Evening Star Newspaper, February 24, 1932, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Partly cloudy; not quite so cold to- night; minimum temperature about 30 degrees; tomorrow party cloudy. Temperatures—Highest, 39, at 1 p.m. yesterday; lowest, 23, at 7 am. today. Full report on page 4. Closing N. Y. Markets, Pages 14 and 15 ¢ Foen WITH SUNDAY MORNING EDITION iny Shar. No. 32,075. Frseronce Entered_as second class matter Washington, D. C. WASHINGTON, D. WEDNESDAY, C., FEBRUARY 24, 1932—THIRTY-SIX PAGES. “From Press to Home Within an 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. Yesterday's Circulation, 124,657 ¥¥¥ (#) Means Associated Press. TWO CENTS. ~== NAVY PACT IN CHANGE IN NINE-POWER TREATY WOULD INVOLVE WORLD NAVAL BALANCE Other Compacts at Stake, Says Secretary. JAPANESE ACTS HELD UNLAWFUL Letter to Borah Re- iterates Open Door Policy in Far East. By the Associated Press. _ | In a sweeping reaffirmation of| American policy, Secretary Stim-| son declared today that the whole | fabric of international under- standing in the Far East—includ- ing even the balance of naval power agreed on in 1921-22—was threatened by the hostilities be- tween Japan and China. It was partly because of the guarantees in the now disregarded nine-power treaty, he said, thnt: the United States agreed to give up some of its battleships and abandon further fortifications at Guam and the Philipines. The Secretary indulged in no predictions, but his mention of the naval ratio attracted wide notice, especially at the Capitol—coming as it did on the heels of action by the Senate Naval Committee for authorization of a bigger Navy. Insists on Policy. Standing firmly, as he has in the past, on the doctrine of an “open door” in China and chal- lenging Japan's position for re- vision of the nine-power pact, Sec- retary Stimson defined this Gov- ernment’s policy in a detailed open letter to Senator Borah. The communication was taken at once to represent the stand that will | be taken when the time comes for winding up the Sino-Japanese dispute. In effect, the communication—while not addressed to Japan as has been the practice with similar statements of the past few months—put that country on notice that she is in China in violation of treaties and this Government is not | going to recognize any settlements | growing out of her action. | In one high quarter it was regarded as aimed to mobilize public opinion be- hind the treaties governing relations in | the Orient. | Addressed to Borah. | The letter was addressed to Borah upon receipt of inquiries from him as chairman of the Foreign Relations Committee. He declined to comment | on it today, but had it inserted in the | Congressional Record. It was not read | to the Senate. In his letter, Secretary Stimson re- minded that the nine-power pact was but one of several agreements entered into at the time, called these interre-| lated and said none can be disregarded | “without disturbing the general under- | standing and equilibrium which were intended to be accomplished and ef-. fected by the group of agreements ar- rived at in their entirety.” | By one arrangement reached then, this country surrendered its then com- | TREATY TANGLES | door policy toward China. Battle Casualties In Shanghai Area Are 2,200 in 4 Days By the Associated Press. SHANGHAI February = 24— Gen, Tsai Ting Kai, commander of the Chinese 19th Route Army, announced today that the Chi- nese casualties during the last four days amounted to 1,700 killed and wounded. Since the outbreak of hostilities in the Shanghai area on January 28, he said, 2.200 Chinese soldiers had been killed or_wounded. The Japanese military au- thorities announced that 500 of their soldiers have been killed or wounded in the last four days. They refused to say, however, what proportion of these were slain. In addition to the military personnel who have been shot down, Gen. Tsai said that 5.500 Chinese civillans have been killed by the Japanese since the beginning of operations here. SEENBY STINSN Secretary Says Change in Nine-Power Pact Would Re- quire Alteration of Others. BY CONSTANTINE BROWN. Secretary Henry L. Stimson made it known today to the signatories of the three treaties signed in Washington in 1922—the nine-power pact, the four- power pact and the naval pact—that these are so closely interrelated that the abolition of any one of them would necessarily involve the reconsideration of the others. This point of view of the American Government, was expressed by the Sec- retary of State in a letter addressed to Chairman Borah of the Senate Foreign Relations Committee and follows closely the favorable action on the authoriza- tion bill for treaty strength for naval constructions and replacements by the Senate's Naval Committee yesterday. Secretary Stimson’s letter can also be considered as America's reply to the point of view regarding the nine-power pact es set forth yesterday by the Jap- anese foreign minister, Kenkishi Yosi- izawa, who stated in a note sent to the League of Nations that “the time has inevitably come when realities rather than fiction must be reckoned with. * « * Japan has enormous interests in China and it is impossible to longer treat the chaos in China as if it were order.” This statement comes on top >f another statement made by the offi- cial spokesman of the Japanese foreign office, who some five weeks ago sald “the time has arrived when we must consider the revision of the nine-power pact, which has become obsolete now.” Holds Different View. The American Secretary of State | holds, however, an entirely different view on this matter. “This treaty,” he writes to Mr. Borah, “forms the legal | basis upon which now rests the open | This poliey, enunciated by John Hay in 1899, brought to an end the struggle among various powers for so-called spheres of interest in China which was threatening the dismemberment of that empire.” This policy of John Hay worked sat- isfactorily, although it rested upon the commitments thus made by the vari- ous powers. This policy was crystal- lized into the so-called nine-power treaty in the Winter of 1921-2, a treaty which was signed by all the principal powers which had interests on the manding lead in battleship construction and promised not to fortify further its positions at Guam and in the Philip- | Pacific At the time when the nine-power pines. As Stimson put it, this was predi- | pact was signed by the United States, cated partially upon the assurance by | Great Britain, Japan, France, Italy, the powers of equal opportunity for | Portugal, the Netherlands, Belgium and Eastern trade and also “against mili-| China, two more treaties were signed tary aggrandizement of any other| power at the expense of China™ Other Promises Cited. | Thereupon Stimson warned the pos- sibility of modifying or abrogating the nine-power treaty cannot be discussed “without considerating at the same time the other promises upon which they | were really dependent.” | As to present hostilities in the Orient, the Secretary of State said (Continued on Page 3, Column 6.) JAPAN Death of Lieut. Short in “Displeased” Tokio’s Consul General in Shanghai. By Radio to The Star SHANGHAI, February 24.—Japarese| Consul General Murai announced to- | ESE PLAi\I TOPROTEST TO U. S.}‘ AGAINST AMERICAN AIR PILOTS : by the leading powers in Washington. One was the naval treaty whereby the | United States agreed to scrap a large number of battleships either recently put into service or nearing completion against mostly projected battleships of other nations, and the other was the four-power pact between the United States, Great Britain, Japan and, China, assuring each other to respect | the territorial integrity and non-aggres- | sion. The United States, in order to| " (Continued on Page 3, Column 5.) Plane Battle Said to Have to the flyer's mother, thanking her for the service rendered by her son to the | Chinese _cause. | At Chinese headquarters at Chenju night that he was considering 5ending | today the correspondent in a conver- a note to Edwin S. Cunningham, the| sation with Cheng Wei-Chung, Chinese American__consul general, requesting| Wing commander, was informed that that the United States “take appropri- | the plane flown by Lieut. Shcrt was ate action to prohibd American citi- | equipped with two machine guns, one zens from participating in Chinese com- | of them mounted on the body and the bat against Japanese airplanes in the|other firing through the propellor. future.” Lieut Short had no tracer bullets, so | A spokesman for the Japanese consu- | that he was combating Japanese late said that Consul General Murai|planes at a great disadvantage. and other Japanese officials in Shang-| E. B. Haines, American representa- hai were “shocked and surprised” to|tive of the United Alrcraft Cor- learn that the Boeing pursuit plane shot | poration, makers of the Boeing plane down Monday by the Japanese at|purchased by the Chinese government Soochow was piloted by Lieut. Robert Short, an American aviator from Seat- and flown by Lieut. Short, discredits iu report that the American flyer was tle, who wes & second lieutenant in the | attacked and was unable to escape United States Army Air Corps Reserve. | from an unwanted combat. “The Japanese community here is| “The Boeing pursuit plane was cap- displeased to discover that the nation- | able of a speed of 200 miles an hour als of a friendly power are engaging in hostilities against the Japanese,” the eonsulate’s spokesman added. . ‘The Shanghai office of T. V. Soong, Chinese minister of finance tonight officially confirmed the news that Lieut Short was the pilot of the wrecked plane. Soong announced that he will send a cablegram of condolence | plane if short had chosen to flee,” Mr. | Haines said. The Le Gale Co., local Boeing dis- tributors, stated today that there were no more Boeings in China and that no and could have eluded any Japanese | Warns Neutrals to Get Out of Danger Zone. CHINA PREPARES TO FIRE ON SHIPS Believe Attack Is Planned on Base on Whangpoo. By the Associated Press. SHANGHAI (Thursday), Febru- ary 25.—Mayor Wu Teh-Chen served warning on the neutral authorities today that it would b2 dange-ous to anchor vessels in the Whangpoo near the Japanese military base, and his warning was interpreted as an indication that Chinese artillery would be trained on the sector where the Japanese flagship Idzumo is| moored. This veiled threat was in the form of a new protest to the for- eign consular officials against the use of the Hongkew sector of the Settlement as a Japanese base The mayor reiterated previous warnings that the Chinese govern- ment would not be responsible for any damage to foreign property caused by operations against the Tapanese on that front. Flagship Is Base. “I request you,” the mayor wrote, “to notify your naval and other authorities not to anchor their ships near the base of op- erations of the Japanese military.” Mayor Wu pointed out that the Idzumo was anchored in the river “under the protection of the settle- ment” and asserted that “from that ship are issued orders directing the attack on Chinese troops.” This development came at a time when the Japanese, beaten off in suc- cessive attacks on Kiangwan, had con- fessed their failure at that point and shifted their offensive to the Chapel front where artillery, which had been out o! action for several days, was blaz- ing late last night. Urges Rapid Evacuation. Mayor Wu also asked the foreign authorities to advise their citizens to get out of the battle area as quickly as possible and to evacuate all places close to points in Hongkew where Japanese troops are concentrated. “No effective measures have been taken,” he said, “to prevent the Jap- anese from violating the neutrality of the International Settlement and from generally endangering the lives and property of both foreign and Chinese citizens, although the settlement au- thorities have expressed a desire to maintain that neutrality.” The mayor left it at that, but ob- servers reading between the lines in- ferred that the Chinese were ready for an attack on Hongkew before Japanese reinforcements reported on the way from Tokio could arrive. Gen Uyeda's Japanese Army made another drive against the Chinese at Kiangwan today, and when it failed to Japanese attack was suddenly shifted to the Chapei front this afternoon. Observers said tonight they believed the Japanese had virtually assumed a defensive attitude and were waiting for anticipated reinforcements from Japan Outbursts of machine gun and artillery fire continued, but there was no sus- tained action during the latter part of the day. A landing force from the Japanese warships in the river opened the at- tack along the northern section of the battered Chapei sector and severe fight- ing followed throughout the afternoon. Heavy Air Bombardment. The thrust against Kiangwan, where the Chinese have been immovable for four days, was preceded by a heavy bombardment from the air. The blasts of the huge aerial bombs shook the entire countryside, but they failed to ut the Chinese, who continued to veep the enemy with rifie and ma- chine-gun fire. Two Chinese airplanes attempted to bomb the Japanese headquarters at Kiangwan and missed their target by only 100 feet. ‘The Japanese air attack on the cen- tral stronghold of the 16-mile Chapei- Woosung front was followed by a driv- ing ground attack. The assault was covered by Japanese batteries on the Kiangwan golf course, but it ended with no gain Eight Giant Planes Used. | Eight giant bombing planes delivered | the air attack on Kiangwan. They used 250-pound bombs. The raid lasted less than a half hour and caused considerable damage to the Chinese positions even though it failed to budge the defenders. Reports were circulated through the city today that Japanese reinforce- ments had already arrived at Woosung, |on the northern end of the battle front; but there was no sign of any additional soldiers there at noon. Gen. Uyeda, Japanese commander, said that he expected reinforcements, but he re- fused to say how many. Japanese officials said two additional army divisions would sail from Japan in the near future. These two divi- slnxgs would comprise 22,000 men, they said. Authorities of the international set- tlement began wholesale vaccination today to prevent a possible epidemic of smallpox as a result of the inflow of budge the Chinese the center of the| 'DANGER, SAYS STIMSON | ROOSEVELT OUSTS TREASURY SHORT, Dorothy Bayliss Bec ‘Washington’s first international mar- | officer in the Argentine Navy. tract of marriage with Lieut. Oscar J. | Rumbo. 26, who is assigned to subma- rine duty in Buenos Aires and could | not be present at the ceremony here. The bride is said to have met Lieut. Rumbo while he was making a study of submarines at the Washington Navy | Yard early in 1931. Miss Bayliss could not be reached at her home, but it was | said she expects to sail for Buenos | Aires Friday. | Miss Bayliss secured a marriage ! CAPITAL GIRL WED BY PROXY TO BRAZILIAN NAVAL OFFICER omes Bride of South American Under Little-Used Com- mon Law Procedure. license from the District Supreme Court mony, but when he learned the mar- to consider it and investigate the legal phases. In the meantime, however, Lieut. Rumbo secured by cable advice from a New York attorney that marriages by xy were legal under the common law in the District of Columbia. Attorneys in Washington were consulted, and they confirmed this cpinion. On October 30, Lieut. Rumbo started legal proceedings in Buenos Aires to " (Continued on Page 2, Column 8.) U.S. BUILDING HERE. (T T0 15000000 Apex and State Department Projects Left Out of House Bill. Appropriation of $15,000,000 for the Pederal building program in the Na- tional Capital and $93,000,000 for the; rest of the country is recommended in the report filed in the House today by | Chairman Byrns of the House Appro- | priations Committee in reporting the Treasury-Post Office appropriation bill. Specific limitations in the bill pro- hibit use of any of the appropriation for remodeling the old State Depart- ment Building or for beginning work on the so-called Apex Building in the Mall Triangle, which will probably be as- s}gned to the Federal Trade Commis- sion. Explains Increases. In explaining the recommended ap- propriation for public buildings, Repre- sentative Byrns said “The total amount recommended for | the Supervising Architect’s Office and for the construction, maintenance, re- pair, operation and equipment of pub- lic buildings is $133,406,930, & gross in- crease over the appropriations for pres- | ent vear of $25991,000 and a decrease under the budget recommendations of | $12,785 840, [ “The appropriations for mechanical equipment of buildings, vaults and | safes, operating force for buildings, fur- | niture for buildings, and operating sup- | plies all show substantial increases over | 1932 due entirely to new buildings an- ticipated to be placed in commission during the next fiscal year. The esti- mates were based upon the completion of 133 new buildings during the year, a number which it now appears is likely to be a minimum and very probably will be_exceeded. | “A decrease of $1469,780 under 1932 is shown in the items for special pl’DJ-; ects such as the new vault for the Treasury Department and other spe- cial items of a nonrecurring character. | A decrcase of $5,000000 is likewise shown on account of purchase of prop- erty in Washington as sites for new public buildings, no item of a_corre- sponding character being requested for 1933. Decreases are also found under 1932 in the amounts for _temporary rentals, minor remodeling of buildings, and repairs and preservation, in the | ln}:rl lwo] o; which the reduction re- sults largely from the occupancy of new | buildings. = “The appropriation proposed for sites and construction of public buildings is (Continued on age 2, Column 4.) ANITA GREW TO WE[J IN TURKEY TOMORROW | | B7 the Associatea Prea. | | ISTANBUL, Turkey, February 24.— { The T ivil marriage of Anita. { daughter of United States Ambassador Joseph C. Grew, to Robert English will take place tomorrow at the Istanbul City Hall and the religious ceremony and a reception will be held at the em- | thousands of Chinese refugees from | others h‘dz been sold to the Chinese | government. I (Copyright, ) Hongkew, Chapel an dother districts, It is estimated that 20,000 refugees | were vaccinated during the day. bassy Saturday. | Josephine Radio Pro&; on Page C-3| 0., SCHOL TS HELD .. MENACE N. E. A. Head Warns Con- | gress Action Here Will Set Precedent. Congress was warned today that whatever retrenchments it forces upon District of Columbia schools might en- | danger education at large in the United States when Miss Florence Hale, presi- dent of the National Education Associa- tion, addressed the sixth general session of the association’s department of superintendence in Constitution Hall. In a later session this afternoon Dr A. M. Weaver, superintendent of Wil- Uamsport, Pa., schools, characterized unemployment as a disease which edu- cators must help to cure. Dr. Weaver addressed the department of vocational guidance at the Carlton Hotel. Fears Setting of Precedent. Miss Hale's warning to Congress was contained in her speech on “The In- tangibles of Education”—such supjects as music and art, Pointing out that the House subcom- mittee members’ suggestion is not orig- inal, since it has been made in some communities, Miss Hale said: “When such an idea goes out from the National Capital, it becomes a rather serious matter. So we are con- (Continued on Page 4, Column 1.) "FIFI"WIDEN.ER HOLDEN IN RENO TO FILE SUIT Says Probably Will Be Charged Following Separation of Year. By the Assoclated Press RENO, Nev, February 24.—Mrs. “Fifi” Widener Holden, daughter of Joseph E. Widener, wealthy Philadelphia sportsman, said today she plans to file suit for divorce from Mil- ton W. Holden after completing the re- quired six weeks residence here. She arrived in Reno Monday. “I shall probably charge incompati- bility,” she said. Holden is reported to be on a yacht- Incompatability | ing trip with Vincent Astor. The Hold- ens separated more than a year ago. They married in 1926, shortly after the bride was divorced from Carter R. Leidy, member of an old Philadelphia family. She and Leidy eloped in 1920, when she was 17, arfd were married at Knoxville, Tenn. VOLCANO ON RAMPAGE Asama Fires Forests in Japan in Third Eruption in Manth. ‘TOKIO, February 24 (#)—The vol- cano Asa near Karuizawa, Northe west of Tokio, went into violent erup- tion this 1sning, for the third time this month, scattering ashes and stones over & wide area, setting fire to nearby forests, and damaging & few houses in the nearby villages. ERMANY ACGEPT DRAFT CONVENTION One of Most Stubborn Con- flicts of Disarmament Is Removed by Plan. riage by proxy was performed here last | last October 14. She requested the Rev. | night, when Miss Dorothy Bayliss, 24, | Hugh T. Stevenson, pastor of Bethany | of 3100 R street, became the bride of an | Baptist Church, to perform the cere- | BY the Associated Press. GENEVA, Switzerland, February 24.— Miss Bayliss entered into a civil con- | riage was to be by proxy he asked time | Germany today accepted the draft con- | vention of the preliminary Disarma- | ment Commission as the general frame- work for discussions of the world Dis- armament Conference, thus postponing one of the most stubborn conflicts which confronted the delegates. The American, British, French and Italian delegates proposed adoption of the draft convention as the general frame-work of discussions, with the | provision that all other proposals should | be discussed as amendments. Arthur Henderson of Great Britain, president of the World Disarmament Conference, today addressed an elo- | quent appeal to the assembled delegates | in behalf of the children of the world, who, he said, always are the victims of war. | President Henderson’s address marked the closing of the general discussions at the conference. It held a note of hope- fulness. Millions Were Sacrificed. Many millions of children were sacri- ficed behind the lines in the World War, he said, to tuberculosis, rickets and other diseases which ruthlessly destroy- ed a rising generation. “War will inevitably always outrage |and destroy the children,” Henderson declared, quoting John Galsworthy, | noted British novelist and playwright. The debate just ended, Mr. Henderson | said, revealed both the formidable na- ture of the task before the conference and a common desire to achieve success which gave rise to some degree of con- fidence. The speeches by 50 delegates, | he said, disclosed a great variety of | plans favored by the various govern- | ments, but he regarded this as quite | natural in view of the varied political | and geographical conditions of the par- | ticipating countries. Seeking to Prevent War. “The telegraphic reports from the Far | East,” he said, “show us the magnitude of the work before us and the terrible- ness of the war we are seeking to pre- vent. “The debate has shown no funda- | mental objections to the draft conven- | tion, however disliked it may be by | some. The principle of limitation of | "(Continued on Page 2, Column 8) :CAMPBELL M.AY TRY | FOR NEW MARK TODAY | Speed Car Ordered to Beach in Prospect of Proper Conditions at Ebb Tide. By the Assoclated Press. | DAYTONA BEACH, Fla, February 24~ Sir Malcolm Campbell of England instructed his mechanics to tow his 12- cylinder racing car onio the Ocean Speedway today for a possible attempt to break his own world’s automobile speed record at low tide. Ebb tide was forecast for about 3:30 pm. (Eastern standard time). The British_driver arranged for his car to be on the course some time in advance of that hour, however. Beach condi- tions were much improved. Before going to the beach, Campbell said he did not believe the course and wind would be suitable for attaining record ;fleed. but if they were he would start trials between 2:30 and 3 o'clock. In any event, he said, he prob- ably would make a practice run at least to give his car a thorough test. GREW IS CONFIRMED Name Goes to White House as Ambassador to Japan. The Senate today waived its rules and sent to the White House the confirma- | tion of Joseph C. Grew to be Ambassa- dor to Japan. | Grew, now Ambassador to Turkey, will succeed W. Cameron Forbes at Tokio within a few weeks, Action on the appointment was taken today on motion of Chairman Borah of the Foreign Relations Committee, who brought up the matter out of order so Grew might receive his commission without gelay. The nomination was confirms week, SHERFF FARLEY TAMMANY LEAER $390,000 Deposits in “Won- derful Tin Box” Lead to Official’s Removal. GOVERNOR DISSATISFIED WITH HIS EXPLANATION Removal Seen as Challenge to Ma- chine to Oppose Presidential Nomination, By the Associated Press. ALBANY, N. Y, Franklin D. Roosevelt, Democratic Gov- ernor of New York, today removed from office Sheriff Thomas M. Farley, dis- trict leader of Tammany Hall's keystone unit. The governor said he was not satis- fled with Farley's explanation of his in- come and it was mainly on this ground he removed him. The income, as charged by Samuel Seabury, counsel to the Legislative Committee investigating New York City’s administration, related primarily to Farley’s “wonderful tin box" in which the big Sheriff deposited $390,000 over a period of a few years. Challenge to Tammany. The removal of the Tammany Hall man was construed by some to mean Gov. Roosevelt had thrown down a gauntlet to Tammany, challenging it to oppose his candidacy for the Demo- cratic presidential nomination at next June's national convention. Others, however, believed the Governor’s ac- tion had no political significance and his dismissal of Farley was an action entirely against the sheriff and had no connection with his feelings toward Tammany Hall. The Hall had been expected by some political observers to retaliate for the removal by throwing its strength to some anti-Roosevelt unit. Parley, on his part, said he would give his support to Roosevelt's candidacy re- gardless of what action the Governor might take in his case —if the Tammany Hall organization itself turned its con- vention support to Rosevelt. Although he did not base his removal order on Farley's personal appropriation of interest on funds of litigants, the Governor criticized this “highly im- proper practice” which had been “long continued.” Governor Gives Reasons. In specifically citing his reason for removing Farley on the unexplained income charge, the Governor turned baek to a statement made by the ex- ecutive in the hearing given Farley. He sald: “As a matter of general sound pub- lic policy, I am very certain there is a_requirement that, where a public official is under inquiry or investiga- tion, especially an elected public offi- cial, and it appears that his scale of living or the total of his bank deposits far exceeds the public salary which he is known to receive, he, the elected public official, owes a positive public duty to the community to give a rea- | somable or creditable explanation of the sources of the deposits, or the source which enables him to main- tain a scale of living beyond the amount of his salary, “While this rule may seem to be an enlargement of any previous ruling by a Governor of this State, it is time, I believe, that the standard of the con- duct of public officers be put cn a plane of personal as well as official hon- esty, and that, therefore, there is a positive duty on the part of the public official to explain matters which arise on an inquiry which involves the ex- penditure or the depositing of large sums of money.” Had Inexhaustible Funds. Gov. Roosevelt’s action followed a series of startling revelations, the most amazing of which dealt with the Tam- from which he apparently was able to draw on an inexhaustible supply of money. Farley has long been a power in Tammany, but national notice first came to him when he was made one of the targets of Samuel Seabury's verbal fire in the Hofstadter Legisia-~ tive Committee’s inquiry into alleged corruption in New York City affairs Under examination by Seabury, who is chief counsel to the committee, Farley testified in New York last Oc- tober 6 that he had deposited $362.500 in various banks between 1925 and 1930, although his highest salary dur- ing that period was $15,000. He explained some of the deposits, saying they were redeposits of the same (Continued on Page 5, Column 2.) February 24— | many chieftain’s possession of a tin box | ARLINETON COUNTY BLLS €0 UXPHID | General Assembly Empowers | Managers to Borrow Funds Immediately. 'TREASURER BALL SILENT | PENDING AUDIT OF BOOKS Oniy $11,000 Remains to Credit of Board—Inquiry Started by Stite. By a Staff Correspondent of The Star. ARLINGTON COUNTY COURT HOUSE, Va, February 24.—Arlington County was “broke” today with less | than $11,000 to its credit as a result | of an unexplained shortage of approx- ‘lmately $225,000 reported in the ace | counts of E. Wade Ball, veteran county | treasurer. | The Virginia House of Delegates, in- | formed of the critical financial situa- tion in Arlington County, today passed | the Senate bill permitting the Board of County Managers to borrow imme= 1dmely a sufficient sum of money to | carry on necessary county functions. Reid Offers Bill The action was taken upon motion of Delegate Hugh Reid of Arlington County, who moved that the bill be taken up out of order because of the | existing emergency. In the meantime; two accountants from the office of T. Coleman Andrews, Virginia State auditor in Richmon acting on orders of Gov. John Garlan Pollard came to the Arlington County Court House and took over Ball's books for a complete audit. Ball is remain- ing on the job, but refuses to make any sba:iemem pending completion of the audit. Discovery of the lack of funds has made it impossible for the Board of County Commissioners to honor approximately $20,000 in warrants drawn last week for county expenses during February, $17,000 in interest on water bonds and coupons due February 1, or to pay other outstanding indebtedness. Shortage Discovered. | The reported shortage in Ball's ac- | count was discovered February 17 when | the Board of County Commissioners was | advised that $12,000 of the county | school bonds and $10,000 of bond cou= pons due February 1 had not been paid. Two telegraphic demands, both con- firmed by letter, had been made of Ball by a Cincinnati bank for the $22,000 payment, according to Harry Fellows, chairman of the board, but no response was received from the treasurer. An investigation then was started, Fellows said, and it was learned from the Chase National Bank of New York and the Arlington Trust Co., paying agents, that the county funds on deposit were insufficient to make the $22,000 payment. The books of the county treasurer, however, it was said, showed a balance of $94,000, so the Board of Commis- sioners employed the auditing firm of | James Stuart Ball of Washington to | make an audit. The alleged discrep~ |ancy was uncovered by this audit. In General County Fund. The entire shortage, according to county officials, exists in the general county fund. The amount includes $46,000 for the retirement of notes, it was said, and $90.000 in the county school fund. Of this fund, less than $11,000 remains in seven banks, four in Alexandria, Va, and three in Ar- lington County. The financial interest of the county, | however, is protected by a bond of the | Fidelity & Deposit Co. of Baltimore, Md. Action against Ball, county offi- | cials said, will depend largely upon the bonding company. Commonwealth'’s Attorney Lawrence Douglas of Arling- ton County sald the bonding company | had expressed a willingness to make good any shortage. County officials pointed out. how= (Continued on Page 2, Column 1.) LLOYD GEORGE UPHELD High Court Excuses His Failure to Report Expenses. LONDON, February 24 (#).—David |Lloyd George, -veteran Liberal leader, will be able to take his seat in Parli ment without fear of consequences be. cause of failure to comply with the law in reporting his expenses in the last election, the high court decided today. The judge said he was satisfled the omission came about through the vet- eran leader's illness which followed im= mediately after the election. Due to Tax tablished to prevent gasoline from the District to Virginia, where the tax is 5 cents a gallon in- stead of 2 cents as in Washington, it was indicated today in dispatches from Richmond. ‘The problem has been taken under consideration by Gov. Pollard and the Virginia State motor vehicle division. Legislative action may be demanded. Meanwhile a study of the situation has been instituted. Paul E. Hadlick of the American Petroleum Institute was the first to suggest the need of a patrol between the District and Virginia. He said a | $100,000 oil company in Washington | could make $1,000000 by unlawful operation in Virginia. He pointed to laws enacted by Pennsylvania and other States which lost revenue by gasoline smugeling. Under tentative plans, every road leading from Washington to Virginia ‘would be patroled and suspicious trucks A 24-hour border patrol may be es- | wharves on the Potomac River. bootlegging of | proposed law probably would contain GASOLINE SMUGGLING PATROL PROPOSED ON VIRGINIA BORDER State Seeks to Prevent Bootlegging of Washington Fuel Differential. ‘The provisions for the criminal prosecution of the smugglers. As another means of coping with the problem, a receipts tax instead of a sales tax was proposed at a conference attended recently by Gov. Pollard, T. McCall Frazier, director of the State Motor Vehicles Division and representa- tives of several gasoline distributing companies. Under this plan, the State tax would be collected direct from the distributing companies. Frazier said the’ receipts tax would be an improvement over the sresent sales tax because the burden of px>vin; a violation of the present law, in itsel g:ghly difficult, now rests with the ate. “Suppose, for example,” he said, “a distributing company reports that it has shipped 10,000 gallons of gas to certain dealers. If, later on, the dealers report sales of only 5,000 gallons, then would be inspected. Particular atten- tion also would be paid to remote | we have to prove they sold more to get the gull amount of the tax arc cn- il w.” ’ 5 e