Evening Star Newspaper, August 19, 1931, Page 3

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No job too small BUDGET PAYMENTS if dest 3 FLOOD c nn“\' St. Tiny, Dee. 2700 V\pn Cley ‘o619 We Have Moved w:m‘l “The Million Ready-made white vlnn screen doors. WAR DEBT REVISION URGED BY BANKERS nggm Commnttee Makes Recommendation as Step Toward World Prosperity. (Continued From Pirst Page.) | | |to tegard the situation as stable or permanent.” | A committee representing Germany’s | creditor nations, meeting alongside the { Wiggin group, agreed to recommend to | their central banks that existing short- term credits totaling about $1,200,000,~ {000 be extended for a further six- | month period. | After many hours of sharp discussion, the German spokesman agreed to per- {mit the gradual pertial withdrawal of | Reichsbank balances now held by for- | eign depositors. These had been frozen in_ accordance with the German gov- | ernment's decree and had caused much | displeasure among foreign depositors in German_banks. The Wiggin Committee, recognizing Germany's problem as part of the larger issue deeply affecting the rest of the the normal process of investment of fresh capital should be resumed in or- der to increase the purchasing power of the world. Tariff System Hit. The report swung a heavy club on structing commerce and rendering it world, asserted it was essential that | ariff systems which it said were ob- | THE _EVENING | | COUNT STEFAN BETHLEN. ation, as the shows, but not so great. PROBLEM FOR BANKS. report clearly the progress is Wiggin actically British Foreign Office Takes View on Debt Proposal. LONDON, August 19 (#).—The Brit- ish foreign office had not been officially acquainted this morning with the re- | port of the Wiggin Committee recom- & | step out arose from Hungary's impossible for burdened debtor nations mending the revision of war debts and vt | viewpoint long stressed by the in | to sell their goods and to pay their debts. “So long as these obstacles remain,” it was said, “such movements of cap- ital must necessarily throw the world financial balance out of equilibrium. | Financial remedies alone will be power- less. to restore the world’s economic i prosperity unless there is a radical change in this policy of construction.” 1t was expained in informed quarters that the committee felt that in defin- ing the issues clearly and in recom- mending the promptest possible action it had dore a constructive work of the first, importance. “More then that"” said a distin- guithed international banker, “it is the §irst./ time since the war that such onslusions have been reached unani- mously.” ADMI\ISTRATION SILENT, Officials Say Time Is ‘lMd to Study | Recommendations. The announcement of the Wiggin | Committee of Bankers in Basel, Swit- | zerland, that European political dis- putes should be settled and Germany's reparations payments revised was re- ceived here without comment by ad- ministration officials. Time will b> re- quired for a study of the text of the recommendations before aaything can be done here, officials said. Several days ago Secretary Stimson, | who is abroad, sent to the State De- partment here categorical denials of persistent newspaper rcports that he was discussing a war debt revision plan with Premier MacDonald of England. Amcng the many plans President Hoover and his sdvisers considered be- | fore the announcement of a year's moratorium on war debts and repara- tions payments was one for a general re-exzmination of the capacity cf gov- ernments to pay their obligations. Ad- ministration officials emphasized, how- ever, that such a program had not been | the subject of international discus- sions. Bomne withorities last night expressed the opinion thet President Hoover wou'd take advantage of Stimson's study of the whole European situation on the Secre- | tary's present trip and would discuss the eccnomic and political necessities | with the cabinet member upon his return. GERMANY GETS NEWS. Bankers' Plan Recelved With Apprehen- | sion As to Attitude of France. BERLIN, August 19 (#.—News from i recommended immediate revision of reparations was received today with in- | tense interest, but with apprehension as to the attitude of France Memories of the joy and disillusion- | ment which followed the announcement | |of the Hoover moratorium plan two months ago tended to dampen any tendency toward overoptimism, al- though the committee’s were welcomed as corroboration of the | government and its economists that po- flitical debts are enemies of interna- tional financial stability Particularly effective as a_brake on Finanee Minister Flandin of France on | reparations payments from the stand- | point of the restoration of war-time { devastation and damage. | These were widely interpreted here as a warning that France would not al- ow payments to her to be considered in the same category as other political The news arrived too late for com- | ment by the morning papers ! Important Document, ‘The first afternoon paper off the { press, the Democratic Berliner Zeitung { devoted its front page to a summary of | the report with an introductory editortal characterizing it as “the most impor- {tant document on the ‘Gierman eco- nomic situation since the experts' report that led to the Dawes plan The paper said that the report above lall recognized the creditworthiness of Germany and established that her pres- {ent credit difficulties are due primarily | to political causes. “It defines the Ger- |man situation so clearly.” the paper said, “and addresses such unmistakable demands toward the governments of the ¥ | nations that it cannot remain without for that decisive consequences | economic policy and and the world.” The reaction in financial was not particularly optimistic. The | achievement of a six-month extension of short-term credits is considerably | less immediate relief than had been ex- pected from the Basel negotiations. The { promise of more cistant relief was re- ):;\rdfd as being heavily conditioned on further conferences which would be un- | likely to make rapid progress. Cabinet Members Silent, of the Wiggin report was binet niembe:’s desk this | morni but no responsible minister !'was willing to comment officially Informally high officials already hnd revealed that Germany is satisfied wi the report as representing tne bm which may be obtained under the cir- cumstances. There is considerable satis- faction at e references to the neces- sity for immediate revision of repara- tions. Tn the words of one prominent finan- cial expert, it is unlikely that tre sos0 | be any statement from members of the Lol at least until the American Germany’s of Europe cabiny cussion _of the report is known. This official was anxious that the Ger- man attitude be not misinterpreted in luw a IIy as to indicate that Germany not appreciate to the full the year of respite under the Hoover moratorium. Another reiponsible official summed up, the Wiggin report thus: n general it is good: tfe facts are nnonnble although n is -o technival | gt careful analysis will nen-uy demands upon are some- what from the of na- e Basel that the Wiggin Committee had | declaratiors | Germaa | circles | re will | attitude toward the international dis- | reparations, | Pending official word from Basel | there was no comment here on the re- | port. It was said, however, that the whole matter may now be regarded as a problem which involves the banks |and the financiers primarily and not | the governments. WALL STREET SATISFIED. | Revision Plan Closely in Line With Opinion of Bankers. NEW YORK, August 19 (#).—In- | formal comment in Wall Street banking circles indicated considerable satisfac- tion today with the report of the Wig- gin Committee on German finances. Th: report of the committee | closely in line with opinions which | have recently been expressed infor- mally by prominent bankers. It has been felt in Wall Street that while the Young plan payments are ! due to be resumed in about 10 months, no long-term loan to Germany is pos- | sible. Bankers foresee little prospect of | sufficiently rapid revival of world busi- | ness conditions to make resumption of | payments feasible on the old basis. | It has been pointed out by prominent | bankers that while the problem of some ! new deal at the end of the one-year moratorium period hangs over the sit- | uation, German bonds are unlikely to find a ready market, and the {of funding any of Germany's term indebtedness remains decidedly cloudy. The part of the committee’s report dealing with the necessity of settling | European political disputes was in line | with opinions expressed in Wall Street at the time the Reichsbank unsuccess- fully sought a $500,000.000 loan a few weeks ago. At that time New York bankers vere distinctly unenthusiastic over entering into any plan the benefi- cial effects of which night. be lost through political frictions. 'L SE! | PARIS APPROV. ‘uvmon,mn Appears to Harmonize With French Polic; BY PAUL SCOTT MOW) By Cable to The Star, PARIS, Prance, August 19.—French | nature without reservations of the | Wiggin report at Basel on German credit | aid and its sensational recommendations | | for revision of war debts, reparations | {and tariffs appears to be in complete t. | harmony with the present French policy [n( co-operating fully with Great Britain, the United States and other powers in all measures which the French believe to be for the common good and which do not directly conflict with Prench in- terests. ‘The economic situation of this coun- try, while privileged for the time being. bids fair to suffer if the world depres- sion continues much longer. The ac- | cumulation of gold here has made re- tail prices and manufacturing costs rise at a time when prices everywhere else are declining. These increased costs, to- gether with lowered purchasing power | . abroad, everywhere have hurt French foreign trade. The French commercial balance is increasingly unfavorable, and if it con- ! tinues so, unemployment here is bound to increase rapidly within another year, | ! France, therefore, has an interest to co- operate for the common good. Wkat the Prench apparently are | today I'AR. BETHLEN CABINET WASHINGTON, INHUNGARY FALLS, Count Julius Karolyi to Form New Government Under Horthy Mandate. Br the Associated Press. BUDAPEST, Hungary, August 19.— The Bethlen government, headed by Count Stefan Bethlen, who has been premier since 1921, resigned today, and | Count Julius Karolyi accepted from Ad- miral Horthy, regent, a mandate to form | & new government. ‘The only explenation thus far given | for the resignation is that, after col sidering the general situation last night, and “In view of changed circumstances, { the government felt bound to resign. Conference Called. On the advice of Count Bethlen, Ad- | miral Horthy, regent of Hungary, called into conference John Tolescky, former finance minister; former minister of the Bethlen cabine! Paul Pesthy and Stephen Rubinek of | the United Government party, and Dr. Alexander Ernszt, minister of social ! welfare and a leader of the Christian | Economic party. In the absence of any definition of the “changed circumstances” it was be- | lieved that the premier’s decision to | finan- | cial crisis. Banks Also Closed. Shortly after the closing of German banks and stock exchanges at the height of the German crisis, garian government followed suit on the | ground that it was taking preventive measures against Hungary's being drawn into the German coilapse. Since then the banks have been reopened, but under certain restrictions Two weeks ago the Parliament gave | the government special powers to deal with the financial situation and drastic steps were taken to prevent the export of capital. Last Friday a contract for an _international $25.000,000 loan Hungary was signed at Paris. Count Stefan Bethlen, who resigned after 10 years as premier of | Hungary, was the dean of Europe’s | government heads. In April, 1921, statesman made his first parliamentary speech as premier, and in the years since then he carried Hungary out of internal chaos, guided sher away from bankruptcy and led her to her present Pposition. ‘When he came into office after four | succesive cabinets had failed to restore stability, he found Hungary reduced by | the Treaty cf Trisnon by 68 per cent | of its territory and 59 per cent of its | population. The rafiroads were broken down, the currency was #lmost worth- less, foreign relations were shaky and King Carlos still was wying to regain, his_throne. The League of Nations took over (hf finances, placing Jeremiah Smith of Boston in charge, and in two years the | financial tangle had been straightened | out and Mr. Smith was on the way home, having refused a fee of $100,000 for his services. Count Bethlen was much of the success habilitation. BOY MADE MOVIE STAR Four-Year-Old Jerry Tucker of Chi- cago Gets Paramount Contract. HOLLYWOOD, Calif., August 19 (#).— Red-haired Jerry Tucker of Chicago, not quite 4 years old, was taken su Genly from the extra ranks yesterday and placed under a long-term starring con- tract by Paramount Studios after less than a year in the film colony. Jerry tecently attracted attention by credited with of this breaking into a perfect recitation of | Kipling's “Gunga Din” during an idle period in work on a production in TPhich he was playing an extremely minor part. Questioning developed he knew more than 100 pgems by memory. Marriage Licenses. Wallace V. King. 21 Takoma Pa d_Dorothy L. Van Horn, 18 21. and Fannie Smith, 27 Builock Norris Harves. a ev. Charles J. Mitc William, Walker and Esther G. Good- rloo, Towa; Judge Rob- willing to envisage is recuction but not | ¥ cancellation of reparations; provided war debts are reduced proportionally. What they apparently are unwilling to envisage is a complete cancellation of |, reparations, even in ccnnection complete cancellation of war debts. 19: Copyrizht with PLAN “ENTIRELY SOUND.” Paul M. Warburg Approves Proposal ol Wiggins Group. NEW YORK, August 19 (4" Warburg, chairman of the Manhattan Co. and one of the organizers of the Pedera] Reserve system, today described the report, of the Wiggins Committee as entirely sound. Mr. Warburg said he was committee had the courage to go to the fundamentals” the German credit problem. He considered it a hopeful sign that Emile Moteau. former governor of the Bank of France had signed the re- vort as the Prench h representative. RYE REGULATION PLANNED | Germany to A1l “glad the ' w Smaller Duty on Imperts Replacing Bxports. BERLIN. Auzust 19 () —In addition to reintroducing the export bounty | system on wheat, the German govern- ent has decided tc regulate export: and reimports of rye along similar lines 1and has fssusd a decree to that effect Under the new regulations exporters fof rye will receive certificates enabling | them to impor: an equivalent amount of foreign rve 2t = duty of only about $2.50 | a ton, which is a substantial rebate. Will Rogers } l Sa‘\’s: BE' HILLS, Calif.—What's | all the scanda! today? Good deai of ! talk of ns- meeting ear ceount of the unemp loyed Well T believe if Iwasunem- ! “ntlllttle Xy Ky Landers Vincer Leonides O. Landers Earl C. Starke Takoma Par 37, Gravson Hitchins, and Dorothy E. D Rev. Eugene 2 2 Wilsa Newport va. Asland 4. Mount Pa ci Bamvel Levin. 26. avd FPanaie Perlin. 2 both of Ballimore, M4; Rev. Solomon H Mets, H _McGloth Beriha M. Swaim. Rev r. 24, this city. snd Winsion-Salem, N. © 26, this iile, Va vt Rev.' Allan r Poore Edcor H Brovn, Myere 25. this_city 20, Hager M. A town e aF UNITED * STATES | TORAG OMPANY ‘Vhen a customer says, “I sent & friend to you,” we can’t escape the conclusion that the more tial hel mn the gfi‘ourboy-" recommendation was in- inspired by perfect satisfaction. yr Sounds reasonable, doesn’t it? *‘ c‘"‘xmbeof 1843 if Count Julius Karoly l.’ the Hun- | to! the slim, pnlo-pllvlng‘ Te- | a Rev. | and Mary Rbv. H. W D, €. WEDNESDAY, AUGUST 19, 193L ing Short-Term Credits By the Associated Press. BASEL, Switzerland, August 19.—The cfficial summary of the Wiggin Com- mittee’s report, calling for revision of | tlement of European disputes, reads as | follows: “The report of the Financial Com- mittee, which was set up by the Bank for International Settlements on the recommendation of the London Confer- ence ‘to inquire into immediate and Turther credis needs of Glermany and | portion” of her short-term credits into long-term credits’ falls into two parts, according to the wording of these terms of reference. | “The first part, dealing with the im- mediate credit needs of Germany, refers to the fact that the position which has arisen in Germany Is largely the result | of the world depression and partly the | Tesult of the particularly vulnerable po- | { sition in which the country found itself. | “During the seven years between 1924 and 1930 Germany's foreign indebted- | ness grew faster than the assets owned by her abroad: 18,200,000.000 reichs- | | marks mated at 25,000,000,000 reichsmark | which, of course, is in part offset by German foreign ' assets amounting to 1 9.700.000.000 reichsmarks, leaving a net | debt to forelgners of about 15,800,000~ 000 reichsmarks. Paid Out of Borrowings. “It is largely out of borrcwing that reparations have been indirectly met In two years a surplus of exports has provided assistance, been, of course, receipts from services. “And it follows that, in the main, yments out®of Germany's resources and will ! not be so effected until the appropriate | part of these commercial debtis are re- | paid, in the form either of gold, goods | or services. | _“In the immediate past it appears that in 1929 there was a balance be- tween imports and exports, but in 1930, when a faverable commodity balance was achieved, surplus and Invisible exports provided two-thirds of the amount required to meet Germany’s for- | leaving one-third still | i | eign obligations, to be met by borrowings. And this was the most favorable year from this point |of view. “The weakness of the German finan- | | cial situation at the end of 1930 arose out of the fact that, whereas Germany’s | foreign short-term indebtedness was no | {less than 10,300,000,000 reichsmarks, | | having increased to that figure from | 14.100,000,000 reichmarks at the end of | 1926, Germany’s short-term _invest- | | menis abroad,” including foreign ex- Ichange at the Reichsbank, amounted | to only about 5,300,000,000 reichsmarks. | : | “The increase in short-term indebt- | edness was quite out of proportion to | the growth of foreign trade and there | is little doubt that it was used to a | very large extent to replace working | capital when long-term money proved | not available, In Vulnerable Position. “While it would have been better if | these short-term debts could have been | converted into long-term debt, it was | probably not possible and in any event | was not done. When, therefore, an | outflow of capital occurred it found | Germany in a very vulnerable position, | which, in spite of an export surplus existing during the first six months of 1931, produced a serious crisis. “It is estimated that the withdrawal from abroad of short-term funds in the first six months ~* 1931 amounted to 2,900,000.000 reichsmarks, in addition to which there was a certain amount | of selling by foreigners of long-term | investments in Germany and purchases by Germans of Jong and short term | investments abroad. In all the outflow | | appears to have been about 3,500,000 | reichsmarks. “The committee expresses no view | | regarding capacity of Germany to pro- | | vide her capital needs out of an in-] ternal savings, but emphasizes that the | piling up of her obligations is no ulti- { mate solution of her problem. “The immediate needs involve the | | cessation of withdrawals, for which { purpose the committee has been in | touch with the bankers regarding the so-called ‘stand-still' agreements with foreign countries whereby _existing credits will be maintained. The com- | | mittee concludes that uniess part of | the capital withdrawn can be replaced, economy of Germany will con- ue in a condition of severe strain. Assets Needed in Trade. “It is not believed that the mobiliza- tion of German assets abroad provides a remedy for the situation, since most of these assets are need>d in connection with German trade and industry, and so |are not avai'able. ‘The other possibility would be for Germany to secure foreign { exchang» by drastically reducing her im- ports end making every -effort to in- | crease her exports. This solution is not one which commends itself to the com- mittee since it would involve dislocation of the economic life of Germany and would also aggravate the world position | by reducing the sales of other countries in cther markets “The committze is of the opinion that ! | We Make it Hard for You to Use Scrub Tires by Making it EASY to Buy U.S. Cash or Credit Your Own Terms Pay $ and Leave for Good s Summary of Revision Plan Wiggin Committee Repo.rt Deals With Immediate Credit Needs of Germany and Possibility of Convert- war debts and reparations and th> set- | to study th> possibility of converting a | | There has been a rapid recovery of Ger- | changes are such as to make the is- Her total indebtedness is esti- | | powers are established on a basis of and there have | made abroad by Germany | Curing these years were not effected | | imperil the maintenance of her finan- | essential that the process of investment | Grand Rapids Trust Co. Wins Suit Into Long-Term Loans. it Is necessary 1 nthe general interest as well as in that of Germany that the existing volume of Germany's foreign credit be maintained. anc that part, at all events, of the capital which has been | withdrawn should be replaced from for- eign spurces, though not in the form of short-ferm credits, but in form of long~ term Joans. “The second part of the committee's report-deals with the possibility of con- verting a portion of short-term credits into long-term credits. The committee arrives at the conclusion that the Ger- man economic position does not appear unfavorable for such a development. | many’s_export trade in recent years. While her public finances have been subject to criticism, the present gov- ernment has given proof of its determi- nation to put Germany's finances on & sound basts. Nevertheless the prices of German securities on foreign stock ex- sue of s long-term loan under the present circumstances impossible. Mutual Confidence Necessary. “Two fundamental difficuliies remain to be overcome until the relations be- . tween Germany and other European nutual confidence there can be no 8s- Surance of continued economic progress. The second condition Yelates to the ex- | ternal obligations of Germany. So long as these obligations, both private and public, are such as to involve either & continuous increase in snow-ball fashion of the foreign debt of Ger- many, or alternatively, a_disproportion between her exports and imports on such a scale as to threaten economic prosperity of other countries, prospec- tive investors are not likely to regard the situation as stable. “The committee believes it to be essentlal that before the period of prolongation of _credits recommended | by the London Conference comes to an | end the powers represented at the Lon- don Conference should give assurance that international payments to be made by Germany will not be such as to cial stability. “The committee recalled that the German problem is also part of the larger issue which affects the whole world, In order to revive demand and thus check the fall in prices it is of fresh capital should be resumed “Secondly, Germany has provided & forcible illustration of the fact that the world has been endeavoring to pursue contradictory policies in de- veloping a situation where annual pay- ments of large sums have to be made by debtor to creditor countries, while at the same time putting obstacles in the way of the movement of goods with which to make such payments. Financial remedies are powerless to restore economic prosperity unless there |is a radical change in this ey, “The report terminates it] the sentence ‘we therefore conchfde by urging most earnestly upon all ‘he governments concerned that -they lose no time in taking the necessary meas- ures for bringing about such condi- tions as will allow financial operations to bring to Germany—and thereby to the world—sorely needed assistance.’ “Annexed to the report are tables £'s. 7g some of the data upon which the coms. ttee based its conclusions and which have a bearing upon the situa- tion in Germany as described in the | report.” —_— GETS $200,000 JUDGMENT Against Power Company. GRAND RAPIDS, Mich., August 19 (#)—A judgment of $200,000 against the United Power & Light Co. was en- tered yesterday by Judge Fred M. Ray- mond in the United States District | Court in a suit of the Grand Rapids | Trust Co., receiver for the defunct Grand Rapids, Grand Haven & Muske- gon Railway. The litigation, which started five years ago, was based on a charge thai the United, which owned all the stock of the defunct firm, paid itself dividends out of the principal instead of earnings. OWNERS We reauest a listing of your property Give full details A ourchaser can be recured. WHITEFORD & JAWISH, INC. 236 Southern Bldg. National 1800 LASTIC HOSIERY Fitted Professionally GIBSON’S 917 G St. NW. ROYALS Tire Trouble ‘Hyde Promises U. S. Loans | that the Government will maks loans | available to farmers in the more seriously | | chase of live stock feed to carry lhrm 663,056,445 Musical Notes. The statisticians in one of the big radio broadcasting systems calculnte that their bi(gest trans- T sent forth into the ether waves 663,056,445 musical notes last_year. Perhaps their experts would also be equal to the task of figuring out how many musical notes—all of them unfailingly de- | lightful to the listener—are broad- jcast each year by the sound of | clear, sparkling American ice as it tlnklu its cheery message of wel- Secretary Hyde of the Agriculture | come coolness in the water glasses Department gave assurance yesterday Of the thousands of homes and ! restaurants American serves. American CE ompany 1,000 NEW BOOKS 87c PAUL FARM AID PLEDGED FOR STRICKEN AR to Help Feed Live Stock This Winter. affected drought areas of Montana and | North and South Dakota for the pur-| through the Winter months. The Secretary had just returned 10‘ Washington from a personal survey in | those three States and in Towa and said ‘‘unquestionably, something must b@ done and we will meet the situation.” Ee outlined the conditions as he found them at the President’s cabinet meeting | vesterday. $15,000,000 Fund Left, | While about $15,000,000 remains from | the emergency fund appropriated by the | Iast Congress, Secretary Hyde will study | reports from county agents who made | surveys soon after President Hoover | promised Federal assistance before he announces the extent and character of | the loans. The first announcsment, it | was indicated, probably will concern drought Alun; with grasshoppsr dam- age in Iowa, Nebraska and Minnesota. Mr. Hyde declared that little could | be done this year in controlling the grasshoppers. This problem, he added, will come next Spring. Insects already PEARLMAN 1711 G St. N.W. have laid their eggs,'and entomologists look for another outbreak next year. The grasshopper States have asked for Government funds with which to buy poison bait. Red Cross Is Helping. The bad drought spots, the Secretary explained, were in Central and North- eastern Montana, Normwestern North Dakota and Eastern and Southern South Dakota. Red * Cross,” he asserted, “is | now feeding and caring for farmers in | these sections. It has assured me that with local resources it will be able to care for all problems except that of live stock feed.” Subscribe Today It costs only about 1% cents gogaiiaaat ve ington's per delivered to you rmmrm'ml; grery evening and Sunday morn- ing. Telephone National 5000 and the delivery will start immedi- nuly '1";1: nmm Annt -m col- end Come to Our 3 Yards for From Many Wrecking Jobs Easily Seen—Easily Selected For All Your Building Needs Large Selection—Lowest Prices Majn Office—ISth & H Sts. N.E. Downtown—6th & C Sts. S.W. Brightwood—35925 Ga. Ave. N.W. Used Material Come to Our 3 Yards All yards open Saturda; 30 p.m. Westchester’s NEW Addition pictures to you here the beauty of the new Step-down living rooms Anm Apartment in a Park Features Few Private Homes Enjo 19F Imagine the delight of living surrounded by advantages such s these—colored - tile hath rooms, colored and fan-ventilated ~kitchens, Colonial corner cabifiets, indirect lighting. patited panel walls, wrought-iron rails, recessed telephone cabinets, parquetry fidors and new phantom-type radiators. Large, well-ventilated and artistically designed rooms...at rentals much less than you would expect. . Rental Office on Premises Cecupancy October. 1931, Reservations now being made.

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