Evening Star Newspaper, January 13, 1933, Page 2

COASD w¥s VETERANS' FIGURES HELD EXAGGERATED Hines Ordered to Eliminate Overestimates, Walsh Tells Committee. By the Assoclated Press. A charge that Frank T. Hines, vet- erans’ administrator, “grossly exag- gerated” some estimates of future vet- erans’ expenditures was put before the Joint Congressional Veterans Committee today by Senator Walsh, Democrat; of Massachusetts, a member. Walsh sald the exaggeration “in one case amounted to $1,500,000,000,” but #s Hines gave the figures to the com- mittee in an executive session he de- clined to say definitely what item was involved. New Figures Prepared. It was indicated, however, that Hines had estimated the peak of expenditures for World War veterans wculd reach approximately $3,000,000,000 a year within the next 15 years, and that he had subsequently told Walsh, in answer to a question of the Senator some days later, that this peak would be around $1.500,000,000. Hines now is prepariny Waw. said, a new set cf figures “that we can stand on." The committes heard today more spokesmen for Spanish War soldiers in plcas against reducing their pension payments. Rufus E. Foster of New Orleans, United States Circuit Cout§ judge, and william J. Otjen of Enid Oklahoma, United Spanish War Veteran com- mander in chief, appeared. Dislikes Being Goats. “If a 10 per cent cut is applied to everybody,” Foster said, “we'll accept without & whimper. But if we're to be made the goats and no one else reduced, naturaily we'll resent it.” Chairman McDuffie, D.mocrat, of Alabama teld him the cordmittee had no intention of making “a gvat of any- body” in its recommendations. Otjen said totally disabled veterans of the war of 1898 got a $72 monthly ension, while Civil War veterans in ike cirourpstances get 8100. “If you should wmy to him (the Spanish-American r veteran) a 10 THE EVENING STAR. WASHINGTON; D. C., FRIDAY, JANUARY 13, 1933. « Text of Veto Message ment Because They President Cites Danger in Philippine Independence. Does Not Believe Islands Ready for Self-Govern- Could Not Maintain Order and Institutions. (Continued From First Page.) of intermediate government, the powers of limited centrol over legislation (by the President), of judicial review in cer- tain cases (by the United States Su- preme Court), of supervision of foreign | affairs and of military occupation. Im- migration is regulated and during the same period certain duty-free imports !into the United States are curtailed to !specified quotas. ‘The intermediate gov- ernment is to levy export taxes. (o in- i crease fiom an initial charge of 5 per cent in the sixth year of that govern- ment 1025 per eont in the tenth year. Complete independence is autcmatically established in the eleventl year after the inauguration of the intermediate government, and all free trade between the Philippine Islands and the United States is then terminated, unless some other understanding is arrived at by a trade conference, “The United States re- tains, after the establishment of inde- pendence, the right to maintain military and naval stations in the Philippine Islands, and the bill calls for an effort safeguard the future of the Islands by securing international neutralization. “I am returning this bill because consider that it is subject to the most sericus objections. In the statement { which follows, I do not enter upon {many secondary criticisms, but confine {myself to the broader aspects of the subject, which, in any event, must domi- nate conclusions as to rightful action. Economic and Social Consequences. During the period of intermediate government prior to complete independ- ence, not alone the internal and ex- ternal political relations of the Philip- pine people must be adjusted, but they must adjust their economic life to the complete abrogation of the present free trade association with the United ! States. The period for such adjust- ment in this act is too short, too vio- lent. These adjustments will not be confined to the period after independ- ence. On the contrary, these reac- tions will begin much before that, for people do not walt to adjust their af- fairs until after & known .certainty. They discount and prepare in advance. To grasp these implications, -we. must consider what is proposed at the end of the 10-year period. The free entry of Philippine products into “the United States, that is 80 per cent of their for- eign market, is to cease at that time, on the part of the United States to| & per cent cut, picture the condition con- {or at best be subject to an indefinite frenting him,” Otjen said, “You could | negotiation. Unfortunately for ~these not in justice to these men say any cut| paople their economic life today, and remarked that both figures relate to the | expenses of the forces actually in the | Islands and do not include the very gemnent potential protection afforded | '0¥ the United States. It can scarcely | be expected that the Philippine Islands | will be able’ to increase their revenues | | by 36 or even 28 per cent to provide the | force necessary for maintaining internal | order and the minimum of external de- | | fense, even viere np internal economic | degeneration anticipated. They could only do so at & sacrifice of a large part | of their educational aud public im- provements. External Dangers. “The Philippines include, in terms of | comparison with their neighboring Ori- |ental countries, large areas of unde- veloped resources. The pressures of those immense neighbor revulluom for peaceful infiltration or forceable entry into this area are most potent. Many of these races are more devoted to com- mercial activities than the population of the Islands and the infiltration is constant and fraught with friction. | Nor has the spirit of imperialism and | the exploitation of peoples by other races departed from the earth. After | | the establishment of independence the | | Filipino people alone will be helpless to | prevent such infiltration or invasion. | Their problem is infinitely different | from that of Cuba or other nations in the Western Hemisphere. Moreover, the political dangers of the situation are greatly increased by the present political instability in the Orient. The impact of Western ideas upon Oriental systems of culture and government has created a profound ferment among this half of the popula- tion of the world. Our own future and the future of the Filipino people, both in maintenance of peace and the de- velopment of our own econgmic life and trade, are deeply involved. “Today the picture is chaotic. It is impossible to see what the next two de- cades may bring. It is a certainty that at the end of such & period we can see more clearly and the Philippine peo- ple can see more clearly the forces which are formulating. It would be the part of common caution upon their own behalf and both generosity and eaution in our own part that final de- termination as to the nature of our re- lations should be deferred and that both of us should take this momentous de- | cision after a much longer period than | two years. When the Philippine people | vote ‘within two years upon a constitu- tion they take the irrevocable step of | the entire military and naval powers | — | United States Army and Navy. | and the PRESIDENT VETOES ISLAND AUTONOMY House Primed for Attempt to Override Rejection of Philippine Bill. __(Continged From First Page) over the Islands as a conquest but to permit them to establish a government. “I have visited the islands and stud- ied the situation and I have found that the only selfish interests are the Amer- fcans in the Philippine Islands in business and the interests here in this country that control that business. | “They do not want indepsndence in| 15 years. They do not want it ever. | he other selfish interests are the They |do not want us to leave the islands | | because they do not want to give up the service in them. “It was the Army and the Navy that influenced the Secretary of War and the Secretary of the Navy, and these two cabinet officers did more (o influence President Hoover's decision than any one else. “We promised the islands independ- ence when they became able to organ- ize and maintain a stable government. Their government is as stable as many of those in larger countries.” Some of the arguments given by Mr. Hoover for disapproving the bill fol- low: 1. The Philippines economically are | “absolutely dependent upon \hllvr' favored trade with the United States, riod during which this would be whittled down and finally shut off is “too short, too violent.” 3. Without favored entrance to American markets many Philippine in- dustries could not compete with nearby lower costs L of living, leading eventually to a flight of cap- ital, diminishing tax revenues and an unbalanced budget. No Domestic Protection. 3. American agriculture would be given “no protection of any kind” dur- ing the first two years, and during the l:fiuwin( five would have “no effective protection.” 4. The civil authority of the Unitsd States in the islands would be broug.:t ' “to a point of practical impotence,” b . with the American flag still flying wo. .d be “faced with the likelihood of he.ing to employ military measures to main- tain order.” | 5, With the non-Christian population | opposed to the controlling group, yet | constituting a majority of the tot population, “the maintenance of orde TOKID TROOPS TAKE TOWN ON INVASION Chinese Driven Out of Yun- ganpao on Japanese March | Through Jehol. By the Associated Press. CHINCHOW, Manchuria, January 13. —Japanese forces were reported today in control of another strategic town in | Southeast Jehol as they pushed their | lines farther into the ancient Chinese province. Japanese land and air forces turned their attack upon Yunganpao, about 150 miles southwest of here, yesterday, and | claimed & swift and decisive victory | against & large force of Chinese de- fenders. Bombing planes laid siege to the town to aid the advance of a column of Japanese cavalry. Japanese sources said the Chinese troops were driven in hasty retreat. Reports were received at the Japanese military base here that the town was a stronghold of the Chinese commander, Cheng Kuei-Lin. May Cut Off Chinese. ‘The move was expected to strengthen the Japanese attempt to shut off Chinese troops in Jehol from possible reinforce- ments from south of the Great Wall over the coast level routes. ‘The Japanese army, which began ac- tivities in that section with the occu- pation of Shanhalkwan, where the Great Wall tumbles down to the ses, g0, Was carrying its advance from there along the Jehol- Manchuria border. Following occupa- tion of through the wall at Chiumenkow, 12 miles north of Shan- haikwan, on Tuesday, the Japanese force pushed northeastward to Yun- §ADPAO. Meanwhile, Japanese forces in the north and east of Jehol continued move- ments in the direction of Tungliao. Preeszing weather was hampering activi- ties in that region, but the Japanese were bent upon anticipating what was described as ‘“ralds” planned by the Chinese on railroad centers. Resistance Expected. Japanese estimated there were 130,- 000 Chinese troops in Jehol. About 10.- 000 got through the passes at Chiumen- kow, sent north under orders of Mar- shal Chang Hsiao-Liang, before the apanees closed that pass. A large part Y. W. C. A. Girls to Give Play “ROMANCE HUNTERS” SCHEDULED TOMORROW, ‘Miss Edith Ray Sparling (standing) and Miss Betty Owens are seen here participating in final rehearsals for “The Romance Hunters,” which will be presented tomorrow by the Kamp Kahlert Kouncil Players in Barker Hall of the Y. W. C. A. Miss Sparling plays Jim Harrison and Miss Owens takes the role of Margaret Berry in the production. —Photo by Louden. Pope Gives Cath — pRERS ONCIER SAFE STOCK LAW Vatican Regime| Senators, Ending Kreuger In- quiry, Hear Suggested Public Protection. Commission Presided Over by Nephew Takes Charge. By the Associated Press. ABATEMENT SCORED FOR MILLS ESTATE Norris Urges Congressional Check on All Sums Ex- ceeding $5,000. (Prom the 5:30 Edition of Yesterday's Star.) By the Associated Press. Asserting that Secretary Mills or his appointees apparently approved a tax abatement of $5,869,951 to the estate of Mr. Mills' father, Senator Norris, Re- publican, of Nebraska, in the Senate to- day called for a change in the law gov- erning tax refunds. Norris brought up the matter as the Senate considered a measure proposed by Senator McKellar, Democrat, of Tennessee, under which tax refunds of more than $5,000 would be passed upon by the Joint Congressional Com- mittee on Internal Revenue Taxation. “There may be nothing wrong with this transaction,” said Norris as lse read & newspaper account of the abatement. “I.am not charging that by any means.” Senator Hale, Republican, of Maine, quoted from a memorandum of the Treasury Department explaining the transaction, which in substance was that the bulk of the abatement in- volved transfers made by the senior Mills before his death. ‘To my mind this is no explanation,” Norris countered. “It is a memorandum signed by the acting deputy commis- sioner (of internal revenue), one of the under officials of the department. “Who made the investigation?” he ed. “An a] itee of the man who has & personal interest in the case investi- igated it.” ' McKellar, Democrat of Tennessee, re- marked the matter “needed passing on by some one with an impartial stand- point,” and Senator Barkley, Demo- crat, of Kentucky, said he d like to know whether the application for abate- ment and the investigation were made before or after Mills became Secretary of the Treasury. THOMAS RESUMES FILIBUSTER AGAINST BANKING MEASURE f the Chinese force in the province was under Tang Yu-Lin, head of the special administrative regime in the in this considerable element” would be | more difficult than at present. 6. R.F.C. COUCH SAYS IS AIDING THOUSANDS Deolares Use of Money in Rural Areas for Work Relief Is Most Satisfactory Plan. By the Associated Press, Work has been given to thousands of (of the Islands endan men and business conditions have been beéttered in many ¢ommunities through relief loans granted by the Reconstrue- tion Pinance Corporation, Harvey Couch, a director of the corporation, declared in an address here last night under hip of the American Le- gion National ployment Commis- Mr. Couch outlined to members of commission, who are seekin, i the stimulate employment, the steps which have been taken to provide relief for the needy. “In the metropolitan centers” he said, “the relief money frequently is portioned out to families in destitute circumstances without any demand ‘whatever being made on them. In the less thickly settled communities the mvlag:y is used for what is termed ‘work reliet” “The latter plan is far more satis- factory and is more generally followed if conditions permit. Reconstruction Finance Corporation money is being used in many States to put men to work cleaning up vacant lots, dressing up parks, repairing streets and other odds and ends of rehabilitation, which normally. would not be attended to. “Men who really want to work are far happier receiving even a small wage and working only a few hours per week than receiving a dole from Gov- emment.” 2 AL ROOSEVELT URGED TO NAME LIBERAL ATTORNEY GENERAL (Continued From Pirst Page.) which Mr. Roosevelt faces. not, concerned especially over the selec- tion of a Secretary of State, or even of 2 Secretary of the Treasury. Conserva- tive Democrats in those offices would not be frowned upon particularly. But if the President-elect appoints an At- torney General of conservative leanings. 1t will be just too bad, the progressives say. Great Problems Loom. “There are great questions of public policy relating to water power, the utilities and combinations of industry and wealth that are bound to come up for consideration in the early future,” said one progressive Senator today. “These questions will come in legal form before the Department of Justice and if its head is inclined to side with the power interests rather than with the people, it will be most disap- pointing.” 1If the progressives on the one hand are prepared to fight for a progressive Attorney General, the conservatives and the power interests on the other are no less determined that the President- eleoy shall pick & man to their liking to head the Department of Justice. It jooks as though Mr. Roosevelt would be pulled and hauled vigorously in this matter of the selection of an At- torney General, unless he takes the bull by the horns and scttles the mat- ter to his own satisfaction without con- sulting either side While it has generally been reported that Mr. Roosevelt would like to have Senator Walsh of Montana in his cab- inet as Atlorney General. or even as Secretary of State, it s exceedingly doubtful that Senator Walsh can be prevailed upon to accept_appointment, according to his friends. His long serv- ice in the Senate and his independence They are | for many years to come, is absolutely dependent “upon _their favored trade with the United States. Many of their {ndustries ecannot compete with the lower lhhdlll';il :fd hvh:g and lu!u in other tropical a T coun- tries, exugn by virtue of their favored entrance to our markets. Lands now employed in these products must be abandoned or alternatively all real wages and standards of living and all Jand values must be reduced to the level of other competing countries. Consequently, capital invested in large industries, the security for mortgages held by -their banks, their insurance companies, their other institutions must be greatly reduced, the financial system red, a flight of capital must ensue, the ability of the people to pay taxes undermined, government revenues diminished, and its ability to maintain its obligations and to maintain public order will be weakened. The government already has difficulty balan its budget, and this difficulty will m intensified. Sees Inevitable Difficulties. Under these = eircumsiances they must inevitably and soon greatly di- minish & large part of their generous support to schools, health and roads. The American Government will be faced after projection of these events with years of military occupation among a degenergting economic and social life, with all its governmental difficulties. A large part of the motivation for e passage of this bill is lief to certain American industries from competition by Philip- ine products. We are trustees for ese people, and we must not let our selfish interest dominate that trust. However, from our. agricultural point of view, during the first period of pre- sumably two years it gives no pr - tion of any kind. During the follow- ing five years it gives no eflective pro- tection because the amount of competi- tive commodities admitted into the United States duty free is in sugar, 50 per cent larger than that of 1928; veg- etable oils, 25 per cent larger. In any event the sugar benefits inure more largely to foreign producers than to our own farmers. If we are fc predicate the fate of 13,000,000 people upon this motive we should at least not mislead our farmers about it. If we are to base our action uj economic consid- eration—and I do not neglect its im- portance—then also we should give re- gard to our farmers, workers, and bus- iness men whose livelihood, particularly upon the Pacific Coast, will be largely destroyed by lack of positive provisions for reciprocal trade after independence upon which they can predicate their future. Responsibility Without Authority. The bill weakens our eivil authority during the period of intermediate gov- ernment to a point of practical impo- tence. The powers which the high commissioner can exercise on his own initiative are unimportant, and those which can be delegated to him by the President over legislation are doubtful and indirect. During this period, how- ever, the American flag will be fying and our Army will be in occupation. Our Government with inadequate civil means for exercising its sovereign au- thority to control the situation, but with continued moral responsibility to maintain stable government, will dsily, during those years, be faced with the likelihood of having to em!loy military measures to maintain order in a de- generating social and economic situ- ation, or alternately to expend large sums from our taxpayers in supporting & constantly enfeebled government. Not alone do these difficulties arise from the intermediate situation we cre- ate, but the non-Christian tion who are as yet bitterly opp to the controlling group, constituted at the last Philippine census & majority of the combined population of nine provinces, occupying about 40 per cent of the total land area of the Philippine Is- lands. The maintenance of order in this considerable element has present- ed many difficulties to us in the past, and it is not reasonable to assume that the intermediate government will be as well qualified to handle the situation incline him to retain his senatorial Position, *hey say. In @ w: sure, this contest for a progressive in the office of Attorney General is a mere continuance—or 8 new beginning—of the fight over water power and the utilities. If the Presi- dent-elect is firm in his own policies regarding these problems and progres- sive it may make little erence actually whether a conservative or a progressive is selected to head the De- partinent of Justice, But the progres- sives believe that in the of departmental administration it would be far better to have one of their own kind and leanings at the head of the legal department. Mathewson Improves. SHANGHALI, January 13 () —Doctors considered intricacies as the present regime for a long time. Moreover, without real civil suthority we can have no assurance that the in- termediate government may not find itself in difficuities with citizens of other nationalities which may involve the United States. Such responsibility in these situations, without adequate authority, can lead only to = Without Military Defense. “The income of the Philippine gov- ernment has never in the past been sufficient to meet, in addition to other expenditures, the cost of supporting even the PFilipino ucawa, much less an army or navy. The United States ex- pends today upon the native and Amer- ican military forces for the protection and aseurance of internal order and for the recovery of Christy Jjr., injured in an Sunday in which assured, A leg accident airplane his bride was| final independence. By maintenance of our military occupation and our na- tional guardianship, the United States | must and will give protection against external pressure during the period of | intermediate _ government. e bill makes no effective provision for the maintenance of their independence thereafter from outside pressures, ex- cept & promise of effort on our part | toward neutralization. We have the option to cantinue maintenance of mili- | tary and naval bases. Other nations are unlikely to become parties to neu- | tralization if we continue such bascs | and neutralisation is & feeble assurance | of independence in any event unless | we guarantee it. That again is the rpetual engagement of the United tates in their affairs. But with the impression that these ideas in the bill | convey it i Jikely that the Philippine would vcte in two years in the { that independence is thereby ate tained and with the more or less gen- eral belief that we will indefinitely. en- ture serving thel mational forces against incapable of defending themselves. Therefore, before any plebiscite is held we should honestly and plainly declare our intentions. bill does not do this. In discharge of the maral re- | sponsibilities of our country we have no right to foxce an irrevocable decision on their part to be taken two years hence at a moment in history when the out- look in the world and of their sur- roundings is at best unfavorable to their permanent independence. Conclusions Drawn, “If the American people consider that they have discharged their respon- sibilities to the Philippine le, have carried out the altrulstic mission which we undertook, if we have Mo further national stake in the Isl if the Philippine people are now pfepared for self-government, if they can maintain | order and their institutions, if they can | now defend their independence, we | should say so frankly on both sices. I | hold that this is not the case. In- formed on nelther side have made such declarations without many | reservations. Nor can these conditions be golved by the evasions and proposals of this bill without national dishonor. “In my view, we must undertake fur- ther steps toward the liberation of the Philippine Islands, but they should be based upon a plebiscite to be taken 15 or 20 years hence. On such an occa- | sion there would be & full impress upon the Filipinos of the consequence of their act instead of its confusion as a side issue to the substitution of an- | other intermediate form of self-gov- ernment offering no vital improvement in their liberties to that they now pos- | sess. They should then have freedom | to form their own constitution and gov- | ernment, both in the light of expe- | rience and the forces moving at that time. In the meantime we should de- velop steadily through an expansion of | the organic act a larger importance to | their own officials by extension of au- thority to Cabinet government, with a | full reserve of powers to our represen- tatives. Immigration should be re- stricted at once. We should co-operate with them to bring about their eco- nomic independence before the ple- biscite by very gradual reduction of | their free imports. We should, prior to such plebiscite, or any sooner date that the Philippine people propose, fix | & mutual preference in trade similar to and on a wider scale than that with Cuba. The United States should plainly announce prior to the time of this plebiscite whether (a) it will make absolute and complete withdrawal from all military and naval bases, and from every moral or other commitment to maintain their independence, or (b) the conditions as to authority and rights within the Islands under which we will continue that protection. Without Determination. | “These final steps can not be prop- | erly determined now by either the‘ Philippine people or ourselves. “We are here dealing with one of the most precious rights of man—na- tional independence interpreted as sep- | arate nationality. It is the national | independence of 13 million human beings. We have here a specific duty. ‘The ideals under which we undertook this responsibility, our own national in- stincts and our ins of our responsibilities and all their im- plications and all the forces which would destroy the boon we seek to con- fer and the dangers to our own free- dom from entanglements which our ac- tions may bring. Neither our succes- for dangers which we create for our- selves as & ence of our acts. o Toe | on & wide: titutions which we | ¢im, The Philippine government has not had sufficient income to support “even the Filipino Scouts, much less an army or navy,” while the United States now spends annually on & minimum necessary American military force a sum equal to approximately 28 per cent | of the entire island income. 7. In comparison with neighboring Oriental countries the Philippines offer large areas of undeveloped resources, and the “pressures of those immense neighbor populations for peaceful in- filtration or forceable entry into this area are most potent.” The President pointed out that, while the present bill would give the United States an option on continuing its mili- tary and naval bases in the islands after the 10-year period, it would give no promise of maintaining independ- ence against outside pressures except an offer to attempt “neutralization.” “‘Other nations are unlikely to be- come parties to neutralization if we con- tinue such bases,” added, “and neutralization 15 & assurance of independence in t unless we 4t That is the per- of ‘the ‘United States impression that these ideas in the bill convey it is likely that the Philippine people would vote in two years in the belief that independence is thereby-attained and with the more or less general belief that we will in- definitely engage our power and our own fut welfare in the altruistic mission of ’preurvlnl their independ- ence from international forces against which they are incapable of defending themselves. “Therefore, before any plebiscite is held we should honestly and plainly declare our intentipns. This bill does not do this. In discharge of the moral responsibilities of our country we have no right to force an irrevocable deci- slon of their part to be taken two years hence at a moment in history when the outlook cf the world and of their surroundings is at best unfavorable to their permanent independence.” Recommends Steps. ‘The President advocated that steps be taken immediately, however, looking to ultimate freedom. He urged that more powers be given island officials, that immigration should be restricted at once, and that there should be a gradual reduction of free imports to the United States. He suggested that there be fixed “a | mutual preference in trade, similar and ,Sgale than that with Cuba,” and that the United States declare definitely before any plebiscite whether all its military forces would be with- drawn, or under what conditions pro- tection would be continued. LIBBY HOLMAN READY TO GIVE UP FORTUNE Willing to Drop Claim to Smith Reynolds’ Estate, Says Father. By the Assoclated Press. WILMINGTON, Del, January 13.— Alfred Holman, father of Libby Holman Reynolds, in a statement today said his daughter is willing to relinquish except for & comparatively modest sum her right to a part of Smith Reynolds’ estate. Holman said: “Mrs. Reynolds has offered to relinquish her child's right to the inheritance as far as she legally is able, and her own share as widow, save a comparatively modest sum in each case (and these because she is now deprived of her earning power), hoping the remainder may be devoted to public uses through an endowment established in her late husband’s and uis father's memory.” Baby Kept Secluded. PHILADELPHIA, January 13 (#).— The three-day-old son of Ms. Libby Holman Reynolds was removed to another room today where he “can’t be reached except with an acetylene torch.” John N, Hatfield, superintendent of the Pennsylvania Hospital, said this precaution was taken because “we can't have people trying to see him all the o The baby is still in its “hot-bed” modified z{cubllor. Mrs, Reynolds h"h/l: not yet seen her so: (e ok FAMILY THREATENED SAN FRANCISCO, January 13 (#)— The' Chronicle says a second extortion similar to one which had province set up by the Chinese. Stiff Chinese resistance was predicted for a Japanese force advancing toward Lingyuan, about 100 miles north of the City of Jehol, the provincial capital. BRITON CALLS ON UCHIDA. Foreign Minister Told of Threat to British Interests. TOKIO, January 13 (#).—Sir Francis Lindley, the British Ambassador, visited | Foreign Minister Uchida today and, act- ing under instructions, according to an authoritative staigment, called atten- tion to the threat to British interests in Northern China as a result of the tense situation which followed the clash at Shanhaikwan. Their interview was of the friendliest nature. DENIES NEGOTIATIONS: Yen Says No One Is jAuthorized to Talk Peace at Shanhalkwan. GENEVA, January 13 (#).—Dr, W. W. Yen, chief Chinese delegate at the League of Nations, notified that body today that reports that the Nanking government had appointed some one to negotiate with Japanese authorities re- garding Shanhaikwan hostilities - were false. SMEEMAN RETURNS T0 COLORADO PRISON Cleveland Business Man, Refused Respite, Indicates Formal Appeal for Pardon. By the Associated Press. DENVER, January 13.—Glenn Smee- man, prosperous Cleveland business man, began settlement of his account with the law which he had evaded for 15 years, when he returned to the Colo- rado State Penitentiary from which he esca) in 1018, Riding in the luxurious motor car of his brother and business partner, George A. Bronson, Smeeman, also known as Harry Stanley, started for the prison shortly before noon yesterday on & 120-mile trip to Canon City. Warden Roy Best followed in his own car. Refused a 90-day respite, Smeeman indicated he would make a formal ap- plication for a pardon. Gov, Edwin C. Johnson said he will give it sympathetic consideration. Mrs, Margaret Smeeman, 20, smiled bravely as her 36-year-old husband bade her good-by. She was in a hos- ital recuperating from a nervols reakdown. Bronson said he would return to Cleveland and resume management of the music publishing and guitar busi- ness operated by him and his brother. Smeeman has 31 months to serve, but by gaining good time can be released in 15 months. SENATORS MODIFY HOUSE BEER BILL TO INCLUDE WINE —(Continusd From Pirst Page) | British Parliament made an exhaus- tive and sclentific inquiry of the amount of alcohol in beer necessary to intoxi- cate, and arrived at the conclusion that 3.05 per cent was non-intoxi- cating.” | Committee Favors Bill, | _‘The full Judiciary Committee, where | the bill meets its next test, has shown itself preponderantly for the beer bill, Chairman Nerris is in favor of the measure, and its speedy approval has been predicted by committee members, ‘The House when acting on the bill rejected proposals for including wine. This might lead to a dispute between the two houses, but senatorial sponsors of the wine provision believed today it ‘would be accepted. 4 to 1 in favor of the modified bill, with only Senator Borah (Republican, Idaho) opposing. eral members made reser- vations, however, on specific amend- ments. Besides Blaine and Walsh, Senators Hebert_(Republican, Rhode Island) and Dill (Democrat, Washington) voted for the bill. . SCHALL ELECTION UPHELD Senate Committee Votes to Dismiss Contest. Blaine said the committee vote was | kron VATICAN CITY, January 13.—Pope Pius today himself administered the oath of office to members of his com- mission which is forming a new gov- ernment for Vatican City. The com- mission, headed by his nephew, Count Franco Ratti, immediately took over the government of Vatican City. The Pope on December 8 announced reorganization plans for the Vatican City government, consisting of three bureaus for arts, administration and engineering. Count Ratti, who is 34 years old, was named to preside over the Planning Commission. ‘The commission, in addition to Count Ratti, consists of Bartolomeo Nogara, in charge of the art museums; Camillo Bepcart, minister of engineering, and Leane Castelli, supervisor of engineering. Camillo Serafini retains his title of governor commendatore, but his chief duties henceforth will be to supervise receptions and ceremonies. KREUGER ‘SET-UP METHODS EXPOSED Form Basis for Criminal and Civil Actions Against 10 Directors. By the Assoclated Press. STOCKHOLM, Japuary 13.—Crimi- nal and civil actions against 10 of the directors of Kreuger & Toll, some of them already under way, are based upon a striking picture of the Kreuft “set- up” drawn by accountants who have grappled for months with the match magnate’s tangled accounts. The accountants’ summary of the Kreuger system is explained as follows in a recent report by the liquidators in bankruptey : (1) Each of the main companies of the Kreuger concern were organized with a series of subsidiary companies, frequently several deep. The ultimate point of control was usually Kreuger himself, or some uncontrolled firm, or possibly some fictitious debtar. (2) As a rule the same persons were not managers or bookkeepers in more than one undertaking belonging to the same chain. Carefully Selects Underlings. (3) Where there was any chance of finding out the real import of his trans- actions, Kreuger seems to have been | most careful to select individuals who had the fewest possible qualifications for their job. (4) Practically every business trans- action was carried out by Kreuger per- sonally, and often passed through his personal account. Back of this lurks the important, still unanswered question, Where did all the money go? Kreuger dealt with fictitious profits, to be sure. But he handled millions of dollars of real money as well. He loaned approximately ~$285,000,000 to foreign countries. Many of his compa- nies turned in real profits. Millions came to him through sale of securities at high prices. He squandered millions personally. ‘Where did all the money go? The accountants have figured out & rofit and loss statement from 1927 {hroulh 1930. It showed a loss of 103,- 426,191 Swedish kronor (about $25,- 856,000 at par). For 15 months ended March 31, 1932, the loss was figured at 193,008,360 kronor, Total losses, with fictitious, dupli- cated and worthless assets written off, the accountants figured at 729,609,645 Swedish kronor, or $223,000,000 at nor- mal exchange. Enormous “Personal Account.” In Kreuger's “personal account,” the Alladdin’s lamp by which he created assets and profits as he willed, the ac- countants found total debits over a five- year period of 1685609706 Swedish kronor, or more than $453,000,000 at normal exchange. The credits to this account totaled 1,706,409,815 Swedish | | or. But explanation still is lacl “Unfortunately,” declare the tors in bankruptey, in a recent report, “we must say that at present stage of the investigation it is impossible to give even an lppro{lmluly exhaustive reply to the question, Where has the money gone? “It will rrohhly never be possible to find out the truth about very large amounts, particularly during the last six months before Kreuger's death, as he has clearly very largely used for his speculations a series of middlemen and tools who were unknown to the official organization of the company.” Additional investigation, as revealed hearings and through tes- ——(Continued From Pirst Page.) By he Assoclated Press. loaned two billions to banks, railroads Protection for the American investing public from such financial debacles as the Kreuger & Toll collapse was seri ously considered today by the Sensate Banking Committee. F ‘Completing its inquiry into the affairs of Ivar Kreuger, international financer, who ecommitted suicide in Paris, the committee members turned to a sug- gesticn that legislation be enacted to require all companiés offering securities for public sale to submit their books to outside auditors. The suggestions came from . Frank Altschul, chairman of the Stock List Committee of the New York Stock Ex- change, and was well received by the group of Senators. Insull Inquiry Next. The committee, making & sweeping investigation of stock market practices, also gave attention today to Iits next subject—failure of the gigantic Insull public utility group. Investigators have been working for months on the Insull case, but it is not quite ready for pres- entation, Altschul, appearing yesterday at the close of the Kreuger & Toll hearing, said the Stock Exchange has required all new companies listing ucurrmu to submit to ing fls&cmdenz audits, but added there were ulties in the way of ap. plying this rule to all companies listed on the Exchange. Law Personally Favored. He said he personnlly favored legisla- tion to require such an audit of any company seeking to raise funds from the public. Most of the stocks listed have been audited, Altschul said, but between 20 and 25 per cent have not. He did not name those which have not submitted, but indicated the list included some big e Kre e Kreuger collapse in Sweden snd the Insull failure in this country h.:v‘le emphasized in the view of some mem- bers of the committee the need for such auditing. Chairman Norbeck indicated he was impressed with Altschul's rec- ommendation. THREE YOUTHS DIE IN ELECTRIC CHAIR Slayers, With Ages Totaling Only 59, Hope to Last Moment for Stay From Gov. Lehman. By the Associated Press. OSSINING, N, Y, January 13.— Three more murderers—youths whose age totaled only 59—have paid. Swaggering and cursing, Peter Harris of Olean went to the electrio chair last night. Only 21 years old, he fought a stander. As soon as Harris was dead, Thomas Carpenter and Charles Bates, colored youths, each 19 years old, wers electro- cuted for slaying a man in a Bronx hold-up. They wept and had to be half carried through the green door to the death chamber. The triple execution required only 16 minutes, Until just before their march to the death chamber, the three youths ex- pected word from Albany that Gov, Herbert H. Lehman had commuted their sentence as he had that of Cornelius Jamieson of New York, who had been sentenced to die with them for the same crime—murder. A similar triple execution is scheduled for Thursday night of next week to carry out the sentences for murder im- posed upon Alexander Nunes of Yonk- ers, Willlam Turner of New York, and Vincent Garcia of Niagara Falls. — LIONS CLUB TO PROBE CHAIN GANG “WHIPPINGS” Greenville, 8. C., Group Pledges Thorough Study of Brutalities Claimed by New Jersey Youth. By the Associated Press. GREENVILLE, 8. C, January 13— The Greenville Lions Club, which has § ita major peoject, the maintenance af humane conditions in prisons and chain gangs of this section, today called for an investigation of the charges of David Kraft, 14-year-old Newark. N. J., youth, that he was ated while serving sentence for hoboing in this county. Rev. J. Edgar Stockman, president of the club, in asking for the invest uon‘ said “the entire facts in the Kraft case | should be ascertained.” Kraft returned to his home in Newark this week, where he told relatives he leg gun battle with policemen, killing a by- snd and insurance companies, and the Fed- eral Reserve Board hgd bought $1,100,~ 000,000 in bonds, and continued: “The R. F. C. hasn't logned a penny of actual mons It has nothing but the credit of the people. en the e Reserve system bought its bonds, the banks received the money and returned it to the system, so the transaction accomplished nothing. Holds Actual Money Is Less. “In 12 months time, the Government has placed in existence over $3,000,000,- 000 in what some le think is money, but we have the fact that there is ‘l;,’. M' less in actual money in eircus ‘Thomas paused and, noticing there were only half dozen or so Senators on the floor, held up the ity quoted from it, mm% Metnbers of Congress renize the single loaned all the shoulders.” He called off the names of those in the chamber, and just then saw Senator Glass toward him. ;- - “1 see . n thzwdoctx the 31:”- jun| Senator from o added. e the Senator's on,” re- tarted Glass. “I haven't been out the door. Tve just been walking around.” ‘To end the filibuster, backers of Senator Glass, Democrat, of Virgina, author of the banking bill, proposed to invoke the drastic cloture rule—limiting debate and foreing a vote. Its chances of success were doubted, however, since it takes a two-thirds vote to make it effective. Wheeler Seeks Inflation. It was talk of the drastic cloture rule that brought Wheeler into the contest late yesterday with an argument for currency inflation. = And later, after Glass and others had forced the first night session, Thomas spoke against the banking measure and demanded lcgli‘xhlmon to help the needy. omas spoke for about three-quar- ters of an hour and then Senator Wat- son of Indiana, the Republican leader, moved a recess, leaving Long and his backers in possession of the floor. The tall, white-haired Oklahoman read a number of telegrams from citizens in his State, including one from the State banking commissioner, ob- {;:lflnl to the bill's branch bank pro- lons. The general tenor of the Thomas telegrams was that branch banking would destroy home-owned State banks and wreck individuality in banking. ‘Thomas told the Senate it had been in session six weeks and the country was in the fourth year of depression, without proper remedial steps being taken. “At a trial November 8," Thomas continued, “a President was convicted, an administration wrecked and a po- litieal party injured, if not destroyed.” Demecratic Victories Reviewed. He then reviewed Democratic victories, and turned back to the baking bill with the 1emark that hungry people farmers can “scarcely get a hear- ing, yet when the financial interests want one, it's easy—even to the extent of holding the Senate in session at night time and arresting Senators and bringing them here.” He grinned at Glass as he said this, referring to Glass' motion that the sergeant at arms be instructed to bring in enough absentees to make & guorum when a roll call showed three members short of the required 49. Glass interrupted him at one point to term “utterly gepostemus fabrica- tions” statements that the bill had not e R roug! ves 5 Just & moment later Glass called “the grossest injustice” ever done him the hearing of an independent banker held last Saturday by the Committee, contending the bill was proverly before that committee as it was before the Senate for considera~ tion. When Thomas said & deal of pressure was being brought to put through the bill and there was much propaganda in its behalf, Glass, with a show of anger, broke in and said: “Does the Sglt;:rn mean he believes ue or sinister infiu been Lot A be‘:lr?""! ences have ‘Thomas sal did not mq that, particularly if Glass "'{; ap- plied to him. SCORES DIETING “FADS” —_—— Dr. Chipman Gives Second Address in Y. M. C. A. Series. hetiig. Stadh e e e Y. M. C. A “Diet and Weight Con- trol,’ munmn said exercise should play an important part in any plan of