Evening Star Newspaper, January 21, 1932, Page 1

WEAT. (U. 8. Weather B Mostly cloudy toni| probably occasional slowly rising temperature. Teniperatures—Hig p. yesterday; lowes Full yeport on page 9. Closing N.Y. Markets, Pages13,14 & 15 HER. ureau Forecast.) ight and tomorTow; ight rain tomorrow; hest, 59, at 3:30 t, 40, at 12:15 am. @h WITH SUNDAY MORNING EDITION ¢ Foening Star. Associated service. The only evening paper in Washington with the .Press news Yesterday’s Circulation, 121,983 = N Entered as seco O post office, Wa 32,041, nd class matter shiwgton, D. C. WASHINGTON, D. C, THURSDAY, JANUARY 9 1, 1932—FORTY-TWO PAGES. ¥ X (#) Means Associated TWO CENTS. Press. EUROPE APPEARS NEAR DECISION ON | DET- SHONDOH Views Exchanged on Meth- ods of Stopping Payments to United States. MONDAY’S CONFERENCE CALLED OFF BY LONDON/| Germany: Demands Permanent So- | lution Before Expiration of Hoover. Moratorium. BY CONSTANTINE BROWN. The time for making a clean slate of all reparations and war debts is rap- idly approaching its final phase. Views as to how to approach this question to the best advantage of every- body are being exchanged between the principal European nations. Mean- while the Department of State, while pleading complete ignorance of what is going on across the ocean, is informally being told of the progress of the nego- tiations between Great Britain, France and Ttaly either by our representatives abroad or by the representatives of those countries in Washington. The decision reached to postpone the Lausanne Conference, it is said in re- liable quarters, was not due exclusively o any precarious situation of the Laval cabinet or to the desire of postponing the reparations question until after the elections. in France and in Germany, but mainly to the fact the principal creditor nations of Germany had come convinced their principal debtor will or cannot pay reparations any longer. Two Schools of Thought. The conversations between London, Paris and Rome are reliably reported as not dealing with the fact of whether America’s debtors will or will not pay their debts, but only with the best methods to stop any further payments to this country. ] There are two schools of thought in Europe today. One is that each na- tion should approach the United States individually and after putting before | the administration the financial situa- tion of each country, to ask for a can- cellation of debts. The principal argu- | ment in favor of such a theory is lh‘t; if Germany cannot continue to pay her Teparations there is going to be a deficiy in the budget of each of the creditor nations. To fill the gap new taxes will be essential and by increasing taxa- tion the capacity fo pay of all our debtors will be impaired. It has been repeatedly stated by re- ble people in this country that h of the debtors will have to refund their indebtedness to the United States exclusively in accordance with its ca- Dfiu’ to pay. the taxpayers of Italy or Great in or France are compelled 10 pay vier taxes to make up for the bud- m deficiency caused by Germany's lting their capacity 10 pay us is lessened and consequently the govern- ments of those countries think that they have 2 legitimate reason to ask America either to cancel.or drastically revise the annuities paid by them each year. Humiliating to France. 1t is reported that most of the Euro- nations with the exception of Brance are in favor of such a solution. France finds this humiliating, however. Her leaders do not think it would be dignified for important European na- tions to present to the American Con- gress their balance sheets and ask, hat in hand, this country for a reduction or cancellation of debts The second theory being discussed between the European chancellories is that the European nations reach a com- mon agreement and a final decision not to pay a cent of their debts to the United States as long as Germany is not paying reparations. When the unity of action has been agreed upon, the United - States should be informed and told that from a certain date after July 1, the European powers will no longer be able to pay us any further in- stallments on war debts. So far no definite agreement has been reached between the interested powers. France is not particularly interested in the cancellation of debts for several rea- sons. First of all, she is paying us only 2 part of what she is getting from Ger- many, and, secondly, while she may be prepared to scale down somewhat the German reparations, she does not want to cancel completely Germany's indebt- edness to her. France has more than | one club to swing over Germany's head | in ecase she intends tp make a clean slate of the entire reparations problem, and by joining the other powers in an- nouncing her intention to cancel her debts toward us would deprive her of a powerful argument of continuing to claim reparations from Germany The State Department has “officially” no knowledge of what is going on in Europe in regard to the question of reparations and debts and the Secretary of State has very timely informed the interested government we cannot see any link between reparations and debts In,order not to appear too adamant however, it is reported from Paris he drew the attention of the French gov- ~(Eontinued on Page 2, Column 2.) WIDOW CONVICTED OF SCALDING CHILD West Virginia Woman Faces Life Term in Death of Stepson, 9. By the Associated Press LEWISBURG, W. Va, January 21.— Mrs. Minnie Stull, 30-year-old Princeton widow, was convicted of first degree murder today for the fatal scalding of her 9-year-old stepson, Mickey, in a tub of water. The jury recommended mercy, which makes & sentence of life imprisonment mandatory The State had asked penalty. Mrs. Stull was sentenced to life im- prisonment at her first trial a year ago. That sentence was suspended when she was granted a new trial and & change of venue. At her second trial here the Jury disagreed Defense Counsel contended the State asked for a conviction “without & motive being shown,” and that the boy's death was “an unfortunate accident and no {ault of the defendant.” the death Deer Halt Train As Herd Migrates In Search of Food By the Associated Press. WALLACE, Idaho, January 21. —Northern Pacific_traipmen re- ported today that their train was halted between St. Regis and Saltese by & large band of deer. The animals apparently were moving from the higher ridges of the Montana-Idaho divide, where snow is 6 feet deep, to lower country, where feed is more accessible. HAWAII ATTACK REPORT IS DENIED Woman Who Said Escaped Slayer Assaulted Her Is Found Unharmed. By the Associated Press. HONOLULU, January 21.—The story of a Japanese woman that she had been attacked here last night by Daniel Ly- man, fugitive murder convict, was con- tradicted today by Emergency Hos- pital authorities, who made an exam- ination and reported the laboratory tests were negative. Identified Convicts Picture. Mrs. Toka Okazaki, 29, mother of two children, complained to police she had been assaulted near John Rodgers Air- port by a man she identified through a photograph as Daniel Lyman, escaped | Portuguese-Hawaiian murderer. This report came as authorities were preparing to place before the grand jury evidence in the lynching of Jo- seph Kahahawai, Hawaiian, alleged at- tacker of a Navy officer's wife, as the territorial Legislature, in special session, was seeking & formula for better law enforcement to overcome hoodlumism in Honolulu. Last September Mrs. Thomas R. Mas- sie, strolling alone early in the morning | after leaving a party, was the asserted victim of five men. The five later were tried, the jury disagreeing six to The four alive are awaiting re- TOKD PARLANENT DISSLYED, MAKING WAY FOR ELECTIONS Outline of New Government’s Program Presented to Both Houses. POLICY ON MANCHURIA RESTATED BY PREMIER | Chinese Irregulars Lose 30 in En- gagement With Japanese Troops Near Tahushan. . By the Associated Press TOKIO, January 21.—The Japanesc Parliament was dissolved by Imperial decree this afternoon to make way for general elections. The order was promulgated imme- diately after Premier Inukai, Foreign Minister Yoshizawa and Finance Min- ister Takahashi completed an outline of the new government's program to both | houses and no opportunity. was given the opposition members to ask ques- tions. In the outline of policies, the three ministers touched upon the Manchurian question, reiterating that Japan has no territorial ambitions in the territory. They also criticized the late Wakatsuki cabinet for removing the gold embargo and said industry has witnessed a re- vival since the embargo was replaced by themselves. Aim in Manchuria Reiterated. The premier declared Japan's aim in Manchuria is solely the observance by China of existing treaties. The open- door principle, he said, is the ‘“root and trunk” of Japanese national policy. “In recent years,” Foreign Minister Yoshizawa said, “the Chinese author- ities, ignoring the historical fact that the present development of Manchuria is entirely due to Japanese efforts and taking advantage of our complaisance, Mrs, Massie's mother, Mrs. Gran- | ville Fortescue of New York and Wash- | ington; her husband. Lieut Massie, | . N, and two Navy enlisted men, | Albert O. Jones and E. J. Lord, have | been charged with slaying the ffth | man, Kahahawai. | Seized by Gunmen. Mrs. Okazaki said she went motor- ing last evening with Takeo Harimoto, driving toward the sirport, which is six miles from the center of the city in the direction of Pearl Harbor. Re- turning, lheLhnd paused near the en- trance of the air fleld when a shot | was heard. Harimoto said he looked out of the car and was stunned with a blow from a revolver. Recovering, he said, the gunman made him back the automobile about 50 feet, get out and march to the nearby railroad tracks, to which he was bound with & fish line. Mrs. Okazaki sald the gunman then returned toward the car, caught her when she tried to escape, robbed her of $1.25 and essaulted her. Then he de- manded: “Do you know who I am?"” She said no, and he asked her address. Putting her in the car, he drove her to her home in the Palama district, she sald, and then disappeared. Meanwhile Harimoto, freeing himself, reached a telephone at the airport and called po- lice. Identifies Man's Pictare. The police took both Harimoto and later Mrs. Okazaki to headquarters here, where she was shown Lyman’s picture. She said it was the same man, although her attacker wore a beard. Police noted just three weeks had passed since Ly- man escaped from Oahu Penitentiary in company with Lui Kaikapu, who was sent back there for life after assaulting | a white school teacher during his few hours of liberty.. Mrs, Okazaki’s husband has been ill in a hospital for a long period. The | Japanese woman, after questioning, was | taken to a hospital. . The Territorial Legislature’s program today called for further consideration of the law enforcement bill to replace the present elective police head with an appointed police commission and chief. The Legislature planned a 30- day recess starting tomorrow ‘or Sat- urday. This program made no provision for | action before the recess on a bill to| make Gilliland's office appointive in- stead of elective, and in some quarters | (Continued on Page 2, Column 8.) THAD BROWN NAMED President Hoover today appointed | Thad H. Brown of Ohio to be 8 mem- | ber of the Federal Radio Commission | to succeed Ira Robinson, who recently | resigned The President appointed Mr. Brown, | who has been general counsel for the Radio Commission, to the term of Mr. Robinson, which expires February 23 next, and at the same time appointed him to the commission for a full term ! of six years from February 24. | The appointment of Brown was made in the face of opposition by Chairman Couzens of the Senate Interstate Com- merce Committee. Couzens later an- nounced his intention to fight con- firmation have pursued a policy of oppression toward the Japanese and repeatedly have set at naught their treaty rights. “Thus the situation became more and more disquieting politically ‘and the menace to our position increasingly grave. The Japanese . patience was tried to the break point when the bombing incident of September 18 came suddenly. (The reference was to the bombing of ‘the Japanese-owned South Manchuria Railway). Declares Security Attained. “In the past Japap always has done everything in its power to prevent civil commotion in China from spreading to Manchurie. “Thanks to these untiring efforts, Manchuria has been kept free from the constant turmoil of China proper and has been converted into a land of peace and security.” Both the United States and the League of Nations, he said, have now a much better understanding of Japan's case. ‘Thirty Chinese were killed, many were wounded and one Japanese soldier was wounded today in a clash between Japanese troops and Chinese irregulars near Tahushan, Manchuria, a war office statement said this evening. In another encounter morth of Chin- chow 16 Chinese were killed and 19 captured. There were no Japanese casualties in that engagement The war office casualty list, covering the Manchurian campaign from Sep- tember 18, placed the number of Japa- nese killed at 300 and the number of wounded at 600 In addition about 400 fild&en are still in hospitals with frost- te. PROTESTS INTERFERENCE. NANKING, January 21 (#).—The Chinese foreign office sent a note to the: Japanese government at Tokio today protesting against what it said was Japanese interference with the opera- tion of the Peiping-Mukden Railway. The note demanded immediate re- storation of traffic on the road and re- served the right to demand compensa- tion for losses sustained. MOVE AMERICAN CAPTIVE. HANKOW, China, January 21 (#).— Radlo dispatches from foreign naval craft in the vicinity of Pailochi, near where Charles Baker, American river boat captain, was kidnaped by bandits & few days ago, said the bandits now have moved 70 miles northward with their captives and nave taken up 8& position in the swampy district around Hung Lake, where contact with them | s impossible e bandits are holdin | for 200,000 Mexica aofilfi:ptrnfisaukl’: As a result of the latest news, Ameri- can Vice Consul Edmund O. Clubb abandoned an attempt to proceed to the scene to open negotiations for Baker's release. The belief prevailed here that the | bandit gang is the same that kidnaped Bert Nelson, Minneapolis missionary, in October, 1930, and are still holding him | in spite of the fact that several thou- | sand dollars have been paid for his | "“Crited s , nited States naval author | making an investigation. and 8 rrotese | has been filed with provincial au- | thorities. The American legation also | has made representations to the | Chinese government at Nanking, iBuilt by Mixtecas to Link { By the Associated Press. MEXICO CITY, January 21.—A declaration that ancient tunnels under- mine much of the western half of the State of Oaxaca, where last week a large cache of treasure was found in an ancient tomb, was made here today by Prof. Ramon C. Robles, pure Mix- teca Indian, who is federal inspector of schools for the State of Oaxaca The professor declared that old Mix- tecan Rieroglyphics tell of tunnels con- necting ail the principal Mixteca cities and fortresses with the capital and royal city of Tilantongo. He said the longest of these tunnels was more than 30 miles. They were built, he said, for protec- tion and quick communication by wa riors between the principal cities, and one or two of them been par- |ANCIENT TUNNELS UNDERMII\}E MEXICAN STATE, SAVANT SAYS Cities Secretly—QOne More ! Than 30 Miles Long. tially explored. The others in during various earthquukes e cz'r;’:; entrances have been hidden by the action of nature or the elements, The professor also declared that the ancient Mixtecans, who were the finest goldsmiths ever known to Western clvilization, had an art of mixing metals | with juices of herbs which rendered | these metals so pliable they could be | molded like clay. ~ This, he says, is the | way the present treasures found at | Monte Alban were fashioned, as he de- | clares these golden bracelets, earrings |and necklaces bear no evidence of have mg’nlheen be:t;n into shape. e secret has been zealous) ed, he said, in the hills of Ossaes wod still is practiced, but it never has been revealed because some Mixtecans never the white man. . have acknowledged the dominance of - WATCH OUT BEHIND, UNCLE! SLAIN MAN'S DIARY SCANNED FOR CLUE AT PHILADELPHIA “Hex” Theory Doubtea Despite Weird Marks Found on Church Leader’s Face. By the Associated Press. PHILADELPHIA January 21. diary kept by Norman R. Bechtel from 1923 until the day he was slain was scanned today by detectives seeking a clue to the motive for his killing. The day-by-day account of the activities of the 31-year-old church worker, who was stabbed to death early yesterday on an untenanted estate in Germantown, was found in his apart- ment, several miles from the scene of the killing, An examination revealed the names of many men and women, but whether any of the entries would prove signifi- cant. detectives were not prepared to say. Robbery Hint Studied. With not even a fingerprint found in Bechtel's blood-stained automobile, detectives advanced three theories for the slaying. One was robbery, another that Bechtel was attacked by & maniac and the third that he may have been a so-called “hex” or witch victim. Police said, however, they take lit- tle or no stock in the “hex” theory. It grew out of the peculiar shape of some of the 12 stab wounds found on the face and body. Bechtel was unconscious when found and died in a hospital less than two hours later. His automobile was found 12_hours later abandoned -in West (Continued on Pagée 2, Column 5.) RAIL HEADS GIVE DATA T0 UNIONS Wage Cut Plea Based on Low " Earnings—Bankruptcy Fears Bared. By the Associated Press. CHICAGO, January 21.—The rail- way presidents came forward today with the “important statistics” demand- ed by union labor in support of the plea for acceptance of a 10 per cent wage reduction The meeting adjourned at noon, but will be resumed when the general chairmen will confer with the executives. This was Inter- preted as an indication that negotia- tions were nearing a conclusion. The presidents asserted that gross earnings of the raflroads in 1931 were 33 per cent less than in 1929. Their statement presented a mass of data on railway earnings and answered the labor proposals at the joint wage conference. Presented by Willard. The brotherhood and union delegates Tuesday had made clear they would not accept the arguments of the car- riers on the need for adequate invest- ment return, but .they wanted a true picture of railway financial conditions and a statement of what was needed to meet, fixed charges and maintain credit. | Danlel Willard, chairman of the President’s Committee of nine, plunged | at once into a statement of the finan- cial status of the rails, saying that in 1931, 72 companies failed by $90,- 000,000 to meet their fixed charges. he presidents made no substantial concessions to the labor program, but they assured the employes that indi- vidual' managements would go as far as they could to remove the fear of unemployment. -One of the principal points in the brotherhood program was a definite assurance of sustained em- loyment. it Bankruptcy Feared. “In spite of enormous reduction that has been made in operating expenses,” the presidents claim, “many of the carriers are threatened with bankruptcy because of inability to pay their fixed charges or to meet the principal of obligations that are coming due for payment. “There were 72 individual railway companies which failed by $90,000,000 | to earn their fixed charges in 1931, and unless present net earnings can be in- creased the number that will not earn (Continued on Page 2, Column 1) APARTMENT LOOTED OF $250,000 GEMS Bandit Trio Binds Owner and| Butler and Flee With Jewelry. By the Associated Press. NEW YORK, January 21.—Jewelry valued by police at more than $250,000 was stolen today from the apartment of Mr. and Mrs. Harry Glemby in East Sixty-seventh street by three bandits who bound Glemby and a butler and escaped about the time detectives, in- formed by telephone, were starting for the scene from the East Sixty-seventh ctreet police station, a little more than two blocks awey. . dio ‘l’ro[r’gll on Page C-3 4 tomorrow morning, | BILL TO UNITE NAVY AND ARMY PRESSED Proposal Would-Save U. S. $100,000,000 a Year, House Member Says. By the Associated Press. | Consolidation of the Army and Navy | was proposed to the House Expenditures | Committee today with the prediction it would save $100,000,000 a year. Chairman Byrns of the Appropria- | tions Committee gave the estimate dur- | ing_ & hearing on his bill to create a Department of National Defense. The measure would provide that the new | Secretary of National Defense have | three assistants—one for the Army, one for the Navy and one for aviation. Byms said he did not blame Army | and Navy officers for “not wanting us | to pass this bill.” | “But they shouldn’t be allowed to | run the Government,” he added. Budget Estimates Read. Byrns read budget estimates for 1933 to show expenditures in Washington for | civilian personnel, contingent expenses | and printing and binding in the War and Navy Departments totaled more | than $9,800,000. “You don't have to be told that if | you consolidate those services ycu could save money,” Byrns said. | He also said there were in Washing- | ton 545 Army, 448 Navy and 82 Marine | Corps officers | ““Is there any excuse for that?” he asked. “We are paying them $4,000 to | 6,000 a year when we can get civilians | to'do’the same work for one-third that | amount.” | Call Adams and Hurley. | “Don’t vou think it better to make them work than send them out to be- come tea hounds or lounge lizards?” Representative Schafer asked. “Why, yes,” Byrns replied. The committee agreed to meet Satur- day to hear Representative Martin of Oregon in opposition to the bill. Secre- taries Adams and Hurley of the Navy and War Departments will be asked to | appear or to send representatives. HORSE TRAINER SLAIN; HOUSEKEEPER HELD Note in Woman's Handwriting Says Victim Told Her to Shoot Him. By the Associated Press PIQUA, Ohio, January 21—Richard Shepperd, 65, well known to followers of light harness racing, was found shot to death in his home here early today. His housekeeper, Mrs. Lydia Swailes, 74, who was found unconsclous with a tube leading from an open gas jet in her hand, was held for questioning. A not in her handwriting, police said, stated Shepperd told her to shoot him because he had spent all her money in operating a pool room, ‘The woman was quoted by police as saying the shotgun discharged acci- dentally Shepperd until six years ago was known at all the country’s harness race tracks as a manager and ‘trainer. He handled Grace Hussey, ‘Jsaious OCOMOR ADMITS Tells Hearing Board Gave Away $8,000 Worth of Rum in Chapman Deal. By the Assoclated Press Chairman O’Connor of the United States Shipping Board today told a House ' committee under questioning that American lines operate bars out- side the 12-mile limit. O’Connor was testifying in the investi- gation of the House Merchant Marine | Committee into the Shipping Board sale of the United States Lines. Representative Lehibach, Republican, of New Jersey, asked: “Isn't it true that all American steamship lines except the Dollar serv- ices run bars once the ships are outside the Hmiit, and isn't it a fact that it is foolish to keep it secret—that the lines are thereby losing trade?” “I belleve that is s0,” sald O'Con- nor. “I have heard men say ‘I am going on a foreign ship where I can buy liquor.’” Sacrificed $8,000 in Liquor. O'Connor said the Federal Govern= ment sacrificed to the prohibition law $8,000 in liquor supplies in the 1929 transfer of the United States Lines to the Paul W. Chapman Co. Chairman Davis of the Merchant Ma- rine Committee was questioning O'Con- nor on the charge qf Controller Gen- eral McCarl that the Shipping Board gave the Chapman company, without charge, a million dollars’ worth of equipment and supplies in the transfer. O'Connor made a firm denial of the charge. “Did the stores include liquor?” asked Representative Sirovich. supplies did include about $8,000 worth of liquor considered as medical sup- plies. “Did you give them that liquor?” asked Sirovich. ¢ Turned Over as Supplies, “Well, we considered a long time,” said O'Connor. . “The Government couldn’t sell them the liquor or it would be put in the position of a bootlegger. “We just figured we'd have to turn it over as hospital supplies without cost.” O'Connor refused to say the liquor could be called anything but strictly “medical supplies.” “Eight thousand dollars worth of liquor isn't much for medical supplies,” sald O'Connor. “Any ordinary barber would have that much liquor.” “They did sell that liquor after they left the 12-mile limit, Davis persisted. O'Connor insisted, however, that he Iel}t sure the liquor was medical sup- plies. Trotiky May Go to Germany. Mail said today that messages from an unknown source in Moscow said Leon Trotzky would be permitted to leave his exile in Turkey and reside in Germany. Negotiations have been in progress for some time between Trotzky and Social Democratic leaders in Germany, the paper said. It added that Trotzky is said to have agreed to advise his fol- lowers in Germany to support Chancel- lor Bruening instead of Adolf Hitler National Socialist leader. BARSONU. . SHIPS, O'Connor answered that the ship’s | didn't they?” | LONDON, January 21 (#).—The Daily | CONFEREES REPORT FINANGE BILL T0 - SENATE AND HOUSE Final Legislative Action on $2,000,000,000 Corporation to Be Pushed at Once. PRESIDENT IS READY TO APPROVE MEASURE Expects to Announce Names of All Seven Directors When He Puts Plan Into Effect. By the Associated Press. The final draft of the Reconstruction Finance Corporation measure Wwas signed today by Senate and House con- ferees, and they planned to push it | speedily through both Houses to the President. Senator Walcott of Connecticut said President Hoover was “very pleased” with the reconstruction measure as it emerged from conference. As the bill was completed after two days of conferences, it became known that Bernard M. Baruch, most promi- nently mentioned Democratic possibil- ity as a director of the $2,000,000,000 corporation, cannot be named under the terms of the bill. > ‘The measure provides that of the seven directors no two shall come from the same Federal Reserve district. Eugene Meyer, governor of the Federal Reserve Board and chairman of the finance corporation board, is a mem- ber ex-oficio. His appointment bars Baruch, as both come from the New York ditsrict. Dawes’ Request Refused. A last-minute change in the measure to permit the appointment of Edward N. Hurley of Chicago, another Demo- crat, was sought from the conferees this morning by Charles G. Dawes, president of the corporation. The request was refused. The con- ferees took the position that although the provision might bar good men it would be best to have the directorship of the corporation thoroughly represen- tative geographically. ~Both Hurley and Dawes are from Chicago. ‘The appointment of Angus McLean, former Governor of North Carolina, as a Democratic director appears likely. All three of the directors remaining to be named will be Democrats under the terms of the bill. It requires that | no more than four of the seven can | belong to the same political party. Already on the board are four Re- publicans—Dawes, and the following, ex-officio: The Secretary or Under- secretary of the Treasury, Governor Meyer and the Federal Farm Loan commissioner, Completed Last Night. The measure was completed Iast night by the 12 conferees. No changes aere made today except in punctua- on. Proponents of the legislation hope for final passage of the measure tomorrow. President Hoover is ready to act on it quickly, Meanwhile, members of Con- gress brought to the White House fresh recommendations of men to fill the posts still vacant. The name of M. B. Wellborn of An- niston, Ala.,, former governor of the Federal Reserve Bank of Atlanta, was strongly urged by Senator Bankhead (Democrat, Alabama), Representative | Rainey (Democrat, Illinois), the Demo- cratic floor leader, and Representative Steagall (Democrat, Alabama). Earlier Senator Harris (Democrat, Georgia), had urged Hurley for one of the posts. Steagall informed the President the measure would be passed by the House tomorrow, sent immediately to the Sen- ate and placed upon the President's desk before nightfall. It was assumed by those going to the White House that the President not only would sign the measure im- mediately, but would have ready by that time the full directorate of the corporation. It was also decided today by the Pub- lic Buildings Commission that the new Reconstruction Corporation would have its headquarters in the old Commerce Department Building, Nineteenth street and Pennsylvania avenue. Loans Are Limited. As drafted by the conferees, the legis- lation will allow the corporation to re- place unliquid collateral with cash in loans to the following classes of busi- ness: Federal and State banks, savings banks, trust companies, building and loan associations, mortgage loan com- panies, insurance companies, _credit unions, Federal land banks, joint stock land banks, Federal intermediate credit banks, agricultural and live stock credit corporations and interstate steam and electric railways, exporters and farmers. All loans are limited to $100,000,000 (Continued on Page 2, Column 3.) Gandhi's Son Sentenced. BARDOLI, India, January 21 (P).— Ramdas Gandhi, third son of the M: hatma, was sentenced to 18 ‘months’ imprisonment at hard labor today for participation in the Nationalist cam- paign. He was arrested last Tuesday. WOOD EXPLAINS Representative Will R. Wood of In- diana, who is leading the campaign seeking to reduce salaries of Govern- ment employes, explained figures quoted by him yesterday to the effect that eggs are selling for 16 cents and canned vegetables for 5 cents. He admitted he knew these were not the prices actually paid for food in Washington. He said that last Priday when he was down on the Eastern Shore of Maryland he saw signs in country store windows adver- tising eggs at 16 cents a dozen and that a national mail order house has been advertising tomatoes and other canned vegetables at 5 cents a can. Mr. Wood also disclosed that he had re- ceived a letter from his sister in Illi- nois, who raises poultry, and complained that she could get only 13 cents per dozen for eggs. Representative Wood acknowledged that he realizes these facts and figures do not apply i ‘Washington and do not | help out the family budget here. He nuf he cites them-as-an illustration of “16-CENT EGGS AND 5-CENT CANS OF VEGETABLES” Federal Pay-Cut Leader Admits Prices Cited in Statement Are Not Applicable Here. the wide spread between what the pro- ducer gets and what the consumer pays. Inquiries at Washington'’s largest cut- price grocers today, however, failed to disclose one chain selling eggs at 19 cents. Most of the chain stores charge 20 to 23 cents a dozen for their lowest grade eggs. Likewise, while all of the chain stores sell canned goods at 5 cents a can, each was emphatic in denying that these goods ever were priced at 20 cents. Two store managers declared that such an assumption was ‘“absure Most of the 5-cent canned products, the stores explained, were the output of new can- ning companies or wera, the “new” products—new grades and sizes—of the older packers. Commenting upon the possible effects of Government pay slashes, Mr. Wood declared that private industry “does not neeq the incentive from the Govern- ment to cut salaries; manufacturers, wholesalers and retailers already have made reductions.” PAY CUT BATTLE LIKELY ON RIDERTO LEGISLATIVE FUND Wood Drops Plan to Get Amendment Put on Agri- culture Bill. REQUIRES MORE TIME TO DECIDE ON COURSE Pou Declares Some Legislators Op- pose Reducing Salaries Under $2,000 a Year. BY WILL P. KENNEDY. The fight over the proposed reduc- tion in salaries of Government em- ployes as a rider on appropriation bills will not be made on the agricultural Ap‘propr!atlon bill now under consider- ation in the House, but will probably come on the legislative appropriation bill, Chairman Pou of the House Rules Committee announced today after a conference with Representative Will R. Wood, Republican, Indiana, former chairman of the Appropriations Com- mittee, who is leading the effort to slash the Government pay roll. While Representatives Granfield, Democrat, of Massachusetts; Blanton, Democrat, of Texas, and Boylan, Dem- ocrat, of New York, were making speeches in the House in opposie tion to a cut in Government salaries, particularly in the lower grades, Rep- resentative Wood was carrying forward his drive to get the salary-cut amend- ment made an order by a special rule. Representative Wood presented to Chairman Pou of the Rules Committee a resolution he sought to have made an order covering all salaries in all the ap- propriation bills under a blanket provi- sion. Comimitee Custom Explained. Chairman Pou told Mr. Wood the tradition and custom of the Rules Com- mittee was that when an upusual re- | quest like this was made, the committee making it should take some formal ac- tion indicating the sentiment of such committee. In other words, Mr. Pou said, the custom is for the committee to pass a resolution requesting inter- vention by the Rules Commitfee and an appearance before the Rules Com- { mittee' should be either by a resolution adopted by the proper legislative com- mittee or by the chairman and rank- ing majority member of such commit- tee appearing in person before the Rlil;rs Committee. . Wood tol an Pou that in bis opinion CRANSAS BYRaSF the A propriations Committee would call that committee together and the committee would take formal action requesting that the proposed Wood amendment be made in order. A little Jater Mr. Wood notified Chair- man Pou that he would not ask that this resolution be made applicable on the agricultural appropriation bill now being debated in the House, as he de- sired more time to consider his course of action and because all those inter- ested in this legislation desire more time for careful consideration. Mr. Pou said the attempt would probably be made on the legislative appropriation bill. Mr. Pou said he was not speaking for the Rules Committee and would not attempt to forecast that commi tee's action, but said his personal a titude is that “we are confronted with the unpleasant duty of cutting all Gov- ernment salaries down to the point where such salary is no more than suf- ficlent to cover the necessary living ex- penses of the person receiving it.” Intimates Sliding Scale. He declined to state what he thought would constitute a living wage, but in- timated it would be on a sliding scale for various branches of employment. “I would start at the President and come down to the point necessary for living expenses,” said Mr. Pou. “That amount would be specifically mentioned in the resolution if and when it is reported by the Rules Com- mittee.” Mr. Pou said some members of Congress are in favor of not cut- ting any salaries under $2,000 and others contend no salaries under $2,500 should be reduced. ‘Wood's Resolution. ‘The resolution presented by Repre- sentative Wood is as follows: “(a) The annual rate of compensa- tion of all offices, positions and other employments under the Federal Gov- ernment, the municipal government of the District of Columbia, the Panama (Continued on Page 2, Column 4.) GLASS DENOUNCES “HYDE STATEMENT” Charge That Wilson War Loans Were Illegal False, Says Senator. By the Associated Press. Statements attributed to Secretary of Agriculture Hyde that the European war loans were made by the Wilson administration ‘“‘without legal right™” ‘were denounced in the Senate today by Senator Glass of Virginia as “false in spirit and in fact.” Senator Glass read from a recent speech by Hyde a statement that the $2,000,000,000 loaned to Europe after the war was “without legal right.” In the speech, Hyde named Glass, a former Secretary of the Treasury, and his predecessor, Willlam Gibbs McAdoo, together with Wilson. “This grave accusation against the late Woodrow Wilson would have sub- jected him, if true, to impeachment,” Glass said. “Secretary Hyde seemed so attached to this vicious accusation that he has since broadcast it over the Na- tion twice. “I assert that in spirit and in fact it is false from beginning to end. There isn't a word of truth in it, and the Secretary of Agriculture might' easly have ascertained the facts had he been as cautious to observe the truth as he was swift to misrepresent the facts. ‘To support his contention, Glass pro- duced a letter from Secretary Mellon stating neither the Treasury nor the ‘World War Debt Funding Commission ever had taken the position the loans were made without authority of law. In the letter Mellon pointed out the war did not end officially until July 2, 1921, and said Congress had authorized loans to be made until the actual termi-