Evening Star Newspaper, April 13, 1932, Page 5

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WELFARE BOARD HITINRILEY CASE Two Representatives Criti- cized Authorities for Failure to Find Child in 1928. Failure of investigators to learn the wherezbouts of Edith Riley when her parents reported in June, 1928, that she had been sent away was criticized by Representatives Holaday of Tllinois and Blanton of Texas during the recent hearings on the Board of Public Wel- fare's 1933 budget before the House Appropriations Subcommittee Representatives cf the Weifare Board were questionsd at lengtn al the y care and develope. the fac. that the lasi complaint relative to Edith was filed in June, 1928. At that time the committe> was told an investigation was made and the girl's parents re- ported she “was gone,” but refused to say where. It _appea ther strange to me,” said Holaday, “that some further in- vestigation was not made when they reported that the child was gone and would not tell where she was. It seems to me suspicions might have been aroused as to whether the child was living or not.” Mr. Blanton said that under such circumstances he would have intensi- fled the invettigation. “It occurs to me,” he declared. at the refusal of the parents to tell where the children were would have doubled, or trebled, or quadrupled, the willingne: which search was being made f and that nothing would have deterred the worker from finding them. I mere- 1y make that as a suggestion.” Edith Riley, it was brought out by a subsequent investigation, had been con- fined in a dark closet in the home of her father and stepmother on Rhode Island avenue for at least a consider- able portion of a period of several years, The parents later were convicted on a charge of mistreating the child and were sentenced to jail terms. COXEY HAS BONUS PLAN Tells House German Money Would Solve Issue. Gen. Jacob 8. Coxey, of Coxey's Army fame, is to appear before tHe House ‘Ways and Means Committee tomorrow to argue in favor of cash payment of the soldiers’ bonus and the printing of money by Germany to pay repara- tions. Gen. Coxey, now mayor of Massilon, ©Ohio, said that under his plan Germany would print the equivalent of $11,500,- 000,000, place its country’s stamp on it, and France, in turn, would place its stamp of approval on this money when accepted. In turn, the Unifed States ‘would place its stamp of approval in accepting the money from France. Under Coxey’s plan the money thus printed would first go toward payment of war debt, before being circulated within German: SCHOOL NEEDS LISTED Public_school needs for the various communities wiil be presented to school sutherities by delegates from the vari ous civic and citizens' associations at the annual Spring joint conference in the Franklin School Administration Building at 8 o'clock tonight. The material will be used in prepa- ration of the school estimate for the fiscal year of 1934. ~The tes have been asked to submit thelf requests in writing. Committee ' BY WORK TO HALT 1929 PANIC i | Present Head of Stoc BY MATTHEW JOSEPHSON. Special Dispatch to The Star. NEW YORK, April 13 Fame is something frankly not relished by the great men of Well Street. Its owners would gladly yield up the credit end the glory; they would appear ill- informed, undistinguished, sluggish while quietly manipulating themselves into directorships of 60 corporations. Yet fame has attached itself to cer- tain men in spite of themselves. Richard Whitney, who has been at the head of the New York Stock Ex- change from the moment things went bloc and who has been figuring so ominently the last few days as a wit- ness before the Senate Banking and Currency Committee in Washington, owns a paradoxical fame. One after- noon he became known everywhere that telegraph wires go es “the man who halted the stock nic of 1929 It turned out that he had halted it oniy temporarily, but fame had already at- tached itself to him Known as Morgan Man. Mr, Whitney has been a popular president of the exchange ever since he | wok the office May 12, 1930, at the financially tender age of 41, “the voungest president we ever had on the | blg board.” He has been honored by ( the resolutions of his fellow brokers upon his “courage, resourcefulness, and '+ '+ rare qualitics of leadership.” One | noted grayhead among the financiers kas called him “a knightly gentleman who knows the ideals of the Stock Ex- knows its foes, its calumni- NANA)— On the other hand, some factions among the 1,357 member brokers have | considered him high-handed in cer- tain of his emergency policies. Mr. Whitney is known in the Wall Street grapevine as a Morgan man, a veritable field marshal of the far-flung interests | of the House of Morgan. | When the world's greatest financial bubble burst in the Autumn of 1929, no one was more irritated and flustered than the little group of dealers in { money who had been called “our lead- | n business and economic life to- | | Could the market, sinking away at a speed never seen before, be shored up | with any amcunt of money they could raise among them? These questions were not answered at the first flurried conference, or at those that immediately followed it. Really only one thing was | agreed upon in these early sessions: | Above all, that precious, elusive thing, confidence. must be restored. Whitney on the Job. | Wednesday, October 23, the market had fallen into the depths of the abyss. On the morning of “black Thursday” the bottom of the abyss gave way and the market plunged into a new abyss which was right below the first one. The experienced president of the Ex- change, but the vice president, Dick Whitney, was on the premises, hcpeful and ready to go. Of the legends that have been [told of devilish or angelic apparitions that arose over the field of economic the most glamorcus clings to | bis person | At 1:30 pm. on October 24, 1929, Dick Whitney, Morgan man, was seen ‘runnlrg across the floor of the ex- change toward post 2. According to one fevered report he charged into the ,crowd like a bull, roaring: “I bid 205 |for 25000 Steel” Instantly Steel steadied. The market rallied. Steel went to 2061;. Mr. Whitney had become the man of the hour and all that he did henceforth n was to have touch of magi ‘The E. H. H. Simmons, was away, | THE EVENING STAR. WASHINGTON, D. €, WEDNESDAY, APRIL 13, 1932. RICHARD WHITNEY WON FAME k Excl’lange Youngest President “Big Board™ Ever Had—Is .‘ ‘ Known as “Morgan Man.” ‘ = way he smiled, the look in his eyes merest ‘wisecracks—all were to be noted and related. |, The hero of the day looked per- fectly the part, as perfectly as if he | had been_selected with care out of an | army of Hollywood extras. He dresses impeccably; he is a big man physically, |over 6 feet tall and 210 pounds in weight, weight which he carries lightly | with the tread of a former Harvard | athlete In Line of Business. | His features are large, regular and somewhat handsome; the brow square, surmounted by jet-black hair barely beginning to turn gray; the eyes keen and dark, deep-set under prominent, downward-slanting brows. This hero, if one had been able to catch up with him during those turbu- lent days, would have explained that be was no hero at all. ful, deliberate pause, he would have for a place at the top of the financial | heap. Bg in Beverly, Mass, August L' 1888, of very old New England stock, chard Whitney numbers among his ancestors merchants in the India trade. His father, who died in 1901, was for a time president of a small Boston bank: his uncle Edward, a correspond- ent banker for J. P. Morgan. The Whitneys, an ambitious and cul- tured family, put Richard, like his elder brother, George, through a well known | grcove which for patrician youth is | Harvard, | team, After a thought- | pointed out that he had acted only in | the line of business, that he had bought merely on behalf of a banking consortium. Purthermore, he would | have pointed out that published reports | | were wrong. He hadn't bought 25,000 Steel, or anything like that amount When Mr. Whitney bid for 25,000 Steel that stock shot to 206';. so hopeful | were the speculators, and he actually ht only 200 shares at his price The grandstand play worked—for two days. On_ Saturday things looked so good that Mr. Whitney caught an early train for New Jersey, where he presided over a race meeting, ‘“something I really liked." The next week the panic was back. There were a thousand and one things for the young acting president to think ahout. “Confusion and fatigue harassed the Street. Those who saw Mr. Whitney closely admired him for the way in which he shouldered enormous responsibility and burden of detail, for the skill with which he carried out plans for restrict ing hours of trading, calling “holidays,” sparring for time. “Get Your Smiles On!” Frightened financiers listened to him, leaned upon him. It is still hard to tell which was more terrified—the stam. peded public or the camp of insiders who struggled to avert disaster. One | day Mr. Whitney and a group of col | leagues were issuing from a secret con- ference at 23 Wall Street. As they neared the door, Mr. Whitney exclaimed to the others: “Now get your smiles on, boys!" Thus, with their hearts almost dead within them, the plutocrats of hind their chosen captain, change. When a turn in the market came |ywpitecis November 14, amid rumors of new Whitney buying for Morgan and Rocke- feller buying of large blocks of shares, cheer upon cheer rose from the Ex- change floor. Wall Street claimed | credit loudly for bravely staying open, for conducting business as usual in the |face of the world's selling. Its ma- | chinery had “bent, but not broken. Mr. Whitney was covered with glory, | he had shown the qualities of a tru leader of finance: coolness, discretion, i flity to talk freely without saying nything, to handle the biggest deals with an absolutely unromantic poker | face, save when the situation was so bad that it called for a broad smile. Mr. Whitney’s rise to leadership and power in the Street was no accident He was long and carefully trained. It | was as if he had been selected early ' by some eugenic process and groomed something like a royal road to high finance. They sent him to Groton, to to the Somerset Club, to | Kidder, Peabody & Co. in Boston. | At Groton you are a success if you are well bred, of conventional principles, and strong muscles. Thus you may make friends for life with boys who will one day fall heir to railroads and banks There was absolutely nothing unor- thodox or eccentric about Dick Whitney, as his classmates remember him. He was a good student and popular. He made center on the Groton foot ball team, was captain of the base ball form prefect, and treasurer of the Summer camp. At Harvard he also went well, mak- crew in his junior year. He was a naturzl oarsman, and a good enough student to gain his A. B. after his third year. Moved to New York. It is notable that he became a mem- ber of the Porcelain Club, composed of the wealthiest, most fashionable, and most attractive of the lovers of learn- | ing at Cambridge. At the next stage, with the extremely dignified banking | house of Kidder, Peabody & Co., Dick | Whitney spent a year learning all about | bonds. HIS uncle Edward was now in | New York as a member of J. P. Morgan & Co., and his brother, George, had begun working for the same house in 1909. A vear later Richard Whitney came to New York. He joined the Wall Street firm of Potter, Choate & Prentice. He made good progress. By January, 1912, driving hard ne had got a seat of his own on the stock exchange and become a member of the old brokerage firm of Cumings & Marckwald. He was then 23. In 1916 he put out his own sghin- gle: Richard Whitney & Co. Hand- over-hand smooth and unostentatious was his climb thereaftas, In the war he was picked as a valuable young dol. lar-a-year man for Hoover's food ad- ministration. Coming back to the market after two | years of public service with an excellent | | record and many worth-while connec- tions, including Mr. Hoover himself, Mr. Whitney was elected to the august | governing committee of the exchange. | Owner of an estate at Far Hills, N. J., | of a stable of thoroughbreds, president | of the Essex Fox Hounds, treasurer of | the New York Yacht Club, member of the Links, the Turf and Field, the Rac- cuet and the Knickerbocker Clubs, Dick Whitney's education was more or less complete. In the handsome, noise-proof presi- dent's room of the exchange, decorated in Colonial style, hung with the por- traits of Washington, Jefferson and Franklin, he now rules over the ad- ministrative machinery, stage-setting, properties and trappings of the ex- stocks and bonds marched docilely be- | change, He is the head of an elaborate | Aacross AN - crowded Broad street and into the Ex- | Byaioess EovenEent, These are dark times for the stock business; the exchange, under Mr. cnergetic leadership, has been trying to carry out various “liberal reforms.” Yet traditional enemies, | Senato s, and *“‘demagogues” thunder continuously against the Wall Street | institution and call its head to Wash- |duce the Government's pay roll, rather ington and put him on the carpet. M:. Whitney, who pleads fervently that a “free and open market” must | be kept up, is obliged to crusade, to ‘educate the public,’ to carry on a mighty campaign against congressional or State intrusion. Mr. Whitney is humane toward the 2400 hired workers of the exchange and charming to visiting crown princes and Presidents of South American re- publics, for whom he must act as gal- | lery guide. For all his services he is gid nothing a year, this presidency ing honorary. ‘ (Copyright. 1932. by the Newspaper Alliance, North American | Inc.) FAIL TO PREVENT EDUCATION SLASH Senators Object to Person- nel Reduction, Fearing Double Wage Cut. An appeal by several Senators yes- terday failed to overcome the action of | the Appropriations Committee in re- ducing the allowance for personnel in | the Bureau of Education, Interior De- partment, from $230,000 to $250,000. Senator Fess, Republican, of Ohio, | said he would not object o cuts made in funds for other activities of the Bu- reau of Education, but thought it a | mistake to reduce the amount for per- sonal services. In a number of instances during the past week the Appropria- tions Committee, in carrying -out the Senate’s order to reduce the total of two appropriation bills 10 per cent be- low the House, has cu: the lump sum allowances for personnel in Government bureaus. This action does not change rates of pay, which are rxed by law, but means either dismissals or layofls | without pay, | Fears Double Pay Cut. Referring to the Bureau of Educa- tion, Senator Fess said yesterday: I assume there is no doubt but there will be a salary reducton bill before we get through with this ses- | sion of Congress. In my judgment, such a reduction is ineviiable, and I think we shall have to make it. | Senator Fess then pointed out, how- | ever, that if the allotment for the pay ment of salaries is reduced in the ap- propriation bill and then a general pay cut bill is passed later it would mean a double cut. Costigan Opposes Cut. Senator Costigan, Democrat, of Colo- rado, concurred in this argument. He said the cut in the salary allotment of the Education Bureau would mean either dismissals or a furlough of six weeks for every one in that office. This, h= contended, would amount to a salary reduction, and if the House follows this with a general pay cut bill, Congre: would be striking twice at some Gov errment employes. The appropriation bill for the State, Justice, Commerce and Labor Depart- ments, the next measure to come be- fore the Senate, involves this same | issue, the committee having cut the al- lowances for personal services in a num- ber of bureaus of those four depart- LAWYERS BACK HOOVER “FURLOUGH” PROPOSAL | ‘Association Also Suggests Study to | Find What Bureaus Could Be | Made to Pay for Selves. | A resolution favoring the President's proposal for a “furlough” plan to re- than direct salary cuts, was adopted by the Federal Bar Association at a meet- | E}g Monday night in the University ub. The association also recommended that Congress conduct a survey to find out what Government bureaus might be made self-supporting. pcinting out that | many units render free services to large corporations and organizations engaged | in industry and business for which a charge might be levied. Reorganization of Government de- partments in order to effect savings | which might avert the necessity for | drastic salary-reduction measures was also favored by the group. College Star WILL HAVE LEADING ROLE IN PLAY AT BRYN MAWR. JULIA CULBERTSON, Daughter of the American Ambassador to Chile, as Fair Ellen, the role she will portray in “Robin Hood” at Bryn Mawr College during May day festivities, May 6 ond 7. —A. P. Photo. HOOVER RETURN ASKED California Welfare Director Cites Humanitarian Career. SAN FRANCISCO, April 13.—Nom- ination and rz-election of Herbert Hoo- ver as President were asked last night by Mrs. Rheba Crawford Splivalo, State director of social welfare and one-time “Angel of Broadway,” in a political ad- dress Mrs. Splivalo stressed the humanitar- ian side of the President's career and said that international tragedies ‘far removed from him have been laid at his door. STATE TO SELL BONDS TOPEKA, Kans., April 13 (#).—An- | other half million dollars’ worth of bonds will be issued soon by Kansas to pay its bonus to veterans of the World War whose claims were delayed. The supplemental issue will bring to | $31,000,000 the amount paid to the vet- | erans on a basis of $1 for each day of service. Of this amount, $8,000,000 worth of bonds have been retired. The new bonds will bear 4!, per cent interest, and will mature in 1956 IS e SO b i ~SL ‘When You Motor Over the MEMORIAL BOULEVARD TO MT. VERNON —why not return by way of the Richmond Highway—and stop for LUNCHEON or DINNER at _| I Continuous Serviee Until 9 P.M. DINNERS—85c—$1.00—$1.25 Special Week-day Luncheon, 65¢ \WE are entering a new era of individuality. - We have grown weary of the monotony of mass ways . . . of substitutes . . . of synthetic living - We are going back to things of genuine character that in their quality lend flavor and distinction to life and living : : We may have fewer things - We may spend less money - But what we spend we shall spend more wisely and what we buy shall be of enduring worth, of unquestioned merit : : To these standards of excellence we have adhered, through all times and all conditions : as fine paper as rags paper from rags ing paper from rags :: In the intervening years we have improved our methods, improved our product - We expect to continue this prog- ress - But all the while we shall be mak- ing only papers of fine and genuine quality. OMMITTEE KILLS COURT RESOLUTION [ |Senate Body Rejects Pitt- man Measure on Root Protocol. By the Assoclated Press. | ‘The Senate Foreign Relations Com- | mittee today rejected, 11 to 8, the Pitt- man resolution proposing to ask for an | interpretation from other signatory | powers of the meaning of the Root pro- |tocol for American adherence to the World Court. Borah Planned Poll. Chairman Borah planned to poll the | remainder of the committee, but the 11 | votes against the resolution were enough to defeat it. The aim of the resolution was to de- termine whether the Root protocol cov- ers a reservation adopted by the Senate | in 1926, under which the court could | not render advisory opinions upon mat- | ters in which this country claimed an interest without the approval of the United States Government. | . Secretary of State Stimson has taken the view that the Root formula com- | pletely covers the reservation. Result of Vote, Ll ‘The Senators who voted for the Pit.- | man_resolution were: Borah. Johnson, | La Follette, Robinson of Indiana, Glenn, Pittman, Lewis and Shipstead Those opposed were: Capper. Reed Fess, Vandenberg, Cutting, Swanson, Robinson of Arkansas, Walsh of Mon- tana, Harrison, Wagner and Connally The committee reached no agreement | today for a time to vote on the Root protocol itself. | The question of further hearings was | discussed, but no agreement was made. —_— Monument for Slain Flyer. SOOCHOW, China, April 13 (#).— Chinese admirers of Robert Short, American aviator who was killed in a clash with Japanese during the fighting at Shanghal, were planning today to erect a monument to the fiyer's mem- ory. i FOR Read the SALES Nothing makes In 1801 we made :In 1932 we are still mak- CRANE & COMPANY DALTON, MASSACHUSETTS For more than 130 years makers of Crane’s Bond and other fine business papers / - ** A5 RECEIVERSHIP SOUGHT FOR MAIL ORDER FIRM Former Employes and Stockholders Say Assets Are Being Sent Out of State. By the Associated Press. ~KANSAS CITY, April 13.—Four for- mer employes and a stockholder of the National Bellas-Hess, Inc.. mail orde: plant here, applied in Circuit Court here yesterday for a receiver for the Missouri property of the company. Nathan Kraft, the stockholder, al- leges the plant virtually is shut down and that supplies and machinery con- stituting the assets are being scattered over other States The former employes, Mrs. Retha ‘White, Miss Florence Snoderly, David Salvay and Miss Mary Masterson, allege they are creditors of the company in the amount of $100 each because of wage reductions given them without no- tice, in violation of the Missouri law. MINE WAGE CUT ASKED Wyoming Operators Ask Union to Accept Basic Scale Slash. ROCK SPRINGS, Wyo., April 13 (#). —Eugene McAuliffe, president of the nion Pacific Coal Co., said yesterday the Southern Wyoming Coal Operators’ Association has asked the United Mine Workers of America, Wyoming district, to accept a downward revision of the existing miners’ wage scale to a basic rate of $542 a day. The revision rep- resents a reduction of $1.30 a day. The biennial convention of the Wyoming district, United Mine Workers, vill be held at Cheyenne this week. New Morocco Beaver Board 6Y2 FT. leather. of imitation Will make beautiful panelled room: Choice of mahogany, green, chestnut. “NO, ORDER TOO SMALL” SUDDEN SERVICE" J. FRANK KELLY, Inc. Lumber, Millwork, Paint, Coal Sand, Gravel, Cement 2121 Ga. Ave. North 1343 A RIDDLE YOU Where Can You Find What You Want When You Want It? The answer is so simple that thou- sands know the reply by heart— MISCELLANE- OUS ADVERTISEMENTS in the Classified Section of D B

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