Evening Star Newspaper, July 9, 1932, Page 3

- [ AUSANNE INITIALS | REPARATIONS PACT Conference Declared Official- ly Cosed After Signing of Accord. (Continued From First Page.) problem in the Danubian states which are embarrassed by a huge grain sur- plus, and (5) creaticn of the machinery for a world economic conference under the auspices of the League of Nations. here was nothing about a “gentle- men’s agreement” linking reparations with war debts, ncr was there any ref- | erence to the “war guilt” clause of the Versailles treaty. Shortly after the agreement was an- nounced a statement came from Wash- ington saying the United States was now ready to consider any proposals its Eurcpean debtors might care to make for the reconsideraticn of war debts settlements. The announcement created a pre found impression on the European del gates and was greeted with expressions of joy. Dino Grandi, Italian foreign { minister, hailed it as the “best news since the opening of the conference.” | | Two Committees Created. Two committees were created before { the conference adjourned. The first | committee was to deal with non-Ger- man reparations. M. Theunis of Bel- glum was named its chairman. Bonnett of France was elected chair-| man of the second committee, which is to deal with Danubian problems. Sir John Simon and M. Germain- Martin read statements suspending the intra-European war debts until the new agreement is ratified by national parliaments. This statement was made at the behest of the Italian delega- tion. “Great transfers of post-war sums,” Prime Minister MacDonald said in his closing address, “have not been a punishment to one nation, but a bur- den upon all. “The most self-sustained country in the world—the United States—has| been hit as hard as we. “This begins a new chapter. We have closed one book and opened a new one. Agreement has not been eacy. There are too many old memories which are not easy to uplift. Lausanne must put_into effect a universal framework. Europe cannot live alone. The arrangements signed here must have a response elsewhere.” He asked the premiers of the vari- ous countries to go forward during 1932 and 1933 with great courage. Referring to the Far East he asked for “a straight ame of candor.” . “Qur friends in the Far East,” he said, | “must show the homage to the League of Nations as other countries do. § After the conference was officially closed the delegates drank a toast to world prosperity. ‘The lzun\")eem,im'l does not go into effect until it is ratified by the Parliaments of the initiating countries which, by an unwritten agreement, Wwill not take place until after the United States re- considers the question of scaling down the war debts due her from Europe. Will Ask U. S. to Parley. ‘The next step was expected to be a yequest from these powers to the United States to join in a parley to revise war debts. The seal affixed to the agreement as the final act of the ceremony was more than 400 years old. It was originally used on the treaty of fraternity in 1525 between Freibourg and Bern on the one hand and Lausanne on the other. In the meantime Chancellor von Papen was swamped with telegrams oi' congratulation from Germany. “Bravo!” said one signed by Dr. Hjalmar Schacht, former head of the Reichsbank and one of the most prominent German expo- nents of cancellation of the post-war | obligations. Several of them came from war vet- erans, who hailed “the end of repara- tions.” EUROPE LOOKS TO U. S. Question of Revising War Debts Now Paramount. LONDON, July 9 (#).—The mndon( press today welcomed the reparations seitlement at Lausanne as a “great achievement,” a “happy omen” and “the world's best news since the war,”} but added that it was only the first step toward a settlement of the world economic trouble: Eyes would urned across the At- lantic, the papers said, to see what the United States would do on the question of revising the war debts. Comparing Europe to & patient from whose system poison had been ex- tracted, the T'mes said the patient was | still weak and restoratives and other remedies were needed. These, it added, | could not be supplied by Europe alone. | The Morning Post, referring to Wash- ington's expression of an American readiness to consider suggestions on the debts, remarked that the British atti-| tude is that all intergovernmental pay- ments are obstacles to the world re- covery. . DEMANDE REICH EQUITY. Von Papen Asks Llearing of Political| Questions. } ly 9 (¥ —Equality for| was demanded by Chancellor nz Von Papen last night in an ad- roadcast by radio from Lausanne | the announcement of Lhe; ne v waived its demand he war guilt clauses aty in the com- French on reparations, aid in his address last the Lausanne agreement would Ve a permanent effect only if “1t led | to clearing of the questions affecting the | al Tights of the German people.” In the name of Germany,” he said. “I rise anew the people’s demand that be treated on a basis of equality| ) rights and dutie of paper. UITABLE _FOR a weddings and 10c up per day each: new chaire {ling_chairs for rent or sal STORAGE CO.. 418 1 1844 R RENT. FO S E PARTIES banquet ets ale otn YORK ADELPHIA N, points Noith ALLIED VAN LINES. Wi NT slso pack and ship LIFT VANS anywhere 5 TRANSFER & STORAGE CO., g N.W._Phone North 3342-3343. Ce PATENT LAW Call'ELLETT, Ine. ;'Dcn't'Hi\é‘cm;(;i;‘ Light der a bushel” Tell the world about yourselt ‘and your business through the 1 5"C) 8" (National Cavital Press) ng. The National Capital Press ~FLA AVE.3rdand NN.E ____Linc. 6060 CEMENT WORK 'WALKS, COPING AND LEAKING CELLARS. WM. MORLEY, 3417 MORRISON ST. . EMERSON 2020. ohas been saved from the scrap heap By 0T thorough knowledse of repairs tear off -th > st sign_of fll‘cl;’ e ey. 13 N Czunult us—save mon! S Roofing 933 V St. N.W. Company North 4423 .| South Africa and Jugoslavia. | government of the Republic of P Text of Lausanne Pact By the Associated Press. The text of the agreements reached here yesterday, ending the reparations problem and setting Germany's final payment at $714,000,000, follows: The Final Acts of the Lausanne Conference. The Lausanne conference was con- voked on invitation of the governments of Germany, Belgium, France, the United Kingdom of Great Britain and Northern Ireland, Italy and Japan in accordance the announcement made at Geneva on February 13, 1932, on behalf of those governments. The object of the conference was as fol- lows: To agree to a lasting settle- ment of the questions raised in the re- port of the Basel experts and on meas- ures necessary to solve the other eco-| nomic and financial difficulties which | are responsible for and may prolong | the present world crisis. The conference was opened at Lau- sanne, June 16, by his excellency M. Giuseppe Motta, president of the Swiss Confederation; M. Jules Dufour, presi-| dent of the government of the Canton | of Vaud, and M. Daillard, mayor of | Lausanne, also being present. | In addition to inviting the govern- ments mentioned above, the govern- ments of the following countries were represented: ‘The Commonwealth of Australia, Canada, Czechoslovekia, New Zealand, Poland, Portugal, Union of overnments of Bulgaria, Greece, and Rumania were sub- | sequently represented at the conference. | The conference (‘\('(‘tsdfins its %esci—i nt the Right Hon. J. Ramsay Mac- ii)e;lnald. prime minister of the United | Kingdom; as the secretary general, Sir | Maurice Hankey, G. C. B, G. C. M. G. On June 16, 1932, the Tepresentatives of the governments of the United King- dom and Northern Ireland, France, Italy, Belgium ar}d Japan signed the lowing declaration: mflpeep‘fv impressed with the increas- ing gravity of the economic and finan- cial perils which overhang the world and with the urgency of the problems which the Lausanpe conference has had to consider; firmly convinced that these problems require a final and definite solution directed to the improvement of European conditions, and that this Solution must be pursued henceforward without delay or interruption with a view to its realization in the framework of a general settlement; noting that certain payments of reparations and | war debts will fall due as from July 1.i next, e are of the opinion, in order to| permit the work of the conference to proceed undisturbed, that, without prej- udice to the solution which may ulti- mately be reached, the execution of the payment due to the powers participating i the conference in respect of repara- tions and war debts should be reserved during the period of the conference, which the undersigned governments contend should complete its work in the shortest possible time. ) “It is understood that the service Dfi market loans will not be affected by | these decisions. | “The undersigned governments de- | clare that they. for their own part, are | prepared to act on this understanding, and they invite the other creditor gov- ernments taking part in the conference | to adopt the same course.” | In accordance with the invitation | contained in the last paragraph of the | said declaration, the governments of the Commonwealth of Australia, Canada, Greece, India, New Zealand, Poland, Portugal, Rumania, Czechoslovakia, the Union of South Africa, Jugoslavia, sub- sequently associated themselves there- with, On the occasion of this declaration certain governments addressed to thei president of the conference letters | which have been placed in the archives. | As a result of meetings held from June 16 to July 8. 1932, the following | instruments were drawn up: | 1. Agreement with Germany. | 2. Transitional measures relating to | Germany. 3. Resolution relating to non-German | reparations. | 4. Resolution relating to Central and Eastern Europe. | 5. Resolution relating to the World | Economic and PFinancial Conference. The present act, of which the Eng- lish and French texts sre both authen- tic, will remain deposited in the ar-| chives of the government of the French | Republic, which will deliver a certified copy to each of the governments who have taken part in the conference at Lausanne, and also the other govern-| ments who took part in The Hague conference of 1929-30. Done at Lausanne in a single copy. ANNEX L Agreement With Germany. The government of his majesty the King of the Belgians, the government of the United Kingdom of Great Brit- ain and Northern Ireland, the govern- | ment of Canada, the government®of | New Zealand, the government of the Union of South Africa, the government of India, the government of the French Republic, the government of his majesty the King of Italy, the government of his majesty the Emperor of Japan, the | oland, | the government of the Republic of Por- | tugal, the government of his majesty | the King of Rumania, the Czechoslo- | vakian Republic and the government of | his majesty the King of Jugoslavia, hereinafter described as the creditor | governments,_and the government of the German Reich, Recognizing that the legal validity of the agreement signed at The Hague an | January 20, 1932, is not in question, but concerned by the economic difi- culties resulting from the present crisis, and being desirous to make, so far as| they are concerned, the necessary ef-| forts to insure the confidence which is indispensable to the development of normal econcmic and financial rela- | tions between the nations; | The undersigned, duly authorized to that effect by their respective govern- ments, have agreed upon the following: Declaration. The powers signatory of the present agreement have assembled at Lausanne | to deal with one of the problems re- sulting from the war, with the firm in- tention of helping to create a new order ‘The g Hungary, India | |.permitting the establishment and de- velopment of confidence between the nations in a mutual spirit of reconcilia- tion, collaboration and justice. They do not claim that the accom- | plishment at Lausanne, which will com- | pletely put an end to reparations, can | alone assure that peace which all the | nations desire. but they hope that an | achievement of such significance and 5o | arduously attained will be understood | and appreciated by all the specific ele- | ments in Europe and the world, and | that it will be followed by fresh achieve- | ments. | These further successes will be more ress Building. _* | readily won if the nations will rally to | i1y this new effort in the cause of real| peace, which can only be complete if | it is applied both in economic and in | the political sphere, and reject all pos- sibility of resort to arms or to violence. ‘The signatory powers will make every effort to resoive the problems which | exist at the present moment or may arise subsequently in the spirit which has inspired the present agreement. Article 1. ‘The German government shall de- liver to the Bank for International Settlements German government 5 per cent redeemable bonds, to the amount of three milliard reichsmarks gold, of the present standard of weight and fineness, to be negotiated under the following arrangements: (1) The Bank for International Set- tlements shall hold the bonds as trustee: s, (2) The bonds shall not be negotiated | by the B. I. S. before the of three Terms of Agreements Reached by Conferees End Reparations Problems and Settle Germany’s Final Payment at $712,500,000. LAUSANNE, Switzerland, July 9.—/| {for a period of | deemed to diminish or vary, the right | bank of its pro | “new plan” is no longer in effect. STAR, WASHINGTON, D. C., SATURDAY, JULY 9, 1932 eement. Fifteen years after the date of the said signature, bonds which the | B. I. 8. have not been able to negotiate | shall be canceled. (3) After the above period of three years the B. 1. S. shall negotiate the bonds by means of public issues on the market as and when possible, in such amounts as it thinks fit, provided that no issue shall be made at a rate below 90 per cent. The German gov- ernment shall have the right at any time to redeem at par, in whole or in part, the bonds not yet issued by the B. 1. 8. In determining the terms of issue of the bonds, the B. I S. shall take into accoynt the desirability of giv- ing the German government the right to redeem the bonds after a reasonable period. (4) The bonds shall carry interest at 5 per cent and sinking fund at 1 per cent as from the date on which they are negotiated. They shall be free- of all German taxes, present and future, (5) The proceeds of the bonds, as and when issued, shall be placed to a special account, the allocation of which shall be settled by a further agreement in due course between the governments, other than Germany, signatory to the present agreement (6) If any foreign loan is issued by the German government, or Wwith its guaranty, at any time aiter the coming into force of the present agresment, the German government shall offer to apply up to the equivalent of one-third of the net cash proceeds of the loan raised to the purchase of bonds held by the B. 1. S. The purchase price | shall be such that the net yield of the bonds so purchased would be the same as the net yield of the loan so raised This paragraph does not refer to loans | not more than 12 | | months. (7) If, after the expiry of five years from the signature of the present agreement, the B. L S. considers that the credit of the German government is restored, but the quotation of its loans remains none the less below the minimum price of issue fixed under paragraph (3) above, the minimum price may be varied by a decision of the board of the B. I. S., which decision shall require a two-thirds majority. Further, at the request of the German government the rate of interest may be reduced below 5 per cent if issue has been made at par. (8) The B. 1. S. shall have power to settle all questions as to the currency and denomination of bond issues and also all questions as to charges and costs of issue, which it shall have the right to deduct from the proceeds of the issue. In conclusion, in questions relating to the issue of bonds the board ( of the B. I S. shall take the advice of the president of the Reichsbank, but decisions may be made by a majority vote. (9) The text of the bonds will be settled by agreement between the Ger- man government and the B. I S. Article 2. On its coming into force the present agreement will terminate and be sub- stituted for the reparation regime pro- vided for in the agreement with Ge many signed at The Hague on January 20, 1930, and the agreements signed in London on August 10, 1930, and at Ber- lin on June 6, 1932. The obligations resulting from the present agreement will completely replace the former ob- ligations of Germany comprised in the | annuities of the “new plag.” Article 3. Consequently articles 1, 2, 4, 5, 7, 8 and 9, and annexes 1, 3, 5 and 5A, 6, 6A, 7, 10 and 10A of the said agree- ment with Germany are definitely abrogated. Article 4. protocol signed at London on August 11, 1931, and the protocol sup- plementary thereof signed at Berlin | on June 6, 1932, are abrogated. Con-| sequently the provisional receipts hand- ed to the Bank for International Set- tlements by the German Railway Co. under the said protocol of August 11, 1931, will be returned to it. Article 5. The certificate of the UGerman gov- ernment and the certificate of the Ger- man Railway Co. referred to in article 8, annexes 3 and 4, of The Hague agree- ment shall with the coupons attached be returned to the German govern- ment and the German Railway Co., re- spectively. The Article 6. Nothing in the present agreement alters or affects article 3 (liquidation of the past), article 6 (so far as con- cerns the corporate existence of the Bank for International Settlements) or article 10 (immunities of the Bank for International Settlements) of The Hague agreement. Article (A) The signatory governments de- clare that nothing in the present agree- ment diminishes, varies, or shall be of the bondholders of the German ex- ternal loan of 1924 or the German government international 5% per cent loan of 1930 (B) The nece: machinery re y adaptation of the to the menner in which the obli of the German government, with respect to the Ger- man external loan of 1924, and with respect to the German government in- ternational 5! per cent loan of 1930, will be discharged, will be subject to mutual arrangement, on the one hand, and the Bank for International Set- tlements, the i ent of the trustees of the German external loan of 1924, and the trustee of the German govern- ment 5% per cent loan of 1930, on the other hand. Article 8. greement will, on its be notified by the French Republic to national Settlements with a view to the application by the sions. The said gov- ernment also will notify the bank for the purpose of those states that the The present coming into government of the the Bank for Inte Article 9. Any disp hether between the governments signatories to the present agreement, or tween one or more of those governments and the Bank for International Settlements, as to the in- terpretation or application of this agree- ment, shall be referred to the arbitra- tion tribunal set up under article 15 of The Hague agreement with Germany. The relative provisions of that article and of annex 12 of the said agreement will for this purpose be applicable. Article 10. The present agreement, of which the English and French texts are both au- thentic, shall be ratified and the ratifi- cations shall be deposited at Paris. The governments whose seat is outside Europe will be entitled merely to _po- the French government thrfigh their diplomatic representatives in Paris that their ratification has been given. In that case they may transmit the terms of ratification as soon as possible. As s500n as the present agreement has been ratified by the governments of Belgium, Prance, Germany, Great Brit- ain, Northern Ireland, Italy and Japan, it shall come into force between those governments whose ratification has been deposited or notified at that date. It shall come into force in respeet of other signatory governments on the date of ratification or deposit of ratifi- cation. The French government will transmit to all the signatory govern- ments and to the Bank for Interna- tional Settlements a certified copy of the process verbal of the deposit and of each ratification and a of each ratification, TN Article 11. ‘The present agreement may years from the signature #f the present ed‘zmytimeupwtmumn?:gzl; it first comes into force, by any govern- | ments signatory to the agreement with Germany signed at The Hague on Jan- uary 10, 1930. After that date, any of the said governments may accede to the present agreement by means of a notifi- cation addressed to the government of the French republic, which will trans- mit to the other contracting govern- ments and to the Bank for Interna- tional Settlements a certified copy of such notification. In that case the agreements will come into force for the | government concerned on the date of such accession. Done at Lausanne, 9th day of July, 1932, in a single copy, which will re- main deposited in the archives of the government of the French republic, which will transmit certified copies to each of the signatory governments. ANNEX IL Transitional Measures Relating to Ger- many. The newly authorized representatives of the governments’ signatories of the agreement concluded this day with Ger- many have agreed as follows: Article 1. As from today's date, the effects of the declaration of June 16, 1932, will be prolcnged as regards the payments due by Germany under The Hague agree- ment of January 20, 1930, the London protocol of August 11, 1931, and the Berlin protocol of June 6, 1932. This prolongation will terminate on the com- ing into force of the agreement with Germany signed today at Lausanne, or, failing this, on one of the governments of the following countr! Germany, Belgium, the United Kingaom, France, Ttaly and Japan, notifying the govern- ments concerned that it has decided not to ratify. Article 2. Negotiations will be entered into with- out delay between the German govern- ment and the Bank for International Settlements in order that the arrange- ment contemplated in article 7 of the agreement with Germany signed today may be prepared before its coming into force. Article 3. As regards the execution cf payments and deliveries in kind of contracts and work in course of execution, a commit- tee consisting of representatives of the German government and the govern- ments concerned shall be appointed to draw up such proposals as may be de- sirable in regard to such contracts and works. ANNEX @I Non-German Reparations. The undersigned governments, ani- mated by the same spirit as inspired the declaration signed on the 16th of June by the fwe inviting powers, are agreed and recommend to the confer- ence that a committee consisting of cne representative of each of the govern- ments concerned shall be set up to consider the group of questions known as “non-German reparations” and ccg- nate questions, viewing them within the framework of the general settle- ment. ANNEX 1V. Resolution Relating to Central Eastern Europe. In or¥ler to attain the object of the financial and economic reconstructicn of Central and Eastern Europe, the con- ference decides to appoint a committee which will be entrusted with the duty of submitting to the Organizing Committee of the European Union, at its next ses- sion, prcblems as to the measures re- quired for the restoration of the coun- tries of Central and Eastern Europe, and in particular: (a) Measures to overcome the pres- ent difficulties of those countries and to make possible the progressive sup- pression, subject to the necessary safe- guards, of the existing system of ex- change control. We are of opinion that, in order to permit the work of the said committee to proceed undisturbed without preju- dice to any question of principle, or to the solution which may ultimately be reached, the execution of the above mentioned question thould be reserved until the 15th of December next, fail- ing a settlement before that date. Signed at Lausanne the 7th of July, 1932, for the governments of (here fol- low the signatures of the six inviting powers). (b) Measure to revive the activity of trace both among those countries them- selves and between them and other states, and to overcome the difficulties caused to the agricultural countries of Central and Eastern Europe by the low price of cereals, it being understood that the rights of such countries shall remain reserved. Accordingly, the conference invites the governments of Austria, Belgium, Bulgaria, Czechoslovakia, France, Ger- many, the United Kingdom, Greece, Hungary, Italy, Poland, Rumania, Switzevland and Jugoslavia each to ap- point no more than two representatives on the committee referred to above. ANNEX V. Resolution Relating to a World Eco- nomic Financial Conference. The conference, apart from the ques- tions alrealdy dealt with in this reso- lution, has further undertaken to de- cide upon “the measures necessary to solve the other economic and financial difficulties which are responsible for or may prolong the present world crisis.” The main questions of this order which demand examination are as fol- lows: (A) Financial questions—Monetary and credit policy, exchange difficulties, the level of prices, the movement of capital. (B) The economic question—Improved conditions of production and inter- change, with particular attenticn to tariff policy, prohibition and restriction of importation and exportation quotas and other barrjers of trade producer and agreements. The conference em- phasizes in particular the necessity of restcring the currencies on a healthy basis and of thereby making it possible to abolish measures of exchange control and to remove transfer difficulties. Pur ther, the conference is impressed with the vital need of facilitating the revival of international trade. To achieve the above purposes: The conference decides to invite the League of Nations to convoke at a con- venient date and at a place to be fixed (not necessarily Geneva) a conference on monetary and eccnomie, questions. The conference decides to entrust the preliminary examination of these com- plex questions, which are closely inter- dependent, to an authoritative comm.‘t- tee of experts. The conference, there- fore invites the governments of Belgium, and France, Germany, Italy, Japan and the | United’ Kingdom' each to appoint as members of the committee two experts, one qualified to deal with economic questions, the other qualified to deal With financial questions. The commit- tee would divide itself into two subcom- mittees according to the two branches of the subject. The two subcommittees would naturally have discretion to meet in joint session whenever necessary, with the object of insuring the neces- sary co-ordination in their labors. The conference further resolves to in- vite the Government of the United States of America to be represented on the committee on the same basis as the governments of the states mentioned above. ;s Finally, the conference invites the Council of the League of Nations to pominate three persons qualified by their financial competence, and three persons qualified by their economic competence. It would be desirable that these persons should be nationals of countries other than those mentioned phove. They might seek assistance from the directors of the economic and finan- cial sections of the secretariat of the League. 'l‘%: conference similarly seeks the collaboration of the Bank for Interna- tional Settlements and decides to invite the latter to nominate two persons to participate in the work of the subcom- mittee on financial questions. ———e Bakers Oust Boys for Men. | debtedness,” | AUSANNE ACCORD HELDBLOWTOU.S {Agreement Comes With Crushing Effect, Rainey Tells House. The United States is ready to con- sider separate proposals for & reduc- tion of the $11,000,000,000 owed by 15 nations on loans during and after | the World War. | The State Department made this an | nouncement yesterday after other Euro- pean nations agreed at Lausanne to reduce Germany's reparations to $750,- 000,000. The United States has not promised to revise or cancel debts. The Govern- ment has. however, stated repeatedly it would grant a rehearing to Euro- pean debtors individually after they had agreed among themselves to settle reparations. The United States has insisted it had no interest in reparations, as it refused to take ~ny from Germany. Any change in the amount of war- debt payments would have to be ap- proved by Congress, which is on record against further reduction cr cancella- tion. Both House and Senate took this position in approving the Hoower one- year moratorium on intergove:@nental debts. Rainey Sees “Crushing Blow.” Meanwhile, cn Capitol Hill, Repre- sentative Rainey, the Democratic lead- er, told the House the Lausanne agree- ment “comes with crushing effect upon this country.” “Last June when President Hoover agreed to a year's moratorium, he ccn- celed for one year a $10,000,000,000 in- Rainey said, “When the President did that he can- celed the $10,000,000,000 they owe us. to pay this $10,000,000,000 through the years. “It already is admitted that the tax bill fhils to balance the budget by $150,- 000,000. We counted as cash the $269,- 000,000 owed us this year. “Therefore, it means that without further income losses there will be a deficit this year of $419,000,000.” Representative Stafford, Republican, of Wisconsin said “the two great coun- tries that negotiated the agreement are to be congratulated.” “They are making it possible for Ger- many to recover industrially,” he added. Stafford said “these foreign govern- ments are not shysters; they are going to pay their debts.” It remains to be seen how great a cut European powers will ask the United States to make Th war obligations. Some economists predict American debtors will suggest a reduction of 90 per cent, which 15 approximately the slash just made in German reparations. U. S. Would Get Billion. On this basis the United States would be offered slightly more than a billion dollars. Great Britain, France and Italy owe approximately 90 per cent of the war debts due this Government. the remain- der being obligations of Belgium, Greece, Austria and other Central European and Baltic countries. In its previous war debts negotia- tions the United States always has | dealt separately with each country and has made terms based on the economic conditions in the country, taking into full consideration the ability to pay. This plan again will be followed. The impression prevailed in oficial circles that extended preliminary ne- gotiations would have to take place before any concrete proposals are sub- mitted and that there is little likelihood of settlements until a short time before December 15, when the next important payments to the United States fall due: Senator Johnson, Republican, of Cali fornia, predicted the reparations agree- ment would be followed after the elec- tion in this country with renewed de- mands for war debt cancellation. ‘oThere will probably he a deep and significant silence by the administration until after the elections,” Johnson said off the floor, “but then those who be- lieve America should receive its due must be on guard.” Chairman Reed of the Senate Mili- tary Affairs Committee said the action at Lausanne had not changed his atti- tude “with regard to cancellation of war debts” and predicted that Con- gress would continue to oppose it. Cites Moratorium. Johnson said this country has con- tinuously maintained that reparations and debts were wholly distinct and un- related, and the administration had insisted upon this, “though its acts might be otherwise construed.” “1 sald a year ago when the mora- torium was sprung upon a surprised and unsuspecting Congress that it was the beginning of cancellation,” John- son's statement said. “We'll hear much from our inter- nationalists in the future—probably after election—about the fairmess now of cancellation of what is owed the United States. “It means that the United States must pay the ultimate cost of the Great ‘War, just as the moratorium has meant, as events have demonstrated, that the overburdened American people must pay in heavy taxes what European debt- ors of ours should pay. “Congress must be reckoned with in cancellation, but having so easily fooled Congress once with the moratorium, it is probably expected the same doubtful procedure may again be effective.” Chairman Borah of the Senate For- eign Relations. Committee withheld comment. Opposition to revision or cancellation of the debts was expressed by Senator Vandenberg (Republican, of Michigan), but he said the settlement was a *“‘very splendid milestone in the post-war journey back to economic recove: GUILD TO MEET Services to Be Held on Catholic University Campus. Mrs. Agnes Stewart and Miss Rear- don will be the speakers at the Sunday afternoon meeting of the Catholic Evi- dence Guild tomorrow. Mrs. Stewart will discuss “The Catholic View of Mar- riage” and Miss Reardon will speak on “The Marks of the Church.” The meet- ing will be held on the campus of the Catholic University near the Harewood entrance to the grounds, and the public is invited. i It is the purpose of the guild, a body of Catholic lay people organized for the dissemination of the teachings of the church, later to transfer these open- air meetings to the street corners and puiilic p;lrks of the city, where the gen- eral public may hear discussions of Catholic doctrine. % PRINCESS li:ARAGOi SUED Divorce Action Recalls Romance of 1915 and Duel Challenge. PHILADELPHIA, July 9 (#).—Princ- ess Ludovicl Bignatelll @Atagon. former Ruth Morgan Waters of Phila- delphia, central figure of a tempestuous romance here 1915 and the alleged Tt for Givoree I N Poanceh or divorce in s Prance, it SYDNEY, Australia (P).—Because so | the laf many men are out of work, master bakers of New South Wales have agreed to discharge all boys employed todlll"m*fldl""mlo‘-" adults. ¥ Our taxpayers are going to be ccmpelled | IBAKER ACCUSED OF INTIMIDATION Judge in Steel Merger Case Not Worthy of Respect. . By the Associated Press. Attorney Says He Charged| CLEVELAND, July 9.—An inference arose from the now canceled merger of | the Bethlehem Steel Corpo: Crawford. | attorneys who blocked the merger and | their fees. in a statement by Baker befcre Scott | town was “not entitled to respect.” It Testraining the merger. Receml% the case, held the counsel did not have | a valid cause of acticn. | Reads Baker Statement. As he concluded his argument Craw- | ford read a page which he said had been taken from the record in the hear- ing before the referee and in which | Baker was quoted as saying: “It was a very grave misfortune that this case was tried before Judge Jen- kins. In the first piace, he was a local judge, not unsusceptible to local feel- | ing. He had had almost no experience | with affafrs. He was lifted suddenly from a perfectly honorable occupation as a mill worker to a judgeship in the court of common pleas. “Being of & speculative, and perhaps discontented frame of mind, he had looked up at his fellowmen from his anvil with envy and suspicion, and when he came to be a judge of the | Court of Common pleas he looked down on them from his elevation with con- tempt, and it was a part of the mis- fortune of the judge that he had not | had contact with men of affairs and | was unaccustomed to the way large | undertakings of this kind are managed. | “If the situation had remained as it was, T would not have referred to it. | But later events In Youngstown in an- | other connection demonstrated that | that unfortunate judge had the frail- | ities of Lord Bacon without his talents. | Holds Corruption Charged. “So far ss I am concerned he passes out of the picture with the feeling on | my part that we had that misfortune that rarely happens in our profession of appearing before a judge whose mind and conscience are not entitled to our respect.” Attorney Crawford commented, after reading the above statement, “Now, that was a solemn charge that he was | a corrupt judge, because Lord Bacon | was stripped of the robes of his office. That was made for & purpose. Its pur- pose was to intimidate a weak-kneed master, and it worked. There was nothing in the record to justify any such statement, and it is going to be a sad day for democratic government, if honorable, upright judges, having due regard for their oath of office, are to be subjected to attacks on their character like that.” Arguments before the Court of Ap- peals were concluded late today, and it was announced that the court will take the case up for consideration at Youngstown Monday. . Some paintings of the extinct dodo, made by Dutch artists who actually saw it, give us a very fair idea of this curfous bird. Also— available R _CO. i TRIANGLE MOTO! New York Ave. & N. Cap. 8 HILL & TIBBITTS, 1114 Vermont Ave. N. W. LOGAN MOTOR CO., 1810 E St. N. W. MOTOR CO., 1781 Florida Ave. N. W. STEUART MOTOR CO. Gth & New York Ave. N. V TRADE ! | made yesterday by Attorney Harry J.|Dysart, gave notice of appeal. who now ask that the company pay an expert witness, | fendant “was old enough to raise a The intimidation, Crawford said, lay | beard.” | All Body Types with improved new 4-cylinder engine Guilty of Shaving, | Man Fined $25 for Defying Town Law 'His Beard Offends Lad Friend, He Claims ‘ in Defense. ‘ By the Associated Press. | | CENTRALIA, Wash,, July 97P‘rankv‘ | McDowell, a business man, was fined $25 and his attorney $10 in Police Court | here yesterday, for violating an ordi- | that Newton D. Baker intimidated John | nance requiring “all male residents to T. Scott, Cleveland attorney, who Te- |go unshaven until after the pioneer viewed the $1000.000 fee suit which | celebration August 3 and 4.” The verdict was “guilty of contempt the Youngstown Sheet & Tube Co. with | for appearing in court without a beard.” ration, was | Both McDowell and his attorney, Lloyd Mc- Dowell was arrested Thursday when | Crawford closed the arguments for | found clean shaven. William Edwards, a barber, called as testified the de- McDowell's only defense was “that that Judge David Jenkins of Youngs- | the lady friend doesn’t like whiskers.” In pronouncing judgment, Judge I was Judge Jenkins who granted an in- | E. Grimm remarked “Women will no junction to forces led by Cyrus S. Eaton | doubt withdraw objections when they find their sweethearts and husbands are Scott, appointed to review |being taken out of circulation.” 10 BUILD CUT-OFF Railroad Project Ordered by I. C. C. Held Up by Lack of Capital. By the Assoclated Press. DENVER, July 9.—The Moffat Road has been asked by the Denver & Rio Grande Western, the Missouri Pacific and the Western Pacific Railroads to join them in a joint application to the Reconstruction Finance Corporation for a loan with which to finance construc- tion of the $3,500,000 Dotsero cut-off project. L. W. Baldwin. president of the Mis- | souri Pacific, arriving here yesterday for a meeting of rail executives regard- ing the cut-off, announced the invita- tion had bcen extended. The Moffat, however, has taken the position in the past that the financing of the project is the business of the R. G. W. and its owners—the M;..ssour! Pacific and the Western Pa- cifie. The D. & R. G. W. has been ordered by the Interstate Commerce Commis- sion to bulld the cut-off, but has been | unable to obtain the money. It re- cently was granted an extension until | September 15 to begin construction. Railway men said they understood the D. & R. G. W. does not have suffi- cient collateral to pledge as security for the loan from the Reconstruction Pinance Corporation. This gave way to reports that in the conference of rail officials, opening tonight, Rio Grande interests would ask the Moffat road to lend it $3,000,000 of Moffat road bonds authorized several years ago to finance the cut-off. Spanish Minstre s Compet-e. MADRID (#)—Prizes ranging from $250 to $500 for the best specimens of musical folklore discovered by next October have set village minstrels agog throughout Spain. The object. says Fernando de los Rios, minister of :duc.l!lzm, is'to stimulate Spanish cul- ure. AMEDIATE DELIVERY Make it yield th and your evening drives in th new Ford V8. you on your most enjoyabl vacation. of OWNERSHIP. HANDLEY 3730 MOTOR CO., Georgla Ave. N. W. PAREWAY MOTOR CO., 3040 M St. N. W. EYNON MOTOR CO., 1437 Irving St. N. W. MOTOR CO., 1111 18th St. N. W. LOI MOTOR CO., 215 Pennsylvania Ave. §. K. YOUR The Enjoy your summer tour. Make it carry PRESENT % % ROCK CREEK HELD MENACE TO HEALTH Head of Izaak Walton League Warns of Dangers In District Waters. Dr. M. D'Arcy Magee, president of the Washington, D. C., Chapter of the Izaak Walton League of A aerica, in & radio address for Rod and The Star Thursday said mittn:mte:{ Sp(xf),x;\{lul of water from Rock Creek is “sufficient to put your child i a p;mrertm illness.” i “As a timely caution to the work dnl preventive medicine, m‘rfn': remind you of a danger t our‘mids! " he said. 5 e “According to reports of carefull prepared bacteriological m\'cstikltloni by the Health Department of the Dis- trict of Columbia and the United States Public Health Service it is an indis- putable fact that the waters of Rock Creek and the Potomac River are fright- fully contaminated with deadly germs. | Survey 14 Years Old. “I feel that my position as a retired | physician in your midst and as viee president of the Izaak Walton League of America gives me the right of warn« lng[;:;]x before it is too late. e y we find Washington’ - | habitants seeking the coolmnggulnsd 1!:- | freshing recreations along Rock Creek. “What is badly needed in the District of Columbia is a modern sewage disposal | plant, with proper care of surface water. | This is imperative to bring about a re- | turn to healthful conditions. I 'might state at this time that the last health survey made for the District of Colum- bia, under which we are functioning, was _completed almost 14 years ago. | . “The contamination which is received | in the Eastern Branch from a Govern- | ment hospital is unpardonable, and from a private institution Rock Creek | is receiving a large amount of deadly | poison. This pollution to Rock Creek, nature's greatest gift to the National Capital, is common knowledge. [ Wants Betier Protection. | “Then again there is the filthy con- dition of the Potomac River along the | seawall right down to Hains Point. Just why this tall sea grass is not removed is another mystery. The Office of Publie Buildings and Parks says there is a lot of wild celery in this grass, which is good food for the ducks. This is a catch-all, it is unsightly, unheaithy, and at low water is a disgrace to the city. Theregis a stench from the river at times thd® is nauseating to many. “For the past several years the Wash- ington, D. C. Chapter of the Izaak | Walton League, under the competent leadership of trained professional minds, has pleaded for better protection with only partial success.” will 7Prench Vnt Tabernacle. Rev. J. A. McCambridge, pastor of |the Old-Fashioned Gospel Tabernacle, 505 L street northeast, will preach to- morrow at 8 pm. on “The Great ‘Tribulation.” N BEAUTIFUL FLORAL TRIBUTES $3.50 IN" 1407 H St. N.W. Nat'l 4905 Ford Factories and Assembly Plants Now in Full Operation Thousands of Cars for Washington The year’s greatest motoring thrill Is within your reach Today. Every Ford dealer is ready to make IMMEDIATE DELIVERY OF ALL MODELS THE MARVELOUS FORD V8 AT ONCE. best of the motoring season is ahgad of you. maximum of thrills and satisfaction. Buy it today! Delivery at once! 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