Evening Star Newspaper, January 27, 1933, Page 2

T —p— FA-2 #%% THE EVENING STAR, WASHINGTON, D. C., FRIDAY, JANUARY 27, 1933. — Scene of Spectacylar Mid-Atlantic Rescue TWENTY-TWO OF CREW. TAKEN. FROM SINKING EXETER CITY. CHINESE REPULSED Division Parade Marshals IN FIGHT AT PASS| Strong Force Fails to Take Chiumenkow—Japanese Extend Air Raids. By the Associated Press. A strong Chinese force failed in an attempt today to drive Japanese troops from Cliumenkow, in the Great Wall of China, dominating the coastal route from China proper into the Chinese Province of Jehol. Japanese captured the pass more than-two weeks ago in preparation for their announced in- vasion of Jehol. Japanese planes made their sixth bombing raid in two weeks over North- east Jehol yesterday, breaking up a Chinese military concentration west of Kailu,” More than 30,000 Chinese troops were preparing for a clash in that re- gion. Japanese OccupyHeiho. Tokio learned today that Japanese troops have occupied Heiho, last impor- tant town on the Siberian border to be brought under the Manchukuo govern- ment. -The drive to Heiho, in the ex- treme norty, followed recent offenses to the Soviet border on west and east extremities of Manchuria. The Russian government denied Jap- anese reports that it had entered a se- cret agreement with China to strengthen that country's anti-Japanese boycott. Executions Explained. The mayor of Canton informed the Japanese consul at Hongkong that four men recently executed in Canton were “bandits” trafficking in arms. Previous reports were that the Chinese Natlon- alist government and the anti-Japanese Boycott Society approved their execu- tions as boycott violators. The League of Nations special com- mittee made some progress today in the drawing up of a report on the Sino-Japanese controversy which will include recommendations for League ction, *The Japanese war office at Tokio minimized the importance of the battle at Chiumenkow and said there were less than 2,000 Japanese troops in the Shanhaikwan area. JAPANESE TROOPS ATTACKED. Chinese Retreat Reported After Three- |5 Hour Battle. SHANHAIKWAN, China, January 27 (# —Chinese troops, which had been sathering for nearly a month at the Chiumenkow Pass, through the Great ‘Wall, 12 miles north of here, attacked & Japanese force holding the north end of the pass early today, but were re- pulsed after a 3-hour battle. Japanese reports said. the sttacking force was part of the command of Gen. Ho Chu-Ruo, who commanded the Chinese garrison at Shanhaikwan when the Japanese captured the city, on Jnfiua:)“ after that battle that the Japanese, leaving a_skeleton garrison ‘ere, moved up to the pass and seized the Northern Gates. It was explained that this was a measure of protection and not the prelude to an invasion of ehol Province. o The Chinese defenders of the North- ern Gate were driven off without much trouble to concentrate at the southern end of the pass. There they brought up reinforcements without molestation, ‘Since then Japanese cavalry detach- ments have conducted a series of expe- ditions along the border between Jehol and Manchuria, moving steadily north- ward toward Chinsi, cleaning out Chi- nese bands along the way. FLYERS BOMB ClflNESE- Operations Are Extended Farther Ioto Northeastern Jehol- TOKIO, January 27 (#).—Japanese military planes today had made another bombing raid over Northeastern. Jehol, extending their operations farther into that region than on any of the five pre- vious raids of the past two weeks. They bombed a Chinese concentration at a road junction southwest of Tien- than yesterday, indicating troops st Kailu had retreated to that point. The effect, of. the latest Taid was to force a further withdrawal of the Chinese. Japanese military leaders held they were threatening Tunglizo, just acrossd the Manchurian border. Much damage was caused in Taids on Kailu early this week and hea¥y punish- ment was reported inflicted on the Chi- nese. Meanwhile, Japanese dispatches from Mukden said todsy that Heiho, about 250 miles north of Tsitsihar, was occu- pled by Japanese troops last Wednes- day. This was the last important town on the Siberlan border to be brought under the Manchukuo government, Conclusion of the drive in the ex- treme north to Heiho was expected to permit the transportation of many troops to the Jehol front. CHANG'S INCOME HUGE. Banking $500,000 a Month in Canada, Japanese Estimate. By Cable to The Star. TOKIO, Japen, January 27.—About $500,000 monthly is being sent to Canada for deposit in banks there by Chang Hsiao-Liang, Chinese marshal, if today's estimate of the Japanese foreign office 1s correct. According to a roughly itemised valua- tion, the young marshal's patriotism in ‘running away has been incomparably more profitable than being overlord of Manchuria ever. was to him or to his more famous father, the late Marshal Chang Tso-Lin. “Marshal Chang's monthly income, since he settled in Peiping after the abandonment of his headquarters in Mukden (former Manchurian capital), is about 5,000,000 yuan (a yuan is worth about 22 cents) a month, while when he was in Mukden he never had anything like this.” the spokesman specified. “Out of that sum, 2,000,000 yuan is his share of the profits from the Jehol opium traffie, equal to the amount re- tained by Gen. Tang Yu-Lin, Governor of Jehol,” the spokesman continued, which also explains why Jehol province is such a prize. “In addition, Marshal Chang recelves thibute from Aumerous subordinate offi- cinls the same as in the days of the empire. The mayor of Tienisin alone pays him 100,000 yuan a month. Natu- rally Marshal Chang absorbs the legiti- mate sources of revenue, such as the maritime customs, the salt gabelle and the land taxes. “Somewhat more than half of the revenue, according to our reports, goes to maintain his es.ablishment and well- equipped army of 150,000 men. How- egm‘. he keeps about 2,000,000 yuan for himself each month and sends it to “¢anada for safekeeplng.” b " (Copyright, 1933y TROOPS MASS NEAR BORDER. 20000 Japanese Reported Preparing for Possible Attack on Jehol. PEIPING, China, January 27 (P).— Chinese reports today said 20,000 Japa- nese soldiers and additional Manchu- kuoan forces, further reinforced by Mon- golian bandits, are concentrating at ‘Tungliao, close to the Jehol border, for a possible attack on that province. At Chinchow, it was: reported, Japa- nese military Jeaders are discussing . plans _for the invasion of Jehol with four Japanese divisions and two divi- slons in reserve. Forelgn military experts here are of the opinion that no major operations in Jebol are likely un next month or early in March, % Rear Admiral Cary T. Grayson, chair- man of the Roosevelt Inaugural Com- mittee, yesterday named Maj. Gen. Paul B. Malone, chief of the 3d Army Corps Area (upper left); James A. ley, chairman of the Democratic Ndtional Committee (upper right), and Louis A. Johnson, national commander of the American Legion (lower) as division marshals for the inaugural parade. A fourth division marshal remains to_be named. Gen. John J. Pershing has been named grand marshal of the parade. BANKERS BLAMED FORLABOR STATUS Interlocking Directorates Are Traced to Show “Strangle Hold” of Financial Group. (Continued From First Page. banks, public utilities, insurance com- panies and other corporations, Frey aid “Private banks dominate or are in a position to dominate these public banks.” He listed the éight banks as the Bank of America National Assoclation, Bank of Manhattan Trust Co., Bankers Trust Co., Chase National Bank, Chemical Bank & Co., Guarantee Trust Co.. National City Bank and the New York Trust Co. The 310 directors in these banks, Frey said, hold 287 directorships in insurance companies, 301 in _other banks, 521 in public utilities, 585 in railroad, steamship, airplane and other | transportation companies, 846 in manu- facturing corporations and 120 in other corporations. Frey then listed 24 other New York banks whose directors, 6,250 directorships. To show what he contended was the dominant position held by private bank- ers in the affairs of commercial banks, Frey said private banking houses held directorships in commercial banks as follows: Brown Bros., Harriman & Co., 14. Dillon-Reed Co., 9. Goldman Sachs, 5. Hallgarten & Co., 2. Kissel Kennecutt & Co., 2. Kuhn-Loeb & Co., 4. Lodenburg Thalman, 1. Lee Higginson & Co., 6. J. P. Morgan & Co,, 12. noJ' I:enry Schroeder Banking Corpora- J.'and W. Seligman & Co., 4. Speyer & Co., 3. ‘White, Weld & Co., 4. Directorships Interlock. ‘These directorships, Frey added, in- | terlock “so that while Morgan has no directors in Chase, they sit with directors of Chase, who are directors of Morgan banks.” “To give an illustration of how these private banks tie up with the commer- cial banks and through them with other banks and corporations,” Frey | said, “the Chase National has on its borrd representatives of seven of these Private banking houses.” He listed the seven as Dillon-Reed, Goldman-Sachs, Kuhn-Loeb, Lee Hig- ginson, J. H. Schroeder, J. and ‘Seligman and White, Weld. “The directors of Chase,” he added, “hold 69 directorships in other com- | mercial - banks, 262 in miscellaneous corporations, 82 in 55 insurance com- panies, including 6 of 24 directors of the Metropolitan Life; 263 in manufactur- ing corporations, 133 in transportation companies, chiefly railroads, and 73 in public utilities, making a total of 855. “Do you think they can remember what companies they are directors of?" Chairman Norris asked. Director of 125 Companies. Frey replied that one of these di- rectors was a director of 125 companies and banks, adding, “I don't see how he finds time even to attend the meetings.” Frey said that Albert H. Wiggin, for- mer chairman of Chase Bank, “was the first banker to demand that wages be reduced” and that his influence spread to_other bankers. Wiggin, he sald, threatened a large publishing house that it would lose ad- vertising in its magazine if it did not abangon an editorial policy favoring maidftenance of wage levels. He listed banks, insurance companies and railroads in which Chase directors were represented, and noted that Wig- | gin was a direetor of several railroads | and that other Chase directors were represented on most of the boards of the big railroads. Bankers Blamed. After listing Chase directors’ tie-up with railroads as an example of all New York banks, Frey said: “Had the bankers beéen opposed to a demand for wage reduction on the railroads, there would have been no such reduction. “If bankers demanded the reduction the railroads had no alternative but accept.” < Directors of the National City Bank, Frey testified, hold directorships on 29 railroads. Washington Gas Control. “The principal activity of National City,” he added, “is not so much in railroads as in public utilities. There they hold 115.” Frey said he was attempting to show “the complete tie-up between private bznks, commercial banks and the mar- velous structure of holding companies over the producing utility corporations.” “The wealth produced by these com- panies, instead of going into lower rates or to the producing company, is lost in the maze of these holding companies. “One of these perfect mazes is the one built up by Chase, through the Chase Securities’ Corporation and others.” Frey gave an example of what he said was “how the Chase National Bank helped to milk the gas producing com- panies in Washington, D. C.” By “an intentionally complicated method” of interlocking directorates. He described a complicated set-up in which ngzin played a prominent part by which, he said, Chase secured control of the eight gas-producing companies in Washington and vicinity “in violation of the letter and spirit of the law.” Asserting that the practise of having directors of the large banks sit on the hoards of other banks and indastrial corporations was growing, Prey listed 15 New York banks whose directors, he safd, held 1762 directorships in 1899; 3,426°in 1913 and 5,324 in 1991, he said, hold | also | w. | FERRY LOAN PLEA CUT TO $42,000 Chesapeake Beach Railway Amends Application to R. F. C. Again. The Chesapeake Beach Railway Co.. which is seeking the aid of the Recon- | struction Finance Corporation in a pro- posal to establish a ferry service across Chesapeake Bay, has amended its loan application to the R. F. C. and now asks but $425.000, it was made known today, when the application was made public at the Interstate Commerce Commission. The company originally sought $900,000. $737,522 Cost Seen. In a letter to the Reconstruction Finance Corporation, Eugene Fox ex- plained that the cost of putting through the ferry project will be $737.522.71, which, he says, will care for the pur- chase of two ferry boats, payment for a terminal site on the eastern side of Chesapeake Bay, at Hudson, Dorchester County, and construction of docks and piers at both ferry terminals and dredg- ing at the eastern terminal. The west- ern terminus of the proposed ferry line would be Chesapeake Beach. Under the present plan, Fox ex- plains. the railway company will raise $100,022.71 by the sale of second-mort- gage bonds, whoe purchaser also will be given certain of the outstanding stock of the company now in the hands of the trustee in control. The builders who will get the contract for the two | ferry boats, will take $212,500 in sec- ond-mortgage bonds running for three years. The lcen sought from the R. F. C would be secured by a first mort- gage. Supported in Capital. It is the second time that the appli- cation has been amended. the company in December asking $525,000. The Chesapeake Beach Railway Co. has for four years been attempting to establish this ferry service and has re- cently been supported by Washington interests. The project. on the contrary, has been fought by the Claiborne-An- napoiis Ferry Co., which has protested to the R. P. C. against the loan being | granted and also to the Interstate Com- merce Commission, which must approve the loan. ARLINGTON BRIDGE_ ALLOTTED $294,675 Sum Provided for Continuing Work in Measure Reported to House. For continuing work on the Arlington Memorial Bridge project, an item of $249.675, as recommended by the budget is included in the independent offices appropriations bill reported to the House today. This is a reduction of $45.325 under the appropriations of $340,000 for the current year. The amount carried in the bill is for the purpose of completing the memorial entrance to the cemetery, the memorial avenue, leading from the bridge to the cemetery, the parkway approach at the Washington end and such other work as 1s necessary to bring the project t a “stand-by” status in conformity with the action of Congress last year in| eliminating from the estimate all items that had not been begun or con- tracted for. The Memorial Bridge act authorized a connection with the Lee highway project of the State of Virginia on the north side of the cemetery. The State is now considering approaching the bridge from the south side of the ceme- tery. There is included in the bill re- ported today & provision making $25,000 of the unexpended balance available for widening and repaving the present Mili- tary road from the memorial entrance to the southeast corner of the ceme- tery, where it will connect with the State project. The expenditure of this money is conditioned upon the State of Virginia completing the construction of the Lee highway to the same point. ECONOMY LEAGUE ASKS DELAY ON VETERANS’ F}JND By the Associated Press. The House Appropriations Committee had before it m}:y an emphatic protest of the National Economy League against lrpraprht.m( any money at this session of Congress for the veterans’ tration. In an open telegram to -Chairman Byrns, Maj. Henry H. Curran, director of the league, sald this appropriation could be made as readily at the forth- com special session and in ample time for the fiscal year 1934. He also asked an opportunity to be heard on the deferment proposal. He added that “a considerable re- gard” for the coming leadership of Mr. Roosevelt “will prompt your honorable committee to wait until he takes office and makes his own responsible recom- mendation to the Congress with regrd to this particular appropriation which ordinarily consumes nearly one-quarter of- the”entire -Federal budget.” RED TAPE CHARGED | T0 HALSEV-GTUART Senate Agent Says Federal Auditors Were Excluded From Offices. By the Associated Press. CHICAGO, January 27.—As members of a Senate Committee today were pre- paring to peek into the books of & Chicago investment concern, an official of the firm said the records would fill & freight car and he didn’t know how ! the company's business could be con- ducted without them. The books were those of Halsey, Stuart & Co. They were demanded in subpoenas served yesterday at request of the Senate Committee on Banking and Currency, headed by Senator Peter Norbeck of South Dakota. Recently the committee has been investigating stock speculations and security trading by the | various Insull utility irms before their fall. Surprise expressed by C. T. MacNeille, vice president of the company, at the subpoenas, which are returnable Mon- day, brought a quick reply from James E. Stewart, chief investigator for the committee. MacNeille sald the company had) offered. the committee all the informa- tion it desired, but Stewart replied the| offer “had so many strings attached ! that it was impossible to proceed ef- ciently.” He said auditors had been told they must go over the records in the offices of the attorney of Halsey, Stuart & Co. and that such records as they desired would be supplied by asking the at- torney. Stewart asserted that MacNeille had been told that such procedure was out of the question and after consulting with officers of the firm had denied Government _ auditors access to the company's offices. HANDLED WARDMAN BONDS. Extensive Litigation Followed Sale by Halsey, Stuart. Halsey, Stuart & Co. handled the sale in 1928 of a refinancing bond issue on 10 Wardman properties here, which subsequently went into receivership and were sold at public auction. This sale has been the cause of extensive litigi- tion here. Several officials of the company were indicted .recently by a Federal grand jury in Milwaukee in connection with the sale of some of the Wardman se- curities. HEAD OF FIRM SUBPOENAED. Stuart Told to Bring Records to Sen- ate Hearing Monday. NEW YORK, January 27 (#).—H. L. | Stuart, president of the Halsey, Stuart Co., has been subpoenaed to appear be- fore the Senate Committee on Bankin, and Currency Monday and o bring &\ records pertaining to dealings between his companies and the various Insull companies, John Mariner of Ferdinand Pecora’s investigating staff, announced last night. Mr. Pecora, a former assistant dis- trict attorney in New York County, re- cently was named as chief of the com- mittee’s investigating staff. The announcement, transmitted by Mariner in Pecora's name, stated that the subjcena was issued at the request of Senator Peter Norbeck of South Da- kota of the committee- MARTIN J. INSULL’S ARREST IS ORDERED ‘Warrant Issued at Toronto—Mar- shal Leaves at Once for Orillia. By the Associated Press. TORONTO, January 27.—The arrest of Martin J. Insull was ordered here today. ‘The warrant was issued by Justice Kingstone at the request of E. W. Bayly, deputy attorney general of Ontario. marshal left immediately to serve the order at Orillia, where Mr. Insull lives. He is at liberty in $50,000 bail pending extradition proceedings under an indict- ment in Chicago charging him with embezzlement and grand larceny in connection with the collapse of the Mid- dle West Utilities Co. Mr. Insull was to have appeared for trial at Barrie on February 7. Hear- ings now will be held in Toronto. ROBINSON SCORED _ FOR LINDSAY VISIT TO SENATE FLOOR (Continued From First Page.) { he other lobbying around here by any | one else?” Robinson's resolution quotes from one adopted by Congress in December, 1931, in ratifying the Hoover moratorium. It recorded Congress against any debt re- vision. i position to the present Robinson resolution is bound to be pronounced, especially among the Democrats under | Robinson of Arkansas, who are looking to_the Roosevelt leadership. ! The text follows in part: “‘Whereas, it is currently reported and not denied that foreign countries in- debted to the United States have sought and are seeking conferences with officials of the Government of the United States for the purpose of re- considering their indebtedness to the United States, and “Whereas, the Congress of the United States has declared a definite licy concerning such indebtedness, an®®de- sires that sald foreign countries should not be under’'any misapprehension as to the definite position of the United States on- this que therefore “Be it resolved * that the said gegn_w:o a{icy is hereby reaffirmed be against the policy of Congress that any of the indebtedness of foreign countries to the United States should be in any manner canceled or reduced; and nothing in this joint resolution Il be construed as indicating s contrary policy, or as implying that favorable consideration will be given at any time to change in the policy hereby declared.” WOMAN, SNEEZING SINCE MONDAY, HELD IMPROVED Physicians Report Progress and Full Recovery Is Expected , Before Long. By the Associated Press. PRINCETON, Ky., January 27.—Her sneezing reduced to an average rate of from 12 to 15 times per minute, Mrs. Lonnie Dickson, 48, who has been sneez- ing almost continuously since 5 a.m. Monday, was reported today by her physicians to be somewhat better. Through treatments being admin- istered, the physiclans expect to stop the sneezing entirely before long. They sald her excellent physical condition enabled her to stand s “It is hereby expressly declared to|fom SEA RESCUE HERD REJECTS PRAIES Capt. Gtedman Gives Credit to Bravery and Stamina of 22 Men He Saved. By the Associated Press. NEW YORK, January 27.—A hero of the sea came to port yesterday with 22 men he had saved from a sinking British freighter in Midatlantic, but he would have none of the credit for the feat which old seamen had halled as “remarkable.” ‘The slim, young master of the Amer- ican Merchant, 36-year-old Giles Chesflr Stecman, stayed in his cabin while harbor craft of all kinds set up New York's welcome of whistles He talked quietly of the rescue. but he insisted the credit belonged to others. It was the accuracy of a radio di- rection finder, he said, that enabled the American Merchant last Friday to locate the battered Exeter City. after her bridge had been carried away, and her skipper, third mate and two mem- bers of the arew had been swept over- board by a 50-foot wave. Used 85 Tons of Oil And it was the pouring of 85 tons of oil onto the turbulent sea, 1575 miles east of New York, that enabled the American ship to get close enough to the floundering freighter to shoot a line across, send over an empty life- boat, and pull back the 22 surviving sailors. Those 22 sailors called Stedman a hero, but Stedman, who in 1925 saved 26 men from a sinking Itallan ship, held up a forbidding hand when one mentioned the word ‘hero,” much of his praise was for the “stam- ina,” the “fortitude” of the rescued men—those men who had faced likely death for hours while they scanned the skyline for sight of some rescuer. As Capt. Stedman, the five passengers or his ship, his own crew and the Ex- eter City survivors told their stories, they placed the crown of hero on many a man. ‘There was Henry Victor Lothian, the young British wireless operator, who stuck to his post throughout the “night of terror,” as some called it. Mountainous waves swept over the ship. Water often stood & foot or more deep in his little roam. He had to keep his batteries dry. His serial had been ‘A | washed away, but when dawn came he built a new one and then sent the 8. O. S. on which 22 lives depended. Surgeon Shot Line Over. ‘There was Joseph Gillls of Engle- wood, N. J., second officer of the Amer- | ican Merchant, who pored over figures and finally worked out the position of the Exeter City, several hundred miles from where the freighter's own rough estimate had placed her in messages. There was Dr. Cyril Bon Vaubman of Baltimore, Md., the American Mer- chant's chief surgeon, who, when his ship got alongside the frc'ghter, aimed a little brass cannon and sent his very first shot directly over the ill-fated Exeter City, thus connecting the two ships by 4,800 feet of line—every foot of line the American craft had aboard. There was Cabin Boy Raymond Lewis, 15, the youngest of the Exeter City crew, who worked all night bailing water with a bucket—“and he never whimpered once,” one of his shipmates said with a chuckle. Back on the American Merchant there was Chief Steward Frank Flowers of Boston, who bellowed across the ofly water and through the whistling gale directions to the little group huddled on the freighter's pitching deck. Injured Man Stands Watch. “I was so hoerse I could hardly whisper,” Capt. Stedman explained, “so I handed the megaphone to Flowers— you could hear that roar of his above any storm.” Then there was 20-year-old Alfred Howell, able seaman, the last man to see his skipper and the other three victims alive. He had been cut while pouring oil on the troubled water before the storm reached its greatest fury. Blood poison- ing had developed. His arm was in & sling. But he had stood watch from 8 to 10 p.m. “At 6 minutes to “I crept along the deck with a line and got the officers out. piped ‘Bridge gone. Stand by. Al hands on deck.’ Then we set for work. For hours—I guess it was about 15 hours—we kept busy. We didn't have time to pray or anything like that.” Old Timer Praises Mates. Up spoke a weather-beaten man with Xron-g‘ray hair- lef Engineer C. G. Roacl i “I've been sailing the sea for: 30 year, and I had two boats go down on me during the war, A sub got one and s mine the other. But I never saw & bunch gg’:ellmu BIW:“:"Y 50 jolly well. The 8s rain. And it looked near the end for all of us. “It was that cargo of china clay we had, you see. We couldn't pump out i Steagall LITTLE HOPE HELD FOR BANKING BILL Deéares Glass Measure Too Controversial for Quick Action. | By the Associated Press. Chairman Steagall of the House Banking Committee threw cold water on | the hopes of advocates of the Glass | banking reform bill for passage of the measure at this session with a statement last night that it involves highly con- troversial provisions and will require much consideration. Speaker Garner sald the measure would be referred to the Steagall com- mittee and added: “If we can get a re- port from the Banking Committee on the Glass bill, we may possibly get it bzfore the House.” is worthy of very careful consideration. After a conference with Garner, Stea- gall in a formal statcment said: “Of course, the Banking and Currency Com- | mittee cannot report such a measure | without " giving it the consideration | which its importance demands.” “It involves provisions that are highly controversial and embodies far-reaching changes in our banking law: e said, aqding the committee hoped to give it consideration “as soon as practicable under gxisting conditions.” Stegall recalled that several emer- gency measures, “including legislation for the relief of fArmers in danger of losing their lands and homes through mortgage foreclosures,” were being con- sidered ahead of the Glass measure, ZIEGFELD AIDE DIES Stanley Sharpe, 47, Former Gen- eral Manager, Dies at Home. NEW YORK, January 27 (#).—Stan- ley Sharpe, 47, who served as general manager for the late Florenz Ziegfeld and the Shubert brothers, died at his home in Great Neck, Long Island, yes- terday after a month’s illness. A native of New York, Sharpe worked first for Daniel Frohman in the box office of the old Daly's Theater. —_— FORMER VIRGINIAN DIES PALO ALTO, Calif,, January 27-(P)— Jacob Yost, 79, former member mfl,fl’nm Virginia and father of Miss of Yost, Stanford University dean women, died here yesterday. three terms in Congress after retiring as joint editor and owner of & newspaper at Staunton, Va. He 925. Miss Y widely and rolling deeply, about 32 de- grees. ® * ¢ Had to Act Fast. any water, because there wasn't any. | qui As fast as it poured in the clay soaked it all up.” Capt. Stedman told how the British crew, acting on messages he sent them, found & sextant, and, in lieu of paviga- tion instruments, helped the American merchant’s navigator settle their exact location. “Violent whole squalls were wi o .llm‘d the !;:1.";&’ it !0; two we hours to reach her, We were yawiing » He stressed that “it | of Con- | latures PPER: A lifeboat, held by towline, leaving the Exeter City with some of the 22 surviving members of its crew for the American Merchant, the rescue ship. The water between the two vessels is blanketed with oil to | make the going easier. The water was too rough for the lifeboat to make the way without a towline. Four men, including the captain of the Exeter City, were lost when a huge wave washed away the bridge. Lower: Capt. Giles Stedman, skipper of the S. S. American Merchant, who led in the rescue, photographed with William Bower, chief officer of the Exeter City, upon the arrival of the 8. S. American Merchant in rescue. New York after the —Wide World Photo. POLIGE PROMOTION LIST IS DELAYED Further Postponement Ap- pears Likely as Civil Service Continues Study. Continued postponement of contem- | plated promotions in the Police De- partment appeared likely today when | the Civil Service Commission failed to submit to Supt. Brown a certified list of members of the force eligible for advancement. | Maj. Brown had hoped to put the | promotions into cffect February 1, but said his plans would go awry unless the Civil Service Commission makes its report before next Tuesday. The com- mission has notified the police superin- | tendent the delay has been due to a thorough character investigation being made of the men eligible for advance- ment. |, The proposed promotions involve at {least 10 men. One of them is Acting | Capt. Milton D. Smith, assistant com- | mander of the Traffic Bureau, whom Maj. Brown will recommend for ad- vancement to the full rank of captain. Six privates are slated for advance- ment to sergeancies, and three sergeants are to be elevated to lieutenants. The vacancies in these ranks are due to separations from the service and positions which have not been_filled since last October, when Maj. Brown was elevated to the superintendency and B. A. Lamb was made an inspector and placed in command of the Traffic Bureau, P — VICTORY OF OHIO WETS FIRST IN MANY YEARS Btate Senate Approves Bill to Mod- ity Prohibition Enforcement Code. By the Associated Press. COLUMBUS, Ohio, January 27.—The first anti-prohibition victory in the Ohio Legislature in many years was won yesterday when the Senate voted ap- g;ovnl of a bill to modify the State pro- bition enforcement code. The vote wn_:_h 23 to 5. e measure approved was only & nibble at the prohibition en(orcemyenc code, but as attempts in previous Legis- to enact it failed by sizable majorities, the favorable vote heart- ened prohibition foes. The bill would S e S POXB mwfl Mu‘be: 4n violations, a secon to increase the of liquor which a physician m:;n t:’:“r:f scribe to a patient each 10 days from one-half pint to a pint, was sent back to the Temperance Committee for amendments to put it in proper form. —_——— WALTER JOHNSON GUEST OF HONOR AT DINNER Walter Johnson, former and gl‘fihl-u star of the Washington base team, who is & native of Kansas, est of hon _ ers will include Senator Mc- Gill of Kansas, Phil P. Campbell, for- mer Representative from Kansas; W. C. Lansdon of the Board of Tax Appeals, Chester Leasure of the United States Chamber of Commerce and Represent- atives Lambertson, Guyer, McGugin, Hoch, Strong, Sparks and Hope, all of Vice President Curtis. another Kan- BANKRUPTCY BLL VOTE SET MONDAY House to Suspend Rules to Rush Reform Measure to Senate. By the Associated Press. Plans to pass the McKeown-La Guardia bankruptcy law revision bill by suspending the House rules Monday were formulated today by Democratic leaders. Once the House gets the bill through, equally expeditious Senate action will be sought. Unless the bill is radically altered the belief at Capitol Hill is that President Hoover will sign it. The drastic suspension of House rules procedure also is to be rezorted to on the Glass-Steagall bill to broaden the base of paper eligible for reaiscount purposes at Federal Reserve banks. In addition, the Democratic leader- ship hopes to obtain approval of a one- year extension of the 1-cent gasoline tax, expected to return $137,000,000 in revenue in the next fiscal year. Speaker Garner told newspaper men there was no substantial opposition to the banxruptcy revision bill, continua- tion of the gasoline levy and the Glass- Steagall measure. He indicated he would permit all three to be brought up under a suspension of the rules on Monday. This proced- ure requires a two-thirds majority for passags of legislation. President Hoover recommended legis- lation along the line of the bankruptcy bill, designed to permit individuals and corporations. including railroads, to facilitate readjustments and reorgan- ization. ‘The Glass-Steagall bill, which permits banks to rediscount Government bonds for the issuance of currency, also is recommended by the administration. As enacted last year, it expires March 3. COTTON QUOTA PLAN LABELED SALES TAX AT SENATE HEARING (Continued From First Page.) provision of the measure and that a new principle to cover that product be written into it. This in general would provide that the Government instead of lending farmers money to plant the new crop of cotton as is done under crop production loan legislation, lend the money for pur- chasing outright on the current mar- ket the amount of cotton proposed to be planted. Anderson, in his testimony o) in, the bill, said: “A shot in the pnxz‘: g not going to go very far to relieve the difficulties of the farmer, and that is about all the bill has to offer,” he said. Enactment of this bill will greatly cur- tall consumption of cotton products from American mills, due to the fright- ful sales tax it involves. Predicts Buyers' Strike. “We will see a buyers' strike of & magnitude and on a scale never before witnessed. We will see chaos in the cotton industry throughout the Urited States. Many mills will cease operae tions entirely. “This bill will be a severe boo! to the farmer and one of the m vere blows ever struck him in the eilc t to relieve him by artifictally fixing ..i price.” “The biggest yelp of all will be heard from the consumer when he undertakes to buy cotton goods at the tremendously Increased prices that will result.” He predicted retail prices will go up 50 per cent on workshirts, 42 per cent on overalls, 34 per cent on bed sheets and 18 to 25 per cent on ready-made dresses. He said this “sales tax” wotlld total $1,000,000,000 & year. Anderson told the committee that under the bill it would be impossible to hold the export trade because as the bill s now written the tax would have to be paid originally, even though ree funded after it was established the cotton was not going into domestio consumption. Early Hearing Promised. An early hearing before the Senate Banking Committee was promised last night for the $1,500,000,000 “emere gency farm credit” bill sponsored by Senator Robinson of Arkansas, the Democratic leader. Within 24 hours after its introduc tion, consideration of the bill ahead of much other pending legislation was assured by Chairman Norbeck. Open hearings will be held. he said. Just when they will begin has not been determine Asked his opinion on the measure, { Senator Norbeck said “it is such a tre- fmendous thing t I haven't any opin- jon on it as He added that it would take a week of study to digest its_provisions and reach a conclusion. The bill would provide $1,000.000.000 to form a corporation to lend money to farmers. In addition more than $500,000,000 would be provided for strengthening the Federal Land Banks to enable them to take over sound farm mortgages wherever held, extend deserv= ing farmers’ payments and cut the interest rate. Besides the stated sums, the Treasury would provide whatever money might be needed to enable the land banks to ease up on worthy borrowers. Bill Offered in House. The views of the Hoover administra- tion on this measure may be made known at the hearings through repre sentatives of the Treasury Department, who probably will be called. In the House yesterday Representae tive Bulwinkle, Democrat, of North Carolina, introduced a bill to authorize the Reconstruction Finance Corporation to make loans totaling $1,000,000,000 to secure postponement of foreclosures on farm mortgages. His proposal would secure postpone-. ment for two years for farmers who are delinquent either in interest, prin- cipal or installments on principal, and would allow advances on unpaid delin- quent taxes in arrears for 2 period of more than one year, provided the taxes wer; due and unpaid prior to January 1, 1933. The advances would be made to farm mortgage holders, only after the corp- oration is satisfled that the mortagee shall have paid delinquent taxes. BOLIVIAN OFFENSIVE AWAITS FRESH TROOPS Decisive Battle Forecast for Con- trol of Fort Ayala, in the Gran Chaco. By the Associated Press. BUENOS AIRES, January 27.—While Asuncion reported yesterday that the Bolivian offensive against Fort Ayals in the Gran Chaco had ceased, presumably to await fresh troops, La Paz newspaper dispatches from the front predi & battle more decisive than the action against Fort Boqueron. Bolivian correspondents said that the attack of their army would be carried on with the assistance of the most mod- ern methods of war, and therefore they were confident Ayala would fall. The correspondents related new triumphs for the 41st Bolivian Infantry yesterday. The Paraguayans asserted this regiment was annihilated the day before. Fort Boqueron, one of the principal strongholds in the Chaco, was the pivotal point of some of the heaviest action yet seen there. It fell into the hands of the Bolivians several weeks ago,