Evening Star Newspaper, October 16, 1931, Page 7

THE EVENING STAR, WASHINGT( D, 0., FRIDAY, OCTOBER 16, .1931. CANNON S NDTED BYD. . GRAND Y Bishop and Miss Burroughs Accused of Violating Cor- rupt Practices Law. (Continued From First Page) States Attorney John J. Wilson, con- tains 10 counts and covers 33 typewrit- tan pages. Under the corrupt practices act the willful violation of pro- visions is made a felony and punishable by imprisonment not to exceed two vears and a fine not to exceed $10,000, while a failure to make a report or & mere technical violation, when not will- ful, is denominated a misdemearor, and | state that every request made to my | committees investigating his activities. is punishable in the District Jail only for a period not to exceed one year and a fine not to exceed $1,000. The maxi- mum penalty under the c count is a term of two year penitentiary and a fine not to exceed $10,000. Face Possible 10 Years. Bishop Cannop and Miss Burroughs, 1f convicted, might face a possible term | of 10 years in the penitentiary, two for conspiracy and two on each of the four counts charging willful violations. The first, third, fifth and seventh counts of the indictment deal with the alleged willful failure to report at the differcnt tim:s specified in the law. The sccond, fourth, sixth and eighth counts charge the mere failure to maRe report or technical violations at the four time: named in the odd-numbered counts. ‘The ninth and tenth counts contain the conspiracy charges. The ninth alleges an agreement willfully to violate the Jaw, while the tenth deals with an al- leged agreement to violat: only the misdemeanor feature of the law. The first count alleges that Miss Bur- Toughs was treasurer of a political com- mittee known as Headquarters Commit- tee, Anti-Smith Democrats, and had received contributions from E. C. Jameson of New York for the Political Committee and that she failed to report the receipt of $58,000 from Jameson and that she willfully failed to make a Teport to the clerk of the House of Rep- Tesentatives “between the tenth and fif- teenth days next preceqing November 6, 1928, the date of the general presi- dentfal election. Cannon is joined in this count as an “aider and abettor.” ‘The second count alleges the failure to | make the report, but not willfully. | Additional Counts. | By the third count Miss Burroughs is| accused of willful failure to make the | same report five days before the elec- | tion date, Cannon being accused of aid ing and abetting in that violation. Th fourth count deals with the same al- leged violation without willfulness. The fifth count charges failure will-| fully to report January 1, 19: same contributions plus $4,300 rec from Jameson December 6, 1928. Can- | non aided and abetted in this alleged violation, it is charged. The sixth count holds the alleged violation to have been inerely technical or without willfulness By the seventh count there is alleged a willful violation of the law in failing to report between the first and tenth | days of March, 1929, an additional con- tribution of $3,000 received from Jame- son January 14, 1929. Cannon is ac- cused in this count, @s in all the pre- ceding ones, that he “unlawfully and feloniously ¢id willfully aid, ab-t, coun- . command, induce and procure and advise, incite and connive at the com- missions of the above described offense on the part of Miss Burroughs.” The eighth count alleges the failure to re- port as not willful. Conspiracy Is Charged. The conspiracy counts allege that Bishop Cannon and Miss Burroughs “unlawfully and feloniously did conspire to commit offenses against the United States” and did commit overt actions in furtherance of the alleged agree- ment. The offenses mentioned are the four felony charges contained in the preceding odd-numbered counts and the four misdemeanors named in the pre- ceding even-numbered counts. Eight overt acts are set out in the in- dictment in furtherance of the alleged conspiracy. one of which would have been barred tomorrow by the statute of limitaiions. This is named as fifth in the crder of acts mentioned in the in- dictment and consists of the depositing by Bishop Cannon, October 17, 1928, in the Continental Trust Co. in this cit; to the credit of “James Canncn, jr. chairman,” of two checks dated October 16 and drawn by Jameson upon the Lawyers' Trust Co. of New Ycrk for 55000 each and drawn to Cannon's crder. The first four of the overt acts relate to the filing of reports by Miss Bur- roughs with the clerk of the House of Representatives October 30, 1928; No- vember 3, 1928; January 2. 1929, and February 15. 1929. The fifth act is mentioned above. The sixth charges i promptly Rover Sent Cannon Request to Testify Into Probing Body District Attorney Replies to Charges of Bishop on Jury Inquiry. United States Attorney Leo A. Rover today answered the charges of Bishop James Cannon, jr., that he had refused the clergyman’s request to appear befere the grand jury, and had failed to call witnesses requested by him. After the grand jury had made its re- port, Rover issued the following state- ment: “Inasmuch as the grand jury has now concluded its investigation in the casz of the United Stats against Cannon and Burroughs, I deem it proper to cffice by Bishop Cannon, concerning his dssire to appear before that body, was transmitted by me to the grand jury, and that body was advised that it was within its province to grant the request if it so desired.” Assistant United States Attorney John J. Wilson, who presented the tzstimony to the grand.jury, concurred in Rover's statement of the requests being pre- sented to the grand jurors report of treasurers of political com- mittees subject to public inspection. Other witnesses before the grand jury included former United States Senator Joseph S. Frelinghuysen of New Jersey, who gave Cannon the two $5,000 checks mentioned among the overt acts of the indictment; Dr. Ar- thur J. Barton of Wilmington, N. C., said to be associated with the Anti- Saloon League; Col. Wade H. Cooper, president of the Commercial National Bank and former head of the Conti- nental Trust Co.: Charles W. Warden, former vice president of the Conti- nental Trust Co.; Perry C. Seay, vice president, American Bank & Trust Co. of Richmond; J. A. Booker, cashier, Citizens' Bank & Trust Co. of Black- stone, Va.; S. L. Barrow, president of the First National Bank of Blackstone; Frank W. Sheffield, cashier of the Bank of Crewe, Va., and others. E. J. Armbruster, auditor of the Bu- reau of Investigation of the Depart- ment of Justice, worked up the finan- cial details of Cannon’s transactions in several banks and gave the result of his inquiry to the grand jury. He was aided by L. P. Oliver of the bureau. Expects Vindication. Mr. McNeill, Bishop Cannon'’s attor- n issued the following statement: ow that the grand jury has acted and the matter is to be considered by a petit jury, it would seem manifestly improper for me to do more than say that, according to my investigations of both the law and the facts, a full and open hearing, when all the facts can be brought out, will vindicate the con- duct of Bishop Cannon and his asso- ciate “Bishop Cannon for more than 30 vears has been the leader in a series of battles for civic and moral reforms in the United States, and during that time he has been assailed by special interests, sometimes clean and scme- times corrupt, but I have too much faith in the integrity of American jur- ors and courts to believe that they will fail to find the truth in their deliber- ations. “My chief regret as to the delibera- tions of the grand jury is that it did not have before it first-hand document- ary substantive evidence as to the so- called Jameson and Frelinghuysen con- tributions and their disposition, which could have besn given them in full by Bishop Cannon and the witnesses, whose names he gave to tre district attorney and to the grand jury, only one of which witnesses was permitted to appear before the grand jury. “Never in this decade has one man, out of public office had such influence upon public opinion as Bishop Canngn. I belizve this influence has been tre- mendously beneficial to the development of great moral principles. I will not be- lieve, nor do I believe, the public will credit the charge that such a leader of public thought and moral advancement has been guilty of violating any statute of the United States or of any State.” Jameson Contributions. Bishop Cannon contended before the Senate Campaign Funds Committee that | he was not required to make any report | of the other $48,000 on the ground that | it was spent for a State campaign. The jurors listed the following con- tributions by Jameson to Bishop Can-| nen: September 18,~1928, $10.000. September 28, 1928, $10,000. October 9, 1928, $10,000. October 16, 1928, $5,000. October 16, 1928, $5,000. October 19, 1928, $18,000. December 6, 1928, $4,300. January, 14, 1929, $3,000. CANNON “NOT SURPRISED.” Bishop Promises Statement as Soon as that Cannon, October 23, 1928, within this District, paid $2,000 to the anti- Smith political committee. The se enth overt act charges the payment of §832.50 to the committee by Cannon. Telegram Is Cited. ‘The last overt act is said to have oc- curred February 15, 1929, when Bishop Cannon sent a telegram over the Postal | ‘Telegraph-Cable Co. to Jameson direct- ing him to make his report of contribu- tions. The telegram is set out in the indictment and reads in part: “After careful examination records, think statement should be ‘Paid headquarters committee anti-Smith Democrats, $17. 300: paid Virginia committee anti- Smith Democrats $48,000, making total £65,300. This will correspond exactly with our official repor I is reported that it was nct until she filed her re with the clerk of the House of Representatives February 15, 1929, that Miss Burroughs made ! mention of contributions fromy Jameson and then only that she had received £17.000. while Jameson told the Nye Committee of the Senate that he had made a total ¢f $65,000 in contributicns to_Cannon ‘To avoid any charge of bias in the presentation of the testimony to the grand jury United States Attorney Leo A. Rover turned the presentation over to Wilson. Rover is a Catholic and ‘Wilson is a Protestant. Asked to Be Summoned. Cannon before the inquiry began last week filed a brief through Attorney Robert H. McNeill setting forth his claim that the Federal corrupt prac- tices act did nct apply to the matter because he was. working for the selec- tlon of electors in Virginia only who are State and not Federal officers and that he was waging a campaign in a single State. He also wrote Rover and to Theodore B. Gittings, f-reman of the grand jury, asking to be summoned as a witness before the grand jury. Rover turned the requests over to the grand jury and left it to that body to say if it wanted to hear from Canzon. As he ‘was not called, it is supposed the grand jury decided against his application. Assistant U. S. Attorney Wilson met with some opposition in his efforts to get before the grand jury the original repcrts filed with the clerk of the House of Representatives, when William Tyler Page, thec lerk, questioned the right of the court tocompz1 him to bring the papers from the files of the House. ‘The grand jury reported the matter to Justice James M. Proctor in Criminal Division 1, and there Page pointed cut that by a House resolution passed in 1879 the clerk was not permitted with- out specified order of the House to take anything from its files even to honor & subpoena duces tecum from a ccurt. Justice Proctor held that Page had misconstrued the resolution as-forbid- ding the production of the papers. as it contained an exception of such papers @5 the House shall declare public. The court, pointed out that the corrupt rractices ~et. under which the inquiry wag in progress, specifically made the 1 { He Has Read News Dispatches. ATLANTA, Ga. October 16 () — Bishop James Cannon, jr. of the Methodist Episcopal Church South said today he was “not surprised” when in- formed he had been indicted by a Dis- trict of Columbia grand jury for con- spiracy to violate the Federal corrupt practices act. “I am not surprised at anything that the Roman Catholic district attorney might do,” he said. The bishop was told cf the indictment as he left a meeting of the College of Bishops of the Methodist Episcopal Church South. He said he would read news dis- patches of the indictment and would issue a statement later, “as I always do.” | JAMESON OUT OF TOWN. NEW YORK., October 16 ().—At the office of E. C. Jameson, New York cap- italist, whose contributions to Bishop Cannon formed the basis of the latter's indictment, it was said that Jameson was out of town and could not be reached for a statement today. Jameson is president of Globe & Rut- gers Fire Insurance Co., National Fire & Marine Insurance Co. of New Jersey and Hamilton Fire Insurance Co. and & director of numerous other corpora- ons. Man Loses 10 Years' Pay. | paring a defense against charges filed | knee to hem. Eleven years ago a farmhand on an estate near Hanover, Germany, arranged with his aristocratic master that his wages should be saved and paid to him in a lump sum when he quit his job. ‘The master has just gone bankrupt, and the Bankruptey Court has informed the employe that under the statue of limi- tations he can make a claim for only one year's wages. Glass Eye Bursts And K. O.’s Wearer | | In Freak Accident By the Associated Press. CHICAGO, October 16.—Un- usual accidents. reported yester- day in the news letter of the Na- tional Safety Congress: A man's glass eye exploded while at work, making him un- conscious. A young man was seated on a Summer resort piazza, with a charming young lady seated on his lap. Her weight stopped circulation in the young man's legs. He arose and his legs, fast asleep, collapsed. In falling he broke his ankle. Another man, standing in his | shower, slipped, he grasped some | * piping, got an electric shock and fell cut of a winZow. v CANNON 15 PIVOT OF MANY ATTACKS Bishop Has Been Storm Cen- ter of Controversy Since Al Smith Campaign. By the Associated Press. A whirlwind of controversy hasscen- tered about Bishop James Cannon, jr., since he rallled his forces against the presidential candidacy of Alfred E. Smith in 1928. Political and eccleslastical attacks have followed in “>wildering succession. He has faced bot. Senate and church The 66-year-old Southern Methodist churchman became a national political figure when he headed the Virginia anti-Smith Democratic Committee. In that campaign, the traditionally Demo- cratic State.lined up in the Republican fold in support of Herbert Hoover. \ During and after tne campaign, he was Assailed both without and within the church, He was accused of 0ppos- ing Smith because tie latter was a Roman Catholic. Senator Glass of Vir- ginia described Bishop Cannon as “the Methodist Pope.” Bishop Fought Vigorously. The bishop fought back vigorously He contended his long fight against liquor was the basis of his opposition to_Smith. It was discovered, too, that Bishop Cannon had bought stock through a New York brokerage house which later became bankrupt. His foes charged him with gambling. In May, 1930, he was summoned be- fore the General Conference of the Southern Methodist Church to answer charges centering about his political activity and stock market dealings. After he had faced the conference with tears in his eyes, confessed that he had made a mistake in his stock market venture and promised not to do it again, he was exonerated i Returning immediately to Washing- ton, he was summoned before the Sen- ate Lobby Committee and questioned about $65,300 that E. C. Jameson, New York capitalist, had given him for the Virginia political campaign. Defled Senate Committee. Walking on a crutch, due to an at- tack of arthritis, the churchman re- fused to answer questions and hobbled from the room. Some of the committee members talked of citing him for con- tempt, but no action was taken Bishop Cannon went to London in July, 1930, and married his former sec- retary, Miss Helen Hawley McCallum. Soon after that his name appeared again on the front pages of newspapers as a result of a $5,000,000 libel suit he filed against William Randolph Hearst, the publisher. Bishop Cannon charged he had been libeled in news stories pub- lished by Hearst papers about his per- sonal affairs. Meanwhile, the churchman was pre- against him by four Southern Meth- odist ministers. The trial was held in February, 1931, and ended in his ac- Guittal. The charges were not made public. A few weeks later he was called be- fore the Senate Campaign Funds Com- mittee, which had been inquiring into his political activities, especially the disposition of the money contributed by Jameson. Tinkham Accuses Bishop. Representative Tinkham, Republican, of Massachusetts, had charged him with violating the corrupt practices act by failing to report all of this money to the | clerk of tite House of Representatives. A hearing was held before the Cam- paign Funds Committee, at which Miss Ada L. Burroughs of Richmond, his treasurer in 1928, refused to answer questions. The committee informed her she might be cited for contempt, then adjourned At a later sesslon both she and J Sidney Peters of Newport News, the bishop's 1928 secretary, refused to an- swer questions. In the meantime Bishop Cannon had filed a $500,000 libel suit against Tinkham. In the last few days Senator Glass | and Bishop Cannon have been hurling charges and counter-charges against each other. Asks Probe of Parole. Glass wrote Attorney General Mitch- ell. asking whether Harry L. Goldhurst, who was connected with the brokerage firm with which Bishop Cannon dealt, had been paroled from Atlanta Federal Penitentiary “in pursuance of a blame- worthy agreement made by Department of Justice officials in New York and elsewhere.” X “It was stated,” the Scnator wrote, “that Goldhurst, in order to avert the necessity of summoning Bishop Cannon as a witness in his case and thus re- vealing the prelate’s gambling transac- tions, had consented to alter his plea and confess his crime upon the promise of a nominal sentence to be reduced afterward to parole or outright re- lease.” ‘The Justice Department has started an investigation of a parole recently ranted Goldhurst after his conviction or using the mails to defraud. Bishop Cannon denied any knowledge or con- nection with any agreement in the case. American Shocks London. Londoners at an evening event in a swank hotel in London recently were shocked when it was revealed that one of a group of Americans wore pajamas. At first the party attracted attention because of the beauty and jewels of the | women. When they arose to go, it was | noticed that one woman, a tali blond, wore wide black pajamas of tulle, with silver stars embroidered on them from Signs of the Ti‘mes, ! Musical Whistles Sought for Trains Milwaukee Road Moves| to Improve Quality on Complaints. By the Associated Press. CHICAGO, October 16.—Maybe offi- clals of the Chicago, Milwaukee, St.| Paul & Pacific railroad will have to call in a musical genius to decide a| problem of railroading. They are faced with the delicate task | of selecting new whistles for their en- gines which will be penetrating enough | to warn matorists and yet musical enough to soothe families living along the right of way. Members of the Rutherford-Galewood | Improvement Association and other groups said the whistles now used were 50 loud no one could sleep. So sefety and mechanical engineers went to work. They obtained all avail- | able devices for making noises and | fastened them on an old freight en-| gine and invited every one concerned to a concert. Musical chimes were demonstrated first, but were frowned on, the conten- tion being that some engineers might not have a sense of music. A tenor whistle which went “Mi-mi-mi” was next trled. Some of the woman folks | cussing the proposed cuts, and these, | 1ts_attendant aireraft. | This would make a total reduction in in commission to care for the new- | tions in expenditures, but point out to liked this one, but the men seemed to prefer another which sounded some-|the Navy to cover eventualities which ' Chicags thing like a fog horn. Na decision was reached and none will be until another audition is staged. NAVAL CUT DELAYS NEW D. C. HOSPITAL, ENDS FAMOUS BAND (Continued Pry rst Page.) pital fund, $270,000. These figures rep- resent reductions below the estimates submitted for the Navy on August 31, 1931, for the fiscal year commencing next July 1. The total reduction effected repre- sents a cut from the August estimates of $399,139,886 to $347,782,886, repre- senting a revised slash of $51,357,000, as the naval officlals see it at this time. Congressional circles today were dis- laid before President Hoover, evoked keen interest: Placing the ‘battleship U. 8. 8. Wyoming and the older cruiser U, §. S. Rochester out of commission. The U. S. S. New York would go in reduced commission. Putting two 8-inch-gun cruisers in reserve. Placing slx S-class submarines in Teserve. Four Would Be Canceled. Reducing the crew of the U. S. S. Rigel, receiving ship, at San Diego, Calif., which has charge of the de- stroyers at the base there. Putting the historic frigate U. S. S. Constitution out of commission and canceling her proposed trips around the country in the fiscal year com- mencing July 1 next. Reducing fleet aviation activities. Placing the aircraft tender U. 5. S Jason out of cammission, as well as ‘The assigning of two destroyers to the | Special Service Squadron, which oper- ates in Central American waters, in- stead of ‘two gunboats, assigned to the Asiatic forces These reductions in shore stations are proposed under the reduced operating rogram and these will undoubtedly cause bitter discussion in Congress, as Senators and Representatives are jeal- ous of the shore stations of the Navy within their constituencies: Closing of the Navy Yards at Boston, Mass., and Charleston, S. C., and shut- ting up the Naval Operating Base at New Orleans, La. Would Close Radio Stations. Placing the Marine Corps Training Station at Parris Island, 8. C., in re- duced commission status, owing to the curtailment of recruiting’ activities, and the placing of the Naval Training Sta- tion at Newport, R. I, in inoperative status, for a similar reason. Closing of the naval radio station at the Naval Training Station, Great Lakes, ;511 Savannah, Ga., and St. Augustine, a. Closing about one-half of the Navy and Marine Corps recruiting stations. Reduction of naval reserve activities some 11 per cent. Reduction of public works estimates 45 per cent. Closing of the ammunition station at Fort Lafayette, N. Y., and the placing of the ammunition depot at Lake Den- mark, N. J, in inoperarive status. Disposal ‘of the armor plant at Charleston, W. Va. Disposal of the wartime housing facili- ties at Indian Head, Md. Changing the Naval Air Station, Seat- tle, Wash., to Naval Reserve Aviation | Ease. Settle. Reduction of the activities of the naval aircraft factory at Philadelphia, Pa. | FlRmducnon of activities at Key West, | a. Closing of the Naval Hospital at| Charleston, S. C., and disposal of the | Naval Hospital in the Virgin Islands. Reduction of activities at the naval | supply depot, Brooklyn, N. Y. Slash in Marine Personnel. Reduction of the Marine Corps “so| that the enlisted personnel in the Ma- | rine Corps will equal one-fifth of those | in the reduced Nav Discontinue the Navy Band, Wash- ington, D. C., aithough the department conceded that legislation by Congress would be necessary to effect this. Discontinue the bands at the navy yards, retaining those at the naval training stations, at the Naval Academy Annapolis, Md., and Cavite, P. I. Congressional leaders were advised today that these contemplated changes would effect a reduction of 460 enlisted men assigned to shore duty, making a total reduction in enlisted personnel in the Navy of 3360 and & further slash of enlisted men in the Marine Corps of 672 below that previously made under the September 1 estimates. the enlisted force, both Navy and Ma- rine Corps, of 4,032. The cutting of nearly half of the Navy's public works program through- out the country entails postponement of the construction of the naval hos- pitals here and at Philadelphia, as well as postponing a number of other items considered of lesser importance. Leaders in Congress in close touch with naval affairs were advised that disposing of the armor plant at Charles- ton, W. Va, which cost Uncle Sam $24000,000, would relieve the Govern- ment of approximately $100,000 an- nually in expense. Rent of the war-time housing facili- ties at Indian Head, Md., is consid- ered a direct burden on naval appro- priations, while their rent goes into the Treasury Abandonment of the Naval Training Station at Newport will leave “the training station at Hampton Roads, Va., at the Naval Operating Base there comers to the ranks of bluejackets. A saving of $205.000 is foreseen by placing the Marine Corps recruiting camp at Parris Island in a reduced commission status. Closing of the Charleston, S. C., Navy Yard would entail closing of the ~accompanying naval hospital. 5 In the opinion of naval officials, the navy yards at Boston and Charleston, S. C., are not required at this time with the reduced fleet and if these yards are shut down only caretakers will be in charge, with a number of civilian workers thrown out of employ- ment there. Some 500 civilians are employed at Charleston and 1540 at Boston, while at New Orleans the cur- tailing of the duties of 104 civilians employed there would save the Gov- crnment about $150,000, in the opinion of the naval experts. A reduction 0? $3,035,000 for modern- izing the naval vessels U. S. S. Idaho, New Mexico and Mississippi is antici- pated under the revised program, but any further cut below this figure would be an expense, due to the prolongation of the work, rather than a saving, the officials have calculated. A limit of $30,000,000 for this work was set by Congress. Pfgesldl‘nt Hoover is reminded that only 5 of the 11 destroyers authorized by Congress last year are now to be built and a great saving is effected by this move. Further Reductions Visioned. “The only reduction made in ‘increase of the Navy' was that which was inci- aent to the suspension of the contracts for 6 of the 11 destroyers which were authorized last year,” says the Secre- tary’s letter to the Commander in Chief of the Army and Navy. “The estimates permit the continuation of work on all vessels now under construction or under contract and also-the laying down of the 8-inch gun cruiser permitted under the London Conference to be laid down on January 1, 1933.” Naval officials foresece further reduc- the President that they are “very diffi- cult to estimate with accuracy, because some of the savings in 1932 are ab- sorbed in the reduced estimates for 1933.” This request is made of President Hoover by the Navy: “Owing to the drastic changes which are involved in this large reduction lndl the short time available for considera- tion of the effect of these revisions, it is recommended that a flexibility be- tween the various appropriations be pro- vided for, either by making a total lump sum appropriation for the naval estab- lishment or by authorizing 10 per cent interchangzability between appropria- tions upon approval by the Secretary of may arise in the administration of these reduced propriations which cannot now be foreseen.” | state commerce, “CARRIE NATIONS” | URGED BY CANNON A4 @ 5 *V Says They Should Smash| %4 Speakeasies Where Officers Refuse to Enforce Law. By the Associated Press.” ATLANTA, Ga., October 16.—"Car- rie Nations” by the thousands should rise up and smash the speakeasics of New York City and other places where officers refuse to enforce the prohibition law, Bishop James Cannon, jr., said here last night in addressing an Atlanta prohibition mass meeting. ‘The bishop said it was the duty of the officers to enforce the prohibition as well as other laws and where the State authorities told the local officers they were not obligated to enforce the prohibition laws, then the “Carrie Na- tlons” should smash the bottles and barrels of speakeasies. Bishop Cannon said “it can not be ignored that the Roman Catholic Church from the Pope down through the heirarchy is 90 per cent opposed to the prohibition law.” He was citing the factors which he said were arrayed in opposition to this law. He asserted Alfred E. Smith, Demo- cratic Chairman_John J. Raskob and Gov. Franklin D. Roosevelt of New York “were friends of the liquor traf- fic before the prohibition amendment and are friends of the liquor traffic now.” ‘The bishop said the talk of these and others respecting State's rights on the liquor question was mere camouflage. Bishop Cannon voiced opposition to the resclution passed by the American Federation of Labor Convention at Vancouver favoring the legalizing of beer of 2.75 per cent alcoholic content. He said that places for distribution for the beer would become spots where “illicit liquors can be sold with less chance of detection.” He said also that the suggestion for a referendum was an effort to short- circuit this question and that a referen- dum “which they have in mind” is un- constitutional. - PROGRESSIVES ASK CURB ON UTILITIES BY COMPETITION __(Continued From First Page.) whereby the standards of service and of rates may be established, which can be applied in the regulation of private | enterprises. Would Control Motor Transport. The regulation of motor transporta- tion in interstate commerce or in intra- y the same agencies as those which regulate rail trans- portation, is proposed. This regulation would include airplane transportation as well as busses and trucks. ' A separate Federal commission on communications to regulate interstate | communication by wire or wircless is | advocated in the report “Public_control of all public business | is essential to self-government.” said | the report. “It has been thought that we can avoid a purely political control | of public utilities service by establish- | ing_enterprises endowed with private legal rights, coupled with public obliga- tions. The unfortunate result has been the growth of private rights and the de- cay of public obligation in the handling of public business. Efforts at govern- | mental regulation of privately owned utilities has produced a counter force | of private regulation of government. | “The recapture of public control of all public business and the elimination of any private monopoly control of pub- | lic necessities are the greatest problems | that confront the American people to- | day. It will not be possible for all peo- | ple to enjoy sustained prosperity so | long as they are compelled to pay an increasing tribute to support the ficti- | tious ‘values' of vast private fortunes which are based on_the earning power of special privileges.” | Competition Held Best Curb. The report said that in recent years the force which has been most effective to control profiteering out of public needs has been competition. It added that when private competition has failed, public competition frequently has_demonstrated its impressive power. “Public competition,” continued the report, “is the most effective form of regulation. The way to recapture public control of public business is to promote public operation of public business. We may well leave it to the theorists and to the prophets to argue over the eventual outcome. The eventual fields of public and private enterprise, the eventual uses of direct or indirect public control, will be determined by economic and social requirements that will arise out of the changing material conditions, and the changing political and ethical philosophy of the people.” In its discussion of the regulation of electrical utilities, the committee recom- mends not only the establishment of a new Federal commission, but also the continued regulation of electrical util- ities by State commissions, with co- operation between State and Federal regulatory bodies. “The Federal and State Governments could co-operate in establishing enter- prises for the production and distribu- tion of electric power wherever feasible,” said the report, “and thereby create standards of service and of rates which can be applied in regulation of privately owned electircal utilities. Public Corporation Proposed “If competition between private and public enterprises is fairly conducted on both sides, as it should be, the eventual survival of either or both of these means of serving public needs will depend upon their comparative capacity for public service. The issue is too great to be decided by theory or prejudice. “Privately owned and operated elec- tric power enterprises now control so large a part of the gvailable sources of production and the available avenues of distribution that it should be adopted as the ruling principle of Federal and State action that further developments in this field should be confined, wherever the alternative is available, to direct public control. “This does not require the political selection of operators, nor the use of the taxing power to support such enter- prises. They should be self-supporting and should be controlled by public cor- porations as free from immediate po- litical pressure as the privately owned public utilities, but also incapable of exerting the poltical pressure now being exerted by such private corporations.” Mr. Richberg, the chairman of the committee making the report, is an at- torney from Chicago. Other members of the committee are Paul U. Kellogg |wd Amos Pinchot, both of New York; E. Mosher, Syracuse University; Judson King, Washington; James C. Bonbright, Columbia University; Walter S. Memis, Chicago; Theodore Kron- shage, jr., chairman of the Wisconsin Public "Service Commission; Carl D. Thompson, Chicago; Mrs. Ann Dennis Dursch, Washington; Willis J. Spauld- , commissioner of public property, Illinols; Kenneth Harlan, Portland, Oreg.; E. W. Morehouse, Northwestern University; J D. Ross, Seattic, Wash.; Morris L. Cooke, Philadelphia; E. M. Nockels, secretary, Chicago Federation of Labor; John M. Baer, Washington; David E. Lilienthal, Wisconsin; Lloyd E. Bemis, Chicago; Henry T. Hunt, New York; Charles E. Miriam, University of Newton Jenkins, Chicago; Martin G. Glaser, University of Wise consin, and Stephen Raushenbush, Harrisburg, Pa, b o NN TORRR ~ELLE. € Prepsters find what they want in 2-Trouser " Saks-Value PREP SUITS 518.75 WHE,\' a suit is preferred by Prepsters, college- freshmen and up-and-doing voung men at business— that suit must be “right”! ND Saks “Prep™ Suits <X are “right Styled in the Saks way expressly for vouth—in the fabrics youth wants: Soft Shetlands, Hop- sacks and Tweeds. Every suit handsomely lustrous- lined. Chest sizes, 31 to 36. Saks—Second Floor New Value! New Style! Boys’ Sturdy All-Wool 4-Pc. KNICKER SUITS 8.95 TYLED to suit every boy! Priced to suit every parent! Tailored of ool fabrics that stand up under hard wear—yet hold their own for all dress occasions. 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