Evening Star Newspaper, October 18, 1931, Page 2

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A s G.0. P. FAGES TASK * INAPPORTIONMENT Redistricting of House Seats Causes Change in Delegates to Convention. BY G. GOULD LINCOLN. The apportionment of delegates to the next Republican National Conven- tion promises to give the Republican National Committee some real work | when the committee meets here in De- cember. ‘The representation of the States in the G. O. P. National Conven- ; tions has been fixed largely by their congressional representation, with two delegates for each member of the House and each member of the Senate. Un- der the new apportionment of the House, in accordance with the 1930 census, 11 States gain a total of 27 seats in the House and 21 States lose an equal number of seats. The problem before the national com- mittee will be to determine just how many delegates each of the States shall have at the next convention under the new conditions. Efforts may be made to retain for those States losing con- gressional representation their old rep- resentation in the national convention, while the States which gain representa- tion in the House are allotted increases, it was said yesterday. But there diffi- culty arises. Delegates ere elected in congressional districts and at large, de- pending on the States. It would not appear to be feasible to elect delegates for districts that do not exist any longer. 13 States Lack Redistricting. The situation, however, is further complicated for the Republican Na- tional Committee by the fact that ia some of the States the redistricting for congressional elections has not yet been accomplished. Up to yesterday the office of the clerk of the House had no official notice that redistricting had been completed in 13 States—Con- necticut, Florida, Kentucky, Minnesota, Missouri, New Jersey, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, Virginia and Wisccnsin. Some of these States are expected to enact redistricting laws in time for the selection of delegates next year in accordance with the congressional dis- tricts allowed them under the reappor- ticnment act of Congress. Others are likely to let the matter stand and to elect at large their Congressmen, which would mean the selection of delegates to the national convention at large, t0o. With the nomination of President Hoover conceded even by his opponents in the Republican party, the reappoint- ment among _the States of the delegates to the G. O. P. National Convention is not so important as it might other- wise have been. However, 5¢ delegates will be taken from 21 of the States and turned over to 11 other States, if the old plan of apportionment according to congressional strength is followed out. And 54 delegates in a close nomi- nating race would be of considerable importance. If Vice President Curtis should determine not to be a candidate to succeed himself next year, but to enter the race for the Senate in Kansas, the reappointment of the delegate strength in the National Convention may play a decisive part in the selec- tion of a running mate for President Hoover. California Increases. President Hoover's own State, Call- fornia, is due for a big gain in repre- sentation in the Republican National Convention. Because of its great growth in population, California is to have 20 members of the House in the Seventy-third Congress instead of 11 in the present Congress. This ordi- narily would mean a gain of 18 dele- gates for California. Texas would gain 6 delegates; Michigan 8, and New York and New Jersey and Ohio 4 each. The greatest losses in delegate repre- sentation would be in Missouri, 6; Pennsylvania, 4; Iowa, 4; Kentucky, 4, and Georgia, 4. Massachusetts is due to lose 2 delegates and Kansas, Vice President Curtis’ State, 2 also. The meeting of the National Com- mittee will be called primarily for the selection of a convention city and for fixing the date of thz convention. But in addition a number of important problems will come before the com- mittee. Besides the apportionment of dele- gate strength there is the question of finances. The Democratic national or- ganization already has launched a drive to raise a $1,500,000 “victory fund,” with a Nation-wide committee :n charge. The Republicans must give earnest consideration to strengthening their own campaign funds. It is pos: sible that some fund-raising olan will be worked out and lald before the Na- tional Committee. The National Committee meeting will be accompanied by general discussion of the political situation. With party leaders here from every State in the Union and the Republicaa party ad- mittedly facing a hard fight, the dis- cussions of candidates and policies are likely to cover a wide range. By the time the committee assembles here Vice President Curtis probably will have an- nounced his plans for his own political future. If he steps aside to seek a nom- ination for the Senate, he leaves the fleld wide open for the vice presidential nomination. The supporters of various potential candidates for second place on the national ticket already have been busy sounding out sentiment. With the National Committee to canvass they may be expected to be active in Wash- ington. Soft-Pedal Prohibition. | ‘There is a problem which the leaders | of the G. O. P. will endeavor to soft| pedal at the meeting of the Nslionnl{ Committee, but which may crop up de- spite them—prohibition. "The national | committee men and women in some of | the Eastern and other States which| have big industrial centers are worried | over the liquor question. Some of them | are anxious to wean the party away | from its dry stand. They may air their | views when they come to Washington, if not in committee meeting, then out- | side the committee chamber. The Re- publicans are anxlous to avoid a split in the party over this issue. They ex- pect President Hoover to run as a dry on a dry platform, but they do not wish to stir the matter up now. Rather, | they are hoping that the liquor question ; will cause another 1924 ruction in the | Democratic party when it gathers in | national convention. Chairman Fess is expected to issue | a call for the Republican National Committee meeting either tomorrow or ‘Tuesday. The date fixed probably will be in the second week of December. ‘The first week of Congress, which opens December 7, promises to be busy with legislation needed to make the one-year suspension of intergovernmental debts effective and with the organization of the House and Senate. The chairman had considered calling the meeting of the committee before Congress meets, but the committeemen prefer, it is said, to meet here during a session of the Congress. Furthermore, it was sug- gested yesterday that perhaps the pres- ence of the National Committee in Washington might aid in ironing out differences arising over the organiza- tion of the House, bringing influence to bear on 1ecalcitrant Republican members of that body. if necessary. The Democrats will hold their Na- tional Committee meetin® in January. They will have the same problem to face in fixing the delegate strength of their next national convention. . Theater attendance at Sydney, N. 8. ;.‘. is greataer than any time this % L | CHICAGO, October HEAD OF CREDIT THE SUNDAY STAR, WASHINGTON, D. C. OCTOBER 18, CORPORATION ONCE REFUSED CABINET POST ! President Taft Offered G. M. Reynolds Portfolio as Treasury Secretary. Chicago Banker Began His Career as Office Boy in Small Town in lowa. By the Associated Press. CHICAGO, October 17.—A farm boy | who started his financial career sweep- |ing out a small town Iowa bank be- came today chairman of the National, Credit Corporation, proposed by Presi- | dent Hoover to liquidate frozen assets, and to which American bankers have pledged hundreds of millions. He is George M. Reynolds, chairman the Executive Committee of the ¢ ¢ “Trust Continental Illinois Bank and Co. Reynolds' selection, made at the direc- tors' meeting in New York, honored & banking career that made him head of the largest bank West of New York, the Continental Illinois. Ignoring his parents’ request that he attend college, Reynolds entered the Guthrie County National Bank at Panora, Iowa, at the age of 15 as of- fice boy, 53 years ago. Was Made Loan Agent. Later he became the bank's loan agent and traveled over Nebraska, es- tablishing credit with farmers. Then it was & cashier’s post in a Des Moines bank, which two years later made him president. Two more years, and Reynolds was drawn into Chicago as cashier of the old Continental Na- tionnal Bank. On January 1, 1906, while he was still young enough to be the son of many of the directors, the bank made him president . In 1908, soon after his election as president of the American Bankers' As- sociation, President Taft offered him the Treasury post in the cabinet. Reynolds had a theory that business and politics do not mix and refused the portfolio. Reynolds has another theory, marry early; and he did. His son, Earle H. Reynolds, is now president of the Peoples GEORGE M. REYNOLDS. Trust & Savings Bank on Michigan bou{e.\iud, an afllate of the Conti- nen| Sought After as Speaker. When the Iliinois Merchants was merged with the Continental after John J. Mitchell's death, Reynolds was made chairman of the executive committee. He is head of the Clearing House As- soclation and this week directed the forming of the Chicago rediscount pool, to which approximately $70,000,000 has been pledged. Hearty in health, with white hair and youth’s gleam in his eyes, Reynolds is a much sought banquet speaker. He has a lore of interesting bits of humor and laughs jovially as he tells them. “When I look back on my own life” Reynolds once said, “I realize how much 1 owe to the fact that I recelved my early training in & small country. My education consisted largely of what I learned through contact with men and I do not know whether a university could have taught me more. The only trouble I see with big universities is that they seem to unfit the graduate to get down to the level of the beginner when the time comes to start a business career.” MELLON RELEASES MILLIONS IN BANKS Approves Credit Debentures as Acceptable Security for U. S. Deposits. BY DAVID LAWRENCE. Five hundred million dollars’ worth of collateral now used by banks as se- curity for the money the Federal Gov- | ernment keeps on deposit throughout | purposes, it was learned yesterday, as a result of Secretary Mellon's ruling that the new debentures of the National | Credit Corporation will be accepted as security for all Government deposits. Heretofore Government bonds, bank- ers' scceptances or commercial paper have been acceptable as security for, Government deposits up to 90 per cent of their face value, but in a desire to endow the securities of the National Credit Corporation with a greater credit use, the Treasury Department extended the same 90 per cent privilege to the new debentures, thus announcing its confidence in the value of the de- bentures and the soundness of the en- tire bankers' pool plan. Government _deposits fluctuate in amount and, of course, there may™be national banks which have only 10 per cent of their capital invested in the new debentures, while their Govern- ment deposits may run higher, so ac- tually there will not be a parallel of the exact amounts in each bank, but with the power to use the debentures as collateral, a bigger value has thus been given them for banking purposes. The release of approximately $500,- 000,000 of good collateral at this time will enable the banks to increase to some extent their borrowing at the Federal Reserve banks if they desire and thus will add substantially to the borrowing power of American banks. Something of the same kind is hap- pening in connection with State and county funds. Thus, in Ohio, the at- torney general has ruled that real es- tate mortgages always have been legal to secure State deposits. Other States have similar laws. The present de- pression 15 teaching new and v uses of credit instrumentalities. (Copyright, 1931.) AKRON TURNS HOME FROM MIDDLE WEST Dirigible on Way to Ohio After Tour of Five Large Cities; Pro- bation Period Near End. By the Associated Press. 17.—America’s new mistress of the skies, the Akron, rode the breeze toward her home port late today, her hours of probation almost | at an end. The great airship glided over Chicago at 1:35 p.m., its second visit of the day, and then moved out across the southern reaches of Lake Michigan pointed for her dock at Akron, Ohio. The round of calls upon neighbor cities of the Middle West gave the Akron the final tests required to prove herself worthy of her destined place in the U. S. Navy. Cincinnati, Louisville, St. Louis, Chicago and Milwaukee were her ports of call. A crisp, sparkling day gave the lake- side cities a thrilling view of the ship. Spanning Illinois from St. Louis by night, the Akron reached Chicago as the city was beginning its working day and, following the shore of the lake, leisurely moved northward past the Great Lakes Naval Station to Milwaukes. After a noontime call at the Wiscon- sin port, the dirigible turned about and sailed with a northerly wind for Chicago again. The 90 miles were negotiated just an hour. the country can be released for other | CONGRESS WILL GET A.F.OF L AIDPLEA “Millions” Will Be Asked to Supplement Local Relief Funds. By the Associated Press. VANCOUVER. British Columbia, Oc- tober 17.—William Green, president of the American Federation of Labor, was directed by the federation's executive council in session here today to go be- force Congress with an appeal for many | millions of dollars to be appropriated s an unemployment relief fund. The executive councll has expressed | its determination to secure the appro- | priation of an adequate sum of money | to “meet the requirements of the un- employment situatfon in a full and lcomp]ele way,” Mr, Green sald. Hunger Must Be Relleved. His statement follows: “‘Hunger must be relieved, food and clothing and shelter must be supplied the needy. “The executive council appreciated | the fact that local communities will | be_called upon to do their full share. | Likewise, the municipal and State gov- ernments will be called upon to respond in a liberal way; but owing to the fact that heavy demands have been made upon local communities for the relief of unemployment since 1929, it is the opinion of the council that the Federal Government should and must respond through a generous appropriation of Federal funds in order to assist and help in a full and complete way the IL(’X:M communities throughout the Na- on. Sum Is Many Millions. “For this reason the executive coun- cil directed the president of the Federa- tion of Labor to present to Congress & strong appeal for the appropriation of a large sum, amounting to many mil- lions of dollars to be used as an un- employment relief fund and to be used in supplementing the monies appropri- ated by local communities, city and State governments. “It is the firm opinion of the execu- tive council that Congress is ready to take such action and that when it meets in December it can be prevailed upon to make liberal appropriations for un- emé)loymem rellef and to devise ways and means by which the money needed can be raised. “The needs are very great, distre: widespread, consequently the council is fully convinced that Congress will re- spond in a most wholehearted and gen- erous way." ————p BOAT SUNK, THREE SAVED; WOMAN, CHILD MISSING By the Associated Press. CLAYMONT, Del, October 17.—A woman and ld were reported miss- ing and three men rescued after the motor launch Wachutta, 2d, in which they were riding. was rammed and sunk by the motor ship Triumph in the Dela- ware River late today. The Triumph, commanded by Capt. Milde, was bound from Philadelphia to New York, Norfolk and the Far East. Capt. Rice, skipper or the British steamer Forthbank, outward bound, re- ported he saw the colliston and put out a boat, but that when it reached the scene no person could be found. e WINS ARMY AIR RACE GALVESTON, October 17 (#).—Lieut. Don W. Mayhue of Palestine, Ill, won the annual Mason M. Patrick Army lane Trophy race of the 3rd At- tack Group here this afternoon, aver- aging 142.59 miles per hour over the 60-mile course. Lieut. Eric G. Danieison of Spokane, ‘Wash., was second with an average of 14145, and Lieut. Richard A. More- house of Columbus, Ohio, third with 140.906. Lieut. Mayhue alternated for Capt. Lotha A. Smith. BOY WINS FISHING CONTEST WITH STORE-BOUGHT “CATCH” Judge Protests, but Rules Are Cited, and He Is Hooked by 10-Year-Old Who Knew a Thing or Two. By the Associated Press. CHICAGO, October 17.—This is a fish story—and the South Park com- missioners got hooked! Came 10-year-old Jack Rubinstein with a 10-pound -pike today to a con- test sponsored by the commissioners, supposedly for the largest fish caught ;-E year in the Washington Park goon.. - “You didn’t catch that fish here— see, the paper's still on it,” the as- tounded judges told the boy. “I know I didn’t,” Jack replied, "bl.;: read zhuur rules—they say the fish entered in the HOOVER MUST CUT §300,000,000 COSTS Appropriations Exceeded by That Amount—Limit on New Estimates. (Continued From First Page.) ministration officials. in that the de- partments had been urged in advance by the President personally to hold their requests within the totals for this year, s0 far as this was possible. As it was, the total requests as pre- sented by the departments and inde- pendent agencies which receive con- gressional appropriations amounted to about $4,400,000,000, officials say, ex- clusive of the expenses of the service, which are payable from postal revenues. Mr. Hoover's self-assigned problem is to reduce the estimates to around $4,100,000,000 or lower. The undertaking is complicated by the fact that more than half that figure is fixed Federal obligations. It means, the President pointed out yesterday in a public statement, that the effort to make reductions must be concentrated on less than one-half the budget. ‘The possibility of a tax increase does not necessarily hinge on the success of the President’s effort to keep budget estimates within a certain limit. Bar- ring & sensational business upturn which would be reflected immediately in greatly increased Federal revenue, it is considered virtually imp@ssible to balance the 1932-1933 budget without increasing taxes. Views Differ Sharply. While the administration has yet to decide whether to make up the dif- ference by & tax increase or a bond issue, and there is a sharp division of opinion among fiscal officers on the policy, the Treasury is making studies to be prepared to recommend increased taxes, if this course finally should be determined upon. The President has made it clear that that bridge does not have to be crossed much before Con- gress convenes in December. Meantime he is watching the business outlook for possible indications of a changed revenue situation in the year for which the fiscal plans now are being laid. ‘The President’s suggestion that pub- lic opinion might need to be brought to bear against the pressure for special projects which continues despite the Treasury deficit, was regarded in many quarters as aimed, in part at least, at Navy officials who feel that the r¢ trenchment drive is cutting the Navy too_sharply. That Secretary Adams shares this view was stated vesterday by persons who profess to have seen coples of his letter to the President accompanying the revised budget. The Secretary is reported to have advised Mr. Hoover in that letter that, while the Navy was complying with his wishes, it meant a serious impairment of naval strength. The Secretary also undertook to state in the letter, it is said, to what extent the Navy has reduced is fleet, equip- ment, personnel and activities in the 18 months since the economy order first was pressed sharply on Government De- partments. Publication Ts Deplored. The publication of minute detafls of Secretary Adams' letter tc the Presi- dent, listing the many activities that were proposed to be curtailed in revis- ing the Navy budget, was deplored in administration circles. There were some officials who took the view that it confirmed the President’s suspicion that Navy cfficials were trying to force the President’s hand by mobilizing re- sistance to the economy move from all the communities and political leaders that would be affected by the cuts now proposed. In this connection it was pointed out | that Secretary Adams, in suggesting the closing of the Boston and Charleston Navy Yards and the Newport training station, stated in his letter that these stations could be dispensed with with- out impairing Navy efficlency. The point was considered of more than nor- mal importance as lkely to direct the political pressure for ths maintenance of these stations against the Navy rather than against the President, un- less his final budget, as submitted to Congress, should indorse the Navy's suggestion in this respect. HUGE CREDIT BANK PERFECTS DETAILS OF ORGANIZATION (Continued From First Page.) re-establish itself on its forward course. “It was the unanimous opinion of the directors that the National Credit Cor- poration in its operations will contribute materially to business recovery generally and have a far-reaching effect in crystallizing the confldence of the en- tire Nation. “In many of the Federal Reserve dis- tricts the organization of local associa- tions and banks through which the cor- poration will operate has been perfected and it is expected that the entire ma- chinery will be set up and functioning within the next few days. “With a view to bringing about, in so far as possible, uniformity of pro- cedure in the practical operation of the plan, the directors also adopted articles of agreement for the local associations of banks to be formed in the respective Federal Reserve districts: suggested by- laws for those local associations; forms of subscription blanks to the National Credit Corporation gold notes: forms of application blanks for loans to be used by borrowing banks and suggested reso- lutions for the adoption by local asso- ciations covering acceptances of loans and requests upon the National Credit Corporation for advances approved by local Loan Committees.” Other Officers Named. Other cfficers named, in addition to the chairman and president, were: Vice presidents: Daniel G. Wing, chairman of the board of the First N tional Bank of Boston, and Walter W. Smith, president of the First National Bank in 8t. Louls, Mo.; secretary and treasurer, Nelson 8. Dearmont, assistant vice president of the New York Trust Co.; Executive Committee members, Mr. Wing, Boston; Livingston E. Jones, president of the Pirst National Bank of Philadelphia; Arthur E. Braun, presi- dent of the Farmers' Deposit National Bank of Pittsburgh; Nathan Adams, President of the First National Bank of Dallas, Tex., and Frank B. Anderson, chairman of the board of the National B‘:nk of California, N. A, at San Fran- cisco. While the initial amount of funds available has not yet been officially announced. it is understood that sub- scriptions in excess of the initial $500,- 000,000 proj have already been received. New York banks have pledged $150,000,000. It is understood that only a portion of the original subscriptions will be requested at the start. ‘The corporation may eventually raise as much as a billion dollars. The final siate of directors was an- nounced only last Monday. In the meantime the various directors have endeavored to aid in setting up re- glonal organizations in their districts, while those coming from considerable distances, particularly those San Francisco and Dallas, have had to nper;{d several days on trains for New York. Several of the drectors planned to leave New York tonight to return to their districts to take charge of the regional work as soon as possible. Ninety-year-old 8ir Alfred Yarrow was among 40 who recently flew oyer London in a new airliner. Which, with her sister Navy airplane carrler, the U. 8. 8. Lexington, may be purchased for transatlantic passenger service. The Sarat 1931—PART ONE. U. S. 8. SARATOGA, itoga and Lexington together cost $90,000,000 to bulld. A company is reported Boston, with railroad backing, to buy the ships and, after reconditioning, to opeglhy them between Boston and Europe. May Becomve Ocean Liner | to have been formed in BUILDING SCHEDULE = AHEAD, SAYS HEATH Vast U. S. Program Could Be Finshed in Two Years, He Tells Forum Audience. A prediction that the Treasury De- partment can practically complete the 10-year public building program within two years If Congress desires was made last night by Ferry K. Heath, Assistant Secretary of the Treasury, in charge of the gigantic task, who spoke In the National Radio Forum arranged by The Star and broadcast over a coast-to- coast network of the Columbia Broad- casting System. Coupled with this prediction, how- ever, Mr. Heath reminded his listeners that the Treasury Department has ac- celerated the $700,000,000 building pro- gram to & point where it will be neces- sary for Congress to remove present restrictions if the present rate of prog- ress is to tbe continued. With that done, the program could be completed four years ahead of time, he sald. Reviewing the progress of the great building task, so far as it relates to the work done under the supervisicn of the Treasury Department, Mr. Heath said that its relation to the unemploy- ment situation has been misunderstood and misconstrued. Scores Critics of Policy. “The breast beaters and wand wav- ers, who, for various reasons, disap- prove of the present administration, have filled the press with complaints and criticlsm,” he said. “I think there can be little sald against the policy of the governmental construction to care for the actual needs of the Gov- ernment during periods when private construction is lagging and when there is so much unemployment as is threat- ened the coming Winter. “The maximum amount of useful Government expenditure should be maintained,” Mr. Heath declared. “It never has been claimed nor believed by the administration that Government ex- penditures for constructive purpose could entirely care for an enormous number of unemployed persons. “It has been maintained that in a town where a Federal building is need- ed, the construction of that building during a rerlod of unemployment would be helpful and encouraging to the com- munity. The construction of buildings under the Treasury amounts to about 20 per cent of the construction program of the Federal Government.” As an example how it operates in a community, he cited the $16,000.000 Post Office’ Building in Chicago. Con- trasted against this in a normal year, he pointed out, are ordinary expendi- tures in Cook County of around $500,- 000,000 for building construction. “Private building expenditure then in Cook County in one normal year amounts to as much a sthe total spe- cifically authorized Federal building con- struction, which is supposed to extend over a period of several years and to apply to the entire United States,” he said. On the other hand, he said, the Government is engaged in a building pregram from six to ten times above normal, and on this record he submitted that fair criticism cannot be based on any lack of effort on the part of the administration to be helpful. 800 Projects Authorized. “Contracts are being let at the rate of $10,000,000 a month,” Mr. Heath said, “and so far there have been almost no labor difficulties and the work is pro- ceeding all over the country with an adequate wage being pald and without interruption of work because of labor controversy.” To date the Treasury Department has specific authorization to proceed with approximately 800 of the recommended projects, he explained. The total limits of ‘cost’ represent $496.000,000 of the $700,000,000 authorized to be expended. This means working on approximately 70 per cent of the total building pro- gram which is to be completed at the end of 1937 under existing legislation. (The full text of Mr. Heath's address is printed in the Editorial Section of today's Star.) EDNA MILLAY WINS AWARD FOR VERSES H. H. Levinson and Other Prizes Are Announced in Issue of Poetry Magazine. By the Assoclated Pre; A | CHICAGO. October 17.—Edna St. { Vincent Millay was awarded the Helen Haire Levinson Prize, offered for a poem or group of poems by an Ameri- can appearing in Poetry, a magazine of verse. The announcement was made today in the current issue of the publication. The Levinson prize of $200 has been offered for 16 years by Salmon O. Levinson, Chla;%? attorney, in memory of his wife. e award to the New York poet was based on her “Three Sonnets.” ‘William_Carlos Williams of Ruther- ford, N. J., was given the guarantor's | prize of $100 for “The Botticelli Trees.” Harold Lewis Cook of Avon, Conn., received the Friday Club prize of $100 for his group, “Things Described.” Basil Bunting, an English t living in Rapallo, Italy, for his “Villen,” won the lyric prize of $50. Helen Hoyt (Mrs. W. W. Lyman) of St. Helena, Calif., won a special lyric rize offered by an anonymous poet for Rfl' three lyrics, “For One Who Died in Spring.” WARNS AGAINST DISEASE Dr. A. Barklie Coulter, chief of the department_of internal medicine at Gallinger Hospital, warned 1,000 em- ployes of Woodward & against negligence which might result in tuber- , in & talk made before the group yesterday morning. The address was one of a series of Jectures on health arranged amon; local department stores by the Distric Tuberculosis Association. Dr. Harry Bernton will speak at Goldenberg's and Dr. Viola Russell Anderson at Kann's lltir in the zu'omh".o"d A group of col Pl assembled to carry this work into organizations employing large numbers of colored men and women. Guilty “AL" CAPONE. LAVAL LAYS PLANS FOR HOOVER TALKS Confers With Financial Experts and Federal Reserve Bank Representative. By the Associated Press ABOARD S. 5. ILE DE FRANCE, | en route to New York, October 17— | Premier Plerre Laval of France con- ferred today with financial experts over matters concerning the French stand- point on the questions he will discuss | with President Hoover at Washington. The premier also conferred with | Randolph Burgess, representative of the Federal Reserve Bank of New York, | who 15 also aboard the ship. | M. Laval was on deck at 9 o'clock this morning for exercise. Hardly any | one else was out at that time and by | the time the other passengers began to appear the premier was at work in his | suite. | He lunched today with Robert Pell, | secretary to United States Ambassador Walter E. Edge, and J. Theodore Mar- riner, counselor of the American em- | bassy at Paris, and discussed with them details of his Washington visit. FLORIDA G. 0. P. TO DRAFT | REPLOGLE FOR SENATE Wabash R. R. Director Is Offered as Opponent to Fletcher, Present Incumbent. By the Associated Press. JACKSONVILLE, Fla., October 17— Florida Republicans, meeting here to- day to plan for the 1932 political cam- paign, decided to “draft” J. Leonard | Replogle of Palm Beach, who made a fortune in steel, to op United States Senator Duncan U. Fletcher, the Demo- vey, Florida real estate developer, who was chosen as the can- didate for Governor, told the conven- tion Replogle did not want to run for the Senate and would not become & candidate unless drafted. Replogle is | a director of the Wabash Railway. TWO MEN KILLED, PAIR BADLY HURT, IN AUTO MISHAPS (Continued From First Page.) Lucy Tyler Newton, is employed in a bank at Orange. Other survivors in- clude two sisters, Mrs. T. N. Massie and Mrs. Willlam Walker of Westmoreland County, and two brothers, Blake New: ton, superintendent of schools for West- moreland County, and Robert Newton, .{)xpermtendent of schools at Hampton, a. ‘Two children and a middle-aged woman were injured yesterday in a series of accidents in Washington. Bettie Robey, 3, of 2217 Chester street southeast, lost two teeth when an automobile driven by her father, Johm E. Robey, collided with a truck at Good Hope road and Thirteenth street south- east. The child was thrown from her seat by the impact of the crash. The truck, according to police, was driven by Arthur Halloway, colored, of 1122 Congress street northeast. - Nine-year-old Willlam E. Thomas, 520 E street northeast, escaped with minor injuries when he fell from the rear bumper of an automobile on which he had “hopped” a ride, at Eleventh and Maryland avenue northeast. The driver, Thomas N. Lawrence, 48, of La Plata, Md., took the boy to Casualty Hospital 'where he was treated for cuts and bruises. Mrs. Ethel M. Ward, 40, of Kenil- worth avenue and Benning road south- east was treated for cuts about the face and hands last night after a Po- tomac Electric Power Co. truck crashed into a machine driven by her husband, P. W. Ward, 40, at Anacostia road and Blaine street northeast. ‘The driver, Charles Claggett Emmett, 24, of Alexandria, Va. was arrested by police and taken to the eleventh pre- cinct for reckless driving. Mrs. Ward was treated at a nearby drug store. TWO MEN SEVERELY HURT. Willlam Collins and Ray Marchael in Near Bethesda. Special Dispatch to The Star. BETHESDA, Md., October 17—Two men were seriously injured early to- night when their automobile left River road, near here, struck a tree and turned over on its side in a ditch. Both men were taken to Georgetown Hospital for treatment. ‘William Collins, 20, of Bethesda, an employe of Offutt's Confectionary, was the more seriously hurt, recelving a possible skull fracture in addition to cuts and bruises. His companion, Ray Marchael, 23, of 105 Wooten avenue, Priendship Heights, suffered severe la. cerations of the head and nose and | began deliberating at 2:43 p.m. today.} | concerning the gang leader’s alleged CAPONE CONVICTED ON50F 23 COUNTS Faces 17-Year Term—lury Reaches Verdict After Long Deliberation. 1 ___(Continued From First Page) to argue their motion for arrest of the Jjudgment and set 10 a.m. Tuesday as the time. The court at first denied the motion point blank when Attorney Fink pre- sented it, saying it was “obviously im- proper” and there could be no argu- ment about it. He said that unless the defense moved at once for & new trial he would pronounce sentence tonight. Pink persisted, however, and the court then asked for “assurance that you have grounds for the motion.” I not only can assure you of that, your honor,” Pink said, “but I can assure you I will convince your honor that you should arrest the judgment and that you will do so.” All other motions will be argued Tuesday also the court said. Counsel for the Government recessed for 10 minutes to confer “on the con- sistency of the verdict” hinting that the contrasting judgments of the sev- ;“u{' counts “might need be looked nto." They reported after a conference that the statutes showed the verdict to be consistent. Attorney Ahern had said the same from the time it was returned. Although the judge said he “was very clear about the impropriety of an arrest of judgment,” Attorney Fink g:::l‘s'ed to cite him “a long line of Will Pass Sentence Tuesday. Judge Wilkerson adjourned court withcut passing sentence, indicating that he would sentence Capone Tues- day after he had heard motions from both sides. Judge Wilkerson told the jurors that any who wished to could be excused at once and that those who | wanted to serve on other cases might remain in the custody of the marshal Capone, a wide grin on his scarred face, was told that he didn't look as if he felt badly. “I'm perfectly healthy,” reply. Of the Government prosecution staff, Grossman and Assistant United States District Attorney Samuel G. Clawson both said they were “satisfied with the verdict.” United States District At- torney George E. Q. Johnson, who di- rected the three-year prosecution and made the final arguments to the jury this morning was not in the court room to see the close of the battle. The 12 farmers, merchants and tradesmen from the suburbs of Chicago was his Eleven days of evidence and arguments evasion of taxes were brought to a close when Judge Wilkerson finished instruc- tons to the jury. Capone Appears Relieved. Capone, dressed in & grass-green suit, yellow shoes and green tie, stretched himself in apparent relief and smiled to his attorneys as the jury marched out of the ocourt room. The portly gang leader had leaned forward to catch every word of the judge's instructions. Judge Wilkerson informed the jurors they might return sny one of the fol- lowing four verdicts: Innoncent on all 23 counts listed against him in two indictments, guilty on all of them. in- nocent on one indictment and guilty on the other, or innocent on some counts and guilty on others. Conclusion of the court case brought to an end a three-year intensive drive by the Government to put the world's most_notorious gangster in prison on a bookkeeping charge. It was a cam paign, in which the defense attorneys said, every utility of the Government was used and thousands of dollars ex- pended. Maximum Sentence 57 Years. If found guilty on all 23 counts, As- sistant District Attorney Dwight H. Green said, Capone would be liable to & maximum sentence of 57 years' im- prisonment—5 years each on 11 felony charges and 2 years on misdemeanor counts. Green said, however, that any sentence probably would not be more than one-fourth that number of years. ne, who has become known as the “world's worst gangster,” faces other legal perils. Another indictment charges he was gullty of liquor con- spiracy and lists 5,000 offenses. Also, he is under a six months’ sen- tence for contempt of court for delay in answering a summons to appear before a grand jury investigating his affairs. Capone insisted he was ill in Florida at the time. He has appealed the sentence. The Government's case against Ca- ne was completed today by District Attorney George E. Q. Johnson, bushy- haired, militant prosecutor, who direct- ed gathering of the evidence on which Capone was indicted. MAY MAKE LINERS OF PLANE CARRIERS Company to Buy Two for Passenger Service Is Re- ported Pending. By the Associated Press. BOSTON, October 17.—The Boston Transcript today said incorporation pa- pers would be filed next week at the State House for a company to acquire the naval airplane carriers Lexington and Saratoga for conversion into ex- press passenger liners designed to sail from Boston to Europe in four days. ‘The acquisition of the carriers, each of which cost nearly $45,000,000 when constructed several years ago, would be dependent upon the approval of Presi- dent Hoover, the paper said. He has not yet been approached. Sum “Probably $3,000,000.” ‘The New England group behind the project, the Transcript sald, was said to be ready to buy the ships “at & reasonable price, probably $3,000,000. A further condition was that the United States Shipping Board should agree to grant a loan for three-quarters of the cost of reconditioning, estimated at $11,250,000, and that the Post Office Department should award a “satisfac- tory” 10-year ocean mail contract to - | the_promoters, The transcript sald three of the rail- roads entering Boston, the New Haven, the Bcston & Albany and the Boston & Maine, together with the Pennsyl- vania, had agreed to indorse the financ- ing of the plan and to supply the man- agement. It further said the First Nationsl Bank and the banking house of Lee, Higgins & Co. would raise funds up to $7,000,000 for the initial inancing. Denles Bank Commltted. Charles E. Spencer, ir., vice president of the bank, who was said to have been one of those closely consulted by the promoters, denied the bank had com- mitted itself in any way. “We have been approached by the promoters with & prospectus and we are investigating the merits of the plan,” said Spencer. “but we have arrived at no opinion He added that, because of the magni- tude of the project, it was difficult to obtain definite figures upon which to reach conclusions. Preliminary estimates by the pro- moters, the transcript said, indicated the converted carriers could be ready for service by the Spring of 1933. It was planned if the deal were consum- mated to transform the carriers into ships at least a&s luxurfous as the Bremen or the Europa of the North German Lloyd Line. United States Senawor Wallace H. White, jr., of Maine, co-author of the Jones-White act, now known as the merchant marine act, was said by the transcript to have investigated the proposition and to have wvolunteered personally to sponsor the decommis= sioning of the carriers and their con- version into passenger snips. PROJECT AMAZES CAPITAL. Little Knowledge Is Possessed Here, Navy Offigials Absent. By the Associated Préss. Washington was amazed today to hear of plans of private interests to purchase the Navy's two glant aircraft carriers, the Lexington and Saratoga, for use in transoceanic shipping. While Chairman Britten of the last House Naval Committee expressed doubt of such a project, Senator White of Maine confirmed that the move was in contemplation. Senator White, who served for years as Chairman of the House Merchant Marine Committee prior to his election to the Senate, said he had been ap- proached on the question, and that he understood the negotiations had gone 50 far as to be nearing the Navy. He said representatives of the Boston Port authorities had mentioned it to him. High naval officlals were at Yorke town, Va., for the celebration going on there and knowledge of the affair was lacking among those remaining at their desks here. Senator White said his knowledge was “very meager and somewhat hazy.” but he added that he would be greatly ine terested in the project should it dee velop. t is difficult to conceive,” said Rep- resentative Britten, “that any private interests would want to take over either of these ships. They cost approximate~ 1y $45,000,000 each.” The BoSton & Maine Railroad in & statement tonight admitted its execu- tives had been co-operating in prelime inary studies on the possibility of estab- lishing out of the Port of Boston & transatlantic service on a four-day basis, but said the road was not ene gaged in any financial undertaking to that end. FISHER BOY'S FATE REMAINS MYSTERY Three-Day Search Fails to Reveal Trace of Stolen Boat or Youth. By the Associated Press. FORT PIERCE, Fla, October 17— The fate of a 16-year-old fisher boy, Charles Benson, and of the 20-ton shrimp boat Theofilos, stolen from its anchorage here Wednesday with the lad aboard, was further deepening into mystery tonight. Three days of search failed to turn up a trace of the boat or the fate of the boy. Coast Guard and commercial boats conducted a search for the miss- ing ship, but up to tonight they had been unsuccessful The Theofilos, bound from Galveston for her hone port at Fernandina, Fla., was tied up at the municipal docks here when she was stolen. The crew had put in to await the passing of a stiff nor'- Asks Source of Income. “Was €apone the little boy out of the second reader who found the pot of gold at the end of the rainbow?" Johnson asked the jurors in his final plea, the first court address he has made during his tenure in office. “If he was not, how did he get the money he spent so lavishly on $12,500 automobiles, $40.000 home, $27 shirts and $275 diamond-studded belt buckles by the score. “Or was he a modern Robin Hood, taking from the rich and giving to the poor? Did the unemployed ride in search of work in his high-priced limousine? “From the evidence we have shown of this defendant’s princely mode of living, his receipts of thousands through such channels as telegraphic money orders, his connection with a gambling house which made almost & million dollars in & few years. “From all this evidence you cannot help but return a verdict of conviction.” Portrayed as Honest Citizen. Capone was portrayed by his defense attorneys as “an honest citizen be- trayed by the public and press to a vengeful Government." “That Government,” said Attorney , “refused to accept money offered by Capone in payment of de- linquent taxes, but chose instead to use his offer to pay the tax as evidence to send him to possible internal injuries. Walter Cunningham, colored, 1611 Eighth street, Washington, took the men to the hospital. 1 this man i convicted, then the will know easter which whipped up the Atlantic. ‘Witnesses reported they saw the ship leave the dock and proceed to ses with- out lights shortly after Capt. Merle S, Davis and other members of the crew went ashore for food. They left Ben- son asleep on the boal THREE HURT BY AUTO Mrs. Haitlet A. Reno and her daugh- ters, Margaret and Gail, of 438 Emer- son street, were treated for cuts about the face and hands at the Atlantic City, N. J., Hospital as the result of an au- tomobile accident on a road near the resort last night, according to an Asso- clated Press dispatch. The accident is sald to have occurred when Margaret, a typist in the Internal Revenue Bureau, who was drb , Tee leased the steering wheel to slap at an insect near her face. pease a supposed public clamor. Why, even the confidence he rested with his attorney has been used as evidence against him.” The attorney to whom Fink refer- red was Lawrence B. Mattingly of Washington, D. C., who attempted to settle Capone’s income tax difficulties in 1930. -Included in the Government's documentary evidence was & letter which Mattingly wrote to the Internsl - Revenue Department, estimating pone'’s income at $266,000 over & I year period. o

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