Evening Star Newspaper, January 25, 1933, Page 2

SHAW TESTIFIES -~ ATCLARK TRIAL President of Boa'rd Says “No. 2 Account” Was Unknown to Commissioners. By a Staff Correspondent of The Star. ROCKVILLE, Md., January 25.— Testifying today in the embezzlement trial of Berry E. Clark, former clerk Pf the Montgomery County Board of Commissioners, Lacy Shaw, head of the board, told a jury in Circuit Court here that the commissioners never knew of 2 so-called “No. 2 account.” in which Tlark is alleged to have deposited offi- cial funds allegedly misappropriated. - Shaw, a witness for the State, testi- fied the commissioners at no time ha'd authorized Clark to use the county's money for personal purposes. “Didn’t Know of No. 2 Account.” Under cross-examination by defense counsel the county commissioner said that the former clerk had handled his accounts in a manner that appeared satisfactory to the commissioners, but remarked: “Of course, we didn't know about his No. 2 account.” The State previously had scught to | show by witnesses and canceled checks that Clark deposited certain oficial funds in a special “clerk’s account” at the Montgomery County National Bank, Iater withdrawing part of the county money and redepositing it in a personal account at the same bank. Shaw declared the clerk had been au- thorized to turn the county's money over to the county treasurer. Assistant Treasurer Called. Testimony by which the State seeks to show that Clark failed to turn over to the county treasurer certain sums intrusted to him for franchise tax re- funds and other official purposes, was given to the jury today by John Lewis, assistant treasurer. State's Attorney Sedman Prescott sought to bring out from the witness that during the seven-month period during which Clark’s alleged embezzle- ments took place, the former clerk tured over to the treasurer approximate-, 1y $16 in franchise tax refunds. whereas, ‘according to previous testimony, Clark had received a much larger sum for transmittal to the treasury. Lewis was cross-examined Jength by Defense Attorney J. Barnard ‘Welsh, who obtained from the witness confirmation of the fact that during this period Clark sent to the trcas- urer, J. Forrest Walker, many large sums of money in connection with county business. The purposes for which these payments were made were not revealed during the examination, however. Many Witnesses Called. A parade of witnesses took tha stand yesterday afternoon for the SHate to identify numerous checks invcived in the alloged defalcations. These Wit- nesses were divided into two groups— those who had sent checks to Clark in payment of fzes, refunds and the like, and those who had received frcm Clark checks in payment of his personal ob- ligations. In an effort to show that Clark failed to make proper entries of offic.al re- ceipts in the county bocks, Prescott questioned C. Y. Latimer, present clerk of the county commissioners, and Mrs. Mary O'Brien, employe of the commis- sioners’ office. The defense objected when Latimer took the stand for ti purpose, de- claring to the court . Clark is not charged with failing to make entries in a book. He is charged with taking $425." Prescott, pointing to a large record book, repifed: “I want to show by the bgoks that he didn'c charge him- self With these fees for commitment of inseme patients, building permits and other official purposes. ‘There are only two entries in this book d&owsg receipt money for insane patients. OiMH. &Bden identified the book des- fgnated by the prosecutor as the ome in which such entries should have been made. Under cross-examination she was confrcnted by the defense with two smaller books which she testified also were used for entries of that sort. She.said she had never heard of “a little, thin black book” referred to by defense counsel. ¥ Al JAPANESE CABINET POSTPONES ACTION ON LEAGUE STATUS (Continued From First Page.) cized the cabinet's apparent withdrawal of its reservation regarding nppllcl!lnl} of article 15 of the League covenant on which former Premier Inukai strongly insisted. CHANG MAY RETIRE. Chinese Opposition May Force Military Leader in North to Quit. SHANGHALI, January 25 ().—Caught between the Ja car machine on one side and di fon at hcme cn the other, Marshal Chang Hsiac-Liang. reports from Peiping 2nd Tie a Vesterdey, is rerdy to withiraw as mili- tary leader of North CI The resignation of the young mar: would give the lo: s of the National government a free hand in decling with the Japaness cr The reperts that Chang was with- drawing were not verified, but it was pointed out that if he cicse to fight he might be destroyed by the Japanese and if he did not he m(i::l}‘}t be ruined by rising oppositicn in China. )Nonhgcl;:ga militarists are dissatis- fied, dispatches say, with Chang’s rec- ord since the Japanese seized Shan- halkwan three weeks ago. They are ready, the reports assert, to overthrow the young marshal and to replace him with a command that would put up a stiffer resistance against the Japanese. These reports reached Shanghai after the North China leaders had met in an impertant militery conference at Nanking, the Nationalist capital. Among those aitending this meeting were ‘Marshal Chang, Finance Minister T. V. Soong, Mershzl Chiang Kai-Shck: and Marshal Tuen Chai-Jui, former Presi- dent of China. o TOKIO DENIES BASE IN MANDATED AREAS League Commission Satisfied With Japanese Explanation of Use of Islands. By the Associated Press. GENEVA, January 25.—The report of the Mandates Commission, presented to the League of Nations Council vester- day, in referring to rumors that Japan ‘was establishing a naval base in Facific Islands under Japanete mandate, ex- presssed satisfaction with the Japanese government's denial. “The report is unfounded,” the Japa- nese government is reported to have re- plied to the commission’s inquiry. “The government has not coniemplated and has no intention in the future of con- templating the establishment of a naval base in the islands under mandate.” Regarding Palestine, the commission reported that the year 1931, which was the period under consideration, was a period “of calm and prosperity.” This was due, according to the British man- datorial authorities, to measures taken to insure security and to the ecopomic situation. ¢ A at | |HOOVER SPEEDS PARLEY | ON ECONOMIC PROBLEMS; | TARIFF RISE IS FEARED (Continued From First Page.) considerable damage has been done to American agriculture and that unem- ployment has been increased by the same cause. Sources able to speak for the Presi- dent stated today he believes that if it is necessary to increase American tariffs this move will place the United States in a mad race with European countries to raise tariffs, a movement he believes has been going forward with increasing speed for the past 18 months. Only today in Geneva, the prepar- atory commission for the eccnomic conference decided not to fix a date for that ascembly for the present, but to meet again sometime within the next three months to set a date. PARLEY DATE NOT FIXED. Geneva Commission. to Reach Decision Within Three Months. GENEVA, January 25 (#).—The Preparatory Commission for the pro- posed World Economic Conference de- cided today not to fix a date for that assembly for the present, but to meet again some time in the next three months to decide upon a date. The British, French and American members agreed that the international situation is too uncertain to sct a date now. The German delegate wanted an early meeting, but he was outnum- bered. The committee invited Prime Min- ister Ramsay MacDonald of Great Britain to be president of the World Conference when it assembles. BRITAIN TO INSIST ON GENERAL TALKS Chamberlain Speech Indi- cates England Wants France to Be in Debt Parley. BY CONSTANTINE BROWN. The first clear indication that Great Eritain would insist on having France participate at the forthcoming debt dis- cussions was seen today in official quar- ters in the speech delivered by the Brit- ish chancellor of exchequer, Sir Neville Chamberlain. Sir Neville, replying in- directly to the invitation extended last Friday by the President-elect, stated that two essentials were necessary for a | new debt agreement with the United States. One of these two essentials was that the settlement must not involve re- sumption of German reparations. Since this object cannot be achieved | without the inclusion of France in a | debt agreement, because France is by (far the most important beneficiary of |the German reparations, the statement of the British chancellor of exchequer is being interpreted that no debt settle- ment can be reached unless the Ameri- can Government abandons its present pelicy of dealing only with those nations \'\'hlc!h have met the December install- ment. | | Not Eager to Pay Up. According to reports received in the course ¢f the morning from Paris, the French are aware that it would be im- pessidle for the Rooseveit administration to include them in the general con- versation without their paying the $20,- 000,000 which they have defaulted. The French government shows no eagerness to do this, for two reasons: First, they do not think it advisable to pay the cefaulted amount to the Hoover administration because it would weaken their own case in the eyes of the French pcople. The French have not pleaded poverty when they refused to pay the December installment, but based their refusal on the fact that Mr. Hoover had led them to believe that by their acceptance of the 1931 moratorium, the payment of their own obligations would be extended in case that the world depression con- tinued. The refusal of the American Gov- ernment to reoven th: discussion of the problem cf the war debts last December was consicered by the French chamber unethical and this led to the refusal to pay the amount due then. May Pay in Spring. With the coming into office of the Rocseveli acministration, the situatioa will change materialiy, since Mr. Roose- | velt was nct a party to the discussions which have taken place between the Ame:ican and the French Governments since the end of June, 1931. Conse- | quently the same reasons which have | led the refusal to pay of ihe December instalment will no longer exists. i The other reason why France is not {likely to pay the amount due im- | mediately is_ that the Paul-Boncour cabinet is likely to be overthrown within the next few days. According to reliable information, Mr. Paul-Boncour will be fo'lcwed by a So- cialit combination, Dalad'er-Chau- ' temps. These two men will form cnly 2 ctopgap cabinet, lasting only a few weeks, and will b2 rcplaced by another { ot concen‘ration cabinet. This cabinet is exvect~d to ccme to power ! about the scme time as Mr. Roosevelt | assumes office | _To make any ge:ture now. the French say, would be ureless and might pos- sibly harm the case of France. INTERIO { | 1 | | R UNIT BILL IS GIVEN TO SENAT Appropriation Measure Carries $43,817,844 as Reported by Smoot. Carrying $43.817,844, an increase of $164940 over tho Houce figures, the Interier Depariment appropriation bill was reported to the Sen-to ¢ roon from the Anncop-i>tions Commit- tee by Scnator Smoot, Republicen, of Utah. | The Senate commiitee made no charges in any of the items for in- stitutions in Washington, which come * under the Interior D-nertment, namely, FreeZmen’s Hospital, Howard University, | St. Elizabeth and the Columbia Insti- tution for the Dzaf. The increases a'lowed by the Senate committee related to Indlan affairs, geological survey and naticnal park service. In one Indian item, a reduc- tion of $11,000 was mede. resulting in ' a net increase over the House bill of | $164.940. i While the S:nate committee raiudl the Houre tota!, the report stated that, the bill as it n-w stands is $23,365,840 le's than 1933 appropriations end fgéz‘as‘ooa less than the estimates for The amounts in_the. bill for loca stitutions : Freedmen's $: 130; Howard Univer:ity, $1,092,501 St. Elizabeth's Hespital, approximately $1,143,000. tcgether with authority for the use cf certain accrued funds: Co- lumbia Institution for the Deaf, $122,200. | Maj. F. H. Pocle Near Death. MARCH FIELD, Calif., January 25 (®—Ma] Francis H. Poole, chief sur- geon of March Field, was critically {ll yesterday, Army physicians holding little ! hope for his recovery. exceptional _ The officer’s wife was flying here from | Overture, FRANCE'S DEFAULT 10 BE CONTINUED Spokesman Says Paris Will Let London Break -lce. Italy Seeks to Bargain. (Continued Prom Pirst Page.) clally invited.” The conclusion is that the United States, by issuing the “in- vitation,” demonstrated its willingness to revise the debts, although not bind- ing herself to do so. BRITAIN SEEKS “FINAL” ACTION. Chamberlain Holds Reparations Re- sumption Must Not Be Involved. LONDON, January 25 (#) —Chief aims of the British government at the pro- posed Anglo-American conference in Washington soon after March 4 will be to reach a new debt settlement that will be “final” and “not involve re- sumption of German reparations.” Even before the British government has taken official action on the Ameri- can Government's offer to discuss the debt, Chancellor of the Exchequer Ne- ville Chamberlain has declared these must be the “essentials” of a naw agreement. This declaration of Dritish policy was welcomed in the London newspapers today as a clear and able statement of the British view. Favors Total Cancellation, “We shall glad.; discuss with our American friends wherever they are ready to recelve our representatives, the lines on which an agreement can be reached,” hs declared in a speech at Leeds last night—the first official statement indicating acceptance of the ! American offer made last week. “Total cancellation of the war debts and reparations would be the best thing that could happen to the world as a whole,” said the head of the British government's finances and a likely dele- gate himself to the Washington parley. He intimated, however, that cancella- tion might be “going further than American opinion is yet prepared to accept.” To avoid resumption of German repa- rations on the old scale, European debtors have practically agreed that the United States must grant similar con- cessions to those which they promised Germany at the Lausanne Conference. German reparations were practigally wiped out—scaled down to about 1 :ent on the dollar—providing the United States acts similarly on debts owed by the European allies. Realizes U. S. Difficulties. Chamberlair said: “I realize the diffi- { culties of the American Government, and, remembering how long it took to persuade the European nations of the evil results of reparations, I can well understand how different is the aspect which the subject of war debts pre- sents to the farmer of the Middle West from that.which appears to us.” Later he quoted a resolution passed 1by & “number of cotton exchanges in America” as saying: “It is clear that 6- cent cotton and 40-cent wheat are in- evitable so long as international com- mercial and financial relations remain as they are. * * * We urge every farmer to demand that the Government confer at once with foreign debtors with a view of finding a re-arrangement of the debts.” During the debt discussions last De- cember, Chamberlain made a similar observation in the House of Commons intimating the “truth” concerning the war debts was “hidden from the Ameri- an farmer.” Last night he spoke of “an important and enlightened section of opinion in the United States which is not far from our own viewpoint.” In the end, he said, all debt payments must “take the form of sending goods or of rendering services.” fective means of payment, he added ‘‘could only be found by increasing sales of foreign goods to America, or what would come to the same thing, dimin- ishing purchases from America.” Might Increase Sales. “Increased sales might be effected” said Chamberlain, “by drastic reduction of the American tariff or, in the case of countries off the gold standard (in- cluding England), by depreciation of their currencies in terms of gold. De- creased purchases could be insured either by depreciating currency or by increasing the tariff against America.” The disturbing consequences of such policies, he edded, were important to the United States which “depends to a large extent upon foreign markets.” The Morning Post said today that “setilement of the debt problem offers America a sufficient share in the result- ant opportunity of a common revival as abundantly illustrated by Chamber- lain.” The Telegraph sald “the real sig- nificance of the speech was that it points to cancellation or revision so drastic as to virtually amount to can- callation.” Reparations Are Discussed. The Daily Mail interpreted Chamber- lain’s reference to reparations as stat- ing “America's debtors must not be asked to pay America when they are not receiving payment frcin Germany.” The News-Chrenicle called it the “best expositicn of the British case anybody hes yet macde. * * ° The cne blot being the passage dealing with reparations which adds little, to the argument end will heedless’y irritate American opinion.” The Herald's financial editor seid he finds in Chamberlain’s speech an in- dication that the government will al- most certainly insist on floating a loan in the United Stctes to raise the money with which to clear the debt by one final payment. The proceeds of the ' loan would be handed over to the United States Government, he added, with Great Britain being respnsible for in- terest and sinking fund payments. —_————— BAND CONCERTS. BY the United States Navy Band Orchestra this evening at the band auditorium, Navy Yard, at 8 o'clock; Charles Benter, leads Alexander Morris, assistent leacer. “Fosamunde,” (“The Magic Franz Schubert jon to the Dance” Von Weber Sclo for violin, “Waliher's Preic- lie: " m “Die Melstersinges von Nurnberg”......Richard Wagner LCanel Te in, soloist. Solo fcr violin, “Cripple Crezk,” from the suite “Southern Moun- tains” .. ..Lumar Stringfield Cloister scene, “Kamenoi O:trow,” Anton Rubinstein Harp”) . Valse, “Inviial! Suite, “Babylon” Odalisks. Bayaderes. Queen of the Night. Orgy. Rapsody, “Second Hunnrl;fn.," nz Liszt “Anchor’s Aweigh.” “The Star Spangled Banner.” By the United States Marine Band this evening at the suditorium, Marine Barracks. Tayler Branson, leader: Arthur 8. Witcomb, second leader, conducting. Macch, “Zacat:ces” (Mexican)..Godina Cverture, “Merry Wives of Windsor,” Nicolal Weltz, “Roses from the sauu:"'s A Southern Rhap:ody, "V'A‘fill.l;h." Cello Solo, “Berceuse” from John Auer, soloist. Grand Scenes from “Samson and lilah” int “Southern “Tarantella” . Marines’ tezuma.” “The Star Spangled .Banner.”. » I uss | QGodare | How Britain FINAL SETTLEMENT OF PR! By the Associated Press. EEDS, England, January 25.—Fol. lowing is the text of Chancellor of the Exchequer Chamberlain’s speech last night on the war debt b question: We have in the last few days re- ceived a message from the United States of America which offers the prospect ::t lllgmprouhotln thetne-r future wm ent of one of our most g difficulties. It would be too much to say that reparations and war debts have been the sole cause of the economic erisis, but there can be little doubt that untit the nightmare of these intergovern- mental obligations has been laid to rest we cannot hope that confidence emong the nations will be restored or that we can compass that financial and eco- nomic recovery which has b2en so long delayed. Last June we accomplished at Lau- sanne a provisional settlement of rep- arations. It could only be*provisional because whatever theories may be en- tertained about the relation between reparations and war debts, Germany's creditors could not be expected finally to release their claims until they were assured of similar treatment as re- gards their own obligations. No Criticism of America. I had hoped that we might have been spared the dilemna in which we were placed last December when we had to choose between default upon our legal obligations and payment which, as we believed, could only accentuate fur- ther the troubles and difficulties which beset the world and not the least Amer- fca herself. I offer no eriticism upon the Amer- ican refusal to prolong the moratorium whilst conversations were taking place. 1 realize the difficulties of the American Government and. remembering how long it took to persuade the European na- tions of the evil resulis of reparctions, the aspect which the subject of war debts presents to the farmer of the Middle West from that which appears to_us. But there are certain fundamental | truths which will out even though they | may lie concealed for a time. In the long run sall payments to a foreign country must take the form of sending goods or of rendering services. It may well be that this truth has been hidden from the American farmer by trans- actions which he has perhaps not ob- served. During the 10 years, 1922 to 1931, the United States of America received from foreign countries £400,000,000 ($1,340,- 00.000 currently) in war debts, £1.000. 000,000 ($3,350,000,000 currently) in net intersst on commercial loans, and £1.- 200,000,000 ($4,020,000,000) for the sur- plus of American goods sold abroad over foreign goods sold to her. That makes a total of £2,600,000,000 ($8,710,000,000) in recelpts. How did foreigners pay that vast sum? Source of Payments. A billion five hundred mil'ion sterling ($5,025,000,000) came from the expendi- ture by American tourists in European countries and remittances from immi- grants living in America to their Euro- pean relatives. Another £100,000,000 ($335,000,000) came by shipments of gold, making £1,600,000,000 ($5,360,000,- 000) altogether. Where did the remaining £1,000,000,- 000 ($3.350,000,000) come from? It came from loans made by America to the rest of the world and it was that £1.000,000,000 of loans and that alone which made possible the payment of £400,000,000 of war debts. But at the present time American tourists expenditure has dwindled to a very low figure; so have remittances from immigrants in America. She has already got more gold than she knows what to do with and she has stopped lending money. Therefore if these war debts payments were to be resumed they could not be made by loans or by fur- ther shipments of goid. Effective means of payment would goods to America or, what would come | to the same thing, by diminishing pur- chases from America. Increased sales might be effected by drastic reduction of the American tariff or, in the case of countries off the gold standard, by a depreciation of their currencies in terms of gold. Decreased purchases could be insured increasing the tariff against America. Now, in pointing out what would be the effect of resuming war debt pay- \ ments, I am not using threats. If you I can well understand how different is | have to be found and they could only | be found by increasing sales of foreign | either by depreciative currency or by | Views Debts OBLEM IS AIM OF LONDON. NEVILLE CHAMBERLAIN. see a man walking along a precipice and you point out to him that the ground just in front of him is under- mined, that is not a threat, it is a warning, and it is not less friendly be- cause it is evident that if the man goes cver the precipice he is quite likely to drag you down with him. As a_matter of fact, these considera- tions which I have been mentioning and the consequences arising from them are very well realized in meny quarters of America already. America depends to a large extent upon foreign markets to absorb her productions, She herself consumes only 80 per cent of her own wheat, only 64 per cent of her copper, only 60 per cent of her tobacco and only 45 per cent of her cotton. For the rest she must find a market outside her own boundaries, and unless she can find that market at a remuner- ative price her producers are bound to suffer. Only a short time ago & num- ber of cotton exchanges in America | a long resolution which says, |among other things, “From foreign | buyers of cotton and wheat it is clear | that 6-cent cotton and 40-cent wheat |are inevitable so long as international | commercial and financial relations re- main as they are. Members of this ex- change give solemn warning to South- | ern farmers and their representatives at | Washington that unless this critical | situation is promptly faced the growing | of cotton and wheat for export has per- | | ished as & means of decent livelihood | to demand that the Government confer at once with foreign debtors with a | view to finding a rearrangement of debts that can in fact be carried out without destruction of the foreign buy- | | ing power on which the survival of our farmers depends.” Point of View Known. . That resolution shows, I think, that | there is at any rate an important and enlightened section of opinion in the | | United States which is not so far from our own point of view Our point of view is well known. for it has been | | consistently held by successive govern- ments since the war. We believe that the total cancella- | tion of war debts and reparations would be the best thing that could happen to the world as a whole, but if that is go- ing further than American opinion is | yet prepared to accept, we shall gladly discuss with our American friends | whenever they are ready to receive our Tepresentatives the lines on which an agreement can be reached, bearing in mind two things which seem to us es- sential; first, that the settlement to be reached must be the final settlement, | and, secondly, that it must be one | | which it was the object of the Lausas settlement last year to end. For the | Lausanne settlement is the one substan- tial advance during the last few years in the troubled history of Europe. Not only did it put an end to the un- certainty and anxiety which attended all previous efforts to adjust an impos- sible situation, but it also opened up new possibilities of a friendlier feeling between European nations on which might be based more fruitful co-opera- tion in other spheres. To disturb that settlement now would be to reopen old wounds and to destroy for an indefinite period all prospect of agreement on matters affecting the happiness and prosperity not merely of Europe but of the whole world. the claim on Germany for reparations {WHEELER BLOCKS BANK MEASURE BY (Continued From First Page.) for. It was announced that Senators Borah, Republican, Idaho, and Johnson, Republican, California, would have voted for the motion if present and that Sen- ator Brookhart, Republican, Iowa, would have voted against. A majority vote would be necessary now to bring the proposals back before the Senate. Debate Lasts Until 10 p.m. ‘The silver®vote was preliminary to a | vote on the Glass bill itself, for which its sponsors kept the Senate in session !until 10 o'clock last night on an off- | chance that debate might exhaust itself | ' by that time. ‘Wheeler said the votes of some Sena- | tors from silver States helped table the free coinage rider, which was offered as a substitute for the Long amendment. )Bcth proposals were tabled by the one vote. After the roll call Long accused Glass of preventing a discussion of his amend- ment and continued the argument for currency expansion. Glass replied that Long had indi- cated he might withdraw his proposal and reiterated the Senate had “wasted nearly eight hours on a matter that has no relevancy to the bank bill.” Senators Norris, Republican, Ne- braska, and Lewis, Democrat, Illinois, who voted against tabling the amend- ments, had asked their withdrawal so they could be given a fairer test when not connected with the benk measure, but Wheeler refused. Long Asczils Glass. | | th: new Secretary of the Treasury, contending he was “just like Mellon tand Mills.” “If there is any difference between the pelitics of the Senator from Vir ginia, Andrew Mellon and Og. en Mills, ! Long said, “T haven’t been able to see it. | “If the President-elect sees fit to ap- point my distinguished collzague, the Senator from Virginia, Secretary of the Treasury, I'll write a letter to Mills and Mellon, apologizing, saying I've been unanimously proven wrong.” Long added he had “gone all over the country” in the past criticizing Mills and Mellon, but that if Glass succeeded them, he would owe them an apology. The first vote to be taken after tab- ling the silver proposals was 53 to 25 against an amendment Senator Kean. Republican, of New Jersey, which would have exempted Fedcral Reserve member banks from subscribing a share in the stock of th> proposed $800,000.- 000 Federzl corporation to liquidate clesed benks. Under the bill the member banks are required to subscribe about $75,000,000 to the stock. ) Fears “Absolute Wreckage.” During the dcbate Glass. szid if the views expressed on cevaluating the dol- lar to permit liquidation of debts by a cheaper dollar were adopted the country is nearing the brink of absolute wreck- TALKING ON SILVER | Long reiterated opposition to Glass as | marked, “but we are faced with a dras- tic condition. This is a case that re- quires a major operation. I'm firmly of the view that the best plan looking to- ward inflation that you can propose is revaluing the gold dollar.” He said he was working on such a measure and expects to introduce it soon. Wheeler contended free colnage of silver at 16 to 1 would double the world’s primary money and more than double the price of wheat and cotton, and solve unemployment. He asserted William Jennings Bryan did not originate the 16-to-] theory, but that this was the “money system of our forefathers” and that of Alexan- der Hamilton and of Thomas Jeffer- son. Reed Hits Both Plans. Senator Reed, Republican, Penn- sylvania, took the floor late yesterday to assail both the money proposals. He sald the silver amendment would arti- ficially peg the price of silver here at five times the present market value end result in a dumping of the entire world supply into America unless an embargo tariff were placed against it. “The paradoxical result would be, , “to make the metal a basis of our coinage on the one hand and for- bid its free movement in commerce on the other.’ “We will be giving a great cash bonus to India, and, perhaps, China” he said. Lowering the gold content of the dollar, he added would provide only “spotty and irregular relief to the debtor class,” since most mortgages and all Govern- ment. bonds were all made payable in gold at present weight and fineness. “It will give relief only to the maker of promissory notes, but not to the debtors,” he esserted, adding he doubted if Congress had the power to debase the dollar. “If it did” he said, “this Nation ought not even to dream of its use.” Class argued to cbtain—if there is any approach to {hat view b7 Congress—God have mercy upon the Sccretary of the Treasury when he is compelled in a few month3 to refund $11,000,000,000 of Government obligations.” ‘Wheeler replied that the election re- turns last Fall “showed the American people want no more Ogden Mills as Secretary of the Treasury.” “Yes,” the Virginian retorted, “and we had two party tforms opposing free silver.” Lo ¥ VIRGINIA DAIRY GROUP OPPOSES ALLOTMENT Government Price Fixing Attacked by Pro‘duea Association at Convention. By the Asscclated Press. 25?’11“¥Dfl?-|h GKSIBU'}‘!G. Va., January . —Members of the Dair Products Assoclation weavt‘l:o;m‘mord 4 on ent price-fixing fea- ture of the farm relief bill 'now pend- ing before Congress. session annual convention, members said day ual fforts of Congress to regulate prices énuma'mmmu'unmfl »uhmmwro‘mm in this country. We urge every farmer | which' will not involve rezumption of | that if “such views are ARY 25, 1933, REVISION OF DEBTS TERMED UNLIKELY Rainey Predicts Refusal by American People to Per- mit Reduction. Representative Rainey of Illinois, the Democratic floor leader, today predicted to newspaper men that “no reduction or cancellation of war debts” would re- sult from the conferences to be held afier President-elect Roosevelt takes office March 4. “The conferences Wwor't amount to anything, in my opinion,” Rainey said, “because the American people are not going to stand for a reduction in the | debts. “Remove Trade Barriers.” “The debt conferences should be linked with the World Economic Con- ference,” Rainey said. The thing to do Is to bring about a removal of interna- tional trade barriers, so that trade can be revived. “The conferences already projected hold only a possibility of opening up | trade routes and giving the debtors a chance to pay. Rainey said “talk about having Great Britain and other countries going back on the gold standard is puzzling to me.” “I don't think any one knows any- thing about the gold standard anymore. South Africa, producing 52 per cent of 'the world’s gold supply, is off the gold | standard because it has too much gold, +and England is off the gold standard | because it doesn't have enough. Sees Silver Coinage. “I think we will have to turn to silver coinage. I$ would solve the money situ- ation.” Asked about the action of the Senate in killing the silver remonetization pro- posals yesterday, Rainey said. “Oh, they’ll come up agaln and stronger.” Debate Opens in Senate, Shortly after Rainey's statement a fresh outburst of debate opened in the. Senate. Senator Robinson, Republican, of In- diana, precipitated it by asserting that President-elect Roosevelt's offer to dis- cuss debts with all nations that have paid their December installments was an invitation to reduce the debts, and calling attention to a published report that an emissary of the President-elect was in Great Britain talking with offi- cials about an 80 per cent reduction. Senator Robinson of Arkansas, the Democratic leader, entering the chamber during the speech, interrupted to say he understood Robinson was using news- paper reports “as the basis for violent attacks.” 5 He got no further before Robinson of Indiana cut in on him to say: “Not violent attacks. I resent that. The other day the Senator sald I was playng cheap politics. When any one speaks for the American people, it is | cheap politics. It seems a man must g0 to a naval conference to become broadminded.” The Democratic leader, who repre- sented the United States at the London Naval Caonference, tried several times | to interrupt the shouting Republican. Will Speak in “Own Time.” Finally the Democratic Senator gave up and sat down, saying he would speak later in his “own time.” He gained the floor a few minutes later to call a_demand by Rcbinson of Indiana that President-elect Roosevelt deny or affirm reports that an emissary of his was negotiating for an 80 per cent slash in the British debt, “the played in the ‘The Democratic leader asserted “this e | Is not argument, but inflammatory, de- clamatory denunciation.” “His statement,” the Democratic chieftain said, “is unjust and not cal- culated to inspire confidence in the Senate in so far as he attempts to re- flect the views of the Senate.” Robinson of Indiana had said: “There is no doubt in the world that these invitations have only one thing in mind—that's to reduce the debt and Congress had definitely declared there shall be no reductions. “What shadow of right has the Pres- ident-elect to set aside, even before his inauguration, a resolution of Congress and undo ail that Congress has said shall not be undone.” Cites Resolution. Robinson then cited the resolution adopted by Congress when the Hoover moratorium was ratified, saying, “it is expressly declared to be against the policy of Congress that any of the in- | debtedness of foreign nations should be in any manner cancelled or reduced.” Declaring the Indianan was endeav- oring to “discredit” the incoming Pres- ident in the eyes of the American peo- ple. the Arkansas Senator said: “Mr. Roosevelt is coming in under very grave difficulties. We all realize that in order to restore confidence it is necessary for those in authority to speak truthfully and to speak with in- formation. “Where any Senator undertakes to inflame prejudice in the minds of the people in giving credence to reports not authenticated he is not performing a patriotic service and so far as I am concerned he does not reflect the true spirit of the American people.” Niceties Are Ignored. Parliamentary niceties were ignored 2s the two Senators clashed. | _ The Democratic leader refused during i his reply, to yield to Robinson of | Indiana, saying: “In view of the personal references to me by the Senator and his refusal to yield, I think it is a clear indication of the dispcsition and character of the Senator from Indiana, after being deliberately discourteous to me. “I said the other day the Senator was playing cheap politics. That might not be construed to be courteous. But I make the declaration now that he's playing the cheapest politics I've ever known to be played in the Senate. “He is seeking to impair the useful- s and weaken the honor of the next Chief Executive by undermining the cenfidence of the public in the integrity of his purpose. “No Question Before Congress.” “There is no question before the Congress involving international debts. Neither the present Chief Executive nor the future Executive has taken any action that places the question before Congress. “It is the Senator from Indiana, the self-appointed representative of all the American people, the sole spokesman for the righteous and just,.that as- sumss to tell the people that the Presi- dent-elect is betraying their cause. “The question may come to Congress. If it does Congress will then have the option of reaffirming its former resolu- tion or modifying its stand to meet the necessities or justice of the situation.” PARAGUAYANé CLAIM GRAN CHACO VICTORY By the Associated Press. ASUNCION, Paraguay, January 25.— The - Paraguayan minister of war an- nounced today that the bodies of 190 soldiers of the Bolivian 41st Infantry had been counted on the battlefield since the victory which the Paraguay- ans asserted they had won in the Gran Chaco yesterday. Unofficial reports last night were that a Paraguayan ca it had routed a mimen:' Bolivians caus- ‘Were |ROOSEVELT SEEN SPONSOR OF PLAN T0 DEVELOP RIVER (Continued Prom First Page.) plan. . The chief of engineers made no effort, however, to outline a policy. but merely to submit information. In his letter of transmittal, Gen. Brown sald, referring to the estimate of cost: “This sum is to be in no wise con- fused with the cost of any project to be executed at the expense of the United States Government. It is & vast plan possible to a proper combi- nation of private enterprise and public works.” In a general way, the development of the valley of the Tennessee River and its tributaries must depend upon the development of navigation, for which Congress has a plan and for which it has made provision in part. With proper navigation facilities it will be possible to supply cheap transportation which should be followed by the devel- opment of industries. With cheap transportation and cheap power, coal and other natural resources at hand, the basin of the Tennessee River is re- garded as capable of a very great in- dustrial development. The extent of the Tennessee River and the territory through which it flows are very great.' The river is formed by the Holston and French Broad Rivers in the east central part of Tennescee. It flows successively southwest, we:t and north through parts of the States of Tennessee, Alabama and Kentucky to the Ohio River. It is 652 ;nilu long and has a fall of about 500 eet. 640,000 Square Miles. ‘The drainage basin has an area of 640,000 square miles and a population of about 2,000,000. While the basin is at present largely devoted to agricul- ture, it contains important mineral de- poeits, particularly ccal, limestone and phosphate rock. The two most im- portant cities in the basin are Knoxville end Chattancoga, Tenn. The Tennessee River is navigable and its entire length is under improvement by the Federal Government. 1f the Government is intent upon the improvement of navigation without re- gard to further development of water power, it can accomplish its end through the construction of a number of low dams. If, on the other hand, the Government wishes to provide for pow- er development, as it may at half a dozen or more peints other than Muscle Shoals, higher dams will be necessary. This is a matter which Congress will have to determine. Senators, basin, who accompanied President-eiect Roosevelt on his recent trip to Muscle Shoals, although they declined to quote Mr. Roosevelt, expressed themselves as greatly pleased with the attitude of Mr. Roosevelt toward the development of the Tennessze Valley. They be- lieve that his attitude toward this development may be a criterion for large projects in other parts of the United States. U. S. Owns Projects. Flood contrel in the Tennessee Basin, as propcsed in the program of de- velopment, would result in the saving of hundreds of millions of dollars over a period of years, while the damage done by ordinary floods is mnot great, the flood of 1926 caused damages esti- some of them from the | Statcs which embrace the Tennessee | ROOSEVELT SLENT | ON BARUCH Vi Banker and President-Elect End Study—Cabinet Post Rumored. By the Associated Press. ‘WARM SPRINGS, Ga., January 25— Two days of intensive study of the world economic situation with Presi- dent-elect Roosevelt were concluded here today by Bernard M. Baruch, New York financier. The New Yorker smilingly declined to answer the question whether he would be' a member of the Roosevelt cabinet. Nor would he discuss the details of his long talks with the President-elect. It was believed war debts, which come up right at the start of the new ad- ministration, and the railroad problem el upperl!hl:t. ause . Roosevelt is to use his Secretary of State as h{s“nfl‘;ht- hand man in the forthcoming negoti- aticns with the foreign nations on debts and tariffs, the speculation persists here that Mr. Baruch or Owen D. Young will be the man he selects for this post; but it is only speculation. Cancellation Shelved. Attempts to draw out Mr. Roosevelt and his adviser on the stories coming from abroad about the demands and attitudes of the other powers on debts and economics bring only smiles here. There is no doubt Roosevelt has his program and that it does not include cancellation. of the debts, but that is all that is known. He will do his own trading. The railroad situation continues a topic late today with Walker Hines, war-time railway administrator, com- ing in. Closely watching the perplexing rail- road problem, Mr. Roosevelt is ready to put into operation the principles he enunciated in hic campaign. The first calls for the Government to announce “its intention to stand back of the rail- roads for a specified period.” ‘The Rooseveit program calls also for revision of Federal laws on receiver- ships, consolidations, regulation of motor bus traffic and Federal control over rail- road “holding companies.” Despite the intense interest of Roose- velt in the railroad situation, there is { no sign that he would sanction a period | of Federal ownership and operation. Baruch remained over for today's meetings, which were joined in by | Swagar Sherley of Keniucky, one of the economic advisers of Roose: 1 William H. Woodin of New York, president of the American Car & | Poundry Co., who has been ccnsuliing with Roosevelt on railroads, arrives to- | morrow. An emissary of Mr. Baruch informed newspaper men last night after a talk with him that there was no connection between his visit and those of the rail- | road experts. Finds Werking Basis. Meanwhile, Mr. Roosevelt has a work- ing basis through the forthcoming meetings with Great Britain, Italy, Czechoslovakia, Finland, Latvia and | Lithuania, who met their installment, to | negotiate an understanding con the World Economic Conference. He will | mated at $2,650,000. Still larger floods | are possible and it has been estimated ! insist, most certainly, on something that occasionally, perhaps, once in se from this parley in return for uebt relief. | eral hundred years. damage amounting to $14,000.000 might be done. The Government's present interests in the Tennessee Valley, outcide of the development of the river for navigation, are found at Muscle Shoals, where it owns a waterpower plant and a fertilizer plant. The plants at Muscle Shoals were built under tne authority of the na- tional defense act of June 3, 1916, for the production of nitrogen and other products for munitions for war and for the manufacture of fertilizer for agriculture in times of peace. The problem of what to do with the Muscle Shoals properties has been be- fore Congress continuously in a num- %‘r of forms every since the World ar. in the neighborhood of $165,000,000 there. At present the power plant is being operated to a limited capacity and the Government has a contract with the Alabama Power Co. to take such power as it needs, with the stipulated mini- mum payment to the Government per annum of $560,000. Since 1925 this company has paid the Government $4.903,393 for power generated by the dam. In one vear the payment was more than a million dollars. The pres- ent capacity of the power plant is 261.- 000 horsepower, with eight turbines and generators installed. There is a pos- sibility, however, of a very greatly in- creased power production. Private Power Plants. Private power plants more than a score in number with a considerable capacity for power production have been installed. The Alluminum Co. of Amer- ica and the Tennessee Electric Power Co. are among the concerns which have mafiie recent power developments in the valley. One further development which has been urged upon the Government in connection with the Muscle Shoals plants is the proposed Cove Creek Dam in the Clinch River. This dem will be 225 feet high with a reservoir of 83 square miles. It was estimated a year or two ago that it would cost $34,000,- 000. With a reduction in prices, this dam, it is said, may now be constructed at $30,000,000. It would more than double the amount of primery electric power now available at the Wilson Dam, Muscle Shoals, 2nd at all other dams on the Tennessee River below it. Also it { will contribute greatly to the navigation of the river. It will aid in controlling in a large measure the floods on the ‘Tennessee. ‘The construction of the Cove Creek . Dam would insure a more even flow of water and a more even development of power throughout the year at the Muscle Shoals plant. ‘War-time Value. Senator Norris of Nebraska, who for years has fought for Government op- eration of ‘the power and fertilizer plants at Muscle Shoals on a more ex- tended scale, is expected to reintroduce his bill for Government operation at the coming sersion of the new Congress. His bill was twice defeated by the fail- ure of the late President Coolidge and of President Hoover to approve of it. His proposal is for the sale of power to municipalities, countiss, State and farm organizations at rates to be fixed by the Fed<ral Power Commission, if setisfactory contracts cannot be made with private companies. So far as the fertilizer plants are concerned, the Nebraska Senator proposes that they shall be run as experimental stations. It has been contended that nitrates can be produced more cheaply by other methods than the process which has been for use at Muscle Shoals. However, it is contended by the military authorities that in the event of war the Emblmy of the producticn of nitrates great quantities at Muscle Shoals for use in making munitions would be of inestimable value to the country. —— i OCEAN YIELDS BODY Son of Rich Manufacturer Fell to Death in Plane Crash. a trawler was sold 'S ety Eagland, for $10,- Tecently § » of in K 0. e, n The Government has expended ! The speech of Neville Chamberlain, iBrlL\sh finance minister, rcaffirming the | British attitude of all-urcund {tion of war debis and reper | brought no responce from Mr. | velt, who has his cwn ideas ca going about the world economic tang.c. " The announcement that | Roosevelt, son of the late Republican | President, Theodore Foosevelt, is ac- | companying Frankiin D. Roosevell on his forthcoming fishing cruise in South- ern waters, caused som: speculation here, for the two Roo:zeve.t .amilies certainly have been on opposite sides of the political fence. However, both Kermit and the Presi- dent-elect are distant relatives of Vincent Astor, who is host of the yachting trip. His yacht, the Nourma- hal, will be used for the 10-day voyage at_sea, begzinning from Jacksonville, February 4. Other guests include George St. George Tucker of Tuxedo, N. Y. an- other Roosevelt relative; Judge Fred- erick Kernochan of the New Yor City Court of Special Sessions, Gus Gen- nerick, personal aide, and two secret service men. TAMMANY FOE INVITED. Justice Kernochan, Yacht Guest, Re- cently Attacked Leaders. NEW YORK, January 25 (#).—Those who like to play at the game of figur! how political winds are blowing reas with interest today that Chief Justice Frederic Kernochan of New York's Court of Speeial Sessions is going on a yacht cruise with President-elect Franklin D. Roosevelt. The interest centered on the fact Justice Kernochan recently aimed a blow at the chin of the Tammany tiger. In a speech interpreted by newspapers as an ‘“open break” with Tammany Hall, the judge, an independent Demo- crat, said he sent a $50 campaign con- tribution to Temmany and it was re- turned as “too cheap.” He was informed, he said. that “other judges give $500 or $1,000.” The inci- dent, he declared, illustrated “‘the re- spect that a political organ:zation feeld for one of its own party.” He also disclosed that when the $50 check was returned to him, he made it over to the campeign fund of the Indspzndent Judges' party, which had entered two candidates against the bipartisan' Su- preme Cowrt candidates, Samuel H. Hof- stadter and Aron Steuer. There has been much speculation as to the status of Tammany Hall with the incoming administration at Wash- ington. The question whether the in- vitation to Judge Kernochan to accom- pany Mr. Roosevelt on a 10-day cruise aboard Vincent Astor’s yacht has any political implications was one that could receive no definite answer, although it rovided a topic for discussion in po- itical circles. CROP LOANS MEASURE PASSED BY CONGRESS House and Senate Act on Bill to Provide $90,000,C00 for Fl{men. (Prom the 5:30 Edition of Yesterday's Star.) By the Assoclated Press. Congressional action was completed today on a bill to provide $90,000,000 to be loaned to farmers for use in pro- ducing their 1933 crops. Approval of a conference report on the measure by House and Senate in quick succession sent it to the White House. The President’s approval Is expected. Under the bill the o production loan legislation passed year is ex- tended to cover 1933. The Reconstruction in_return for a first lien on crops. ‘The measure provides that the Sec- retary may, but is not compelled, to require & borrower to cut his produc- tion by 30 per Another cent. cf the sum may on is that $1,000.000 be loaned for live stock feed in storm and drought- ustralia’s summer season, NOW open- the country’s