Evening Star Newspaper, October 14, 1931, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy with showers tonight and prob- ably tomorrow; not much change in temperature. Temperatures—xHighest, 66, at 4 p.m. yesterday; lowest, 52, at 11 p.m., yesterday. Full report on page 9. Closing N.Y. Markets, Pages13,14 & 15 he — 31,042, [FEntered as second class matter WASHINGTON, D. C, No. post office, Washington, D. — SPANISH CABINET REPORTED RESIGNED AS ZAMORA QUITS IN CHURCH DISPUTE Assembly Votes Amendment to Constitution Dissolving All Extra-National Orders of Religious Groups. President Quits CATHOLICISM REPUDIATED BY REPUBLIC AS ITS FAITH Fist Fight Occurs in Debate on Billl to Nationalize Property Which, Permits Seizure if Forfeiture Is Considered Benefit to State and Demands Allegiance. PRESIDENT NICETO ALCALA ZAMORA. SHELBY TO RETIRE R FOROE NOVEMBER | By the Associated Press [ with the resignation of President | Niceto Alcala Zamora, which was | followed quickly by reports that | his whole cabinet also had stepped | out. Reports of the cabinet resigna- tion came from persons in a po- gition to know what was going on. The cabinet assembled at the home of Indalecio Prieto, the finance minis- ter, shortly after Senor Alcala Zamora's gesignation was announced. The ministers confirmed the Presi- dent’s retirement and then, it was re- | Best, under present arrangements, liably reported, decided to indicate| The Board of Police and Fire Board of Surgeons Finds Pratt’s Aide Physically In- capacitated for Duty. Inspector Willlam S. Shelby, assist- ant superintendent of police, will retire for physical disability on November 1 HOOVER'S CREDT| GROUP IS READY TOBEGINOPERATION Relief Organization Expected to Start With $170,000,000 as Local Bodies Form. TO BILLION IF NEEDED Committee Flooded With Subscrip- tions for Initial Offerings of Debenture. — By the Associated Press. NEW YORK, October 14.—Local or- ganizations were being set up in vari- ous parts of the.cougiry today, as units in the new National Credit Corporation, while the central organizing commit- tee continued its labors with last-min- ute details in New York. " It was explained today that all in cations point to the beginning of ac- tual operations in extending loans to banks by the first of next week. The corporation is expected to start with s WITH SUNDAY MORNING EDITION bening St “I'rom PFess to Home Within the Hour” The Star’s carrier system covers every city block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. Yesterday’s Ciréulltion, 114,895 WEDNESDAY, OCTOBER 14, 1931—FIFTY PAGES. ##% TWO CENTS. () Means Associated Press. NEIGHBORHOQD GROCERY STORE initial funds of more than $170.000.000, and this may be raised to $1,000,000.- | 000, as and if that amount is needed., S ST LADBEFORE LIBOR | of legal existence, as incorporation pa- pers were filed in Delaware through the Corporation Trust Co. late vester- Two Other Proposals Urge Repeal of 18th Amendment and Volstead Act. day. This huge concern carries out the suggestion made by President Hoo- ver to ease points of tension in the banking #tructure. Flooded With Subscriptions. Even though no specific rate of inter- est has been announced for the cor- poration’s notes or debentures, which are to be sold to banks to give it its funds, the Organizing Committee has been flooded with subscriptions for the initial offering. While only commercial banks were requested to participate, the com- mittee has been receiving numerous in- quirfes from savings banks, and they will be permitted to participate where | By the Associated Press | VANCOUVER, British Columbia, Fireman’s Hammer Releases Man, but Breaks Hand Bones By the Associated Press. KANSAS CITY, October 14.— Seeking relief from the tedium of convalescense after a motor car accident in which he suffered the fracture of three ribs, Paul Schulze, 26, insisted yesterday on helping about the house. The clogging of a basement drain pipe drew his attention. He thrust his hand into the tub- ing to remove debris. There the hand_stuck. Neighbors and firemen were called. CAPONE'S LOSSES ON HORSES CTED Gang Leader Was Poor Judge of Racing Steeds, Defense Witnesses Say. By the Associated Press. CHICAGO, October DIRECT NEGOTIATIONS BY ORIENTAL-NATIONS COLLAPSE IN FAILURE Nanking Representative Refuses to Continue Conversations for Fear of Hindering Geneva. GILBERT, U?S. CONSUL GENERAL, DISCUSSES ISSUE WITH BRIAND Johnson, American Minister, Calls on Chiang Kai-Shek—Japan Watches Wash- ington—Canton Claims Internal Pact. By the Associated Press. ‘While peacemakers labored over the Manchurian situation, China and Japan broke off preliminary efforts aiming at negotiations of their controversy. Each party held to its terms. China insists on evacuation of oc- cupied districts by Japanese before entering upon any direct nego- tiations. Japan requires assurance of the protection of Japanese lives and property before withdrawing her troops. The British and American Ministers to China arrived at Nan- king from Peiping to consult with Chinese officials. Gilbert Calls on Briand. Prentiss Gilbert, American consul general at Geneva, conferred with Foreign Minister Briand of France, as also did the Chinese and Japanese delegates to the League of Nations. Presumably they sought | agreement on the form of American co-operation in League efforts to restore peace. | Insurgent Cantonese at Hongkong said President Chiang Kai- Shek of the Nanking government had accepted terms for internal peace in China. American naval vessels in Oriental waters were diverted from | their intended routine shore leave at Chefoo, being ordered to | Shanghai instead, to avoid any misunderstanding. A Mukden dispatch to the Rengo News Agency (Japan) said | Japanese planes reconnoitering along the line of the Mukden-Peiping | Railway were fired upon by Chinese troops aboard a military train, !and that the Japanese retaliated with bombs. their support by following his ex- ons, v 2 | eir supp y g | Surgeons, which yesterday examined |igtate lwws permit. ample. ; 7 } | the veteran officer, found him physically | ~While the final plan as proposed by | October 14.—After being kicked around Holds Curb on Clergy Too Strict. incapacitated for further duty. | the Organization Committee spoke of A {more than a week in committee rooms A fireman picked up a sledge hammer. One solid smash broke the pipe —also three bones in Schulze’s 14.—Alphonse Japan Watches Washingion. Capone today opened his fight for . — At Moscow there was a conference between Maxim Litvinoff, acquittal on charges of evading income The issue which brought about these sudden developments revolves about & difference of opinion concerning the treatment to be accorded Catholic orders under the republican constitu- tion, whose provisions end the cen- The report of the board, recommend- |ing retirement of the assistant police 1 chief, is understood to have been shown | to the District Commissioners before it | {was sent to police headquarters, | | Ordinarily the board reports 40 Maj. | maximum issue of the debentures of $1,000,000,000,,if the commercfal banks alone participate to the extent of 2 per cent of their deposits, as requested, the inittal amount raised will exceed $3800.- 000,000, as against only $500,000,000 |and corridors, the prohibition question |crowded its way into the American | Federation of Labor Convention Hall here today. A Resolutions Committee, asserting it hand. turies-old official Catholicism of Spain. Senor Alcala Zamora and those who support him contend that regulatory ! measures governing the activities of the | Ppriesthood should not be too stringent. | The attitude of the National Assem- | bly in the face of the resignations was & matter of guesswork only, but there | Henry G. Pratt, superintondent of police, who then forwards it to the Commissioners with his indorsement. Findings Unanimous. The report was signed by Dr. Daniel Borden, chairman of the surgeons’ | suggested in President Hoover's pro- | posal. Wi . was promoting the cause of true Corporation Not Restricted. temperance, asked the convention to | Furthermore, it is said in banking | adhere to labor's stand of several years | quarters that 'several of the leading |for beer of 2.75 per cent alcoholic | private banking houses, investment | content. | trusts and other organizations will un-| At the same time two resolutions, one doubtedly fespond if requested, and |backed by the remains of the pre- | HOSPITAL INQUIRY BEGUN BY WILSON taxes with an account of his gambling losses. The husky gang leader is a poor judge of race horses, the jury in United States Circuit Court was told today. “He won some bets, but not very many,” Milton Held, a bookmaker, testified. Held, although he had no records to prove it, and couid remember no in- dividual transactions, estimated that was a persistent rumor that Manuel Aznar, minister of war in the Alcala Zamora cabinet, might be asked to head a new government. Senor Zamora remained at home this afternoon preparing the letter of resig- nation which will be submitted to_the National Assembly. While ke was thus at work the cabinet met without him | and the reports arose that all would re- ora’s resignation came six months e day after he was first provision- elected to that office. Opposes Dissolution of Orders. He is represented as opposed to the Action of the National Assembly in ap- | proving a constitutional amendment which would dissolve all church orders end nationalize their property. repudiation . of Catholicism as ate religion of Spain was fol- today by the incorporation of rticle in the new constitution. The National Assembly. after a stormy 15-hour session, adopted by a vote of 78 a compromise amendment to 4, providing for the dissolution hose ‘orders recognizing a_higher ity than the state and those dered dangerous to the state. It lso stipulates that property may be gmymhzed where it is deemed bene- _The vote was preceded by a long- @rawn-out debate in which Catholic Deputies proposed 20 other amend- ments one by one in order to defend the interests of the church and was followed by an outbreak of fist-fight- ing between Catholics and Socialists on the chamber floor. Held Action Too Radical. Article 24, providing for the imme- diate dissolution of all church orders and the nationalization of their prop- erty_previously .was rejected by a vote of 164 to 39. It was sponsored by the Radical Socialists and opposed by the Socialists, who ultimately were vic- torious on the amendment. President Zamora and Minister of the Interior Miguel Maura expressed disfavor with the amendment on the grounds that it was too radical. leaders said it was aimed at the ex- pulsion of the Jesuits. Others said ex- pelled orders would find refuge in Bel- glum and otker countries. The Catholic Church was divorced from its age-old union with the state Wwith the adoption of article 3 of the constitution by the Assembly last night, voting 267 to 41. It declared that “no state religion exists” and banned the church from engaging in commercial, industial and educational gctivities. Demonstrations Curbed. It was followed by demonstrations #gainst the church*in Madrid and Oviedo, in which extra police and civil guards were called out to prevent dis- orders. Stores and cafes closed their doors here in fear of looting, but au- thorities were able to keep the situa- sion under control. The legislation shattered a tradition of centuries, by which the Catholic Church had enjoyed a preferred posi- tion in the eyes of the government and redeemed the pledges of republican leaders, who promised to separate church and state when Alfonso XIIT was overthrown last Spring. The defection of Spain leaves Bel- gium, Italy, Bolivia, Colombia, Venezu- ela, Argentine, Peru and Paraguay as the fiflncipal nations in which Catholicism the state religion. Countries that| bave separated church and state in re- cent years include France, Mexico, Chile and Russia. VATICAN UNALARMED. Officials Believe Church in Spain is Undamaged by Rejection. VATICAN CITY, October 14 (P).— News of the rejection of Catholicism as the official religion of Spain was re- ceived by Vatican officials today with disappointment, but without alarm. They were of the opinion that when religious conditions there have been straightened out the position of the church will be found to be not seriously damaged. " Radio i’;xnnu on Page D-3 | board, and five other members of that | that there need be no limitation of | body.” The findings, unanimous, were | | based on a detailed statement of treat- | | ment administered to Shelby during | |the past two years by Dr. John A.| per | Reed, member "of the board, supple- | oW Much money the corporation may ! raise, and give it broad powers. The mented by personal examination of | ariicies of incorporation state that its { the officer by the board as a whole. | puacs, Of ICOFporation state that iis The physicians reached the conclu- b | sion"that Shelby is suffering from an | {RrOyghout, the United States “to util- | ize “thelr resources = {acute mervous ailment, sinus trouble | | and “other 1lls, necessitating his_per- | e Stabllization of financial economic | manent removal from the police force. b | The _nervous condition 1s’_attributed | papiing oiamans ot "evat o ersce tion. It may frade in securities, prop- | by Shelby’s physician to the strain of | |erties and real estate of all sorts. It overwork while serving as chief of the | may organize subsidiaries in any State, | Detective Bureau. Receives * | territory or country. While the report of the physicians 2 | was not made public today. it is un- (). 0, YOUTH G derstood_the board gave Shelby a rat- (& Vs 3 ing of “C.” which means that he should | be relieved of his duties as soon as pos- | sible. Thres wtings are used in segr: | gating policemen examined for dis- | | ability. A rating of “A” denotes that | an officer is in perfect physical condi- | | tion. A “B" rating means that he is suffering from certain physical defects | the maximum funds to $1,000,000,000. The incorporation papers, as filed in Delaware; make no restriction as -to Rating. RILLED _IN TORCH MURDERS Nephew of Miller Family Neigh- bor Volunteers for Slay- that do not necessarily ~incapacitate {him for further service. Compulsory retirement is necessary with the “C” rating. If Shelby had been given a “B” rat- ing his retirement would have been optional with the Commissioners. Un- cretion in the matter. TThe report was received at Maj. Pratt's office early this afternoon. He must prepare a formal recommendation | der the “C” rating they have no dis- | | ing Quiz. Special Dispatch to The Star. MANASSAS, Va., October 14— southeast, Washington, D. C. appeared here last night voluntarily for question- ing in connection with the death of the | Goodwin Miller family, who perished | | | | Joszph E. Wolfenden, 19, of 1738 B street | prohibition Bartenders’ Unien, and the | {other by the Tacoma Central Labor | Council, asked repeal of the eighteenth amendment and the Volstead act. Matthew Woll, vice president and | chairman of the Resolutions Commit- 1 tee, said he had not heard half a dozen ‘;'dnlces raised against the 2.75 per cent | idea. I Council Favors Beer. ‘Throughout the convention the | recommendations of the executive council have been almost unanimously | followed and the council favors 2.75 | per cent beer. Relief of the unemployment situa- tion overshadowed all other resolu- tions pending. but there was no con- { troversy in the convention as to the merits of resolutions affecting unem- | | ployment. Many suggestions were | vanced by the Executive Council and | approved in the Resolutions Commit- | tee report prepared for submission to- day. For emergency relief, the report fa- | vored maintenance of wages, shorter work hours, employment assurance, employers taking on additional work- ers, creation of work through public undertakings, strengthening of em- ployment agencies, no child labor, pref- erence for workers with dependents )and financial relief from public and private funds. Asks-National Planning. For permanent relief, the federation asks national planning to balance sup- ply and demand, public accounting, a Some | residence to the ground, near Joplin, Prince William County, on September 25. Wolfenden is a nephew of Walter ‘Wolfenden, who lives in th> vicinity of the fire, and is said to have been visiting g!s uncle on the night o fthe conflagra- on, Thomas H. Lion, commonwealth at- torney, said this morning an investiga- tion which his office is conducting with reference to alleged insurance policies was progressing and this line of inves- tigation will be concluded within a day or two. It is thought that a well known resident of the Joplin vicinity may be brought into th: case. WKIMMIE ONE UP Leads Robert T. Barnett in First for Shelby's retirement. The recom- (Continued on Page 2, Column 8.) REPLACEMENT OF HARRIS RUMORED IN DETROIT Navin, However, Says He Has Made No Plans Concerning 1932 Manager. By the Assoclated Press. DETROIT, October 14.—Frank Navin, owner of the Detroit American League Base Ball Club, today said that although Stanley (Bucky) Harris has not yet signed a contract as manager of the team next year, he has made no plans to replace him. in a fire which burncd their family | Fojeral labor board to collect data, Harris, manager of the team for the past two years, has had little success in bringing the Tigers out of the second division. Although Navin insisted that no action had been taken toward ob- taining another manager for the Detroit club, 7the rumor persists here that the former Washington manager will be re- placed next season. Navin confirmed a report that Jean Dubuc and Roger Bresnahan will not be retained as coaches next year. He said Dubuc might remain as a scout. 18 Holes for Pro Title. R. Clff McKimmie, professional at the White Flint Country Club, was 1 up on Robert T. Barnett of Chevy Chase at the end of the first 18 holes of their scheduled 36-hole match today for the Middle Atlantic match play profes- sional championship at the Woodmont Country Club. Barnett is the present title holder. McKimmie scored 77 for the first round and Barnett was 78. The final round is being played this afternoon. LINCOLN “BIRTHPLACES” TOTAL 16 AS KENTUCKY FINDS ANOTHER Emancipator Was Born in Comfortable Two-Room House Instead of Cabin, Judge Says. Portugal, ! By the Associated Press. HODGENVILLE, Ky. October 14.— i Louis A. Warren, Lincoln biographer, of Fort Wayne, Ind., in an address here today declared the discovery of another supposed birthplace of Abraham Lin- coln raises the number to 16. Judge Harvey H. Smith of New York recently stated the Emancipator was not born in & one-room log cabin on Nolin Creek, in Kentucky, but in a comforta- ble two-story house on Mill Crizk, 2 miles away. “There have been 15 other l"emDUTl' to center public opinion on a certain spot where individuals, groups and even whole States have claimed Abraham Lincoln was born,” said Dr. Warren. “Citizens of Hardin County, ., have for years insisted Lincoln ™m on one of four definitely located sites with- 1 the present boundaries. “The project contemplated by Judge Smith 13 another At to losate. the birthplace in old Hardin County. All of these birthplace projects, including Creel hecetsurty Tl the tegtimacy , necessarily imp! e of Abraham Lincoln.” ‘The biographer referred to a state- ment by Lincoln to Hicks, the artist, in Which he stated he was born “February 12, 1809, in the then Hardin County, 5 | Kentucky, at a point: within the now County of Larue, & mile or a mile and half from where Hodgen’s Mill now is.” The speaker said it must be acknowl- edged Thomas Lincoln was much bet- ter situated financially than was once thought, and that one historical con- trihution which may come from the of | T | organization of workers in trades un- | i a Federal employment service, vo- | cational retraining, so that workers in | stagnant trades could be taught to do | work more often in demand, and job security. ‘The )subject of military training in high schools, originally Treferred both to the Educatl;)l}‘ln;lg mth ll“l".‘&? gcgun‘; mittees, was le! e after the Education Committee washed its hands of the matter. . Hurley in Honolulu. HONOLULU, October 14 (#).—Secre- tary of War Patrick J. Hurley arrived here yesterday en route to the United States following an investigation of po- | litical conditions in the Philippines. He i will be the guest of Gov. Lawrence M. | Judd during his brief visit here. German Export Balance Gains. BERLIN, October 14 (#).—The news- paper Boersen Courier said today that | Germany's September exports exceeded ! imports by 387,000,000 marks ($96,- 1750,000), the highest active balance since_the World Why Go to Paris | —for smart fashions when the newest stylas‘are here in Wash- ington? Washington stores are among the finest in the country an their advertisements in The Star will tell you about all that is latest in style and fashion. Yesterday's Advertising. (Local Display) es. The Evening Star. . . 57,419 . 16,989 . 10,131 5,524 2,818 35,462 2d Newspaper. . . 3d Newspaper . . . 4th Newspaper . . 5th Newspaper . . Total ifaspasers...... The Star is read in a great majority of Washington homes, ana consequently carries more retail advertising daily and Sunday than all other Wash- _ington papers combined, Why Three Children Were Refused Admission. ;Welfare Head Seeks to Know l ICnpone lost between $8,000 and $10,000 during the Summer meeting at the Hawthorne race. track in 1924 and about $£2,000 in the Fall of 1925 at the same track. Paid in Big Bills. “Al would make bets ranging from $200 to $500 on a race,” Held testi- fled, “and he bet on four or five races He usually paid his losses with hy | 3 da An investigation to determine why | §00°by1is, but somefimes he gave me a were shunted in the past 10 days from one hespital to another before finally Wilson. ‘The cases concern Eva Mae Dixon, 5, who died of burns at Children’s Hos- pital after first being transferred from Sibley to Garfield; Samuel Goddett, 9, who died of lockjaw at Gallinger Hos- pital, where he was taken after being denied admission at Emergency and Children's Hospitals, and Catherine Zanelotti, 3, who was turned away from both Children's and Gallinger, !\‘:llly being treated by a private physi- cian, While the Board of Public Welfare | Investigation got underway, members of the Committee on Health of the Council of Social Agencies were sum- moned to meet this afternoon with the superintendents of all hospitals con- nected with the cases of the two chil- dren who died. The meeting was called at the request of the Community Chest, by Gertrude Bowling, committee chairman and executive director of the Instructive Visiting Nurse Society, to prepare a report on the two cases. Explains Proper Procedure. In announcing he had ordered the investigation to prevent similar han- dling of future cases, Director Wilson ::Ehlned the procedure parents should e before bri,n(ln‘ sick children to ‘hospitals. “It is important for parents to realize that hospitals are for a particular pur- pose and not for the treatment of every case of sickness,” Wilson said. “Hos- pitals primarily are for the care of cases that cannot be properly treated at home, that is, either because of the nature of the illness or the home con- ditions. “A ;hyslchn should always be sum- moned before bringing a sick person, child or adult, to a ’\mpiul. In the case of the poor, physicians for their attendance are established in various sections throughout the city subject to day and night call. Police Will Send Doctor. “A telephone call to a police precinct station will summon one of these doc- tors. We have found it quite desirable for a doctor to see a patient before he goes to a hospital, first, because it might not be safe to move the patient, and, secondly, so that the doctor may certify tc‘ontulcul disease if present for isola- lon.” 7 In both the Dixon and Goddett cases suspicion of contagious disease was claimed by ihe hospitals affected as the reason for the transfers. The little Dixon girl, who lived at 1012 Jackson street, was not admitted to Sibley Hospital, where she received first-aid treatment for her burns, be- cause her father told the ‘examining physician she had whooping cough. ‘The Goddett boy, similarly, was re- fused admission to Emergency Hospital, (Continued on Page 2, Column 4.) Brand Whitlock Better. , ‘October 14 (#)—Brand bassador to Ber- Hospital Staff Stricken. Octobet 14 (#).—Eighty o to Cy:’zgid.p.md were in w-* A ted be | three children, two of whom were dying, | $500 bill Held admitted under cross-examina- tion that his bookmaking was in viola- tion of the law, and said he had fol- [ receiving treatment, was ordered today | jowed the business for 20 years or more. | by Public Welfare Director George .| He said he made only about $2,000 at | day. decided to invite the United States | the track in 1924, “and about that much more at my office down town.” Oscar Gutter, a hunchback bookie, who described himself as a “commis- sion broker, who handled sporting events, mostly horses,” said Capone lost about $60,000 betting on races at the various tracks nenr’chlcflgo in the Summer of 1927. Cusiomers Generally Lost. “Sometimes he would place $3,000 Soviet foreign commissar, and Koki Hirota, the Japanese Ambassador. Previously Hirota had provided the foreign commissar with a written e;planation of Japan’'s action in occupying non-treaty zones in Man- churia. ‘Tokio dispatches report the Japanese cabinet as working “in per- fect accord” with the military, with an eye to what action is taken either at Geneva or by the United States. The Japanese hold that fundanfental differences responsible for the present situation must be negotiated directly between the Japanese and Chinese governments. e | PRELIMINARY TALKS FAIL. R ' Consent for U. S. To Sit in League | BY PAUL SCOTT MOWRER. By Cable to The Star. GENEVA, Switzerland, October 14.— | The League of Nations Council, con- | ferring without Japan and China to- | to sit in the council in a consultative | capacity. China and Japan then were | asked to concur. China agreed. Japan | hesitated and said that it must ask for instructions from Tokio. The Jap- | anese maneuver is to separate Geneva |and Washington and play one against | | the other, it is feared. The test, it | is said, will be how soon the Japanese |reply will be received and its tenor. on a horse to win and $3,000 to place,” | Those who expected the Council of Gutter said. | the League, closely supported by the “Yes, they most generally lost”” he | United States, to emit thunder and sald, with a smile in answer to a ques- | lightning in a dramatic effort to set- tion as to his customers. | tle immediately the tremendous issues Johnny Torrio, Pete Penovich and|now before it, with the world’s entire Louis La Cava, all past or present gang | beace machinery at stake, were dis- Further Negotiations With Japan. | TOKIO. October 14 (#.—Preliminary conversations designed to open the way for direct negotiations between Japan ;and China for settlement of their con- | troversy over Manchuria resulted in | failure today. | " For the time being, at least, there will be no further private conversations be- |tween Baron Shidehara, Japanese | foreign minister, and Chiang Tso-Pin, Chinese Minister to Japan. The Nanking government was represented |as having taken the view that any { further such talks might be miscon- strued as indicating China’s willingn to enter into direct negotiations with Japan before the latter evacuated the occupied districts. Vernacular reports of the conversation here Monday hetween Chiang Tso-Pin and Baron Shidehara indicated the | Chinese envey had insisted upon_the withdrawal of Japanese troops from Manuchuria as a prerequisite to any immediate negotiations. Japan Demands Assurance. The Japanese foreign minister was represented as having taken the attitude that since his country’s principal inter- est in Manchuria was the protection of Japanese lives and property, China would have to give assurance of this before Japanese soldic®; could be re- figures who were originally sub- poenaed as Government witnesses, were in the Federal building today, sup- posedly waiting to be called as wit- nesses for their friend Capone. None | appointed today. The League'’s methods are different Instead of seeking setilement of the from that. Tension and excitement. question by direct negotiation with | antagonisms and anxieties were all | Japan, China appealed to the League of | under tne surface. Outwardly all was | Nations, asking its intervention. Japan | called. of them was put on the stand by the calm and the day passed in a series of | has contended before the League Coun- prosecution. Gave Capone Credit. Gutter was asked if Cafone had credit at his “commission house.” “I knew Al was fair and honest in his own business,” was the reply, “so I gave him credit. That is, he could make a bet today and settle tomorrow. I didn’t require any security of him.” ‘The witness saild at Capone'’s request he always dealt with him in currency. ‘The Government questioned Gutter at length about how he arrived at the figure $60,000. He said he kept some informal records from month to month “so 1 could figure up my income tax,” but that he destroyed the records as soon as he was through with them. “The business was illegitimate at that time,” he explained. There has been no indication today that the “big fellow” would turn talka- tive and take the witness stand himself, but it was no apathetic defendant who started this fight to escape a Federal prison. This' trial, into which the Govern- ment has thrown all its resources and energies, has brought out an alert Capone, a serious, attentive man ready with many suggestions for his lawyers. ‘The Government closed its case yes- terday afternoon. Defense Attorneys Michael Ahern and Albert Fink ex- private negotiations. Two Main Points. ‘These negotiations bore two main | points: | First, the conditions of United States’ | co-operation with the council: | Second, possible ways of dealing with | the Sino-Japanese dispute itself. The greatest satisfaction was felt here, except possibly in Japanese quar- ters, at the report of President Hoo- | ver'’s consent to allow Prentiss B. Gil- | bert, American consul at Geneva, to | sit in a consultative capacity with the | council itself. It is understood that Washington, after carefully consider- | ing the possibility of formally invoking the Kellogg pact or the, nine-power Washington treaty, or both, decided finally to confine our public efforts for the present to co-operation with the League in order to concentrate the whole peace power of the world at one point and to avoid a conflict of au- thority. Present Status of Dispute. ‘With regard to the dispute itself, the following appears to be the situation: ‘When the Council adjourned Sep- tember* 30 after voting a series of reso- lutions designed to enable Japan to make a graceful retreat, the expecta- tion was that the Japanese by today (Continued on Page 2, Column 7.) (Continued on Page 5, Column 7.) STATE DEPARTMENT SUSPENDS TWO TO BREAK UP GAMBLING Messengers Who Acted as Intermediaries for Clerks and wards. They were [ which . \nary. Bookmakers Penalized in Drastic Drive. Drastic steps were.taken at the State ent today to break up gambling among the clerks. The first move was the suspension of two messengers with- out pay for a month for having acted as intermediaries between bookmakers and clerks in the various bureaus in placing bets on horse races. The suspended messengers are John N. Savage, attached to the Near East- ern Division, and Willlam D. Evans, an employe in the Visa Office of the Pass- port Division. Evans has been in the ;;fiu:e since 1910 and Savage since The long and satisfactory service of the two messengers, it was announced, was the only mitigating circumstances prevented more severe 2 - [to close up Ain the vicinity of the . Evans and Savage, it was charged, received small commissions for serving as runners in placing the bets, and their act was in strict violation of an order of the executive departments of the Government forbidding gambling during office hours. The State Department is the second Government agency to take drastic steps in the last few years to break up gam- bling among employes during office hours. Some time ago, George H. Car- ter, public printer, ed b concerted campaign against race horse betting at the Government Printing Office, and severely criticized the Police Depart- ment for alleged dereliction in failing establishments ting ofice, cil that the Manchurian problem is one requiring direct negotiations between | the two countries, and not a matter | warranting action by any outside agency. The question of “face,” which evi- | dently meant much to the Chinese, | entered into the conversations between | the Chinese envoy and the Japanese | foreign minister. | Chiang_contended that his country “lost its face” when the Japanese oc- cupied vital points outside the Japanese- | controlled South Manchurian Railway | zone and that China would find it difficult to begin negotiations until the Japanese evacuated the positions held | since September 18, when the immadiate | trouble started. | The Japanese foreign minister replied | that if China thought so much about | T (Continued on Page 5, Column 5.) |MEDICAL ASSOCIATION HITS VETERAN POLICY | President-elect Wants Government to Cease Treating Non-Service Disabilities. By the Associated Press. FORT WORTH, Tex., October 14.— The governmental program for hos- pitalization of World War veterans is under fire of tH€ American Medical As- sociation. Dr. E. H. Cary of Dallas, Tex., presi- dent-elect of the association, announced dast night it would ask Congress to abandon the policy of rendering hos- pital and medical benefits to World War veterans with non-service disa- bilities. Addressing a banquet of the North- east District Medical Society, Dr. Cary asserted Federal employes and members of their families soon wil! demand hos- pital attention unless present policies are changed. “Doctors,” he said, “will become di- vided into Government doctors and common doctors. Taxes will be higher. Strike hard against such Communistic propaganda.” As a substitute for the present pro- gram for veterans, Dr. Cary said the association would zdvocate « plan pro- viding disability insurance with cash yments during total disability and ral benefits to cover expenses during hospitalization.