool room jokers, but he W of no re: why the men wo want to him. Ca munity‘Chest fqn Red Cross