Evening Star Newspaper, April 11, 1932, Page 2

WH”NEY UN SIANfl: “Dumbest on Wall Sireet” WHITNEY TOO BUSY TO DENY UNFLATTERING SOBRIQUET. DENES BEAR RADS President of Exchange Prom- ises Complete Co-operation in Senate Probe. (Continued From First Pege.) THE EVII STAR, WASHINGTON, D. €. MONDAY, APRIL 32. 11, 19 | i { | »d about reports reacting the | tee that a “black Saturday bear planned for last Saturday.” aid all he knew about that ras information passed on to him by Senator Walcott The exchange president mentioned American _ Telephone i ervice of New Gas of eferred raids. No Bear Raiding, He Says. id had been “no liquidation there quiry was evidenced b the committce room the expancive he y of the cor Whitn ing rcom a tteemen. but was pre- rs of newspaper men Norbeck called the meet- with Chairman | Claude Branch of | 1. appearing as counsel | orn, Whitney read a unica- nate ntion to the fact the' offices throughout the nge had equested re Friday noon,” s intent to give all the data requ Whitney explained it had been im- | possible for him to give voluntarily the facts asked for by Senator Walcott Fri- day. He did emphasize, however, the determination of the exchange to co- operate with the Senate. Submits Data on Shorts. Reading in & clear voice, the Ex- | change president said he had data showing the complete short position on the Stock Exchange up to April 5, and said this alrea had been made public. It would be almost impossible to go into every det ed by the com- mittee. he said, many short accounts having been in existence for months, He asked permission to file photo- raphic prints of some of the records, in order to avoid delay.” When he concluded, the committee counsel asked for a copy of the Whit- B2y statement. Behind Whitney sat Roland L. Red- mond, counsel for the Exchange. The witness submitted data, already made public, showing the stocks in which short selling appeared between May 25, last year, and November 1. Subject to Expulsion. Senator Couzens inquired if Whitney thought that represented all the short selling in that period. “I am confident it is so, so far as our members are concerned,” he re- plied. “Members are subject to expulsion if they do not answer our questions.” Mrs. Ruth Pratt, Republican Rep- resentative from New York, stood on tip toes among the crowd of spectators Just inside the door of the room. Whitney said the short selling data had been given to the press “to show the public that the exaggerations in regard to it were purely ridiculous.” Senator Brookhart then asked about yeports “of an attempt to stage a hear raid last Saturday that would make the day a black Saturday.” “I have no knowledge of a bear raid except some statement made to me by Senator Walcott last Friday regarding some operations in United States Steel,” Whitney replied. “We do not have any bear raids.” Discuss Secret Telegram. Senator Blaine (Republican, Wiscon- son) asked if a telegram received here by Walcott should be placed in the Couzens said that as members of the committee had not seen the telegram Blaine's question should be considered 1n_executive session. Blaine said he wanted to use the tele- he basis for examination of | and Chairman Norbeck | sald the question could be decided later Senator Glass (Democrat, Virginia) demanded of Whitney to know what kind of short selling is legitimate and what is illegitimate. “A bear raid may be short selling or 1t may be long seiling,” said Whitney “1 say it is illegitimate because it de- | s the market.” | ation was interrupted by | who asked Whitney I with submission of the | s up to the opening of business | Covering Data Not Available. nse to questions of Branch, his records did not he short dealings in which short were made on nator Gore, Democrat, “These daily trans- ve much effect on in offsetting each referred to a state- i to Herbert Hoover, de- | ot those who *“rush when prices have been \owledge of that state- they. gressional Library and by Mr. Hoove ing Journal, replied icle right ar | in 1912 | Ric ! he apeared in testifying foday before t ICHARD WHITNEY president of the New Stock Exchange in 1930, after legend had dubbed him dumbest man on Wall Street.” became York | He was the youngest head the great trading board had ever selected—41— and it is said he was too busy to bother with denying the story which earned him his unflattering sobriguet. The tale was that on “Black Thurs- 7" of October, 1929, he stepped up to the steel post on the floor of the exchange and bid 205 for 25,000 shares of United States Steel—at that time quoted at 194. This was hailed as an heroic gesture designed to stop the plummetlike drop of stock prices. Had the incident actually occurred, it would have cost Whitney a mere $4,000,000 in losses to date. Facts at Variance. The facts of the case are somewhat at caused him to become known as “Twen- ty-five Thousand Shares Whitney." When the crash of 1929 came, Whit- ney was vice president of the exchange The president, E. H. H. Simmons, was in midpacific, so Whitney was the nominal head of the organization. It is said he walked across the floor of the exchange on the day his famous pur- chase is supposed to have been made, and seeing Steel quoted at 205, ordered 10,000 shares. He then moved on to execute another order. Suposedly only 200 shares of the 10,000 ever were delivered. Whitney was a governor of the ex- change at the age of 31, attaining that position four vears after he organized his own brokerage concern. He has owned a seat on the exchange since he was 2 Six feet tall and weighing over 200 pounds, Whitney was a Harvard crew- man in 1910, graduating from that col- lege in three years. He went imme- diately into finance. His attitude toward short selling was stated last Fall in a series of addresses defending the practice as a cushion ulative market apt to rise too high. He claimed bear covering constituted an automatic and necessary source of pur- chasing power, that a market in which no one ever had to buy stocks in order to cover short sales might go out of sight. Data Accumulated. Nevertheless, Whitney ordered brokers to report their short sales, for the first time accumuiating accurate data on the short interest in the market. His figures showed just how much short selling is done in any issue. The exchange has a ruling forbid- ding bear raids. When evidence ap- pears indicating that practice has oc- curred, Whitney orders the brokers con- cerned to produce their books. Such a charge never has been substantiated in recent years. A short time ago the exchange issued a ruling designed to limit short selling by restricting the lending of stocks. LINCOLN’S KIN TO SPEAK Blind Cousin of Civil War Presi- dent Due Here Wednesday. N. C. Hanks, a cousin of Abraham Ln=oln, will deliver a lecture on optim- ism Wednesday night at 8 o'clock in St. John's Parish Hall, Potomac and O streets, Georgetown. Mr. Hanks, who lost both eyes and hands in a mining accident years ago, has educated himself and has become self-supporting and practically inde- pendent of help. {000,000 and was | 000.000.” | “By whom?" asked Whitney “That is what I want to know,” re- plied Brookhart . Says Public Started It. “By the public, who thought it was a | good investment at the price,” sharply i1 ded Whitney. “I am just a broker, and I had no | part in the rise or fall of the stock.” Glass asked what percentage of the people who speculate know anything bout the intrinsic worth of stocks. Whitney said he had no figures to answer that question, but that the in- “pushed to $1400,- Explains Bear Raids. t asked Whitney “to run a for us so we will know who t would give an 10,000 shares, as to demoralize the © place on the Ex e It can't.” ed Wi ey if he was e Whitney with J. P He sald he was a business for Mor- to do any 1pal busine ng to do with organized by Some of Stock. specific. 1 own some I bought at 50 and it 5. if Whitney asked a mistake mi ke," replied, re- the Stock Ex- amid laughter. id the “facts stated by ntative La Guardia have been 1 to me to be quite contrary to the parently referred to the charge turday in the House by Repre- sentative La G rdl ened if the Senate inguiry on short sell- carriec. out khart thex went into the history | room and spectators stood on desks and day and Mr. d Corporation, which he ;chairs in the rear. There were far more ‘considerably improved." the Unit called a Morgan utility holding com- 'b‘lnlan sald it mmqu $105.- wished to de-| mation was readily available in vari- financial manuals | “What percentage of the people ever | investigate them?" Glass asked “I have no idea.” Whitney replied, | but added that brokers were not to blame if the investor did not study the | statistics He said no corporation made its po- ‘tion “better known than the United | Corporation, and if the people of the country do not care to take advantage of that information, I do not know of anything the brokerage fraternity can do about iL." Sees Speculative Fever. ng to Blaine, the stock ex- resident agreed that “psycho- possibly had an effect in ! Reply change logical factor: a stock boom Blaine irsisted large holders of stock a speculative fever to lure the uspecting public into the purchase of securities.” Whitney said the records of 1929, “up to the panic,” showed the increase in | capitalization of corporations was great- |er than the ratio increase of brokers' |loans “and I see no reason why brokers should be blamed for any speculative fever.” As Whitney answered the committee's questions he tore up pieces of paper into fine bits and scattered them on !the table before him. | The big committee room became more (Republican, New |and more jammed and spectators crowd- attack of pneumonia, and physicians York) that a “panic” had been threat- |ed up to the chairs in which Whitney said prospects for his recovery were 00d |and Senasors were seated. There was not a vacant spot in the women than men in the audience. Senator Gore allowed one of the spe- tators to sit on the arm of his chair. ard Whitney (right), president of the New York Stock Exchange, as Senators Goldsborough, Townsend, Walcott and Richard Whitney. variance with the rumor which | to a falling market, a check on a spec- | he Senate Banking Committee. Left to —Underwood Photo, 'HURLEY DENIES RACE | FOR VICE PRESIDENT " ORG. 0.P. CHAIRMAN| | ___ (Continued From First Page) | good a soldier not to accept the position and do the best he can to bring a Re- publican victory. And that appears to be about the situation in which the matter stands today. ‘With reference to the vice presidential nomination, Secretary Hurley said today: “I am not a candidate for the vice| presidential nomination and I will not | be a candidate for that nomination. I} |am for Vice President Curtis for re- | nomination.” | Writes to Supporters. The Secretary has written to his most intimate friends and supporters in Okla- homa urging them to see that his name is not brought before the Republican State convention in Oklahoma on April | 25. He has coupled with this a request that the State convention instruct its | delegates to the national convention to | vote for Vice President Curtis for re- nomination. Mr. Hurley himself plans to attend the State convention and. if it becomes necessary, he will see to it that there is no instruction of delegates for umself for Vice President. Ancther member of President Hoo- ver's cabinet”who has been persistently | mentioned for the chairmanship of the | Republican _ National Committee is | Postmaster General Walter F. Brown Mr. Brown, like Secretary Hurley, is | not hankering for this job, ‘and has said as much many times. But if the Presi- | dent should urge him to take it the | Postmaster General undoubtedly would permit himself to be drafted. There are | | Republican leaders in Ohio who seem ! to_be convinced Mr. Brown is to be| called upon to manage the Hoover cam- paign. In support of this contention they point to the fact that Mr. Brown has been placed in charge of the pre- convention campaign in Ohio, and that | his leadership in that campaign ex- | tends far beyond the boundaries of the IBuckeye State. | Some Opposition Possible. | Purthermore, it is now understood | that Mr. Brown is to be selected as Ohio’s member of the Republican Na- tional Committee in place of Maurice Maeschke. ~ Mr. Maeschke, veteran leader in Ohio, has fallen in with this plan. When it is carried out Mr. Brown will become a_full-fledged mem- ber of the National Committee, and | | while it is not necessary for the chair- man to be chosen from the ranks of the National Committee, his place on the committee will, jt is believed, strengthen his position. Some opposition may be found in the National Committee to Mr. Brown on the ground that he is opposed to na- tional prohibition as it now stands and believes the Republican party should | stand for a change. But thise opposi- tion, it is said, is not so serious it will prevent his selection for the chairman- | ship; certainly not if the President in- | dicates his desire that Mr. Brown be elected chairman. Secretary Hurley ‘has, by the way, been included in the | so-called “wet” group of the President’s | cabinet, a group which has advised that the G. O. P. take at least a stand for | resubmission of the eighteenth amend- ment. Opposition to Mr. Brown as chairman on theprohibition issue might also range itself against Secretary Hurley for the job. What President. Hoover will finally determine in regard to the chairman- ship must become known before very long He may have already reached a conclusion. Today there were those who strongly insisted Secretary Hurley was |to be the man. But other Republican leaders were just as convinced the se- lection would be Postmaster General Brown. | W. M. Butler Mentioned. 1t is possible the President may desire to draw some outsider into the picture | as leader of the National Committee. Secretary Hurley and Postmaster Brown | are both already very much in it, not | only as members of the cabinet, but | also as campaigners for his re-election Former Senator Willlam M. Butler of | Massachusetts, who handled the Coolidge campaign in 1924, has been mentioned along with many others | Hurley and Brown are well satisfied | | with places in the cabinet. It has becn much more the custom for a chairman of a national committee to become a | member of a President's cabinet than | for a member of the cabinet to step | out- to become chairman of a national | cominittee. An exception to this rule was former Secretary of the Interior Work, who gave up his office in 1928 to run the Hoover campaign. Although Work conld have re-entered | the cabinet after the election, he said he did not desire to do so, since he had served both as Postmaster General and | 'as Secretary of the Interior and had had all the experience along those lines he desired The report today which couples Mr Hurley’s name with the chairmanship includes his resignation from cab- | inet now, but with the undm-mndmg; that if the President is re-elected he is to be Secretary of State. LEITER PASSES CRISIS IN PNEUMONIA BATTLE Physicians Say Prospects for Re- covery of Chicago Sportsman- Capitalist Are Good. By the Associated Press CHICAGO. April 11.—Joseph Leiter, merchant, capitalist and sportsman, was reperted gaining today in his fi against severe illness that followed an good. The crisis, they said, passed yester- DEMOCRAT LEADERSIAMAZING KIDNAP | ASSAI BONUS BRL, DEAL REVEALED Hearing Immediately After Prescntation. (Continued From First Page) ple of the United States and not alone the veterans. “We have so serious a congestion and so serious a shortage of currency Lo[ carry on business that this country is in & partial paralysis. The most effec- tive way to reach this difficulty is to mit this money at this time for the sake of the business men of this coun- try.” Representative Connery, Democrat, of Massachusetts, who testified after Pat- man and Owen, issued a challenge to Henry L. Stevens, jr, national com- mander of the American Legion. to poll his membership on the bonus question. “1 predict he will find that 95 per cent of the Legion is for the bonus pay- ment.” Connery said. Stevens recently issued a statement in opposition to cashing the certificates, As the committee ended its hearing for the morning, Rainey issued his statement, saying “once inflation is started. the currency will immediately drop below par value, and it is impos- sible to check its downward trend.” He said, however, he was not overly optimistic of stopping passage of the legislation by the House Sees Harmful Results. At about the same time, Senator Robinson id he did not “favor the cash payment of adjusted service cer- tificates” and “convinced that legislation appropriating more than two billion dollars for that purpose will produce harmful results that will more than offset the benefits to be antici- was | pated.” “If, as some propose.” he said, rency or Pederal Reserve notes may issued in payment of adjusted service certificates, why all this confusion and controversy about increasing taxes to | balance the budget. if it can be accom- plished by the simple process of print- ing money?” Disagree on Exact Terms. Representative Patman, who was the first witness. said most of the advocates favored paying the certificates in Unit- ed States notes, though they were not agreed on the exact terms of the bill Among those in attendance were Brig Gen. Frank T. Hines, veterans' admin- istrator, and John T. Taylor, legislative representative of the American Legion, | whose head, Stevens, has opposed pay- ment of the certificates. “Unless we can show that payment of the bonus will benefit the country and promote the general welfare,” Patman declared, “we are not entitled to have this bill passed “If it will be the least bit detrimental to the general welfare, we are not en- titled to win “There are 750,000 able-bodied vet- erans out of work. There are 75,000 slightly disabled veterans who are out of work. Then there are 800,000 vet- erans working only one or two days a week. “There are only 600,000 certificate holders able to borrow who have not avalled themselves of that opportunity. This indicates that four-fifths of the certificate holders need the money. “The question is: Can the payments be used as a vehicle to bring the coun- fry back to prosperity? We believe can ‘We think a bond issue would be detrimental to the country and pro- pose the issue of currency instead.” The testimony began before the com- mittee at about the time Representa- tive Fish, Republican, of New York was telling a meeting of the American Bankers’ Association that the proposal to cash the unpaid 50 per cent of the bonus “would exhaust our gold re- serves and shove us off the gold stand- ard and make the dollar look like 30 cents.” Soft vs. Sound Money. “It is in the last analysis, the same old fight of soft money against sound money,” Fish said. *“All it requires is a few gallons of lubricating oil and a few bales of paper for printing money.” Acting Chairman Crisp of the Ways and Means Committee put into the record a telegram from Maj. Gen Smedley D. Butler, U. S. M. C., retired, favoring the bonus legislation. The Butler telegram said he regretted he could not attend the hearing to testify in person “in favor of the prompt pay- ment to the soldiers of the unpaid por- tion of the bonus, which I feel justly due them. ‘I have always been and shall con- tinue to be in favor of this bonus,” he said “Unfortunately, however, I cannot possibly leave the present campaign in Pennsylvania to come to Washigton at this time. “1 have traveled through 42 States in the past six months and everywhere find the soldiers in great need of assist- ance. The Nation owes them this return | g for their services, “Double Gold Standard.” Patman sald advocates of the pay- ment were hopeful that “this legislation not only will pay the certificates, but it will put sufficient money in circulation 50 that commodity prices will rise “Whether the amount wc propose to pay out is enough to accomplish this, I don’t know,” he said. ‘I don't think this amount is too much. The question in my mind is whether it is not too little. “We don't expect to start out on any wild program like Germany did. We don't want to put out five times as much money as the country needs. We are willing to tie to a 40 per cent gold basis “We have $4,000,000,000 in gold, ac- cording to Treasury statements. That is enough for $10,000.000,000 in currency But there is only $5,500,000,000,000 in currency in circulation. The trouble with this ccuntry is that it's on a double gold standard.” e APPEAL IN CANNON’S CASE FILED BY U. §. Government Seeks to Reverse Rul- ing Sustaining Demurrer to Indictment. Assistant United States Attorney John J. Wilson today filed in the Dis- | trict Ccurt of Appeals the Govern- ment’s appeal in the case of Bishop James Cannon, jr. of the Methodist Episcopal, Church South, and his as- sociate, Miss Ada L. Burroughs of Rich- mond, Va. charged with violation of the Federal corrupt practices act in failing to make proper reports of con- tributions recelved during the presi- dential campaign of 1928. The Government seeks to reverse the ruling of Justice James M. Proctor sus- taining a demurrer filed to the ingdict- ment. Proctor held that the 10 co failed to charge any offense unds Federal corrupt practices act, He point- ed out that the indictment failed to allege as a fact that the Jameson con- tributions were reported and accounted for to Miss Burroughs or that she had Leiter's condition was The pneu- monia developed while Mr. Leiter was recovering from heart allments that & pt him in physicians’ care for months. any knowledge of them. He declined lotplll on the constitutionality of the act. Hearing on the appeal 15 not expected to be reached in the appellate court before the Fall term. 1 | | | | | Attacks Are Made at House]Rendezvous With Lindbergh Baby Abductors Kept in Graveyard. __(Continued From First Page) of Long Island Sound. The repre- sentative of the kidnapers spoke with a Teutonic accent and had the ap- pearance of a sailor. He indicated the baby was aboard a beat not a great dis- tance from New York The first proposal of the kidnapers was that the money be left in & speci- fled place and that the baby be re- turned several days afterward. Il was explained the kidnapers desired ample time to escape. Lindbergh would not agree to this As stated in one of the “Jafsie” advertise ments, he wanted it to be a “C. O. D transaction. Earlier he had insisted on delivery of the baby in advance of payment of the ransom. He gave his word of honor the money would be paid without trickery and without police knowledge. Rendezvous in Cemetery. Another meeting with the kidnapers’ contact’ man took place on March 24 This parley was held in the ghostly surrounding of a cemetery in the New York area. Dr. Condon and Col. Breckinridge were present These preliminary conferences had to do largely with such details as whether the baby or the money should be de- livered . first, and how the kidnapers could give definite assurance they bad the child in their possession. On the morning following the grave- vard rendezvous, a “Jafsie” advertise- ment mentioned receint of a package “accepted as the real article.” This package, apparently delivered at the cemetery, presumably contained some article of identification, possibly a picce of the baby's garment. It seems that much of the delay in effecting an immediate culmination of the transaction was due to falure of the kidnapers to produce the child's fingerprints. Lindbergh contended that if the kidnapers really had the child with them, it was not an unreasonable requirement that they take its prints and send them to him as a bit of con- clusive evidence Lindbergh secured his set of prints from latent impressions found on the crib and various toys which Baby Lind- pergh had handled. The prints, in- visible to the naked eye at first, were made photographable by a delicate scientific process of dusting with fine nowder. The powder adheared to the oil and moisture of the print, revealing the loops and “whorls.” Decides to Pay. It is now believed Lindbergh finally decided to take a chance and pay the money without waiting further for pro- duction of the fingerprints. He is un- derstood to have been urged to delay payment no longer. On March 27 this ad appeared “Money is ready. Furnish simple code for us to use in paper.” ‘Throughout the negotiations the kid- napers also maintained communication with the Lindbergh representatives by means of the telephone and mails. Lindbergh declined to permit police or others to listen in on these phone calls or to examine the letters. The final agreement of both sides was that the money would be paid by Col. Breckinridge at a designated place some distance from New York, that period of eight hours would elapse without word from the gang, and that then a message would be sent revealing the baby's whereabouts. Late on the night of April 1, which was a Friday. Col. Lindbergh, Col.| Breckinridge and a third man, believed | to have been John Fogarty, private de- | tective, departed in Lindbergh's car. They carried two black suit cases and heavy wraps. The money presumably was in the bags. Just where they went is not divulged, | but the money is understocd to have | been turned over to a representative | of the kidnapers on the following morn- | ing. Promised Message Arrives. On Saturday, April 2, there appeared | the advertisement: “Yes, everything | OK.” This is taken to mean that the | money had been paid and all was ready | for the kidnapers to carry through their | part of the contract. The promised message came. It said the baby could be found on a boat in a certain locality off Cape Cod. On Sunday and Monday, April 3 and | 4, Lindbergh and Breckenridge, with a | third man, were seen flying in_the | vicinity of Martha's Vineyard. They were lcoking for a yacht named Sally | or Nellle. They did not find it. They did find a number of rum craft in the general vicinity specified Tuesday slipped by with no word of any kind from those who had taken the money. | Last Wednesday the situation reached a climax. Lindbergh's anguish Wwas voiced in | the advertisement which appeared that | y: “What is wrong? Have you i sed me? Please better directions.” | At the same time Lindbergh fur-| nished the Treasury with a list of the serfal numbers of the currency paid to | the abductors. The numbers had been | taken by the bankers. Norfolk Angle Fits. The reason Lindbergh felt the Nor- folk negotiations had “no specific sig- | nificance” was apparent to those who knew of the dealings in the Bronx with | Dr. Condon. Lindbergh held there | could not be two authentic “go-be- | tweens” and he was thoroughly con-| nced he was already in touch with the | “properly identified” group. However, there were angles to the Norfolk developments that fitted in with the general theory that rum run- | ners were involved In the crime and | that the baby was held aboard a boat | off the Atlantic Coast. The Norfolk | emissary of the self-styled kidnaper was unable to furnish Lindbergh with ' the identifylng signs specified in the ransom note, it 1 understood. The Star today is able to discl other interesting phases of the kidnap- ing, which it has withheld in u desir to co-operate with Lindbergh in the efforts to obtain the baby. Nearly half an hour expired after discovery of the child’s absence before police were notified. Lindbergh showed the ransom note to a police officer of Hopewell. Then he pocketed 1t and stubbornly refused to show it to any other officer throughout the investign- tion 1t 15 belleved the colonel adopted this attitude in the fear the baby would be put to death if he allowed police to attempt to trace the kidnupers. He decided to conduct all negotlations | himself ! It can be sald that Lindbergh gave virtually no aild to investigators during the first several weeks of the inquiry beyond permitting them to examine the remises at Hopewell and run down any eads which they developed as a result | He was astounded and angered at th publicity, This induced him 1 an attitude of reticence na to detalls of the kidnaping vestigative steps as he ridge were taking. Police Not Advised. The police were nol advised that Lindbergh had received phone calls and letters from the Kidnapers, nor that contact had been established with them through Dr, Condon all adheved religlously to what & “ecode of honot” under which he intended to keep fwlth with the eriminals who had stalen his soi In the Mckkmmm. A aleeady men tioned, was the lurking fear that haim would come to the child M he sought police help. ‘The first flurry ¢f publiclly and po- and Breckin TREASURY DEPARTMENT & sed a list of States Notes of the <5 denosinaty the $10 deromination Reserve Notes of tha 20 denon If any of the currency so 1i be appreciated if received it and imm Fashingtoa, D. C., b telegraph, very truly yours, $20 DENOMINATION UNITED STATES OF AMERICA GOLD CERTIFICATES AND FEDERAL RESERVE NOTES B 00005496 A B 00014430 A 5798 A $10 DENOMINATION UNITED STATES OF AMERICA GOLD CERTIFICATES (Series of 1925) 00094485 A V0105779 A 00200531 A 00242811 A $5 DENOMINATION UNITED STATES NOTES (Series of 1928) Piste Letier Number Upper: The first page of the circular issued to the banks throughout the country from the office of Walter C. Wood. treasurer of the United States, in search for the ransom of $50.000 paid by of his kidnaped son. This information ment issued through the New Jersey Lindbergh. The circular of nearly 60 currency and denominations of 5, 10 and 20 dollar notes. Lower: These are some of the, serial numbers on the bills paid by Col. | Lindbergh to the supposed kidnapers of his child dressed. and United States Gold Certificates and Federal ation. ®ill take note of tne source from which you liately notif; WASHINGTON the cerial nusbers of certain United on, United States Goid Certificates of sted is received by your bank, it will y the Treasurer of the United State: W O WOODS, Treasirer of the United States, of 1928 1 numiber is proceded by the letter “A™ are proceded by the letter are Federal Keserve B is precoded by a star (%) and followed by the Plate 371416 A * 0416424 A * 457256 A was disclosed Saturday night in a state- | te police. with the authorization of Col. pages gives the serial numbers, kind of —A. P. Photos. | LINDBERGH OFFERS TO REPLACE KIDNAP RANSOM WITH GOLD (Continued From First Page.) |FARM FEDERATION URGES 65 PER CENT | SURTAX ON WEALTHY (Continued From FPirst Page.) of the New Jersey State police, an- nounced that “a noted character” was taken into custody and was being ques- tioned. In a statement he said: “Early in the investigation, a noted character was reported to me as not having been seen since the kidnaping. An informant definitely connected him with the crime. and this is one of the lines of investigation referred to in earlier bulletins.” Acting Police Capt. Richard Oliver ennounced in New York that the man is Sylvian Ortlieb. Oliver said Jersey City police had requested New York police to pick up Ortlieb. Just what connection he is thought to have with the case has not been revealed. According to the News today. don, through the “Jafsie” ads, con tacted a representative of the kid- napers. This representative told him Condon said, that if the $50,000 ran- som were not paid by April 8, the price would be raised to $70,000. The idnapers’ agent added “Tell Lindbergh we can hold out just as Jong as he can.” NOTES OF 1928 SERIES. NEW YORK, April 11 () —The $50,000 paid by Co. Charles A. Lind- bergh in an effort to buy off the kidnapers of his son is all in notes of the serfes of 1928 he bills include United States notes of $5 denomination, United States gold certificates of $10 denomination and United States gold certificates and Federal Reserve notes of $20 denomina- tion A complete list of the nu bills has been sent to ev bank in the country T ON CANADIAN CLUES, nbers of the national LANSING, Mich, April 11 (@ Two detectives of the Michigan State police. who were In Toronto and Montreal last week tracing & reported the Lindbergh baby kidnaping were back at headquarters here today, with “nothing to say" about the trip Lyle Hutson and Willlam Watkins, the detectives, went (o Canada last week and reports were that they had attempted negotlations with former members of Detroft’s purple gang for nformation — concerning - the baby's whereabouts. Hutson denled the two had been in communication with New Jersey au- thoritles following their return and sald he did not know the identity of the Kiduapers We have nothing to say trip yet,” he sald clue in about our Hee activity hurt the negotlations tre mendously. Unfounded teports were | pubtianed (hat Lindbergh was o close coroperation with the police and that the latter ware ubout o clase tn on t Kiduapers. The negotiations were b \ off wid effarts to rosume them proved tutlle far days The cwse seomed to have reached a ctandstill when the services of the “un derwarld protfered by Mareis Rosner sioabhclalking New York lovestigan tor " were enllsted Rosner suoe 3 i conyineing Breckenvidge and Lind borgh he oould il the kidnapers thiough — underwarld — aoquisintances Bpttale wnd Blta then entered the ple- Gires With & blare of publicity and onee more damayed Lindbergh, The underworld got nowhere, Con- | posed a 3 per cent tax on the total rev- enues of electric power companies and on the value of natural and manufac- tured gas produced. motor vehicle tax in the bill, as had Gray Brenckman approved the increased income and inheritance taxes and the gift impost voted by the House. Favors War-Time Gift Tax. John A. Simpson of the Farmers' Union advocated “estate and gift taxes will redistribute the wealth of ihe Nation,” urging that they be placed “at least as high as in the war days.” The 65 per cent surtax proposal ad- vanced by Gray would apply on in- comes of more than $5.000,000 His suggestion on securities promptly drew criticism from Chairman Smoot and Senators Reed, Republican. of jlvania, and Bingham, Republic- of Connecticut. Reed said it would g faith to issue tax-exempt bonds and then tax the income from them Gray replied justified only by the necessity of bal- | ancing the budget. He | would tend to prevent gr the action from fleeing into tax-exempt srcunuesl to escape the increased surtaxes. Legality Questioned. Smoot questioned whether the Su- preme C would uphold such a tax on income of tax-exempt securities. Gray said he thought it might. His pian, he said, would apply only to Fed- eral tax-exempt securities Its opposition also was expressed to eral sale tax, manufacturers’ excise gasoline tax and tax on b checks, all of which have been pro- posed but not incorporated in the House measure. t taxes were proposed by the . tea, spices, tapioca, and banan g the second-class postage advocated to yield an esti- mated $25.000,000 Wants Swing Plan Restored. sald the federation hoped the rtax amendment, once written tax bill by the House but stricken out on reconsideration. would be put back into the bill by the Senate. This called for a maximum surtax of 65 per cent. The surtaxes now in the bill range upward to 45 per cent Gray advocated chauging the cor- | poration income tax to a graduated | basis with rates at 10 per cent to 16| per cent. Income from the increased | corporation tax thus provided, he esti- | mated would vield $50.000.000. Regarding this recommendation, sald Figures show a fairly representative percentage of the industrial groups in the United States in 1931 were making dividends and consequently could stand creased taxation.” Meanwhile, Senate Democrats ar- ranged to confer tonight upon the gen- eral legislative outlook, with their dis- cussions expected to center around the pending revenue bill and economy measures Senator Robinson of Arkansas, the minority leader. said he might have a | statement to fssus after the conference. Despite the great number of spokes- men 1o be heard in opposition to the bill's numerous severe imposts, the com- mittee has agreed definitely to end he | German alr Col. Charles Lindbergh for the return | He opposed the | could be| | that OFFENSIVE ARMS BAN URGEDBY L. S, | Gibson Asks Geneva Parley to Eliminate Tanks, Gas and Mobile Cannon. ___(Continued From First Page.) witzerland supported tion Premier Tardieu of Prance and Count Rudcl! Nadolny of Germany gave a rather guarded approval, but Ugo Cav- allero, for Italy, expressed cordial sup- port. The § the American statement of French policy, will supplement a previous on for an internationa! police guarantee security, is expected to be scuewhat reserved because of afve fallure of the Danubian Conferences at London to reach an agreement to aid the European southeastern states. German Views Prepared. Later the German statement will be presented, and it likewise. will probably be reserved on account of the German { lections, a factor which might intrude itself, tco, as a softening influence on the French statement. Undoubtedly when the delegates re- open the debate other questions will arise, and conflicting French and Ger- man theses will be among them The French plea for security seeks to realize itself through the establishment of an international police force to keep the peace under the control of the League of Nations The Germans and their former allies, themselves disarmed, ask that the World War victors reduce armaments to & el with their own. Enters Second Stage, The first stage of its sessions, from February 2 to March 19, permitted the conference to organize and plan its work on the basis of the draft conven- tion and the proposals of 54 nations. Beginning now its debate on vital prin- ciples, the conference enters its second major stage. Strangely enough, the basis for both French and German doctrines is found in the same paragraph—Article 8 of the League covenant, which is a part of the Ppeace treaties. “Members of the League.” this article prescribes, “recognize that the main- tenance of peace requires the reduction | of national armaments to the lowest point consistent with naticnal safety and the enforcement by common action of international obligations.” Germany draws her inspiration from |the first part of this article which | speaks of “reduction of national arma- ments." France makes the latter justification, emphasizing safety” and “common action Basis for Adjustment Seen. Some observers here believe that re- cent negotiations have disclosed a prob- able basis for happy adjustment of French and German demands. Germany might be content with & recognition of her legal right to equality, and give assurances that this recogni~ tion need not lead to equality in fact. The French hold a strong hand in their actual military supremacy. The Germans have a strong card in their superiority in civil aircraft. A German acceptance of the French scheme for internationalizing civil aviation might be traded for a French concession upon the point of legal right to_equal armaments. The German concessions would please the French by eliminating the threat of power, thus increas] French security. French recegnition of Germany’s judicial right to equality of armaments would go far to appease German nationalistic sentiment, 'HANGING IN PRECINCT IS DECLARED SUICIDE Coroner's Jury Returns Verdict in N. V. Johnson's Death in Cell. | A suicide verdict was returned by & | coroner’s jury teday in the case of Neil Johnson, 32, of the 400 block of | Pourth street, who hanged himself withy | nis shirt in a cell at the first precinch | police station Saturday night. Botlhy | the police and two other prisoners iny the cell with Johnson were held blamea less by the jury. Police were inquiring today at roome ing houses and hotels in an effort i locate relatives of the dead man. hanging took place shortly after Johne son’s arrest for drunkenness. The two men in the cell with himi said they did not take Johnson seriously when he tied himself to the bars and Jjumped from his cot and failed to sum= mon aid until it was too late. The Rescue Squad made a futile effort to revive the man. . HARMONY SOUGHT AS ECONOMY GROUP MEETS WITH ROOP _(Continued From First Page.) tudy of reorganization for a long time nd it is known he has definite ideas regarding this subject. Also, he has de- | termined as to the governmental funce tions that could be dropped, if the au- | thority of Congress will permit such a step. The President is represented as being especially anxious to take this opportunity of thrashing out the mat- ter with the proper representatives of | the House, with the hope an agreement | will be reached and the necessary legis- |lation whipped into shape without aelay It was said at the White House today that no date has been set for another canference at the White House between | the President and members of the | House Economy Committee. The Presi- dent has intimated, however, that an- other meeting wiil be held and a date |set shortly. There is some lkelthood at the next meeting represente- tives of the Senate will be present. « Preparatory to such a meeting, the President is giving further study to the subject and endeavoring to put his ideas into definite shape. In this connection he conferred today at some length with Postmaster General Brown who, next to the President himself, is unquestion- ably more famillar with the srbject of governmental reorganization than other individual ccnnected with e Federal Government. His knowledge was acquired during more than two years when he was delegated by Presi- dent Harding to work out a complete plan for reorganization of the executive branch of the Government. Watches Developments. Mr. Hoover a few weeks ago sent a special message to Congress declaring the reorganization was essential not cnly in the interests of economy but also efficiency, in which he made some suggestions as a starter, principally along the lines of co-ordination of ac- tivities and in which he proposed that the Executive be given authority, with some restraint, to make the necessary transfers and mergers and eliminations. The President was represented today as watching carefully actions of the Economy Committee in its conduct of hearing following the agreements reached at conference at the White hearings in two weeks. With possibility of serious delay in the Senate Chamber over a threatened tariff struggle, the | leaders are desperately anxious to make possible passage of this bill before July, Wwhen the year begins. House last Saturda. Carlo Mazzoleni and Natale Vassenal of Italy are attempting to travel around Europe by water and land skis.