Evening Star Newspaper, June 26, 1931, Page 1

Closing N.Y. Markets, Pages13,14 & 15 Entered post office, o. 31,832 WEATHER. (U. 8. Weather Bureau Foreeast). Fair and slightly warmer tonight; to- morrow fair and warmer. ‘Temperatures—Highest, 80, at today; lowest, 63, at 6 a.m. Full report on page 9. second class ma ‘ashington, D. noon today. tter ) WASHINGTON, D. C., FRIDAY, JUNE 26, 1931—FORTY-SIX PAGES! Foeni WITH SUNDAY MORNING EDITION DEBT AGREEMENT IS SEEN| AS STIMSON INDICATES U. S.| WILL NEGOTIATE METHOD French Answer Pleases by Cordiality. REPLY IS HELD SHORT OF GOAL “Does _Not Bring Full Measure of Relief.” BY G. GOULD LINCOLN. Agreement to President Hoover's proposal for a suspension of inter- governmental debts, with some adjustments, by all the nations *involved was forecast here today. Secretary Stimson of the State Department in a formal statement indicated that the American Gov- ernment was willing to come to a compromise agreement with France. He expressed the gratification of the American Government at the cordiality of the French reply to the Hoover proposal. The Secretary at the same time made it clear that this Govern- ment is in accord with the French contention there should be no im- pairment or reconsideration of any of the international agree- ments, including the Young plan relating to reparations and Amer- ica’s own debt settlements with the European nations. Mr. Stimson's statement was made to the press at the same time that the text of the French government's reply was given out. The President’s suggestion, Mr. Stim- #on pointed out, “ext:nded only to the simple postponement for one vear of the payments under such agreements.” Method Can Be Worked Out. The question of method, he said, is one that can be worked out. “There are suggestions in the method proposzd_ by the French government,” continued Mr. Stimson, “which do not accomplish the full measure of relief to debtor nations corresponding to the President’s plan, and must, therefors, be subject to a further discussion with a view to a modification that will bring the full measure of accord of which the fine evidence of co-operation in the French note gives every hope of suc- cess.” Secretary Stimson pointed out that ‘Ambassador Edge and Secretary Mel- Jon are today engaged in discussions with the French government “with wiew to early conclusions.” It has been freely stated that if an agreement could be reached with France there was nc doubt the debt suspension proposal would become an accomplished fact. The developments today give every promise of success. Text of Stimson Statement. Secretary Stimson’s statement follows: “The French note shows a gratify- ing cordiality to the President’s pro- posal. As we understand it, the French government is mainly concerned that there should be no breach in the in- tegrity of the Young plan agrecment. France expresses a willingness to fore- go the retention of any German pay- ments for a year. | ““The President’s plan does not pro- pose a reconsideration or impairment of any international agreements, in- cluding our own debt agreements. His suggestion extended only to the simple | { | “(Continued on Page 3, Column 4) STOCKS AGAIN GAIN $2 T0 $7 A SHARE YLate Burst of Strength in Rail Shares Offset Profit-Tak- ing Sales, By the Associated Press. NEW YORK, June 26.—Stocks closed with an outburst of strength today, led by an excited rally in the investment | railroad shares, Net gains ran from $2 to $7. Trading quieted substantially, in com- parison with the activity witnessed in earlier stages of the recovery, but lead- ing issues rose $2 to 7 and held their advances well despite profit-taking. | United States Steel, after climbing $3, lost part of its rise. However, buying of the merchandising and motor acces- sory stocks during the afternoon, fol- lowing a lively accumulation of steel shares in the morning, sustained inter- est in the rally. Gains of $2 in Sears Roebuck and Montgomery Ward, as well as Grand Union, Spiegel May, Grand Silver and ‘Woolworth. were attributed in part to the strength of the grain markets. Maton Axle featured the automotive accessories with a jump of nearly $5.! Goodyear preferred rose $4 and Timken Roller Bearing and Budd Wheel about $2. Although rumors of a settlement in the Bethlehem-Youngstown Sheet & Tube merger case were unconfirmed, the steel shares were prominent in the day's dealings. Youngstown was up more than $7 at the top and Bethle- hem’s advance exceeded $4. Republic Steel preferred jumped $5.50. Corn products refining. J. I. and Ingersoll Rand were up $5 at their best levels, while American Can, Amer- jcan Telephone and Consolidated Gas rallied $3. The market turned quiet for a time in the afternon, pending news of the debate on the war debt plan in the Franch Chamber of Deputics, and week- end profit taking reducing some of the ins. "The ralls were bid up briskly, how- ever, to the accompaniment of rumors that the Interstate Commerce Commis- sion would shortly act on the petition for higher freight rates. Gains of about 83 to $6 a share were recorded by New York Central, Southern Pactfic, Union Tacific, 'Erie, Baltimore & Ohio and ALGDIEO Stimson Will Fly To New York Today In an Army Plane By the Associated Press. Secretary Stimson, because of the short time until the sailing of the Conte Grande, which will take him to Europe, will fly to New York foday, probably in an Army plane. At his last conference with newspaper men before departing, the Secretary announced that Japan had formally indicated its approvel in principle of Presi- dlent Hoover’s reparations holiday plan. LAVAL EXPEGTED 10 SURVIVE DEBATE Overthrow of Government Unseen—France to Make Demands on Germany. BY PAUL SCOTT MOWRER. By Cable to The Star. PARIS, France, June 26.—Franco- American negotiations on the Hoover plan continued today. Secretary of the Treasury Andrew W. Mellon lunched with Premier Pierre Laval and Foreign Minister Aristide Briand and thereafter began the big debate in the French chamber in which some of the deputies attempted to criticize the French gov- ernment for being too conciliatory and others for not being conciliatory enough. It should be understood that the French resentment against the United States in this whole affair is due not only to the sudden way in which the | project was published without previous | consultation with France, but also to from the United States informing France that no answer would be ac- ceptable except a plain yes or no. Procedure Held “Brutal.” This procedure was felt to be “brutal” and aroused some animosity in high circles. It is not foreseen that today's debates will result in the overthrow of the gov- ernment, but they may to some extent tie its hands, Until the result is known further diplomatic discussion is almcst useless. . One of the principal misunderstand- ings which appear to have arisen be- tween Washington and Paris seems to be the idea of Washington that France is principally interested in the finan- cial aspects of the American proposal. Indications here are that France, while feeling the financial sacrifice keenly, would gladly make this sacrifice if it felt that it would lead to a final peace- ful understanding between France and Germany. France's real aim, thcrefore, is not s0 much to escape from the financial sacrifice included in the Hoover plan as to answer the American proposal in | such a way that conversations between Prance and Germany are bound to en- sue, and then make final acceptance of the Hoover plan in one form or another depend on the cutcome of those con- Versaticns. German Leaders to Confer. This aim apparently is being real- ized. German Chancellor Heinrich Bruening and Foreign Minister Julius Curtius are expected to come to Paris for a talk with M. Briand and M. Laval July 4. What France will ask of Ger- many is thus summarized by one of the leading French diplomatic writers, Saint-Brice: Genulne overhauling of Germany's finances. Austro-German Customs Union and other similar projects for expanision in Central Europe. Cessation by Germany of official agi- tation for revision of the frontlers. A promise by Germany to continue to observe the military clauses of the treaty of Versailles and to drops its demand for rearmament. Otherwise, in the French opinion, there can be no real peace and stability in Central Europe, and purely financial measures will be in vain. (Copyright, 1931). e SOCIETY WOMEN ROBBED ‘Chicagoan and Daughter Held Up and $5,000 Gems Taken. CHICAGO, June 26 (#).—Mrs. Daniel B. Scully and her daughter, Mrs. Jose- phine Nesbit, Both well-known socially, were robbed of jewelry valued at $5,000 parently had followed them home from a theater. the two successive diplomatic demarches | Renunciation by Germany of the! Plan Is Debated | as Laval and Martin Clash. U. S. ULTIMATUM CHARGE DENIED Mellon Is to Meet French Leaders | Tomorrow. PARIS, June 26 (®.—The | Chamber of Deputies, which | this afternoon engaged in de- bate on the reply of the French government to the Hoover pro- posals on war debts and repa- rations, recessed until 10 p.m. (4 p.m. Eastern standard time). By the Associated Press, PARIS, June 26.—The French reply to President Hoover's war |debt moratorium proposal was | vigorously attacked and defended {in the Chamber of Deputies to- | day. | The attack was led by Louis !Marin, Nationalist Deputy, who | declared that the United States ‘had delivered an ultimatum de- |manding that Fronce accept the | Hoover plan. | Premier Laval responded to this statement by jumping to his feet |and asserting, “France did not re- | ceive, an ultimatum.” | “When I received Ambassador Edge | be told me of the circumstances under | which the note was sent. | “Such misunderstandings »s have been charged here do not arise between | two countries as friendly as France and the United States.”" Approval is Forecast. | The debate in the chamber came after |a recess during which the various groups decided at conferences what stand they would take on the Hoover proposal. At the conclusion of the recess it was forecast that the Prench reply would be ved by the cham- ber when a vote was taken late tonight. The radical Left group, Deputy Laurent-Eynac, former minister of war, and Deputy Loucheur, former minister of commerce, are members, de- cided to defend the integrity of the Young plan. They also came to the determination that the French govern- ment must be given assurance the United States Congress would vote for Mr. Hoover's proposal that intergov- ernmental debts be postponed for one year. The Left group also demanded that the government make certain Germany | would ‘not use money turned back to her for dumping goods or for bullding armaments. Mellon to Meet Leaders. Meanwhile negotiations seeking to harmonize the views of the United States and Prance on President Hoover's proposal will open tomorrow between Andrew W. Mellon, American Secretary of the Treasury, and Prench officials. Premier Laval today said he would meet Mr. Mellon and Ambassador -Edge at the ministry of the interior. The French finance minister, budget min- ister and Foreign Minister Briand will be present and technical discussion will take place. The announcement came in the midst of presentation of the interchange of views thus far before the Chamber of Deputies and followed the receipt of a brief reply to the French memorandum on the Hoover proposals, expressing the hope of the American Government that the French government would “take ad- vantage of the presence of the Secretary of the Treasury in Paris and discuss with the Ambassador and with him the various problems arising from the original proposal of the President and the French answer.” The French memorandum, which was handed to Ambassador Edge several days ago and was made public today, followed the broad outlines of sugges- tions previously published. Holds Debt Delay Insufficient. of - which | bY =) = = ON ACQUITTING MAN Justice Gordon Ousts Panel With Two Women in Case Charging Auto Theft. District Supreme Court Justice Pey- toh Gordon became so incensed this afternoon when a jury of two women and 10 men reported a verdict ac- | quitting Arthur Clinton Miller of a! charge of stealing an automobile that | he discharged the jurors from further | service. The term of service of the dis- | charged jurors would not have expired | until July 6. ’ | “Let that panel be d.\.lcharxed," said | the justice. “I don’t want them 'sitting | on another case.” Miller had been charged with steal- ing an automobile belonging to Willlam | R. Spicer August 3, last. He inter- posed an alibi declaring that he was i Atlantic City at the time, but the alibi was challenged by testimony submitted Assistant United Siates Attorney Julian 1. Richards, who was in charge of the prosecution. The discharged jurors are Celia Blu- menthal, 1104 Fifth street; Walter G. Dixon, 2827 Twenty-eighth street; Ed- ward F. Morse, 230 Tenth street, south- east; Willlam H. Pressman, 815 Hamil- ton street; Charles H. Purcell, 1260 Owen place northeast; Louis G. Rich- ardson, 1612 Hobart street; Robert N. Riley, 3615 S street; John R. Rodler, 1038 Newton street northeast; Harry Salus, 1402 Fourteenth street; Michael Samen, 3305 Eleventh street, and Wil- llam G. Seymour, 49 Bates street. TUCKER, KIRK KILLER, | ORDERED TO ASYLUM Slayer, Adjudged Insane, Sent fo| St. Elizabeth's Hospital After Lunacy Hearing. George Pierce Tucker, 32 years old, confessed murderer of Emma Kirk, an elderly recluse, at her home, 819 R street, January 23, 1926, was declared this afternoon to be of unsound mind by & jury before Justice Oscar T. Luhring. He was ordered committed to Howard Hall at St. Elizabeth’s Hospital. ‘Tucker was apprehended at Los An- leks March 18, last, and following his indictment was returned here for trial. He was scheduled to be arraigned this afterncon, but his counsel had asked for a lunacy hearing. Dr. D. Percy Hickling and Dr. Ken- neth A. Kinney, local alienists, were the only witnesses before the jury. They told of their examination of ‘The reply says that the French gov- ernment_declares itself in cordial ac- (Continued on Page 3, Column 2.) —_— GEORGE SUNDAY TO WED SAN FRANCISCO, June 26 (#).— George Marguis Sunday, 36, son of Billy Sunday, evangelist, obtained a license yesterday to marry Mauryne Reichard of Los Angeles. Friends here said they believed Mrs. Reichard to be the beau- tiful Mauryne La Salle, Hollywood Iate last night by three men who ap- | | mannequin, who was named as the “other woman” when Sunday and his first wife were divorced a year ago. Special Dispatch to The Star. NEW YORK, June 26.—Wall Street is an ideal growing ground for rumors— some of them of the wildest nature. One- of the signs that characterize a Case boomhl:xg bull market, such as the Street has in the Jast few days, is a sud- den increase in the rumor crop. And, today, with every one waiting for' the outcome of the negotiations in Paris, between Sceretary Mellon and the French = government on Hoover’s debt plan, the rumors grew and grew. ‘The New York T:lephone Co. had to put dn extra staffs to handle the tele- phone traffic between brokerage offices. One news ticker flashed the .news that Paris had the strongest market in 20 years. This was immediately turned into a repcrt that the Prench mirvistry had accepted President Hoover's scheme in its entirety and this telephoned all over town.. Then followed a report that President Hoover } shortly, moral esident WALL STREET RUMORS MULTIPLY AS DEBT PLAN PARLEYS OPEN |1’ o, s mRernoon suddensy Telephone Wires Seethe With *Tips” on Paris Meetings Between Mellon and French Officials. announce that he had ordered the Federal Farm Board nct to sell any of its wheat or cotton holdings for at least ‘were of a kind with the French cabi- of office.- Presi- y of aid re however, the rumors were as extrava- | as they were flambuoy- 3 ‘weeks ago. Bearish news like rail earnings was passed over with the explanation ‘that the “decline has been ‘checked.” A the response vmnhw rallroads are been, “t through. Tucker at the District Jail and gave their opinion that he is suffering from paresis. Tucker, when asked by th court if he wanted to say anything, just shook his head negatively. Assistant United States Attcrney William H. Collins represented the Gov- ernment and Attorney F. Joseph Dona- hue appeared for the prisoner. BOY ATTEMPTS ESCAPE AFTER PLEADING GUILTY George ' Furman' Spearman Flees After Hearing Sentence. Soon Captured. hanged his mind after entering a plea of guilty to a charge of unlawful entry, when arraigned in Juvenile Court. After being sentenced to one year, the boy climbed out, of a first-floor window of the court building onto a fire escape and fled. - , nz:"r f;“g. :o rfim. however, with a police headquarters was located only two doors from the ocourt mnm Before could get way he was being chased by 12 policemen. After a short run he was overhauled and returned to the court building, and committed to the National Training School for boys. NAUTILUS AT PLYMOUTH Submarine ‘Bound on Arcti¢ Trip Hubert Wilkins the top of the Pole ice this outh from The Nautilus ' 0/"’/‘//5‘6‘ VA (1yp Gans on Wasoion Bise /- Star ¥ RS Ha™ Ver) SHAPIRO-FACING 5 10 60 YEARS Former Millionaire Penniless at End of Skyrocket Realty Career. A penniless youhg man, Jacob B. Shapiro, who made and lost a fortune of $2,060,0000 during his brief realty and construction career here, today was taking l(ock. of his almost .depleted business awaiting court sentence of from 5 to-60_years for using the mails to defraud. Shapiro, who has just celebrated his thirtieth birthday anniversary, was convicted by a District Supreme Court jury last night on all 12 counts-of an indictment charging fraudulent use of the malls to sell real estate in- cumbered by & so-called hidden trust. The jury deliberated for almost nine hours before reaching a verdict. Many ballots are understood to have been taken after Justice Jesse C. Adkins completed his charge at 10:30 o'clock yesterday morning. The first ballot stood 10 to 2 for conviction, court attaches were told, and a ballot just before the jurors were taken to dinner at 6:40 o'clock stood at the same count. Verdict Is Read. After a brief repast the jurors re- turned and 10 minutes afterward a marshal was summoned. and told a verdict had been reached. Justice Ad- kins appeared on the bench an hour later to hear the verdict. ‘The defendant took his conviction calmly, having nothing to say. a conference’ between his counsel, Alvin L. Newmyer; the prosecutor, Assistant United States Attorney John W. Fibelly, and Justice Adkins, Shapiro was allowed to leave the court room in m 3 ;nyer indicated he would file probably ate today or Monday. Justice Adkins . intimated he would not hear the motion until after he re- turned from his Summer vacation, probably in September. The maximum penalty cn each of the 12 counts is 5 (Contiriued on Page 2, Column 1.) TROOPS CALLED AS POSSE CLOSES IN ON KILLER Ry 'Oklahoma Governor Acts Due to Excitement Following Shooting 4 of Deputy Sheriff. By the Associated Press. ‘WATONGA, Okla., June 26.—National G n stood on the alert today in the vicinity of Cleo Springs, & section on the Cimarron River, while & mml closed' in on the place @ colored man killed one deputy sheriff and wounded another yesterday. N Gov. W. H, Mur mm upon re- e over the slaying of the deputy, side After | promoter said: RVAL EXPOSITIN | IN"32 REPUDIATED {Bicentennial = Officials Bar| Use of Official Fete Name | by Promoter in Mails. Use of the words “George Washington | Bicentennie]” in connection with an ambitious “Exposition of 1932” describ- | ed in promotional letters semt recently |to prominent Federal and ‘State off-| | clals hes prompted the George Wash- | ington Bicentennial Commission to re- | pudiate the enterprise in correspond- ence with postal authorities and others. Robert F. Walter, self-styled “creator | cf trade shows, bullder of pageants and | producer of spectacles,” has been warn- ed by Representative Sol Bloom, asso- ciate director of the Government com- commission “to sake such action as cir- cumstances may warrant.” At the same time, in response to a vigorous objection made by Representa- | tive Bloom to the City Post Office, Post- master Mooney has refused Walter's re- quest, for a lock box where mail for the projected exposition could be received here under the name in gquestion. Mooney explained, it is said, that the similarity in names would result in con- fusion. Gets Mail at Office. Walter, describing himself in letters to Representative Bloom as director general of the proposed exposition, has been writing from West Palm Beach. Fla., until recently, when he changed his address to the Colorado Building here. At that building, it was learned today, Walter has no office, but has ar- ranged with a tenant to receive his mail in a seventh floor realty office. At/ this office, it was explained that Walter | is not connected with the firm, and that the mail privilege had been granted as a “temporary courtesy.” Walter appeared at the office early this week and obtained a large batch of mail and telegnm: ‘l’l;omflrn.l::h‘,a:“ of the country, but left hastily w e Te- mark that he would be in Baltimore for a few days. |""He is known to have communicated with Gov. William G. Conley of West Virginia in an effort to obtain his in- dorsement of the exposition, and is re- ported to hayve visited the recent Gov- ernors’ conference at French Lick Springs. Ind., in the interest of his un- dertaking. Governor Withdraws Name. Gov. Conley called the matter to the attention of Howard Sutherland, alien property custodian, who is a member of | the Federal Commission. and the lat- ter communicated with Director Bloom. Later the Governor declined to indorse the project or to permit his name to be used on a list of “honorary direc- tors,” explaining to Walter that he al- ready was connected with the official commission and that “too many organi- zations might complicate matters.” In a letter to Bloom, the exposition “I will now carry on to immediate action, creation, promotion and actual building of an exposition park in ot directly adjacent to the City of Wash- ington as a permanent, dignified park enterprise of wide scope and civic pur- |pose @nd theréin will present and operate a George Wash! Bicen- tennial Exposition of 1932 for six solid months, May to October. Succeeding years of Exposition Park to be devoted: 1933, to Pan-American ition—ex- hibits, displays and ltmm of Latin | kutsk at midnight tonight. SIS ST S DING OFEN BROKEN mission’s designation will compel ‘the s b e i every city block af tion is delivered to () Means Associated Press. “From Press to Home Within the Hour” The Star’s carrier system covers nd the regular edi- Washington homes as fast as the papers are printed. Yesterday’s Circulation, 113,053 TWO CENTS. HILLIG IN DENMARK, POST AND ,GAHYi LAND- IN SIBERIA Copenhagen Crowd Greets Americans as King Gives Dane Knighthood. WORLD FLYERS PLAN LONG JUMP AT MIDNIGHT Have Covered Nearly Half of Dis- tance on Tour in Less Than Four Days. IRKUTSK, Siberia, June 26 (#).— ‘Wiley Post and Harold Gatty, Amer- icans fiying around the world, landed at Novo Sibirsk, Siberia, at 1:31 p.m. (Greenwich time) today from Mos- “cow, after a flight of 2,000 miles. ‘They planned to resume their flight to Irkutsk at midnight tonight. By the Associated Pr Both of America's latest transatlantic airplanes performed well today. 1 Otto Hillig and Holger Hoiriis com- | pleteg their interrupted journey from | Harbor Grace, Newfoundland, by land- ing at Copenhagen at 2:10 pm. (8:10 a.m. Eastern standard time), They were enthusiastically welcomed. King Christian - of Denmark this | morning conferred the Knighthood of | ‘Danebroze on Hoirils, who is a native of Denmark. Wiley Post and Harold Gatty, on an air tour rcund the world, hopped from Moscow to Novo-Sibirsk, a distance of 1,450 miles. Since leaving America they have covered about 7,000 miles, almost half their journey. They will continue to Irkutsk, 1,050 miles farther on, at midnight tonight. REACH NOVO SIBIRSK. i Post and Gatty Now Nearly Half Way on Tour of World. IRKUTSK, Siberia, June 26 (#).— Wiley Post and Harold Gatty, Amer- | icans flying around the world, landed at Novo Sibirsk, Siberia, at 1:31 pm. (Greenwich time) today from Moscow, after a flight of 2,000 miles. They planned to resume their flight to Ir- The Americans, who left Moscow at 5 am. (10 pm. E. 8. T.) Thursd (Continued on Page 4, Column 4.) WITH 11 ARRESTS Conspiracy Charged in Liquor Warrants Bringing Num- ber of Raids. An alleged bootlegging ring, which, police say, has been active in the Dis- trict for more than a year, was broken up. today with the arrest of 11 persons in various parts of the city on warrants chai g conspiracy to violate the pro- hibition act. Tén of those arrested were taken into custody between 8 o'clock last night and 3 o'clock this morning by a squad headed by Sprgt. George M. Little of Detective Headquarters, while the elev- enth man walked into the office of United States Commissioner Needham C. Turnage during the reading of the Chl“'“ this morning and gave him- self up. Arrest of the alleged bootleggers cul- minates nearly a year of investigation by District and Federal authorities. Four points of operation of the gang have been broken up since March of this year, according to Sergt. Little. The ringleader in the conspiracy is| said by police to be Harry Zimberg, alias Jack Zimberg, alias Harry Zim- berg, who was taken into custody st 1616 East Capitol street early today. He was held with his brother, Joseph Zim- berg, alias Joseph Gary, on bond of $5,000. v Arrested With Wife. The latter was arrested with his wife, Helen Zimberg, alias Helen Gary, at 1142 Fifth street northeast, a few hours after they had evacuated their residence at 802 E street northeast. Mrs. Zimberg appeared in Turnage's office this morn- bearing a baby in arms. She was held on bond of $2,000. Others ested and their respective bonds are: Frederick Spasaro, taken into custody at 88 K street northeast; bond, $3,000. Charles E. Mills, alias Eddie Mills, arrested at 1819 H street e ; bond, $3.000. Nick Mac- , ‘captured at 1616 East Capitol ;_bond, $5,000. Rocca Pelicano, alias Pelicona, placed in custody at 1321 Pennsylvania avenue southeast; bond, $2,000. Michael Spinell, alias Spinill, found at 413 K street northeast; bond, ' $2,500. - Angelo _Schiotterigglo, (Continued on Page 2, Column 5.) (Continued on Page 2, Column 8.) By the Associated Press. SRR A es hit both the mai Nt eaving & hilly | divorce markets Jast year, trail of lean, lofn figures at the Census Bureau. Of 40 States on which the fig- uring is finished, 33 showed decreases in marriage and 3¢ divorce. - MARRIAGES AND DIVORCES SHOW DROP AS EFFECT OF HARD TIMES 33 States Out of 40 Have Decline in Weddings and 30 Have Fewer Decrees of Separation. | laid the lack of divorces at the door of e T s few flourishing Gretna Greens and & divorce hmmhmfll&md“d 1 | i & ge el POST SALE HALTED AS DLEAN SPURNS ONLY TWO OFFERS As Co-Trustee He Claims Veto Power in Any Dis- posal of Newspaper. COUNSEL: STAGE CLASH ON FINANCIAL OUTCOME Other Prospective Buyers Balk, Mrs. McLean's Deal Failing of Consummation. The proposed sale of the Washington Post was halted unexpectedly in the District Supreme Court this morning when Edward B. McLean, the owner, announced through counsel that he would exercise a veto provided by his father’s will and block the sale. McLean is co-trustee of the paper, and his announcement came hard on the heels of a statement that the other trustee, the American Security & Trust Co., and the guardians of the McLean minor children were prepared to peti- tion the court to accept the offer made for “the paper by William Randolph Hearst, publisher of the Washington l'l'lms and Herald, rather than that of David Lawrence, publisher of the United States Daily and president of the Con- solidated Press ‘Association. Later it was stated that no appeal would be made. McLean’s stand was immediatels con- tested by Lucien H. Mercier and Ralph B. Quinter, guardians for the children, but J. S. Flannery of counsel for the American Security & Trust Co. held that there was no chance under th circumstances of a sale ‘through. Mercier later said that the guardians ‘would not appeal. Refuses Two Offers. McLean’s attitude was made known by his attorney, George B. Praser, who presented a written statement to Justice Jesse C. Adkins, presiding, in which Mc- Lean explained that he withdrew the approval which he had given to the original offer of Lawrence; that he would not approve the offer by Hearst, and that he would not “at this time” give his approval of a sale to any one. It was his contention that under the terms of the will of his father, Jobn R. McLean, of whose estate the Post is a part, he holds the veto power in any sale. After the hearing McLean | told newspaper men that he was now IW ing the sale of the paper “because of my children; because I only learned in the last few days that if I sold the paj I would threw 300 men out of employment, and because I want to keep the paper.” McLean bas been seriously ill with a heart attack at his home, Friendship, for some time and his appearance at the hearing was not expected. Other Bidders Balk. He was accompanied by his elder son, John R. McLean, 2d. Mr:. Eva- lyn Walsh McLean, his estranged wife, who has fought since the sale of the per was broached fo retain it for their boys, John R. 2d, 16 years old, and Edward B, jr., 13 years old, was not in court today. They also have another child, Emily, 9 years cld. ‘The offer which Mis. McLean was €x- pected to make for the Post did not materialize. Today's hearing was an adjournment of one held 10 days ago, at which time Frank J. Hogan, counsel for Mrs. McLean, obtained an additional period in which a bid for the paper would be received, declaring that she had a backer who expected to be pre- pared to take over the paper and then allow repurchase by the McLean boys when they reach maturity. Ner did two other offers, which had been promised by Attorneys W. C. Sul- livan and W. J. Hughes, jr., at the last hearing, materialize. Today's hearing was productive of several clashes be- tween counsel prior to the collapse of the proceedings, when Mercler sug- gested that it might be to McLean's financial advantage to block the sale of the paper under the terms proposed, Lean with such motives. that Praser told him that he thought McLean was entitled to any profit that might accrue from the sale of the paper if the terms met his original wishes. Fraser flatly denied making any such statement. 4 % Trust Company Shifts Stand. At the outset of the hearing, Corcoran Fhom, president of the American Se- curity ‘& Trust, took the stand and under questioning from Mr, Flannery said that while there were but two offers for the paper before the trustees, that of Lawrence and that of Hearst, that both had been amended from their original form, and that in an all-day conference yesterday of all the interested parties it had been decided to withdraw the original application for ratification by the court of sale to Lawrence, and to file a supplemental petition recommend- ing sale to Hearst. Thom recalled that the offers involved the same sum, $3.- 000,000, and he said that it had been decided that the Hearst offer would furnish “the better security” for the bond issue which would be behind the transaction. 5 At this juncture Maj. Julius 1. Peyser, who acted as broker in the transaction with Lawrence, arcse to ask if McLean had been advised of ‘the change and when he had been advised. _ Mercier Jeaped to his feet and as-eq (Continued on Page 2, Colum= 23 ARE RESCUED IN LAKES STORM Customs Boat Rushed to Sceme of Overturned Craft—Two Killed in Cleveland. it persons from Lake Erie by rescue parties and all missing following the storm were B orge. Tenno. & farmer near Yale nno, a_farmer s Mich,, was killed i 1d, near Mount t. Selfridge fl:e“fid bangar when, d blew down a vere Gharies “Longava ‘ot