Evening Star Newspaper, July 28, 1932, Page 1

e WEATHER. (U. 8. Weather Bureau Forecast.) Local thundershowers late tonight or tomorrow; cooler tomorrow afternoon or night; Saturday fair with moderate tem- ‘Temperatures—Highest, 90, at The only evening pape in Washington with th: Associated Press news yesterday: Full report on page 9. Closing N. Y. Markets, Pages 14 and 15 lowest, 71, at 5:30 Ch WITH SUNDAY MORNING EDITION ¢ Foening B service. L 2 Yesterday’s Circulation, 115,894 No. 32,230. Entered as second class matter post office, Washington, D. C. WASHINGTON, D. C., THURSDAY, JULY 28, e 1932 —FORTY-TWO PAGES. *%%x* * UP) Means Associated Press. TWO CENT TROOPS RUSHED 10 QUELL B. E. . OUTBREAK Veteran Shot to Death, Two Others Wounded in New Battle ) AMERIGANS MOVE T0 PROTELY TRADE AT OTTAWAPARLE Drafting Unofficial Statement | to Offset Any Likely Disadvantages. GREAT BRITAIN SEEKING TO FORCE CANADA’S HAND Awaiting to Learn What Favors English Industry May Expect for Preference Tariffs. By the Associated Press. OTTAWA, Ontario, July 28.—Ameri- ean interests, eyeing the British Im- perial Economic Conference closely in an effort to protect their trade advan- tages in Canada, began today the draft- ing of an unofficial statement of views. The Americans, outsiders at the con- ference but keenly interested, planned to indicate the disadvantages that might result to Canadian-American trade if certain proposals before the eonference were agreed to. Britain Awaits Proposals. At the same time Great Britain sought diplomatically to force Canada’s | hand, and to learn what favors British 1ndustry may expect in return for pref- | erence tariffs favoring Canada. From the outset Great Britain has made it clear that she cannot act upon Dominion requests for export advan- tages until she knows what to expect in return. Conference procedure™ the daughter nations agree themselves on trade 3 Great Britain discusses s Iy each what favors she must claim. The various _delegations, representing th> numerous units of the British empire, are inclined to delay actual bargaining until Canada, titular leader of the con- ference, indicates what she intends to offer in return for what she hopes to Teceive. Canada, on the other hand, has ap- peared to bs waiting to see what Great Britam intenas to do. Canada Is Pivot. The interest of the United States, Argentina and other non-empire na- tions centers around Canada’s stand. These outside nations are especially concerned as to what Canada will offer Great Britain in connection with the “list of 8,020™ industrial articles pro- posed by Premier Bennett of Canada as a bargaining basis. The first plenary session of the Committee on Customs Administration attracted special notice today from the United States. This was because un- der the Canadian tariff act of 1930, the powers given to the minister of national revenue include virtually arbitrary con- trol over imports. Under the act, if a Canadian manu- ong. facturer complains that a United States |of them until the new directors take | producer is underselling him, the Min- ister of national revenues may instruct the American firm to raise his selling price above the Canadian manufactur- | er’s, or keep his product out of Canada. Cigarettes Blamed. Trade experts blame this law for the fact that cigarette selling in the United States for 14 cents, retails here for 55 cents, compared with 25 cents for a comparable Canadian brand. There was the possibility that the Committee on Customs Administration might discuss duties outside as well as within the Empire. If so. United States exporters would get somé definite notion of what to look for in Canadian trade. The semi-official United States view today was that the empire preferences might not be as costly as had been an- ticipated. It was pointed out that there is in Canada a leng cultivated taste for American food products and long fa- miliarity with manufactured articles from the United States. Also consid- ered was the fact that empire competi- tors would find it difficult to compete in price and quantity with United States concerns. Years to Supply Demand. It Would take nations seeking the American share of the British fruit markets eight to ten years, it was ar- gued, to acquire sufficient apple or- chards to supply the demand. Even then, there would be the question of whether the trade could bz weaned irom American preference. The matter of empire parity was be- fore today's session of the Committee on Currency. It was indicated that those parts of the empire most heavily (Continued on Page 2, Column 6.) BRAZIL SUPPRESSES SAO PAULO REVOLT pEN, NOT MACHINES, GET JOBS IN NEW $120,000,000 ROADWORK By the Associated Press. RIO DE JANEIRO, July 28—The government's offensive against the Sao Paulo rebels in the Parahyba River Val- ley was successful today, it announced. | The Federal forces captured 149 pris- oners and also took a great deal of war equipment, the announcement said. Pomerene Comes Here With 98 Cents In His Pockets By the Associated Press The man who will play a major part _in the distribution of the $3,800,000,000 capitalization of the Reconstruction Corporation arrived in the Capital this morn- ing with 98 cents in his pocket. As Atlee Pomerene, new Demo- cratic_chairman of the corpora- tion's board, emerged from a con- ference with President Hoover, he was asked by newspapermen about his recent experience in lending money. “Well,” Pomerene replied, “I reached here this morning with 98 cents in my pocket and I have been asked for that about a dozen times.” FIRST RELIEF LOAN GRANTED ILLINOIS Three Million for Emergency Passed by R. F. C. Under New Measure. By the Associated Press. Exactly a week after the new Federal relief bill became law, Illinois today has a $3,000,000 addition to her bank ac- count with which to feed and care for th2 needy. A Federal loan of that amount—at 3 per cent interest—was announced by the Reconstruction Finance Corporation yesterday and made available imme- | diately because it “appears that relief | funds will be éxhausted in certain lo-| calities” of that State by Monday. Finding quick advamcement of the money necessary, the corporation chose Abat |10t to wait until its directorate was| leted. Atles Pomerene, most re- cently selected director, arrived here | today, but one more member of the toard must yet be named by President | Hooves, During a visit at the White House this mcrning Pomerene discussed with the President the duties of his new post. Secretary of the :I‘rensury Mills and Charles Miller, regional director for the corporation’s activities in the New York district, also joined in the parley. As he left the White House, Pomerene said he had discussed mcney-lending af- | lairs as well as the appointment of a director to fill the vacancy cn the board. He said the appointment would be made shortly. ‘The Federal agency, agreeing to lend in the new $2,122,000,000 relief act| signed last Thursday, said it would ex- pect all States to meet their own needs as far as possible “and call upon the corporation only as a last resort” Otherwise, it added, the $300,000,000 would not be enough. Other Applications Held. | poration would withhold action cn most | | office. The Treasury said just about the time the Tilinois loan was announced that it was having no trouble raising $650,- 000,000 through note issues. Offers to | buy these notes totaled $5,500,000,000. Of the $650.000,000 that will be sold, | ~ (Continued on Page 4, Column 2.) {TWO CLAIMANTS OUT | OF WENDEL ESTATE CASE Another Withdraws Assertion of | Fourth Degree Relation in | Row Over $30,000,000. By the Associated Press. NEW YORK, | two of the claimants to the $30,000,000 | Wendel estate had withdrawn from the case altogether and that another | had withdrawn & claim to being a i fourth degree heir. ‘The surrogate said counsel for Ethel May Ross had conceded she was not a | fourth degree relative of the late Ella V. Von E. Wendel, but now asserted | she was probably related in the sixth or seventh degree. The lawyer was | given 10 days to flle an amended bill of particulars. Today’s announcement reduced the number of fifth degree claimants to 25, nine of whom have been recognized by the estate. There ae still two fourth degree claimants. Wilizm Robert Dew and James Floyd Dew. Surrogate Foley made his announce- ment at the opening of today’s session | |of & hearing to determine the right of | various claimants to bring legal actiom ‘!o break the Wendel will. | found that the company was earning the money out of the $300,000,000 fund | | the commission after receipts of Justice Other applications for State loans are | pending, but it was believed the cor- | July 28 —Surrogate. | James A. Foley, announced today that | PEPCO LOSES SUIT AGAINST NEW RATE OF UTILITIES BODY Justice Luhring Upholds Power of Commission to Revise Sliding Scale. COMPANY’S CONTENTION ON JURISDICTION DENIED Reduction in 1931 Would Have Been $300,000—Figures for 1932 Shown. ‘The Public Utiltities Commission scored a victory in District Supreme Court today when Justice Oscar R. Luhring signed a decree dismissing an appeal by the Potomac Electric Power Co., from the Commission's action in setting up a new sliding-scale method of determining electric rates In Wash- ington. ‘The decree slightly modified the slid- ing scale contained in the Commission’s order on account of certain mathemati- cal difficulties which have developed in working out the scale. The Commis- sion had consented in advance to this modification, and on all other points the Commission was sustained. From 1524 until last year, electric rates had been settled annually under | a “consent decree” of equity court under | which one-half of the excess earnings of the power company each year above 715 per eent return on an agreed valu- ation was used as a reduction fund for the next year's raves " 2 Ordered New Sliding Scale. Under this system the Commission more than 10 per cent per annum and last year ordered a new sliding scale, starting at 7 per cent, under which for every. extra per cent earned above 7 per cent the reduction fund became progressively greater. The company appealed on the ground that the 1924 decree was irrevocable. Chief Justice Alfred Wheat, ruling on a motion to dismiss earlier litigation, held that the Commission had juris- diction to ' enter the order, but re- served other points for a full hearing of the case on its merits. The case wes heard by Justice Luhring. In his memorandum opinion today Justice Luhring held that the com- pany had been given a full and fair hearing and that in entering the or- der it did the Commission was exer- cising the jurisdiction given to it by | the public utilities act, which was juris- diction to be exercised by the Commis- sion and not by the courts. $300,000 Cut in Rates. According to a statement issued by Luhring’s decision, the sliding scale as ordered by the court would have meant a reduction of more than $300,000 in electric rates in 1931, or in the period ended June 30, 1932. Under the commission's own order, which was taken to court, the amount available for reduction of rates of 1931 would have been $1,174,749, the state- ment said. Under the old consent decree method, the amount would have been $567.043, and under the method con- | WALKER’'S ANSWER | SENT TO ROOSEVELT By the Assoclated Press, NEW YORK, July 28—Mayor James | J. Walker’s answer to charges of Sam- uel Seabury and others growing out of the Hofstadter Legislative Committee investigation of the city administration was taken from City Hall shortly after noor: today by two special messengers for transmission to Gov. Roosevelt at Albany. | the Hotstadter Commitien: sensacl, of |alysis of testimony concerning the mayor to the Governor and attached a letter in which he asserted the mayor was unfit to continue in office. On the same day formal charges, with an accompanying demand for removal | of Walker, were sent to the Governor | | by the New York Committee of 1,000, a | civic organization. 2 On June 13 the No Deal party, a group of Democratic business and pro- | fessional men. also asked the removal ‘ol Wl!k?nr for misconduct and mal- feasance. I 'x.'he reply sent to Albany today is | understood “to take up each point in each of these three communications, By the Associated Press. Men, not machines, are to be favored | for jobs resulting from the new $120,- | 000,000 in Federal highway aid. | And these workers—skilled and un- Troops from the State of Minas | skilled alike—must be employed on a Geraes under Col. Amaral invaded the mnorthern region of Sao Paulo and drove the rebels out of the towns of Sao Joao and Daboavista, capturing a quantity of | munitions. The government denied radio re- ports from Sao Paulo that federal air- planes had bombed a hospital. Only proclamations were dropped over the cities, it sald. | 30-hour week basis and paid salaries specified in contracts between the Gov- ernment and those who undertake the road construction. So specifies the law. The Bureau of Public Roads is ready to speed the expenditure of many mil- lions next month out of the money made available under the new relief law. First, Secretary Hyde must pre- parc regulations to carry out the con- L3 gressional mandate of “the maximum employment of local labor consistent |wn.h reasonable economy of construc- | tlo{x’)." nder this proviso, the pro; machinery in forcing out Enfieflnfi will be curtailed and it was said at the bureau that disputes undoubtedly wo;‘ld htl-vot enforcement. achines will not be banish any means, but it will be up mmsu!g highway departments, with the co- | cities, particularly g Fom W) Vics-PRESIDEAT | ) P2 EConoMIC) ISSUES |/ < P GARNER THE DEMOCRATIC STRATEGISTS. DRELTORS OF 60" BANKPLOTHUNTED National Gonspiracy 1s Laid| to Authors of Propagan- da Found in Pontiac. By the Associated Press. CHICAGO, July 28.—Authors of com- | munistic propaganda found in a Pon- tiac, Mich., hotel were sought today by the secret service and detectives every- where as the directors of a Natlon-wide campaign against the confidence of bank depositors. Chicago bankers, Government officials and Michigan police unhesitatingly blamed the Communist party for & sys- tematized attack on the integrity of financial institutions in many large the runs which threatened every bank in Chicago last month. It was said by C. L. Smith, prosecuting attorney at Pontiac, to have been backed by Soviet Russia. William Z. Foster, Communist candi- date for President, denied his organiza- tion had sponsored a whispering cam- paign against the First National Bank of Pontiac, or that a man known as| George Rowland, in whose room sedi- | tious letters were found, was a member of the party. | Object to National Search. “Rowland” was believed today to be | really George E. Powers, ohce candi- date for president of Queens Borough in New York City and with a record for criminal syndicalism in Michigan since last August. He escaped a police trap in his raided hotel room and be- came the object of a national dragnet. Tllinols’ drastic sedition law, provid- ing 20 years imprisonment and directed against “any one who advocates ref- oymation of the Government by vio- lence or any other unlawful means,” | was eyed as the handiest weapon should any radicals be caught and connected with the Pontiac literature. For the letters were signed “Yours for the revolution.” and some discussed “bringing about the unrest which will lead to the revolution.” Forty Banks Closed. Chicago's June bank runs closed | more than 40 institutions, including | two in the loop, and caused the city’s | soundest financial citadels to store up- wards of $100,000,000 in cash on hand | in order to meet demands of depositors. The situation here, no longer acute, appeared definitely linked with refer- | ences in the Pontiac letters sent from Chicago, advising “Rowland” that there WATSON ARQUSES Seger-Dominick Marriage Is Issue In Congress Race Republican - Democratic —— fLeading Shares Rally $1 to Wedding Injected in Carolina Primary. By the Associated Press. | GREENWOOD, S. C., July 28.—The | fact that Fred H. Dominick of New- | berry, Democratic Representative for | 16 years, married the daughter of a | Republican Representative, has been injected into Dominick's fight for re- nomination from the third district. { Three years sgo Dominick married | Miss Alva Seger, daughter of mpre-} sentative George Seger, Republican of New Jersey. ’ Denouncing it as a “contemtible, cowardly and dastardly political trick,” | Dominick made public the following | telegram sent him from Eendersonville, | MO “In appreciation of the splendid service you and your father-in-law, Representative George M. Seger, have rendered in Congress, your Republican | friends in North Carolina join in ex- | tending you much success in your cam- paign for re-election. You may rest assured that there will be no opposition put up against you in the general elec- | tion. | “(Signed) Your Republican Friends.” Dominick said he would attempt to find who sent the telegram. His wife, he said, has voted the Democratic ticket since their marriage. DEBTS CAT TALK Insistence on Arms Slash Reveals Trend Favoring Borah Stand. By the Associated Press. An_indication from an administra- tion Republican that he might be will- ing to talk about debt revision if Europe will reduce arms brought on more talk in the Capital today over what actually is going to happen. The latest pronouncement was from | was “much progress here” and “consid- | Senator Watson of Indiana, the ma- erable runs on jugs in loop.” | jority leader, whose views have no in- | | miles north of here, Melvin A. Traylor, president of the Pirst National Bank and former head of the American Bankers' Association, | blamed the . He said he be- lieved the “plot to be Nation-wide,” and | that he had reports from many cities | that s similar system was used in frightening depositors by anonymous | telephone messages. Rowland’s letters told of a plan, discussed but abandoned, of starting | simultaneous runs in many key cities. Tell of Radicals’ Plots. | Other Chicago bankers told how | radicals opened 300 to 400 bank ac- counts and then withdrew them simul- taneously, spreading news of the “run.” ‘The American Vigilant Intelligence Federaticn identified “Comrade H. G.” Rowland's Cleveland correspondent, as Harry Gannes, director of agitation and propaganda for the New York district. They said he was in Chicago during 1931, when bank runs first became seri- °“Ww. B.” Rowland’s Chicago in- formant, they said, was Herbert Newton, alias Gilmer Brady, a colored man, with on operation of the Federal supervising engineer, to determine what ‘?:rk can be done reasonably by hand. There is latitude for differing opinions. offices at Communist street, Madison in Atlanta for criminal syndicalism and now is studying soclology at the Univer- sity of Chicago. . : considerable inflence at the White | House. He found it “unthinkable” that the United States should let Europe keep the money it owes to build more war strength. But he did not find it “unthinkable” that the United States might be willing (Continued on Page 2, Column 3.) STOCKS CONTINUE UPHARD ADVANCE $5 Under Active Demand. Dollar Gains Strength. By the Assoclated Press. NEW YORK, July 28.—Bullish ac- tivity was resumed in major finan- cial markets today coincident with pro- nounced strength of the dollar in terms of European currencies. Leading shares on the New York Stock Exchange rallied $1 to more than $5 under active demand, some of which was urgent covering by shorts who found offerings scarce. Buying was | well diversified, although rails showed outstanding strength, led by New York Central. Santa Fe, Norfolk & Western and Union Pacific, which, with American Telephone, American Can, du Pont, General Electric and General Motors rose $1 to more than $4. The advance was interrupted by profit-taking in the morning, but the market was most active when prices | were rising. Volume during the earlier hours was the largest since February. | Bonds also showed a strong tone. Heaviness of foreign currencies here | was attributed by bankers to European urchases of ‘American securities at lew York. SEATT[.E—PleNE SEIZED, FLYERS HELD IN CANADA Pair Arrested North of Vancouver Face Charges of Illegal Entry and Operating Without License. By the Assoctated Press. VANCOUVER, B. C, July 28— Charged with illegal entry into Canada and operating without a license, C. W. Still and Walter Gorrie, Seattle fiyers, were arrested at Kelsie Bay, 165 miles north of Vancouver and brought here yesterday. The arrests were made by R. Carter Guest, district inspector of civil avia- tion; Flight Lieut. A. L. Johnston, dis- trict inspector of aircraft, and Con- stable Taylor, Royal Canadian Mounted Police. The plane was confiscated and is being shipped to Vancouver. Police said the flyers were en route to Alaska, flying north along the British Columbia coast. Their plane was said to be home made and with out a license. The police asserted the pair took off from Seattle and landed at Sechelt, 40 where they re- fueled before continuing up the coast. They are being held in the immigra- tion sheds here pending a hearing. U. S. Contractor at Vatican. VATICAN CITY, July 28 (#)—Pat- | rick McGovern, New York contractor, was received today by Pope Pius. He was presented by Mgr. Burke, rector of the American College in Rome. ANTHRACITE MINES REOPENING; 2,000 MEN BACK By the Associated Press. WILKES-BARRE, Pa, July 28— Revival of activity in the anthracite trade was indicated today by the post- ing of notices of several coal companies for operation of collieries in this region and in the Lehigh Valley Rallroad’s recall of several crews. Collieries called for operation include: Glen Alden Coal Co,, 11; Lehigh Valley Coal Co, 8; Hudson Coal Co, 3; Susquehanna Collieries Co., 3. AT WORK TODAY The Kingston Coal Co. also will work several operations. Approximately 2,000 men returned to@work today in the Prospect, Henry, Warrior Run and Maltby collieries of the Lehigh Valley Coal Co., idle since May 4. ‘Women Ordered to Work. THE DALLES, Oreg., July 28 (#)— With the pay roll expected to reach 150 and the work to last until the first (Continued on Page 2, Column 8.) Radio Programs on- Page C-4 Sy MITCHELL ORDERS ALL - VETERANS TO VACATE . FEDERAL PROPERTIES Battling Bonus Seekers Quelled in Brief Battle With Uni- formed Detail. TWO POLICEMEN IN HOSPITAL; TWELVE VETERANS ARE INJURED Gen. Glassford Considers Asking for Troops, but Delays Decision—He Loses Badge in Fight. BULLETIN Two troops of cavalrymen from Fort Myer crossed the Arlington Bridge and came up Seventeenth street early this afternoon. The troops took up a position on the Ellipse, south of the White House. Five tanks and machine gun equipment from Fort Myer joined the forces back of the White House later, indicating that the troops there were preparing to carry out their orders “to clear the area” of rioting today. The instructions issued to Gen. Douglas MacArthur, chief of staff of the Army, ordering troops out, follows: “The President has just informed me that the civil gov- ernment of the District of Columbia has reported to him that it is unable to maintain law and order in the District, “You will have United States troops éroceed immedi- ately to the scene of disorder. Co-operate fully with the District of Columbia police force which is now in charge. Surround the affected area and clear it without delay. “Turn over all prisoners to the civil authorities. “In your orders insist that any women and children who may be in the affected area be accorded every consideration and kindness. Use all humanity consistent with the due exe- cution of this order. (Signed) “PATRICK ]J. HURLEY, “Secretary of War.” Shot through the heart by a policeman as he tried to wrest a pistol from another officer at Third street and Penn- sylvania avenue this afternoon, an unidentified bonus march- er died on the way to Providence Hospital. Two other vet- erans also were shot. Policeman George Shinault turned in his pistol and other equipment at the first precinct station house shortly after the shooting. Shinault said he fired the fatal shot. The shots were fired during a second riot which started when police tried to stop a fight between two veterans. About a dozen shots were fired and two veterans in addi- tion to the dead man were reported wounded. Spectators said the first shot was fired by a bonus march- er climbing down a ladder. Police and bonus marchers clashed today when Treasury agents {attempted to evict 100 of the veterans from a building on lower Pennsylvania avenue and when casualties had been counted at 3 o'clock, four policemen were in the hospital, one seriously injured, | and a dozen veterans had been clubbed severely. With 5,000 men milling about the scene at 1 o'clock, just after the police had succeeced in establishing temporary order, Gen. Glassford went to the District Building to consult with the Commis- sioners on whether to call for military aid. After the conference he (Continued on Page 3, Column 1.) TARIFF ON GOODS MADE | DEATHS LAID TO POISON ON HIGH SEAS IS HIT| 1ure pie in Hospital Atter Drink- | Whale 0il Case Carried to Supreme ing From Whisky Bottle. | SAN FRANCISCO, July 28 (#)—Pc- Comtet v vt Sty lice said last night they were satisfied Protests Levy by U. S. By the Associated Press. The Supreme Court was asked today to decide whether customs duties can legally be imposed on articles produced on the high seas. The question was raised by the Proc- ter & ,Gamble Manufacturing Co. of Cincinnati on the importation of whale oil used in the manufacture of soap. It entered into a contract with a Nor- wegian firm for oil from whales taken in Ross Sea, a part of the Antarctic Ocean 80 miles from land. Under pro- test, it paid a duty of 6 cents a gallon on the oil when it reached New York and brought suit to recover the money. Trial Court held that ships at sea and the property in them are a of the country to which the ship longs and that for customs purposes the whale oil was taxable as coming from Norway. ‘The United States Court of Customs lndé’l,unl Appeals affirmed the judg- men Military Planes Crash. ‘WARSAW, Poland, July 28 (#).—Two military fihn- crashed at Konin and Lwow, all the oceupants. the deaths of Traffic Officers Richard C. Smith and Joseph C. Lorenz and' Louis Jocobson, a building manager, were due to drinking of polson from ‘s whisy Lieut. John Reed of the homicide squad said Jacobson had made a solu- tion of the poison for bleaching of pho- tographs. Reed was uncertain, however, whether Jacobscn accidentally placed the bottle containing it before the officers or it had been placed in the bottle by some one else unknown to him. The policemen, friends of Jacobson, went to his cffice in a relief period yes- terday. Shortly afterward Jacobson's secretary found the three unconscious. They died in a hospital. JOIN EUROPEAN PACT | Greece and Austria Raise Number of Nations to Fourteen. LONDON, July 28 (#)—Greece and Austria announced today that they would adhere to Anglo-French con- nm.mvacrn This brings to 14 the number of European nations now par- ticipating in the arrangement. <4