Evening Star Newspaper, March 3, 1932, Page 1

WEATHER. (U. 8. Weather Bureau Forscast.) Increasing clouding by rain beginning ess tonight followed late tonight or Fri- :+ not much change in temperature. pperatures—Highest, 54, at 4:15 p.m. yesterday; lowest, 40, at 1:15 am. today. Full report on page B-15. Closing N. Y. Markets, Pages 14 and 15 _—r No. 32.083. Entered as second class matter post office. Washington, D. ( he Fn WITH SUNDAY MORNING EDITION WASHINGTON, D. C, THURSDAY, MARCH 3, ening Star. 1932—FORTY-EIGHT PAGES. #*% Associated service. The only evening paper in Washington with the Press news Yesterday's Circulation, 126,631 (#) Means Associated Press. WO CENTS. LINDBERGH TO FIGHT KIDNAPERS TO END AREA NEAR HOME CLEARED IN HOPE OF AIDING RESCUE;: MANY STATES SEARCHED Father Silent on Plans to Pay Ransom. SEARCH SPREADS| TO MANY STATES’ Waitress Gave Police Clue to Men Who Sought Estate. HOPEWELL, N. J, March 3 (®.—Col. Charles A. Lindbergh decided today to fight it out with the kidnapers of his baby son, keeping the police on the job and making every effort to run the criminals down. After Gov. A. Harry Moore visited Col. Lindbergh it was learned that the suggestion had been made that Col. Lindbergh call off the police search and issue an appeal to the kid- napers to return the baby on a no-questions-asked basis. It was not revealed who made this suggestion, but it was learned that Col. Lindbergh repudiated it instantly and forcefrlly and that he an- nounced that instead of asking withdrawal of the police he would urge them to every pos- sitle effort. | (Cepvright. 1932, by the Associated Press.) | FOPEWELL, N. J., March 3.—| Lindbergh baby was still miss- | day. | for miles on either side-of the Lindbergh estate the road was cicared to make easy the return of the kidnaper, reported to be| T in- demanding $50,000 ransom, which Col. Charles A. Lindbergh is ready | to pay. Last night the army of reporters and photographers assigned to the kidnaping was requested to leave the estate for fear that if the kid- naper should bring the baby back | he would be frightened at sight of the crowd and fail to stop. Today an even stricter order was issued and the police deadline was moved back to this village, almost four miles from the Lindbergh estate, and to Wertsville, even farther away, on the other side. No One Can Stop. Inside the area thus bounded pohce: constantly patrolled the highway and | 1o one was allowed to park & car or | even stop for a moment. No one not having legitimate business on the road | was allowed to drive past the Lindbergh estate. | The reporters and photographers, | some of whom had been billeted in the homes of neighbors of the Lindberghs, were forced to leave and withdraw here. No secret was made of the reason for | thus isolating the Lindbergh home and it was acknowledged that with the estate and road cleared there were hopes the kidnaper or a representative might bring the baby back and demand | the ransom. | Although Col. Lindbergh was ready | to pay whatever was asked no state- | ment was issued as to whether he had Teached an agreement with police as to | their action in case the kidnaper should | arrive So far as official communiques were concerned, the most substantial clue in the hands of the authoritics was the story told them by a Miss Keating, a waitress of Pennington, which is only| & few miles from Hopewell | Miss Keating said three men entered | the restaurant w she is_employed | quire ay to the Lindbergh That was last Friday night. She gave them directions to reach the se- cluded $30,000 estate. The same three men returned to the #estaurant Tuesday night. She remem- bered them distinctly. After a brief lunch they left. Two hours after their departure the Lindbergh baby was gone from his nursery The & ing's 1 ation as hi She was tiken by Newarx and New Y dy pictures in the rogues’ g in the hope she might be able to identify photographs of the men. No report on the outcome of the journey to New York had been e eagy today. At Newark, Keat- hly important > trooper to was understood she sclected | tographs, but there was no the police. after the visit to Newark g and the State police offi- appeared at Jersey City police | HOUSE. Va. March 3.— Following their confer- |gan, 50, former commonweath attorney " |of Warrenton, Va. was instantly killed (on the Lee Highway in Rooslyn this | afternoon when struck by an automo- bile driven by Thomas Tinsman, 21, of headquarters. _ (Continued on Page 5, Column 7.) FEAR OF | HELD TRADE OBSTACLE By the Associated Pres PITTSBURGH, March business structures are fundsmentally | sound, John M. Pitzgerald of New York, Committee of the business now needs ahead and & free of capital.” Fitzgerald said that business condi- tions have brought ecoromeis that pro. duced a firm inqustrial struciure “The flow of maney is reta eaid. “by fear of confiscation through taxation, and the fear of police by paternalists.” He spoke at a business men's luncheon. an open roac 1 | accident, Woman Is Sought After She Mails Lindbergh Note BOSTON, March 3 (#.—The kid- naped baby of Col. Charles A. Lind- bergh, according to a letter mailed by a woman in Boston today ad- dressed to the famous aviator, is held in a house in a small New Jersey town. The letter gave the name of the place as “Provincetown, 1" But the police interpreted this as re- ferring to Provinceline, not far from Princeton. The police and postal officials said the tip appeared to be the best clue in the case thus far, and, basing their judgment on their experience in such matters, said they believed it to be genuine. The letter, mailed by an elderly woman of foreign extraction, for whom wide police search was started, was taken from the mails and opened by authority of Col. Lindbergh. It read, in part, as follows: “Dear Col. Lindbergh: “I dom't want te say how this information came into my posses- sion. I urge you to act on it, though. I know that your son is held by two men and a woman at (name of town and address of house to which she referred).” The letter ended: “I received this information from a long distance.” The letter was mailed shortly after 10 a.m., in a postal station in Bos- ton's South End, by a woman, de- scribed about 60 years old, 5 feet 6 inches tall, weighing about 140 pounds, dressed in dark clothing and speaking with a strong accent, prob- ably German. The woman had bought an air mail stamp, affixed it to the letter, and then departed, apparently in a state of extreme agitation. A postal clerk promptly found the letter, which was called sharply to his at- tention by this typewritten notation on the envelope: “Please spare no effort to have this message concerning Col. Lind- berg’s son rushed with all speed possible. This is no hoax, but it is a vitally important communi- cation.” Driver Explains Presence. Hope of finding the woman re- ceived a set-back when, two hours after the letter had been mailed, police stopped the car in which by- standers said she had driven away. Its driver, Harry M. Spring, for- merly of Milford, N. J., admitted having been in the postal station this morning, but said his presence there at about the time the woman mailed the letters must have been a coincidence. Spring said he had called at the station to obtain mail for a sick friend. Spring’s story was substan- tiated by his father, who said his son had worked in Milford, but had come to Boston three weeks ago after being laid off. He sald a minister had called to- day to tell the young man that a friend was sick in the city hos- pital and that the son had taken his mother and a woman friend down town, en route to the hospital. The typed notice on the envelope had Lindbergh's name spelled in- correctly, omitting the final “h.” The Boston police and postal a thorities quickly obtained authori- zation to open the letter from Col. Lindbergh, both by telephone and telegraph. Police reserves had to be sent to the postal station on Washington street, in the South End, after word spread that a letter to Lindbergh had been mailed there, for a large crowd promptly gathered about the office and in the street. License Plates Traced. TRENTON. N. J., March 3 (#).— The New Jersey license plates, J-6989, noted on an automobile driven by a woman who mailed & letter to Col. Lindbergh, in Boston, today, were issued to Harry M Spring of Milford, N. J., according to_motor vehicle records here. The town ot Milford is in Hunter- don County, in which a portion of Col. Lindbergh's estate is sitated. VIRGINIAN KILLED WHEN HIT BY AUTO Struck in Rosslyn by Cherry- dale Man's Car. By a Staff Correspondent of The Star ARLINGTON COUNTY COURT William Hor- 75 Harrison street, Cherrydale. Horgan was struck after leaving the | automobile of A. C. Hutchinson and as | 8 ikin he was crossing the road to enter the ralls | Bergman Laundry along the highway. In the hope that he had not been fatal- vice president of the Public’ Relations |1y injured he was taken to Georgetown Eastern Railroad | Hospital by William A. Warren of 1416 Presidents’ Conference, siid today that | Chapin street, Washington. Officer Crack, who investigated the said that he was unable to ascertain if Tinsman was driving at Tinsman had as| son of ed,” he | Hugh Reid, Arlington County Delegate an excessive speed. a passenger Hugh Reid, jr. to the General Assembly at Richmond. }Cars Are Object ' of Officers in Active Hunt. ONE CLUE LEADS TO HYATTSVILLE 'Radio and Teletype Kept Busy as New Leads Turn Up. By the Associated Press. NEW YORK, March 3.—The high pitch to which citizen inter- est has been aroused in the Lindbergh baby kidnaping led police of several States today in search of automobiles reported to | have been carrying babies. [ Pclice radio in New York City |and the teletype system connect- |ing five States were used to | broadcast alarms for automobiles, most of them reported by citizens Among the cars were: New York City—Radio broadcast for a car carrying two women and a baby seen in Sixth avenue The citizen who reported this in- cident to police evidently mis- took the license number, as a check-up showed the license had | been issued to Fred Schultz, jr., of Tuxedo, N. Y., and the car had not been out of the vicinity of | Tuxedo and Suffern. A second radio alarm was broadcast for an automobile seen coming through the Holland Tunnel from New Jersey, carrying a man, woman and a child about 2 years old. Plates Misread. WHITE PLAINS, N. Y.—A faded | green sedan driven by & man with a blond young woman in the rear seat. The license plates of this car also were evidently misread, as a check-up showed no such plates were issued. | SYRACUSE, N. Y.—Blue sedan re- | ported by hotel guest seen near Holland Tunnel in New York City 3 i | March 2, carrying a man, woman and a baby wrapped in a blanket. NASHUA, N. H—Car covered with | mud and occupied by two men, a woman and a baby. WASHINGTON, D. C—Search for a man, woman and a baby belleved to have abandoried an automobile at Hyattsville, Md., Tuesday night. NEWARK, N. J—Car containing man, woman and baby, who stopped a milkman today and bought a bottle of milk. NASHUA, N. H. March 3 (®.— | Nashua police headquarters was notified | by the Fitebburg police today to be on | the watch for an automobile in which |two men, a woman and a baby were Tiding The Fitchburg police said the car ‘smppcd at a service station in that city and asked that the pump on the car | be fixed. The station attendant said | it would take 20 minutes, and when he went to get his tools the car drove off. The machine bore New York regis- tration plates, was covered with mud | and the woman occupant wore glasses, | as did the baby. 1 ASBURY PARK, N. J, March 3 (@) | —A rum runner's story of passing a 30-foot cruiser on which a man was and a baby's cry was heard sent ard craft racing along the ) aboard today in the latest phase of the Lindbergh baby kidnaping case ‘Three Cars Sought. YORK. March 3 () —Three cars were sought in New York State to in connection with the Lindbergh case. Each was reported to have a | baby as passenger and police broadcast [urdrrs to bring them in. . 0:; Sixth avenue & car was seen bear- | ing_1i NEW ¢ plate N-3837 N. Y. Plains & car bearing Con- was sought * a blue sedan with Illi- neis plates was the object of a search. | Car Seen At Binghamton. BINGHAMTON. N. Y., March 3 (#) —Police alarm was sent out here short- |ly after noon for a black sedan with | New Jersey license plates which passed William Horgan of Wnrrentonerhrguz:. Binghamton westward toward ndicott The car contained three men and a woman and in the back was a pillow and what appeared to be a blanket. On the rear of the car was a cardboard box with the following printed on it: Kuliaz from Elizabeth.” Lieut. Mont- gomery. in charge of State Police Troop C Barracks at Sidney, was notified. A 'ED MORRIS, RED SOX | PITCHER, DIES OF STABS Wounds Suffered in Fight During Fish Fry in Player's Honor in South. By the Associated Press. | CENTURY, Pla, March 3.—Ed Mor- | ¥is. Boston Red Sox pitcher, died here today of knife wounds inflicted during a quarrel at a party given in his honor last Monday night. Witnesses sald he and Joe White, an ol station operator, climaxed an argu- Tinsman is being held here at the | ™Dt ¥ith a fight, in which Morris was court house, pending the’arrival of mimbbfd twice in the chest, family. S White is held at Brewton. SEEK T0 DEPRESS POUND STERLIG British Leaders Hope to Pre- vent Currency From Gaining in Value. By Cable to The Star. LONDON, March 3.—The amazing financial sitvation of Great Britain, where last August every effort was being made to keep the pound sterling up, | 1rom today on will see vigorous efforts | being made to keep it down. | ‘The British do not want the pound | sterling to appreciate at a rate which | might get away from them. The decla- rat of Neville Chamberlain, chancel- lor of the exchequer, in the House of Commons that Great Britain was re- paying tomorrow $150,000,000 of the American bankers' credit, coupled with the announcement of the removal of all restrictions on foreign exchange trans- actions. is deliberately designed as a financial counterbalance. ‘The first act, Mr. Chamberlain’s utter- ance, inspires international confidence, leading to the repatriation of the pound as well as an influx of surplus foreign money seeking employment in London. The exchange curb removal provides a spillway for the financial reservoir, pro- viding the feans of drain in an outward | direction. Seek- to Avoid Inflation. The British do not want the pound to appreciate too fast for the following reasons: 1 It halts the boost to exports given | by the low exchange rates. { 2 It leads to accumulations of lia- bilities in short-term money in London | similar to the condition of last Au- | gust, when Great Britain was caught with immense short-term obligations in Lendon and long-term or frozen short- | term abroad, unable to mobilize quickly enough to meet foreign withdrawals, | and thus was forced off the gold stand- | ard. 3. Too sharp a rise in sterling would tend to dislocate the “sterling bloc.” This consists of at least 28 countries that were either off or followed Great | Britain off the gold standard, including (Continued on Page 2, Column 7. LIFE SENTENCE ASKED | FOR ALL ABDUCTORS | Massachusetts Bill Would Raise Penalty for ‘“‘Atrocious Crime.” By the Associated Press BOSTON, March 3.—Life imprison- ment for persons guilty of kidnaping is provided in a bill filed with the House of Representatives today by Repre- sentative John J. Reardon of Boston. The existing law sets the penalty at two to ten years' imprisonment and a | fine of $1,000 for ordinary kidnaping | and a maximum of 25 years, when the kidnaping is for purpose of extortion. Representative Reardon referred directly to the kidnaping of the son of | Charles A. Lindbergh, and described | kidnaping as one of the “most atrocious | forms of human wickedness.” | “I feel the crime in Massachusetts is punished too lightly,” he said, “and that the sentence of life imprisonment | should be imposed upon everybody for kidnaping.” | it off the roadway. Girls Argue Boys Are Best Debaters And Win Decision By the Associated Press. SYRACUSE, N. Y., March 3.— Pigure it out for yourself. The Vocational High School's Oratori- cal Club decided to debate the question: “Resolved, That boys are better debaters than girls.” Three girls today took the affirmative side. Three boys took the negative. The girls won, The judges were unanimous in their decision. The girls had proved that the boys were the better de- baters. FIVE WOMEN IN CAR INJURED BY TRAIN Washingtonians Among Those Hurt in Collision Near Frederick, Md. Special Dispatch to The Star. FREDERICK, Md., March 3.—Struck by a fast passenger train at a grade | crossing three miles from here today, | five women passengers in an automo- bile were injured, some of them so severely it is believed they may die. Authorities at the hospital here were able to identify only four of the in- Jured. ‘They were described as Mrs, Florence Small, 620 E street southwest, Wash- ington, D. C.; Mrs. Jessie Heeter, same | address; Mrs. Lillian Gittings of Rock- ville and Mrs. Cora Pisher, Potomac, Montgomery County. Witnesses said that the automobile bearing the women was passing through Harmony Grove toward Prederick on the road from Emmitsburg and drove up to the crossing just as a Pennsyl- vania train on the Northern Central Railroad arrived between the Frederick and Newark approach. The train, it was said, crashed into the rear of the automobile and hurled It turned over several times. All the passengers were | unconscious when help reached them. Attendants at the hospital said there was practically no hope for the fifth woman, whose identity they had been unable to learn . 10 HURT IN TEXAS GALE Fifteen Residences Damaged by High Windstorm. HOUSTON, March 3 (#)—Ten per- sons were injured in a windstorm that struck in the vicinity of Houston early today. The injured are Juan Rodriguez, his wife and three children, and Juan Lopez, his wife and three children. Mr. and Mrs. Rodriguez and their 10-year-old son, J. Rodriguez, were the most seriously injured. They suffered bruises, cuts and possibly internal in- juries. M Pifteen residences were damaged in the region of Deepwater, Deer Park, Lynchburg and Highlands. LINDBERGH WANDERS IN WOODS SEEKING SOLACE FROM GRIEF Little Dog, Playmate of Kidnaped Baby, Accompanies| Him on Aimless Walk. (Copyright. 1932, by the Associated Press.) WERTSVILLE, N. J, March 3.— Seeking relief from the strain of help- less waiting for word of his kidnaped baby, Col. Charles A. Lindbergh left his home for a time this morning and plunged aimlessly through the woods. At his heels scrambled the little short-legged white dog, which sleeps outside the door of the baby's nursery. Seen plowing through dense under- growth a mile from the house, they were a pair to arouse sympathy in the hardest heart, the man's face drawn and white, the little dog dashing to one | side and then the other as though Bbunting for its lost playmate. ‘The colonel was completely oblivious | to all miougf ;::m m tnnermmrmm oil apparently blinding 0 evy ing. He was dressed in high boots and rough muddied clothing, and scorning the roads, strode right through tangled ush. When he was first seen it was be- lieved he might possibly be keeping some secret appointment with the kid- naper, but this theory was soon aban- doned. hecause the colonel was quite evidently merely seeking relief in ac- tion and was apparently scarcely aware of the direction he was traveling. After about an hour he returned to the house, the little dog still following. —— Radio Programs oa Page D4 TERSONCONTNES N SHANGAA LULL Japanese Drive Elsewhere Expected—U. S. Girds Naval Defenses. BY CONSTANTINE BROWN. The guns have been silenced at | Shanghai after the Chinese troops re- tired beycnd the 12-mile limit de- manded originally by the Japanese as | a guarantee for the safety of their | nationals. ‘The situation, according to the State Department, is quieter today and those responsible for the preservation of the International Settlement can breathe more freely, but the tension in the Far East is by no means lessened. Everything has happened at Shang- hai “according to plan.” The Jap- anese brought 15,000 reinforcements on Sunday, the Japanese representa- tive at Geneva accepted the truce pro- posal on Monday, the Japanese com- mander in chief launched his final drive against the Chinese on Tues- day, the Chinese were forced to aban- don their position on Wednesday and retreated some 25 miles from Shang- hai, “cease fire” was sounded on Thursday and the Japanese expect everybody to be happy because the Shanghai campaign is over. ‘The General Assembly of the League of Nations met today in a much less tese atmosphere than was anticipated. | The Japanese success at Shanghai re- moves temporarily the danger of the smaller nations of the League insist- ing on a boycott against Japan. Protracted Sessions Loom. According to reports from Geneva, the discussions will be protracted and it is likely that they will end in the League adopting certain suggestions, either along the Stimson plan not to | recognize any territorial gains which Japan may have obtained from China by the force of arms or some other plan which will require long diplomatic par- leys. Dispatches from London indicat- ing that Great Britain is prepared to consider the recognition of the new Manchurian state makes it doubtful that the League would consider the Stimson plan in its entirety. As far as the Government of this country is concerned, the Far Eastern situation continues to be considered _| with much apprehension. The latest developments at Shanghai indicate that the Japanese are de- termined to continue their faunting policies. . The civil government appears to be saying one thing to the world through its diplomatic representatives abroad. (Continued on Page 2 Column 8.) 'DROWN "TWO CHILDREN Husband Breaks Window and Es- capes—Held for Questioning by Cleveland Police. By the Associated Press. CLEVELAND, March 3—A mother and two children drowned here last night when thelr automobile ran off a wharf into the Cuyahoga River. The husband and father, Leonard Pegg. of Berea, Ohio, managed to break & win- | dow of the car and escaped. He was taken to a hospital suffering from shock. Those drowned were, Mrs. Ethel M. Pegg, 38, and her children, Curtis, 10, and Maxine, 8. The father told police he intended to turn on to another street at the bot- tom of a steep thoroughfare leading to- ward the river, but that his foot slipped from the brake to the accelerator, and he lost control. The car sank in 10 feet of water. Police and Coast Guards were unable to pull the automobile out because the wooden wharf was too old to bear the bxflz:ldu & hole In it, extricated the City deteetives questioned Pegg sev- eral {nun. '}zum placed a guard haspital, pending and lfia.fll\h& ' WITH MOTHER IN CAR| ‘They | seen Tuesday morning in the lobby. TRUCE EFFORTS VAIN, CHINA TELLS LEAGUE; REPORTS NEW FIGHTS Yen Declares Fresh Demands by Japanese Are “Absolutely Unacceptable.” COMMANDERS FOR BOTH SIDES ORDER HOSTILITIES STOPPED Shanghai Defenders, Withdrawing 12 Miles, Say Firing Continues at Liuho and Nanziang. SHANGHAI (Friday), March 4 (#.—The Chinese govern- ment at Nanking notified the League of Nations’ Assembly to- day that the 19th Route Army had been instructed to cease hostilities in this area unless it were attacked. The outlook for peace in S8hanghai reccived a setback today when Dr. W. W. Yen Chinese spokesman, bly at Geneva that negotiations for an armistice had colla a report to the secretary general added that further hostil unavoidable. &edmons. and a special session of arch 18. sion, while the council agreed to powers to discuss the future status ague of Nations’ Council, which Fighting Continues In Shanghai Area, Chinese Declare BY MORRIS J. HARRIS. Arsociated Press Staff Correspondent. SHANGHAI, Friday, March 4. Chinese Army headquarters said early this morning that a detachment of the 19th Route Army at Liuho had been engaged by a Japanese force in the night and that fighting was still going ing on. There was also an engagement in the | vicinity of Nanziang, the communique said. The Japanese denied there was any fighting at all. The Chinese statement charged the Japanese had attacked afier the mili- tary and naval commandert had or- | dered cessation of hostilities in the | whole Shanghai area. So far as the Chinese were concerned the movements to restore peace Wwere making little headway. Those in au- thority said they were awating word from Nanking before committing them- selves to any armistice terms. Nevertheless, headquarters announced the Chinese commander in the field has ordered all his forces to cease hos- tilities against the Japanese unless they are attacked. Admiral Kickisaburo Nomura and Gen. Yoshinori Shirakawa, navy and army commanders, announced they or- dered their forces to cease hostilities in the Shanghal area. The Japanese forces were ordered to consolidate the positions they now hold on the border of a 12!,-mile zone around the city unless the Chinese re- sorted to further hostile action. “I have ordered the army to stop for the time being at the points it occu- pies,” Gen. Shirakawa said, “and to stop fighting if the Chinese cease hos- tilities.” The statements of the two command- ers followed a confused situation earlier in the afternoon. The Japanese lega- tion issued a statement between 2 and 3 o'clock that hostilitles would be ended immediately, but Chinese civil author- ities said there was no indication that the orders had been put into effect. Nearly two hours later it was ai nounced that the military Torces occu- pled the Chinese Lunghwa arsenal and the garrison headquarters at the | Lunghwa station of the Shanghai- Hangchow railway at the extreme southern outskirts of Shanghai. It w: " (Continued on Page 2, Column 2.) ° o FINDS WOMAN’S BODY: SHOT THROUGH HEAD| Hotel Manager Makes Discovery. | Suicide Theory Shelved—Hus- band Sought for Quiz. | By the Associated Press. NEW YORK, March 3. —Mrs. Elsie Greenleaf, 35, who came to New York from Santa Barbara, Calif, September | 30, 19030, with her husband, Gerald | Greenleaf, was found dead today in her room at the Greystone Hotel on Broad- way with a bullet wound in her right temple. The body was found by the manager of the hotel when he went to the room to collect the weekly bill. An assistant | medical examiner said the bullet had passed entirely through the head and was found on the pillow beside the body. The revolver lay on the floor by the bed. Police were at first inclined to term the death a suicide. Later Inspector Prancis J. Kear, commanding Manhat- tan detectives, announced police had deferred calling the case a suicide pending further investigation, because of notes left behind by the husband. Police learned the husband was last The manager of the hotel turned over to police a letter sent him by the hus- band, in which Greenleaf, it was said, announced he was going to drown him- | self. Police were seeking the husband for questioning. 1 N told the League of Nations Assem- d, and es were Dr. Yen informed the Assembly new demands made by the Japa- nese were “absolutely unacceptable.” Meanwhile in Shanghai commanders of both armies had issued orders to stop fighting after withdrawal of Chinese troops beyond the limit of 12, miles fixed by the Japanese ever, Chinese authorities said fighting was still going on in two sec- tors after ‘he instructions had been issued. In Tokio the Privy Council and cabinet reached a compromise on the question of an appropriation for the Shanghai military ex- ace demands. How- Parliament was decided upon for The cabinet yielded to the council on the special ses- authorize a bond issue of about $5,000,000 to tide over the expenses until the Diet met. Cficials considered that cessation of hostilities at Shanghai paved the way for authorization of a round-table conference of all interested there. The Emperor and Empress were hosts at luncheon at the imperial E:lace to the members of the Manchurian Inquiry Commission of the is on its way to.China. Failure of Efforts For Shanghai Truce Reported to League By the Associated Press. GENEVA, March 3.—Negotiations for | an armistice at Shanghal have broken down, Dr. W. W. Yen, the Chinese spokesman, told the League of Nations Assembly this afternoon. Simultaneously Dr. Yen's office pre- sented a report to Secretary General Sir Eric Drummond of the League, asserting that Japanese armistice terms as presented to Vice Admiral Sir How- ard Kelly of the British Asiatic Fleet, were “absolutely unacceptable. The report added that continuation ef | hostilitles was unavoidable. The report, in the form of a note signed by Dr. Yen, asserted that the Japanese terms “show a radical depar- ture from an understanding reached aboard the (British flagship) Kent.” The note sald the Japanese sugges- tions were “tantamount to conditions of surrender and were absolutely unac- ceptable.” Resistance “Only Alternative.” The Japanese terms which were de- nounced by Yen provided that the Chi- nese withdraw their troops first to a distance to be determined between the Chinese and Japanese authorities and that thereafter the details and dur tion of an armistice should be deter- mined by similar direct bilateral ne- gotiations. Yen's declaration before the Assembly followed closely along the lines of the note to Secretary General Drummond and he asserted that China’s only alter- native in the presént situation was “further resistance to Japanese attacks.” Yen gave the Assembly what he said were full details of military operations in the Shanghai area during the past 48 hours—operations which resulted in substantial gains by the Japanese while he added, peace parleys were going on. Defends Nation's Integrity. Speaking in perfect English, Dr. .¥en ngpenled for execution of the terms of the League covenant in defense of China’s political independence and ter- ritorial integrity “against Japanese ag- gression.” “We ask," he said, “that you recognize that the covenant has been broken We ask vou to declare that there is in Manchuria, Shanghai and other parts of China a terrible state of affairs for which my country bears no shadow of responsibility. “When the Assembly has made this deelaration it will have begun to mo- bilize the moral forces by which we still believe this conflict may be solved and ended.” Fifty Member States Meet. Pifty member states of the League met to consider the conflict in an ex- traordinary session of the League As- sembly which many expected to be one of the most important meetings since the League was founced. China called the meeting under an article of the League covenant by which the powers undertake to apply economic sanctions in conflicts such as that in the Far East. She resorted to that last appeal only after the League of Nations Council had failed to end the fighting. The Courici] is composed of 12 mem- ber states and is dominated by the great powers. The Assembly is a com- mittee of the whole in which the small Countries have equal voice with the arge. This morning’s o meeting was brief, lasting only long enough to elect (Continued on Page 2, Column 1.) —— {CARDOZO CLEARS DOCKET ALBANY, N. Y., March 3 (#).—Chiet Judge Benjamin N. Cardozo, who short- ly will step up from the Court of Ap peals to the United States Suprem: Court, was to meet for the last time today with his associates on the Stite’s highest court. Judgs Cardozo called a ial ses- slgl;\ h'.o h:leflr l{hf docket cases bm whie! e participated. He ly will go to Washington about «.fl?:m- dle of this month.