Evening Star Newspaper, September 29, 1932, Page 17

Washington News T JUDGE TAKES . &P INJUNCTION PLEA UNDER ADVIENENT Justice Peyton Gordon Is Ex- pected to Decide on Case by Tonight. SUSPENSION OF RATE CUT ORDER BY BOARD SOUGHT G. P. Hoover, Counsel for Company, Charges 10 Per Cent Slash Is Equal to Confiscation. Justice Peyton Gordon of District Su- preme Court will decice late today or | tonight whether to stay the order cf the | Public Utilities Commission reducing | telephone bilis by 10 per cent. | Justice Gordon took the cate under advisement this afternoon after hea; arguments on a petition for a temp-s+ Testraining order filed by the Cluca- peake & Potomac Telephone Co. asking that the commission’s order be sus- pended until a petition for a final in- Junction could be heard cn its merits Couns2l for the telephone company \urged Justice Gordon to decide the case today, since the order becomes effective n bills rendered for service after to- rrow. At the session today, George P. Hoo- ver, attorney for the telephone com- pany, argued that the order amounted | 1o a confiscation of his client's property by reducing its earnings to 4.4 per cent on $36,000,000, which he said was the true value of its properties. William A. Roberts, arguing for the Public Utilities Commission, pointed out the commission had found a maximum value of $29,860,000 and said at most the company stood to lose $30,000 psr month for a few months pending the time when the case can be heard on its merits. Mr. Hoover, in a two-hour address, claimed the cut would result in a gross lcss of $415,000 and a net loss of $315, 000 a year, in the face of falling reve- nues. This, he said, was confiscating property without “due |sist entirely of requested old favorites haunts of the men whose pictures were . which is guaranteed to it by the fifth amendment to the Con- stitution. Says 5.9 Per Cent Was Earned. Mr. Hoover said the company is en- titled to earn 7 per cent on a claimed valuation of $36,000,000, but that, in the 12 months ending June 30, last, it had earned only 5.9 per cent, and the 10 per cent cut would reduce this to 4.4 per cent. 1In the first eight months of 1931, the company gained 4,800 new subscribers and in the corresponding eight months of this year it lost 1.369 subscribers, with an accompanying loss in revenue, he said. He also attacked an order issued by the commission shortly after its rate order, in which the company was in- | structed to credit its depreciation re- serve with 5 per cent interest each | year, which would mean approximately $30,000 a month less could be charged as operating expenses. He said this matter was governed by the Interstate Commerce Commission, and if the com- pany obeyed the local commission’s order, it would be subject to penalties imposed by the Interstate Commission. R. A. Van Orsdel and Baxter Milne appeared with Mr. Hoover as lawyers for the company. Ridicules I. C. C. Reference. Mr. Roberts began his argument shortly after noon by stating the de- preciation order would result in no in- | Jury beyond the possible cost of some black ink for the transfer of a set of accounts. He sald Congress had given the local | commission exclusive power in this field, after passing the pertinent sec- tions of the interstate ccmmerce act. Mr. Roberts sald that all the court had before it was the finding of the commission and a group of affidavits from company witnesses, which con- tain matter already carefully considered by the commission in reaching its de- cislon. He said the court ought to give weight to the finding of the com- mission unless the company came for- ward with something much more sub- stantial. He cited numerous decisions to support this point. Objects to Court Action. The commission in its statement yes- terday took the company to task for going to court about the rate reduction and placed the blame for any delay in reducing rates on the company. ‘The statement revealed for the first time that in the preliminary negotia- tions, befcre the case got to public hear- ings, the commission had offered to set up a sliding scale of rates based on an agreed valuation, apparently similar to the one in force until recently governing electric rates. The company declined to compromise. The statement followed one by the company showing a reduction in net revenues of $121,235 in the first eight months of 1932 in comparison with the corresponding 1931 period. The com- mission statement follows: ““The Public Utilities Commission had hoped that the telephone company would comply with the order raducing rates for exchange service by 10 per cent. Instead, the company has seen fit to appeal to the courts, thus starting what may be a long-drawn-out legal bettle, the outcome of which, of cour:e, is problematical. One thing is certain, however: If, as seems probable, the court enjoins the commissicn from enforcing the order, the relief sought for the rate- payers will be long delayed. Believes Cut Justified. “The commission did all in its power to avoid this court proceeding. It be- lieves the telephone company is well managed, that the service given is excel- lent, and we tried cur best, in numercus conferences Wwith the officials of the company, to induce them to consent to a moderate lowering of rates, which we believe to b2 thoroughly justified by the earning record cf the company and byi present economic conditions. “We cited the example of the gas com- panies, which, after similar conferences, did agree to such a rate reduction. We proposed, as an_ alternative, a sliding scale of rates, to be based upon an agreed value of the company’s property, to remain in force for a limited period. “It was attempted to treat this mat- ter as a plain business proposition and to ceal with it in a businesslike man- ner, “The telephone company flatly re- jected every propoeition advanced by the commission and, although the order finally issued is belizved to bz eminently fair to the company, it has choren to resist its enforcement. Te- gretted. “We are still convinced that there eample justification fcr the measure of relief which was crdered, and, further, that this could be granted without detri- ment to the telephone company, which could continue to pay all of its charges, & reasonable dividend, and this without impairing the service, without decreas- ing the number of its employes cr the wages of any employe.” is|ing, was reported improved today at Marshall C. Guthrie, jr., of Western High School, today was named colonel of the Washington High School Cadet Corps. Col. Guthrie succeeds Col. Ches- ter Mcrrill, also of Western, who held the highest office in the corps last year and who this year is & student at American University. The son of Dr. Marshall C. Guthrie | of the United States Public Health Service and Mrs. Guthrie, the new colonel is only 16 years old, ope of the youngest cadets ever to hold that rank. The Guthrie residence is at 15 Taylor street, Chevy Chase, Md. The new colonel attained distinction last year when he received a commis- sion as first lieutenant in his junior year at school. Most cadets get com- missions in their senior years. Young Guthrie entered Western High School from the Opyster elementary school three years ago. In accordance with the usual prac- tice, the colonel's staff will be com- posed of Western High School cadets, since that school provides the highest officer. These three majors will be ap- pointed immediately, Dr. Elmer S. New- ton, principal, said today. Named Colonel of Cadets WESTERN HIGH STUDENT HONORED AT 16. MARSHALL C. GUTHRIE, JR. —Star Staff Photo. ALBUM OF ARTISTS T0 START TONIGHT Community Chest Program to Be Inaugurated Over Radio Station WMAL. The Community Chest “Album of | Artists” program, which this year will feature outstanding musical talent in the Capital, will be inaugurated over radio Station WMAL tonight at 8 o'clock, with the presentation of Mrs. Flora McGill Keefer, distinguished | Washington contralto, assisted by Mar- | garet Arnis at the piano. [ | Artists on tne program, which is :s.mmr to the “Washington's Own | Artists” program given over the same station & year ago, are volunteering | their services to the Community Chest. | Mrs. Keefer's program tonight will con- | and popular numbers. | Will Make Introduction. | Newbold Noyes, Community Chest icampmgn chairman, will introduce C.| | C. Cappel, manager of the Symphony | Orchestra, who will act as master of | ceremonies. ‘The “Album of Artists” program, sponsored by the Community Chest, and for which time is donated by Station WMAL, will be presented every Thurs- | day night during the Winter, from 7:45 | | to 8 o'clock. - Artists scheduled to ap- | pear on the series of programs include: | _Miss Hazel Arth, contralto; Mrs. Ruby | Potter, soprano; Miss Helen Howison, | ! soprano; Mrs. Dorothy Sherman Pier- | son, soprano; Mrs. Ruth Tuckey Shear, | | sopreno; Mrs. Francesa Kasper Law-| Miss Clelia Fioravanu, mc2zzo- | soprano; Earl Carbauh, bariten | Charles Trowbridge Tittman, bass; | John Marville, baritone, and George | Gaul. { son, Acapello Choir to Sing. Groups to be heard include the Aca- pello Choir of First Congregational Church, led by Mrs. Ruby Smith Stahl; | George Washington University _ Glee | Club, led by Dr. Robert Harmon; Wash- ington String Quartet, led by George | F. Gaul; Girls’ Glee Club, led by Mrs. | | Florence Howard, and the Instrumenal | | Trio, led by Mrs. Clara Bernheimer. |~ Among_the instrumentalists to ap- pear will be: Mrs. Mildred Kolb Schulze, piano; Mme. Amelia Cont'i, harpist; uis’ Potter, piano; La Salle Spier, and Miss Katherine Riggs,| 'RANDLE HIGHLANDS NOMINEES SLATED | Adelbert W. Lee Heads List for Election of Citizens’ Association. A new slate of officers, headed by Ad- elbert W. Lee, of 2336 Q street south- | | east, was nominated last night to lead | | ths Randle Highlands Citizens' Associa- ation through the coming year. Proposed by the association's nnmi-‘ nating committee, the new officers will be voted upon at the October meeting. The slate consists of Lee for president; | A. H. Blakesiee, 2220 R_street south- east, for vice president; H. Elmer Mil- ler, 1604 Twenty-second street south- east, incumbent, for secretary; A.Roth, 1535 Twenty-fifth street southeast, for financial secretary, and C. A. Freyman, 2509 Q street southeast, for treasurer. Herbert F. arti, 2207 Naylor road ! southeast. retiring president, and Wil- liam G. Garth, 2415 Q street southeast, were proposed as delegates to the Fed- eration of Citizens’ Associations Two resolutions were adopted—one | asking the Capital Traction Co. to i move its bus stop from in front of the | “stop sige” at Pennsylvania and Min- Inesota avenues southeast to some | point .which will not obstruct motor- ists’ views of the sign and another re- questing the District Highway Depart- ment to set up speed limit signs on Naylor road and Twenty-fifth street southeast to warn drivers to slow down in going down the Naylor road hill. Filling the ravine adjoining the new Randle Highlands School was discussed briefly by members of the association. A recommendation that ashes be used as a filler was opposed by several mem- bers due to unbealthiness, and it was agreed that the District would be asked to fill the ravin ith clean dirt exca- vated from District construction jobs. No definite action toward obtaining such co-operation from the local Gov- s ernment was taken, however. By unanimous agreement of the i Garcen Contest Committee, Willlam M. {Kerm, 2345 R street southeast, was named winner of the United States Bi- centennial Commission’s bronze medal award for the most attractive garden in the Randle Highlands Community. ACCIDENT VICTIM BETTER : Bernard Bradley Was Pinned Un- der Auto Being Repaired. Bernard_ Bradley, 34, of the 1200 block of I street northeast, who was injured yesterday when pinned beneath an automobile on which he was work- | Gallinger Hospital. Bradley was hurt when a jack slipped from under the machine while in an alley in the first block of H street southwest. He was taken to Gallinger Hospital after being treated at Emer- gency. X-ray photographs were to be taken to determine if ? has broken ribs. ‘Washington Resident Also Is Given | aid treatment. PHOTOS PROVIDE HIACKING CLUE U. S. and Maryland Authori- ties Seek Two Identified by Dry Agents. Two men whose photographs have been identified by the prohibjtion agents kidnaped by hi-jackers in Calvert| County, Md., early last Sunday were being sought today by members of the police liquor squad, working in co-opera- tion with the Federal investigators and Maryland authorities. Although the search was centered in Washington, police in all parts of Maryland were on the lookout for them. At the same time Federal agents were pushing their hunt for other members | of the gang of 14 gunmen, running| down every clue available. i Held in Hiding. After a fruitless search of the known | | | i identified, Lieut. George Little, head of the liquor squad, concluded they either had sought refuge in a new hiding place here or had left the District. However, he determined to continue the hunt here until convinced the men were in hiding elsewhere. Meanwhile, two men said to have been identified by the agents still were being held, one at the sixth precinct and the other in Baltimore. Govern- ment warrants charged both men with assault with a deadly weapon, inter- fering with a Federal agent and steal- ing Government property. The suspect held here is Edwin A Mumper, 37, former fourth precinct policeman. The warrant against him was issued in Baltimore yesterday by | United States Commissioner J. Frank Supplee. Lieut. Little sald it was prcb- able Mumper wculd be transferred to Baltimore today or tomorrow. Henry G. Carter, also a Washing- tonian, is the other suspect. Arrested shortly after the hi-jacking, he was| taken to Baltimoee and held in $30,000 bond. Both he and Mumper were identified by the agents, according to Lieut. Little. Boland May Be Freed. Martin Boland, son of a retired po- | liceman, also was arrested in connec- tion with the case, but none of the he WASHINGTON, } announced todey by John McGill, jr. ! |SURGEONS TO DECIDE WAR ON MILK PRICE | INCAPITAL AVOIDED BY DAIRIES’ AGTION Producers in Maryland and Virginia Co-operate in Cutting Supply. 5 PER CENT REDUCTION IN SHIPMENTS EFFECTED Last of Series of Meetings to Be Addressed by Association’s Head | Is Today in Loudoun. ‘The threatened milk price war in Washingtcen has been averted definitely through the co-operation of mik pro- ducers in Maryland and Virginia, it was secretary-treasurer cf the Maryland and | Virginia Milk Producers’ Association, which controls 94 per cent of the city's milk supply. Full support of producers in the two nearby States has been atsured as a result of & warning sounded in a series of farmers’ meetings by Mr. McGill and Frank S. Walker, president cf the asso- ciation. The last of the meetings wes :;) be held today in Loudoun County, a. A price war, such as has disrupted the dairy industry in a number of other sections, had been foreseen with the rapid increase in overproduction of milk. | The surplus in Washingtcn hzs been cut | down within the past few days by acticn of the dairy farmers in curtailing ship- | ments 5 per cent, in_ accordance with | recommendations of the producers’ or- ganization. The milk reduction was effected at the source of supply, Mr. McGill said today. By reducing rations of the cows, he explained, mi'k production per herd sufficient to meet the emergency has resulted. The cows suffer no harm by this process, he said, and the farmers | save on feed coits. A price war wculd | have diverted milk to more profitable markets, with resultant danger of a milk | shortage in the Capital, it was claimed. | Mr. McGill addressed dairy farmers | iof Falrfax County at a meeting last | night in Fairfax and he will address | simiar groups today &t Ashburn and | Purcellville in Loudoun County. The Ashburn meeting was to be heid this | afterncon and the Purcellville meeting toright. Efforts of the assoclation to it;:;uze the dairy industry will be out- FETE OF ATKINSON| | Psychiatrists to Report on Condi- tien of Policeman Who Seized Bus. The future status of Policeman Wil- liam E. Atkinson, ninth precinct, who was taken to Gallinger Hospital for mental observation after firing six shots at bystanders Tuesday night, will hinge on the decision of the Board of Police Surgeons, after a report has been made to it by psychiatrists, Police Surgeon John A. Reed said today. Atkinson is under examination by Gallinger psychiatrists. Their report agents was able to identify him. Lieut. Little said he probabty would be re- leased. A colored man, arrested yesterday | near his home in Calvert County, wes ' expected to be cuestioned regarding the | hi-jacking, although the liquor charges | on ‘which he was picked up were placed | against him some time ago. It was thought the prisoner, being a resident of the county in which the hi-jacking occurred, might be able to throw some light on the case. He is being held at the Prince Georges County Jail, Upper Marlboro. The fact the hi-jackers were reported to have been armed with submachine guns caused agents of the Bureau of Investigation, Department of Justice, as well as Baltimore police, to push their inquiry into the theft of two automatic rifles ‘stolen from the 5th Regiment Armory, Baltimore, last August. At the time of the theft, Capt. Wil- liam C. Purnell, Maryland National Guard, in whose office the guns were kept, notified Prohibition Director Amos W. W. Woodcock, expressing fear that the guns might find their way into the | hands of Southern Maryland rum runners. MAN WHO SHOT SPOUSE IN ARM GETS 3 YEARS | Sentence for Rum in Faugquier Court. Leon Reid, 24, 138 Q street, arrested | near Warrenton, Va., Saturday after | he had shot his wife in the arm, plead- | ed guilty to charges of felonious as- sault yesterday and was sentenced to three years in the penitentiary. He was tried also for transporting a small | amount of liquor, fined $50 and sen- tenced to 30 days in jail. Reid, who, police say, was employed | by an auto supply company in the 500 | block of New Jersey avenue, became enraged when his wife, Mrs. Una De- lores Reid, 19, accused him of bemng drunk and took over the wheel of their car. He climbed into the rear seat and opened fire with a large caliber pistol. One of the bullets struck Mrs. Reid's arm. Mrs. Reid, police say, pushed her husband from the machine after the shooting, and drove to a nearby farm. where she received flrst-‘ An immediate indictment was ob-| tained in the case, which yesterday was | presented for trial before Judge J. R. H. Alexander, in the Fauquicr County Cir- cuit Court. A small quantity of an in- is to be made to the police surgeons, who are expected o make recom- mendations as to whether his mental condition would warrant him con- tinuing as a policeman, Dr. Reed in- dicated. Atkinson was overpowered by third precinct police and tagken to the hos- pital after he had tried to commandeer a Washington Railway & Electric Co. bus at Nineteenth street and Pennsyl- vania avenue to take him to George- town. When the bus driver refused to comply, Atkinson herded him and several passengers into a taxicab, later firing several wild shots at them. REPORT SHOWS CONDITION OF DONOVAN UNCHANGED Local Sports Promoter Critically I11 in New Jersey Hospital Following Accident. ‘The condition of Patsy Donovan Koontz, better known as Patsy Donovan, Washington sports promoter and man- when the car in which he was riding collided with a truck near New Bruns- wick, N J., has shown no improvement, it was said last night at Middlesex General Hospital, New Brunswick. It was said by police after the crash that one of Donovan’s hands might have to be amputated. The operation had not been performer last night, hos- pital attaches said. Donovan was in a car with E. J. Mc- Carthy, Benjamin Ladis and James E. sports circles. McCarthy was said to be in “good” condition at Perth Amboy General Hospital. where he was taken. Ladis was only slightly hurt,.and Con- nell escaped injury. Raritan Township police sald they were unable to determine the cause of the accident. CENTERS TO .OPEN SEASON Dances Will Feature Programs of Two Communities. ‘The Fall and Winter season of the District of Columbia Community Cen- ter Department of the Public Schools will open Saturday. with community dances at two of the centers. Other Bctl;’itiefi will be launched early next week. Washington Center In Eastern High toxicant found in Reid’s pocket formed the basis of the liquor charge. PRINCE GEORGES POLICE CONTRIBUTE TO CHARITY Empty Approximately 200 Gallons of Liquor and Turn Jars Over to Welfare Body. By a Staff Corresponcent of The Star. HYATTSVILLE, Md., Septembar 28.— Prince Georges County pol 'ilnnd con- stables are fast beccming the leading contributors to the Associated Charities of Hyattsville and vicinity. Yesterday the organization received several hundred fruilt jars as a result of police activity. After police emptied approximately 200 gallons of liquors they turned the jars over to Mrs. Morris, to be used to preserve fruit for the needy. School and at the kington Com- munity Center in the Langley Junior High School, at 8:30 p.m. Saturday. Practically all of the centers will be in operation next week. BANQUET IS TONIGHT International Beauty and Barber Supply Dealers to Dance. “The annual convention banquet of the Infernational Beauty and B: Supply Dealers’ tonight at Wardman Park Hotel with 500 delegates expected to attend. The visitors were greeted at the White House yesterday by President Hoover. Among hostesses at a luncheon yester- day for ladies attending the convention was Mrs. John W} of Washington. Tonight’s banquet will be followed by dancing, and breakfast will be served shortly after mi The conven- tion will adjourn 3 ager, who was critically hurt Tuesday | Connell, all prominent in Washington | Dances will be held at the mtl Associztion will be held ! Government Plant on 24-Hour Day TREASURY UNIT RUSHES BLUE PRINTS FOR BUILDING PROGRAM. RELIEF MEASURES HELD A TOBANKS Treasury Undersecretary Speaks Before Morris Plan Bankers. The Government's emergency relief measures were described as giving the finzncial .institutions a helping hand and no® designed to “constrain or sup- plant them” in a speech by Undersec- rotary of the Treasury Arthur A. Bal- lantine before the Morris Plan Bankers' Association meeting today at the Shore- ham Hotel. Admitting the measures designed to alleviate the present credit situation in this country put the Government into the banking business “in a limited | sense,” Mr. Ballantine added that “no agency other than the Federal Govern- ment could render the powerful help | needed at this time.” ‘ Explains Aim of Plan. | “The aim of the credit utilization | plan,” the Treasury official said, “has | been to preserve end reinvigorate our | finzncial and industrial structure, to re- store to it the strength by which it in the past has sustained our people in the highest standard of living that the world | has ever known. | “It s essential that these protective | activities of the Government should | continue to be administered in accord- ance with that vision. They should not be used as an opening wedge for regi- menting, under Government discipline, the economic life of the country. “In this period of trial you have seen the credit and strength of the Federal | Government maintained and applied to the preservation of the general eco- nomic life. The preservation of that power demands constant watchfulness and often sacrifice on the part of the individual citizen. That power, widely utilized, has carried us to firmer ground and nearer to the time of full recovery of normal financial and economic processes.” As to economy in the Federal Gov- ernment, Mr. Ballantine saw more work to be done, declaring “the fight is by n2> means over, for while we are encour- aged by the substantial gains made, we are far short of the ultimate objective.” Fight on Bonus “Vital.” The fight egainst cash paymlent of the soldiers’ bonus, he said, is “vital” to insure sound finance. Reviewing the work of the Recon- struction Finance Corporation, the tax act and the Glass-Stegall act, Mr. Bal- antine said: « . “The succes of that effort is being re- flected today in increased bank reserves, larger bank deposits, the return of gold and currency, increased prices of com- modities and securities and, beginning in certain lines, an upturn of employ- ment and business activity.” {WOMEN ORGANIZED T0 AID REPUBLICANS Division of Hoover and Curtis Club to Be Headed by Mrs. Harry K. Daugherty. | of the Hoover and Curtis Campaign {Club here was effected yesterday, i | was announced today by Mrs. Harry K. { campaign Aiding Mrs. follewing group captains: Mrs. Harry E. Hull, Mrs. W. W. Husband, Mrs. L. J. Pettijohn, Mrs. N. H. Allen, Mrs. John W. Frizzell, Mrs. T. Kinsey Car- penter, Mrs. Robert J. Bates, Mr Henry Alberts, Mrs. Charles G. Alge: and Mrs. Harley P. Wilson. Headquarters will be maintained in the willard Hotel and at the National Capital Republican Club at Sixteenth street and Scott Circle, with a group of Republican women on duty at both places every day to assist absentee voters in preparing their ballots and to dis- tribute Republican campaign literature. Mrs. Virginia White Speel, Republi- can national committeewoman for the District, is sponsoring the work. P WASHINGTON KIWANIANS VISIT CLUB AT TOWSON Special Dispatch to The Star. TOWSON, Md., September 29.—Four members of the Washington Kiwanis Club, headed by Edwin F. Hill, presi- dent, visited the local club last night. This was an_ educational meeting, conducted by Mr. Hill, who is also chairman of Kiwanis education for the Capital district. He emphasized to the members the value of having a thor- of Republican Women and head of the organization. ! 1 arber | ough knowledge of the aims and ideals of the organization, so that they could give the best service to the community of which their ciub is a part. A cordial invitation was issued to the Towson club members to visit Wash- ington during the fourteenth annual convention of the Capital district, Oc- tober 27, 28 and 29. Others present from the Washington club were George H. Winslow, chairman of the Interclub Relations Committes; John 8. Bennett and Virgil O. Barnard. | Organizati f the woman’ division " e Hoover 2 Terms Are Presented to Pub- Daugherty, vice president of the League | Daugherty will be the | bening Stap WITH SUNDAY MORNING EDITION D. C., THURSDAY, SEPTEMBER 29, 1932. As the Geve: Federal bt seen here in top pic the new p: foreman cf the dup coating machine, and E. L. Craig, opera HILE many parts of the| Government are reducing | forces and cutput of mate- | rial, under the ecozomy pro- | gram, up on the top floor of the Treasury Department the duplicat- ing gallery of the office of supervising architect is busy on a schedule of 24 rours a day, with three shifts of em- Lk ployes turning cut biue prints to keep up with the demand in ke Federal | campaign to build needed public build- | ings, and provide employment. In the cuplicating gallery raw mate- rials are turned into completed sets of blue prints, ready for the contractors. The blue prints are used both for com- struction after contracts are awarded. | The processes in the Government's | gallery include the sensitizing of the paper by placing a chemical “coating,” to make it ready for “blueprinting.” Rolls of paper are fed through the | paper-coating machine, which give it a | sensitive greenish tint of chemicals. This paper then is run through the | blueprinting machines, in another part | cf the gallery, where tracings are thus | duplicated in blue and white for use by | contractors and the Government. There | are three machines coating paper and to reliev Treasu puting bids on new jobs and for con-| Society and General SALE OF WARDMAN SECURITIES PROBED BY WESTERN JURY Handling of $11,000,000 Re- financing Bonds Investi- gated at Milwaukee. JUSTICE DEPARTMENT MEN MAP OUT ACTION Apartments and Hotels in Hands of Receivers Following Col- lapse of Issue. Department of Justice representatives today were preparing to present evi- dence of alleged irregularities in con- nection with the sale of the so-called Wardman refinancing bond issue, based on 11 large properties here, to a Fed- eral grand jury in Milwaukee. The bond issue aggregated $13.500.- 000, of which approximately $11,000,000 of ‘bonds actually were sold through Halsey, Steuart & Co. The great ma- jority of these bonds were sold through the mails and it is expected the Gov- ernment prosecutors will seck a mail fraud indictment. It was understcod the decision to seek the indictment in Milwaukee grew out of the fact a large number of the bonds were sold there. Forrest A. Harness, special Assistant Attorney General, and E. J. Armbruster, accountant attached to the Bureau of Investigation, conferred with Federal ! officials in Chicago yesterday before go- ing to Milwaukee. Syndicate Handled Sale. Halsey, Stuart & Co. maintain an office in Chicago. They sold the bonds with the aid of a syndicate including A. B. Leach & Co., Wardman Construc- tion Co, Wardman Real Properties, Roger Caldwell of New York, Willlam R. Compton Co., and Hambleton & Co. The bonds were secured by a first and refunding mortgage on the Wardman Park Hotel, the addition thereto, the Carlton Hotel, the Boulevard Apart- ments, Cathedral, north and center; the Chastleton Apartments. the High- lands Apartment Hotel, Stoneleigh Court, 2700 Connecticut avenue, the De- partment of Justice Building and the { four large apartment buildings at Con- necticut avenue and Davenport street. The properties now are in the hands of receivers appointed by the District Supreme Court following a collapse of the bond issue, March 2, 1931. Unable to Meet Interest. The receivers were appointed after the owning corporations announced they would be unable to meet the in- terest payment due March 1, 1931. The announcement was made by counsel for the Hotels Management and Securities Corporation, which controlled stock of the Wardman Realty & Construction Co.. which, in _turn, controlled the | Wardman Real Estate Properties, Inc, i the_title holders. unemployment and provide needed v Department duplicating gallery i: and night. tor is shown v e which v prints for while belcw arc ting sensitized p: r of the machine at the h | —Star Staff Photos. tol The output is about 400,000 separate | prints a month, with each print averag- ing about 7 square feet. This makes the output more than 2,000,000 square | feet a month. Blue prints are turned out in sets, frem 150 to ets for eech res, however, e Commis- ! sion and Dep: nt of Labor Build- ings in this city about 300 scts were made. | ‘The blue prints loaned to bidders are | | returned when a contract is awarded, | |and the prints then turned over to the Government and the contractor who is to construct the building. In the duplicating gallery there is also in use a gelatin process for the | purpose of duplicating drawings on (linen. The process includes the use of a fine layer of gelatin, chilled by a refrigeration plant, etched by acid and |then printed by the use of ink in a| kind of engraving-printing process. ‘The three shifts c¢f men work from 8 |am. to 3:30 p.m., from 4 to 11:30 p.m. |and from midnight to 7:30 a.m., leaving | | half-hour intervals between for cooling ! |and repair ef the machines. There are | 15 men on a shift, making a total of 45, under direction of the fcreman, O. T. Banner. | five machines making blueprints. TRUCE SUBMITTED INRENTED GAB WAR lic Utilities Board Official for Consideration. | ity Cab Corporation, yesterday sub- mitted the terms of a truce in the con- Commission and the rental taxicab con- cerns, to William A. Roberts, counsel for the commission. According to the Jacobson plan, the cab company would agree to become employer of all of its drivers, paying them 25 per cent of all fares collected up to $3.75 per day and 100 per cent of all collections above this amount. ‘The company would take out workmen's compensation insurance on its drivers. | No driver would be deprived of his| cab for failure to turn in $3.75 in any| one day, out the collection would be | averaged for short periods, perhaps of a week each. Drivers who maintain an average of $3.75 a day for a year would be given their cab as a bonus, but the company would retain legal title to the cab meanwhile. This was offered to meet the require- ments of the commission’s order that all cabs be operated by their owners or agents of the owners. Under the pre- vious system, it is said, the cab drivers of rental taxi concerns were lessees of the cabs, but not agents of the owners. The result of this wes that persons in- jured by rented cabs were confined to their legal remedies against the driver of the cab, and had none against the lessor companies, The terms of this agreement will be submitted to the commission for ap- proval. Recently seven prosecutions of rental cab drivers were made by Mr. cab situation. There are many other rental taxi concerns in the field in addition to the City Cab tion, but what attl- tude the; take is sot now known. | | Albert W. Jacobson, attorney for the troversy between the Public Utilities | | “SAVEALIFE” PLAN URGED FOR CAPITAL President of Merchants and | Manufacturers’ Body Would Join Neighboring States. ‘The District Commissioners were urged today by Mark Landburgh, presi- | dent of the Merchants’ and Manutac- turers Association,, to join with Mary- land and Virginia in the “save-a-life” campaign to be conducted in those States October 15 to December 1. In a letter to the city heads Mr. Lansburgh pointed out such a cam- paign has been conducted in Maryland during the past three years and has resulted in saving many lives through the prevention of accidents caused by defective brakes, lights and steering equipment of automobiles. As Virginia is planning to conduct a similar check-up of automobiles this year and will require all automobiles to believes Washington motorists would be saved possible inconvenience if a simi- lar campaign were conducted in Wash- ington at the same time. Mr. Lansburgh said the board of gov- ernors of the association had a resolution a year ago favo: an an- nual inspection of motor vehicles in the District as a safety measure, and again were bringing the matter to the atten- tion of the Commissioners, expressing the belief Washington should conduct such a campaign this year. PLAN G. 0. P. CARNIVAL A Hoover-Curtis carnival is being f | planned by the Young Republican Club and the Young Negro Republican League Roberts in order to clear up the rental |to be staged Hallowe P Francis Wells, president of the Hoover- Curtis League, who is in New York at this time conferring on campaign mat- ters at the Central Republican Club. . be inspected, Mr. Lansburgh said he | pg; f | Saturday, in ‘The $11,000,000 issue of first and re- funding mortgage 6'. per cent serial gold bonds was made in September, 1928, when the syndicate of bond houses published widely advertisements con- cerning the huge financial operation. In these adverticements, the state- ment of the bond houses carried the follbwing statement as to valuation of the properties securing the issue: “Based on reproduction cost new, less depreciation, independent engineers re- port a valuation of $28,887,146 (in- cluding land, buildings, furniture, fur- nishings and equipment and a valu- ation of $2,153,687 for Wardman Park Hotel addition when completed, but ex- clusive of furnishings to be installed therein). These bonds, tcgether with the total underlying mortgages to be outstanding, will represent 55 per cent of this valuation.” Sharp criticism of alleged inflated appraisals of some of the properties in- cluded in this refinancing bond issue, however, were contained in the report made later by the Blaine Subcom- mittee of the Senate, which made an extensive investigation of real estate conditions here. A number of the properties involved in the bond issue have been sold since. TWO ROBBED OF AUTOS;" ONE HOLD-UP THWARTED Man and Woman Companion Are Forced From Car in Park, Relieved of $8. Two men were robbed of cash and their automobiles last night and another robbery was thwarted early today when the intended victim called for help after being struck over the head by one of two colored men who had hidden themselves in his truck. Paul B. Bowdler of the 800 block of B street southeast and a young wom- an companion were forced from their automobile while parked in Potomac Park last night and robbed of $8 in cash by two men who drove away in the car. Dr. Thomas J. Howerton of the 4000 block of Connecticut avenue was held up by two men last night when he stopped for a traffic light at Connecti- cut avenue and Calvert street and was robbed of $9 in cash and his automobile after they had driven to a point in the rear of Trinity College. Louis Brooks of the 1800 block of Massachusetts avenue southeast was hit over the head by a colored man early today as he boarded his truck to drive to market. His assailant fled. Both men were hidden in the truck, Brooks told police. INDIAN HEAD P.-T. A. COMMITTEES REPORT Speclal Dispatch to The Star. INDIAN HEAD, Md., September 29.— The Lackey High School Parent-Teach- er Association met in the school, when reports from the various committees were heard and a few small bills ordered id. ‘The president, B. W. Downs, an- nounced the following committee chair- men: Program—Mrs. 8. G. Cooke; Membership, Mrs. Anna P. Posey; Hos- pitality, Mrs. W. J. Roach; Publicity, T. Bayard Ayers; Finance, A. D. Willroy; Publications—Mrs. Mildred S. Rice, and Children’s Reading--Mrs. H. C. Ivins. The program, which followed the business meeting, was featured by a talk by Comdr. Lee Payne Johnson, U. S. N.; a narrative report of Summer school activities by Mrs. George Ger- ing and vocal selections by Mrs. T. F. Downs and Waldo C. Griffin. LT TR Retired Employes to Meet. ‘The National Association of Retired Federal Employes will meet at 2 p.m. Room 23 of the Natural History Building of the National Mu- seum, it was announced wd:gn John M. Kline president and J¢ Clagett Proctor secretary.