Evening Star Newspaper, January 26, 1933, Page 1

Fair, about 3 . afternoon est, 52, af at 1 a. WEATHER. (U. 8. Weather Bureau Forecast.) sl colder; lowest temperature u“dhegreut, tonight; tomorrow in- creasing eloudiness with rain beginning oruight. Temperatures—High- t 6 pam. yesterday; lowest, 40, today. Mull report on page 5. Closing N. Y. Markets, Pages 14 and 15 No. 22412, vost office, Entered as second cla: Washington, matter D. C. SENATE CETS AID BILL ALONG LNES ROOSEVELT FAVORS {Three Pilots Lost As Yawl Capsizes:., In Stormy Breakers 16 Coast Guardsmen Im- perilled—Gale Sweeps Atlantic Coast. Committee Drafts Compro- mise Containing Features of Two Measures. PROPOSALS OF WAGNER DECLARED ACCEPTABLE La Follette Says General Relief Action Will Be Sought at First Opportunity. By the Associated Press. A general relief program, understood by its sponsors to carry out suggestions | of President-elect Roosevelt, was agreed | upon today by the Senate Manufactures” Committee and a report of the measure to the Senate was authorized without a record vote. This latest proposition combines the La Follette-Costigan and Cutting bills which had aimed at different angles of the relief problem. Senators La Follette of Wisconsin and Cutting of New Mexico, Republican in- dependents, who supported the Demo- cratic presidential ticket, conferred at Warm Springs recently with the Presi- dent-elect and said they found him “sympathetic.” The new bill authorizes direct grants to the State with a total fund of $500,- 000,000 to be available, and increases by a like sum the notes, bonds and similar obligaticns which the corporation is au- thorized to issue. Board of Three Provided. It sets up a Federal emergency relief board cof thrce members to be ap- pointed by the President, the board to allocate the 'funds, certifying to the | Reconstruction Finance which shall act as a fiscal agent; what | payments are to be made. ‘The combined bill removes the pro- | vision of the La Follette-Costigan bi!l that the chief of the Children’s Bureau shall be the executive cofficer of the board and substi‘utes authority for the ! board to select its own executive officer. After La Follette and Cutting re turned from Warm Springs, they gave Rocsevelt’s views to Senator Costigan (Democrat, of Colorado), and then La Follette called the committee together to fermulaie a combined bill. The composite measure retains much of the La Follette-Costigan bill. but j discards the provision for floating a $500,000,000 bond icsue. 40 Per Cent for States. Provisions making available 40 per cent of the total fund for apportion- | ment emong the States on the basis of population are kept in thé bill, along with the stipulation the payments shall | not exceed two-thirds of the States’ relief expenditures from public and private funds. The remaining 60 ver cent, with the exception of the $15,000,000 for transient | rielief and $350,000 for administration, ! is set aside as a reserve fund to be| allotted on the basis of need. | Both the transient and the other | Trelief moneys would be administered by ' the States under their own rules and regulations. Amendments Germane. La Follette told newspaper men there | was no_attempt to combine in the bill proposals advocated by Senator Wagner, | Democrat, of New York, for liberalizing | the existing relief machinery, but added | that amendments of this character, if offered on the Senate floor, “will be entirely germane.” Cutting, commenting on the incorpora- | tion of his transient relief prcposals ini the bill, said if the Wl failed of ap-| proval he would renew the fight for Federal help in this field by bringing up his bill separately. La Follette said the combined meas- ure would be reported to the floor as soon_as possible and action sought at| the first opportunity. AKRON FLEES STORM, GOES TO LAKE ERIE| Dirigible Reports It Is on Way Back to Lakehurst After Waiting Near Cleveland. | By the Associated Press. LAKEHURST, N. J, January 26— The Navy dirigible Akron, which flew into the Middle West to avoid a severe wind and rain storm in this area, re- ported to the Navy air station at 8 am. today that she was 30 miles northwest ' of Erie, Pa. Comdr. F. T. Berry, commandant at | the station, said he could not foretell when the Akron would return to Lake- Lurst. The ship, he said, returned to the station at noon yesterday after a brief!| training flight. Ground conditions | were such that it was thought inadvis- able to land, and the ship sailed & ay.‘ as there was no immediate prospect! that conditions would clear up. Then, as the storm approched, the Akron went northwest into New York State, passing over Elmira and Buffalo and proceeding out over Lake Erie. Plane Watch Ordered. CLEVELAND, January 26 (#).—The Department of Commerce radio station in Cleveland today broadcast a notice to transport planes to watch for the Navy dirigible Akron over Lake Erie. This is a routine procedure in foggy ‘weather as a means of avoiding pos- sibility of collision in congested air lanes. R. A. Dittrick. in charge of radio control at the Cleveland Airport, said ! the Akron had communicated with Department of Commerce radio station WWO at 11 am. saying she is now | heading back to_Lakehurst, N. ‘would pass over Bellefonte, Pa., shortly. The communication from the ‘Akron said the airship. had been drifting over Lake Erie to stay out of the way of airplanes. She gave her altitude as 3,000 feet. The Cleveland Weather Bureau re- portedvisibility bad in this area with a celling of 300 feet. There was no hint of a weather disturbance, how- ever. 100 Arrests Halt Meeting. CALCUTTA, India, January 26 (#).— Approximately 100 persons, including 40 women, were arrested today when they al to hold & meeting de- # a ban. The police charged group with. their lathis. . ROOSEVELT HUSHES | velt has clamped.down the lid on any d | solution that presents itself By the Associated Press. NEW YORK, January 26.—A pilot and two apprentice pilots were believed to have drowned today when their yawl, returning to the pilot boat Sancy’ Hook, capsized 300 yards off the shore 2t Monmouth Beach, N. J. The yawl capsized when it was swamped by big breakers. The craft was washed up on the shore at the beach in front of the United States Coast Guard Station at Monmouth Beach. The bodies of the men were not immediately recovered. The men were Pilot Hugh A. Mc- Intyre, 47, of Jersey City, N. J, and Apprentice Pilots Albert Strandberg, 21, of Port Richmond, Staten Island, and Charles M. Peterson/ 21, of Brooklyn. 16 Guardsmen in Peril. BEACH HAVEN, N. J., January 26| (P.—1hs 16-man’ crew of the Sos | Haven Coast Guard station on Little Egg Island, seven miles south of here, (Continued on Page 2, Column 6.) | | DEBTS DISCUSSION President-elect Prefers Lone Hand in Dealing With Europe. By the Associated Press. ‘WARM SPRINGS, Ga., January 26— A new game in international relations will be played by President-elect Roose- velt in taking up individually and sepa- heads the war debts question in March, | Abandoning the commission idea and | determined to take full and lone re- | sponsibility for the outcome, Mr. Roose- | discussion whatever about what he pro- poses—and no one knows what he has in mind. Silence even greeted the formal an- nouncement last night by Great Brit- ain accepting the Roosevelt counter bid for discussion of world economics in connection with the war debts. Of course, there was gratification at the response. Puts on Poker Face. ‘The same secrecy that covers his war debt plans applies to the economic con- ference which now seems likely to be held in Washington. Silence also met the declaration by Representative | Rainey of Illinois, House party leader, | against revision or reduction of the deb: payments. | Mr. Roosevelt has put on the poker | face. He apparently feels he is gctting into a game and he is going to let the other fellow do the guessing. ‘With the international situation com- manding front page attention yesterday as various statements from abroad were published, Mr. Roosevelt even called off the usual daily. interview with news- paper men. Meanwhile, he is going ahead on the tremendous task of organizing his new | government. Last night's meeting with Walter D. Hines of New York, wno is under consideration for director of the budget, was resumed today in com- pany with Swager Sherley of Kentucky, former chairman of the House Appro- priations Ccmmittee. Hines also is a native of Kentucky. Widespread reduction in Govern ment_expenditures is another job th President-elect is preparing to take full responsibility for, and he wants to find his budget director in order to get an early start. Hines told newspaper men after the | Roosevelt meeting that he had no an- | nouncement to make. As for his own views on the Government fiscal pro- gram, he said, “I do not favor any | legislation that will make it easier to borrow and spend money in these | times.” | ‘This declaration was made in re-| spense to inquiries as to his personal | views on proposals for bond issues for | public construction. Scores Bankruptcy Bill. Discussing_ railroads without com- | mitting Mr. Roosevelt, he expressed dis- satistaction with the latest form of the | bankruptcy Lill pending in CUnxresL' He believed the measure as it now | stands will tend to delay bankruptcy oroceedings rather than facilitate them. He believes there is some doubt on constituticnal phases of it. | Railroads, farm relier and selection | of a cabinet are other problems receiv- ing almost constant notice, although | ~ (Continued on Page 7. Column 1, | [ | he WITH SUNDAY MORNING EDITION Foening Star, D. C, THURSDAY, JANUARY 26, 1933—THIRTY-EIGHT PAGES. PRESDENT FAVORS INGREASHG TARFF TOBALARGE WONEY Tells Snell He Backs Action Against Countries of De- preciated Currencies. HOUSE REPUBLICANS VOTE TO RAISE RATES Hoover Also Discusses British Debt Note and Economic Parley With Minority Leader. By the Assoclated Press. Representative Snell of New Yok, . the minority leader, said today PNsI-[ dent Hoover was in accord with an agreement by House Republicans to seek action to raise American tariffs against countries of depreciated cur- rencies. He had conferred with the Chief Executive for nearly an hour, telling newspapermen they discussed also Great Britain’s note of yesterday on war debts and economic discussions to be had after March 4. Economic Problems First. Snell expressed the view that it would be better to discuss economic problems first with Great Britain and other debtor nations before making any settlement on war debts. Should the cebt question be settled first, he said, there would be less hope of gaining economic agreements satis- factory to the United States. Sources informed of Mr. Hoover's thought said yesterday the Chief Execu- tive felt stabflization of depreciated foreign currencies would aid in a so- lution of the economic tangle. ‘The President was reported to feel also that unless some action was taken to stabilize foreign currencies it might Corporation, | rately with the European government |be necessary for the United States to enter the European race to raise tariffs. To Snell, Mr. Hoover “expressed his pleasure” at the action taken by a caucus of House Republicans late yes- terday, at which a resolution was | adopted favoring action to make the tarlff more effective. Tariffs Depreciated. “I see no reason,” Snell said, “why we cannot force a vote at this session on scme of the bills now pending to bring about this effect. I recall Rep- resentative Rainey (the Democratic leader) saying last year that ‘the Re- publicans will not reduce the tariff and -h> Democrats do not dare to.” “The fact remains that our tariffs have been lowered by depreciated cur- rencles abroad. I favor the most direct action le, & resolution that would allow the Secretary of the Treasury to raise tariffs in proportion to the amount of depreciation in currency in the country of export. "“If T had my way, I would cut through all this red tape and say: ‘Mr. Mills, tomorrow you put that system into effect.”” Secretary Mills entered the Presi- dent’s office a few minutes after Snell departed. Asked his opinion on Snell's proposal to have the Secretary of the Treasury increase import duties in proportion to | the depreciation of foreign currencies, Secretary ‘Mills said “it could be done through the Tariff Commission. If suck a resclution were passed by Con- gress, the commission with its present | machinery and background of informa- tion could put it into effect within 60 days.” . Opposes Hill Bill. Before a House committee, mean- while, John J. Hopkins, special assist- ; the Secretary of the Treasury, | ant to opposed the Hill bill for automatic tariff increases against foreign coun- tries with depreciated currencies. “The logical way to approach this problem would be to have the Tariff Commission determine the proper rates,” he said. “Such legislation could wél direct prompt jnvestigatior to be made within 60 days. “Then the commission might be re- quired to report to the President, say- ing whether substantial injary was being done to the domestic producer. “The commission could well accom- pany this-report to the President with a recommendation for a change in duty.” Hopkins agreed the commission would need additional powers to handle the depreciated currency problem. House Republicans Meet. House Republicans late yesterday voted unanimous acvocacy of immedi- ate legislation to restore normal tariff protection against foreign countries Wwith depreciated currencies. They acted in closed conference only a few hours after it was learned that Presi- dent Hoover felt tariff increases might be the only recourse if currency stabli- zation were not obtained abroad. A resolution was proposed by Rep- resentative Snell and accepted with- out dissent. It urged “the enactment (Continued on Page 3, Column 6. “RECREDIVATION” IS SUGGESTED TO HEAL WORLD FINANCIAL ILLS Catch Word Used to Describe Method of Restoring, "*\" Frieness Nerovly & Exchange of Goods and Services. By thé Associated Press. URBANA, Ill, January 26.—Into the mass . of arguments for healing the world’s financial ills by inflation was hurled a new catch phrase today—a proposal to “recredivate” currencies of all nations as a basis for prosperity. It was made by Dr. Ivan Wright, Uni- versity of Illinois economist, who con- tends “fecredivation” would go a long way toward restoring normal exchange and credit relations. “When causes of the depression are summarized and proposed remedies an- alyzed,” he said, “the one sngs(&cuoqry “A revival of the exchange of goods and services for goods and. services, using a dependable money as a medium of exchange—with prices rising to costs of production, plus a fair profis. “What inflationists really want is re- expansion of credit to carry on these transactions in the -honored we have learned to enjoy as prosperity. This coveted goal, Dr. Wright said, can be won by restoration of stabilized currencies in countries now having depreciated currencies which, he said, “have been forced on them by loss ot gold and caused the decline of prices throughout the world.” Such currencies can be restored to| purchasing power parities with e: other and with the Americar) doll he declared, by two means—a giinvas. . | ment policy whereby creditor countries, would invest in the capital of debtor, nations, and “workable” tariff arrange- ments whereby goods could be ex- changed between countries in terms of value measured by gold. “With such restoration of sound cur- rencies and trade relations,” Dr. Wright said, “prices would rise to costs of pro- duction, and countries with overproduc- tion and stored-up surplus would find these decreasing and the volume of both exports and inc; 3 “This is the solution wanted even by the reformers, who are offering so many solutions under the name of so- called inflation. “Reducing the gold content of the dollar, increasing the amount of paper currency, restoring silver to free coin- age—none of these accomplish what is wanted—namely, restoration of the ex- price level equal to All suggested inflation remedies, Dr. Wright declared, “defeat and delay this very recovery of the exchange and credit system, because inflation would destroy confidence and values, and still runt:er aggravate present maladjust- ment.” He said he had found many “recredi~ vaticnists” in thought or theory among {leaders in both mejor parties, as well Chicago cmong + New York and benkers, - SIX ARE SUSPENDED BY STOCK EXCHANGE Members Dropped for Month | to Three Years for Paying Gratuities for Information. By the Associated Press. i NEW YORK, January 26.—The New | York Stock Bxchange, in one of its| most sweeping disciplinary actions ln‘i years, today suspended six of its mem- | bers for periods ranging from one month to three years. | Several of those suspended were members of the firms of Smeltzer, | Clifford & Co., or Ludwig, Robertson & Co., both of which withirew. as| clearing members of the Stock Clearing | Corporation today. ‘The suspensions were of traders pri- | marily -interested in bonds, and were for paying gratulties without the ‘ap- proval of the exchange to employes | of the exchange or other financial in- stitutions. . Private Trader Suspended. Edward V. Goerz, & private trader, was suspended for ome month. H. H. Murzler, J. R. Smeltzer and William B. Sagar, all of Smeltzer, Clifford & Co., were suspended for six months each. The most severe penalty was that| meted out to Alexander J. Rnberlsnn‘ jof Ludwig Robertson & Co.. Who was i suspended for three years. He has been | {a member of the Exchange since April| 4, 1929. Walter F. Seeholtzer of the! same firm was suspended for six| months. Neither of the two firms in-| | volved had out of town offices. Curb Members Fined. Both the Stock Exchange and the New York Curb Exchange have recently | inaugurated a drastiq campaign against | members for paying’ gratuities to em- ployes of the exchanges or of other members or financial houses, for spet cial services in obtaining quotations or information regarding orders on the {books. The Curb is recently reported to have levied fines against several of | its members, but no official announce- | | ment was made. Governors of the Stock Exchange acted under the section of the consti- | tution which provides disciplinary | | measures for members adjudged gullty | jof “conduct or proceeding inconsistent with just and equitable principles of trade.” Many Members Complain. It was said in brokerage circles that several members had of late become extremely dissatisfied with trading con- ditions prevailing in the bond market, where some firms seemed to be able to get better service than others. Clerks | have relatively greater responsibilities in bond trading than in stock trading, owing to the large number of issues of bonds, many of which trade infre- quently. For instance, it was pointed out that a firm doing a general commission business may distribute ils bond busi- ness over half a dozen different spe- cialists, and the firm's telephone clerks " (Continued on Page 2, Column 3.) BUILDING BLOWN DOWN | ON 100 CHAINED CONVICTS | cape Death or Injury in Wind- storm Early This Morning. By the Associated Press. HANOVER COURT HOUSE, Va., Jan- udry 26.—One-hundred colored con- victs, chained to their bunks in tne mess hall at State Convict Camp, No. 12, near here, narrowly escaped death or serious injury shortly after 2 o'clock this morning when the building 1 wreckage and there was no attempt to escape. One man, slightly injured, was taken to the penitentiary at Richmond for &uemswvu in_the buildin were ove but the live coals fel on a concrete floor and did not cause Congress May Vote $625,000 D. C. Relief In Bill Tomorrow Tax Refund Provision to| Be Stricken From De- ficiency Measure. A new bill carrying first six months of the present calendar year is expected to be passed by both the House and the Senate tomorrow and be laid before the President on Saturday. ‘When Chairman Byrns of the Appropriations Committee will ask for immediate con- sideration of this measure, with every assurance that it will be immediately assed. Chairman Byrns held a meeting of the subcommittee on the deficiency ap- propriation bill today at which it was decided to report to the full Appropria- !l;r}shmwflnlmwe tomorrow ‘t'l;:!: new bill whicl carry tely . 000,000, and - wi Tfimml with the deficlency bill Vetoed by the Presi- dent, except that it omits approximate- ly $28,000,000. for/ tax refunds. - This leaves_the bill exactly as approved by both House and Senate, with all con- troversial features eliminated. Chairman Byrns expressed confidence today that the full Appropriations Com- mittee will promptly report this bill, and that the House will just as prompt- ly approve it. He said he had every reasonabe expectation that it would be | before the President for signature on Saturday. i3 DE VALERA'S PARTY LEADS IN DAIL VOTE President May Be Assured of Re-election by Fianna ‘Fail Alone. By the Associated Press. DUBLIN, January 26.—Incomplete returns indicated today that President Eamonn de Valera's party, the Fianna Fail, won a decisive victory in Tues- day’s election of a new Dial Eireann. He may be assured of re-election to the presidency without needing the votes of any other parties. The Fianna Fail—/| the party which has fought for com- plete independence of Ireland—has never had a clear majority in the Dial in the 10-year history of the Free State. The Dial elecied De Valera President for the first time last March 9 as the result of a Fianna Fail-Labor party combine. At 5 pm. as the count of the vote proceeded, De Valera’s party had 33 seats in the new Dail, former President Cosgrave's Opposition, 16; the Inde- pendent party, 6; the Center party, 3, and the Labor party, 2. President De . Valera, thus had a majority of 6 seats over all other parties combined. ‘Counting the Labor members as his allies, he had 10 more than the combined opposition. Last February’s election of the seventh Dail returned 72 of the Fianna Fail, 57 of Cosgrave's _party, and 7 Labor, 4 Farmer and 13 independent members. De Valera was elected President three weeks later, 81 to 68. ‘The early returns indicate a bigger Flanna Fail plurality. De Valera hoped for a clear majority when he called the election more than three weeks ago. The Fianna Fail, however, was strengthening its position in all dis- tricts and a slump in the Cosgrave strength was indicated. His party has been satisfied with the Free State or- ganization as an integral part of the British Empire and campaigned for liquidation of the present tariff war between England and the Free State. De ' Valera increased his personal vote in Clare County more than 50 m cent. Cosgrave lost many votes in constituency, Cork. Vice President Sean O'Kelly doubled his poll in Dublin, and other Fianna Fail ministers, Sean Le- mass and S. Macenee, notably, recorded remarkable increases. O'Kelly’s vote (Continued on Page 2, Column 1. b it 5 : GALSWORTHY UNCHANGED N, January'26 (P).—A bulle- trying | tin last night from the bedside of John Galsworthy, British novelist, said there been no in his condition Yeggs Clean Out Bank. DOBSON, N. C., January 26 (#.— Yeggs blew. the v-ulm the Bank of Dobson early escaped with the institution’s en estimated Ab-between $9,000 $10,000, 2 Mr. is no better fortunately he is no worse. Earlier in the day it had been re- Sery erave conaiion and. ihat he wia an followed upon & $625,000 for | emergency relief in Washington for the | the House meets tomorrow | BEER REFERENDUM - URGED IN DISTRICT Proposal Made by Lusk as House Committee Concludes Black Hearing. A city-wide referendum to test public sentiment in Washington on the beer question was suggested today as hear- | ings on the Black beer bill were con- |cluded before the House Judiciary Subcommittee. No action was taken on the refer- endum proposal, made by Rufus S. | Lusk, of the local branch of the Cru- | saders. | “During these hearings,” he told the | subcommittee, “the drys have repeat- | edly said they represent the sentiment |of “this community. Let us analyze | that - statement. They have organized | the Committee of 100 to protest against | legalized beer in the District. The names of those who sponsor this move- ment have been published. Of the 107 on the list, 42 are ministers, 8 are | professional drys, and of the remaining | 57. not more than 8 or 10 are really | well-known in Washington. o e T, T e , have more , members in | the’ District. “We are perfectly willing to test pub- lic opinion with official sanction. Twelve States had referenda on prohi- | bition last year. It is a matter of rec- ord that all of them indicated over- whelmingly that they were through with the “noble experiment.” The same definite test of public opinion could be made here. “We are perfectly willing that Con- gress should authorize a referendum at which citizens of the District could vote on these tiree questions: (1) Shall the Sheppard bone-dry act be repealed? (2) Pending the repeal of the eigh- teenth amendment, shall the sale of Shall -Congress adopt- a modern, rea- sonable system of liquor control suit- able for the District of Columbia. to becomne effective if and when the eigh- teenth amendment is repealed?” Mr. Lusk also submitted to the com- mittee the results of a newspaper poll on beer. ing beer were received, and 303 in op- Pposition were received. Former Gov. Robert Cooper of South Carolina, repre: MAJ. BEET, DETECTIVE, KILLED IN AUTO CRASH Former Scotland Yard Investigator Served With Secret Service During World War. By the Assoclated Press. KEANSBURG, N. J, January 26— Maj. Thomas Beet, said to have becn a former Scotland Yard investigator, was killed today when his automobile col- |lided with another. His home was in Leonardo. 2 Maj. Beet, who was about 70 years of age, was for five years a special investi- gator for the New York Journal legal staff. He left the employ of the news- paper last Summer and engaged in sim- ilar work for a private firm in New York. He saw active duty in several wars and was connected with the secret service during the World War. He was born in London and came to this coun- try in 1905. beer be legaiized in the District? 13)l He said. 30,115 ballots favor- | E Associated service. Yesterda; *kd R.F. C. LOANS MADE DURNG FIRST FIVE MONTHS REVEALED LGarner Gives Out List of Grants Prior to July 21 Despite Objections. TOTAL OF $90,000,000 RECEIVED BY DAWES BANK $64,000,000 Advanced to Institu- tion in San Francisco and $32,- 500,000 to B. & 0. Railway. By the Associated Press. The House of Representatives and despite strenuous objections from Re- construction Finance Corporation mem- bers—just how that huge Feceral relief agency pledged $1,195.000,000 in five months to help business try to get on an even keel. In compliance with a special resolu- tion adopted by the House, the corpora- tion sent to Speaker Garner a state- | ment showing each loan authorized by |tke R. F. C. between the date of its creation on February 2, 1932, and July 21, 1932 |last Spring, Garner made the report public. Pressure had been exerted to | have the report given only to members of Cengress. on the ground publication would be harmful to the borrowers. | The Speaker denied this and held that since the loans granted after July 21 <‘men|. to the original R. P. C. act the others should be, too. The later loans lhal‘e been made public monthly since | July. $90,000,000 for Dawes Bank. | 'The report divulged that the much- | discussed loan to the Chicago Central | Republic Bank & Trust Co,, with which Charles G. Dawes was _associated, amonnted to $90,000.000. It was ad- | vanced in two installments last June, | two days apart, the first amounting to | $16,000.000 ard the second, $74,000,000. | Ancther cf the large loans went to |the San Francisco Bank of America, | which was authorized to borrow $64,- 000,000. A $30,000,000 loan to the Bank | of Ttaly Mortgaging Co. of the same | city was shown to have been authorized, while the Prudence Co. in New York got $20,000,000; the First Central Trust Co. of Akron, Ohio, $18,000,000; the Union Guardian Trust Co. of Detroit, $16,150,000, and the Union Trust Co. | of Cleveland. $14,000,000. | Railroads likewise were aided. being [told they could borrow $224,147,000. Of | this..$32,500. was allowed the Balti- | more & Ohio and $27,500,000 went to | the Pennsylvania. $154,000,000 Loans in December. . Other loans—approximately 11,000 of | them—in amounts down to a few thou- | to coast. | _Along with this special report, the corporation submitted the monthly statement on its December activities. Loans approved and money allocated in that month totaled $154,000,000. This latter analysis showed that at " (Continued on Page 3, Column 7.) 'MICHIGAN SHUNS STATE RELIEF PLAN EGov. Comstock Reveals Direct Aid to Local Welfare Groups May Be Avoided. | | | By the Associated Press. LANSING, Mich, January Direct State appropriations for local ‘welhre relief may be avoided, Gov. Comstock said today. He had two | welfare measures ready for introduc- | tion in the Legislature, and said sub- sequent bills carrying appropriations “probably will not be necessary.” The Governor believed Reconstruction Finance Corporation loans, plus .a proposed $8,000,000 Federal advance for & “work relief” highway program would tide most communities over. The bills he planned to affer were confined h;gely to legalizing steps already taken. The Legislature pushed tax relief proposals Wednesday. The Senats Finance Committee reported, with a recommendation that it pass, a bill to suspend all delinquent tax sales for one year, and announced it is prepared ta report at once a bill already approved by the House, repealing more than $9.000,000 of appropriations for insti- tutional buildings and improvements. After a two-day hearing, House and Senuate College Commlittees decided to introduce a concurrent resolution providing for an investigation of Michigan State College. 26— By the Associated Press. Railroads have paid back $11,722,149 of the $218,944,533 they borrowed from the Reconstruction Finance Corpora- tion during the first five months of its existence. along with other details of loans granted by the rellef ‘agency from February 2, 1932 to July 2. A total of $224,147,409 for railroads was authorized, but $5,112,856 has not yet been disbursed. The corporation also made it known ‘The figures were made public today Y RAILROAD COMPANIES REPAY $11,722,1499 OF LOANS BY R. F. C. Corporation’s Report for Its First Five Months Shows $218.944,533 Lent to Lines. cluded in these was the $12,800,000 to the Missquri Pacific last March, which was approved reluctantly by the Inter- state Commerce Commission. ‘The basis for commission objection was the fact that a part of the money was used to take care of half a loan of $11,700,000 made to the road by New ork banks. J. P. Morgan & Co. had asked for payment by April 1. A total of $17,100,000 was loaned the )ll.l.wun‘;:tlflc by the Reconstruction Corporation. Other large loans set out in the re- port to the W& were: $25,500,000 to (UP) Means Associated Press. the country were told in detail today— | Following the policy he insisted upon (had been published under an amend- | sand dollars were authorized from coast | The only evening paper in Washington with the Press mews Circulation, 117,960 TWO CENTS. HALE ASKS UNITED SENATE T0° RUSH SUPPLY MEASURES Both Parties Urged to Co- operate in Providing Vital Federal Funds. ACTION ON PAY SLASH | LIKELY TO BE DELAYED Passage of Legislation Impossible Without Hearty Effort, Chairman Says. As the Senate began work today on | the Treasury-Post Office appropriation bill, including the general economy pro- gram, Senator Hale, Republican, of Maine, chairman of the Appropriations Committee, appealed to both parties in the Senate to unite in putting through all of the regular annual supply bills at this session, rather than allow them to go over to the special session. The economy features, including the proposed new pay cut of 123 per cent on salares throughout the Government | service, are at the end of the pending bill and for that reason probably will not be reached for action today. The immediate discussion will relate to the cetailed items fcr the Treasury and Post Office Department. Co-operation Necessary. Reminding his colleagues that less than six weelis of the present Congress Temain, with all of the departmental supply bills still awaiting Senate action, Senator Hale said the passage of all these bills in the remaining time will be impossible “without the hearty co- cperation of the Senate—all of the Senate.” L “Should all or any of these bills fail of passage before March 4,” Senator Hale continued, “they must, of course, be passed before July 1, or resolutions to continue last year's appropriations be enacted if the Government is to be kept up. That an extra session of Congress will be called before July 1 is probably true. That at such an extra session it might be found possible to consider before July 1 the necessary appropria- tion bills that this Congress has failed to pass also may be true, but why any patriotic Senator—and I believe we are all patriotic according to our lights— should wish to put over to this extra session these appropriation bills, is be- { yond my power to conceive. Cites War-Time Spirit. “A clear fleld for the consideration of very vital legislation will be needed and the shorter the time that the Con- gress stays in session, the better it will be for the business of the country.” Senator Hale said that during the World War sessions of Congress, politics were laid aside and Democrats ancd Re- publicans worked together to bring the country through the crisis. “Just as serious a crisis, perhaps eve a more serious one, faces us today, Senator Hale said, “There is just as much call today for us to lay aside poli- tics and fight shoulder to shoulder with members of opposing political faith to bring our country through this financial crisis gs there was in 1917 and 1918, to bring us through the war crisis. “Naturally, as a Republican, I favor- ed last Fall the retention of my party in power. I believed my party was best fitted to bring this suffering country back to prosperity, but the people of the country decided otherwise. By an overwhelming vote, they put the Demo- cratic party in control of the Govern= ment, and I can honestly say that I hope they make a success of it. The future of the country may well depend upon their making a success of it and I for my part say Godspeed to them. Will Avoid Politics, He Says. “I may or may not suppcrt the measures that their program, when they have determined upon it, will call for, but I hope and trust that politics will not influence my decision. And espe- clally I hope and trust that neither I nor any other Republican Senator will, for the seeming sake of party advantage and to put the party in power in & hole, resort to any practice that will prevent that party from functioning and functioning promptly. The Demo- | crats of the Senate, I believe, want the appropriation bills pasced at this session of Congress so they may have a clear field for the difficult problems that will confront them at the extra session of Congress.” Turning to a discussion of the diffi- cult task of trying to balance the budget for next year, Senator Hale re- viewed the figures submitted by the i " (Continued on Page 2, Column 2.) \FRENCH DENY PART IN U. S. GOLD CRISIS Paris Bank Governor Declares Re- ports of Withdrawals in 1931 Entirely False. By the Associated Press. PARIS, January 26.—A flat denial that the Bank of France had liquidated its dollar holdings in the Autumn of 1931, or had done anything to aid the flow of gold from the United States, was made today by Gov. Moret at the bank’s annual meeting. “The bank,” said he, “systematically avoided intervention during a period of nervousness, and notably abstained from disposing of its dollar holdings |in the Autumn of 1931, during the course of which the United States had to meet important withdrawals of for- eign capital.” He said the gold holdings of the bank were increased during 1932 by $580 000,000, but the value of the bank's stock decreased from $15.40 a share to $8. The bank’s policy is extremely . prudent, he said, owing to the presence in France of a large amount of foreign holdings liable to sudden withdrawal. Mexico Names Arms Delegate. MEXICO CITY, January 26 (#).— Arturo Pani, Mexican consul gencral has been appointed to repra- . | sent this country in the Geneva Dic- lrnu’?ent Conference ¢onvening Janu-