Evening Star Newspaper, May 23, 1932, Page 2

TA-2 ¥ LINDBERGH NOTES GIVEN ALL POLIGE Justice Department Asks Tast of Handwriting of All Prisoners in U. S. ‘The Department of Justice today sent to police of the Nation phcto- graphic reproductions of two letters re- ceived by Dr. John F. Condon during the futile “Jafsie” negotiations with kidnapers of the Lindbergh baby and requested that the handwriting be checked against that of all prisoners. The lecters, scribbled incoherently and illiterately by a mian declared by handwriting experts to have been the author of the original ransom note, were the last to be received by “Jafsie"” rior to the bitter climax of the $50,000 08 %. One gave directions for the midnight rendezvous which resulted in payment by Dr. Condon of the intended ransom to a vague form behind a cemetery wall on April 2 last. Other Told of Yacht. ‘The other, handed to Dr. Condon in exchange for the package of Lind- bergh's money, contained the instruc- tions that led Lindbergh and three ;‘\?mp‘an:mw on a wild goose chase to arthas Vineyard in quest of a vacht, the “Nelly x b Both letters appeared to inexpert eyes as the handiwork of the same person Dr. Wilmer Souder, handwriting expert of the Bureau of Standards. and B. C. Farrar, Treasury handwriting authori- y. advised Lindbergh prior to payment of the money that the letters were written by the individual who wrote the ransom note found on the window &lll of the baby's room i The letters show some of the charac- teristics that have given rise to the opinion that the author was of Teu- tonic nationality. The letter “K" re- sembles German script, for example, and “boat” is spelled “Boad.” The ran- som note, not shown in the circular, contained the German word “gut” for Letters Give Directions. The letter giving directions for the Tansom payment follows Cross the street and walk to the next corner and follow Whittemore Ave. to the soud 'dmxc the money with you. come alone w cting Lindbergh how to find the baby follows 3 d Nelly. it is a , two person are on the Boad. are innosent. you will find the Boad between Horseneck Beach and Gay Head near Elizabeth Island. The circular was mailed to several thousand chiefs of police, wardens of penal institutions and other law en- forcement officers by the United States Bureau of Investigation, acting on re- quest of Col. H. Norman Schwartzkopf, head of New Jersey Statg police. Will Examine Prisoners. Tt was received and made public here today by local police. Lieut. Fred Sandberg, in charge of the police de- partment’s identification division, pro- ceeded at once to investigate handwrit- ing of prisoners and other suspects ar- Tested here. Col. Schwarzkopf said the reproduc- tions in the circular were “specimens of the handwriting represented by two notes transmitted by the alleged kid- | napers in the Lindbergh case,” and he requested that a search be made of all records “contalning the handwriting of all persons in your custody or any per- sons under your observation or cog- nizance.” Any_information ed as a result of such an inquiry should be forwarded immediately to the New Jersey author- itles, it was stal together with samples of the handwriting of any sus- pected person. QUESTIONED IN DEATH . OF LORD KITCHENER Adventurer's Diary Hints of Re- sponsibility in British War Mystery. - By the Associated Press. NEW YORK, May 23.—A man who, E)hce said. had a diary or notebook timating he was in some way respon- sible for the death of Lord Kitchener, chief of staff of the British Army, who lost his life in the North Sea during the World War, was under arrest at police headquarters today. Lord Kitchener lost his life in the North Sea when the H. M. 8. Hamp- shire was lost. Police said the man was being held in connection with the burning of a British vessel in which several lives were lost during the World war. Although police declined to disclose the identity of the prisoner. it was learned he was Capt. Fritz Jcubert Du- quesne, who escaped from the prison ward in Bellevue Hospital in 1919 and fle by airplane to Mexico. At the time of his arrest in 1919 Duquesne, former Boer rebel, newspaper man and adven- turer, was wanted in England, police said, in connection with tho burging of & vessel following an explosion. FORMS BELGIAN CABINET BRUSSELS, Belgium, May 23 (#).— Jules Renkin, who resigned as premier Wednesday and was asked by Kin Albert the following day to constitute a new ministry, succeeded in doing so ay. M. Renkin took the finance portfolio addition to the premiership. Foreign affairs remain in the hands of Paul Hymans. The cabinet crisis came as a result of a controversy over recogni- tion to be accorded languages used by minority groups. AKRON CRUISES NORTH SUNNYVALE. Calif, May 23 (®).— ‘The Navy dirigible Akron left her moor- ing mast here at 8:44 am. (Pacific standard time) today for a trip to the Pacific Northwest. "The cruise is ex- pected to require two days or more. ‘The Akron will pass over Portland, Oreg.: Seattle, Wash., and other North- west cities. WHO'S WHO In Olympics WORLD stars in all sports will assemble at the 1932 Olym- ples in Los Angeles. From this army of contestants, a new set of champions will emerge. Alan Gould, sports editor of The Associated Press, introduces you to the outstanding athletes in the series “Sifting Olympic Hopes” a comprehensive analysis of teams and contestants representing the nations of the world. “Sifting Olympic Hopes” starts today in the sec- tion of The Star and continue daily, an exclusive feature. | { lower note instructed Lindbergh | which the baby was supposed to be. | requested to check this handwriting with that of known criminals. EPRODUCED above are photographs of the last two notes recelved by “Jafsie” in the $50,000 ransom hoax. F. Condon to the spot where he pald $50,000 to the tricksters and the ‘The upper one directed Dr. John to lock for the Nelly, fictitious b #s on Police of the Nation have been (ONFESSION DENIAL BY CURTIS SCOUTED | Police Say Hoaxer’s Lawyer Did Not Say Trickery Was Used. (Continued Prom First Page.) spent the remainder of the night at his hotel.” | He heard no more of these men. He was told to stand by, which he did until the finding of the baby's body. “JAFSIE” IN MASSACHUSETTS. Speed to Great Barrington to Organize Hunt for Slayers. GREAT BARRINGTON, Mass. May 23 (#).—Dr. John F. Condon, the “Jafsie” who paid $50,000 in an_attempt to ef- fect the retirn of the kidnaped Lind- bergh baby, arrived in Great Barring- ton today and sald he would organize a search for the kidnapers in this vicinity. Dr. Condon left his home in New York early in the morning in an auto- mobile driven by a one-armed neigh- g%n but declined to reveal his destina- n. He was equally secretive upon his ar- rival here and, except to say that he planned to organize the search for the kidnapers in New England, would not discuss his reasons for coming here. He visit Pittsfleld. Leaving New York this morning and motoring up the Bronx River parkway, Dr. Condon traveled to Wingdale. There he talked for a few minutes with & man at the construction site of the Harlem Valley Stream Hospital. | The hospital is to be a branch of | Grasslands, a State institution for the | criminal insane. | Then Condon and his driver headed | toward Millerton. The educator, who carried & heavy coat over his arm, started the journey from his home 5:15 am. Has “Real Police Dog.” The back of the automobile, a coach, appeared to be filled with luggage, covered with a blanket, on top of which was a police dog. A small suit | case was nn?ped on the luggage rack | on the rear of the car. driver of the car refused to disclose his identity or his destination. His only comment was that the dog was a “real German police dog.” Asked if he meant the dog was trained for the apprehension of criminals, the man answered “Yes.” Later it was learned that the driver Goodwin of the Bronx. A sister of Goodwin said Dr. Condon had been a friend of the family for many years. She declined to give any information regarding today's trip except to say she understood her brother would be away over night. An automobile containing two New York City detectives followed Dr. Con- don to Scarsdale, where the two cars | pulled to the side of the road and Con- | don held a short conversation with the detectives. Condon then re-entered the car driven by the one-arm man and they drove off at high speed, soon out- distancing the_ detectives’ car. When they reached Wingdale the detectives were not in sight. Dr. Condon said yesterday he had in- tended to make a trip to Newport, R. I, adding that if it had not been for the storm he would have flown to Block Island Saturday night. | Several hours after Dr. Condon drove ‘away the two Jersey detectives who have { accompanied him on visits to rogues’ | galleries arrived at the Condon home. They remained at the house about five minutes and drove away. Is Going Fishing. STOCKBRIDGE, Mass, May 23 (#). —Dr. John F. Condon, who negotiated {under the name of Jafsie for the re- turn of the kidnaped son of Col. Charles A. Lindbergh, passed through Stock- bflfi: today and said he was going on a ing trip. Dr, Condon made no mention of a statement he had made a short time previous in Great Barrington to the ef- fect that he would organize a search for the kidnapers in this vicinity. Inasmuch as his companion, Walter Goodwin, is a Summer resident of Becket, his interviewers concluded that Dr. that Berkshire Hill community. GANGSTERS SAW GOVERNOR. TRENTON, N. J., May 23 m'gg:. A. Harry Moore today confirmed that three weeks ago four reputed RS Lo b c leader, aj 0ac! n:i‘d‘;flflg,wnh an er to aid in the Lindbergh case. Gov. Moore said that he was walk- % home whea the four men ludde'xlhz him end told him said later in the day he planned t| of Condon’s car_today was Walter| Condon actually was en route to | PAGE INDICTMENT DEMURRER UPHELD Grants Defendants Bill of Particulars. Special Dispatch to The Star. CUMBERLAND, Md, May 23—The full bench of the fourth judicial circuit of Maryland, Chief Judge D. Lindley Sloan and Associate Judges Albert A. Doub and Frank G. Wagaman today sustained the demurrer of the defense to the indictment against State Bank- ing Commissioner George W. Page, charging malfeasance, but overruled | demurrer to the indictment against Page and State Senator Emory L. Coblentz, president of the closed Cen- tral Trust Co. of Frederick. The mo- tion for a bill of particulars also was granted. The demurrer of the State to the giea of abatement made by the defense two cases was sustalned. These are the depository cases, involving the charge that Coblentz and other offi- cials accepted deposits when they knew the Central Trust Co. was insolvent. These cases have tentatively been set | for trial Wednesday and 46 witnesses are to be summoned. ‘The demurrer sustained in the Page indictment was that facts set up did not constitute an offense under the laws of Maryland. defense that Page might have erred in permitting the sale and transfer of assets of the Washington Trust Co. to the Central Trust Co., but it was not spiracy to defraud. volve charges against Coblentz, one against State Banking Commissioner other banking officials jointly. they were. He he felt “none too comfortable. ‘The men told the Governor they would give all assistance in obtaining the return of the baby provided Capone who is serving a term in Atlanta Peni- tentiary, be given “full credit.” “They said they believed Capone | could help get the baby,” the Governor repe “I promised to give their in- "’"’,‘.‘""“ to Col. Lindbergh, which I As he was leaving the house the | did. GRAND JURY MEETS TODAY. Dean Dobson-Peacock “Considered In- significant” in Case, Police Say. HOPEWELL, N. J, May 23 (®).— | John Hughes Curtis may know by to- night whether he is to be indicted for his bogus bid to get the Lindbergh baby back. ‘The Hunterdon County grand jury | convenes today and is expected to con- sider the case of Curtis, now in jail accused of giving false information and hindering the hunt for the kidnapers and murderers of the child. The Norfolk man’s attorney, Willlam C. Pender, conferred with him yester- day after a trip to Philadelphia, where he was understood to have tried without success to raise $10,000 bail. Search Still Continues. Col. H. Norman Schwarzkopf said the hunt was still in progress in Mary- land for a New Jersey bootlegger said to have predicted the finding of the child’s body. Schwarzkopf also said Rev. Dean H. Dobson-Peacock, whom Curtis enlisted in his “negotiations,” is “considered in- significant as far as the investigation is concerned.” Dr. John F. Condon, who paid $50,000 ransom to a man in a Bronx cemetery, was expected to visit rogues’ galleries in New Jersey today trying to put po- lice on the criminals’ tracks.. A police bulletin yesterday contained a denlal of a rumor that has spread far and wide during the last week. “There is no truth to the statement that Betty Gow (Lindbergh nursemaid) has confessed or has admitted any im- plication in the crime,” the bulletin said. DEAN ASSAILS GOSSIP. NORFOLK, Va., May 23 (#).—Details and time for arranging bail for John Hughes Curtis, held in Jail after confessing that his negoti- ations to recover the Lindbergh baby were hoaxed, are being left entirely in the hands of his attorney, W. C. der, it was announced today. Meanwhile the Rev. H. Dobson-Pea- the story originally told by his asso- clate. From his pulpit yesterday Dean Dob- that judgment of Curtis be withheld until plete story is known. Court at Cumberland Also| It had been held by the | Page and one against Coblentz and cock remained & stanch defender of | 5Y) HOUSE REJECTS 213 BEER BILL 0’Connor-Hull Measure to Levy Tax of 3 Cents a Pint Defeated. (Continued From First Page.) in the world which does not utilize the liquor traffic as a revenue producer. England, with one-third of our popula- tion, derives nearly $700,000,000 & year from taxes on liquor. The chief item of sales tax receipts in Canada is made up of taxes on liquor. In 1910 40 per cent of the revenue of the United States was derived from internal revenue im- positions on liquor. “In these days of a universal demand from the country that we levy the taxes necessary to ce the budget, what fairer, less objectionable tax could be imj than that suggested in this b Retalls at 10 Cents a Bottle. “The practically universal demand that the saloon be forever abolished is answered by this bill. The saloon can- not exist without draft beer, which re- quires a bar and all its appurtenances. Unger this bill the beer can only be sold in bottles, not to be consumed on the premises where sold except 1M a regu- larly established dining room of & hotel, restaurant or duly incorporated club, with each member paying annual dues of not less than $10. It is expected that this beer will be sold in the chain stores and other stares and should retail at 10 cents a pint bottle, including the tax.” Representative Willam E. Hull of Illinois, co-author of the bill, argucd that the legalization of 2.75 per cent beer would be a great benefit to farm- ers of the country. “If you will legalize 2.75 beer, by weight, 1t will do more for the relief of the grain farmer than anything that has been proposed for his relief in the last decade,” sald Mr. Hull. “I estimate that the legalization of a non-intoxicating beer will eventually create a market for 120,000,000 bushels of barley.” Representative Granfleld, Democrat, of Massachusetts also spoke in support of the beer bill. He said: “This bill will write into the Vol- stead act 8 sane, sensible and honest definition of intoxicating beverages as a substitute for the present dishonest legal limit of one-half of 1 per cent, which has been characterized repeatedly as a legislative lie. It will open up a large source of revenue and replenish an impoverished Federal Treasury at a time when the taxpayers of this coun- try are indignantly demanding release from excessive taxes.” Representative Blanton of Texas, an ardent dry, made a point of order against the vote on the ground that it affecled the eighteenth amendment and that the House has already turned down a motion to discharge a commit- tee from further consideration of a resolution proposing to resubmit the eighteenth amendment. O'Connor declared the beer bill was an entirely different proposition from a resubmission of the eighteenth amendment. In this he was supported by Representative La Guardia of New York and Representative Crisp of Georgia. Speaker Garner overruled Blanton's point of order and debate on the motion to bring the beer bill before the House was immediately begun with 10 minutes on a side. But 50 many wet members wished to be heard that Mr. O'Connor parceled time out a minute or a half a minute, or even a quarter of a minute to individual members. Crisp told the House the Ways and Means Committee had no intention of reporting out the bill until after the eighteenth amendment has been re- pealed or until the Volstead act has been modified or repealed. He said that when the revenue bill was before his committee, Representative Cullen of New York had offered an amendment to tax beer, and that the committee had voted 16 to 7 against that amendment. He pointed out that later, when the revenue bill was before the House, a beer amendment was offered, and de- feated by a teller vote on March 25, 216 to 132. Beck Opens Debate. Representative Beck of Pennsylvania, wet Republican, opened the debate, in sisting that passage of the bill was in no sense a nullification of the Consti- tution, in that 2.75 beer is not intoxi- Britten of Illinois, an indication of corruption or any con- | cating. Representatives Fourteen more indictments found by | Linthicum of Maryland, La Guardia of the Carroll County court in these cases New York, White of Ohio, Sabath of were received here today. Twelve in- | Illinols, Howard of Nebraska, McLeod of Michigan and Black of New York 2ll_spoke in favor of the beer bill. Mr. Blanton opened the debate for the drys, reading to the House an attack on alcohol and its effect on the human race by the late “Bob™” Ingersoll, celebrated agnostic. e The strong feeling running through the House on this wet and dry issue made itself manifest during the debate, with some of the speakers interrupted by applause and others by boos. ‘When the revenue bill, now before the Senate, was in the House a beer amend- ment was offered and defeated on a division, 216 to 132. Earlier in the ses- sion a motion to discharge the com- mittee in charge of the Beck-Linthicum resolution to resubmit the eighteenth amendment was beaten by a much nar- rower margin, 227 to 187. The signers of the petition which brought the beer bill to the House for vote included 77 Democrats, 67 Repub- licans and 1 Farmer-Labor member. The wet and dry issue cuts squarely across party lines in the House as it does out in the country today. Recently in the Senate an amend- ment to the revenue bill to legalize 2.75 per cent beer was turned down by an overwhelming vote, 61 to 24. The amendment was offered by Senator Tydings of Maryland, who at the last moment changed his vote from “aye” to “no” so that he might later seek re- consideration of the vote b amendment was defeal Senator Bingham of Connecticut also has drafted & beer amendment to the revenue bill which he pians to offer. SOCIALISTS MAY TAKE PART IN FRENCH CABINET By the Associated Press. PARIS, May 23.—A number of local Socialist organizations in France have voted in favor of participation in the next cabinet on certain conditions. The conditions included acceptance of such Socialist programs as reduction of military expenses. unemployment insur- el decision ressparag a] N regar participa- tion will be made by the Socialist con- gress to be held at the end of the month. The attitude of the Radical Socialists will be determined May 31 by the Ex- ecutive Committee. —_— SOCIAL-DEMOCRATS GAIN FRANKFORT-ON-MAIN, Germany, May 23 (#)—Returns from muni elections in the Hessian town of Vilbel showed today that the National So- clalists had lost two-thirds of their Hitlerites got 208 votes. The Communists also lost materially, while the Social-Democrats increased their strength from 93 to 1,718. Flower Show at Upperville. WARRENTON, Va, May 23 (Spe- flower show will cial) —The be held in the school auditorjum ‘Thirteen S 5, from'3 40 6:30 Do Classes ‘aro listed. . En Route Here to Demand Bonus Payments BAND GROWS AS IT TRAVELS ACROSS COUNTRY. A N army of war veterans, which has been augmented on its way across the continent, is traveling by freight trains to Washington, where it will meet as an aggregate organization to demand payment of the bonus. pose of the veterans, the nucleus of which started from Oregon, is to remain in the Capital until Congress accedes | 10 its demands. Photo shows the men as they pitched “Camp Bonus” in the railroad yards at East St. Louis. i ‘The pur- —Wide World Photo, By the Associated Press. The text of President Hoover's letter yesterday to Herbert S. Crocker, presi- dent of the American Society of Civil rs, follows: El?‘xl‘n:;\ in receipt of your kind letter of May 19, and I have also the presen- tation of the subcommittee of the so- ~iety suggesting that the depression eral Government bonds to finance & new program of huge expansion of ‘public |an' construction, in addition to the already large programs now provided for in the current budgets. The same proposals have been made from other quarters and have been given serious consideration during the past few days. Lists Possible Aid Measures. “The back of the depression cannot be broken by any single Government undertaking. That can only be done with the co-operation of business, bank- ing, industry and agriculture in con- junction with the Government. The aid the Government may give includes: “(A) The quick, honest balancing of the Federal budget through drastic re- duction of less nesessary expenses and the minimum increase in taxes. “(B, The avoidance of issue of fur- ther Treasury securities as the very keystone of national and international confidence upon which all employment %) The continuation of the work of the Reconstruction Corporation which has overcome the financial strain on thousands of small banks, releasing credit to thelrbuu%nmun}‘tigs. the trengthening of g and loan as- ‘lochgltcms. he furnishing of credit to agriculture, the protection of trustee in- stitutions lm'ii1 theusuppun of financial ility of the railways !q‘?llmy’rhe expnnnzx; of credit by the Tve banks. R'?(!E‘;I'x[‘{lf:e organized translation of these credits into actualities for busi- ness and public bodies. “(F) Unceasing effort at sound strengthening of the foundations of culture. -’p(G) The continuation of such pub- lic works in aid to unemployment as does not place a strain on the taxpayer and do not necessitate Government borrowing. “(H) Continuation of national, eom- munity and individual efforts in relief f distress. e “(I) The introduction of the five-day week in Government, which would save the discharge of 100,000 employes and would add 30,000 to the present list. “(J) The ge of the home loan discount bank legislation, which would protect home owners from foreclosure and would furnish millicns of dollars of employment in home improvement without cost to the Treasury. *“(K) Financial aid by means of loans from the Reconstruction Corporation to such States as, due to the long strain, are unable to continue to finance dis- tress relief. “(L) The extension of the authority of the Reconstruction Corporation not only in a particular I called attention last December—that is, loans en sound security to industry where they would sustain and expand employment—but also in view of the further contraction of credit to increase its authority to expand the issue of its own securities up to $3.000,000,000 for the purpose of organized ald to ‘income-producing’ works throughout the Nation, both of public and private character. “Remote Usefulness.” “1. The vice in that segment of the proposals made by your society and others for further expansion of ‘pub- lic works' is that they include public works of remote usefulness; they im- pose unbearable burdens upon the tax- payer; they unbalance the budget and demoralize Government credit. A larger and far more effective relief to un- employment at this stage can be se- cured by increased aid to ‘income- producing works.” “I wish to emphasize this distinction between what for purposes of this dis- cussion we may term ‘income-producing works’ (also referred to as ‘self- liquidating works’) on the one hand and non-productive ‘public works’ on the other. By ‘income-producing works’ I mean such projects of States, counties and other lvisions as Waterworks, toll bridges, toll tunnels, docks and any other such activities which charge for their service and whose earning ca- pacity provides a return upon the in- vestment. “With the return of normal times the bonds of such official bodies based upon such projects can be disposed of to the investing public and thus make the intervention of the Reconstruction Co ation purely an emergency ac- tivity. I include in this class aid to established industry, where it would sustain and increase employment, with the safeguard that loans IiT theea pur- poses should be made on sound se- curity and the proprietors of such in- dustries should provide a portion of the capital. “Non-productive ‘public works’ in the sense of the term here used include public buildings, highways, streets, river and harbor improvement, military and Navy construction, etc., which bring no direct income and comparatively little loyment. “2. I can perhaps make this distinc- tion clear by citing the example of the recent action of the Reconstruction Finance Corporation in the matter of the Pennsylvania Railroad Co. on one B of Feprascotatives Tor ocroasma use of ves for in Sompasy apgied o the Reconsimiction company app n tion for a loan of 845,000,000 to help finance & fund of over $68,000,000 needed to electrify certain of its lines. By %o doing it would employ directly Text of Heover’s Letter Writes Richard S. Parker. of Society of Civil Engineers, Expressing Opposition to Bond Issues For *“Non-Productive’” Public Works. and indirectly for one year micre than 28,000 men, distributed over 20 different | | States. An arrangement “was con- | cluded by which the Reconstruction | Corporation undertook to stand behind | the plan to the extent of $27,000,000, | the railway company finding the bal- ance. This $27,000,000 is to be loaned on sound securities and will be returned, | can be broken by a large issue of Fed- | capital and interest, to the corporation. | to finance public works. “Direct Charge on Taxpayer.” “The Reconstruction Corporation is | acting as agent to make available other- wise timid capital for the Pennsylv: Railroad in providing employment | There is no charge upon the taxpayer. | On the other hand, the proposal of the ‘Hnusr of Representati $132,000.000 for subst for construction of highways. | would be a direct charge on the tax- payer. The total number of men to be | directly employed is estimated at 35,000 and indirectly 20,000 more. In other | words, by this action we would give em- ployment to only 55000 men at the expense by the Government of $132,- | 000,000, which will never be recovered. | “In the one instance we recover the | money advanced through the Recon- struction Corporation, we issue no Gov- | ernment bonds, we have no charge on | the taxpayer. In the other instance we have not only a direct cost to the tax- payer, but also a continuing mainte- nance charge, and, furthermore, the highways in many sections have now been expanded beyond immediate pub- lic need. | “3. These proposals of huge expan- ¢ sion of ‘public works' have a vital re- lation to balancing the Federal budget and to the stabilizing of national credit. | The financing of ‘income - producing | works' by the Reconstruction Corpora- tion is an investment operation, requires no congressional appropriation, does ‘not unbalance the budget, is not a drain upon the Treasury, does not in- volve the direct issue of Government bonds, does not involve added burdens upon the taxpayer either now or in the | future. It is anemergency operation | which will liquidate itself ‘with the re- | ;um of the investor to the money mar- | kets. “The propesal to build non-produc- tive ‘public works' of the category I have described necessitates making in- creased appropriations by the Congress. These appropriations must be financed by immediate increased taxation or by the issuance of Government bonds. | Whatever the method employed, they are inescapably a burden upon the taxpayer. If such a course is adopted |beyond the amounts already provided | in the budget now before Congress for | | the next fiscal year, it will upset all | bossibility of balancing the budget; it will destroy confidence in Government securities and make for the instability | of the Government, which in result will | deprive more people of employment | than will be gained. “Public Works” Expanded. “4. T have for many years advocated | the speeding up of public works in | times of depression as an aid to busi- | | ness and unemployment. That has been done upon a huge scale and is proceed- ing at as great a pace as fiscal stability ‘wm warrant. All branches of govern- ment—Federal, State and municipal— | have greatly expanded their ‘public | works’ and have now reached a stage | where they have anticipated the need for' many such works for a long time to come. Therefore, the new projects | which might be undertaken are of even | more remote usefulness. “From January, 1930, to July 1, 1932, the Federf Government will have ex- | pended $1,500,000,000 on ‘public works." The budget for the next fiscal year carries a further $575,000,000 of such expenditures (compared with about $250,000,000 normal) and includes all the items I have felt are justified by sound engineering and sound finance. “Thus by the end of next year the Federal Government will have expend- ed over $2,000,000,000 on public works, which represents an increase over normal of perhaps $1,200,000,000. Thus we have largely anticipated the future | and have rendered further expansion | beyond our present program of very remote usefulness and certainly not Justified for some time to come, even were there no fiscal difficulties. They represent building of a community be- yond its necessities. We can not thus squander ourselves into prosperity. “5. A still further and overriding reason for not undertaking such pro- grams of further expansions of Federal ‘public works’ is evident if we examine the individual projects which might be undertaken from an engineering and economic point of view. The Federal ‘public Works’ now authorized by law cover works which it was intended to construct over a long term of years and embrace several projects which were not of immediate public usefulness. In any event, the total of such authorized projects still incomplete on the 1st of July will amount to perhaps $1,300,000,- 000. If we deduct from this at once the budgeted program for the next fiscal year—$575,000,000—we leave roughly $725,000,000 of such authorized works which would be open for action. If we examine these projects in detail, we find great deductions must be made from this sum. Take Years for Completion. “Construction of many projects physi cally years for completion, such as naval vessels, buildings, canalization of rivers, etc, and therefore, as an eering necessity, this sum could year uflewflg:ld f Lhemuj cts flv: years. of projects nof already started will ! and technical Ke tion therefore could not em| o | . Produce Incomes Declared ht to the int of | attain the objective fc /hich he hat Abcr during (he Dext | been searching 30 Jong" ™ HOOVER 0PPOSES J0B RELIEF BONDS Mcre Aid for Works That Much Better Plan. (Continued From First Page) suggesting that better times would fol- low a large issue of Government bonds Other Recommendations. Among other things, the President said governmental aid should be ex- tended in this manner: Balance the budget; avoid issuing further Government securities; continue work of the Reconstruction Finance Corporation: expand the credit through the Federal Reserve system: insure translation of these credits into actuali ties; soundly strengthen the founda- tions of agriculture; continue public | works that do not place a strain on the taxpayer; continue national, community and individual efforts to relieve distress. | Mr. Hoover drew a sherp line of ! demarcation between productive enter- | prise, citing the recent Reconstruction Corporation loan to the Pennsylvania Railroad to electrify part of its line, and “non-productive” public work as exem- plified by the House's proposal to loan $132,000,000 to States for road building. ISHERWOOD CALLED WALKER'S AGENT Seabury Reveals 49 Letters Touching on Duties of Missing Witness. By the Assoclated Press. NEW YORK, May 23.—A series of 49 letters purporting to show that from October, 1925, to July, 1931, just & | month before he disappeared, Russell {T. Sherwood, missing witness, trans- acted all of Mayor James J. Walker's business at a New York bank, were introduced as evidence at the legislative city investigation hearing by Samuel Seabury today. As the last public hearing before the mayor himself takes the stand got under way Seabury introduced witnesses and documents in support of his contention that the missing Sherwood, who has been hunted all through the United States and Mexico, was the mayor's business agent. Willlam Ulgright, a bank teller, wag shown a photograph of Sherwcod and was asked if it was not a picture of & man who had frequently made deposits for Walker in the Chatham-Phenix National Bank. He was not certain, he said. Letters Put in Record. The bank mentioned in connectior with the 49 letters was the Federation Bank and Trust Co., and J. C. Jacoby, jr., formerly treasurer, identified them. They were not read aloud, but were introduced into the record, Seabury re- marking: “They show that Sherwood deposited money in the mayor's account and transacted all his business with the bank from October 23, 1925, up to and including July 8, 1931." An employe of znother bank testified that in May, 1927, the mayor borrowed $10,000, putting up 5714 shares of Silver King Products Corporation stock as collateral, and Seabury read to the committee a letter purporting to be from Walker instructing a broker to turn the stock over to Sherwood so that he might take it to the bank Armed with the accounts, Seabury prepared a new onslaught on Walker as the investigation swept to a climax. Wednesday Walker takes the stand to defend himself. It is expected to be one of the memorable tilts of New York’'s history. As Seabury and his men worked furiously preparing their case, there came a disclosure that a six-week trip Mayor Walker and party took to Europe in 1927 cost $23,000 or more. Of this $13,000 was accounted for at public hearings last week. Seabury troduced evidence to show that a pro- moter of the Equitable Coach Co., for which the mayor signed a_ franchise, purchased $13,000 bank credit for the trip. The mayor's friends contend, however, the money came from members of the party, not from the bus promoter. Yesterday Dr. Herbert Adams Gib- bons, historian, made a statement which was_interpreted by newspapers as in- dicating the $13,000 was only for in- cidental expenses. Dr. Gibbons said the late Rodman Wanamaker, for whom he acted, paid the mayor’s traveling and hotel expenses through England, Germany and France, amounting to $10.000 or more. year. A portion of these authorized ects are outside Continental United es end do not contribute to the | tion cf our probiem. A portion are | localities where there is little un-| employment. A portion are in the Dis- trict of Columbia, where we already have a large increase in prograr the next fiscal year and tional work could be justified. A portion are cf remote utility and are not justi- | such as extension of agricultural eage at the present time. | “Deducting all these cases from the | actual list of authorized Federal public works, it will be found that there is| less than $100,000000 (and this is| doubtful) which could be expended dur- ing the next fiscal year beyond the pro- gram in the budget. That means the | employment of, say, less than 40,000 men. Thus, the whole of these grandiose | ccntentions of o pansion of ! Federal ‘public works' fall absolutely to | the ground for these rcasons if there ‘were no other. “If it is contemplated that we legis- late more authorizations of new and | unconsidered projects by Congress, we shall find curselves confronted by a log- rolling process which will include dredging of mud cree building of un- warranted post offices, unprofitable irri- gation projects (duplicate highways and a score of other unjustifiable activities. “Transitory Emplo¥ment.” “6. There is still another phase of this matter to which I would like to call attention. Employment in_‘public works' is largely transitory. It does not have a follow-up of continued em- ployment as is the case with ‘income- producing works. But of even more importance than this, the program I have proposed gives people employment T | in alF parts of the country in their normal jobs under normal conditions at the normal place of abode, tends to re-establish normal processes in busi- ness and industry and will do so on a much larger scale than the projects proposed in the so-called ‘public works’ Pprogram. “7.To sum up. It is generally agreed that the balancing of the Federal budget and unimpaired national credit is indispensable to the restoration of confidence and to the very start of economic recovery. The administra- tion and Congress have pledged them- selves to this end. A ‘public works' program, such as is suggested by your committee and by others, through the issuance of Federal bonds, creates at once an enormous further deficit. “What is needed is the return of confidence and & capital market through which credit will flow in the thousand rills with its result of em- ployment and increased prices. That confidence will be only destroyed by action in these directions. These chan- nels will continue clogged by fears if we continue attempts to issue large amounts of Government bonds for pur- poses of non-productive works. “Such a program as these huge Fed- eral loans for ‘public works’ is a fearful price to pay in putting a few thousand men temporarily at work and dismiss- ing many more thousands of others from their present employment. . There is vivid proof of this since these pro- posals of public works financed by Gov- ernment bonds were seriously advanced a few days ago. Since then United States Government bonds have shown marked weakness on the mere threat, And it is followed at once by a cur- tailment of the ability of States, municipalities and industry to issue bonds and thus a curtailment of activi- ties which translate themselves into de- creased employment. “It will serve no good purpose and will fool no one to try to cover ap- pearances by resorting to a so-called ‘extraordinary budget’ That device is well known. It brought the govern- ments of certain foreign countries to the brink of financial disaster. It means a breach of faith to holders of all Government securities, an unsound financial program and a severe blow to returning confidence and further contraction of economic activities in the country. “What you want and what I want is to restore normal employment. I am confident that if the program I have rropueu to the Congress is expeditious- ly completed and we have the co-opera- tion of the whole community, we will “It was Mr. Wanamaker's own idea | that the mayor should take the trip abroad in order to see housing condi- tions, parks and so forth,” said Dr. Gibbons. INCHCAPE, SHIPPING MAGNATE, IS DEAD Peer's Daughter Lost Life in At- lantic Flight Attempt in 1928. By the Associated Press LONDON, May 23.—Lord Inchcape, world-famous shipping magnate, died today in his yacht off Monte Carlo, said a message to his home here. He was 79 years old. James Lyle Mackey, first ear] of Inch- | cape, was a son of poor parents, who carved out for himself a romantic career as a shipping megnate and leader of finance and industry. His first experience with the sea was at the age of 8 when he was taken for a voyage from Kirkaldy, Scotland, to Archangel, Russian Finland, and back in a barque of 300 tons. Eventually he became chairman of the famous Peninsular and Orient line of steam- ships. At one time he was a member of the council of India. In was born in Forfarshire, Scotland, on Sepfember 11, 1852. In 1928 his daughter, Hon. Elsie Mackay perished in attempting to cross the Atlantic in an airplane with Capt. Walter G. R. Hinchliffe. No trace of them was ever discovered. Soon afterward Winston Churchill, then chancellor of the Exchequer, an- nounced that Lord and Lady Inchcape wished to place in trust with the British nation the sum of $2,500,000, repre- senting their daughter’s estate and that it should ultimately be applied to the reduction of the national debt. Lord Inchcape went to Bombay, India, at the age of 22 without influ- ence or monetary resources. Before he was 40 years old he was one of the leading men in India. BONUS SEEKERS QUIET AS POLICE GUARD CAPITOL (Continued From First Page.) Capitol to keep the veterans from parading unless they first obtained the necessary permit. GROUP “CAMPS” AT ST LOUIS. Arrest of Veterans Seeking Freight Train Ride to D. C. Asked. EAST ST. LOUIS, I'l, May 23 (#).— The 342 unemployed World War vet- erans, mostly from Oregon, who still hope to ride a Baltimore & Ohio freight train to Washington to urge pending bonus legislation, moved their camp to- day and walted developments. Also waiting developments were Bal- timore & Ohio officials, the East St. Louis police department and the sheriff of 8t. Clair County. has demanded the arrest of all the veterans for trespass and interfering with oper- ation of a freight train after they made futile efforts yesterday to hop a train. The five policemen detailed to the camp declined to attempt the arrests unless their chief, who was reported to be out of town, ordered the action. s e s had, ot 'y _expect ve about t empty box cars attached to an ?ufl:- bound train yesterday, so they could ride in comfort. When the B. & O. appeared unenthusiast'c. the veterans scrambled aboard a freight train short- ly after 3{.:1:. just as it was ready to leave. After a long wait the engine was sent back to the roundhouse. At 11 p.m. the veterans scrambled off again and some time later the train dee