Evening Star Newspaper, December 12, 1931, Page 1

WEAT (U 8. Weather B Partly cloudy and morrow cloudy and rain; moderate northwest winds. Temperatures—Hg! lowest, 48, Full report on page 4. HER. ureau Forecast.) colder tonight; to- colder followed by hest, 68, at 3:30 p.m , at 8 am. today. he Fnening Star, The only e Associated service. vening paper in Washington with the Press news Yesterday’s Circulation, 119,053 Closing N.Y. Markets, Pages13,14 & 15 No.' 33001, = tered as secor office, Wa nd class ma shington, D. ( WASHINGTON, D. C., SATURDAY, DECEMBER 12, 1931—TWENTY-EIGHT PAGES. FHP (#) Means Associated TWO CENTS. Press. TWO MEN KILLED IN AVENUE HOTEL BLAZE: SIX INIURED T DTS Bodies of -Victims, Trapped by Flames, Found on Fourth Floor of the Franklin. ONE CIVILIAN OVERCOME| it . | Blaze in 600 Block Attracts Crowd | Which Hampers Efforts to Subdue It | One of the men ki Franklin Hotel fire was ide: Emergency Hospital as Walt Conley, 45, of the Soldiers | | | Home. Two unidentified were burned death, a third man overcome smoke and th firemen were men was to by e in- fioors of the Franklin Hotel sylvania avenue early this afternoon. | Tom Piner, night clerk at the hotel who was sleeping on an upper floor, | elso was badly burned and overcome | by smoke. He was taken to Emer-| gancy Hospital for treatment. Capt. J. F. Costello, 4215 Twelfth | place northeast, of No. 17 Engine Com- yany, was taken to Emergency, over- come by smoke, while two privates, | Morris Hollis, No. 14 Engine Company, and A. B. Smith, No. 3 Engine Com- | pany, were badly cut by glass and! taken to the hospital. Breaking out shortly after 1 o'clock the fire attracted thousands of Govern- | ment employes to the scene, and traffic | on Pennsylvania avenue and on Seventh street was disrupted for half an hour, until firemen could erect hose carriers over street car tracks. Billowing clouds of smoke rising from the four-story structure attracted other | thousands from the downtown shopping district, and police had difficulty in maintaining order. Because of the dense smoke, firemen | ‘were hampered in fighting the flames. | An hour after the blaze was discovered, however, the fire was brought under contrel | The first dead man was found on the | fourth floor of the five-story building. | Apparently he had been trapped by | the flames, which_broke out mysteri- | ously on the top floor, and could find no way to escape He was Delieved to have been a guest in the hotel and was caid to have been aslesp when th blaze broke out. The second victim also was found on the fourth floor, his body badly burned. Firemen were unable to find any one | who could identify either of the dead men. TESTIMONY CLOSES IN TRIAL OF KANE Court Is Recessed to Permit Judge ! and Counsel to Prepare Instructions. By the Associated Press HAMPTON. Va, December 12— Testimony in the trial of Prof. Elisha Xent Kane on a charge of drowning his | wife was completed at 11:25 today and court recessed to allow the judge and counsel to prepare instructions for the | The jury was told this morning that “no human being on earth could tell | ther that woman died of d or heart trouble without a performed autopsy.” This testimony was given by Dr. Paul J. Parker of Hampton, a defense witness. A flurry of excitement was caused | when Mrs. W. H. “Hop” Graham, sister- | in-law of the dead woman, after leaving | the stand kicked and broke the camera | of & news photographer and then swung at him with both hand Dr. Parker, called to the s court opened, was asked a long of hypothetical questi many o which he declined to answer and whic the ccurt held were irrelevant He said, however, that a person dying of heart trouble aiways took from cne | to several gasps, and whether a person falling after such an attack any water he replied, “I After Dr. Parker's testimony rebuttal | cvidence was resumed, with Mrs. Hop Graham the first to take the stand. Asked about a statement Prcf. Kane tad made yesterday, that be with his socks on to his feet on the phaticaily that swimming with hi: GARVAN BEATS ACTION rowning | properly | Y‘ h | Lewis Has No Cause for Suit, Jury Decides, After 40 Minutes in $250,000 Case Trizal. By the Associated Press ROCHESTER, N. Y., December 12— No cause for action was the verdict returned by a Supreme Court jury today 40 minutes' deliberation of the after $250,000 libel suit instituted by Merton | E. th Lewis against Francis P Chemical Found: Inc. Supreme Court Justice Taylor had in- structed the jury to consider only the question of malice in mailing 200,000 copies of a statement containing the alleged libel In his complaint Lewis charged Garvan and the foundation with accus- ing him in this statement of a technical violation of the law in accepting pay from “German trust funds” while act- ing as special United States counsel in prosecuting A. Mitchell Palmer, former alien property custodian; Garvan and 20 others for alleged fraud in the sale of the Bosch Magneto Co. India Ousts Americans. BOMBAY, India, December 12 (#).— Henry Lynd and his wife, Susanne, of San Francisco, sailed for England to fi' under an order of deportation for lving promoted Communist activity in Indis. Garvan and tion, | financial circles, as the possibility of | became its president on the death of |and other hostages might have been the | o4 be on hand. | problems upon which the new govern- | opened fire S. Private in Grant’s o et CONVICTS QUIZZED onaes AL Winte () GUNS' SOURCE et st TV HUNTED lowed Band Last Mon- day; Still Missing. e Outside Aid Suspected in Flight of Seven Prisoners From Leavenworth. By the Associated Press LOS ANGELES, December elderly, gray-haired man, Pvt. W. T Spurglll, one-time member of Gen. U S. Grant's army before Vicksburg, was the object of a police search today. Last Monday, Spurgill started lowing a bend that played streets of the city, and hasn't returned to his home. 12.—An GATE GUARD UNDER FIRE FOR FAILURE TO ACT| on th he hezrd the strains of a 1d, he would shoulder arm cane and march with the C. W. Spurgill, the veteran's Acting Warden Says He Possibly Could Have Shot One Man and Prevented Escape. milit. with boys son Spurgill failed to return from his latest march and his son enlisted police ald. his By the Assoctated Press. LEAVENWCRTH, Kans, December A manhunt for one missing con- viet was pressed by prison guards today as Government authorities probed the sensational break from Faderal Penitentiary yeste which ended the death of three convict mail robbers and the recapture of three | othe; | Department of Justice agents and | prison officials sought to learn how the | seven convicts obtained the weapons | | with which they overpowered Warden | Thomas B. White and effected their | | escape with the warden as their pris- oner. The general belief was that the con- victs had outside aid and that the rifle, shotgun and pistols in their possession had been smuggled into the prison with the assistance of underworld friends Fugitive Reported Armed. | FOF OF GOLD BASIS ELEVATED BY TOKID Leader of Wakatsuki Opposi- tion Summoned to Form New Ministry. TOKIO, December 12 (#).—Tsuyoshi Inukai. following a summons to the Im- | perial Palace, today began the forma- | ticn of a new cabinet composed ex- | clusively of members of the Sefuykai| party. { By the Associated Press, TOKIO, December 12. — Tsuyoshi| Earl Thayer, 65-year-old mail robber | Inukai, president of the Seiyukai party, Whh gummonod tosthe Mo | from Oklahoma, was still at large and late today, and the summans was taken | W23 belng hunted by a group of prison to me: would receive the imperial | guards using bloodhounds. Army planes o to form a new Japanese|anq soldiers from Fort Leavenworth gabinct (0 JSucceed that of Premier | were no used as had been planned. Wakatsuki, which resigned yesterday. | ““fpaver is old and cant get far.” The calling of Inukal to the palace | saiq Fred Zerbst, warden of the prison Tokio | annex and acting warden in place of | White, who is in the hospital with a | gunshot wound in his left arm, received when he wrested loose from his cap- tors on a highway. Thayer was reported with a rifle. Zerbst said the inquiry will stress among other things why Guard Gray at the main gate tower of the prison did not fire on the convicts = even | though they held the warden and his | secretary, E. H. Eckholdt, as hostages | to shield’ themselves. Oftered Good Target. b . As the party went across the lawn to New Leader Is 76. [the warden’s house outside the gate, M. Inukal, st 76, is an “old timer” | Zerbst said, the prisoners offered K as a politiclan, but he is a comparative |g00d_target and were not too closely newcomer in Seiyukal perty circles, | Junched but what some of them might | have been picked off. having joined the party in 1929. He| Asked if the presence of the warden | Leavenworth n caused a tremendous flurry in new cabinet with him as whether a cabinet of the Seiyukal party alone, or a coalition, was taken to fore- stadow almost certain renewal of the gold embargo and suspension of the gold standard. All through the conferences today banks and financial institutions kept in closest touch with developments. | The Tokio and Osaka stock exchanges suspended sessions early in the after- noon because of & sudden advance in stocks due to anticipation of abandon- ment of the gold standard | to be armed | reason for not firing, Zerbst replied focoge ¥ Spmier Brion Tanske: | ““We are like soldiers; we have to| For years previously fie had headed | take risks several minor parties, including the| The investigation also will seek to national party, known as the Koku- |develop how the armed convicts, who minto, which amalgamated with Setyu. | €ntered the warden's office with forged Kl passes, could have escaped the scrutiny Even 2s an ambitious youngster M. | Of guards. Inukei had his eye on the premiership | The acting warden said the men had and dreemed of a day the elder states- | & Tifle, a sawed-off shotgun and pistols. | p\:{x;o\::\fi:i consult with him with maz‘ Belo 0. e Prosoiia) Japanese m‘j"’”y authorities have | Zerbst said Gray ha.d ¢ rifle, machine decided to submit to the new Japanese | 8un and a pistol. The acting warden | ccbinet, as scon as it is formed, a pro- | 8id he understood there were only two | posal to send about 15.000 more troops | Other hostages besides White. Eckholdt’s into Manchuria o be used as a threat | Vesion was that six men were com- | against the Chinese at Chinchow. | pelled to accompany gate—White, Eckhold Plan Outlined Too Late. one guard, ‘The proposal wes cutlined just too “The guar late to be placed before the Wakitsuki | to shoot at cabinet before it resigned and it is ex- said Zerbst pected to be one of the first major | have been br | the convicts to the | t, three clerks and hould have been able ast one of the convicts,” “1 believe the escape would oken up at once if he had ment will be called upon to pass. | M. Brewster, United States district | Gen. Jiro Minami, minister of war, | attorney, said the captured trio would | had the matter in his hands and was | be prosecuted on escape charges, which to have brought it before the old cabi- |carry a penalty of five years. Charges | net, but the resignation yesterday pre- |of smuggling arms, 10-year penalty: vented it. He had discussed the plan | kidnaping and assault are other possi- | with Pinance Minister Junnosuke | bilities. | {elevens from his adopted State, Cali- | KNEW IF You K, ACTIN'LIKE A \od8 9000 COLLECTED FORCHARIY GAM |More Seat Sales Expectedi as Alabama Meets Three Capital Teams. | | host of Capital notables | to attend and an advance “gate” of $9,000 reported already, Washington’s most unusual foot ball game, in which Alabama’s 1930 cham- plonship Crimson Tide will play George | Washington, Catholic and Georgetown | Wwith a scheduled President Is Urged By Banker to Free 14 Jobless Marchers | Col. W. H. Cooper S(-ndsf Clemency Plea to White House. | | | President Hoover was asked n a let- ter made public today by Col. Wade Ii. Cooper, president of the Commercial National Bank, to pardon the 14 dem-‘ onstrators arrested two weeks ago in front of the White House and sentenced to six months in jail tor parading ille- gally. Col. Cooper, in his lettar to the Presi- nt, dated December 11, de:lared de PRESIDENT PLEADS FOR CO-OPERATION Outlines 12 Principles in Ask- ing United Action for Real- ization of Plans. By the Associated Press. Every shoulder is wanted at the vheel by President Hoover in enacting, on a non-partisan basis, his entire do- mestic program for economic recovery. | He called in newspaper men last night, read them an incisive summary Universities for charity, awaited the | “there is no wrong per se in thes: men |Of everything he has proposed, told starter’s whistle to get under way at 2 o'clock today at Griffith Stadium. I The last-minute rush for tickets was | in prospect as good weather greeted players of the four teams as they pre- | pared for the much-ballyhooed con- test. | Dignitaries Expected. A box reserved for the President was | turned over this morning to a group of other dignitaries and, with Congress having a day off, promoters of the con- test felt confident many legislators | The game was the “talk of the House” yesterday, after members of | the Crimson Tide team were intro- duced in the chamber by Representa- tive Willlam Bankhead of Alabama. The gridmen were given a big hand | from the floor, and were invited by | Speaker Garner to a private audience | in his office. The Speaker importuned | the husky warrior to form a “flying wedge” to help him ‘“clean out lhese‘ Republicans.” Tater the squad called on President Hoover, who laughingly declared he had only “unpleasant memories” of the | Alabama teams, which twice defeated | | fornia, in Rose Bowl classics. Profit Ts Assured. Several hours before game time hun- dreds of choice seats were available at prices ranging from $2.50 for boxes to $1.50 general admission, with bleacher seats being sold at 50 cents apiece. Promoters were reluctant to estimate the prospective attendance, but the most optimistic placed it at around 15,- 000, a greater crowd than has been drawn by charity games in many other cities. parading in front of the White House,” adding, “it strikes me that this punisi (Continued on Page 2, Column 7.) COLUMINS BANNED IN BRIDGE PROJECT Arlington Memorial Commis- sion, Presided Over by Hoo- ver, Orders New Design. | Convinced that the tall columns | planned for the Columbia Island part of the Arlington Memorial Bridge proj- ect would be extremely dangerous to human life, the Arlington Memorial Bridge Commission met today in the office of President Hoover, chairman | of the commission, and decided to use | some other design. Lieut. Col. U. S. Grant, 3d, executive officer of the commission, was author- ized to have prepared at an early date a suitable design to replace the dis- carded columns, which would have towered nearly 200 feet in the air. No particular substitute was suggested by the commission, but Col. Grant indi- cated he already has several things in mind. He mentioned the possible utili- zation of the design for the base and Inouye, however, and the finance min- The advance gate of $9,000 alone as- | the other sculptural decorations for the | ber of troops in Manchuria is part of ister disapproved of it because of the | (fl"""f'““'d on Weapons. | sxpense involved Questios _ | wood and Sta The question of increasing the num- | ¥00d and St g of the men, Tom Under- | y Brown, North Dakota ! ; Charles B | | nail Tobber, failed a military plan to persuade Marshal | 00ia mail 3 Chang Hsueh-Liang to_withdraw. In | T;g'?fi;f{éc?r\dll)rh”r o (Continued on Page 2, Column 5) | wos, ChEineer o T0 DIE MARCH 18 | apparently died by their own hana Penalty Imposed After Motion for | when trapped by 2 posse | house, were held today for word from New Trial of Murder Case Is Overruled. relatives. ape pl the weapons | | The dead are Wilifam Green, | robber, sentenced from | and Grover C. Durrill, 41 Curtls, 35, Oklahoma mail tra | bers. _Green is believed to have killed (Continued on Page 2, Column 3.) ILLINOIS LEGISLATOR vr. beenper JAILED AS TAX DODGER Powers today Was| Failure the gallows at | 1 By the Associated CLARKSBURG, W. |12—Harry F. | sentenced to die | the penitentiary at | March 18 | Judge John C. Southern imposed the | extreme pen: { to Pay $70,000 Income Moundsville next| LevY Sends Member to Leaven. ‘ worth for 18 Months, | By the Associated Press uling & mo-| "GHICAGO, December the defense | C. O'Brien, State Represe was convicted | here last night of Mrs. Dor- | bootlegge o204 narcotic boro, Mass., | s€rve an 18-month term in the. el tentlary at Leavenworth for fajling g pay $70,000 income taxes As he surrendered to Lawrence left ment of paddlers to { the first-degree murd o v Pressler Lemke, No | divorcee. The judge in his decision declared “I have no changes to make in ‘my pre- | vious ruling in this case.” He appar- marshal he said: ently referred to his r jection several| “Here goes a me) veeks 280 of a defense motion for a Commission of t| change of the penitentiary.” i the Federal mber of the Pena] State Legislature to STENGLE IS MADE PRESS AGENT | OF BICENTENNIAL COMMISSION |Dr. Havenner’s Nomination of Former Representative for D. C. 1932 Fete Group Is Approved. Charles 1. Stengle, former Repre-|the nomination, and it Was approved sentative from New York, has been ap- | by tae District’ Commiss oners Pointed press agent for the District of | "Dr. Havenner has also nominateq gd. Columbla Cemmissic cn the Georg? win 8. Hege as traffic expert to tna ng)mnzlox\ Bicentennial at a salery of | lozal Bizentenniel Commissiay m'; 3}.‘ $200 per montk i | ary of &2 | 2ry of €200 per month, The o Mr. Stengic was formerly a delegate sent to the Commmmm:lrimvr:- to the Federation of Citizens' Associa- | terday, “zant 1 | tion was but the Com rissione lons and chairman of its Committes |back to recelve the approva f-crmt.hl: on Law and Legislation. Executive Committee of the Bicenten.. Dr. George C. Havenner, executive | nial Commission before acting upme it Vice chairman of the commission, Who| Mr. Hege is & delegate to the federa. s also president of the federation, made \ ltlon from Chevw Chase, . | amount, however, as expenses of the | than $3,500. in a farm | sures the city's jobless fund a sizeable show are not expected to total more | | CLAIMS HONOLULU UNSAFE FOR WIVES Admiral Pettengill Warns Navy Base as Fleet Stages Hilo Maneuvers. By the Assoclated Press. HONOLULU, December | Admiral George T. Pettengill advised commander of the battle H. Leigh, lulu was unsafe for the wives of offi- cers of the fleet. The statement was inspired by" a mis- |trial in a recent case in which five nally assaulting the wife of a ]v'nung naval officer. Admiral Pettengill is commanding the minecraft of the four- teenth naval district in maneuvers near Hilo, Admiral Vates Stirling, jr. m:fx:;ndsm at Pearl Harbor, decllnef} to comment on a report that wives of naval officers are arming themselvesl, but admitted the naval shore patroi had been increased in Honolulu to pro- | tect the homes of naval officers taking art in the Hilo maneuvers. P dmiral Stirling. deplored_the flagt that a “certain portion” of Honolulu’s population do not take seriously cases H 1t on women. O Fomoltiu may expect cases of as- sault upon women unless the be‘t;‘(ir element gets to w%rk to stamp out this ition,” he said. m%e Battle Fleet is to mancuver here next February. | 1 ORTIZ RUBIO IS ILL | Mexican President Ordered to Bed and Engagements Canceled. EXICO CITY, December 12 (#).— Prfiglden? Pascual Ortiz Rubio was or- dered to bed by his doctors today and all his engagements were ¢:lflceledi’1 et The physicians said he had a higl fever. yourg men were charged with criml»:fl"ed‘ 12. — Rear | : | the Pear] Harbor naval base lasvvmghb that he had warned Admiral Richard | force, United States Fleet, that Hono- | | mission adjourned, columns, without the columns them- selves. This suggestion, he said, would be considered along with others at a later date. The commission was informed that not only would abandonment of the columns remove a hazard to flying, but would considerably reduce the cost of the work. The columns as originally | planned would have cost more than | $800,000. Col. Grant informed the commission that a smaller structure | would cost considerably less. The com- satisfied that its action in discarding the columns would | in no way impair the artistic beauty of the project. The meeting of the commission, the first in many menths, was called by President Hoover to make a decision | regarding the columns, about which | there has been so much complaint. This was the first meeting of the commission attended by Representative Garner of Texas, who, as the new Speaker of the House, automatically be- comes & member. The other members present were Vice President Curtis and Senator Keyes of New Hampshire, chair- man of the Senate Public Buildings and Grounds Committee. The absent mem- ber was the chairman of the House Public Buildings and Grounds Com- mittee, which place has not yet been | The meeting also was attended | by Maj. D. H. Gillette, one of Col. ! Grant’s assistants. LINDBERGH PARTY DUE AT WINCHESTER TODAY| Flying Colonel and Wife to Be Guests at Former Gov. Byrd's Home at Berryville. Special Dispatch to The Star. BERRYVILLE, Va, December 12. Col. and Mrs. Charles' A. Lindbergh and | Col. and Mrs. Henry Breckenridge of New York are expected to reach Win- chester by airplane about noon today to spend the week end with former Gov. and Mrs. Harry F. Byrd at Rosemont, their home on the western outskirts of Berryville. The party was expected to arrive yes- terday afternoon, but, due to weather conditions, Col. Lindbergh phoned Mr. Byrd from New Jersey that it was best to postpone the trip until today. _Col. Lindbergh and Col. Brecken- “idge will participate in a hunting trip 1 Clarke County this afterncon. = To- morrow afternoon the party will fiy to Richmond, accompanied by Mr. Byrd, to be the guests of Mr. and Mrs. Wil- liam T. Reed. This will be Col. Lind- ‘:\‘!,:'r:,“ first trip to this section of the | them he cared little about details but | stuck out for principles, and addressed | through them an urgent plea to Con- | gress and to th> whole people to join | in united action, | A “definite program for turning the | tide of deflation,” was Mr. Hoover’s es- | timate of his plans. He lum to- gether Into a dozen short demfinns the recommendations he made i message to Congress, others he has ex- | pounded in months past. Some are in | effect today. Can Solve Own Problems. __“The broad purpose of this program is to restore the old job instead of | create a made job, to help the worker | at the desk as well as the bench, to re- | store their buying power for the farm- ers’ products—in fact, turn the pro- cesses of liquidation and deflation and Tmrn the country forward all along the | line.” In his left hand he held the paper he read. Often lifting his eyes and depart- ting from his text, he spoke straight at the correspondents, who jammed the space around three sides of his desk. Thus he told them America could, by his program, solve its own difficulties |to a large extent, regardless of what happened abread. Reduction of Federal expenditures and temporary tax increase; unemployment relief; continued part- land banks; credit assistance to home owners; partial return of deposits in closed banks; enlargement of Federal | Reserve discount limits; the emergency reconstruction finance corporation; aid to railroads; new banking law safeguard to depositors; credit safeguards to banks themselves, and “maintenance of indi- vidual initiative and individual and com- munity responsibility.” The President said his Emergency Re- | lief Commission would stand by through | (Continued on Page 2, Column 1,) | MILLS WILL SPEAK OVER RADIO FORUM Undersecretary of Treasury Will Discuss Plan to Meet $800,- 000,000 Deficit. Undersecretary of the Treasury Ogden L. Mills will explain to the American people tonight over the National Radio | Forum, arranged by The Star and| | broadcast over a coast-to-coast net- | | werk of the Columbia Broadcasting System, how the Hoover administra- | tion hopes to wipe out the huge Fed- | | eral deficit now totaling more than | | $800,000,000. The discussion of the vital question cf Federal finances will be broadcast at 10 oclock and may be heard locally through WMAL. Undersecretary Mills occuples a_key position in_ the Treasury, from which he is enabled to explain how the ad- ministration, at a time when business generally is in the throes of depressicn, expects to meet the difficult issue of the deficit. n his | The program he summed up included: | united local | time employment; strengthened Federal | HIRLEYTESTFES 10 G000 FATH I BULDING PURCHASE Secretary Says He Bought| Structure in Belief Note Holders Were Paid. ACTION WOULD RESTORE TRUST FOR $2,250,000 Cabinet Member Called as Witness After Buying Property From Rheem Firm. Secretary of War Patrick J. Hurley | | testified in District Supreme Court to- day that he acted in utmost good faith when he purchased the Shoreham Office Building, Fifteenth and H streets, from the Swartzell, Rheem & Hensey Co. He was called as a witness in a suit before Justice F. D. Letts to reinstate | a trust on the building for $2,250,000, which was released at the time of the sale without payment to the holders | of notes under the trust. | Secretary Hurley said he purchased | the building in the belief that all of | the note holders had been paid in ac- | cordance with the terms of the deed of trust. Source of Big Loss. The Shoreham Building was the source of one of the greatest single losses sustained by investors in Swart- | zell. Rheem & Hensey Co. securities. After negotiations for the sale had been completed, the trust was released by Edmund D. Rheem and Luther A. Swartzell. The terms of the deed provided that the trust could be re- leased after it had been paid in full at the offices of Swartzell, Rheem & | Hensey. Many of the holders of the $2,250,000 of trust notes said they never received the money they had invested. Rheem, however, said several months ago that they had been paid through reinvest- ments of the money received by his company. Secretary Hurley said the building | was purchased by himself and Joseph I.! Cromwell, Oklahoma millionaire, in July, 1930. through the Shoreham Investment Co., | Mr. Hurley said, half of the stock of that corporation being owned by Mr | Cromwell and the balance by himself and his wife. He said the Shoreham | Building was purchased by trading his | $740,000 equity in the Hurley-Wright Building and an additional cash con- sideration. Put Up $150,000 Cash. At the time the Shoreham Building was refinanced in connection with the sale, Mr. Hurley said, the Shoreham In- vestment Co. was requested to advance $150,000. This was done, he said, de- | spite the fact that Swartzell, Rheem & | Hensey Co. had previously agreed to re- | finance the property without cost to the | purchaser. | “I didn’t like this,” he testified, “be- | cause it was not in accordance with the | original agreement. However, Mr. Crom- well was anxious to leave the city and I agreed to advance the money. Each of us, Mr. Cromwell and I, put up $75,000, making the total necessary.” Mr. Hurley said he and Mr. Crom- | well got a certificate of title to the | building from the District Title & In- | surance Co. at a cost of $2,250. He was questioned at some length about a meeting between himself, Rheem and others on the evening of July 15, the day prior to the closing of | the deal. He said Rheem told him he had arranged to secure all the money necessary for the payment of the $2,- 250,000 mortgage, with accrued interest | and other costs. Didn’t Inquire Into Source. “I didn't ask Rheem where or how he was going to get this money,” Mr. Hurley said. “I knew of the splendid reputation of his firm and had no rea- son whatsoever at that time to believe there was anything irregular in the transaction. I learned later, however, | that_he got pert of this money from | the Riggs National Bank.” Rheem borrowed $635,000 from the Riggs Bank on July 16. He opened a special deposit account in the bank in the name of Mr. Swartzell and himself as trustee of the mortgage. This account was designated as being for the benefit of noteholders under the deed of trust on the Shoreham Building. Subsequently, in a suit brought by some of the no Continued on Page CURE FOR RARE DISEASE REPORTED BY DOCTORS The deal was effected | p, SENATE LEADERS ACCEDE T0 DELAY OF DEBT PAYMENTS Undersecretary Mills Obtains Understanding in View of Pending Moratorium. DEMOCRATS AGREE ISSUE NOT PARTISAN Secretary Mellon Backs President as Reed Joins Watson in Opposition. By the Associat:d Press. An informal understanding was reached today between the administra- tion and Senate leaders that foreign governments would not be considered at fault if their war debt payments due next Tuesday are not pald, pending formal ratification of the one-year moratorium suspending these payments. Undersecretary of the Treasury Mills discussed the situation with leaders of both parties in the Senate. He said Secretary of State Stimson would deal with the foreign governments respect- ing their payments, but dees not expect the Secretary to make any formal state- ment on the question. Mills was informed the legislation ratifying the year debt holiday, which went into effect last July 1, can not be enacted by Tuesday. “I discussed the form of a statement to be made to these foreign govern- ments,” sald Mills. “I asked no agree- ment. I came more for tne purpose of getting information and giving infor- mation.” Not Party Question. Meanwhile, Representative Rainey, Democratic leader, promised “the Dem- ocrats will not make the moratort party question.” i Rainey said he wi it, but the Dem: {it to the indis ould vote against ocrats planned to leave vidual members as to their own position cn the matter, Opposition in both Republican and emocratic ranks to the moratorium Wwas seen by the Illinols Democrat. He said, however, he expected the H-use to act on it and send it to the Senate before the Christmas holidays. Before going into the conference with the Senate leaders, Mr. Mills said he would seek to avold a discussicn of the controversy raging between Presi- dent Hoover and Congress over the presidential proposal for revision cf war debts after the expiration of the m%-;finum. 3 Ing of the contro over debt revision, he sai o “It is a short Winter day and I don’t think we will have time to get onto that subject.” Mellon Backs Hoover. The President is throwing every energy into the intense struggle to bring the hostile Congress around to revision of the European war debts. The spectacular outburst against fur- ther relief for Europe at the expense of this country, joined in by administra- tion stalwarts as well as Democratic leaders, even brought into action the usually silent Secretary of the Treasury Mellon. He picked up the Hoover cause last night with an answer as severe as any he has made in his 11 years of exchanges with Congress. “What intelligent business man or banker,” demanded the Treasury head, “would blindly refuse to investigate or to consider the altered circumstances of a debtor whose unsecured obligation he held?” It is one of the most spectacular contests between the White House and Congress that has developed in years. It finds not only the President and his leaders at odds, but, for the first time, brings a break between Mr. Mellon and Senator Reed of Pennsylvania, his in- timate. Reed, high on the Finance Commit- tee, last night joined Republican Lead- er Watson in flat oppesition to the Hoover proposal for recreation of the War Debt Commission. Mellon Answers Critics. “The administration is opposed to cancellation,” was the opening shot of Secretary Mellon to the congressional critics, who said further debt revision meant cancellation. “No recommen- dation made carries any such implica- tion.” The Secretary then pointed to Great Evanston, Ill, Physicians Claim Serum Injections Overcome Corpuscle Destruction. By the Associated Press. EVANSTON, Ill, December 12—Dr. James Carr, chief of the staff of the Evanston Hospital, and Dr. Stephen V. Balderston _gnnounced yesterday the discovery of what they claim appears to be a cure for the rare disease known as_agranulocytosis. The malady, characterized by a de- struction of the white corpuscles in the blood, was overcome, they said, by in- lexctgofi@ of the little known serum of The patient was Mrs. Robert M. Mec- Caul, wife of an Evanston policeman. | She was stricken about seven months ago after the disease took the lives of two others in this area. Mussolini Also Lays Down By the Associated Press. ROME, December 12.—Premier Mus- | solini today ordered all Fascist rellet‘\ organizations to be open for business | seven days a week and 12 hours a day, prepared to give assistance to all of | Italy’s needy. It is the duty of every Italian, he said, to scale down his mode of living to fit | the present conditions; to combat profiteering and to vanquish the spirit | of defeatism. He out{{:xe‘d bis new relief progrlpx:‘ :; the installation of the new Fascist par directorate fuet Achille Starace, re- Aid TItaly’ FASCIST RELIEF GROUPS ORDERED TO REMAIN OPEN 7 DAYS A WEEK 12-Hour Daily Schedule to s Needy. cently appointed Secretary of the party succeeding Giovanni Giuriati. At the same time he deposed Carlo Scorza as head of the Fascist youth organization, which was active in last Summer’s controversy over the Catholic action clubs. Both the Vatican and the government have denied that these men were sacrificed in the interests of peace between church and state. In the fate of the current economic | pinch, said the premier, every citizen must help in the fight against all who try to speculate on the nation's diffi- culties. It is essential, he said, to feed not only tre bodies, but t) spirits of those who need help. (Continued on Page 2, Column 7.) 117 DEAD OR MISSING AS TRAWLER SINKS Exposure Kills Two Rescued From Lifeboat—Skipper Dies in Wreck Off Norway. By the Associated Pryss. OSLO, Norway, December 12.—Two half-frozen seamen drifted ashore near the fishing village of Maaloey today on a raft, with the Dbodies of four men who had been their shipmates in the German-owned trawler Venus, described by Coast Guard officials as a rum- runner. The ship ran aground and sank, they said. One lifeboat capsized as it was launched, drowning six men; a second boat also capsized, but the seven men in it were clinging to the overturned craft when the raft bearing the two survivors and their four companions drifted out of sight. The captain, whose name was Vis- naerotsky, was drowned, and it appeared that in all 17 members of the crew were éither dead or missing. Fishermen picked up the men cl to the sec- ond overturned lifeboat, but two of them died of exposure shortly after they were taken aboard. Coast Guard officials said the Venus put out from the Shetland Islands with 5.000 gallons of liquor last week, but was sighted by a Coast Guard cutter, which fired 20 shots at her. They be- lieved it was one of these shells which sank the Venus. Police said the cap- tain had been arrested and heavily fined last year on a charge of running liquor, Rad}ol'nmu?uo}fl ; (%0