Evening Star Newspaper, April 17, 1932, Page 1

\ WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy and cooler today; partly cloudy; moderate Temperature—Highest, tomorrow, north winds. 63, at 3 pm. yesterday; lowest, 38, at 6 am. yes- rda terday. Full report on page 10. WITH DAILY EVENING EDITION “From Press to Home Within the Hour” The Star is delivered every evening and Sunday morning to Washington homes by The Star's exclusive carrier service. Phone National 5000 to start immediate delivery. (#) Means Associated Press. P — he Swundwy Star No. 1,413—No. 32,128, Entered post offic second ¢ Washing WASHINGTON, D. (., SUNDAY MORNING, APRIL 17, 1932—11L PAGES. = —— ] FIVE CENTS CENTS WASHINGTON AND SUBURBS | TEN COADEDTOSLAYING MASSE TESTIFIES, CHARCING HAWAIAN CONFESSED ATTACK Memory Blank Following Na- tive’s Admission, at Gun Point, That “We Done It,” Navy Officer Says. REVEALS “VILE RUMORS” CIRCULATED IN ISLANDS Denies Intent to Kill, But Tells of | Plotting Abduction of Kahaha- wai With Mrs. Fortescue and Enlisted Men; tion Begun. Cross-Examina- By the Associated Press. HONOLULU, April 16.—Lieut. Thomas H. Massie today testified his last remembrance of the kid- naping and slaying of Joseph Kahahawai was of confronting the Hawalian with a pistol and hear- ing the native’s confession of an attack on Mrs. Massie, The Navy officer thus took upon his slight shoulders the responsi- bility for the lynching of Kaha- hawai that shook the social and political strata of Hawaii. His testimony paved the way for an insanity defense and told how the attack and ‘“vile rumors” about his wife had goaded him into action. Massie led up to the story of the kill- ing, which occurred last January 8, by relating a long story under the guidance of Clarence Darrow, his attorney. Abduction Plotted. He asserted that he and three co- defendants, Mrs. Granville Fortescue, Albert O. Jones and E. J. Lord, plotted the abduction of Kahahawai with the intention of obtaining a confession. “I drove to Mrs. Fortescue's house (scene of the killing) and when I went in I remembered I left a pistol on the table, so I put it in my pocket,” he de- clared. | “Then I called out ‘Come in, Maj. Ross (head of the territorial police) is here’ I heard Kahahawai sit down in & chair 1n the front room. “I took off my glasses and went in and confronted him with a gun. “'Do you know who I am?' I askell ‘I think I do,’ he replied. “1 asked him who kicked the woman,” Massie testified with rising voice, “and he said nobody kicked the woman. “I said, ‘Now I know you are lying.' “He said he ¢idn't know ‘nothing." “‘Mrs. Fortescue got up and said, "He won't talk; let us carry out our other plans.’ Confession Claimed. “I told him if he wouldn't talk we knew what to do. I told Lord to°'go out and get the boys. As Lord went out 1 told Kahahawal, ‘If ‘you don't talk you will get what Ida (another attack | defendant who was kidnaped and beat- en) got. These men will beat you to w you talk.’ “Suddenly he said, ‘Yes, we done it.’ “That’s all I remember. All I could wife and hear what she ~—that when Kahahawai at- tacked her and she prayed for mercy be answered by breaking her jaw.” Massie said his next remembrance was of being taken to the police sta- tion. This was some two hours after the killing, and after Kahahawai’s body had been found i automobile near Koko Head. In car were Massie, Mrs. Fortescue and Lo: Mrs. Fortescue, well known in Wash- ington and New York society, is the :‘J_’Ao!hrr of M Lord and Jones, enlisted Counsel in Wrangle. A fight between Darrow, who ap- parently had recovered from an attack esterday, and C. Kelley over | Massie would t's story fense insanity it would answered that he did not know because doctors had_dis- agreed cn this point. Superior Judge Charles S. Davis said he could not in- sist upor. Darrow's naming the type if the latter did not know what to call it name the kind plead. Darrow m the story of a fter she left a dance hall where a party of naval of ficers and their wives had been spend- ng the evening last September 12 n his gaze on the floor and in and sometimes harsh voice Massie took up his narrative after Dar- med him as the man who the pi: ed Kahaha- Fort began and M duction entering th: ur (Continued on Page of the ab- spectators had been 5, Column 1)) storv after room Two Sentenced in Burglary. VANDALIA. IIl. April 16 (#.—Alice Porter Freeman of Lasayls, Ky., and Milborn At 22, of Paxton, Tl were sentenced to s one vear to life each in the South: tentiary at Chester. when they pleaded guilty to the burglary of a restaurant north Vandalia the night of March 16 News of D. A. R Full reports of the D. A. R. Convention, April 17 to 24, inclusive: Mail—Postage P r e - id U. S., Mexico and 31 Leave orders with Star representative at Constitu- tion Hall or The Evening Star Office, 11th St. and Pa. Ave. N.W. {Elmer L. (Copyright, 1932, by Ti U.S.AGENT WITH LINDBERGH IN VAIN SEARCH FOR BABY, STORY OF FLIGHT REVEALS Irey Was Fourth Man in Plane—Colonel Had Received Baby’s Clothes as Token. BY REX COLLIER, Staft Correspondent of The Star he Washingion Star.) NEW YORK, April 16 —Revelations concerning the futile flight to Marthas Vineyard two weeks ago by Col. Lindbergh and three com- panions, including disclosure that the mysterious fourth member of the party was a Federal officer, Elmer L. Irey, of Capone investiga- Tllinois Pen- | (Jafsie) conducted an a to tender women as Lindbergh Elmer L. Irer. Respects 8-Hour The kidnapers had demanded of the ransom, and Lindbergh, no hunk, Mass ‘The impelling factor in Lindbergh's belief that the kidnapers would keep faith was the “little package" delivered to Dr. Condon April 1 It was half of an infant’s sleeping dress. Col. and Mrs. Lindbergh and Betty Gow, the nurse, were convinced after careful ex- amination of the garment that it was, as Jafsie said in a newspaper advertise- ment, “the real article.” Stakes All on Pledges. hout waiting to press further his ! reiterated requests for the baby's finger- | prints, for comparison with a set of | “latent” prints obtained from toys and | furniture in the nursery, Lindbergh, | with the advice of others, decided to pin all his hopes on the pledges of | those who had stolen his son. The baby's garment was delivered on | Priday, April 1. The ransom was paid | the next night by Dr. Condon, who handed to a shadowy figure behind a cemetery wall a box containing Lhei $50,000 in five, ten and twenty dollar | bills. Most of the circumstances of that transaction already have become public. The Star now can reveal many of the | events that immediately followed pay- ment of the ransom. | On Saturday night, about 9:30 o'clock, Col. Lindbergh, Col. Breckin- and_Al Reich, an amateur prize- fighter, d®ve in Lindbergh's car to the { Bronx home of Dr. Condon. They car- Tied two black suitcases and an Arm- ful of heavy wraps. Col. Lindbergh and Dr. Condon, with the $50,000 in a box. then drove to the | eerie rendezvous with the emissary of | the kidnapers, Col. Lindbergh remain- |ing a short distance away in the car. | Dr. Condon was accosted as he walked |along the cemetary wall and he turned the box and its contents over to a man |of Scandinavian or Teutonic accent, | | whom he recognized from previous | meetings. { Directions to Yacht Given. Dr. Condon was handed an envelop containing explicit directions as to the | baby's whereabouts. It was in the same | handwriting as that of other letters | which played a part in the negotiations and it matched the writing in the original ransom note The letter instructed Lindbergh to fly o Cuttyhunk, a small island off the elbow” of Cape Cod and near Marthas Vineyard. In a certain location along | the shore of Cuttyhunk, carefully de- scribed so there could be no mistake, it |was_asserted a 30-foot yacht, with painted on her bow, would be f the boat, the letter said, there we | had been placed. These women, it was stated, were innocent of any complicity in the kidnaping, and Lindbergh's word , was asked that they come to no harm. Lindbergh fully intended to do every- g in his power to grant that plea In the event thal anything went wrong with the plans, however, Lind- | bergh’ wanted a Federal officer avall- | able. Several possibilities of a slip-up | had been suggested to him. There was | the possibility the vacht would be | found, with the women aboard, but no baby there. In this event Lindbergh | would have felt fully justified in hav- {ing the women subjected to a grueling | interrogation Conflicting Emotions. | The wave of conflicting emotions that | followed reading of the letter of in- struction can only be imagined by tho: | not present. Hope fought and con- | quered the specter of fear that lurked |in the thoughts of the little coterie | privileged to be in on events leading up to the tragic_denouement | “Lindbergh and Condon returned to the latter’s home and picked up Reich | and Breckinridge. Reich drove this group to a place in New York where | Trey was picked up. It was now nearing midnight. Reich headed Lindbergh's car north and onto | the Boston Post road. Through the night the powerful car sped—eaving towns and hamlets of Northern New York behind them, crossing the State line into Connecticut and on up the coast. { ““The car halted at a Connecticut port on Long Island Sound. Here all but Reich remained hidden until the first streak of a New England Sabbath dawn appeared over the water. Reich mean- while returned to New York with the car. Then the quartet went to the water- front and climbed into a big amphibian | plane that had been flown there for the purpose. With Linbergh at the con- | trols, the plane rose over the Sound and followed an arline course northward | to Cuttyhunk Shore Scanned From Air. The sun was just coming up as the | big ship, expertly navigated by an eager father, came within sight of Cuttyhunk. | Lindbergh's eyes were glued to th looming shores of the island that lay | just ahead and below. Other members of the tense group read and re-read the instructions in th2 note The ship swooped gracefully lower and lower, until the coves of the ir- regular shoreline were close enough for easy particular spot E | | | tion fame, can be made tonight on indisputable authority. Lured by a heart-rending bit of Baby Lindy’s sleeping garment Lindbergh, Irey, Col. Henry Breckinridge and Dr. John F. Condon 1l-day search by air April 3 for the Nellie, a yacht on which the quartet expected to find the kidnaped baby in custody of two “inno- cent” women. Women Were to Be Questioned. Irey, chief of the Internal Revenue Bu- reau's intelligence unit, was ready not only | Uncle Sam’s aid in recovering Charles Augustus, jr., but to questizn thc to their connection with the case. Through it all Col. Lindbergh held to a de- termination to play fair with the kidnapers if they kept faith with him under the solemn contract entered into by Jafsie in the melo- dramatic surroundings of a graveyard In accordance with this “code of honor” | requested Irey and his two “aces,” Frank Wilson and A. P. Madden, to remain away from the actual scene of the $50.0C0 ransom transaction, but permitted Irey to join in the climactic quest for the baby and its “guiltless” guardians. Start Demand. eight hours' start after payment | t suspecting a trick, allowed that period to expire before he launched the hunt for the Nellie off Cutty- designated in the letter soon was recog- nized, with a concerted cry of elation All’ eyes were strained for a glimpse of the yacht called “Nellie." But the Nellie was not there Nearby, however, could be seen number of boats, scattered along the inlets and bays. Search in Vain. Lindbergh zoomed down agamn and again, until it seemed the undercarriage of the plane would clip the rigging of the boats beneath, or touch the sun- tinted waters of the sound. He was try- ing to read the names on the sides of | the craft that seemed to answer the general description of the Nellie. There were yachts with a wide variety of girls' names_ except that sought Grimly continued the disheartening search. The plane circled the island and ven- tured to cther nearby shores of the Marthas Vineyard area. It was hoped the Nellle would see or hear the plane and signal to it in some way. Perhaps those on the yacht had mis- understood directions of their own group and were in the wrong location. If this were the case it would be ad- visable to cover a wide territory. With ever-increasing misgivings, the plane continued to circle over the neighborhood. At ope time the plane was landed at the village of Cuttyhunk and the group went ashore and inquired of the seafaring folk there whether they knew anything of the Nellie. No one had heard of such a boat in that vicinity. Lindbergh Recognized. Lunch was eaten in the village. Lindbergh was recognized by several of the residents. One of the villagers noticed the name “Breckinridge” on a wallet. It was in this way that word of the flight first leaked out. It was not until later that Dr. Condon s identity was disclosed, and the fourth man has been variously reported as having been John H. Curtis. Norfolk intermediary”; John Fogarty, privats detective, and others. Lindbergh refused to give up hove. All day long he wheeled the plane over | Cuttyhunk and Marthas Vineyard. Only the darkening shadows of eventide in- duced him to call the expedition off | for the day Crushed with pent-up emotion, the searchers returned sorrowfully to New York that night Lindbergh could not bring himself to believe he had been deliberately double- crossed He argued there must have been some unintentional slip in the ar- rangements Second Flight Made. The first thing Monday he and Col. Breckenridge again flew back to Cutty- hunk and renewed the quest. This trip, too ended in failure. Meanwhile Dr. Condon eagerlv had been awaiting word from his “contact man.” Tuesday passed, with no message of any kind from those who had taken the $50.000 On Wednesday, April 6, Lindbergh was prevailed upon to take decisive ac- tion. He had Dr. Condon insert the ad- vertisement asking “What s wrong. Have you crossed me?" and he furnished the Treasury with a list of serial num- bers of the ransom bills. So far the answer to Jafsie’s ad has been complete, poignant silence, Ominous Silence Marks Lindbergh Kidnaping Search By the Associated Pres NORFOLK, Va tenseness, April 16 —An air of augmented by tight-lipped sllence of the three principals, attended the work of negotiators here tonight as another weck end, usually productive of developments, came in their efforts to Tecover the stolen baby of Col. and Mrs. Charles A. Lindbergh. A sllence more strictly adhered to than at any time during their efforts to | negotiate with persons they believe to be the kidnapers served only to add expeclancy that some move might b planned to bring an end to their lengthy effort but there is nothing we or say at this time,” was the response made by Rear Admiral Guy H. Burrage, retired, in a blanket refusal to answer all questions presented to him today. His associates, John Hughes Curtis, Norfolk boat builder, and Very ' Rev. H. Dobson-Peacock were equally non-commital “Our negotiations might be consid- ered in status quo,” Mr. Curtis said, in declining to discuss when another move might be expected A vell of secrecy on movements or contemplated moves, was clamped down shortly after Admiral Burrage and Mr. Curtis returned this week from an ex- tended absence. On their return they authorized the statement that they had seen Col. Lindbergh four times, had made a contact with the supposed ki (Continued an Page 32, Golumn 33 al Lindbergh and his associates | It | was during this visit to the town that | 310 EEDY HONES FAE BREAKLP SEOLCD AID FALS Children Would Be Forced to Become Wards of Juvenile Court. [MUNICIPAL FUNDS CUT UNDER THE ESTIMATE | Allocation Already Made Is Ex- | pected to Consume Allowance of Welfare Board. More than 3.000 destitute families tn the District now under the care of the { celated Charitles will be put on the street and their homes broken up after | July 15 as & result of the refusal of the | House to appropriate the $600,000 emergency unemployment relief fund recommended by President Hoover, it was said yesterday by Walter S. Ufford, general secretary of the organization “If the Associated Charities is oblieged to close its doors for lack of funds,” Mr. | Ufford declared, “there will be untold suffering among the thousands of fami- lies for whom the assoclation is caring | Many of these families will be put upon | the street. Little children and the aged | will be among the sufferers.” . | Unprecedented demands upon the or- ganization for assistanc-, Mr. Ufford | declared, will virtually exhaust its funds by July 15, leaving the destitute families now being cared for to struggle along on | their own empty resources. | | Juvenile Court Hope. The Associated Charities, Mr. Ufford said. will have but one answer to give | applicants for relief when its funds are | exhausted—recommend that the desti- | tute families with children apply to the | Juvenile Court for the temporary com- | mitment of such children to the Board | of Public Welfare. “Congress, so far as we know,” he declared, “has never | tailed to recognize in its deficiency ap- propriations the cost of such commit- | ments. Such refusal, resulting in the | eviction of hundreds of families, would | be heralded over the country as a real | disaster to the National Capital.” Commitment of the children, however, | would not solve the problem completely, |Mr. Ufford pointed out, because the | parents would be left to suffer. The unusual demand for relief upon |the Associated Charities and other pri- vate charitabie and welfare organiza | tions, Mr. Ufford explained, is due t the lack of public funds for home care. | The Board of Public Welfare, he said, has already allocated funds appropri- ated under the home-care act for de- | pendent _children, and as a result de- serving families have turned to and are | being cared for by private agencies. The 1933 District appropriation bill | | as it pessed the House carried $153.280 for home care for dependent children, the same amount as appropriated for the current fiscal year, and $11,620 less than the amount recommended by the | Budget Bureau. | Many Families Carried. “The Associated Charities” he de- clared, “is carrying at the present time many families whom it believes to be eligible for allowances under the home | care act, there being no more public funds available for. such families at this time. The society also is carrying a number of aged couples and old folks who could be cared for by public funds outside the Home for the Aged and In- firm if the District had an old age se- curity act, such as that in operation in several States.” The $600.000 appropriation urged by President Hoover, Mr. Ufford said, would relieve private agencies of the additional expenses of caring for the unemployed, releasing this much money for the care of families who would even in normal times be without resources, largely on account of sickness, desertion of wage earners, old age and other reasons. __Unless the $600,000 is forthcoming, (Continued on Page 2, Column 8.) 4 — TODAY’S STAR PART ONE—28 PAGES. Genera! News—Local, National Foreign Schools and Colleges—Page B-4. D. A R. Activities—Page B-5. Serial Stor: Tangled Lives"—Page B-9. W. C. T. U. Nof —Page B-9. Army and Navy News—Page B-9. Public Library—Page B-9. and PART TWO—12 PAGES. Editorials and Editorial Features. American War Mothers—Page 4. Marine Corps News—Peage 4. Y. M. C. A News—Page 4. Y. W. C. A. News—Page 4. News of the Clubs—Page 5 Veterans of Foreign Wars—Page 5. Fraternities—Page 6. The Home Gardener—Page 8. Parent-Teacher Activities—Page 10. Organized Reserves—Page 11 Disabled American Veterans—Page 11. Community Centers—Page 11 Spanish War Veterans—Page 12. American Legion—Page 12. PART THkE;J—IZ PAGES. Society Section. Kathleen Norris' Article—Page 8. | Women in Official Life—Page 9. PART FOUR—8 PAGES. Amusement Section—Stage, Screen, Music and Radio. Music News—Page 3. In the Motor World—Page 4. Radio—Page 6. Aviation—Page 7. District National Guard—Page T. PART FIVE— PAGES. Sports Section. PART SIX—I2 PAGES. Financial News and Classified . Adver- tising PART SEV] Magazine Section. Notes of Art and Artists—Page 14. Reviews of New Books—Page 15. Cross-word Puzzle—Page 16. Bridge Forum—Page 17 The Boys' and Girls' Page—Page 18. Highlights of History—Page 19. Those Were the Happy Days—Page 20. GRAPHIC SECTION—8 PAGES. World Events in Pictures. COLORED SECTION—8 PAGES. Keeping Up With the Joneses; Tarzan; Mr. and Mrs.; The Timid Soul; Moon Mullins; Reg'lar Fellers; Little Or- —20 PAGES. » HEAD OF EB[W GROUP AND HOOVER DIFFER ON SAVINGS IN OMNIBUS BILL | Statement Before Committee Completed Study of Pro- PLATFORM POST SOUGHTFORHULL Friends of Roosevelt Back Tennessee Senator for Chairmanship. BY G. GOULD LINCOLN. Senator Cordell Hull of Tennessee was put forward last night by sup- porters of Gov. Franklin D. Rosevelt of New York as the probable selection of the Roosevelt Democrats for chairman | of the Committee on Platform and Resolutions of the Democratic National Convention. Senator Hull, formerly a chairman of reported not to be antagonistic to 8 referendum plank on prchibition, al- hough he has consistently insisted that he big issue in the coming campaign is economic, and not the wet and dry question. The declaration by former Gov. Harry Flood Byrd of Virginia at the Jefferson day.dinner of the Demccrats last Wed- nesday night in favor of submission of the prohibition question to a vote of the people has apparently made it quite clear the Democrats are to have a plank in their national platform dealing with prohibition. ‘The contest in the Democratic con- vention, and previously in the Plat- form Committee of the convention, is expected to develop over the extent to which it shall go: whether the plank shall call for a referendum or for out- and-out repeal of the eighteenth amend- ment. Alfred E. Smith is for out-and-out repeal in the platform. So is, appar- ently, Gov. Albert C. Ritchie of Mary- | land, another candidate for the Demo- cratic presidential nomination. Smith Would Like Chairmanship. Gov. Roosevelt gave his approval to a resolution adopted by the Democratic State Committee Priday declaring there should be an immediate repeal of the eighteenth amendment. But while he favors repeal, the belief exists Roose- velt will favor a referendum plank in the platform rather than a party dec- laration for repeal of the eighteenth amendment. Mr. Smith Is going as a delegate to the Democratic National Convention. He has expressed his keen interest in the framing of that platform. Un- doubtedly he would like to be New York’s selection for membership on the Platform Committee and equally he would like to be chairman of the com- mittee. But whether the Democratic delegation from New York will give Mr. Smith that position on the Plat- form Committee or not. it does not ap- pear that the commiitee will accept Mr. Smith as chairman. It is expected that pro-Roosevelt and anti-Smith (Continued on Page 3, Column 2.) BUILDER BELIEVED DEAD IN AUTO FIRE Kenneth Vieth Away From Home as Man's Body Is Found in Burned Car. A man believed to be Kenneth Vieth, 2855 Monroe street northeast, member of the real estate firm of Woodward & Vieth, was burned to death early today when his automobile pluged down an embankment near Marlboro, Md, and burst into flames. The machine was identified as Vieth's. Vieth's relatives, who said he had not returned home last night, were notified shortly after the tragedy and left for Marlboro to view the charred body. Elon 4. Turner, Prince Georges Coun- ty motorcycle policeman, witnessed the accident, which took place on the Crain Highway about a mile from Marlboro in the direction of Baltimore, Turner said his machine was fol- lowing a short distance behind the auto- mobile and he saw it lurch suddenly, turn over twice and then plunge down the embankment in flames. ‘Turner summoned the Prince Georges County fire rescue squad, but the man was dead when pulled from the wreck- age of the burned sedan. Justice of the Peace Horace Taylor was notified of the tragedy shortly afterward and immediately summoned a jury and began an investigation. The was taken to Ritchie's funeral mm at Malboro pending identifica- Vieth 1s sald to be about 30 oid and 15 married, _— Hyde Announces He’s Agreeable to Dry Referendum | | f | Refuses to Stand in Way of People’s Right to Vote, He Say By the Associated Press. Secretary Hyde said last night that \wuhout changing his views in sup- port of the eighteenth amendment, he would not oppose resubmission of the prohibition question to the States for settlement. Returning from the Missouri Repub- lican Convention in St. Louls, where |a plank proposing a national conven- |tion on the issue was approved, the | Secretary of Agricuiture and former Governor of the State said in an inter- | the Democratic National Committee, is | view he would not stand between his fellow citizens and their rights to vote. | ““Without changing my dry views in | the least,” Hyde said, “I nevertheless am bound by the fundamental ques- | tion that the people are the source of | power and I will not oppose resubmis- sion. “I refuse to stand between my fel- low citizens and their rights to vote DARD HEREFOR SESSIONS ture Week of‘Meetings, Starting Tomorrow. | Featured by the triennial national | election, in which the administration | ticket headed by Mrs. Russell William Magna of Massachusetts is unopposed, the forty-first Continental Congress of the National Soclety, Daughters of the | American Revolution, begins a week of annual patriotic sessions tomorrow evening in Constitution Hall Vice President Charles Curtis will extend the | official welcome, | With the arrival today of additional State delegations and establishment of | State delegations among the principal | hotels, practically all the 3,000 delegates | |will be in attendance at the opening of the congress, the usual morning and | afternoon sessions having been elim- inated this year for their convenience | Under this changed schedule, the re- | tiring president general. Mrs. Lowell | Fletcher Hobart of Ohio, will deliver | her message to the congress Tuesday afternoon. This year the D. A. R., dedicated to the perpetuation of Revolutionary his- tory and the ideals of Government handed down by George Washington and his compatriots, will contribute an | important share to the George Wash- (Continued on Page 4, Column 6.) CLASS BANKBL SGVEN APPROVAL Virginian to Report Measure Early This Week, Asking Prompt Enactment. The Glass banking reform bill, tighten- ing the national banking and Federal Reserve systems against speculators and intended to protect depositors, was ap- proved yesterday by the Senate Banking Committee. The far-reaching legislation was modified to meet the almost unanimous approval of the committee and to satis- fy to a great degree suggestions of Federal Reserve and banking officials, The bill is an outgrowth of almost two years of study of the 1929 stock speculation orgy and its author, Sen- ator Glass of Virginia, former Demo- cratic Secretary of the Treasury, be- lieves it will go far “to correct the stock speculation evil.” Seeks Action This Week. | gram “Unfortunate,” Mc- Duffie Declares. FAVORS SETTLING ISSUE OF PAY CUTS TUESDAY House Committee Postpones Until Tomorrow Its Decision on Pro- cedure Regarding Furlough or Salary Reduction Proposals, Holds Session With Roop. The full text of the administra- tion’s ‘economy bill appears on page 12-A of today's Star. I By the Assoclated Press. The White House and Chairman McDuffie of the House Economy | Committee were in disagreement | last night over the estimated sav- ings of the Hoover omnibus re- | trenchment bill detailed yesterday | before the committee by Director | Roop of the Budget. A White House memorandum, in supporting the Hoover five-day week and leave without pay plan for Federal employes said the bill “should ultimately reduce expen- | diture by upward of $225,000,000 | and possibly $250.000,000. No esti- mates were submitted to the com- | ml};ee on reorganization, McDuffie | said. | In a statement last night the | Alabama Democrat held that on the basis of estimates submitted to the committee by Director Roop, the President’s plan would save $178,829.000. Of this, he said, $58,217,000 would be through changes in veterans' legislation, $65,500,000 from the Hoover em- ployment plan and $16,500,000 from allowances to rural mail car- riers. Statement Called “Unfortunate.” The White House memorandum held |that the Hoover employment plan “establishes the principle of the five- day week in the Government; tains the present scale of salaries Congratulated by the committee for the lengthy study of the national banking situation, Senator Glass an- nounced he would report the measure to the Senate early this week and seek its prompt enactment. The measure also creates a Federal liquidating corporation to speed pay-| | ments to "depositors in closed banks— | | State and national. An immediate ap- propriatien of $125.000,000 for this cor- | poration is provided. | The Federal Reserve Board is put| | in command of the ban against use of | | Federal facilities in speculation. The | board may suspend a member bank | for violation of the prohibition on use | of credit except for the “maintenance of sound credit conditions and the accommodation of commerce, industry and agriculture.” The legislation extends to national banks the right to have branch banks in all States. A sharp division developed over this point, four members of the | committee voting to restrict branch banking to States which authorize the ! (Continued on Page 3, Column 4.) | | RHODE ISLAND LEADS IN CREATION OF JOBS | i Smallest State Tops List for Week | as Total in U. §. Campaign Reaches 521,840, By the Associated Press. | NEW YORK, April 16.—Rhode Island, | the smallest State in the country, re- ' ported today more jobs found for the unemployed than any other State, it/ was announced at headquarters of the War Against Depression Campaign, | Reports from 80 communities in 36 | States sald a total of 11,167 persons had been returned to work, bringing' the national grand total, as compiled | by the campaigners, to 521,840, West Virginia was second on the| | day’s list, with Wheeling reporting that | 1,034 had been given jobs. | By the Assoctated Press. A list of short sellers on the New York Stock Exchange was received by | the Senate Banking Committee yes- terday to furnish ammunition for its | Investigation of bear raids, which will | be resumed tomorrow. ‘The list was not made public, but | committee agents went right to work |on it in preparation for cross-examina- the exchange. , | The information was submitted in compliance with a subpoena issued by the committee when it called Whitney last week as a result of reports that a giant bear raid was being organize in the market. Whitney was asked to furnish a list of corporations in which the short account at the close of the | market on Friday, of last week, was in excess of 10,000 shares. He was also directed to give the names of members through whom the transactions were made and a list of the clients for whom the sales were made, A SHORT-SELLING LIST FURN IS&-IED SENATORS AS PROBE AMMUNITION Committee Proceeds With Preparations Examination of Whitney Tomorrow. | tion of Richard Whitney, president of | d | for Cross. He was also asked for a list of the persons and corporations from whom stock was borrowed to consummate the transactions. Whitney, in his appearance before the committee last Monday, said it would be impossible to furnish the names of the brokers through whom all of the deals were originally made, but promised to furnish a list of mem- bers of the exchange who now have short accounts on their books. Administration Senators on the com- mittee hope by means of the data fur- nished yesterday by Whitney to be able to prove that short selling and bear raids have been a depressing factor on the stock market. ‘ In his two appearances before the | committee this past week, Whitney em- | phatically denied there had been any bear raids and said they were not allowed by rules of the exchange. Some members of the committee are convinced that the attempt to prove bear raiding has failed and are anxious to employ Samuel Untermeyer of New York as counsel for a board inquiry into stock exchange practices, | They are waiting. however, until the | eharge of bear raiding has been fully b investigated and either substantiated or oveds | | { | & would save around $13,000,000 more | than the straight pay-cut proposal.” McDuffle maintained his wage cut {plan of 11 per cent, after exempting 181,000, would save $67.000,000, and | termed issuance of the White House statement as “unfortunate before the committee has had an opportunity to conclude consideration” of the Presi- dent’s program. “The committee has delayed its pro- gram largely at the instance of the President and out of deference to him,” McDuffie said. “I do not think, how- ever, the time has come to rush into print in support of either plan, because I feel that the necessity Tor retrench- ment in Government expenditures is a matter of such vital importance to the entire country that it should not, in the present emergency, be made the subject of partisan political discussion.” Meanwhile, the committee completed & study of the President’s bill after an all-day session with Director Roop. It postponed until tomorrow a vote on whether it will seck to bring out the McDuffie and the Heover plans to be inserted in the legislative supply bill Tuesday or to include either in the in- complete retrench: t bill. ‘Will Consider Naval Bill. McDuflie said there was hardly time to get the omnibus bill finished by to- morrow night and that he favored settling the salarv cut issue Tuesday and then formulating the omnibus measure, In the event, the committee votes to include the salary proposition or the Hoover plan in the omnibus bill, it will not be offered until later in the week. Meanwhile, the House will consider the naval supply bill. In assailing the White House state- ment, McDuffie said: “AS to the ident’s arguments in favor of the furiough plan, otherwise designated as the ‘staggering plan,’ in the last analysis, it means a reduction in Federal salaries. A rose by any other name smells just as sweet. Jnder the President's n, the Federal emplove would sacrifice a reater percentage of his salary in the iower grade than one in the higher grade.” Disagrees on Substitutes. ‘The White House statement said that through the President’s plan between 25000 to 35000 additional employes would be given work as substitutes, and McDuffie said he could not agree “with the suggestion,” adding: “The Economy Committee of the House has co-operated with the Presi- dent to the fullest extent and will continue to do so. What the committee desires is the attainment of the main objective and the committee wishes to proceed along with the most effective method to attain the end sought. “Certain members of the Economy Committee, the President and others considered it advisable to employ all " (Continued on Page 4, Column 1) TEN THOROUGHBREDS PERISH IN BARN FIRE Owner Estimates Loss in Lexing- ton, Ky., Blaze, at $40,000. By the Associated Pre LEXINGTON, Ky, April 16—Ten theroughbred horses were burned to death when fire destroyed a barn at the Kentucky Association track tonight. Jeff Spencer, their owner, estimated the loss 2t $40,000. Horses known to have been destroyed included six 2-year-olds, Big , Blue Face, Bye Bye, Light Pants, Coate and Goodie, and three older horses,. h Rose, Flash o’ White and Ski B A 'tenth horse was beli 0 be Dalg, & 3-year-old. x