Evening Star Newspaper, January 11, 1932, Page 1

WEATHER. (U, 8. Weather Bureau Porecast.) Fair; tomorrow increasing cloudiness with slowly rising temperature; rain to- morrow afternoon or night. Temperatures—Highest, 42, at 3 p.m. yesterday; lowest, 32, at 7:30 a.m. today. Full report on page Closing N.Y. Markets, 5. Pages13,14&15 ch ¢ Foen WITH SUNDAY MORNING EDITION ing Star. No. 32,031 Entered as second class matter post office, Washington, D. C WASHINGTON, JAN D. C, MONDAY, UARY 11, 1932—THIRTY-TWO PAGES. “From Press to Home Within the Hour” The Star’s carrier system covers every city block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. Sunday’s Saturday’s Circulation, 114,996 Circulation, 126,475 L L L] (®) Means Associated Press. TWO CENTS. PROBE OF HAWAIAN LAWLESSNESS AND “REVENGE” MURDER ORDERED N SENATE Decision Follows Bingham’s Demand for Investigation of Crime, Including Attacks on White Women. PROSECUTOR WILL ASK DEATH FOR D. C. MATRON Son-in-law of Mrs. Fortescue Waives Navy Trial—Troops Held Under Arms to Prevent Disorders ACTION IMPERATIVE; BASEL BACKS REICH Cabinet Reaffirms Contention Army Guns Stolen At Lynn, Mass., by Gangs, Police Fear By the Assoclated Press. LYNN, Mass, January 11.— Twenty - one loaded .45-caliber Army pistols were stolen from the State Armory Saturday night, it was discovered yesterday. Police feared the weapons were taken by Boston gangsters. BRITISH CALL DEBT German Position Increases Urgency of Parley. By the Associated Press. The British cabinet has reaffirmed its in Honolulu—~Civil Authorities Take Steps to Restore Calm. The Senate today directed At- torney General Mitchell to inves- tigate conditions in Hawaii. A resolution by Chairman Bing- ham of the Territories Committee directing the inquiry, was adopted without opposition and without debate. Bingham, in offering the resolu- tion, said he did so “on account of the very bad news received yes- terday from Honolulu.” The resolution requested the At- torney General to report to the Senate upon the administration and enforcement of the criminal laws by the police, courts and of- ficers. It also asked the Attorney Gen- eral to state whether any changes in the organic act governing the island are necessary. There was no debate. The resolution ‘was approved promptly upon its rud-l ing. Just previously Senator McKellar, Democrat, Tennessee, had proposed s Senate inquiry. Confidence in Judd. Meanwhile, Secretary Wilbur said he had every confidence in the ability of Gov. Judd and the civil authorities of | Hawail to handle the situation there. The Secretary of the Interior received cabled assurances © from © Judd this morning that the suthorities can cope with their problem. He expressed deep regret over the whole “distressing affair” and said that everything possible would be done to straighten it out. Senator Harris, Democrat, Georgla, charged Gov. Judd with being derelict in his duties in not calling to the atten- tion of Congress conditions in the 1sland so they could be corrected. He said Judd had made no mention of the situation in his annual report and asked Bingham if he had reported them to the Territories Committee. Bingham said it had not come out in conversations with Judd. Bingham added he hoped the Governor could be given power over the police. Bingham said his resolution was designed to determine whether there should be changes in the organic law of the island. The Bingham resolution reads as fol- lows: “Resolved, That the Attorney General of the United States is requested to report to the Senate at the ecarliest practicable date upon the administra- tion and enforcement of the criminal law in the territory of Hawali by the the police authorities, the prosecuting officers and the courts of said terri- tory, and whether in his opinion any change in the organic law for the ter- ritory of Hawail is desirable in the in- terest of prompt and effective admini- stration of justice in said territory.” DEATHE TO BE ASKED. Prosecutor to Propose Extreme Penalty for Four in Slaying. By the Associated Press. HONOLULU, January 11.—Island law struggled today to restore calm and preserve order in a city horrified first by attacks upon white women and now by an amazing murder. United States soldiers waited in| readiness for emergency orders. Shore leaves of service men were canceled. ‘White women ventured to the streets only with utmost caution. A marked tension gripped the city ! At the Pearl Harbor naval base the Navy held three of the four persons charged with the “honor” slaying of the Hawaiian Joseph Kahahawai. Those under arrest and charged with first-degree murder are Lieyt. Thomas H. Massle, U. 8. N, whose wife recently was assaulted, al- legedly by Kahahawai and four others. Mrs. Granville Fortescue, mother-in- law of Massie and wife of a prominent soldier and author. She is the daugh- ter of the late Charles J. Bell, Wash- ington, D. C., banker E. J. Lord, Navy enlisted man. Albert O. Jones, Navy enlisted man. Jones is held by civil police in jail here, although City and County At- torney James F. Gilliland indorsed the Navy's action in assuming custody of the other three, saying they were ~(Continued on Column 4.) AKRON ALOFT 2 DAYS ON SECRET AIR MISSION Giant Dirigible Solving Scouting | Problem South of Hampton Roads. Flying on her first secret military mission, the U. 8. §. Akron, giant Navy dirigible, has been away from her han- gar at Lakehurst, N. J., since 4:34 p.m. Saturday, the Navy Department an- nounced today. Owing to the nature of the mission on which the Akron is flying—the so- lution of a military scouting problem involving the scouting force—no posi- tion reports on the airship are being announced. Leaving Lakehurst Satur- day evening, the Akron headed out over the Atlantic to make contact with the seouting force somewhere south of Hampton Roads, Va. the government. hind the French government, support- ing the contention of Finance Minister Flandin that if such statements of bankruptcy as that made by Chancellor Bruening of Germany last week are to precede the Lausanna conference, then the conference is useless. Some of the editorials raised the old threat of re- occupation of the Ruhr. man bonds down a couple of points on the London Stock Exchange. the gap between the government and the Nationalist opposition has not been ciosed and Adolf Hitler, the National Socialist leader, has not announced his decision regarding his support for a plan to extend the term of President von Hindenburg. Bank at Basel gave its unanimous ap- proval to the report of the Young Plan Committee asserting Germany's inabil- ity to continue the present reparations schedule. share of the $100,000,000 short-term credits Germany now holds. ! Cabinet Considers Parley on Debts More inet today that the proposed Lausanne reparations | conference is a more urgent nzcessity than ever in view of Chancellor Bruen- ing’s declaration last week that Ger- many’s ability to continue reparations payments is at an end. with the exception of France, have ac- cepted Prime Minister MacDonald’s in- 4 but it is not thought there is any like- contention that the proposed Lausanne Reparations Conference is imperative, particularly in view of the German posi- tion that she no longer can meet rep- arations payments. Today's pewspapers indicated that the entire press supports In France the newspapers were be- ‘The Bruening declaration sent Ger- In Berlin The Board of Directors of the World It also renewed the bank’s BRITISH REAFFIRM POLICY. Urgent Than Ever. LONDON, January 11 (#).—The cab- reaffirmed the British policy All of Germany's creditor nations, vitation to open the Lausanne meeti; on January 25, it was said, and t°® French are considered to have given their tacit agreement. Reconstruction of the French cabinet has delayed a formal reply to Mr. Mac- Donald’s suggestion, it was explained, lihood that France will carry out the threat implied by its finance minister, Pierre Flandin, when he said that in view of Chancellor Bruening’s declara- tion the Lausanne conference is useless. Press Differs on Outlook. London’s morning papers agreed unani- mously that Germany cannot resume reparations payments when the mora- torium expires, but they differed about the prospects for her eventually being able to meet her obligations. “The supreme question which the participants (in the International Eco- nomic Conference) at Lausanne must | consider,” said the Times, “is whether there is any real chance of recovery by Germany—and therefore of averting the danger of collapse for the rest of | the world—so long as there is hanging over her the prospect of being called upon in the near future to resume pay- ments, 5 “To that question an answer must be found, and it can be found only through | thorough and frank discussion. There | is no room for any prejudice or political considerations of any kind.” ‘The Morning Post, construing Chan- cellor Bruening's statement that Ger- | many will be unable to pay as meaning that she will refuse to pay at any time, | argues that if the “repudmtion” is sus- tained, and if Italy and France are; therefore unable to pay their war debts to_Great Britain, the latter probably (Continued on Page 2, Column 8.) BRIAND, IN SICK ROOM, HOLDS CONFERENCE | Talks to Paul-Boncour, Who May Succeed Him in French Cabinet. By the Associated Press. PARIS, January 11.—Foreign Min- ister Aristide Briand, working from his sick chamber, took an active hand in the political situation today when he received Senator Joseph Paul-Boncour, who has often been mentioned as his successor. M Briand's position still was uncer- tain and some gquarters held to the opinion he would remain in the foreign office, but that Premier Laval would act as forefgn minister at the coming reparations and disarmament confer- ences A meeting of M. Laval and M. Briard scheduled for today, apparently was postponed until tomorrow, when im- portant developments are expected. ARGENTINE ATTACHE WEDS CALIFORNIAN{ Manuel de Olazabal Marries Mrs. Mabel Hannaford at Tuxedo, N. Y. The Argentine embassy today made announcement of the marriage this morning at Tuxedo, N. Y., of one of its stteches, Senor Manuel de Olazabal, to Mrs. Mabel Victoria Hannaford of Cali- fornia. $ The ceremony took place in the Church of Qur Lady of Mount Carmel 'MARYLAN MAN WHO “FOUND BODY OF CHILD. 6 ADMITS SLAYING Cobbler, 45, Says He Left Girl Dying in Cellar After Criminal Attack. KEPT VICTIM’S CORPSE UNDER STAIRS 5 DAYS Revealed “Discovery” to Avoid Ex- posure by Aunt, Cincinnati Shoemaker Confesses. By the Associated Press CINCINNATI, Ohio, January 11.— The kidnaping and slaying of 6-year- old Marian McLean was confessed to- day, County Prosecutcr Robert N, Gor- man announced, by Charles Bischoff, 45, a shoemaker, Marian's body was found December 22 in the basement of a tenement oc- cupled by Bischoff, who was the first to report the discovery. She had been lured away from her home December 17 and had died of internal hemor- rhages caused by a criminal attack. After telling of taking Marian to the cellar, Bischoff described the at- tack, which he sald was committed at once. The next morning, Bischoff said, he found the child dead. That was a Friday. Passed Body Several Times. | “I looked at her again on Saturday. On Sunday I did not look at her at all” the confession related. Bischoff passed the body several times on Monday and two women, who lived in the same building were near it Tuesday without taking notice. The following day the cobbler told his aunt and then ran out of the build- ing shouting, “A child’s body is in my cellar!” He was arrested at once and had been held in custody ever since. Will Face Murder Charge. Gorman said a first-degree murder indictment against Bischoff will be sought tomorrow. An indictment previously was returned against “John Doe” as the child’s slayer, but the prosecutor said he wants a new indictment specifically naming Bischoff. Deputy sheriffs, detectives and police who worked on the case expressed belief that Bischoff is insane. If indicted and a jury finds him sane he must stand trial for first degree murder. If found insane Gorman said Bischoff probably would be sent to Lima State Hospital for Criminal Insane. Unemotionally Bischoff said, “I done it and it's done.” During the confession Bischofl’s main thought was for something to eat. He interrupted himself several times during an interview with newspaper men and l;:id jail attaches if he would be given 1« had confessed. Left Child Nearly Dead. Calmly sitting in his cell he recounted how he had read in newspapers that firemen were to be taken off their regular duty to search every house. He told of his plan to throw searchers off the trail. “I decided to take her body and put it up there in front of the cellar. Then I was going to make believe I had found it,” he said. At first his victim was quiet, he said, and Thursday night after he had in- jured her she cried. He left her tied and almost dead. “PFriday morning I saw her and felt her chest. She was dead. “I looked at her Friday afterroon, then again Saturday morning. I didn't g0 near her Sunday. “Again Monday I saw her. She had her coat on and I left her lying under the stairs. Feared Discovery by Aunt. “Monday night about half-past 6 I brought her toward the front of the cellar. I was afraid my aunt or the lady upstairs would catch on. “I left her there in the front (of the cellar) because the women don't go there and wouldn't find her so quick. “I saw her again Tuesday morning. | Then I told police I had found her.” Bischoff said he spent Sunday, before Marian was found, with a friend, but that he never once spoke about the crime. Becoming weary, Bischoff fell asleep and was in a_deep slumber when photographers arrived and snapped his picture on his cot. Says He Wants to Die. Yesterday before Bischoff confessed he told newspaper men he wanted to g0 to the electric chair. Asked why, he said, “Oh, I'm tired of living.” “Why are you tired of life?” a deputy sheriff inquired. _"Oh, I've got trouble. You or any- Ccntinued on Page 2, Column 17.) D PRISON BREAK PLOT FAILS Two Convicts Attack Guard to Get Pistol, but Find He Has Only Gas Gun. By the Associated Press. BALTIMORE, January 11—A re- ported escape plot in the Maryland Penitentiary was nipped in the bud today, but not before a police riot squad had been rushed to the prison for protecsion. The first intimation of the attempt came when two prisoners, John Harris, a life-termer, and William Gambrill, serving 17 years, attacked Guard Earl O“ni'rs With & pair of shop scissors in &n effort to secure the revolver the: believed he carried. g | Owings was armed only with a gas | | gun, and when the prisoners discovered he did not have a pistol they sur- rendered and were placed in solitary confinement, Warden Patrick Brady said he had been informed the attack on Owings in Tuxedo. Mr. David Wagstafl gave the bride in marriage. Senor Arturo Peralta Ramos of Tuxedo was the best man and Senora de Ramos was the matron of hanor. Radio Programs on Page A-12 A was the first step in a plan of long- term prisoners to attempt to: escape during the lunch hour, and he called for the police riot squad. The city officers were placed on guard outside the walls and were dismissed .2n hour later when no trouble devel- He gave indication of relief that he | (T, ATTACHE REBUKED FOR GLOOMY TRADE REPORT, HE SAYS Former Agent at Lima Testi- fies Commerce Department Urged Optimism. CRITICAL TESTIMONY PROTESTED BY BOLIVIA Former Diplomat Says Probe Would Have Shown Loans to Two Latin Nations Unwise. By the Associated Press. A former American commercial at- tache at Lima, Peru, told today of re- ceiving’ a reprimand from the Com- merce Department for sending pessi- mistic reports of the financial conditions in that country. At about the same time Oliver C. Townsend was telling the Senate Finance Committee of this, the Minister of Bolivia was protesting to the State PRESS CONSPIRACY IS CHARGED BY DRY “Qutlandish” Publicity Being Given to Wet Side, Brook- hart Says. By the Associated Press. Conspiracy by the press in giving “outlandish” publicity to “the wet side” of prohibition was charged in the Sen- ate today by Senator Brookhart. The Iowa Republican, a prohibi- tionist, had just come from a hearing on beer bills at which Dr. William Gerry Morgan of this city, & former president of the American Medical As. sociation, had testified that to allow 4 per cent brew would provide “a harmless tonic for the sick and improve present conditions among our youth.” Brookhart said he had been told “the Anti-Saloon League and other dry so- cieties refused to buy space” in the newspapers, upon which the papers “turn against them an organized sort of a racket.” “That's the secret of all this wet pub- licity,” he said. “All the press associa- tions are in it alike. “It is time for them to look into all this unreasonable and disgusting pub- licity that has been going on.” He added that if they did not, a “congressional inquiry” may be forth- coming. “We are a nation of bottle drinkers,” Dr. Morgan testified. “If the youth and older people were able to purchase good dependable beer, a vast majority would turn to this rather than trust the questionable quality of liquor which is now obtained through bootlegging.” Looks on Beer as Tonic. Dr. Morgan said he had never taken out a license to prescribe liquor. He looked upon beer as a food tonic, help- fui because of its vitamin content especiallv for the sick who have tem- porarily lost their appetite. The witness got into an argument with Senator Hatfield, Republican, of West Virginia, a physician, after testi- fying moderate drinking of 4 per cent beer would have no deleterious effect. “How many glasses of that beer daily could a person tase without injury?” asked Hatfield. “In 16 hours I believe a person could take 2 quarts,” Dr. Morgan replied. ‘The Senator said this was contrary to other physicians’ claims and pointed to the number of cirrhosis cases re- sulting from taking alcohol. Dr. Morgan said a person would have to take 6 quarts of 4 per cent beer daily for some time to produce a liver cirrhosis. “Seven-eighths of the German peo- ple bave no cirrhosis,” he added amid laughter. Dr. Morgan sald he had observed much drinking in gatherings of all classes of persons in every State over the' last two and a half years. “If the sale of 4 per cent beer were legalized,” he said, condition would improve and, I progressively.” Poinfs to “Liquor on Hip.” He said he had noticed “liquor on the hip” of many of the younger men and some of the younger women. Senator Brookhart took exception to the statement and also to liquor drinking being general. He said he attended a community Halloween party in Evansville, Ind:; where 30,000 of the “common people were present and in a tour of the crowd “saw no sign of drinking. Questioned by Senator Bulkley, Democrat, of Ohio, an anti-prohibition- believe, 2 ‘per cent alcohol by welght would be ‘sufficient to turn the people away bootleg liquor.” I!‘Ofilfl. Lorgaine Catlin Brower, vice resident of the Congressional Districts Modification League, the first woman to appear, predicted that President Hoover would not veto a bill to legalize alcoholic beer. h’%}l‘g Brower said 5,000,000 voters in than three years had signed the ]:r;sanmuon‘s petition to restore beer and wine. “this regreattable | ist, Dr. Morgan said beer containing | | COSGRAVE OPENS FIGHT Confident of Re-election, Says Free State President. | | [ENNIS, Irish Free State, January 11 | (#)—President William T. Cosgrave opened his campaign for re-election here last night. He sald the British government was changing its trade policy and it would be important to Irish farmers that the Free State delegates to the impending imperial conference at Ottawa, Canada, | have the people's support. He was con- fident, he said, of the people returning his government to office. CHEN NOTE URGES FREE MANCHURIA |Neutral State Suggested in Note Reported Sent to Secretary Stimson. | { By the Associated Press. | TOKIO, January 11.—A Mukden | dispatch to the Rengo News Agency said a Japanese Army contingent, including a company of infantry and detachment of engineers, was prac- tically wiped out today while patrol- ling Hsinmintun, Manchuria, by an overwhelmipg force of bandits. | By the Associated Press. | PEIPING, January 11.—Chinese press reports received here today said Eugene Chen, foreign minister at Nanking, had cabled Secretary of State Stimson at | Washington suggesting the permanent ‘neutralixauon of Manchuria. JAPANESE PLAN DRIVE. TOKIO, January 11 (#).—Plans are | under way for extensive military oper- ations against Chinese irregulars in South Manchuria following a clash yes- | terday in which 20 Japanese were said to have been killed, according to re- ports received here today. Thirteen troop trains are being held in readiness at Mukden, reports to the Rengo News Agency said, and they may start at any moment. | patches said. Yesterday's clash was reported to have occurred at Chinsi, west of Chin- chow. The Japanese casualties in- cluded a colonel and four other officers. The Japanese patrol was said to have | been attacked by several thousand | Chinese. Planes Sent Out. Reinforcements, including airplanes, weilt.lc sent from Chinchow, the dispatch said. Airplanes are playing a leading role in combating irregulars and are work- ing in conjunction with cavalry and infantry in the operations momentarily | centered on lawless elements west of | Chinchow. Yesterday's engagement marked the first time since the outbreak of the conflict that a regimental commander was killed in action. Col. Gentaro Koga was slain in a hand-to-hand sword encounter while fighting against tremendous odds. Latest reports indi- cated that the number of Japanese| wounded was nearer 40 than 20.¢ Guerrillas Burn Villages. Guerrilla outbreaks also were Te- ported near Machiapu, 15 miles south- west of Mukden, where villages were | raided and houses were fired. The ir- regulars were said to be infesting the region of Tahushan and several other | points where the Japanese have sent | reinforcements. Mannosuke Yamaoka, president of the Japanese University, in Tokio, was appointed to succeed Seiji Tsukamoto as civil governor of the Kwantung leased territory in China proper. He is a lawyer, a philosopher and a profound (Continued on Page 2, Column 6.) { By the Associated Press. NEW YORK, January 11. — Irving Mischner, 33, New York exporter, re- turned on the liner Santa Clara today with a blowgun, & wooden sword, a certificate of achievement and tales of Huitoto Indians along the Caqueta River, in Colombia, who, he said, sought to kill him t(‘r‘r the suggestion that hey should work. ; Hyh certificate was from Padre Bar- toleme, who attested that Mischner was the first white man ever to brave that part of the wilds. RS EXPORTER GETS BACK HOME ALIVE AFTER TELLING INDIANS TO WORK First White Man to-Go Up Caqueta River Escapes Death for Urging Natives to Pick Bananas for Trade. | ‘The explorer said the Caqueta River |was “probably a new short cut from | Colombia to the Amazon River.” His object, he said, was to establish trading posts along the river, and at first he found Huitoto Indians, who wear feathers in their ears and paint their cheeks red, very friendly. ‘When he suggested that they pick an extra banana for trade every time they picked one to eat, they became wrathful and indicated a desire to ex- ecute them, | ment. Japanese of- | ficials expected to be able to clear the | | area within three h is- | mentejitheld | Mr. Chamberlain to express to him the | U. 5. ASKS JAPAN T0 FREE GENERAL |Does Not Want Officers Pun- ished for Attack on Con- sul in Mukden. BY CONSTANTINE BROWN. Secretary of State Stimson today| asked the Japanese government to re- mit the punishment of Maj. Gen. | Ninamiya and his subordinate’ officers and declared the Chamberlain incident will be considered closed by the pun- ishment only of those men who actu- ally participated in the recent assault on the American consul at Mukden Manchuria, This request was made after the Secretary received official information that the Japanese government was pre- pared not only to give full satisfaction, but intended to go much further than this government wished it to go. It will be recalled that on January |2 at 6 am, the Agerican consul, Cul- ver B. Chamberlain, had been brutally | assaulted by a Japanese military patrol while going to the Mukden station to take the train to Harbin, where he is stationed. Investigation Is Made. The Japanese government immedi- ately expressed its regrets for the inci- | dent and after a careful investigation by the superior military authorities de- | cided to give the following satisfaction to the American Government: (1) The interpreter who was the | principal culprit and had already been dismissed by the Mukden military au- thorities, will be tried by a court- martial as a former member of the Japanese regular forces, The man has been placed under arrest as were the two other soldiers who were with him at the time of the assault. (2) Gen. Ninamiya, the commarder of the Japanesc military police at Mukden, and his subordinate officers will be subject to disciplinary punish- (3) The major general commanding the Japanese forces at Mukden will call | on Consul General Myers to express formally his regret for the incident. (4) The Japanese military repre- sentative at Harbin, as well as the Jap- anese consul in that city, will call on Tegrets of their government for the un- Justified attack. Punishment Held Rare. The last two points already have been fulfilled. It has been brought to the attention of Secretary Stimson that the punishment of a major general in such | cases is very rare. The line taken by the Government of this country is that we do not want to be unfair to the Japanese. Our interest in Manchuria is the respect of the American flag, of our national in- terests and of the treaties which we have signed with the Japanese. We do not want to take advantage of any incidents, small or large, to humiliate the Japanese people. Consequently the Secretary of State considered that the punishment of Maj. Gen. Ninamiya was unnecessary as long as the Japa- nese government decided to punish the actual culprits of the assault. SIX FROM WASHINGTON INJURED IN AUTO CRASH All Taken to Hospital in Baltimore as Car Hits Pole 12 Miles From City. By the Associated Press. BALTIMORE, January 11. — Six Washingtonians, returning to the Cap- ital from a visit here, were injured, one seriously, early today when the sedan in which they were riding crash- ed into a telephone pole on the Wash- ington Boulevard about 12 miles from Baltimore. The most seriously injured was Phil- ip Baynard, 21, 5019 Ninth street, who sustained a probable fracture of the skull, a fractured left leg and lacera- tions. The others suffered lacerations and_shock. All were taken to the University of Maryland Hospital here. Besides Bay- nard they were Ruth Levinson, 16, and her Brother, Albert, 19, of 6216 Georgia avenue; Ralph Matan, 20, of 1319 H street; Morris Golden, 18, the driver, and Ell Weiner, 17, 307 Third street southeast. VOTE AIDE I.N MANAGUA MANAGUA, Nicaragua, January 11 (®).—Rear Admiral Clark H. Woodward, President Hoover's personal represent- ative, arrived here today to make pre- liminary arrangements for supervising the Nicaraguan presidential elections next November. He will go by plane to Panama next ‘Wednesday to join the Pacific Fleet and return in June. 2 Department against suggestions that his Icnum.ry would not liquidate its obliga- tions. His note described such testi- mony as “unfriendly.” Townsend said he had been instructed in @ leter from Thomas R. Taylor, as- sistant chief of the Bureau of Foreign and Domestic Commerce, that opti- mistic reports were needed. Made Unfavorable Reports. Earlier, Lawrence Dennis, a former officer in the American diplomatic service, now connected with a New York banking house, had told the com- mittee of unfavorable reports he had sent his company when it was con- templating Peruvian and Bolivian loans. inister Luis Abelli of Bolivia told the State Department today the présent unhappy economic condition of his country had required a temporary sus- pension of payments of interest and sinking funds on the bonds, but that the Bolivia government had every in- tention of resuming payments. The statements to which he protested had been made in testimony before the Finance Committee in its foreign securities investigation. In his testimony Dennis said Bolivi- an financial conditions were chaotic at the time loans were made to that country. He agreed with Senator John- son of California, sponsor of the in- quiry, that an investigation of condi- tions there and in Peru would have shown the loans were unwise and like- ly to default. V!n! Caused Debate. He added that he reported these conditions to J. and W. Seligman Co. and that his views on Peru caused a “constant debate” with his company. “They wanted to convince me, and I think they believe themselves, the loans were sound,” he said. Dennis predicted an agreement would be made to pay off the bonds on the basis of 10 or 15 cents on the dollar. He said the bankers would “bid up the market” on bonds while they sold the securities. The banking house, Dennis added, might lose a few hundred thousand in holding up the market. but this would be debited as an expense in marketing the bonds. Earlier at today’s hearing a letter written in 1926, by S. Parker Gilbert, then agent general for reparations, ex pressing “amazement at the reckless- ness of American bankers” in selling German securities in this country, was read before the committee by Senator Johnson. Previous testimony has shown mil- lions' of dollars of German securities were sold in this country since the let- ter was written. Clearly Instructed, He Says. Townsend declared he was clearly in- structed that optimistic reports were needed from Peru. He said he had come as near a warning in his reports as he could of the weakness of bonds being floated in Americg for that country. These bonds, ?oulmg $100,000,000, are now in default. Townsend was at Lima from December, 1926, to Decem- ber, 1929. He submitted a memorandum which he wrote February 10, 1927, about a dinner given in Lima by S. A. Ma- ginnis, former American Minister to Bolivia, who, according to previous tes- timony, aided in negotiating the Pe- ruvian loans. The memorandum, read by Johnson, said the dinner was “a fair sample of what the local society folk are treated to—namely, entertainment by pro- moters seeking favors of one sort or another from the Government.” After the Senate convened, Senator Dill, Democrat, Washington, arose to denounce the methods bankers had used in floating foreign securities. He particularly atfacked statements be- fore the committee that private debts are sacred but public debts are political. “When bankers reach the sordid depths of saying that private debts are sacred but public debts are political I tremble for the future of my Govern- ment,” Dill said. NEWSPAPER’S CASHIER, SHOT BY BANDITS, DIES Employe of Paper Confesses He and Brother Staged Robbery. Loot Is Recovered. By the Associated Press. LITTLE ROCK, Ark., January 11— James E. Chapple, 55, cashier of the Arkansas Gazete, died today of bullet wounds received Saturday when he was robbed of the newspaper’s pay roll by a bandit. Charles and Don Pearce, brothers, arrested an hour after the crime, were charged with first-degree murder, fol- lowing Chapple’s death. Officers said they had a confession from Charles Pearce, who for the past 12 years had been a linotype operator on the newspaper. He said his brother perpetrated the hold-up and shooting while he waited a block from the scene in his automobile for the getaway. He also led officers to the cache where he had hidden more than $4,600 taken in the robbery. Don Pearce denied he had any part in the hold-up, although he has been identified by several Gazette employes. Six “Reds” Slain in Rumania. BUCHAREST, Rumania, January 11 (#).—Four young men and two girls, described as Communists, who tried to enter Rusia from the village of Sorol over the Dniester River, where reported shot and killed by Rumanian frontier duards last night 5 WORK FINANCING BILLS PUSHED IN SENATE AND HOUSE Upper Body Agrees to Vote Today on $2,000,000,000 Reconstructior. $50,000,000 FARM LOAN FUND ADDED Amendment by Zenator Smith. President Confers on Changes. | By the Associated Press, Both branches of Congress today cen- tered attention on the $2,000,000.000 Reconstruction Finance Corporation measure in an effort to speed it onto the statute books before the week end. The Senate has agreed to vote on the proposal before adjourning today, and passage by a bipartisan majority is as- sured. The House expects to approve it Thursday, and President Hoover prob- ably will lose no time in signing the measure. A $50,000,000 fund for loans to farm- ers was added to the bill shortly after the Senate opened debate today. . Amendment by Smith. The amendment, offered by Senator Smith, Democrat, of South Carolina, was adopted without a record vote. It was reduced from $100,000,000 to $50.- 000,000 at the suggestion of Senator Walcott, Republican, of Connecticut, sponsor of the bill. Before Congress convened President Hoover called in Ogden L. Mills, Under- secretary of the Treasury, and Senate finance experts to attempt to obtain revision of the Senate and House bills to conform more closely to administra- tion views. Meanwhile, another economic meas- ure, one to speed relief to insolvent banks and their depositors through a $150,000,000 corporation, was taken up by the Senate Banking Committee. Senator Watson of Indiana, the Re=~ publican leader, summoned three wit- nesses to testify Thursday before a sub= committee on his bill to establish a sys- tem of home loan discount banks. Plea for New York City. At the outset of debate on the Recon« struction Corporation, Senator Wagner, Democrat, New York, pleaded for adop- tion of the amendment to permit the City of New York, if it found is neces= sary, to borrow from the corporatjon. He said the credit of the city was higher than any other munmpaflty in “the world. “I believe that the very availal y of assistance would make 1t es- sary for the city to employ it,” he said. The New Yorker told how the city had made-available $346,000,000 for re- lief in 1932, but said home and workers’ relief bureaus were closing in the face of a controversy between the city and bankers over the financing of the bu- reaus. For more than an hour the President and his economic advisers discussed various phases of the reconstruction program. Ogden Mills, Undersecretary of the Treasury, one of the conferees, said there were certain objectionable fea- tures in the bills before Congress and an effort would be made to revise them. He declined to say what provisions in the measures were contrary to Mr. Hoover’s ideas. Glass and Meyer Present. The other conferees were Senator Glass, Democrat, of Virginia; Eugene Meyer, governor of the Federal Reserve Board, and Senator Walcott, Republi- can, of Connecticut, author of the Sen- ate bill. Glass conferred with the Precident separately. He said he had ceen calied in to “iron out wrinkles” in certain legislation and expressed an opinion that the matters could be straightened out. He waited for Walcott and they returned to the Capitol together. Another economic measure, one to speed relief to insolvent banks and their depositors through a $150,000,000 corporation to lend them money, was taken up by the Senate Banking Com- mittee. Senator Thomas, Republican, of Idaho, who introduced the measure for aid of insolvent banks last Saturday, said he hoped to have it reported to the Senate this week and taken up for action soon. Immediate Aid Given. “It will give immediate relief to thou- sands of depositors throughout the country who have much of their work- ing capital tied up in closed banks,” said Senator Thomas. Loans to closed banks, the assets of which are sufficient to keep them solvent, would be permitted under the Reconstruction Finance Corporation measure, but the Thomas bill makes special provision for aiding the in- solvent banks, State and national. A similar bill has been introduced in the House. The move has the approval of the Treasury. . T;xenSex}nLe b:inkl?g (lfiudera indicated eneral understanding from White House conference. e £ WOMEN INVESTIGATED IN AMERICAN'S DEATH Round-up at Cannes, Where Body of Thomas Clark Was Found on Beach, Made. By the Associated Press. CANNES, France, January 11.— Seeking to solve the death of Thomas Clark, an American, whose body was found on the beach last Friday, police stalx;]wd ul lnmund-rup mflxi’g of young women living or frequen that part of the city in which Clark lived. - Authorities hoped the hotel proprietor who identified Clark’s body would be able to place one of the women as hay- ing been seen with him the day of his death. He was believed to have had money that night, but had cnly 27 cents in his pocket when his body was found. He arrived here January 5 with no clothes beyond what he wore and left Friday after paying his bill. He was born in New York in 1864. ARGENTINA DISSATISFIED MONTEVIDEO, Uruguay. January 11 (). —Argentine Ambassador _Cantilo delivered today to Foreign Minister Blanco a second note from Argentina insisting that certain point- in its first note to the Uruguayan government pro- ka | testing against the activity of Argen- tines in Uruguay in the recent revolt at La Paz were not duly considered TUENAEL Toph. - .