Evening Star Newspaper, February 5, 1933, Page 3

A DETECTIVES HUNT GIRL'S ASSAILANT Maj. Brown Orders Intensive Aid Be Given Virginia in Lil- lian Carman Case. At the orders of Maj. Ernest W. Brown, superintendent of police, detec- | tives last night conducted an intensive hunt for the man who assaulted 15- year-old Lillian Carman of Ballston, Va., Friday night after supposedly em- ploying her as a nursemaid for his “two children.” Picked detectives, assigned by Inspec- tor Frank S. W. Burke, chief of detec- tives, went over the case with the girl, with the result she said a man whose photograph is on file in the “rogues” gallery at police headquarters resembled her assailant. They also developed the fact the as- sault was committed in Virginia and not in Maryland, as she had at first re- ported. Lillian, escorted by Detective Sergt. D. G. Fletcher, picked out a tourist camp near Camp Washington, Va, a mile west of Fairfax, as the spot to which her attacker lured here with Ppromises of employment. . At first she told police she thought the man had taken her into Southern Maryland, near Fort Washington. but when shown the cabin camp near Fair- fax, exclaimed: “That's the place!” TAX CHARGE PLANNED TO EXTRADITE JULIAN 0il Promoter Wanted in Oklnhoma‘: Mail Fraud Case, Said to Have “Jumped” to Canada. By the Associated Press. OKLAHOMA CITY, February 4.—| Herbert K. Hyde, district attorney, said | today extradition proceedings based upon an alleged income tax default would be brought against C. C. Julian, Irish-Canadian oil promoter, if he failed to appear here Monday for trial on a charge of conspiracy to violate Federal mail fraud laws, | Julian announced his intention to “jump” a $25,000 bond and seek refuge in ;:anada, in letters received here yes- terday. ‘While the extradition treaty between the United States and Canada does not cover mail fraud cases, Hyde said, he | believed Julian's return could be ar- ranged under the income tax charge. The prosecutor said the Government | " with_trial of the fraud case, more than 50 other in connection with operations of the C. C. Julian Oil and Royalties Co. The Government alleges that 15,000 ockhclders in the Julian company were mulcted out of $3.500.000. ABANDONS SELF TO TERM ON MALFEASANCE COUNT Former Pittsburgh Supply Head Fails to Appeal From Year Sentence on Charge. of Pitts- burgh's supply department, indicated to- day he had abandoned hcpe of escap- ing & year's sentence impcsed after he was convicted of malf; ce in office. Succop, accused of to-other then low bidd chase of city supplies, failed to file in | the Supreme Court an appeal from the decision of Supcrior Court at Philadel- phia confirming his conviction. This was the last day on which he could carry his fight to the high court. Only Gov. Pinchot now can save Succop from going to jail. Mayor Charles H. Kline, convicted | oa & single count of malfeasance, ap- pealed to the Supreme Court yesterday. FILIPINOS FACE BAN AT NAVAL ACADEMY | Special Dispatch to The Star. ANNAPOLIS, Md., February 4 —Fili- pinos will be banned from the Naval Academy when the islands are given their independence in 10 years, accord- ing to Naval Academy authorities. Filipino mess boys may still be used in the Navy, but their status would | have to be changed and instead of | coming in as American citizens they weuld come into the service under the same law that permits enlisting of | Chinese mess boys. At present the Governor General of | the islands is allowed to appoint one | Filipino for each class of the academy, who will be given instruction, bui will | ot be allowed to hold any commission or office in the service. - SPECIAL NOTICES. i OFFICE_OF THE ) L FIRE INSUR- ANCE COMPANY OF THE DISIRICT OF UMBIA, Washington, January 1. i e ammual mesting of ‘the MUTUAL FIRE INSURANCE COMPANY OF THE DISTRICT OF COLUMBIA will be held on the first Monday in February (the sixth proximo) at the office of the compapy. 1301 H street mencing ter of the company. tion of seven managers to conduct the af- fairs of the company is required to be held at_the above meeting. By the sixth article of the by-laws of the company it is provided: “At_the annual meeting of the company. in order shall be the appointment of a | chairman. ‘who shall conduct the meeting and election in accordance with the act of fncorporation. between the hours of 12 noon ard 5 p.m [ 44 500.00 S £.125.90 The snnual statement will be ready for distribution at the office of the company bout February 2. 10i:. By order of the board of managers: Lk L. PIERCE BOTELER. Secretary _ T WILL NOT BE RESPONSIBLE FOR ANY debtscontracted by _any one other than myself, FRANK BECKERT, Que st NG-DISTANCE_MOVING B {ALL xé?slern points. “Service since 1806." _.Dav ‘vidso: Transfer & Storai Co. 1117 H Nat. 0860. d “fix . “adjusted and FTER THIS DATE I WILL NOT BE RE- A TETote Jor any. debts cxcepl those con- tracted by me personally. BERNARD J. GALLAGHER. 613 Columb NOTICE 1S HEREBY GIVEN “A_Nu-way Wi . THAT_ YOU h or Lubri- c:_COOKING. . 'Call HONEY 3 NEED AN ELECTRICIAN, CALL VBN HO¥ Nhop on Wheeis, Ine. A com- plete shop on wheels brought to your door. No job too large, none too small service. Wisconsin 482 FROM_COLUMBUS. O} From New York. Fel MITH'S TRANSFER & VANTED—THE NAME A Taving ‘home workshop as hobby: ab- Ject is to .«ecur; mlerflefl;r lo‘l"lell{lvlllgl'!l:r.nl- ticlc; payment for namd > £d: your name neld In confidence. Address ox BT e D, INVALID ROLLING CHAIRS, FOR RENT OR ; complete line of new an 10 Ibs. POT. W ‘om Phila.. Feb. 7. ‘STORAGE GO 1313 OF PROMINENT 418 10th St N PLASTERERS & CI cal Union 96 will EMENT FINISHERS LO- hold_a special meeting Sunday, February 5, at 7 p.m. are Te- quested to be present. I WILL NOT BE RESPONSIBLE FOR ANY bills contracted other than mysel{. LEWIS R. WATERS, 1620 st st. n.W. L THE SUNDAY STAR. WASHINGTON, D. C., What Is “Inflaiim:l”" BY MARK SULLIVAN HIS article is going to be about “inflation.” It is an attempt to reduce “inflation” to an A B C explanation. Three or four years ago I should have said the word was forbidding; that the idea of the average man being willing to try to understand it was fantastic. But I have learned that the one topic the average man is just now mcst interested mogt earnest in trying to understand, of ideas and plans having to do with this depression and how to get out of it. There is a ferment of dis- cussion cf theories abcut business, even theories #tout social organizations and forms of government. Especially is | there ferment about money, about the disparity between debtor and creditor— ail the subjects embraced in what the cclleges call ical economy.” The word now flames through newspaper headlines, resounds in debates. Yet I doubt if, as yet, the {average man knows what it means, except vaguely—and to know inflation | vaguely is not to know it at all. | Speaking generally, the people do not understand “inflation” any more than they understood “technocracy” when it began to appear in the newspapers a few weeks ago. Scores of proposals having to do with inflaticn have been introduced in Congress, many by Senators or Repre- sentatives who are to be taken seri- oucly. The climax of discussion of it will come some time after March 4. It is known that nothing can be done abcut inflation in the present Con- gress. The bills are introduced in ex- pectation of the coming in of the new administration March 4, and of the special session of the new Congress which Mr. Roosevelt will call—the date of which is expected to be some time in April. So that the current interest in theories of finance is going to coincide with discussion of inflation in Con- gress, and with probable action on it by Congress. The action of Congress some time during the Spring, may be either adoption or rejection. Mid-'90s Recalled. When a wave of thought and dis- cussion about such a subject as infla- tion gets under way, it is apt to go far. In the mid-'9Cs there was, as now, a depression. ‘Then, as now, the debtor, especially the farmer owing a mort- gage, was in distres. Then, as now, discussions of thecries of money arcse, suggested dcvices about money. In that condition in the '90s, an obscure | man living in West Virginia named | William H. Harvey, wrote a pamphlet crudely bound in’ paper and crudely illustrated, which he called “Coin’s Financial Schcol.” That little book was said at the time to have sold in larger quantity than any other book Tom’s Czbin.” Indeed, Harvey's book | about the cruelties of the gold-stand- | ard dollar wes called “the Uncle Tom's | Cabin” cf currency. “Coin’s Financial School” had an immence influence. Its influence was in the direction of causing the aver2ge man to be per- | suaded that inflation was good. *Coin as the chief amcng | many influences, almost brought about adoption cf the “free and unlimited” coinage of silver, and almost carried William Jennings Bryan to the pre: dency 1896. The momentum of | “Coin’s Financial School” was arrested, | partially, when orthcdox economists and conservatives generally saw what was happening, &nd started a counter- wave of education about scund money. It is not teo much to say now that the battle of 1896 is on again. (Inci- dentally the book that Wiliam Jen- ning. Bryan wrote about the 1896 | fight was called “The First Batile.”) | T> avoid appearance of trying to say the censational thing, I should add not belicve inflation will be adopted. 1 should add again, however, that | many persons thcroughly well informed believe inflation will be adopted. most conspicuous place where this an- | ticipation prevails is in the financial | community, and bankers are notorious- | 1y apprehen:éve and nervous. In any event, whatever the doubt abcut adcption of inflation, there can | be no doubt whatever that agitation about it is ahead of us. Hence, the desirability of attempting to clarify what inflation is. Provides Definition, { “First, define your term:.” The word “inflaticn” is in great need of defini- n because it is used so loosely, means | different things to different men. Fo the purpose of this article, “inflation” means incresse in the quantity of meney. That is the broad definition, but it must be narrowed. For the purpose of | clarifying the word and the situation, | we had best begin with some elemen. tary facts. Because I must be brief, I| am obliged to omit technicalities and | Gualifications. What is aimed at here is a rough statement of basic facts. “Money” is of two kinds. They are: Currency money. | Credit money. (Or bank money.) “Inflation,” in the broad sense, means | to increase the quantity of either or | both these kinds of money. On the day |1 write this article, the quantity of currency-money in the United States is $5,676,000,000—call it six billicn. The quantity of credit-money is $45,- 852,000,000—call it forty-six billion. (I | take the total quantity of bank loans and installments as the total quantity of credit-money. There is inexactness in this, but it is not misleading and I must be brief.) To repeat: Currency-money . .a 6 billion Credit-money .. .. 46 billion It will be cbserved there is about eight times as much of credit-money as of currency-nioney. Therefore it is credit-money that is the more impor- tant to us. Actually, by far the largest quantity of business transactions in the quantity of payments made with bank checks is larger than the quantity made with currency. Now there can be inflation (that is, increase in the quantity) of credit- money and there can be increase in the quantity of currency. The two are very different. The former, increase in the quantity of credit-money is approved by the orthodox and the conservative. One may say increase of credit-money is not resisted by anybody. The con- servatives see no harm in it. And to radicals, so called, or debtors, increase of credit-money is as good as any other. Increase of credit-money would un- doubtedly lift us out of many of our | trov>les. It would increase prices of good-, land, everything. It would therefore make debts easier tg pay. ‘Would Mean Recovery. To increase the quantity of credit- mer * would be an actual restoring of the amage done by the depression. ‘What depression means chiefly is that a great quantity of credit-money has been destroyed. When a share of the United States Steel Corporation sold at d | $200, an owner of it could borrow $150 at the bank and that was $150 of credit-money. Most of that has been destroyed, for a share of Steel stock is now worth only about $30 and an owner of it could hardly borrow as much as $10 on it. S!milarly, when a bushel of wheat was worth $1, a farmer could borrow, say, 75 cents of credit-money A | on it; wheat is now less than 50 cents Sauls & Wagner. . FURNITURE REPAIRED AND UP! ed in your home: moderate prices 's. Address Box :320-H. St ol Tree e office. ANT TOQ HAUL FULL Of LO. § (l:m N;' Y‘ork. Rkh,rotnd' lfll!lfl‘llly r“l o ‘an way ¢’ special rates. VATTONAL DELIVERY ASSN . INC.. 1317 . Y. ave. Nat. 1460. Locai moving also, a bushel. When a farm was worth $10,000 a farmer could borrow $5,000 of credit-money on it; the same farm is now worth less than $5,000. In short, the depression has de- TO | stroyed & great quantity of credit- money. Irnwu?dncrmet.hud- epression stroyed credit-money, the d would be cured. The Federal Reserve ever published in America, even “Uncle | United States is carried on with credit- | money. Any person realizes that the | Writer Points Out Significance of Term as Used in Connection With Currency—Predicts: Eventual / Defeat of Such Proposals. f System knows this, and the Treasury and the other fiscal authorities of the Government know it. Eugene Meyer, jr., governcr of the Federal Board, knows and wents to inflate the quantity of credit-money. So does Secretarv of the Treasury Ogden L. Mills. For just about a year the fiscal agencies of the Government have been following policies designed to increase the quantity of credit-money. Their effort has not been materially suc- cessful, however. All they can do is to increase the quantity of possible credit, of material for credit, in the banks. This does not beccme actual credit-money until people borrow it and use it. People, so far, have not done this much. Consequently, we may say that the effort to inflate credit-money has nct been successful. (Though it may begin to be success- ful any time, and inflation of credit- money may get under way.) In the absence of increase of credit- money—and speaking generally as a result of the depression—there is in Congress, and elsewhere, a great de- mand for increase of currency-mcney. This proposed increase of currency: money is what is meant by “inflation” as the word is comymonly used. To say why people do not borrow this credit from the banks and use it, and thereby create credit-money, vou'd be to get involved in the vicious circle which this depression is. Peo- ple do not berrow credit and put it to work because there is a depression. And there is a depression because peo- | ple do not borrow credit and put it to work. It is a vicious circle of fear. The type cf attempted inflation here described, inflation of credit-money, figures in Congress hardly at all. What “inflation” means in Congress is in- flation of currency-money. ‘What “Inflation” Means. What “inflation” means, as the word is used in Congress, is, mainly, increase in the quantity of currency—actual printing cf more dollar bills, or minting of more silver dollars. To increase the quantity of dollar bills, or to mint more silver dollars is the object of most of the more than 60 inflation measures in_Congress. For some reason those Representa- tives who get sufficiently interested in inflation to introduce bilis aimed to bring it about, do not think in terms of inflation of credit-money at all. Yet the fact is that increase of credit- ey (which the conservatives do not oppose—which, indeed, hardly any- body opposes—which indeed the Fed- eral Reserve System is trying to bring | about) is very much easier and very | much more important. The bulk of | the country’s business is done with credit-money. This is shown by the | fact that there is in existence about forty-six billion dollars of credit-money and only about six billicns of currency. The inflation bills pending in Con- gress can be divided into roughly | three classes. What is said about these bills must be loose and inexact, be- | cause each varies somewhat from the others end all are complex. One group cf measures proposes that the Government shall merely print more dollar bills. These dollar bills, in the spirit of most of the proposals, would be used by the Government to pay its daily expenses. At present the Government is spending approximately $3,000,000 2 day more than it receives in taxes or other revenues. To meet this deficit the Government's practice is to borrow money by issuing bonds upon which the Government pays in- terest. This group cf inflation meas- ures would have the Government get the money by simply printing it. Another group of inflation measures vculd have the Government mint sil- ver dollars. Some would have the Gov- ernment buy the cutput of silver mines in America, mint it into dollars, and that, surveying the coming Congresspay out these dol - and the coming administration, T o ures Wouls naee tos: G | tle the debts due us from Europe by ac- cepting silver and then mint the silver and pay it out. A third group of measures aims at inflation in another way. These meas- ures would reduce the quantity of gold in the gold standard dollar from a present 2538 grains to 165 grains. In- cidentally, I suspect that if inflation comes at all—which I do not think it will—this is the form it would more probably take. Reducing the quantity of geld in the standard dollar would have enormously complex results, be- cause there are in America mortgages and other contracts amounting to bil- lions of dollars which call for payment in “gold dcllars of the present weight.” Gold Basis Assailed. But there is a considerable school in Congress which thinks the weight of | gold 1n the standard dollar should be reduced. The idea of “going off the gold standard.” as it is called, is in the air. Practically every country in the world except France and the United States have done so. There will be much agitation_about it, in Congress and out, but I do nct believe that | either this or any other form of infla- | tion—that is, inflation of currency— will actually be enacted. What is said here is obviously too | brief. All that is attempted is merely |a clarification of the subject. During | the coming few months, billions of | argumentative words will be spoken ‘nnd written on this subject. HONOLULU PRISONER ENTERS GUILTY PLEA {One of Four in Massie Case Faces Possible Heavy Penalty for Sex Crime. By the Associated Press. HONOLULU, February 4.—Henry Chang, one of four men awaiting a sec- ond trial on a charge of assaulting Mrs. Thomas H. Massie, pleaded guilty to- day to a charge involving a sex crime and faced possibility of a 15-year sen- tence for a third similar offense, for which he was paroled, Although Territorial and Honolulu officials declined to comment, it was learned the authorities planned to nolle prosse the Massie case against the four defendants soon. Chang was one of a group of youths convicted in 1928 of criminally assault- ing a Chinese girl of the Kaluwela School. For this he was sentenced to the maximum term of 15 years. He still is under parole for this offense and the Board of Paroles may order him to serve the entire term. The charge of assaulting Mrs. Mas- sle, wife of a naval lieutenant, in Sep- tember, 1931, is pending against Chang, Ben Ahakuelo, David Takai and Horace Ida, whose first trial ended in a hung jury. A fifth man, Joseph Kahahawai, was killed January 8, 1932, by Lieut. Massie, who with Mrs. Massie's mother, Mrs. Granville R. Fortescue, and two sailors, was convicted of manslaughter. Their sentences of 10 years were com- muted to one hour. — KILLS WIFE IN SCUFFLE Man Drew Gun to Persuade Her to Leave Party. BILOXI, Miss, February 4 (P).— E. G Wilson of Florence, 8. C., em: ployed on construction of the new Fed- eral Soldiers’ Home here, was held in jeil today following the death of his 28-year-old wife from a wound inflicted during a scuffle over a pistol. Police said Wilson signed a statement ying he and his wife had been dn::; W] | PLAN BILL TO END BOND TAX FREEDOM Senator Hull Aims to Reach| Federal, Municipal and State Securities. (Continued: From First Page.) of tax exempt securities in America today have been made. It is believed generally, however, that the volume of securities wholly exempt from Federal income tax is lrpmxinuuly $26,000,- 000,000. In addition, there are about $12,000,000,000 which are exempt from the normal income tax only. ‘Through the failure of the Govern- ment to levy taxes on these securities the Government loses perhaps half a billion dollars in revenues annually. Glass Voiced Hostility, More than a decade ago it became apparent that the exemption of Fed- eral, State and municipal bonds from taxation was affording a refuge for great wealth from taxation. During the Wilson administration, Senator Carter Glass of Virginia, then Secre- tary of the Treasury and now slated to become Secretary of the Treasury again in the Roosevelt administration, voiced his hostility to the exemption of public securities from taxation in his annual reports as Secretary of the Treasury. Former Secretary of the Treasury Houston, in the Wilson ad- ministration, took the same view and former Secretary Mellon made the abo- lition of exempticn of public securities from taxation one the main planks in his platform of fiscal reform. en the late President Harding entered the White House he recom- mended the adoption of & Constitu- tional amendment to provide for in- come taxation of future issues of Gov- ernment bonds in his first annual message to Congress, Mr. Mellon, then Secretary of the Treasury, strongly urged the adoption of this Constitu- tional amendment. Mr. Mellon said at the time, “The issue of tax exempt securities has a direct tendency to make the graduated Federal surtaxes ineffective and non-productive because it enables taxpayers subject to sur- taxes to reduce the amount of their taxable income by investing in such securities; and at the same time the result is that a very large class of capital investments escape their just share of taxation.” President Hcover, who was then Secrefary of Commerce. in a letter to Chairman Smoot of the Senate Finance Committee pointed out that the escape from taxation through direct exemption of public securities was nct the whole story, “for they fur- nish a wide basis for further avoidance of taxation.” The prcposed Constitutional amend- ment to prohibit further issues of tax exempt securities was voted upon in the House January 23, 1923, and received the necessary two-thirds votes. 223 veas to 101 nays. The amendment, ! however, did not receive consideration | in the Senate during the remainder of the shert session, and that Congress ex- pired March 4 without final action upon it. ‘The late President Coolidge renewed the Harding recommendation. for a Constituticnal amendment at the open- ing of the next Congress. Mr. Cociidge said in his message to Ccngress, “The existent system not only permits a large | amount of the wealth of the Nation to| esczpe its just burden, but acts as a| continual stimulant- to municipal ex- travagance. All the wealth cf the Na- tion ought to contribute its fair share to the expences of the Nation.” Failed to Pass House in 1924. While the resolution proposing a con- stituticnal amendment was favorably | reported by the Ways and Means Com- mittee of the Hou'e February 8, 1924, it failed to pass by a vote of 247 yeas to 133 nays. The proposed amend- ment had been approved in the House with a margin of seven votes abcve the, required two-thirds majority in 1923, | but in 1924 it failed by a margin of seven votes. Opposition at that time came chiefly from the Democratic side of the House and was led by Repre- sentative Garner, the precent Speal and Vice President-elect. charged by the then Representative william R. Green, former chairman of the Ways and Means Ccmmittee and now a judge in the United States Court of Claims, that the amendment had been cefeated by reprecentatives from the South who believed their States could “borrow money more cheaply if permitted to issue tax-exempt securi- tles.” There was oppo:ticn, too, from farm organizations which 'wished to} continue the exemption of Federal farm loan bonds and from advocates of ths municipal ownership cf public servic enterprises, who held that the advan- tage given municipal securities by tax exemption would promote the acquisi tion of public utilities by the municipal government. ‘With the continued reductions in the rate of Federal income taxes, the agita- tion for an amendment to prohibit the issue of tax exempt securities fell off. In those days, however, the Federal Treasury had a surplus. With a deficit of more than a billion dollars staring the Treasury in the face, the demand for a tax system which would reach these public securities is growing rap- 1 In 1929, the Treasury sought and obtained from Congress legislation au- thorizing the issue of Treasury bills on a discount basis, payable at’ maturity without interest. The same law car- ried a provision that future issues of Treasury bills as certificates of indebt- edness should be exempt from all Fed- eral income taxes. The Secretary of the Treasury also had authority to issue Treasury notes, maturing in one to five years, free of normal income taxes and turtaxes. All of the notes now outstanding have been given this exemption. Exemption Feature Dropped. ‘Two years ago new legislation was sought by the Treasury increasing its long-term borrowing power by $8,000,- 000,000 in order to facilitate the refund- ing of bonds which would become call- able during the ensuing three years. The Treasury Department proposed to make the income fi all the new bonds exempt from es as well as the normal income taxes. Mills explained that the purpose of the exemption from surtaxes was ‘to remove a present discrimination be- tween individuals and corporations, the latter only paying the normal tax. Be- cause of the oppasition which devel oped in the Senate, however, the tax exemption feature was eliminated and the bill was passed without it. President Hoover, in a recent mes- sage to ess, called attention to the fact of the early refunding of out- standing high interest bearing liberty bonds which must be undertaken and urged that these bonds be refunded bearing a lower rate of interest. ‘The sixteenth amendment to the Constitution, which was ratified on) February 5, 1913, and authorizes Con- gress to levy the Federal income tax, does not, in the opinion of the Su- preme Court, extend the Federal tax- ing power to tax State and municipal 'l)om&° However, it has been contended in some qusrters that a Constitutional amendment is not needed to levy taxes on public securities, Federal or State. SUGGESTS U. 8. DEFAULT. Sugar Refiner Thinks Cancellation Cry Would Stop. By.the Assoclated Press. i Rudolph Spreckels, New York cd.\lom?a sugar refllx.:'u, in a letter yes- e ). ; they woul INUTE YST Can You. §olug/fl.7¢ Dr. Fordney is professor of criminology at a famous university. His advice is often soueht by the police of many cities Wh conironted with particularly baffling cases This problem has been taken {rom his ca: covering hundreds of criminal investi- on it! al’ | Every fi clue necessary to its solution story itsel{—and there is only one answer. How good & detective are you? eations. Try your wits MINUTE to Tea BY H. A. RIPLEY. students in Prof. Fordney's class listened with interest as he finished relating a story of mur- der in the frozen regions of the North. “Before dismissal” he continued, “here’s another interesting tale. “About 25 years ago there were a number of frauds, scandals and contro- versies relative to the discovery of .., the North Pole. .’ Several explorers returning from the North brought dif- ferent versions of their findings and for a while the world reeled dizzily on her axis, not knowing who to credit. “While discussion was at its height, T attended a banquet at which the ex- plorer, Donald Hoxman, lectured. In closing, he said: ‘The temperature was 40 below; we were freczing. Our beloved leader was gasping his last. He was beyond huthan help; death was inevitable. As I stood there at the very apex of the world clouds in the south were gathering, portending stormy weather. Behind the huge, purplish- tinted mountains of snow to the west the cold, blurred sun sank out of sight as we dug a shallow grave in the ice and laid him to rest there at the North Pole. His success was achieved in death. A terrific price to pay, but I am sure the world will acclaim the great- ness of our dauntless leader. “‘I have some photographs and ex- hibitions on display in the adjoining room which I brought back with me. I shall be delighted to discuss them with apy one interested.’ “I didn't go to see his collection.” concluded Fordney, “as I knew the man was a fraud.” DO YOU THINK HE WAS? WHY? (For Solution, See Page A-11.) SLAIN WOMAN REVEALED TO HAVE 2 HUSBANDS Gun Found on Prisoner Identified as One of Mates, Matches Fatal Bullet. By the Associated Press. LG H CHICAGO, February 4 —While police | held one husband of a slain woman today their investigation of her death revealed an earlier mate. Robert Raymun, formerly of Minne- apolis, refused to make a statement, although a ballistics expert said “pre- liminary _investigation indicated the fatal bullet was fired from the gun taken from him.” Meanwhile, James Flanagan notified police he had married Leola Hoeppner of Olean, N. Y. in 1919. They sep-| arated in 1928 and had never been di- verced. Raymun was arrested on & charge of intoxication by police, who did not know he was the husband of the woman found dead in a downtown hotel Thurs- dn; night. They said he refused to talk. Alfred J. Mulvaney, ballistics expert for the coroner’s office, made the ex- amination of the gun found on Ray- mun. Flanagan and his brother-in-law, Otto Hoeppner of Buffalo, N. id arrange for burial. WOMAN POISON VICTIM EXPECTED TO RECOVER SR s ut By the Associated Press. CHICAGO, February 4—Her physi- cian today announced they expectd the recovery of Mrs. Helen Sunderburk, 22, daughter of a prominent New Yorker, who was taken to a hospital suffering from poison, which she said she had taken by mistake. Mrs. Sunderburk is the daughter of Mitchell Samuels. New York. She was visiting her cousin, Mrs. Mark D. Good- man, here, and was said to be sepa- rated from her husband. She came to Chicago last December from Warm Springs, Ga. where she had received treatment for infantile paralysis. Another cousin, Miss Georgia Schulz, was awakened by her screams: “I don't want to die. I took the wrong bottle by mistake.” ER e Employes to Give Dance. Employes’ Compensation Commission Lodge, No. 39, and Tariff Commission Lodge, No. 34, of the American Feder- tion of Government Employes will hold benefit dance and card party at the Carlmn Hotel next Friday night at 9 o’clock. to default, America could refuse to pay the bonds behind the loans. Thomas placed the communication in the Record with this statement: “There is an intimation from Wall Strest itself, over the signature of Mr. Rudolph Spreckles, that there may come a time when the Government will fail to raise and apprepriate the money to pay these United States Government obligations, tax-exempt gold bonds that at present rest so securely in the strong boxes of that famous street.” Spreckels wrote that “sauce for the goose is sauce for the gander,” adding: “Perhaps our rich American bond- holders who advocate cancellation of foreign war loans would have a change of heart if Congress adopted a resolu- tion cancelling all United States bonds issued to finance those nations; and I dare say foreign owners of the United States bonds would then learn to ap- preciate the unfairness on the part of hej governments in demanding cancellation.” DENTISTRY NEW OW PRICES A Dents Service offered which this qual- { ity of service | n_be obtain- Most libera’ terms of eredit My own attention to every patient Dr. Vaughan Dentist 932 F St N.W, MEL. 9576 Metropelitan Theater Building i FEBRUARY 5, 1933—PART ONE HECHT SAYSFISH || Forum Spesker | STARTED BANK RUN R. F. C. Advisory Committee Chairman Blames Repre- sentative’s Charges. (Continued From First Page.) were ordered today by Civil District Court to show cause on February 10 why they should not be removed. Action was taken on petition of 11 sut-of-State creditors, who pleaded their interests were prejudiced in favor of privileged creditors. The petition alleged the receivers, Sanford Levy and Clay W. Beckner, were not qualified to act, since Levy is a former vice president of the company and Beckner a board member of the Reconstruction Finance Corporation, largest creditor of the company. The petition charged the company had pledged choicest stocks and hold- ings to secure a $1400,000 loan and that only a “hollow shell” remained for other creditors. Sol Weiss, counsel, alleged in the petition that the receivers had allowed a New Orleans bank (not named) doing business with the company, to receive funds to apply against the company’s indebtedness to the bank, while 200 holders of drafts and checks against the company in excess of $1,000,000 were not paid. The petition asked that the receivers either be discharged or a third receiver appointed to protect interests of out- of-State creditors. These _creditors. headed by Clifford H. Randall of Los Angeles, included holders of drafts and insurance policies and winners of out- of-State lawsuits bonded by the com- pany. Text of Telegrams. The text of the exchange of tele- grams between Hecht and Fish follows: “NEW ORLEANS, “February 3, 1933. “Honorable Hamilton Fish, House of Representatives, Washington, D. C. “Since we have never met I feel some- what at a loss as to how to express my feeling concerning the statements made by you on yesterday. I feel sure you would not deliberately have done me such an injustice if you had the cor- rect facts and I am therefore address- ing_you directly on the subject. “The record of the Reconstruction Finance Corporation will show that I never voted on or recommended any of the loans to the Union Indemnity in- terests, but recused myself in each such instance. You are also misinformed about the Reconstruction Finance Cor- poration loan having been granted for the benefit of my bank because not one dollar of the money loaned by the Re- construction Finance Corporation in December was used to pay off a loan due my bank existing at the time the loan was granted. “Only basis for your information could be that after'loan was definitely approved by Reconstruction Finance Corporation, but before they could put the additional security required in the form of mortgages in shape satisfac- tory to the attorneys, two banks, of which ours was one, made temporary advances which were repaid when the loan was finally completed. Weicomes Investigation, “I assure you that personally I wel- come any investigation which you or 1 any other authority cares to make, but you have done me a great injustice in indicting me betore the country on i charges which are definitely based on wrong information, and which you can have verified if you wish by proper of- ficials within a few hours. “I doubt you realize how serious in times like these it is for a man carry- ing heavy responsibilities to others to be charged with such misconduct as you inferred, and I appeal to your sense of justice and fairness to satisfy your- self as to the true facts and then be good enough to correst the damage done as far as that is possible. I would welcome the opportunity to talk with you over the telephone, but hesitate to call you unless you will wire me that you are willing to have me call you. “R. 8. HECHT.” Reply of Fish. “WASHINGTON, D. C, . “February 3. “R. 8. Hecht, Hibernia Bank & Trust Co., New Orleans: “Will be glad to review information given me by member of R. F. C. Board. Naturally don't want to do you any in- Justice. ~ Have great confidence in R. F. C. Board, want to help prevent any dissipation of public funds through bad loans supported by bad collateral. Nothing I have said reflects on your bank. My purpose is to expose loans indemnity and title companies. Farthest from my thought to reflect on your bank, in stability of which R. F. C. officials. have complete confidence. I voted for R. F. C. act, andgbelieve it has done, and is doing. indispensable service in highly efficient manner. “HAMILTON FISH." “NEW ORLEANS, = “Hon. Hamilton Fish, in Care Repub- lican Club, 54 West Fortieth street, New York City: “Thank you for your message. Un- fortunately, newspapers all over the country featured the sensational charges REAR ADMIRAL CARY T. GRAYSON. BRAYSON TO TELL INAUGURAL PLANS Committee Head to Speak Tomorrow Night on Radio Forum. Rear Admiral Cary T. Grayson, chair- | man of the Inaugural Committee, will explain the elaborate plans he and his committee are making for welcoming | Pranklin Delano Roosevelt to the White House in a speech in the National Radio Forum, arranged by The Evening Star and broadcast over a coast-to-coast net- work of the National Broadcasting Co., tomorrow night at 10:30 o'clock. Working on fundamental principles lald down by the President-elect, in conferences at Warm Springs, Ga., and at the Roosevelt estate at Hyde Park, N. Y., Admiral Grayson has worked out one of the most elaborate and colorful programs that ever attended the in- augural of a President of the United States. Given practically a free hand in ar- ranging the affair, with only the advice from Mr. Roosevelt that the inaugural must not entail expenditures of Govern- ment or State funds, Admiral Grayson, with the 21 sub-committees which are working with the Central Committee, has revived much of the pageantry and color of previous ina ls. For this inaugural there will be the inaugural ball which will have an official stand- ing with members of the new Presi- dent’s family attending, and other fea- tures of the celebration have been | worked out which promise to make ‘[annmn the mecca of jubilant voters who helped create the landslide that swept the party into power in the last election. Admiral Grayson is expected to give the country a general outline of the work thjt has been done by his com- | mittee and detall other features that are | under consideration. | Admiral Grayson, & warm personal | triend of the President-elect. long has | been a familiar figure in the Democratic party. He served as President Wilson's personal physician throughout both of | Wilson’s terms in the White House, and his counsel, personal and professional is expected to be regarded highly by | the new occupant of the Executive Mansion. PLAN LONGER SEMESTERS South Carolina Legislators to Get Bills This Week. COLUMBIA, §. C., Pebruary 4 (®).— A bill to provide longer State-financed school terms at lower cost is scheduled to emerge from the hands of commite tees in both Houses of the South Caro- lina Legislature, next week, legislators said today. Neither House was in ses- | sion today. Senator W. D. Spearman, Pickens, chairman of a Senate subcommittee on education, said the proposed bill would insure a seven-month grammar school term and an eight-month high school term where the State now guarantees only six months. Economies are plan- ned by reducing the present State-wide scale of pay for teachers and enlarg- ing the average class, Spearman said, without upsett: the distribution of State school funds. you made against me on their front pages. Since ours is a large institution doing a national business, the immedi- ate result was that milllons of dollars were withdrawn from our bank as soon as this news appeared, and a run was started on our institution. I am en- tirely confident of my ability to clear myself of the unfair charges which have been made against me personally, but in the meantime this unfortunate pub- licity has done irreparable damage to my bank and to this whole commu E “R. 8. HECHT. ANNOUNCEMENT! We are pleased to announce that we have ob- tained permission from the Pierce-Arrow factory at Buffalo for the " SILVER to remain in Washington ARROW tomorrow and Tuesday. It will be on display at our Pierce-Arrow show rooms, 1132 Connecticut avenue, opposite the Mayflower. . Washington Pierce-Arrow owners and all others interested in this superb example of advanced automobile design and con- struction are cordially invited to inspect the Silver Arrow. Only five Silver Arrows have been.scheduled for production. Each car is custom built to orde: r. The price is $10,000. LEE D. BUTLER, Inc. FUNERAL SPRAYS $3up Created by Florists with a national reputation for fine quality and service. INC: 1407 H St. N.W. Nat'l 4905 ICAPONE SUCCESSOR CONVICTED QUICKLY Post of Public Enemy No. 1 Again Vacant After Chi- cago Trial. By the Assoclated Press. CHICAGO, February 4—A year's jail term for Murray Humphreys threatened today to vacate once more the chair marked “public enemy, No. 1.” Al Capone occupled it, unchallenged, until the Federal Government tilted the chair and dumped the gangland ruler into the relative oblivion of a prison- er';ucell at }.{Atlantm urray Humphreys had only ad- justed the chair to fit hlmselfywhen he was caught in a downtown sky- scraper with a revolver tucked handily in_a holster at his shoulder. It took the State just 20 minutes to t::lsl jury in Munichml Court all that necessary. e jur romptly - Convicted Humphreys. of - tarying. 3 concealed weapon, thus bearing out the racketeer’s confident prediction that he would be_convicted. Judge Harold P. O'Connell imposed the maximum penalty today: A year g;l the house of correction, plus' $300 e. Humphreys, wearing what the well dressed gangster wears and a smile be- sides, accepted the sentence with a shrug and assured his audience he was “satisfied the Supreme Court will re- verse the conviction.” The Chicago Crime Commission, which invented the “public tegory when Capone was in his hey- day of gang rule, hailed the sentenc of Humphreys joyously and pronounc: the case a perfect one to test the eff- cacy of Illinois laws governing the gun- man. In the past the courts have given varied decisions on the policeman’s right to arrest gun toters without & search warrant. ALUMNI OFFICIAL TO TALK Secretary of Notre Dame Group to Address Organization Here. James E. Armstrong, secretary of the National Alumni Association of Notre Dame University and vice presi- dent of the National Catholic Alumni Federation will come to Washington late this month on a speaking tour be- fore Notre Dame alumni clubs in 15 cities. A special meeting of the Notre Dame Club in Washington is being arranged for February 24 when Mr. Armstrong is expected here. He will aiso talk before upper classmen at St. John's College. One Cent a Day | Brings $100 aMonth | Over One-half Million Dollars Al- | ready Paid in Cash Benefits | One cent & day ($3.65 per year), invested in National tive Policy, will how buy more insur- ance benefits than can be secured from any other Compeny for any | amount up to $10 per year. | This_new 181,500 at death, is now being sold |to all men, women and children, be- tween the ages of 7 and 80 years,| employed or not. | unusual policy. The National Protective is the lar- and oldest company of its kind the world. 1t has paid over siz ndred thousand dollars ($600,- 0.00) in cash to thousands of its h s when cash was most Send No Money For 10 days' free inspection of » Simply send name, age, ad- beneficiary’s name and re. 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