Evening Star Newspaper, August 4, 1932, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight and cooler tonight. Tempera tures—Hig] pm, yesterday; low today. Full report on page 9. Closing N. Y. Markets, Pages 14 and 15 tomorrow; slightly hest, 85, at 4:30 est, 73, at 5 am. he 1 ‘WITH SUNDAY MORNING EDITION nening Star. Associated service. The only evening paper in Washington with the Press news Yesterday’s Circulation, 115,093 No.. 32,237, Trr=umse W Entered as second class ma B ing! D. tter ton, e WASHINGTON, D. ‘€, THURSDAY, AUGUST 4, 1932—FOR TY-TWO PAGE *k * (P) Means Associated TWO CENTS. Press. B. . F. RETREATING| FROM JORNSTOWN ON SPECIAL TRAINS 75 Per Cent of “Army” to Be Evacuated by Night—Beth- lehem Pays Fares. CARTER PROTESTS MOVE; GOES TO HUNTINGTON Plans Camp in West Virginia. Group of Followers Awaits Message From Him. By the Associated Press. JOHNSTOWN, Pa., August 4—Hud- died silently about smoldering bonfires, | their meager belongings tucked away in sacks and nondescript bundles, the ! Raskob and Astor Luncheon Guests Of Gov. Roosevelt minee Discusses Party ROOSEVELT 70 USE STATE AS MODEL IN .. UTIITY POLCY Against High Electric Rates, but Expects Fair Profit to Be Made. Finances With Former Chairman, | | | By the Associated Press ALBANY, N. Y., August 4—John J. Raskob, former chairman of the Demo- cratic National Committee; Vincent Astor and George Rocsevelt, & shipping executive, had luncheon today with lin D. Roosevelt, the Demo- cratic presidential candidate. “I won't talk politics,” Raskob replied when asked “Have you ever personally congratulated Rocsevelt on his nomina- | tion?” The former party chief refused to Publicity About Securities for Sale pose for a picture. | “I'm out of the picture no he said. | It was understood Roosevelt talked | party finances with both Raskob and | Astcr. Astor was a supporter of former | Gov. Smith in 1928 and a contributor to the cempaign fund. Raskob, after a two-hour conference with the Governor, caught & train for New York. “Will you take any part in the cam- paign?” he was asked. HITS FINANCING METHOD OF SOME BIG CONCERNS Favored—Warns Firms to Eschew Politics. (Copyright, 1932, by the Assoclated Press.) ALBANY. N. Y, August 4.—Gov. Pranklin D. Roosevelt outlined infor- mally today the broad general principles which will serve as guide posts in form- | WONDER 'S PINCHOT'S REQUEST FOR 10000000 1§ REFUSEDBY .F. |Legislature Has Not Done All It Could to Aid, Says Board’s Statement. | | e, LATER HELP POSSIBLE, POMERENE DECLARES Immediate Loan Had Been Asked, With Plea for $35,000,000 to Be Made Later. By the Associated Pres The Reconstruction Corporation to- day refused to extend any destitution relief aid to Pennsylvania at this time. Gov. Pinchot and other State officials 19 IATONS T0 AN ANY TERRITORIAL GAI I CHACO W |New Doctrine Warns Bolivia and Paraguay to Reach Peaceful Solution. APPLIES KELLOGG-BRIAND PACT TO THIS QUARREL American Powers Unite Here in Policy Expected to Take High Historic Rank. By the Assoclated Press A new enunciation, promising to be historically as prominent as the Mon- roe Doctrine, today warns Bolivia and Paraguay that unless they arbitrate “No. I'm out of politics completely,” he replied. had requested an immediate loan of | their dispute over the Chaco, any ter- | ing his recommendations for the regula- $10,000,000 and said they would ask |Titory either of them gains will not be Bonus Expeditionary Force waited to; be taken home today. Beyond camp fire smoke screens, Baltimore & Ohio Railroad trainmen sped preparations to move another trainload of men and their families. Mayor Eddie McCloskey, dashing vigorously here and there directing ac- tivities, announced that Western units will continue moving out through the day. California, Chicago, Kansas City and & part of the St. Louls contingents left during the night amid cheers, songs and ! the stirring music of a band. Camp| officers said between 900 and 1,100 men left on the 14-car special train, but other observers estimated not more than 500 men were on the train when it pulled out. ‘Women and Children Leave. A number of women and children were in the contingent. Thousands of _citizens crowded the sidewalks while long lines of automo- biles congested streets in the southern part of the city, requiring intense ac- tivity on the part of city police and State highway patrolmen to make lanes for the marchers. A second trainioad of men, women and children left this morning in an “evacuation special” for the West and| Southwest. Twenty-five railroad police- men and city and State police assisted in_their_departure, which was orderly. The Johnstown Chamber of Com- merce issued a statement last night that it had made arrangements to finance the exodus of all visiting marchers from this locality. The cham- ber refused to name the source from which the funds were received, but the Associated Press learned the Bethlehem Steel Co., which has a large plant here, Tas agreed to pay for the special trains. But one delegation, Illinois, had defi- nitely 4o converge immediately on its State capltal as first group left squalid Camp McCloskey for their home States. Springfield, Ill, was lhl‘ goal of the group which was taken to Chicago from where it planned to move enmasse on the Sangamon County city. Leaders of other contingents held only tentative plans for immediate action although the majority said they expected to eventually set up camps at their capital cities. Meanwhile, a group of these remain- ing awaited word from Doak A. Carter, resigned chief of staff, who left late yesterday for Huntington, W. Va, Wwhere he planned to arrange an en- campment. Eddie Atwell, . representative of Comdr. W. W. Waters of the B. E. F., took over Carter’s duties at Johnstown, and assisted by D. B. Ellison. nationai | contact officer, hurried through work of | moving the tattered hosts cut of this steel city. Pickpockets in Crowds. Extra police and State troopers were stationed at various points near the camp, on Johnstown streets, and on highways as crowds of curious con-| tinued to filter into the city. Pick-) pockets appeared last night in the! throngs which filled streets. | Mayor McCloskey carried in his| pocket a message of praise from Gen. Smedley D. Butler as he arranged de- | parture of the second group for St.| Louis. Butler commended the fighting | ex-pugilist for handling the situation | here as he did A late night development came with announcement of J. A. Kennedy of Philadelphia that he and his aides had successfully thwarted an intended march on Harrisburg to picket the Ex- ecutive Mansion of Gov. Pinchot. Ken- nedy, aide to Waters, faid he had bzen | chosen commander of the 1500 Penn- sylvanians in Camp McCloskey. Field headquarters received a request from R. A. Beatty of Port- who said he was leading a group of veterans from Portland to| Johnstown when he read in newspapers the camp was being broken up. The message came from Pocatello, Idaho, where Beatty said he and his band| awaited orders. Ellison said he probably would in-; struct them to return home. As the sun thed its light over the| camp hundreds of veterans and their families took to highways in all direc- tions. Others remained restless, but orderly, awaiting commands to entrain. Mayor McCloskey said 75 per cent ur| (Continued on Page 3, Column 3.) | ENTERS NEW YORK RACE CONFIDENTLY Lehman Bares Candidacy for Gov-| ernor With Assurance of “Vast Majority” From Upstate. By the Associated Press. ALBANY, N. Y, August 4—Lieut Gov. Herbert H. Lehman, saying he felt assured of the support of a “vast majority,” today formally announced his candidacy for the Democratic gub- ernatorial nomination. “I have had the assurance of sup- port from a vast majority of the up- state counties,” Lehman said. “That support has come entirely unsolicited. without letter or word from me.” Asked if he had conferred with for- mer Gov. Smith, he replied: “I feel quite confident that he feels highly of me regarding my service to the people of the State. Of course. I canrot speak for Mr. Smitn.” Lehman said he did not know where BRITAIN OFFERED CANADIAN TRADE Dominion Plan for Exchange| Would Take Valuable Mar- ket From U. S. By the Associated Press. OTTAWA, August 4—Canada for-| mally submitted a concrete offer of an | exchange in tariff preferences with Great Britain today, proposing a wider | spread of preference as between British | and foreign goods imported by the Do- | minion. i The plan would mean perhaps as much as $200,000,000 a year increase in Canadian imports of British goods. In| return the Dominion asks Great Britain | to reciprocate in approximately the | same amount. British goods covered by the Cana- dian offer includes iron and steel, an- thracite coal, automobiles, electrical supplies brass products and certain lines of textiles and leather goods. Last year Canada imported $200,000,- 000 worth of iron and steel, most of it from the United States and only 10| per cent of it from the United King- . In a normal year the iron and steel imports run to $350,000,000. Plan Received Cordially. Canada asks new or increased prefer- ences on wheat, meats including bacon, tions of the Nation's public utility in- dustry. The Democratic nominee for Presi- dent, busily engaged in affairs of state —among them the delicate question of deciding on the Mayor Walker ouster case—declined to be formally quoted, but went into the utility question at considerable length. He said he would set forth specific recommendations in 8 reasonably early campaign speech. He remarked that his principles today are unchanged from those which he has followed in his dutles as Governor of New York State, Broadly, they may be outlined as follows: 1. The Governor condemns as inde- fensible the financing methods em- ployed by some large utility holding corporations which are now in finan- cial difficulty, but he draws a sharp distinction between those companies which are, as he feels, soundly financed and those t:flch create top-heavy cap- italization. Public Statements Sought. 2. The Governor holds as a primary principle the belief that all utility companies whose securities are publicly owned must be compelled to make pub- lic detalled statements as .to thelr earnings, their capitalizations and the | interrelationship _of the holding | companies with the operating com- panies, He contends that this general | rule should be made to apply to all corporations which list their securi- ties on public markets. Full publicity, he insists, should be furnished in im portant transactions of barter or trade which have a vital public interest. Horse trading, in his opinion, might be exempted, because it is so firmly root- in_Amercan tradition, from this general rule. 3. Gov. Roosevelt insists upon the right of Government to own power sites and to produce electric power, but does not envisage public ownership of all utilities. He explains that such a thought, which has been reported fairly widespread in Wall Street circles, is a misapprehension. The Governor’s po- dairy products including butter and cheese, fish, copper, nickel, zinc, lead, cattle, vegetables and fruits. Canada contends that the United Kingdom can buy within the empire much of the volume of these commodi- ties which she now takes from foreign | countries. The offer was cordially received by the British delegation, but no definite proposals were made in return. The hand ot Soviet Russia was seen | at the conference as reaching forth to snatch New Zealand's market for oil from the United States. It was reported that the Associated Motorists' Petroleum Co. of New Zea- land, which heretofore has bought its gasoline, kerosene and lubricating oils | from the United States and from the Netherland Indies, had cbtained an ex-‘ clusive monopoly on the importation, | distribution and sale of these products from Russia. ‘The Russian ofl, the report said, is to be sold in New Zealand at about 5 cents less a gallen than the price now paid for United States oll. Austarlia and Great Britain continued | discussion of an agreement which would divert much of Australia’s motor car buying from the United States to Brit- tain return for British preferences on fruits, butter, wines, grain and dairy products. Steel Accord Reported. These discussions gave rise to reports | that the recently reported steel accord | between the United Kingdom and the Dominion of Canada was being ex- tended to Australia. Various bi-lateral agreements in process of negotiation were seen as di- | rect threats to many important Amer-| jcan export products, including steel, | textiles, oil, automobiles, fruits, farm | products and farm machinery. The effect of all these proposed agreements, however, even if they should be made, might not be what the makers intended. All of them would have to be submitted to the parlia- ments of the participating countries for approval. It was pointed out also| that the governments are not the buy. ers and the buyers might not respond to the arrangements in many cases. | Politics and personalities also en- | tered the picture today in the wake of Premier Bennett's implied demand | for wheat preference and his denial | | {of an open market to British textiles. The Evening Star, published in Lon- don under the same ownership as the Liberal News-Chronicle, was quoted in | Ottawa papers as charging Bennett with “crude humor on serious matters” as a result of his quips with the press on Tuesday. and as declaring he had “play- ed the buffoon long enough.’ sition on a national basis was de- scribed as unchanged from his stand | in New York State government—name- ly, that the mere power of the State | to produce electricity and to regulate the profits which privately owned com- { panies might derive from the sale of | this power at retail would serve to forestall the temptation of raising rates unduly high. Non-Political Role Advised. 4. He regards as a step in the right ¢irection the recently anounced policy of the National Electric Light Associa- tion to confine its activities solely to | the field of statistics and to remove itself from lobbying or propaganda. The utility companies, in the Governor's opinion, would do well to keep religious- 1y clear of politics. 5. While the Governcr is committed to & policy of stricter regulation of the | utility industry, he feels that his party’s campaign will not impose hardships on the soundly-directed companies, al- though it may direct considerable fire upon those companies which, because| of financial transactions or allegaticns | of excessive rates, have aroused protests | from consumers or investors. i 6. A return of 7 to 8 per cent on its investment is held by the Governcr to | be a reasonable expectation by any power company. Consequently, he holds to the view that his program of closer regulation, by keeping this principle up- permost, will do nothing to disturb the present high investment rating of the higher-grade public utility securities which in recent years have replaced railroad liens as an investment favorite. Holding Company View Given. While strongly attacking what he holds is abuse of power, in the case of some holding companies, he considers the holding company theory sound in principle, although sometimes unsound in actual operaticn. He contemplates no attack upon the principle of hold- ing company organization. Gov. Roosevelt indicated many in- quiries had been received from in- vestors in public utility securities, seek- ing light on the Democratic party's stand. Broacly, this has been outlined by the Governor as pledging first pro- tection for the consumer of electricity against high rates and at the same | time providing a reasonable return to the utility companies for their service. France Cuts Wheat Imports. PARIS, August 4 (#).—A decree pub- lished today cuts the amount of for- eign wheat permitted in French-made flour from 15 to 3 per cent. OF FUND SET AS More than cne million dollars has been saved by the Prison Bureau of the Department of Justice from its appro- priation by Congress for the last fiscal year, it was announced today. Substan- tial savings on food and materials pur- chased for upkeep of Federal prisons, the statement said, “has been acccm- plished without any diminution ln,me supply or quality of food furnished.” John P. Curry, the Tammany leader, stood concerning his candidacy. Curry, with his allies from upstate, controls the State organization. At the Chi- cago National Convention Lehman sup- ported Roosevelt, while Curry favored The million dollar savings, it was ex- plained, includes “balances in the ap- propriations which have not been lotted of $685989, and further savings out of amounts allotted to the institu- tions of $334.129." This savings has been Evumed to the PRISON BUREAU SAVES $1,000,000 IDE BY CONGRESS Residue of Appropriation Resulting From Economy to Be Returned. United States Treasury, it was ex- | plained. “While a portion of this amount of saving is attributable to the delay in | opening ‘one or two Federal prisons,” | said the Department, “the great bulk of it is due to the careful control which the Bureau of Prisons has exercised over Federal prisons and reformatories and has been made possible through the conscientious effort of wardens and su- perintendents who have taken advan- tage of improved purchasing methods end the substantial reductions in the cost of food and clothing.” Detaiis were listed as to the specific | amounts saved from each institution. “THE FORGOTTEN MAN.” LAMONT RETIRES FOR STEEL POST Commerce Secretary, Re-| turning to Business Life, Re- placed by R. D. Chapin. Robert Patterson Lamont, who has resigned as Secretary of Commerce, will become prwden't of the American Iron and Steel Institute, according to | an announcement made today by offi- cers of that organization. | resident Hoover late yesterday an- | nounced he had received Mr. Lamont’s resignation snd named Roy D. Chapin of Detroit, as his successor. Mr. Lamont will succeed Charles M. | Schwab, president of the Bethelchcm{ Steel Corporation, as the ranking execu- tive leader of the recently reorganized | institute. He will take office on August | 18, on which date a formal election will take place. Tt is understood Mr. Lamont will im- mediately undertake the development ot a more aggresive_golley an: also broaden the scope O e institute, bringing closer co-operation among steel producers of the country. Schwab Reveals Facts. Mr. Schwab assumed responsibility for the announcement, according to an Associated Press dispatch from New York, shortly after Commerce Depart- ment officials said Mr. Lamont had left | for New York to confer with business leaders, whom they refused to identify. | ‘While Mr Lamont was affiliated with the fron and steel industry as presi- dent of the American Steel.Foundries prior to taking his portfolio in Presi- dent Hoover's cabinet, it was learned he would not resume active charge of this corporation, but would enter a| wider fleld of the industry. | Until Mr. Lamont refurns to his| office tomorrow and releases them from his confidence, his friends refused to comment on Mr. Schwab's announce- ment. “Mr, Lamont has remained in his position at great sacrifice for several months,” President Hoover said in an- nouncing the change. “I regret ex- tremely his loss from the cabinet, as his abilities and service have com- manded the respect and confidence of the entire country.” Reports_that Mr. Lamont's resigna- | tion was due to his desire to return to | private business to recoup his fortune | were denied emphatically by his friends. | He severed his private business con- nections shortly after assuming the Government post. Optomistic on Business. | Mr. Chapin, now chairman of the board of the Hudson Motor Car Co., | received word of his appointment during | conference with President Hoover | vesterday. He returned to Detroit im- iately. “‘i" Bhsincss man undaunted by trade | barriers and cheered by the rainbow hues of recent developments, Mr. Chapin_ will relieve Mr. Lamont next | e = = | (Continued on Page 2, Column 3. | BOB BUCK TO TAKE OFF | TONIGHT FOR MEXICO ClTYf Youthful Air Record Holder Plans | to Cover 2,250 Miles in 22 Hours or Less. | | By the Associated Press. NEWARK, N. J. August 4—Bob/ Buck, 18-year-old Hillside aviator and junior cross-country record holder, | plans to take off at midnight tonight on the first leg of his Newark-to-Mex- ico City flight. His take-off was de-‘ layed 24 hours by bad weather. He expects to cover the 2,250 miles to the Mexican capital in 22 hours or less. | His first refueling stop will be at Rich- mond, Va.. with others at Spartansburg, S.C.; Montgomery, Ala.; New Orleans, Houston, Tex.; Brownsville, Tex., and Tampico, Mexico. | PFrom Mexico City he will fiy to Los} Angeles to enter the Pacific wing of | the Cord Cup Handicap Derby of the National Air Races, ending at Cleve- | land. | | SUIT ATTACKS DIVORCE Former Wife of Book Store Pro- prietor Charges He Used Fraud. SAN FRANCISCO, August 4 (A).— Mrs. Concetta Vilardi of Plainville, Conn., filed an action yesterday to set aside a divorce Antonio Valardi bookstore proprietor, obtained here in 1928. She charged he used fraud and per- jury and contended she never Was served with the divorce papers. The divorce decree made no pro- vision for maintenance for their daugh- ter, now 10 year old. Mrs. Vilardi asked that the court order Vilardi to support the child. IR | | | | Named to Cabinet ¥ - IS SLATED CHAPIN. 0550 ASTAAN NI Appointment as Successor to De Martino Expected at Rome. By the Assoclated Press ROME, August 4.--Augusto Rosso, | Who has served twice in the Italian em- bassy at Washington, is expected to be- come Ambassador to the United States in the general which Premier Mussolini is making. The present Ambassador is Nobile Giacomo de Martino. In 1910 Signor Rosso occupied a rel- atively minor post in the embassy and in 1922 he was counselor. Now he is chief adviser to the government on rep- arations, disarmament and naval limi- tation, with the title of director general of affairs concerning the League of Na- tions. He is 47, comfortably wealthy, and a bachelor. Sometimes he is called the “uncle from America,” for he has many American habits, smokes a pipe and speaks English fluently as well as French and German. Among other changes said to be un- der consideration is the Count Pionatti, present Ambassador to Buenos Aires, to the embassy at Paris. ENTIRELY ACCEPTABLE HERE. Rosso Widely Known and Well Liked in Washington Circles. ‘While the State Department would not officially confirm today reports from Rome that Augusto Rosso, who has served twice in the Italian embassy in Washington, is expected to be named successor 10 Ambassador de Martino in the general diplomatic shake-up which Premier Mussolini is making, it was | indicated his appointment would be entirely acceptable to the United States. The inference was drawn that the department had been sounced out on the acceptability of Rosso, who is head of the League of Nations section of the Italian Foreign Office. Resignation Expected. Ambassador de Martino's resignation is expected shortly. Officials in close touch with Italian affairs indicated there would be no reason for a change in Ambassadors other than the fixed policy of Premier Mussolini, which is to make shifts in foreign posts every few years. Undersecretary of State Castle today took cognizance of press reports from Rome and described Rosso as an in- telligent, keen and efficient diplomatist, being one of the best informed men on world affairs. Through his previous service in Washington, as counselor to the embassy, Rosso is well known offi- | clally. In 1910, Rosso occupied a relatively minor post in the embassy and was | appointed counsellor in 1922. He 1is chief advisor to the government on reparations, disarmament and naval | limitation, and during the Italian debt negotiations in Washington some years ago he represented his country on the Debt Commission. Known As Naval Expert. He is primarily a naval expert, ac- cording to State Department officials, and has been negotiating with France in an effort to arrive at a naval agree- E:Ef between that government and Should Signor Rosso be named Am- bassador to Washington, he is likely to prove an extremely popular figure in diplomatic and social circles. He is Radio an?l on Flle C-8 47 years old and a bachelor, speaks T=elth fin-r'ly and has acquired many Eohits. STOKS SLL OFF - AFTER BIG GAINS |Profit Taking Late in Day Cancels Large Part of Advances. By the Associated Press. NEW YORK. August 4.—Stocks pur- sued their bull market with a vigor | reminiscent of those 1929 “new era” | times today. only to run into enough ‘pmm taking to cancel or sharply re- duce extreme gains of $2 to $6 a share. The list stiffened again in the last five minutes and & number of shares fin- ished with net gains of $1 to $3. Commodities, including wheat, cotton and sugar as well as lesser staples, were also strong during the greater part of the day, although they, too, receded in later dealings. Bonds were indifferent to the advances in other markets and moved narrowly. At their early afternoon high. when American “Telephone Wwas _selling - at $100, or par, and United States Steel above $34, pivotal stocks had com- pleted a recovery of about 50 per cent of the ground lost in the March-June slump. ~ This extreme gain from the early June lows represented an appre- ciation in quoted values of shares listed on the Stock Exchange of roughly $7,000,000,000. | advance which we must pay back, to- later for another $35,000,000. Chairman Pomerene in a brief state- ment said the board felt that the Penn- sylvania Legislature and various poli- tical units in the State had not done all they could to aid in the situation. Therefore, he said, Federal relief would be withheld at this time, although the board felt that some ald should be given later. Pomerene'’s Statement. The statement by Chairman Pcme- rene foliows: “It is our belief that on proper show- ing we should extend some relief to the State of Pennsylvania, but it must be | borne in mind that we have funds en- trusted to our board which are to be expended not in lieu of State or local relief, but to be supplemental thereto if, when and as necessary. “After a full hearing we feel per- suaded that the Legislature of Pennsyl- vania and its several political subdi- visions have not done their full duty | with respect to furnishing funds for re- | lief purposes. | “We shall defer action with regard to relief for Pennsylvania until we know | what the Legislature will do for the | reliet of its own people.” Claimed “Desperate Need.” Speaker Jay Goodnough of the Penn- “des perate.” ‘e feel justified in asking this,” he told the directors, “for the reason that over a period of many years Pennsyl- vania has coniributed one-tenth of the tal income of the Federal Govern- ment amounting in round numbers to $276.000,000. “We have received annually in return in the way of subsidies less than 3 per cent of the amount we have con- tributed, being in round numbers $7,000,000 received by the common- wealth in the way of subsidies from the Federal Government. “In asking this allocation, may I point out that we are only asking an gether with interest out of the com- sylvania House claimed the need was | Trading was the most active since | paratively small sums which Pennsyl- diplomatic shake-up | | December. Transactions approximated | 3,500,000 shares, although at the rally’s peak. volume was pouring through the | Stock Exchange machinery at a 6,000,- | | 000-share-a-day rate. Activity lessened | on reactions, which became most pro- | | nounced in the last hour. | OPTIMISM IN STEEL. Two Plants in Ohio to Open—New ; Orders Received. By the Assoclated Press. YOUNGSTOWN, Ohio, August 4.— | Indications tending to bear out steel ex- | | ecutives’ optimism for an upturn include | scheduled resumption of Republic Steel | Corporation’s huge 1,000-ton Trumbull vania receives in the way of subsidies from the Federal Government.” Clyde L. King, secretary of revenue, outlined tax legislation passed or pend- ing in the present special session of the Legislature. “The taxpayers to local governments and the taxpayers who pay taxes into | the State treasury both have a declin- | ing ability to pay,” he said. “From existing tax channels we feel confident that Pennsylvania has done all that can possibly be expected other than certain tax proposals now before the Legislature. “For these reasons we feel that the need of aid from this body as permitted by law is urgent.” Lieut. Gov. Edward C. Shannon, Mrs. Alice Liveright, secretary of welfare; Attorney General William A. Schnader and Senators Baldwin and Scott ac- transfer of | (Continued on Page 2, Column 8) 'BURNING FREIGHTER | MAKES FOR PORT | Wireless Says German Ship, With| = Tpe entirz group which conferred two : . and one-hal ours with the corporation Fire in Hold, Is on Way | directors, however, came out of the to Southport N. C meeting with a feeling that the cor- companied the Governor, Speaker Good- nough and Dr. King to Washington. Pinchot Withholds Comment. Pinchot had “no comment to make” on the refusal. He added that he had | “no comment to make on the Leglsla- | ture.” Immediately after, the confer- peration’s action was far from a refusal of Federal aid. They believed it would | spur the Legisiature to speedy action in By the Associated Press inding up its work, and that the cor- | WILMINGTON, N. C. August 4— |foraiion would be willing to extend aid The German freighter Ronald, en |When that was completed. | route from New Orleans to Hamburg, | State Semator Frank Baldwin of | today wirelessed the U. S. Cutter Mo- g g - L | Potter County. | Finance Committee, said he thought doc here that she was putting in to|the decision made agjcumment of the Southport, near here, to fight a fire in | Legislature next week a certainty. S 8 | “He interpreted the decision to mean er hold. : | the Legislature so far had not “done The Modoc immediately left its berth | its full duty.” He emphasized the “so | here to meet the freighter and assist | far.” | in combating the flames, which were| If the Talbot $12,000,000 direct relief caid to be eating through the mixed | bill were passed and added to the $25.- | cargo. 000,000 bond issue for repayment of | The Ronald sald she was off the | municipal subdivisions for unemploy- North Carolina coast, but failed to give | ment relief, he said, he thought the the exact location or the extent of the | Finance Corporation would receive the fire. | Governor's request for an immediate Southport is about 20 miles from |advance of $10,000.000 more favorably. here and the Modoc expected to be ‘ Dr. Clyde L. King, State secretary of there when the Ronald arrived. The revenue, who told the directors Penn- | wireless messages said the burning ship \ sylvania's tax burden could not be in- | expected to reach the North Carolina creased, sald he thought the decision | port about 3 p.m. ! was justified. 'RUMORS FLOOD WALL STREET ON PRICE-BOLSTERING SCHEMES | | | Industrialists Reported Working on Credit Plan to Speed Buying of Raw Materials. B the Associated Press. | facturers to stock up on raw materials NEW YORK, August 4—Wall Street | at current low prices. was filled with rumor and conjecture | The report also was actively dis- | today over reports of schemes to balster | Scminated that a large speculative pool | commodity prices. i to be managed by a prominent Chicago These rumors have caused some ex- | operator. Copper producers were still citement 1n speculative quarters, in view | S to be considering o markup of the of the sweeping rise in the stock | of 5!, centsa pound, to possibly 7 cents. market. Nevertheless, a considerable| The effort to encourage manufac- element in the financial district views | :{‘_’:’;.‘;"w";’:"p b o "{-":l'_'fir::’l efforts to influence commodity prices | {hat, with a number of staples selllnrz artificially with some skepticism. far below the cost of production, cur- One report was that the Young com- | rent prices must be considered bargains. mittee of industrialists and bankers | While producers’ inventories of raw was being formed in the wheat market, | i recognized as having changed hands legally. Nineteen American Nations joined in expressing the attitude new to Western Hemisphere diplomacy. They hope re- plies to their note will prevent further hostilities in the long dispute. The situation has many earmarks of the Sino-Japanese difficulties in Man- churia. But the note dispatched to Paraguay and Bolivia is considered couched In sironger terms than any sent to China or Japan. Applies Kellogg Pact Idea. The message follows the principles of the Kellogg-Briand pact to outlaw war as an instrument of national policy, applying thém for the first time to this ipart of the world. It says, in part, that “the American Nations * * * will not recognize any territorial arrange- | ment of this controversy, which has not ]been obtained by peaceful means.” Thus should either Paraguay or Bo- livia gain by use of arms, the fruits of conquest would be non-existent to the 19 neutrals. The note was signed here by repre- | sentatives of the United States, Colom- bia, Uruguay, Cuba, Mexico, Peru, Bra- zil.’ Argentina, Chile, Guatemala, Vene- zuela, Haiti, Dominican Republic, Hon- duras, Ecuador, Panema, Nicaragua, | Costa Rica and EI Salvador. Points Way to Peace. | After pointing the way to peace, the | neutrals declared themselves solidly | against future recognition of territorial conquest. Assistant Secretary of State Prancis | White, who signed the note for the United States, sald the Kellogg treaty jand other international peace agree- | ments had not been invoked by the neutrals because in por~gase had any particular treaty been ratified by both disputants. “The note,” he explained, “defines & new peace policy in the New World 1t is a broad statement of principle de- signed to express the united position of American nations against armed force in their own international relations.” Text of Note Sent. The text cf the note to Bolivia and Paraguay follows: “The representatives cf all the Amer- ican republics meeting in Washington, the seat of the neutral commission hav- ing been duly authorized by their re- spective governments, have the honor to make the following declaration to the governments of Bolivia and Paraguay: “Respect for law is a tradition among the American nations who are opposed to force and renounce it both for the solution of their controversies and as an instrument of national policy in their reciprocal relations. They have lcng been the proponents of the dcctrine | that the arrangement of all disputes and conflicts of whatever nature or origin that may arise between them can cnly be sought by peaceful means. Peaceful Solution Possible. “The history of the American nations shows that al their boundary and terri- torial controversies have been arranged by such means. Therefore, the nations of America declare that the Chaco dis- pute is susceptible of a peaceful solution | and they earnestly request Bolivia and Paraguay to submit immediately the so- lution of this controversy to an ar- | rangement by arbitration or by such | other peaceful means as may be accept- | able to both. “As regards the responsibilities which may arise from the various encounters which have occurred from June 15 to | date, they consider that the countries in conflict should present to the neu- tral commission all the documentation which they may consider pertinent and which will be examined by it. They do not doubt that the country which this investigation shows to be the aggressor will desire to give satisfaction to the | one attacked, thus eliminating all mis- understanding between them. “They, furthermore, invite the gov- ernments of Bollvia and Paraguay to (Contirued on Page 2, Columa 6.) FOUR MEN SLAIN IN PRISON BREAK Three Convicts Killed in Battle After One of Their Numbzr Slays Trnsty. By the Assoctatcd Fress TUCKER PRISON FARM, Ark., As- gust, 4—Four convicts were killed and three wounded in a daring break from a prison eamp stockade and a subse- quent’ gun battle between the fugitives and officers todwy. Seven convicts, one of whom killea a trusty serving as a guard at the stew- ade here, were surrounded by officers in a wood 25 miles from the prison and three were shct to death, two were wounded and two others surrendered. R. G. Jones, a trusty, who was blamed by authorities for organizing the flight and killing Else Howell, the trusty serv- ng as & guard, was one of those wcunded. Jones also was blamed for wounding Cecil Allen, another trusty serving as a guard. Howell, a crack rifle shot, was shot to death when he resisted attempts of the escaping convicts to take his rifle. They seized what guns and ammuni- tion they could carry and dismantled 21l other firearms at the camp before fice- ing on horses. Allen was struck over the head with & gun and slightly wounded when he was working on a plan, in co-operation | materials are in the aggregate estimated with the Reconstruction Finance Cor- | at around record levels, manufacturers’ poration, to establish a huge credit, | stocks are said to be fairly low, both of possibly $50,000,000, to encourage manu- | materials and finished gopds. scugnt to foil the escape. Early reports from the officers who took part in the gun fight did not state which cywlcu were Kkilled. A