Evening Star Newspaper, February 29, 1932, Page 2

MRS. MLEAN GETS MOTHER'S FORTUNE Estranged Wife of Publisher Chief Beneficiary in Will of Mrs. T. F. Walsh. Mrs. Evalyn Walsh McLean, estranged wife of Edward Beale McLean, Wash- ington _publisher, is named as chief beneficiary of the estate of her mother, Mrs. Carrie B. Walsh, widow of Thomas F. Walsh, millionaire Colorado mining king. The will of Mrs. Walsh, who died last week, was filed for probate today by Attorney Wilton J. Lambert, who is named as co-executor with Mrs. McLean of the estate. The value of ti: estate will not be disclosed until a pstition for probate is filed. The document was executed June 22, 1928, and modified by a codicil of No- vember, 1928. It gives her personal effects to her daughter and provides legacies of $1,000 to Mrs. John Allen Dougherty and a nephew, Monroe Lee of Hollywood, Calif. Miss Virginia Mott of Leesburg, Va., is to have $600 and Miss Lillian Whiting of Boston $200. The remaining estate is left to Mrs. McLean with the request that she pros vide certain life annuities. Frances Osborne, Coronado Beach, is to receive an income of $150 a month: Jennie Krusemark of Los Angeles $100 a month and Mrs. Aiice Campbell of Denver $50 per month. By the codicil, Mrs. Dough- erty is to have an annuity of $150 per month in addition to the $1,000 bequest under the will. MEMBERS CLASH IN HOOVER-GARNER SENATE DEBATE (Continued From First Page.) were far beyond their value, adminis- tration spokesmen rushed into the press and said there was no occasion for stock market collapsed, these same prophets told the world and the country that nothing was wrong with business, that the country was sound.” ‘Connally then quoted optimistic state- ments during the next few months by President Hoover and his advisors, in- cluding Dr. Julius Klein of the Com- merce Department, who, he said, “draws his salary from the Government, but gives his services to the Republican National Committee.” “Is this an example of their far-see- ing vision of the conditions?” Connally asked. “Where was the warning? Where was the danger signal from the administration?” Reads 1930 Statement. The Senator read President Hoover's statement in March, 1930, that the cri- sis would be over in 60 days and said: “If anybody in Ameyica know what those conditions were, it ought to have been the President.” Senator Brookhart, Republican Inde- pendent from Iowa, interrupted to say that he agreed with much of what Con- nally said, but wanted to know what the Democrats would do if they were in power. “If the Democratic party doesn't fol- low its leader any better than the. Sen- ator from Iowa follews- his leader, it won't get anywhere,” replied Connally, adding that he was sure there would be more co-ordination from his party. Brookhart then attem] to tion Connally on Garner's “stand” on m‘er. unemployment relief and pro- ition. Connally said he was only speaking for himself. Then, turning to Brook- hart, he said: “He only wears the Republican label in name. He agrees with what I am saying, but is afraid to stand for any- thing that bears the Democratic label.” Tydings Takes Hand. “I'm only afraid of jumping from the frying pan into the fire,” Brook- hart replied. “I grant the Senator s in one or the other most of the time,” Connally re- turned. Referring to some Republican speeches, Connally said that on Lincoln's birthday anniversary Mr. Hoover was idealized as symbolical of the martyred President and on the anniversary of Valley Forge he was pictured as a second George ‘Washington. Senator Tydings, Democrat, of Mary- land interrupted to say: “1 would like to remind the Senator that it is getting very close to Easter.” Meanwhile, Representative Warren of North Carolina said in a statement it was a ‘plece of unmitigated gall for Secretary Hyde to upbraid the Demo- crat House” for passing the $132,500.- 000 emergency road bill to give people jobs when the Republican party “sat impotent and suggested nothing.” ‘Warren led the fight Saturday for the legislation when it was passed and sent to the Senate with bi-partisan support. The Secretary of Agriculture yesterday attacked the action of the Democrats sponsoring the bill, charging the legis- lation was railroaded through and said 1t would add to the Treasury's deficit. Cites Democratic Help. “Secretary Hyde speaks of the def- icit,” Warren said, “and I remind him that all of it was created under the present administration, and it re- mained for the Democratic House to endeavor to balance the budget when the administration refused to even at- tempt it." In his statement yesterday, Moses as- serted that while the Democratic_head man in the House was blaming Presi- dent Hoover for starting a panic, he should have piled upon the Chief Ex- ecutive responsibility for the rest of the world’s ills. “Doubtless,” he observed, “these and other charges against Mr. Hoover will be formulated by the Speaker as he ad- vances in his campaign for the presi- dency and as soon as he determines the more pressing question whether he is | funning as a wet or dry.” Garner quickly issued a reply. Ap- parently, he said, Moses had given about as much thought to his utterance | as he did before making the now famous | remark about the “sons of the wild Jackass.” Amusing, He Says. “In fact, the Senator's statement will be. as usual, quite amusing to the re- onary element in the Republican party.” he said Looking outside Washington, political observers noted the voung tempest un- leashed in New York State by Samuel Seabury’s attack on Tammany and eriticism of Gov. Roosevell. Into it have been read presidentiai or vice presidential intentions on the part of the New York graft-charge investigator. Democratic leaders saw further ag- gravation of their pre-convention situa- tion in Seabury’s Cincinnati attack on ‘Tammany with its implied criticism of Gov. Roosevelt, and Alfred E. Smith's renewed demand for a State’s right plank on prohibition. Gov. Roosevelt, who wiil fight it out with Smith in the first presidentiel primary March & in New Hampshire, is described a. viewing Seabury's criti- cism as “uriair.” While the Governor nimself declined to comment, a close friend interpreted him as feeling that he should not participate in a “political issue in one of the cities of the State” since he was charged with the duty of presiding as chief magistrate in the proceedings leading to the removal of Sheriff Thomas M. Parley, Tammany Hall district leader. Down in Alabama a movement was started to elect an unpledged delega- tion to the national convention in place of a straight pro-Roosevelt slate. Its backers disclaimed any intention to “stop” Rcosevelt, but made no mention of supporting any other candidate. merely a free hand. Local ’ “~—— THE EVENING STAR, WASHINGTON MONDAY, FEBRUARY Yeggs Cut Wall Into Bank Above: Hole cut through the wall of the Washington savings®Bank by yegg- men who looted the safety deposit vaults. Below: Cardboard with peep-hole set up in typewriter show room, behind which sat a confederate of the yeggs. ready to signal them by a buzzer system if any one entered the bank. Albert Burton, assistant manager of the typewriter agency, is shown in the photographs. DR. ABERNETHY OPENS SERIES OF SERVICES Lent Should Be Period of Self- Examination as Well ag Self- Denial, He Says. Lent should be bbserved as a period of self-examination as well as self- denial, Dr. W. 8. Abernethy, pastor of Calvary Baptist Church, declared today at the first of a series of Lenten serv- ices in the New York Avenue Presby- terian Church, under the auspices of the Washington Federation of Churches. Dr. Abernethy urged the members of | the congregation to examine them- | selves in the light of what Jesus said | in the Sermon on the Mount. He said each individual should consider his goals in life, the progress he had made and what remained to be accomplished. The minister said there should be widespread observance of Lent. He| characterized self-denial as providing | excellent discipline for the individual. | Dr. Abernethy will conduct services again tomorrow at noon. | | Ten Die in Fire in Sweden. COPENHAGEN, Denmark, February 20 (). —Nine inmates and one boy employe were suffocated today in a fire at a home for the aged at Svaerdsjoe. | Sweden. The inmates were sleeping on } the third floor of the institution when | the fire was discovered. | politics apparently had a bearing on the development. A Montana authority, J. Bruce Kramer, national committeeman, de- livered his opinion in New York that the Par Western States would be virtu- ally solid for Gov. Roosevelt. Senator Moses, in his statement, again predicted Mr. Hoover's renomination | and re-election “Recalling the vigor with which| Speaker Garner once commented upon | the action of the Supreme Court in the | estate tax case,” he said, “I marvel at | the moderation with which Mr. Garner | has ncw begun his formal campaign for | the presidency with the single and sim- | ple assertion that President Hoover | brought on a panic. | Expects Other Charges. “In order to run true to form, the Speaker should have added the charge that the President brought on the World War, loaned billions to Europe during a Democratic administration, | directed riotous expenditures for arma- | ments in foreign countries, brought about the unbalanced budgets of other governments, made added loans in Latin America, is responsible for bolshevism in Russia, engineered the 18 revolutions | in as many countries, caused the panic in Germany and the economic collapse in Central Europe, forced England off | the gold standard, fomented the Sino- | Japanese rcw, created the drought and is responsible for the overproduction of coffee in Brazil, copper in Africa, sugar in Cuba, rubber in India, cotton in the | South and wheat in Canada, Australia | and the Argentine. | “Doubtless these and other charges| against Mr. Hoover will be formulated | by the Speaker as he advances in his campaign for the presidency and as| soon as he determines the more press- | ing question whether he is running as wet or dry. “In about eight months from now | Speaker Garner will be able to formu- | late another charge against the Presi- dent, namely, that Mr. Hoover has re- tained the confidence of the American people and has brought about his own re-election.” " —Star Staff Photos. YEGGMEN CUT WAY INTO BANK, LOOT 50 STRONG BOXES (Continued From First Page.) torch and went to work on the door of the vault. After burning through the large bolts and swinging the door open, they found a barred door. This is believed to have been left unlocked, as no marks of its having been forced were found. The vault contains 266 boxes in all, but the yeggs burned open only about 50 of them. They spurned the contents of some.of the boxes, leaving bonds, coins and jewelry scattered about the floor. ‘The buzzer was still hooked up when the police, led by Capt. Willlam E. Holmes, first precinct commander, ar- rived, and on the floor beside the chair used by the lookout man was a cigar butt—indicating, police pointed out, that he had done a bit of smoking while his companions were at work in the basement. In the safe deposit room, headquar- ters men, working under the supervision of Capt. Bernard Thompson, associate chief of detectives, found the acetylene torch, in addition to a suit case in which the robbers apparently had car- ried some of their equipment. The oilcloth—brand-new and of a bright green—still covered the windows and doors, and old coats and other pleces of clothing were strewn about the floor. In the vault, the investi~ gators found watches, coins, bonds and other valuables scattered here there. had been torn in half. Examination Fruitless. Detective Sergt. Fred Sandberg, fin- gerprint expert, made a thorough ex- amination of everything thought to have been touched by the yeggs. but his work was fruitless. The robbers evi- dently wore gloves, for a cheap pair, of the type worn by laborers, was found in the vault by Detective Sergt. Larry O'Dea. All the equipment left by the thieves, including a saw picked up in the type- writer store by Detective Sergt. John Wise, was taken to headquarters in the hope some of it might prove traceable. Holders of the boxes were notified of the robbery by R. J. Earnshaw, treas urer. Mr." Jarrell said, however, that boxholders would be required to give reasonable proof of the amount of their losses before settlements would be made. At a late hour this afternoon about a dozen boxholders had called at the bank, but none had suffered any loss, according to Jarrell. Most of them found their boxes had not been en- tered, Jarrell said, but the few whose boxes had been opened reported their property was still intact. Valuables Lefi Intact. One man, Jarrell said, told him the yeggs had passed up three diamond rings contained in his box. Other box- holders also reported jeweiry and other valuables had not been taken. This, apt. Thompson pointed out, indicated the robbers were interested only in money. Efforts were being made late today to communicate with the other box- holders, but Jarrell said this check-up probably would not be completed be- fore some time tomorrow. Mr. Earnshaw gave the detectives a description of & man who visited the bank recently. and asked to see the safe deposit vault, explaining his employer wished to rent a box. After examining the vault, the man said he would report to his employer., who would com- municate with- the bank later, Mr. Earnshaw addeu. The detectives also were given a description of & man who called at the typewriter store several times recently, and | One of the bonds, worth $50,| IPRESIDENT URGES LAW CORRECTION Capital Dry Act and Change in Bankruptcy and Grand Jury Methods Asked. (Continued From First Page.) that the National Capital should be the mode! of city law enforcement in the Nation, President Hoover is of the cpinion that the duties and powers of the District Commissioners and the Metropolitan Police force should be more sharply defined and enlarged so as to open the way for better co-oper- ation in the enforcement of prohibition between the local officials and the pro- hibitions officers of the Federal Gov- ernment. The President, while realizing that there is need for legislation to improve conditions in the Capital, does not con- sider conditions here as what might be described as “bad.” He expressed him- self to this extent in his annual mes- sage to Congress in 1929, in which he stated that while conditions here are much better than in many other citles they are far from perfect. At that time he sald the congestion of criminal cases in the Supreme Court of the Dis- trict, resulting in long delays, was prob- ably due to the need for improvement in the Capital. The President’s reference in today's message to the effect that the Attorney General had madé recommendations to committees of Congress as to the char- acter of the legislation needed to sup- plement the prohibition law for the District is taken to mean specificallr the Attorney General's report on the bill of Senator Howell affecting en. forcement of prohibition in the District. Approved Evidence Fund. ‘The Attorney General at that time proved the giving of the local police authority to enforce the prohibition laws just the same as prohibition ‘officers of the Federal Government and also approved the creation of & revolv- ing fund for the District to be used in obtaining evidence, but the Attorney General report adversely upon that section of the Howell bill regarding search warrants. In his desire to have the District the model of city law enforcement for the rest of the country, President Hoover first wants a local prohibition enforce- ment law and the co-operation between the local authoritiés and the Federal authorities in the enforcement of that law. Regarding the invalidity of indict- ments through the disqualification of grand jurors, the President called attention in his report to recent in- stances in the Supreme Court of the District where indictments returned, after long and expensive hearings, have been invalidated by the discovery of the presence on the grand jury of an ineligible juror. In mentioning this in his message today the President de- clared that the system now in operation in the District for preparing lists of persons qualified for jury’services re- quires improvement. He contends also that it should be provided, not only regarding the Supreme Court of the District, but to all United States district courts, that if not less than 12 eligible grand jurors vote for an indictment it shall not be invalidated because of the presence of ineligible jurors. The Presi- dent stated also that legislation should be enacted limiting the time for mak- ing motions to quash indictments be- cause of disqualifications of grand jurors. “Third-Degree” Case Recalled. Mr. Hoover's singling out of the Su- preme Court of the District for his rec- ommendations regarding the invalidity of indictments by reason of disqualifi- cation of grand jurors, was prompted principally by the disqualification of a Juror during the “third-degree” cases before the grand jury a few months ago. Because of the frequency of disquali- fication of grand jurors in this city, the President in his message today sug- gested that the statutes in force in the District respecting the qualifications of grand and petit jurymen and their se- lection should be thoroughly examined and overhauled. Grounds of ineligi- bility now exist, in his opinion, which do not affect the avallability or impar- tiality of jurymen. In suggesting improvement of this particular feature of the eligibility of jurors, the President did not specify any particular change in the qualifica- tions. The principal difficulty met by the local courts in the -matter of se- lecting eligible jurors has been that part of the District statutes which makes persons receiving any money or pay from the Federal Government or Dis- trict Government ineligible for service. \CARDOZO IN CAPITAL PREPARES FOR OATH! By the Associated Press. Judge Benjamin N. Cardozo of New York was in Washington today making personal arrangements preparatory to taking the oath and entering on his new Judicial duties as & member of the Su- preme Court on March 14. He declined to be interviewed, saying he preferred “to speak through my opinions.” Judge Cardozo's nomination to the highest court Tecently was unanimously confirmed by the Senate without dis- cussion. Under the Senate rules, the President cannot be notified of the cenfirmation until two executive sessions have inter- vened. To date there has been only one since that at which the nomination was approved. The commission, therefore, has not been issued, but it'is certain it will be before the Supreme Court Tesumes its sessions on March 14 after entering to- day on a two weeks’ recess. As soon as the commission is issued and the court i in session, Judge Car- dozo will take the two oaths prescribed, one judicial and the other statutory, and become s member of the tribunal. . saying he was a locksmith and offering to change the firm's locks. He made his last visit only a short time ago, according to Albert Burton, assistant manager. Burton, who lives at 1310 Spring road, said he was held up by a lone bandit about two months ago. The robber left after failing to obtain any money. Detective Sergt. Carlton Talley and other detectives assigned to the case expressed the opinion the hold-up had no connection with the bank robbery, however. Miss Abbey Allen, proprietor of a beauty shop next to the typewriter store, reported that the door of her establishment was jimmied open over the week end. Nothing was stolen, however, and there was no indication that any effort had been made to cut through the wall separating the beauty parlor from the typewriter shop. Miss Allen also told detectives that a man came to her establishment about a week ago and asked her what time the typewriter store closed. A man of the same general appearance was loit- ering in the neighborhood Saturday night, she added. ‘The detectives termed the robbery “the most amazing” ever perpetrated . It was put through so smoothly, they said, that “only experts could have staged it, and it must have been planned for_months.” Detectives were checking upon a re- port that an automobile bearing New York license tags was parked almost directly in front of the typewriter store for several hours Saturdsy night. Al- though residents of the neighborhood noticed the car, they neglected to jot down the license numbers. They were able to give police a‘detailed description of it, however. 29, 1932. Text of Hoover Message President Urges Increase Chan, The text of President Hoover's special | message Congress recommending | strengthening of ~ procedure 1n | Judicial system follows: To the Senate and House of Repre- sentatives: On previous occasions I have calied the attention of the Congress to the inecessity of strengthening and making | certain changes in our judicial and law- | enforcement machinery. Since then substantial progress has been made both | through improved methods of adminis- tration and additional legislation. Ho ever, there is room for further improve ment. With this in mind, in my annual message on the state of the Union, I stated that I would address the Con- gress at & later date on important mat- ters of reform in organization and procedure of criminal law enforce- ment and the practices of the Federal courts. The subjects are of highly technical character. They have | been exhaustively examined by the De- | partment of Justice, the Commission on Law Enforcement, and recommendations have been made over many years DY various bar associations of the country. Congestion in the Courts. Improvement has been shown during the past three years through steps taken under direction of the Attorncy Gen- | eral in more efficient organization of | enforcement agencies through congres- isional acton in concentration of the responsibilities in the Department of Justice and through the prison reform luws passed by the Congress. Yet de spite wvery effort there is still @ndn congestlon in the courts in @ numoer in Judicial Personnel and ges in Laws to End Congestion of Undis- posed Cases Pending in Court. tors and tend to speed up disposition of criminal cases. | Invalidits of Indictments Through the | Disqualification of Grand Jurors. There have been many instances, some recently in the Supreme Court of the District of Columbia, where indict- ments, returned after long and ex- pensive hearings, have been invalidated | by the discovery of the presence on the grand jury of a single ineligible juror. By law applicable to the United States District Courts, including the Supreme Court of the District of Columbia, it should be provided that if not less than 12 eligible grand jurors vote for an in- dictment it shall not be invalidated be- cause of the presence of ineligible jurors. Legislation should be enacted 1imiting the time for making motions to quash indictments because of disqualifi- cations of grand jurors. All the foregoing proposals relding to criminal procedure should be made ap- plicable to the Supreme Court of the District. In addition, the statutes in force in the District respecting the qualifications of grand and petit jury- men and their selection should be thoroughly examined and overhauled. Grounds of ineligibility now exist which do not affect the availability or impar- tiality of jurymen. The system now in operation in the District for preparing lists of persons qualified for jury service requires im- provement. Juvenile Delinquents. Each year many juveniles charged with violation of law fall into the cus- of districts. The following statistics indicate this| congestion as well as the progress made: - In private litigation in the Federa courts in the last five years there has been no large increase in the number of cases commenced, but the courts have not been able to reduce the num- ber of such cases pending and await-| trial. i he number of Government civil| cases begun in 1928 was 20,695, in- creasing each year until in 1931 the total was 25332. Cases terminated during this perfod show that the judi- cial department has kept pace with the increase but has been unable to reduce the congestion. ;| The number of bankruptcy cases be- gun has increased from 53,000 in 1928 to 65,000 in 1931, with a steady in- crease in the number of cases undis- posed of at the end of each year. Criminal cases commenced have in- ber pending shows & decrease from 30,400 at the end of 1928 to 27,900 at the end of 1931. In 1931 alone 4,000 more criminal cases were disposed of than commenced, showing a definite gain in this fleld. There has also been a steady improvement in the quality of the work of the prosecuting agencies. Despite an increase in the volume of criminal cases begun, there has been a steady reduction in the number left pending each year. The results at- tained show a greater percentage of convictions d & lower ratio of dis- missals and acquittals. In 1928, 78.3 per cent of criminal cases terminated were by verdict and plea of guilty, while in 1931 this ratio had increased to 84.2 per cent. In 1928, 21.7 per cent of criminal cases were terminated by dismissal or acquittal, while in 1931 this figure had fallen to 15.8 per cent. Final results of the more effective work of the Federal agencies for en- forcement of criminal laws are evi- denced by increase of prisoners. The number of Federal convicts in prison institutions and on parole increased from 19,110 at the end of 1928 to 27.871 on June 30, 1931. During the same period the number on probation in- creased from 3,500 to 12,000. The total number of Federal convicts under some form of restraint was 39,800 on June 30, 1931, as compared with 22,600 on June 30, 1928. The recent reorganization of the parole and probation systems not only has produced a humane result, but has relieved an otherwise impossible prison congestion. These gains in ef- of improvement in personnel, of ad- ministrative effort and reorganization, and pot of reforms in judicial pro- cedure. I commend to the attention of the Congress the recommendations of the Judicial Conference gn the subject” of increased personnel. Rellef should be anted in those districts where private itigants are suffering from delay, where civil and criminal dockets are seriously congested, and additional judges are needed. Reform in Criminal Procedure. The extent of crime is and must be a subject of increasing concern to the Government and to every well disposed citizen. This increase is by no means confined to the violation of new crim- inal laws. Some part of all crime is due to con- fidence of criminals in the delays of the law and to their ability to avoid conviction and to delay penalties by misuse of the procedure and provisions of the law intended to assure fair trial. This is more manifest in procedure in the courts of some States than in the Federal courts. Yet important reforms in the Federal establishment and in the Federal procedure are needed and must be undertaken. Aside from its di- ,rect result, the indirect result of high standards In_the Federal courts is of Nation-wide influence. Criminal Appeals. The present procedure in criminal ap- peals to the United States Circuit Courts of Appeal and the procedure in the United States District Courts, in preparation for appeals after verdicts of guilty, lend themselves to delay and unnecessary expense. With the grant- ing of bail and the stay of execution of the sentence, the convicted person loses all incentive to expedit L small part of the general criticism of the delay in criminal cases rises from the delays in the preparation and hear- ing of appeals after verdicts of guilty, and a reform in these particulars would be a long step in advance. Respect for the law and the effect of convictions as a deterrent to crime are diminished if convicted persons aFe ob- served by their fellow citizens to be at large for long periods pending appeal. All steps subsequent to verdicts of guilty are involved in these processes. A statutory code of procedure on this sub- ject would not be sufficlently flexible. I suggest that the Supreme Court of the United States be authorized to pre- scribe uniform rules of practice and procedure in criminal cases for all pro- ceedings after verdicts in the District Courts, and for the Circuit Courts of Appeal, including the courts of the Dis- trict of Columbia The success of the Supreme Court in the prompt disposi- tion of criminal cases brought before it gives confidence that it will deal effec- tively with this subject. The objection heretofore advanced to authorizing the Supreme Court to establish uniform rules of procedure in civil cases, that such rules would destroy the conformity between practice in State and Federal courts, has no validity against the pro- posal for uniform procedure in criminal cases, in which no conformity exists. Walver of Indictments. Legislation should be enacted to per- mit an accused person to waive the requirement of indictment by grand jury. Where the accused admits his guilt, preliminary hearings and grand jury proceedings are not necessary for his” protection, they cause unnecessary expense and delay. In such cases the law should permit immediate plea and sentence upon the of an infor- in jeil to| await action of a grand jury, and would reduce the expense of maintenance prisoners, lessen the work of prosecu- creased from 1928 to 1931, but the num- | fectiveness have been the result mainly | tody of the Federal ‘authorities. In the interest of child welfare there should be legislation enabling the At- +|torney General to forego prosecution of children in the Pederal courts and | to return them to State authorities to | be dealt with by juvenile courts and | other State agencies equipped’ to deal with juvenile delfnquents. Jurisdiction Based on Diversity of Citizenship. The Constitution provides that the Judicial power of the Federal courts shall extend to cases between citizens of different States and the judiclary acts have provided for the exercise of this jurisdietion. In its application, the courts have determined that a cor- poration shall be deemed a eitizen of the State under whose law it is organ- ized. Cases involving corporations, with Jjurisdiction based on diversity of citi- 7enship, form a substantial part of the business of the Federal courts. Legis- lation heretofore has been proposed to abolish entirely the jurisdiction of the Federal courts based on diversity of citizenship. I do not approve of such < measure. The reasons which induced the can- stitutional grant*to the Federal courts of jurisdiction over cases between cit- izens of different States still exist. To abolish that jurisdiction entirely would work to the detrimént of those States which look to outside capital for the development of their business and com- merce. As applied to special types of cases, however, affecting corporations, the present law allows the Federal courts to exercise jurisdiction because of diversity of citizenship, in cases not | within the real p and spirit of the constitutional provision referred to. recommend the consideration by the Congress of a measure to modify this jurisdiction to a limited extent by providing that where a corporation, organized under the laws of one State, carries on business in another State it shall be treated as a citizen of the State wherein it carries on business as respects suits brought within that State between it and the residents thereof and arising out of the business carried on in such State. Such a change in the law would keep out of the Fed- eral courts cases which do not really belong there and reduce the burdens of the Federal courts without impairing in any degree the diversity of eit- izenship jurisdiction which the framers of the Constitution had in mind. Prohibition Law in District of Columbia. I have hitherto recommended legisia- tion effectively to supplement the pro- hibition law for the District of Columbia. The Attorney General has made recom- mendations as to the character of such legislation before the committees of the Congress. I again urge favorable action. . Bankruptey. | The Federal Government is charged | under the Constitution with the re- sponsibility of providing the country with an adequate system for the ad- ministration of bankrupt estates. The i importance of such a system to the business life of the community is ap- parent. The number of cases in bank- Tuptcy has steadily increased from 23,000 in the fiscal year 1921 to 53,000 in 1928 and to 65000 in 1931. The liabilities involved have increased from $171,000,000 in 1921 to $830,000,000 in 1928 and to $1,008,000,000 in 1931, and the losses to creditors have increased from $144,000,000 in 1921 to $740,000,000 in 1928 and to $911,000,000 in 1931. The increases are therefore obviously not due to the economic situation, but to deeper causes. A sound bankruptcy system should operate: Tirst, to relieve honest but un- fortunate debtors of an overwhelming burden of debt. Second, to effect a prodfpt and eco- nomical liquidation and distribution of insolvent estates; and Third, to discourage fraud and need- less waste of assets by withholding re- lief from debtors in proper cases. For some time the prevailing opinion has been that our present bankruptcy act has failed in its purpose and needs thorough revision. During the past year the Depertment of Justice, with my ap- proval, has conducted an investigation into the administration of bankrupt estates in the Federal courts. Nation- wide in its scope, the inquiry has in- volved intensive study of the practical operation of the bankruptcy act under varying local conditions throughout the United States. Court records and spe- cial reports of referees have been an- alyzed. Organizations of business men and lawyers have assisted in gathering information not available through offi- cial channels. Judges, prosecuting offi- cers, referees, merchants, bankers and others have made available their expe- rience. Data gathered by the Depart- ment of Commerce relating to causes of faflure and the effect of bad debts upon business has been studied. The history of bankruptcy legislation and admin- istration in this country and in Great Britain, Canada and other countries has been reviewed. The inquiry has now been completed. Its result is embodied in a report which is transmitted herewith for the cdnsid- eration of the Congress. Thorough and exhaustive in detail, it presents the in- formation necessary to enable the Con- gress to determine the faults in the present law and to devise their cure. The present bankruptcy act is de- fective in that it holds out every in- ducement for waste of assets long after business failure has become inevitabie. It permits exploitation of its own process and wasteful administration by those who are neither truly representa- tive of the creditor nor the bankrupt. Except in rare cases it results.in the grant of a full discharge of all debts without sufficient inquiry as to the con- duct of the bankrupt or of the causes of failure. It discharges from their debts large number of persons Wwho might have paid without hardship had the law discriminated between those overwhelmed by misfortune and those needing only temporary relief and the opportunity to deal fairly with their creditors- The bankruptcy act should be amend- ed to pr remedial processes in voluntary proceedings under which of | debtors, unable to pay their debts in the protection due course, may bhave | NOYESHEADS LOCAL ANTIHOARD DRIV o i Expresses Confidence That City Wil Co-operate in President’s Move. Newbold Noyes, associate editor of | The Star, today recetved notice of his | appecintment as chairman of the anti- | hoarding campaign for the District of | Columbia. ‘The appointment was made by Col., Prank P. Knox, head of the national organization set up by President Hoo- | ver to draw money from hoarding into | circulation. “The work of shaping up the local committee is still before me,” Mr. Noyes said in explaining that it remained to be ascertained as to how much hoard- ing of money is in existence in Wash- ington. “I am confident,” he sald,, “that Washington, with its fine record | of patriotic response to all public ap- peAY:. will co-operate fully in whatever plans are necessary to carry out the purposes of the President's campaign.” Mr. Noyes said he has not yet had opportunity to look into-the local sit- uation thoroughly, his appointment hav- ing just been made, but that he would consult with leading bankers here to ascertain the extent of money that has been withdrawn from bank circulation. He also said it would be necessary for him to get into touch wits: Col. Knox to learn more details of whe proposed organization of the committee here be- fore he could make any announcement of its plans. MRS. HOOVER GOES TO FRIEND’S FUNERAL Interrupts Southern Cruise to At- tend Rites in Georgia for Mrs. Howard E. Coffin. By the Associated Pres BRUNSWICK, G February 29— Mrs. Herbert Hoover interrupted her Bouthern cruise to attend the funeral of an old friend, Mrs Howard E. Coffin, wife of the Detroit motor magnate, today. The President’s wife and a party of friends arrived here Saturday night aboard the Depprtment of Commerce motorship, Sequoia, and had planned to proceed to Miami, Fla. yesterday. but Mrs. Hoover decided to remain over for the funeral at Sapelo Island. Today Mrs. Hoover will leave the Sequoia, on which she spent the night, and will motor to St. Simons Island and take a speed boat to Sapelo Island to attend the services for Mrs. Coffin Mrs. Coffin died of a stroke Friday. Mrs. Hoover said she did not plan to attend the burial services at Fred- erica Cemetery at 3:30 p.m. but no hour was set for the Sequoia's sailing. KINGMAN NAMED AIDE FRIENDS OF BALL TRY 0 SAVE HOME Popular Subscription Starter. Jesse Takes Office as County Treasurer. By a Staff Correspondent of The Star ARLINGTON COUNTY COURT HOUSE, Va., February 29 —A concerted movement was started in Arlington County today among friends of E. Wade Ball to raise sufficient funds by popular subscription to save his home, which he is faced with losing. among other assets, as a result of the reported shortage in his accounts while serving as county treasurer. In the meantime Charles T. Jesse, appointed to succeed Ball, who resigned last week, qualified on a temporary $400,000 bond and took office as county treasurer. Steps were then immediately taken to float an emergency loan of $140,000 to pull the county through its temporary period of financial stress growing out of the alleged shortage in Ball's account. The loan was author- ized by the county board at a special meeting Saturday night. A group of about 18 of Ball's most intimate friends will meet tonight at 8 o'clock in the home of Charles D. Boyer on Glebe road to map out plans for raising a popular fund to buy Ball's home in the event it is seized by the Fidelity & Deposit Co. of Baitimore, the organization which bonded the former coutny treasurer for $300,000. It 15 es- timated that approximately $18,000 w- be needed. Friends Stand By. Ball has a wife and two children, both boys, who would be deprived of & home, according to his friends, should the bonding company take over his as- sets partially to satisfy his bond. Despite the trouble which forced Ball to resign the position he held for 24 ears, his friends are still legion and ave announced thelr intention of mak- ing a sacrifice to provide him and his family with a home regardless of the outcome of the present investigation being made by five auditors from the office of the Virginia State auditor of public accounts. As soon as Jesse took the oath as Ball's successor, the office of county treasurer, which had been closed sev- eral days, was reopened for business. Although Jesse has planned a reor- ganization of his staff, he announced he had not yet completed the details, but expected to do so within a few days. ‘The oath of office was hurriedly ad- ministered about 9 o'clock this morning after Jesse had qualified on the tem- porary $400,000 bond, the amount hav~ ing been fixed by the court last week. The procedure was rushed to permit county officials to complete negotia- tions for the $140,000 loan to preclude any delay in meeting the cuur’::i‘ pay roll and other expenses, which due Duncan Administers Oath. tomorrow. The oath was administered by Wil- llam H. Duncan, county clerk, after Circuit Court Judge Walter T. Mec- Carthy, who appointed Jesse, had aj roved a tem) bond furnished TO ADMR. H. V. BUTLER Gunnery Officer on Battleship Mis- sissippi to Succeed Lieut. Comdr. Green. Rear Admiral Henry V. Butler, com- mandant of the Washington Navy Yard, will soon have a new aide in the person of Comdr. Howard F. Kingman, who has been serving as gunnery officer aboard the battleship Mississippi. King- man will relieve Lieut. Comdr. Lucien . Green, 2d, who is planning to leave the Navy next month. Comdr. Kingman has been ordered to report to Washington, where he pre- viously has served frequently. The new aide is a native of Hills- boro, N. D., where he was born May 5, 1890. Since his graduation from the Naval Academy in 1911, he has fre- quently served in posts similar to that which he will have with Admiral But- ler. In 1928 he was sent as assistant naval attache to London as the United States representative in revising the in- ternational code of signals. He has been gunnery officer -aboard the Mis- sissippl since October, 1930. —_— of the court without being adjudged bankrupt, for the purpose of composing or extending the maturity of their debts, of amortizing the payment of their debts out of future , of pro- curing the liquidation of their property under voluntary nment to" a trustee; or, in the case of corporations, for the puropose of reorganization. The act should be amended to re- ire the examination of every bank- rupt by a responsible official and a full disclosure of the cause of his failure and of his conduct in connection there- with for the consideration of the court qui ur individuals—Carroll Pierce, presi- dent of the Alexandria Citizens’ Bank; C. C. Lamond of Alexandria, a stock- holder in the Clarendon Trust Co.; Ashton C. Jones, prominent Arlington County real estate man, and Crandal Mackey, Arlington County attorney and newspaper editor. ‘The bond was arranged to avoid any further delay in placing Jesse at the head of the county treasurer’s office. It will be held in effect until Jesse's ap- plication for a permanent bond is ap- proved by a Massachusetts bonding company. Within an hour after Jesse had taken the cath of office, County Man- ager Roy S. Braden and Fletcher Kemp, superintendent of public schools, went to Alexandria and completed negotia- tions for the $140,000 loan. The County Board borrowed $100.000 and the pub- lic schools negotiated an independent lean for $40,000. The money was advanced by two Alexandria banks, the Citizens' Na- tional and the First Natlonal, which last week promised to loan the county funds. Seventy thousand dollars was borrowed from each of the banks. Upon the return to the court house, Braden and Kemp went into confer- ence with Jesse and Commonwealth Attorney Lawrence las and drew up a formal loan resolution for the Ccunty Board to sign. Harry_A. Fellows, charman of the County Board, announced that a special meeting of his board would be held to- morrow morning at 8:30 o'clock at the court house to put finishing touches on the note and sign the county pay roll. Under a new accounting system adopted by the County Board on recom- mendation of County Manager Braden, checks will be issued hereafter insts of warrants. The checks will be signed by three persons—the charman of the County Board, the clerk of the board and the county treasurer. —_— in determining whether he should have s discharge. The discretion of the courts in grant- ing or re(\lnins discharges should be broadened, and they should be au- thorized to postpone discharges for a time and require bankrupts, during the period of suspension, to make some sat- isfaction out of after-acquired property as a condition to the granting of a full discharge. The choice ot the liquidating per- sonnel should be limited to competent individuals or organizations after care- | ful consfderation by the cpurts of their qualifications and ability to maintain an efficient and permanent staff for the conduct of the business. Compensation for such services should beé upon a scale which will attract trained business organizations. Competent officials should be continuously charged with the observance of the administration of the law and with the duty to am to the courts and to Congress mef for its improvement. The present stat- ute is susceptible of improvement to eliminate delay f1n hiluh cuxlz:lber}ome processes, much of which results from a confusion of judicial and business functions. ‘The inquiry has not stopped with the collection of information and an ex- pression of general conclusions. Its re- sults have been embodied by the Attor- ney General in a bill for revision of the present bankruptcy act in order to pre- sent the proposals in concrete form. 1 earnestly commend them to your consideration. Conclusions. Reform in judicial procedure is, for many reasons, & slow process. It is not to be brought about by any single measure. It can best be accomplished by dealing with the subject step by step, the sum of which, in the course of time, will result in - definite improvement. Taken together, the proposals above outlined offer an opportunity for sub- stantial improvement in the adminis- tration of justice. They tend to de- crease the burden on the public treas- ury and upen litigants. None of them requires consequential increase in ex- penditures. They would reduce crime. In concluding, may I not say that important as these recommendations are, we must all keep before us the thought that effective administration of the Jaw in a republic requires not only adequate and proper machinery, honest and capable officials, but, above all, a citizenry imbued with a spirit of respect. for Jaw. . HERBERT HOOVER. . COOLIDGE PLEADS AGAINST HOARDING IN PUBLIC STATEMENT (Continued From First Page) tificates are the promise of the Gove ernment of the United States to pay the holder a certain amount of money. They have back of them & security as good as that back of all the paper money and besides they draw interest. Here 13 something as safe as the Gov= ernment of the United States. Hoarding Injures All “Every -one who is holding money is doing the wrong thing. It injures the holder and everybody else. The right thing to do is to put it in & good bank or buy Treasury certificates. If that is done by the large number of people now holding their money out of circulation, it will assist the Govern- ment, improve credit, encourage busi- ness and provide work. The le can help do all these things if they want them done. If they will not save them- selves, no one can save them. The time has come for the people to take charge of their own affairs. They should use their own money for their own benefit by putting it into circulation to_ take charge of their own affairs. They should use their own money for their own benefit by putting it into circulation.” LENTEN SERVICES NEW YORK AVENUE PRESBYTERIAN CHURCH Daily, Except Saturday and Sunday Noon to 1 O'Clock Speaker Tomorrow— DR. W. S§. ABERNETHY tor Calvary Baptist Church