Evening Star Newspaper, May 21, 1932, Page 2

T A2 e33» .0.P. LEADERS SET 10 MISS CHICAGD Reed and Moses Announce Intention to Stay Here if Necessary. (Continued From First Page.) tion, more or less, was expected to function with equai effect, and at some | point during the debate 1t was hoped | obstructive tactics would be dropped for | the sake of getting the bill passed. But the bitterness engendered was so great that no forecasts were made. Protests received by the State De-| partment from Chile and Peru against | the proposed tariffs on petroleum and | copper in the billion dollar revenue bill | were made known today by Representa- tive Rainey. Stormy Scenes. \ight the disputation was raised seldom reached in the Sen- ate chamber, in a personal exchange | between Senators Long of Louisiana and | George of Georgia, both Democrats. Long, supporting the oil tariffs, read the list of George's 1930 votes for high | s, and those of Democrats who then sho themselves protection- ists for the benefit of home territory. | but now opposed a levy on oil that did their States no good. George, irembling with indignation, told Long to protect his own record, tc draw consolation if he could “from the unholy alliance of which he is a part.” Though asserting his own indifference to “buffocnery and clowning,” he added that he had to condemn “an endeavor ; to embarress without the slightest sense | of sensibility—I was about to say de- | cency. Long had previously been asked to stop by Senator Ashurst, Democrat, of Arizona, one of the tariff group, for fear he would do more harm than good. Seven Roll Calls. The victory yesterday was the first in seven roll calls in recent years for an oil tariff. The complete oil schedule adopted by the vote was: Crude petroleum, one- half cent a gallon; fuel oil derived from troleum, gas oil derived from petro- leum and all liquid derivatives of crude petroleum, except lubricating oil and gasoline or other motor fuel. one-half cent a gallon: gasoline or other motor fuel, 2!, cents a gallon; lubricating oil, 4 cents a gallon: parsfin and other petroleum wax products, 1 cent per pound: natural asphalt and asphalt and bitumen derived f{rom petroleum, 10 cents per 100 pounds. All taxes to ap- ply only on imports. Eighteen Democrats, including Tyd. ings, supported the oil duty with 2! Republicans. Nineteen Democrats and the Farmer- Labor Senator, Shipstead of Minnesota, and 17 Republicans opposed it. The roll call follows: Vote by Parties. Fer—Republicans, Austin, Bingham, Capper, Carey, Couzens, Cutting, Dick- Hale, Hatfield, Johnson, McNary, Metcalf, Oddie, Reed, Robinson of Indiana, Shortridge, Smoot, Steiwer, Thomas of Idaho, Vandenberg, Walcott, Watson and White—25. Democrats, Ashurst, Barkley, Bratton, Broussard, Connally, Dill, Gore, Hav- den, Kendrick, Long, McGill, Neely, Pittman, Sheppard, Thomas of Okla- homa, Tydings, Walsh of Montana and ‘Wheeler—18. Total, 43. Against — Republicans, Barbour, ‘Blaine, Barah, Brookhart, Fess, Golds- borcugh, Herbert, Howell, Kean, Keyes, | La Follette, Moses, Norbeck, Norris, Nye and Schall—16. Democrats, Balley, Bulkley, Bulow, Conen, Coolidge, Copeland, Costigan, Fletcher, George, Glass, Harrison, Hawes, Hull, King, Morrison, Rcbinson of Arkansas,. Smith, Stephens, Tram- mell and Walsh of Massachusetts—20. Farmer-Labor, Shipstead. ‘Total—37. Vote on Coal. ‘The roll call on coal tax follows: For—Republicans, Austin, Brookhart, Capper, Carey, Davis, Dickinson, Fra- zier, Hale, Hatfield, Howell, Johnson, McNary, Metcalf, Nye, Oddie, Reed, Robinson of Indiana, Shortridge, Smoot, Steiwer, Thomas of Idaho, Vandenberg, ! Walcott, Watson and White—25. Democrats, Ashurst, Barkley, Brous- sard, Connally, Dill, Hayden, Kendrick, Long, McGill, Neely, Pittman, Shep- pard, Thomas of Oklahoma and Walsh | of Massachusetts—14. Total, 39. Against — Republicans, Barbour, | Blaine, Borah, Fess, Goldsborough, He- Keane, Keyes, La Follette, Moses, bert Norris—11 Democrats, Bailey, Bratton, Bulkley, Bulow, Cohen, Coolidge, Copeland, Cos- | tigan, Fletcher, George, Harrison, | Hawes, Hull, King, Morrison, Robinson of Arkansas, Smith, Stephens, Tram- mell, Tydings, Walsh of Montana and ‘Wheeler, 22. Farmer-Labor, Shipstead. ‘Total, 34. TRIO GETS 20 YEARS | FOR BANK HOLD-UP By a Staff Correspondent of The Star ARLINGTON COUNTY COURT HOUSE, May 21—The three bandits who held up and robbed the cashier of the East Falls Church branch of the Falls Church Bank last Thursday ap- peared before Judge Walter T. Mc- C: in Circuit Court today, changed their original pleas of not guilty to guilty and were sentenced to 20 years each in the penitentiary on that charge and eight years each on charges of rob- bery of two companies in Arlington County. The sentences will run con- currently. The three men are Sergt. John A. Velke of Fort Humphreys and William B. Babcock and George T. Bellew, both of Washington. Velke and Babcock were each charg- ed with holding up and robbing A. H. Barbor, cashier of the bank, and the of the Washington-Virginia- d Coach Co. and the Arlington- Transportation Co. Bellew was ing and abbetting in e cases n arrested yesterday cery store at Cherry- arraig fore Judge B. M County Court this morning Cherrydale, who Malcolm William and Bruce Kline, of whom were arrested in Wash- n on information said to have furnished bv Tinsman, were held under bonds of $5,000 each. Will Rogers Says: BEVERLY HILLS, Calif. — Con- gress is human for the first time in years. They are broke, just like everybody _else, and are running around in a circle trying to pay what they >we. They got an $18,000,000,000 BY JAMES MONTAGNES. ARTICLE NO. 4. TORONTO, May 21, 1932. HILE superstitious people hold | 13 as_an unlucky number, the Canadian government looks favorably on part 13| of the special war revenue act, since the thirteenth piece of legis- | lation under that act refers to one o the largest sources of revenue, the sales | or consumption tax on manufactured merchandise. e legal language is set foi e | V\'o'l:‘i‘(\ng of a (ix which has become a smooth running piece of revenue ma- chinery, though in the beginning it caused much trouble. Were it not for the fact that the present depressmn‘ has caused a drop in other sources of | Tevenue, the sales tax might have been | abolished last year. Canadian business was given to understand by the Liberal | legislation, which preceded the presenl} Conservative government, that shculd‘ other revenue be sufficient to m!e!‘ government needs, this tax would be climinated. And to back up that state- | ment, every year since 1924 1 per cent of the tax rate was lopped off, til l‘ per cent was reached in 1930. But business took a drop. and the well- oiled machinery is still functioning, at a much higher rate. The regulations of the act call for & license to be taken out by every manu- facturer or producer, except for a few small manufacturers or producers who are exempted at the discretion of the minister of national revenue. This 11-1 cense is an annual affair and costs $2. There are about 18,000 such licenses in existence in Canada. i Tax Paid Only Once. While it is necessary for manufac- turers to take out a license, whole- | | salers and jobbers desiring a sales tax | license must apply to the minister at Ottawa, and if granted a license, put up bond equivalent to 12 per cent of the annual sales of the preceding year. | This bond ranges from a minimum of | $2,000 to $15,000 maximum. Proper bookkeeping is another requisite. Armed with a sales tax license, goods bought by a concern for use in manu- facturing merchandise do not have to pay the sales tax. It is but necessary to quote the sales tax license number This applies to domestic and imported goods, and allows licensed firms to sell materials required in manufactur- ing without paying a tax. The ultimate reason for this procedure is that the sales tax will only be pald once, when | the completed article is sold, whether to licensed dealer or unlicensed dealer. Goods bought for use by a licensed firm and not for further manufactur- ing, must, however, pay the sales tax. | A wholesale house buying cord and paper for wrapping is charged the sales tax, since this firm is the uitimate con- sumer. But if this firm buys material to make up a dress, purchasing from a licensed manufacturer, it does not pay the sales tax, the bill from the manu- facturer bearing the wholesaler’s license number instead. The retailer who buys the dress is charged the sales tax by the wholesale house. There is no sales tax on exports. That is one of the few exceptions. The act goes on to say that where goods are uncertain of value, the minister may determine the value for taxation pur- poses. This arbitrary settlement of value also applies to articles produced and given away free. Refunds Are Allowed. Certain articles, as boots and shoes, printing paper for newspapers and magazines, are exempted of half the sales tax. Refunds are allowed under | The Sales Tax in Canada Levy on Manufactured Merchandise Made Easily Collectable by Accurate Systems of Bookkeeping. | considerable | allowed, but is not always the sales | returns may be made from the head | give any advantage to a large organi- THE EVENIN( STAR. WASHINGTO ¥ N, D. C, SATURDAY, . MAY 21, 1932 i i a numer of categories, all pertaining to partly manufactured goods which are sold for further manufacture following tax payment. Producers of articles which are imported free may also claim a deduction if it can be shown that the Canadian article is at a disadvan- tage over the imported article because of the added sales tax. Payment of the sales tax is made monthly, within 30 days of month for which returns are filed. Penalties are provided for failure to make returns and for lateness. Records and books, under this act, have to be open for in- spection by government auditors at any time. There are two ways in which the sales tax may be charged. One is by a separate entry showing the amount of sales tax. This is the most preferred way of showing the tax and the easiest in making out returns. There is one criticism of this method by retail mer- chants, and that is that some small retailers forget this item on their bill when computing their selling price. In this way they are liable to absorb the tax as part of their profit The other manner in which the tax is computed, is as a percentage of the selling price of the article, the two items appearing as one on the state- ment to the retailer. This has caused confusion, since many firms do not mention whether their selling price includes sales tax or whether the sales tax will be added as a separate item. It has another angle. Where the sales tax is included in the selling price, the wholesaler makes his returns on the cost price plus overhead plus a reasonable profit. Thic method of making returns is tax percentage cf the selling price, since the selling price may have been carried to the nearest round figure after the sales tax has been added to cost, overhead and profit. Thus an article which has been computed as selling for $9, carries a sales tax of 54 cents. But the wholesaler would probably charge the retailer $9.60, the tax return then not being quite correct, allowing for a slight profit on the tax. Retailers are wary of bills in which the sales tax is included, knowing well that there is some additional profit included. Provision for Branches. ‘Where firms operating under sales tax licenses also operate branches, office. A copy of the head office license may he granted to the various branches. Goods sold to branches shall be taxed on the same price that such goods are sold to independent cus- tomers, the act states. This does not zation which manufactures, distributes and sells to the public throughout its own departments or subsidiaries. When in 1930 the tax was raised to 4 per cent, a regulation was inserted’ and ‘made applicable for & few days which would have given a decided advantage | to large chain organizations. But the oppoeition to this scheme was so great. whereas there was none in connection with the raise in the tariff, that this clause was quickly recalled. The government pointed out at the time that it did not want to inflict undue hardships on business, though it held that its scheme would bring in more revenue. Pleasure at the fact that there was no opposition to the 3 per cent raise in tariff accompanied the state- ment. Experience over the years has eliminated much of the friction caused at various times in_connection with this tax, and the tax is now easily collected YANKEES DEFEAT NATIONALS IN FIRST OF DOUBLEHEADER (Continued From Pirst Page) was trapped off second when Judge in- | tercepted West's throw and was out, West to Judge to Myer. One run. THIRD INNING. WASHINGTON—Brown was safe on | Lazzeri’s fumble. Myer singled to cen- | ter, sending Brown to second. Manush | sacrificed, Pennock to Gehrig. West | fiied to Chapman in left center and Brown scored after the catch. Cronin | \ | | By the Associated Press VIENNA, May 21—Austria had a new cabinet today, after 14 days of ne- gotiations following the resignation of | the government of Chancellor Karl | Buresch. | Engelbert Dollfus, Christian Socialist | (Catholic) minister of agriculture in the | Buresch government, finally succeeded in forming a coalition cabinet last night. Dollfuls himself will take over the agri- | culture and foreign affairs portfolios as | well as the chancellorship. Dollfus is | 40 years old | " The new government is a coalition of | the Christian Soclalists, the Heimatsbloc | (National Socialists or Fascists) and | the Agrarians. The Heimatsbloc has a | one-vote majority in Parliament. | " The cabinet | _ Pranz Winkler, vice chancellor; Franz Bachinger, interior; Emanuel Weiden- hoffer, finance; Kurt Schuschnigg, jus- | tice; Guido Jakoncig, trade; Hermann | Ach, public security; Karl Vaugoin, army; Anton Rintelen, education, and Joseph Resch, social welfare. 'KREUGER'S DEBTS | | | sent a long fiy to Ruth. One run. NEW YORK—Cronin mace a nice stop and threw out Combs. Cronin went in back of second to get Lary's bounder and threw him out. Ruth walked. Gehrig forced Ruth. Noruns. FOURTH INNING. WASHINGTON—Reynolds flied to Combs. Judge bounded to Gehrig. Lary threw out Bluege. No runs. NEW YORK—Brown tossed out Chap- man. Dickey bounced a single off Judge’s hands. Lazzeri hit into a dou- ble play, Brown to Myer to Judge. No runs. FIFTH INNING. WASHINGTON — Lary short left for Berg's fanned. Lary threw runs, NEW YORK—Cronin threw out Cro- setti. Pennock singled to left. Combs was safe when Myer fumbled, Pennock stopping at second. Lary walked, fill- ing the bases. Ruth hit a homer into the right field stands, scoring Pennock, Combs and Lary ahead. Gehrig got a double with a looper to short center. Chapman _ singled to right, scoring Gehrig. Chapman stole second. Dickey bounded to Judge, Chapman going to third. Lazzeri hit 4 homer into the right field stands, scoring Chapman ahead. Crosetti, up for the second time in the inning, took a third strike. Seven runs. SIXTH INNING. WASHINGTON—Manush flied to Chapman. Lazzeri threw out West. Lazzeri went into short right for Cro- nin's fly. No runs. NEW YORK—Ragland and Maple formed a new Washington battery. Pen- nock flied to Manush. Ragland tossed out Combs. Larry walked. Ruth with his three and two count put another homer into the right field bleachers, | scoring Lary ahead. Gehrig also hit a | home run into the right field bleachers. Chapman was hit by a pitched ball. Chapman was caught off first, Ragland to Judge. Three runs. SEVENTH INNING. | WASHINGTON-—Lazzeri went back | for Reynolds' high one. Gehrig got Judge's grounder and beat him to the bag. Bluege singled to right singled to center. second. Harris batted for Ragland and forced Maple, Lary to Lazzeri No runs NEW YORK—Harris went to | fiela. Leod at short and Freidrich went in pitch for Washington. Dickey walked Lazzeri walked. Crosetti walked, filling the bases. Pennock flied to Reynolds, | Dickey scored while Lazzeri took third after the catch. Combs fiied to Harris and on_his throw in Crossetti took sec- ond. Lary walked, filling the bases |again. Ruth grounded to Kuhel. One run into Brown No went pop. out Myer. left EIGHTH INNING. WASHINGTON—Chapman went to | nock tossed out Kerr. Maple fouled to | Crosetti. Maple | sending Bluege to| Kuhel to first, Kerr to third, Mc- | Leod threw out Crosetti, Gehrig going to third. Pennock struck out. Two runs. NINTH INNING. W ASHING T O N—Saltzgaver now playing second and Jorgens catching for New York. Kuhel fanned. Pen- No runs. COALITION CABINET FORMED IN AUSTRIA Dollfus Organizes New Government Following 14 Days of Nego- tiations. Match King Virtually Penniless When He Committed Suicide. Ask Moratorium Recall. By the Associated Press. STOCKHOLM, May 21.—Ivar Kreu-| ger, the world-famous “match king,"” who until he fired a bullet into his brain in Paris March 12 was considered the greatest financial genius of modern times, died practically penniless and owing $168,300,000, it was revealed yes- terday. | _The announcement was made by the Swedish Investigating Committee which | has been probing Kreuger's affairs since | his_suicide. The $168,300,000 is in personal debts and indirect liability against the match | king’s name, the committee said, and | there will be little, if anything, left for distribution to unsecured creditors. | The committee found that fictitious assets were set up on the Kreuger & | Toll books since 1924 and that the state of the books was such that it was ex- traordinarily difficult to produce a tefi- | nite balance sheet for the company. | “This being the case, the committee | considers there is no longer any need for maintaining the existing morato- HUNT INTENSIFIED | tioning, even with the police offering right field. Bird to center and Combs | rium, and it is therefore recommending IN'LINDBERGH CASE Schwarzkopf Says Police Are Continuing Search for Known Gangster. (Continued From First Page) connection with Curtls as an “inter- mediary” in the hunt for the Lindbergh baby is also under scrutiny, declined again to come to New Jersey for ques- to pay the expense. He has offered to | tell what he knows to a representative of the police who will come to Norfolk. Dr. Condon was praised last night by Col. Henry Breckinridge, Lindbergh's friend and counsel “The doctor is a very active and won- derful man," Breckinridge said. “It is too bad haif the people in the country are not just like him, with the same mensure of integrity and high resolve.” Recheck Curtis' Actions. Authorities once more absolved Cur- tis of suspicion in their main quest for the baby killers. The officlal attitude toward Curtis, moot subject of a two-day series of statements, finally appeared _definite when Col. Schwarzkopf last night an- nounced the boat bullder was in a New York Hotel the night of April 2 and “his actions are accounted for.” Col. Schwarzkopf then employed vir- tually his exact words of Thursday in saying “there is nothing that would in- dicate Curtis was connected either with the kidnaping or the collection of the ransom.” It was on the night of April 2 that Dr. Condon tossed the packet of $50,000 in_currency to an extortionjst in a New York cemetery, In between these ascertions, however, | the police head had told of continuing | his check of Curtis’ whereabouts saying | it would not be completed and corrobo- rated until next week. Busy Program Ahead. Police also made known that a busy | program still lies ahead of Dr. Condon. | They said they expected to take him to | large rogues galleries in New Jersey and Philadelphia. He already has viewed the likenesses of several thousand crimi- nals in New York City and Westchester County, New York. Dr. Condon motored from New York City grand jury chamber to police head- | quarters at New Rochelle, N. Y., yes- | terday, where he engaged in a heated | argument with James Curley, director of public safety there. | He refused to answer several of Cur- | ley’s questions and merely shook his head when asked if the man he sought to identify was connected with the Arthur (Dutch Schultz) Fleigenheimer gang. Permitted to See Pictures. | To other questions Dr. Condon replied | a loud tone by asking “Who are Finally Curley said | “Never mind who I am. You'll find | out soon enough.” ‘ Dr. Condon was permitted, however, | to study 750 pictures in the rogues’' gal- lery there. He then departed for a New | Rochelle school to conduct an exam- | ination of the teachers | In emphasizing their continued in- terest in Curtis’ part in the case, po- | lice said flatly: | “The entire story of Curtis is being investigated. All of Curtis’ associates including those previous to the Lind bergh kidnaping, will be questioned by investigators. The persons with whom Curtis was assoclated in Philadelphia are known to investigators and will be interrogated.” | As a sidelight to the Curtis-Dobson- Peacock angle a letter received by the clergyman’s mother in England told of his obtaining information from two gangsters. | GANGSTER TOLD OF SLAYING. | e | Known New Jersey Rum Runner Also Told Where Baby Was Hidden. | BALTIMORE, May 21 (#)—A man long identified with New Jersey liquor running activities was disclosed today | as the “mysterious gangster in Mary- | land,” sought for questioning in the| Lindbergh kidnaping case. | The man, who remained unnamed, | informed Arthur Mills, identification | expert at the Maryland House of Cor- | rection. that the body of the kidnaped | child would be found within 5 miles of | the Lindbergh estate two days before it actually was discovered. Mills, formerly a member of the Mary- | land State police, said the rum runner | further informed him that the baby | had been killed by blows on the head, and that the body had been hidden near the fliers’ home. Has Known Man Since 1929. “I didn't pay any attention to it at the time,” Mills said. “But later when I read that the body had been found, I communicated my information to Col. H. Norman Schwerzkopf of the New Jersey police. Two officers came here | yesterday to investigate it.” | Mills said he had first known the man at Ocean City, Md., in December, 1929, when more than a score of men were arrested while attempting to land a cargo of liquor on the beach. He sald he saw the rum runner two days before the body of the Lindbergh baby was found and that he complained of the police activity which hampered his liquor activities. Promised Action. “If somebody doesn't do something about this case soon, I will” Mills quoted the man as having said. He also | told him he knew several people con- nected with the case and that three or four persons were involved. Mills said. | Mills declined to give the name of | | communications along the way.” Down Near. Londonderry, Ireland Amelia Earhart Putnam and her ship, photographed at Harbor Grace yes- A. P. Photo. terday just before the Atlantic take-off. 'MRS. PUTNAM. AT 34, FAMOUS FOR NOTABLE ACHIEVEMENTS iWar Nurse, Social Worker, Aviation Edi- tor, Teac}ler. Commercial photograp}ler, | Ocean Flyer Since Leaving High School. By the Associated Press. NEW YORK, May 21.—Amelia Ear- hart Putnam, transatlantic fiyer, has crowded enough activity into her 34 | years to make careers for several wom- | en, or men for that matter. ‘War nurse, commercial photographer, social worker, aviation company ex- ecutive, magazine editor, teacher, mem- ber of numerous aviation committees are all part of her experience, as well as her mastery of the art of flying. She was the first American woman to be granted a license by the Federa- tion Aeronautique Internationale and is an_honorary major in the 38lst Aero- Squadron Although she is best known as the first woman to fly across the Atlantic, a_ distinction which she galned June 18, 1928, when she crossed from Trepassey, Newfoundland, to Buryport, Wales, in the trimotored monoplane Priendship, with Wilmer Stultz, pilot, angd Louls Gordon, mechanic, she also has made a transcontinental round trip in an autogyro. She was born at Atchison, Kans., in 1898. Her father, Edwin S. Earhart, is an attorney in Los Angeles. She has one sister. After graduating from Hyde Park High School in Chicago, she went to Ogontz School for Girls in Philadelphia. Be- fore finishing her course she left and | joined the Canadian Red Cross in 1917 | ‘a5 a nurse’s aide for war service. | | _After the war she entered Columbia | | University to take a pre-medical course and a year later went to California. It was in California that she became |interested in aviation as a recreation. She owned two planes and piled up 500 | s0lo hours in her aerial pleasure jaunts |about Los Angeles. | While in Los Angeles she studied commercial photography and in part- | nership with another girl ventured into | the business. | Returning East, she went to Boston, taught a university extension course at Lowell, then went into social service work. "It was from there that she ap- peared on the aviation horizon as a transatlantic fier. The sponsor of the flight of the | Priendship was George Palmer Putnam, | publisher. On_February 7, 1931, Put- nam and Miss Earhart wege married at the home of his mother at®oank, Conn. |~ Mrs. Putnam’s activities in the inter- | ests of aviation include positions as vice president, in charge of public relations, for the New York, Philadelphia & | Washington_ Airway; assistant to the| | general traffic manager of the T. A. T.- | Maddux Air Lines, aviation editor of | the Cosmopolitan Magazine and mem- | berships on committees of the National | | Aeronautic Assofiation and the Na-| | tional Glider Association and other avi- | ! ation organizations. | | | the man, but said he had sent it to the New Jersey police officials investi- gating the kidnaping. JAFSIE IN CONNECTICUT. Dr. Condon Drives Hurriedly to Dan- bury From New York. DANBURY, Conn., May 21 (P).—Dr. | John F. Condon, “Jafsie” of the Lind: bergh kidnaping case, arrived at a road- house on the outskirts of Danbury (the Beau Chalet) shortly before ~noon (Eastern standard time) today after driving up here at a high rate of speed from New York Two New York detectives, trailing him in another car, said they did not know themselves where he and they were going “We haven't the slightest idea,” one of them said Condon_announced he was going to have lunch at the road house, but did not say where he was going from there He ran into some acquaintances in the cafe and, pointing to the reporters and the detectives with a smile, said: “I just can't seem to get away for a quiet little jaunt by myself.” Two New Jersey State policemen called at Condon’s home, in the Bronx, before he left. It had been announced he would examine rogues' gallery pic- tures in Newark today. : After talking with him a few minutes they went away, returned, had another brief _conference and left again. Then Dr. Condon started out. There was a new driver at the wheel of his car. No one recognized him and Dr. Condon did not identify him. He did not say anything to anybody. Much of the time on the drive up into Con- necticut he and his entourage traveled at a rate of more than 60 miles an hour. Before leaving home, Dr. Condon sat for a time on the front porch of his house in the Bronx, reading news- papers. Shortly after his arrlval at Danbury, he said his next stop would be Pawtucket, R. L. and he also want- ed to go to New Bedford, Mass. “I have received a communication,” he said, “and expect to receive other He did not say what the communications were. Somebody asked him if he was head- ing for Block Island, off the Rhode | Island coast, for a vacation. “I want to take a vacation there some time,” he replied, “but I'm not taking any vacation now. I want to bring those scoundrels to justice.” CHILEAN STRIFE ENDS SANTIAGO, Chile, May 21 (#).— Chile emerged today from the state of siege declared April 7 as a result of a run on the Bank of Chile. President Juan Esteban Montero an- nounced last night that full constitu- tional liberties were restored after 10 pm. - TOTAL $168,300,000 | President Greets National Oratory Finalists |JOINT COMMITTEE PROPOSED IN HOUSE | inued From First Page.) that the governors of the different Fed- | eral Reserve banks should proceed in a | similar manner and as soon as the | chairmen of such committees are | known, I shall be glad to invite them to | Washington in order that the whole | program may be set upon a national basis.” | | _ It was learned definitely yesterday that President Hoover is not contemplating | any movement such as resurrecting the Council of National Defense, which was | | created as a war measure during the | World War to serve as something of a | | supergovernment agency during i period of depression. This definite | position of the President’s set at rest | | reports that have been current recently | that he was contemplating such action. | Spokesmen for Mr. Hoover, in repre- senting the President’s position, em- | phasized the fact such a body if brought | to life now would serve no constructive | purpose, and that nothing could be ac- | complished as a result. It was pointed out further there is no need for such a course, when it is considered that | the President has at his command in this emergency his cabinet, the Recon- | struction Corporation, the Federal Re- | serve Board, the Farm Board, the Farm | | Loan Board and the President’s organi- | zation for unemployment relief, as well as the various governmental bureaus | with their many experts. | . All of these groups cover the entire ‘fleld and all of them, according to | White House authorities, are co-operat- {ing to bring about an end to the de- pression. This group, in the President’s | opinion, constitutes the most effective kind of economic council. | MAN HELD WI:IO CLAIMS TO KNOW BABY SLAYER Sent to Gallinger Hospital for Ob- servation After Asking Right to Make Arrest. Headquarters detectives today took into custody and sent to Gallinger Hos- pital for mental observation a man who walked into police headquarters and claimed to “know the woman who killed the Lindberg baby.” Asked by Detective Sergt. A. D. Mansfield who the woman was, the man, Hal Brown Carthon, 31, said he would not tell and asked to be em- powered with the right to make the arrest himself. He started to walk out of police headquarters but was de- tained by Sergt. Mansfleld. Carthon gave a downtown hotel as his address. TO HELP BUSINESS | % 5951000 PROFIT ’ —_—————e——— D . . WONIAN HELD ON ARSON CHARGE Quoted as Saying She Fired Home to Prevent Posses- sion by Another. Attired in men's clothes, Mrs. Flor- ence Healey, 57 years old, of the 600 block of D street southwest, was jailed at Upper Marlboro, Md., on an arson charge early today after a fire of alleged incendiary origin had destroyed a bun- galow in Greater Capitol Heights, Md. Constable Earle Blackwell found the woman on Barton avenue, about three blocks from the fire, and arrested her after two milk men said they saw “z man” set fire to the house. Blackwell claims she had coal oil and matches in her possession. Although the constable was uncertatn 8s to who owns the house, which was unoccupied, he said Mrs. Healey told him she fired it to prevent some one else from gaining possession. Report Seeing Person in Yard. Fire Chief William Tierney of Greater Capitol Heights said the milk Fillmann, 3937 Benning st, and C. R. Bush, 4934 Forty-seventh street, told him they saw a person, whom they thought to be a man, in the yard of the house with an oilcan in his hand. The blaze was already under way, s0 the milk men sped to Crystal Spring avenue and C street and notified Tier- ney. Despite the efforts of Greater Capitol Heights and Capitol Heights firemen the house was destroyed. Tierney assisted in investigating the case. The local fire company and fire- men from Capitol Heights were called too late to save the house. According to Chief Tierney, who questioned the woman, she said she had recently acquired the property from a relative who died. Other rela- tives were attempting to secure it, and she was quoted as saying she would rather destroy it than let them have it. LAID 0 WARNERS Film Brothers Charged With Manipulating Own Stock, at Senate Probe. (Continue Senator Glass, Democrat, of Virginia, asked. Warner has been in the moving pic- ture business 28 years and previously was in the shoe business “Have you made money?” Senator Couzens, Republican, of Michigan, ed. “We have.” “More than in the manipulation of tocks?” “Everything we made we made out ur'éhe development of pictures,” Warner said. Stock Purchases Told. He testified that he had bought stocks, however. Couzens said he wanted to know whether they were more interested in the manipulation of stocks than devel- opment of the company. Gray said he expected to prove ‘Warner had profited $9,251,000 in 1930 in buying and selling the stocks of his own company. He said the selling was when “journals were boosting the value of the stock before the public” and the buying was when the newspapers began to depress the price. wiX am going to establish,” Gray sald, that this man, through undercover channels and by covering up his trans- actions, sold his stock while Jjeurnals were boosting the value before [hew publlc."B arner Bros. was organized in' 1925 with 550,000 shares of gommon stock. ‘When the Stanley Co., a theater-own- corporation, was acquired about four years later, Warner said, the stock was increased to 7,500,000 shares. The Stanley Co. he said, “owned about 200 theaters in different parts of thz! czaumry,” ray questioned Warner about the details of the organization, the witness called his counsel, Samuel Schneider, to his side at the committee table. Warner_estimated the common stock Warner Brothers had out in January, 1930. at 2,500,000 shares, and placed his holdings then at 303484. He subse- quently said this represented the | amount held jointly by himself and his two brothers, Albert and J. L. Warner. Transactions for Three. “When you bought and sold any of this stock you bought and sold it for all three?”’ inquired Gray. “Correct,” said the witness. “Does that 303,000 shares have re- lation to that 2,500 000?” asked Sena- tox; Couzens, Republican of Michigan. e “So that you controlled the ente: with a little over 10 per cent otrp[‘gfi: stock?” Couzens asked. Warner responded that “the beard of directors” controlled the company. The three brothers, he said, were among the 11 directors. “There is no doubt, is there?” asked Gray, “that you and your brothers con- "D“V?Id ‘!,he operation of it?” “We designated the operatios p Warner said. s Couzens asserted “as a matter of fact every one of the directors was selected by Warner Bros. The Warner brothers and their friends were in control.” Warner said his transactions during 1930 v]s!ere in behalf of his brothers and The trades were made through half a dozen different brokers and were handled through accounts under the names of Moe Rosenberg and Edward Charness. . “Why did you deal names?” Gray asked. .. Schneider replied for Warner, that we found when we traded in the names g{nl::sn;y or Albert Warner it influenced Not Deceiving Public. He added that the purpose was to prevent brokers and not the public from knowing what, they were doing. Most | of the trading was done through the brokerage house of Schatzkin & Co. The books showed Warner started selling Warner Brothers stock in Janu- ary, 1930, Gray said, and during that| month Warner sold 55,000 shares and bought 7,800. February sales were placed by Gray at 137,950 with none bought. Schneider corrected him and said the February total was 144,000. Warner explained that he wanted to “diversify” his holdings. “So _you disposed of more than half your holdings during the months of Jnngnry and February?” Gray asked. “Yes ‘Warner said another reason for the sales was that the company needed cash. “Did you loan any of the money you under those | |got from the stock to the company?” asked Gray. Warner replied that he loaned the company $500,000 in May, 1930; $400,- 000 in June, $2,000,000 in July and $465,000 in August, receiving 10-year debentures. Felt Entitled to House. ‘The house, according to Mrs. Healey's son, Wilbur, was owned by her sister, Mrs. Ida Gates, who died about seventh months ago. Since then, Healey explained, his mother has been caring for the dead woman's demented son, Harry, 39. “I guess my mother felt she was en- titled to the house in exchange for tak- ing care of Harry,” said Healey. “Some other relatives—I don't know exactly whom, because she never told me much about her private affairs—have been trying to keep her from getting pos- session of the house.” James Dunkum, 10, who lives in an apartment above the one occupied by Mrs. Healey at the D street address, said she sent him to a neighborhood store for a gallon of coal oil last night, “She didn’t say what she wanted it for,” the boy said, “but I didn’t think any- thing about it because she .uses oil Jamps in her apartment, and I had gotten oil for her before.” The boy’s mother, Mrs. Callie Lee, and other occupants of the D street house, said they had not seen Mrs. Healey since early last night. Mrs. Healey has another son, John. Their mother, they said, has been a widow for many years and has been in poor health. A door fell on her leg several years ago, Wilbur Healey said, and she has been “almost a cripple since then.” taining money for the company was only one of his purposes. Gray and Schneider disagreed over amounts of the sales. The latter said the sales in March were 3,400, but Gray said the reccrds showed they were 16, 700. In April, Gray said, the sales were 1,300 and purchases 300. Schneider said the sales were 37,500 in May, but Gray said 31,200. Gray developed that dividends of $4 a share were abandoned in the latter part of 1930, but Warner denied he knew that action was coming. “Do you mean that as an officer of the company you did not know the earnings were falling off?” “Not at first.” Gray then called attention to a state- ment published in the press in August saying earnings were not enough to cover dividends. Business Over World. Warner said the company’s business is spread all over the world and it is not possible to tell what the company is making. 'As president, you knew each day the general run of the business?” Senator Townsend, Republican, of Delaware asked. “Yes,” Warner agreed. 'As a matter of fact, you knew in the Spring that your business was falling off?” Gray asked. “Yes,” Warner replie and then caught himself and said, “Spring? Nt not until the latter part of the year.” “Well, in the Fall you began to buy back,” Gray said. “Yes.” Schneider testified that in August 25,800 shares had been bought and only 100 sold. In September, he said, 74,300 were bought and 42,000 sold, and in October 112,900 were bought. For November. he added, the pur= chases were 93,000 and December 33,600, Schneider said the total sales for the year were 231,055 shares, from which $12,850,000 was realized, while the pur- chases were 340,400 shares, costing $6,- 932,158. The total profit, Schneider said, was $5,918,382. Gray said his figures showed that during the year Warner sold 305,350 shares, amounting to approximately what he owned at the beginning of the year. The counsel said his records in- dicated 326,500 shares had been bought. Questioned by Gray, Warner agreed the total profit was a little more than $7,000,000, counting stocks that were accumulated during the transactions. Senator Glass said, “I am beginni to feel I'm a little obtuse because haven't got in my mind what this has to do with the Stock Exchange.” Norbeck Interprets Figures. Chairman Norbeck said the figures showed Warner sold for an average of} 64 and bought back for an aver of 15. Gray said he would present to th committee newspaper stories showi Warner values were being boosted un! August 6. After that date, Gray said,| the publicity suddenly turned unfavor= able. Senator Couzens asked Warner “if it is ethical for the officers of a large corporation to trade back and forth in| the stock of his own company.” “I think it's ethical and helpful,”| Warner saild. He added he had not bought and sold, but had first 0ld and| then bought it back later. Then you think it is perfectly ethi. cal for any officer of & corporation with inside information to bu( and sell th stock?” Couzens said. Summing up his case, Gray said re ords of Schatzkin alone showed War- ner had sold his stock for $16,520,000 and bought it back for $7,544,000 with a profit of $8,97¢,504. In addition, he| id. Gray asked why, if Warner's pur- first plaster on * the country, and now - they are pop-eyed trying to get a second mortgage. They will eventually find out they are just like other folks. They will have to cut down. No taxpayer is going to make *em ‘a loan if are going to keep as much help as they always have. pose was to get money for the com- pany, he did not borrow on his stocks |rather than selling them. Never Borrowed on Stock. chgh tner brokers, saying! Warner said he never borrowed on |they might have lost in those operations. stocks, asked whom he could have bor- | Gray corrected the testimony saying rowed from and said there was “no the average price at which Warner reason for me to obligate myself by bought was 23 and the average saleg money.”. He added that ob- price 54, to left for New York. Myer flied to | to the board that it request the Swedish Byrd. Freidrich popped to Lazzeri. | government to recall the moratorium West beat out a grouncer to Gehrig. | and take the necessary steps to have McLeod walked. Reynolds flied to the company declared bankrupt.” Byrd. No runs. | NEW YORK—Gehrig singled to right. Chapman doubled to right center, scor- ——————eee Five of the six participants in the Ninth National Oratorical Contest finals in Constitution Hall tonight were received Stone Embassy Windows. at the White House yesterday by President Hoover. They were presented to the Chief Executive by Randolph Leigh, 4 director general of the contest. They are, left to right: John J. Scanlon of Springfield, Mass.; John P. Ansley of Bir- ing Gehrig. Myer threw out Dickey, BERLIN, May 21 (#).—Some one mingham. Ala.; Miss Muriel Herzstein of New York City, President Hoover, Miss Minnie Sadle of Washington, John H. Chapman going to third. Lazzeri dou- |hurled rocks through two windows of Jarman, jr. of Oklahoma City, Okla., and Mr. Leigh. Miss Lucylle Goldsmith, Los Angeles entrant in the contest, did not bled to left, scoring Chapman., Mc- |the Japanese embassy today. reach Washington until this morning. . s < - -——Star Staff Photo. g o He is invest ations N