Evening Star Newspaper, February 17, 1933, Page 2

A2 gay - JAPAN CONDEMNED THE EVENING STAR. Brothers Clashed leB BA“_ED ”AR WASHINGTON, ! ISUPPLY MEASURE When Long \ BY LEAGUE REPORT U.-S. and Russia Asked to tAid in Settling Manchu- ba rian Dispute. League Report Gives Ten Essentials for Peace in Manchuria By the Associated Press. ‘The 10 essentlals( kt’h‘ fiflx- fectory solution of e Man- churian dispute as stated in - Chapter IX of the Lytton report, basis of the League of Nations present report on that trouble, are: - 1. Compatibility with the in- terests of both China and Japan. 2. Consideration ilaor the inter- ests of Soviet Russia. 3. Conformity with existing multilateral treaties. - 4. Recognition of Japan's rights and interests in Manchuria. 5. Establishment of new treaty relations between China and Japan. ?‘Eflectlve provision for settle- ment of future disputes. 7. Establishment of Manchurian autonomy. 8. Imarance of internal order in Manchuria and security against external aggression. 9. Encouragement of an eco- nomic rapprochement between China and Japan. 10. International co-operation in the reconstruction of China itself. (Continued From First Page.) It quotes as a basis for lasting settle- < ment of the dispute the 10 essentials promulgated in Chapter IX of the Lyt- ton report. The second section constitutes rec- ommendations specifically made under the terms of the League covenant. This section reads: “The Assembly recommends as fol- Jows: “1. Whereas sovereignty over Man- churia belongs to China, “(a) Considering that the presence of Japarese troops outside the zone south of the Manchurian Railway, and their operations outside this zone, are incompatible with the legal principles which should govern the settlement of this disput, and that it is necessary to establish as soon as possible a situation consistent with these principles, the Assembly recommends evacuation of these troops. With a view to the spe- . “cial circumstances of the case, the first object of negotiations recommended &Erel‘nnfter should be to organize this evacuation and to determine the meth- ods, stages and time limit thereof. Autonomy Is Asked. ..., “(b) Having regard to local condi- “tions special to Manchuria, to the par- ticular rights and interests possessed by Japan, and to the rights and inter- ests of third states, the Assembly rec- ommends establishment in Manchuria within a reasonable period of organ- jzation under the sovereignty of and comPltib]e with the administrative in- tegrity of China. This organization “should. provide a wide measure of au- tonomy, should be in_ harmony with Jocal conditions and should take ac- count of multilateral treaties in force, particularly with respect to. the rights and interests of Japan and the rights o imereas. in sddition 1o the - 42, eas, n ues- flons" dealt with ‘sbove, * * the As- sembly “3. Whereas the negotiations neces- sary for giving effect to the foregoing recommendations should be carried on by means of a suitable , the As- sembly recommends o negotia- tions between the two parties in accord- ance ith the method specified here- Each of the parties is invited to inf secretary general (of the “whether it accepts, so far as it is eonterned, the recommendations of the Assembly, subject to the sole con- dition ghat other party also accepts ‘them. Negotiations between the parties shoul place with the assistance of tee set up by the Assembly, as Assembly hereby invites the BOV ents of (blank) to appoint a membeF of the committee as soon as the secretary general shall have in- formed them that the two partiec cce cept the Assembly’s recommendations. ‘The secretary general shall also notify the governments of the United States and of the Union of Socialist Soviet Republics of this acceptance and invite each of them to appoint a member of the committee, should it so desire. “Within one month after having been informed of the acceptance by the two parties, the secretary-general shall take all suitable steps for opening negotia~ tions.” Report Is Recommended. ‘The committee authorized a report to the assembly on the state of the ne- gotiations at any time considered prop- er, especially on negotiations concerning the Japanese evacuation and establish- ment of a Manchurian government un- der Chinese sovereignty. The final section of the recommen- dation reads: “In view of the special circumstances of the case, the recommendations made do not provide for a mere return to the status quo existing before September, 1931. ‘They likewise exclude mainte- nance and recognition of the existing re- gime in Manchuria, such maintenance and recognition being incompatible with the fundamental principles of existing international obligations, and with good understanding between the two coun- tries upon which peace in the Far East depends. “It follows that in adopting the pres- ent report the members of the League intend to abstain, particularly as re- gards the existing regime in Man- churia, from any act which might prejudice or delay carrying out the recommendations of the said report. ‘They will continue not to recognize this regime either de jure or de facto. They intend to abstain from taking any isolated action with regard to the sit- uation in Manchuria and to continue to concert their action among them- selves, as well as with interested states not members of the League.” MME. LUPESCU REPORTED TAKING REFUGE IN FRANCE Friend of King Carol Believed to Have Fled Bucharest as Result of Disorders There. By the Associated Press. NICE, FRANCE, February 17— Magda Lupescu, friend of King Carol of Rumania, was reported yesterday to have taken refuge on the Riviera as a result of difficulties in Bucharest. Reports said she crossed the border Wednesday night and was staying at Mentone, but _police said there was no record of her there. Dead Total 15, BUCHAREST, Rumania, February 17 (#).—Nine persons who were wounded yesterday when troops battled with sev- eral thousand workers who had barri- caded themselves in the railway shops died today, raising to 15 the number of dead. Six persons were killed yes- terday, including one policeman and two_ soldiers. The workers barricaded the shops in demanding the release of 11 leaders had been arrested as Communists. . a D ENATOR HUEY LONG, the Louisian: ing his brother, Earl Long, during the course of which Huey called Earl ar” when ‘the latter testified that Huey had been paid $10,000 by Harry Abel, who he said was a representative of the “power interests. SCENE IN LOUISIANA COURT AS HUEY QUESTIONED KIN. « The verbal blasts took place during the Senate committee investigation into charges of fraud in the Overton-Broussard senatorial primary. Long backed Johin H. Overton in the primary. Senator —Wide World Photo. INSULL DEAL NETS FAMILY §1,732,130 Fancy Bookkeeping Methods Disclosed by Govern- ment Auditors. By the Assoclated Press. CHICAGO, February 17-—The fancy bookkzeping methods by which the Insull family and their finance com- panies were alleged to have kited real and paper profits were disclosed yester- day by Government auditors. Samuel Insull and his immediate family realized an actual gain of $1.- 752,150 in one instance, the United | States Bureau of Investigation nounced, by purchasing stock from tmei company at $15 and reselling to another | at $40 a share. ‘This alleged juggling of stocks among | the Insulls and their now bankrupt in- | vestment houses, Insull Utility Invest- ments, Inc., and Corporation Securities Co. of Chicago, and the circularizing of securities by mail form the basis of evidence being presented to the Federal grand jury by United States District Attorney Dwight H. Green. The prosecutor placed on the stand today Harold B. Huling, chief of the Gavernment auditors, have amassed column upon column of red and black figures from the books of the bankrupt companies, Statement Made Public. ‘What Huling told the jurors at an all-day session was not disclosed, but simultaneous with his appearance the Bureau of Igpvestigation made public a statement sNowing part of its findings. The Insulls, Samuel, father and so,:‘ Martin, - brother, -and . Mzs, Margal ife of the elder Samuel, bought an- | ft. pmot.her transactions found by the Bu- f Investigation were: Corporation muu Cfi,i‘l:fld 1,250,000 shares of its common stock to a subsidiary, Cor- poration Syndicates, Inc., and to Insull, Son & Co. These immediately trans- ferred the stock to another subsidiary. f | Utility Securities Co., at a profit of 50 nts a share nett! the corporation geyndlcm $299,748 which it paid back to Corporation Securities Co. as divi- ds. d‘!nnsull Utility Investments, Inc., charged $2,146,911 from its earnings as stock dividends paid to Corporation Securities Co. which credited the divi- dends as $4,041,555 incorfle. In the same four-year period, Corpo- ration Securities charged off $246,476 from its earnings as dividends to Insull Utility lnvstm;x;t:hw&;xecdl:z put it on ks as $679,918 credit. minb:om that same period Middle West Utilities paid stock dividends charged on its books at $4,181,622 to Insull Utility Investments, which carried the dividends received at $8,240,348. Scored by Opera Star. e rrden, volatile as ever, cl th?s‘fiyo'; perform a deft bit of oral surgery on Insull, the music magnate. The famous opera star's theme song was “Music and Money Don’t Always Mix.” “Samuel Insull dkllled opera in Chi- cago,” she charged. ghe has sald that bei"g\;e. Last night ld why, in her opinion. shswu';lgnwln};ull became. president of the Grand Opera Co. four years ago, he set himself up as a czar,” sald Mary. “He dictated everything. He fired stars Dbecause of personal prejudices. He told us what to sing and how to sing it. “He couldn't do that. He was a financier—not a musician; an entre- preneur, not an impresario. When he moved us_from the old Auditorium to his new Civic Opera Building he took us from a certain present to a dubious future. “And today Chicago has no grand a” opera. e Civic Opera Building is now the scene of an occasional operetta—a monument to & musical enterprise that struck a sour note. QUINONES IS RELEASED ON COUNTERFEIT CHARGES Government’s Chief Witnesses Fail to Identify Him in San Francisco. By the Assoclated Press. SAN FRANCISCO, February 17— Counterfeiting charges against Eddie Quinones, asserted underworld leader here, were dismissed in Federal Court yesterday after the Government’s chief witnesses failed to identify him. ‘The dismissal came a few days after the shooting to death of Joe Sole, who was indicted With Quinones. It was entered by Federal Judge Harold Lou- derback after Joseph Martin and Anton Vatuone, Government witnesses, failed to identify the defendant as the source of a spurious $20 bill given to Martin. “This smacks of intimidation,” said Albert E. Bagshaw, assistant United States attorney, adding Martin previ- ously had identified Quinones or his picture eight times. BANKER ACQUITTED Harry T. Springer Found Not Guilty of False Entries. WILMINGTON, Del, February 17 (#)—Harry T. Springer, a former vice president of the Equitable Trust Co. iin this city, was acquitted by a Federal ljury yesterday of charges of having made “false entries in the bank’s call report in 1929 and 1930 to the Federal Reserve Bank in Philadelphia. $20,000,000 PROFIT INDICATED IN DEAL IN INSULL STOCKS (Continued From First Page.) dition of the company wasn't it?” Brookhart asked. “That wasn't the idea,” Stuart re- plied. “It was favorable to the company wasn't it?” “Yes.” "Qnd unfavorable to the purchaser?” s “It tended to make the company's credit better than it was,” Brookhart commented. Stuart then went into a long and complicated explanation of the trans- actions. Stuart finally said that when Halsey, Stuart bought the stock it had already arrangad to sell it back to the other Insull companies. As a consideration for the deal, he said, the Insull family turned over to Halsey, Stuart 27,000 shares of common stock in Insull Utility Investments, Inc. “Your company didn't actually risk any of the money it paid out?” Pecora asked. “No,” Stuart replied. “We knew we were going to sell it immediately to the Utilities Securities Co.” “You lent yourselves as an accom- modyltlon?" Doubts $270,000 Loss. Senator Reynolds, Democrat, of North Carolina, took up the questioning. “In view of the fact that the Insull company is broke you are out $270,0002" “I think we got it back in the or- ganization of the Corporation Securi- ties Co.” “Why did you pay $6,000,000 for the debentures to one Insull company and then turn around and sell them at a $270,000 loss to another Insull com- pany?” Reynolds asked. Stuart repeated that the Insull law- yers thought that was the thing to do. Stuart sald Samue]l Insull told him he was organizing the Insull Utility In- vestments, Inc., to consolidate his per- sonal holdings. “When we were discuss] the price, he said it being a personal one, if it were worked out so that he received par, it would please him very much.” “Didn’t you know it was for the pur- pose of making the securities look better to the public?” Reynolds asked. “Yes,” Stuart replied. Increase in Transfer. Questioned by Pecora, the witness said the 27,000 shares of common stock had been received from Insull at $10 a share and transferred to the Corpora- tion Securities Co. of Chicago for stock valued at $100. Stuart said in response to questions that officers of Halsey-Stuart were officers of Corporation Securities and that their offices were in the same building. Stuart said the $6,000,000 of deben- tures Jzurchucd by his .company also c:.r;)les warrants for common stock al & They sold $4,000,000 of these to the public, along with the warrants, at par, he said. The other $2,000,000 were turned over to another Insull company, but the ‘warrants were retained, netting a profit of $2,000,000. Stuart sald 30,000 shares of common stock in addition to the former 27,000 were turned over to Halsey, Stuart by Insull for the debenture transaction. Transferred at $100. ‘They were bought at $10 as the others were, Stuart said, and trans- ferred at a value of $100. “That was & bonus your company got from Insull Co.’s for a two or three day participation in the financial set- up of the Insull Utility Investments, Inc.?” Pecora asked. “Our total compensation was the 57,000 shares allocated to us at 10, which was all we were willing to pay for it,” Stuart said. ‘Telling of a profit of $2,000,000 on the warrants retained on the deben- tures, Stuart said: “We voluntarily gave 13 of that to the Insull Utility Investments, Inc.” “;o]unuruy as a gift?” Pecora asked. “Yes. “What was the company doing, standing on the street corner with a tin_cup?” “No, but it went up so fast we de- cided it was only fair to give some back.” “Your consclence was stricken, at such tremendous profits.” “We felt the company should have some of it back?” 43,000 Shares Taken. Stuart sald he subscribed to 43,000 “Kingfish,” is here shown question- | " ATHECTIGHEARING Louisiana Senator Calls Elec- tion Probe Witness a Po- lice Character. By the Associated Press. NEW ORLEANS, February 17— Senator Huey P. Long, who has called several witnesses “liars,” yesterday was called a “liar” himself by a witness before the Senate Comgmittee investi- gating the senatorial election of John H. Overton, who was supported by Long, “the kingfith” of Louisiana. The witness, Joseph Boudreaux, leaned over toward Senator Long and shouted: “Huey Long couldn't get elected justice of the peace unless he stole it. He's a bigger crook than anything in Louisiana.” “I want to prove that this witness is a police character and a pug,” Sena- or Long told the committee. “That’s & lie,” said Boudreaux. “He's —]llar.” As Chairman Robert B. Howell called him to order, Boudreaux said Senator Long has been using that word all the time before this committee. “But I dare him to call me a liar. He's not man enough to make that statement where it is fair. Long is trying to spear me by trying to make you think I am a police character. I have been arrested, but it was for fight- ing Long's henchmen.” Public Service Pay Roll. “That’s all right,” saild Long. “But you were working for Dudley J. Leblanc and he was defeated for public service commissioner on whose pay roll you once were.” “Leblanc was not defeated” sald Boudreaux. “Your henchmen stole it from him. Yes, I worked for him and was on the public service commission pay roll about three years ago.” Boudreaux said he had been knocked senseless and dragged off to jail in the State Capitol Building at Baton Rouge by “Huey Long's thugs.” He said Le- blanc's chauffeur had been beaten up and he went to find out about it. Pointing out Joe Messina, standing in the room, he said “that man there, Huey Long's bodyguard,” had taken him by the arm and was leading him out of the Capitol when another “one of them hit me on the back of the head.” The X-ray, he said, showed a fractured skull, but instead of charges being placed against his attackers charges were placed against him. “There is & lot of intimidating going on around here and Senator Long has got bodyguards in here carrying guns,” charged Boudreaux. Senator Long jumped up and said he objected to testimony about bodyguards, but Chairman Howell ordered before the bar Joe Messina and Wheaton Stillson, who were pointed out by Bou- dreaux as Long's bodyguards. “Are you armed now,” demanded Senator Howell. “Yes,” said Messina. “Then you are excluded from this room,” ordered Senator Howell. “These men are officers of the law and have rights to carry guns,” sald Senator Long. “This is the United States Senate and no one can come in this room armed,” thundered Senator Howell. “You are ordered from this room.” Messina Taken Out. Messina was taken out, but Stillson, who said he was not armed, was al- lowed to stay. o Later Messina was brought back, un- armed, and he and Stilison told the committee they were by the State and were not Senator Long's bodvguards. Stillson said, however, that if anybody tricd to Barm the Senator they would “have to do it over me.” Boudreaux charged that men stand- ing about the room had been trying to intimidate witnesses. During the morning session Julius Long, older brother of Hucy, testified that his brother “swelled up when he became Kingfish,” and the State of Louisiana now was in the grip of a was not safe.” And, he said, “We have in the mansion a Governor who ‘weeps about it like a woman' and serves Huey Long like a dishwasher in a restaurant serves his master.” “I believe Senator Long has Gov, O. K. Allen’s undated resignation now,” he said in testifying that, while Governor, Long obtained undated resignations from practically all of the State em- ployes. Senator Long did not ask his brother a question on cross-examination, but sat mute with his head leaned to one side during the testimony. ———— program was to educate the public about investment topics. “What would the Insull stocks pay on the dollar now?” Reynolds de- manded. “Practically nothing.” “Who got all the money the investors pnlg in for the stock?” Reynolds pur- sued. “Part of it is in Greece,” Brookhart commented. His reference was to the fact that Samuel Insull, head of the crumbled utilities empire, is now living in Greece, Stuart said the mocney was invested in Insull companies at “high prices” and it had “depreciated. The witness was questioned some more about the radio program until he broke in and said heatedly: “You want to be fair, don't you? You are creating the impression that most of the securities we sold were worthless. We have sold worthless se- qurities along with all other companies. But it is a very small percentage. We pride ourselves on our record.” Stock Received in 1929, Pecora brought out that the 57,000 shares of common stock were received on January 16, 1929—the day before the stocl: was traded in first on the Chicago Stock Exchange. It sold at $30 the first day and up to $40, the second day, he said, adding Halsey, Stuart had obtained it for $10. “Did you inform the public it was paying three and four times what you believed the stock to be worth?” Pecora e shares of Insull utilities stock at $12 a | asked share which was transferred to Corpo- ration Securities for stock with a par value of $100. “Were you under any agreement not to dispose of these shares for any sub- stantial period of time?” Pecora asked. “I think there was,” he replied. This made an additional paper profit of about $3,500,000, bringing the total up to about $12,000,000. Questioned about a circular Halsey, Stuart had gotten out on some Insull company debentures the witness was asked if the company had an interest of 57,000 shares of common stock on its sale. “No, there would be nothing like that,” he replied. He added it wasn't the practice at that time but it ough to be followed in the future. Senator Reynolds then asked about employment of a radio broadcaster, who worked under the name of “Old Counsellor.” Stuart said M. H. Aylesworth, pres- ident of the National Broadcasting Co.. worked out the investment program and Halsey, Stuart sponsored it. McFadden Is Mentioned. The first program, he added, was introduced by Representative McFad- den, Republican, of Pennsylvania, then chairman of the House Banking Com- mittee. “You sponsored the Insull stock?” Reynolds ed. ““Oh, no. He explained the purpose of the ) to sell “No, because we wouldn't give any opinion on that. It was the public’s own estimate of what the stock was ‘worth.” “But you knew ‘more about it than the public,” Pecora said. Pecora asked if the only holders of Insull utility investments were Halsey, Stuart, Stuart and the Insull family group. “T couldn’t answer that,” he replied. “Who made the market for common stock at $80 on the opening day?” “I presume buying and selling.” Dawes Admits Violation. Charles G. Dawes, whose Central Re- public Bank & Trust Co. of Chicago lent $11,000,000 to the Insull enterprises, was a witness yesterday. He admitted to the committee that his bank had *violated the principle of the law” in making the loans. Dawes said that when the loans were advanced they “were all supposed to be well secured.” These securities are now held by the Reconstruction Finance Corporation as part collateral for a $90,000,000 Reconstruction Finance Corporation loan made to his bank, Dawes testified. Owen D. Young, chairman of the General Electric Co., also appeared yes- terday, describing his efforts to ward off failure of the Insull empire. Young said he felt Insull, who now 1is living in Greece, was a “victim of the complicated structure which got beyond his control.” “gang of skull crushers and human life ; The President-elect (in the center) on the rear platform of his special train as it made a brief stop at Union Station today. —Star Staff Photo. Secretary Tells McNary of Problems Affecting Its Practicability. By the Assoclated Press. A letter from Secretary Hyde of the Agriculture Department disapproving the domestic allotment farm relief bill passed by the House on the ground it would be impracticable, was received today by Chairman McNary, Repub- lican, of Oregon, of the Senate Agricu- ture Committee. The bill, said Hyde, “presents cer- tain economic and administrative prob- lems which seriously affect the prac- ticability of the measure.” After reviewing its features, the Sec- retary concluded: “In my judgment this bill would not afford substantial relief to agriculture, and contemplates such drastic regula- tion as to be impossible of effective administration.” freely predicted that President Hoover would veto it should it pass. ‘The bill has been rgoned favorably to the Senate, but with elimination of its provisions for controlling acreage and with the number of products it covers reduced from seven to two. The Secretary said “unless the acreage reduction is obtained and enforced the ‘adjustment ex-certificate’ ‘o ‘fair ex- change allowance’ becomes & pure bonus which would stimulate production and defeat the purposes of the act.” Fears Reduced Consumption. Secretary Hyde also expressed the view that consumption of the products covered would be materially reduced, “Since substitutes for all of the com- modities named in the bill, except to- bacco, can be easily obtained,” he wrote, “and at prices lower than the enhanced prices to consumers contemplated in the bill, it is probable that a material drop in consumption would result.” In the case of hogs, he said, “the proposed tax would depress the price to the producer to such an extent that the total returns, including the price sup- plement, would be increased very little.” Items Eliminated. The Senate Agriculture Committee eliminated hogs, rice, peanuts, tobacco and dairy products from the bill, which provides for a tax on the processor to pay the farmer an amount which would raise his price on his domestically con- sumed output to the prewar level. Before the House Banking Commit- tee today, Representative Hancock, Dem- ocrat, of North Carolina, urged adoption of his bill to permit farm borrowers from Federal land banks to surrender in payment of his debt bonds of the banks from which he borrowed. HASTINGS TO SPEAK IN RADIO FORUM Need of Bankruptcy Relief Legis- lation Topic of Delaware Senator Tonight. ‘The need of bankruptey relief legislation will be discussed tonight by Senator Hastings, Republican, of Delaware, in the National Radio Forum, arranged by The Evening Star and broadcast over WRC and a coast-to-coast network of other National Broadcasting Co. sta- tions between 10:30 and 11 o'clock. Senator Hastings will explain detalls of the bankruptcy bill which the Senate Judiciary Committee has approved. The speaker is in charge of the bill in the Senate. ‘The Senator from Delaware was ap- pointed to succeed Senator Du Pont on the latter's resignation because of ill health in 1928. Senator Hastings was elected later for the full term of six years, beginning March 4, 1931. PATENT LAWYER, MEMBER OF D. C. FIRM, DEAD Frederick L. Emery, Native of Maine, Found Lifeless in Balti- more Hotel Room. By the Assoclated Press. NEW YORK, February 17.—Frederick L. Emery, 65, patent lawyer of Lexing- ton, Mass, and member of patent law firms in Boston, New York and Wash- ington, was found dead in his bed at the Biltmore Hotel yesterday. Mr. Emery had been suffering from diabetes, and Mrs. Emery was with him constantly during the last 10 days. He was born in Portland, Me., May 15, 1867. He was a founder of the First Church of Christ Scientist in Lexington and was a leader in the Christian Science movement. land, of Lexington, survive. Burial will be in Westview Cemetery, Lexington, after funeral services Sunday at Mount Alban Chapel, in Cambridge, Mass. Mr. Emery was senior partner in the firm of Emery, Booth, Varney & Hol- combe of this city. He had never re- sided here, but was known among mem- bers of the profesison through frequent visits to the Capital. HYDE LETTER TS ALLOTMENT PLAN ‘The letter was the first official ex- | pression of the administration’s attitude | toward the bill, although it has been | The widow and a son, Le- | 3 REICH RESTRICTS GRAIN Foreign Shipments Blocked Except Under Agreements. BERLIN, February 17 (#).—The cabi- net today adopted measures keeping from the market all foreign grain ex- cept such as is imported under an ex- change agreement. The government plans to create spe- | cial export regulations for wheat, rye and oats, the nature of which has not yet been divulged. The government will order, the mixing of rye and potato flakes for feeding pigs and eosined wheat for chickens. HOUSE CONFEREES Amendment to Force 5 Per Cent Saving Meets With Strong Opposition. ‘The Bratton amendment to the gen- eral economy bill, by which the Senate is seeking to require all Government | departments to cut expenditures next year 5. per cent below appropriations granted by Congress, met with strong opposition from House members when | the conferees reached this section of | the bill today. | The House itself will be asked early next week to express its position on this and other important Senate changes in the economy program, be- cause the entire economy portion of the bill will be taken back to the House before a final agreement is reached on the Treasury-Post Office bill, to which the economy program is attached. The conferees are meeting daily in | executive session and are not announc- ing any decisions as they go along, but indications are that the 5 per cent | savings amendment is being opposed by | House conferees. Single Amendment. ‘When they take the economy sections back for a separate vote in the House | the House conferees may submit the question without recommendation, or they may recommend that their branch of Congress either disapprove or mod- ify the 5 per cent amendment. Although the economy portion of the bill covers a wide variety of issues, including far-reaching reorganization powers for President-elect Roosevelt, it was trcated by the Senate as one amendment to the Treasury-Post Office bill, divided into numerous sections. It is believed, however, it will be pos- sible to have the House vote separately on particular sections before voting on the economy amendment as a whole. After the House indicates its stand |in this way a further conference be- tween the managers for both branches would be held, unless the vote in the House should result in acceptance of the Senate amendments without change. Test Monday or Tuesday. It is understood that nearly all of today’s executive session was devoted to argument over the 5 per cent saving amendment. The conference, it is re- ported, had just reached the problem of Government reorganization when ad- journment was taken until tomorrow. If the discussion on reorganization can be completed tomorrow, the House managers would be ready to go back to the House Monday or Tuesday for the test vote to ascertain the sentiments of that body on the economy provisions. The reorganization section as passed | by the Senate would enable the Presi- dent to consolidate or abolish bureaus and independent establishments, unless | Congress should disapprove his plans by a joint resolution within 90 days after the plans are submitted. Such| a resolution, however, would require | the signature of the President, and if| | he vetoed such a resolution the net result would be that a two-thirds vote of both branches would then be neces- so;ry in order to stop his reorganization plan, | ALBERT WIN.S;HP, NOTED EDUCATOR, DIES AT 87 Known Throughout United States for Activities as Editor, Lecturer and Author. By the Assoclated Press. CAMBRIDGE, Mass., February 17.— Albert E. Winship, editor, lecturer and author, died today at the age of 87. He was known throughout the country through his connections with the American Education Association. He had spoken at every semi-annual meet- ing of that organization for 68 years. Born in West Bridgewater, he served in the Civil War and returned to be- come principal of a grammar school in FIGHT BRATTON CUT HUNGRY TEACHERS FAINT IN SERVICE |Eastern Educators’ Session | Told Depression Hardships. Children Subtitute. By the Assoclated Press—___— NEW YORK, February 17.—School teachers working without pay until they faint from undernourishment were de- scribed to a conference of educators from seven Eastern States held at Teachers Ccllege, Columpia University, yesterday. Children pald $1 a week to replace adult workers were also mentioned as examples of an added problem forced upon educators by the economic de- pression. The conference was called by William F. Ruseell, dean of Teachers College, to consider “plans for education during the depression.” It was decided to draw up specific recommenations “to do more ccucational work for less money” if rossib’e to be presented at the meeting of the Naticnal Education tion Superintendents at Minneapolis soon. Own Pay Reduced. | Speaker after speaker today related | how teachers have cut their own pay | voluntarily as well as by enactment and s2id the big problem is saving the | American child from infury cious cuts in schcol activities. | FPrank G. Pickeli superintendent of ‘schcols of Montclair, N. J., reported | that “hundreds” of teachers in parts | of Southern New Jerrey had received no pay this year. “They are phy:ically |unfit to go on,” he added; “they are | dmp::lnz every day from undernourish- | ment.” tary of the National Child Labor Com- | mittee, New York, said there was “less | cpcportunity for graduates of schools | to get jobs in which any sort of educa- tional training is useful.” Exploitation of Young. “Instead there is tremendous ex- cheap labor,” he asserted. “Some work 51 hours a week for $1 to $3 weekly. * * * There is a de- crease in child labor in the depression, | lion children of 7 to 17 are employed in the United States today.” FIGHTING RENEWED ON LETICIA FRONT, BRAZILIANS REPORT (Continued(From First Page.) the city where Peruvians ousted Co- lombian officials last September, caus- ing the conflict. (Lima, Peru, dispatches said Bra- zilian_channels on the upper Amazon Te barred yesterday to Colombia and Tu. This was expected to isolate the Culon)lbh flotilla which reached Tara- paca. The Colombian gunboats Bogota an Sucre, from France and New York, we'l: expected February 20 en route to join the forces of Alfredo Vasques Cobo, Co- lombian commander T in the disputed LEAGUE APPEAL WEIGHED, Colombia May Request Intervention Within Next 24 Hours, GENEVA, February 17 (£)—It was reported today that the .government of Colombia may within the next 24 hours appeal to the League of Nations to in- tervene in the conflict with Peru o the Leticia district. e U. S. LEFT IN CHARGE. Colombian Legation at Lima Taken Over for War Period. The United States has taken charge of the Colombian legation in Lima, Pery, following severing of diplomatic rela- tions between the two countries. Secretary Stimson said today that had been made after ascertal i Peru was willing. e that TRAIN RUNS DRIVERLESS AS ENGINEER IS KILLED Automatic Control Device Stops It. Pilot Fatally Hurt Lean- ing From Cab. By the Associated Press. Newton. Later he taught at the State | Normal School at Bridgewater. He studied at the Andover Theological | Seminary and became pastor of a| | church in Somerville. He became editor | Envoy on Way to Resign. LAREDO, Tex., February 17 ().— Ambassador J. Reuben Clark, jr., passed through Laredo in a private car yesterday en route to Washington where he will submit his resignation. He was accompanig§ by Mrs. Clark and their daughter, TROY, N. Y., February 17.—A com- muters’ {rain ran driverless for & short distance late yesterday when the engi- neer was injured fatally as he sat at the throttle. en he as the train ran under a bridge at Menands. The train ran until stopped by an au- tomatic train control vice in the same village. ‘When another train stopped behind the halted train, Harry Warren, jr., 26, son of the engineer and a passenger on the second train, ran forward to learn of the injury to his father. He accom- anied the engineer to & hospital, where e died, r by injudi- ; Courtenay Dinwiddie, general secre-: ploitaticn of these young people for |relief but an increase in exploitation of chil- & dren used to replace adults. Two mil- | PASSED BY SENATE State-Justice-Commerce-La- bor Bill Voted—Others Are Pressed. Spurred on by the approach of the session’s end, the Senate late yesterday passed the $100,000,000 appropriation bill for the State, Justice, Commerce and Labor Departments, and may try to get action today or tomorrow on the independent offices supply bill. yesterday reported dut the legislative bill, carrying $16,646524 for the next fiscal year, an increshe of $56.646 over the House total. The items added by the Senate committee to this bill were: For reporting Senate debates, an in- crease of $1,006; for repairs and im- provements to the kitchens and res- laurants of the Senate and Senate Office Bullding, $20,000, : - for ex- penses of the Senate Of.. ,iiding, $35,640. The committee also authorized the Government Printing Office to con- struct a one-story extension to its plant, to be paid from the working capital fund of the office, While the State-Justice-Commerce- Labor bill was being cunudendmxynen“;- day, 1&nnmr Tydings, Democrat, of Marylind, was beaten without roll call votes in several attempts to reduce the amount in the bill for prohibition en- forcement. The amount for this pur- pose remained at $8,440,000, as reported jIrom committee and as allowed by the | House. Tydings tried to have it cut to $7.700,000. After this motion was beaten, he sugeested two smaller re- ductions, which also were defeated. The Senate also defeated mottens by Senator King, Democrat, of Utah, to have the bill recommitted to committes for further reductions in the total. CENSORSHIP BARS FOUR NEWSPAPERS Suspension Ordered Under New Laws Established by / Hitler. By the Associated Press, / BERLIN, February_47.—Four more newspapers were under suspension to- day for violating the new rigorous cen- sorship laws established within a week after Adolf Hitler became chancellor. The Democratic erful Ullsteln chain. of Bewspapers. wes forbidden to publish for a week for allegedly misconstruing & market re- port and thereby undermining confi- dence in the government. e The Socialist Volkszeis t workers' weeklies were banned until :fi”mt von Hindenburg signed the) censorship decree ordghm- ary 6 ne %:Wuldbehmnedonly for s decree broadened the grounds for censorship itly and seve eral Socialist and Cm{:;n organs, Including the chief publications of those opposition parties, have been banned for various lengths of time. PO MISSOURI ASKS LOAN ! OF $1,345,354 BY R. F. C. Gov. Guy B. Park Forwards Ap- Plication for Jobless Aid in Spring. By the Associated Press, CITY, Mo, Fe X ! —Gov. Guy B. Park last mwflg- |warded an application to the Recon ;t‘rsucuun Finance Corporation for $1,- 354 for unemployment relief - fn e during March and April, He subsequeéntly announced fl State had to re- it in url already has proximately- $2,500,000 fro:ct;!: 5 ‘p: truction Pinance n for un- employment ‘relief. Song Author Dies. LOS ANGELES, February 17 - After a four-month siege zth a (sam- ach disorder, Paul Hamblin, 33, well know Cowboy song author, guide and broncho “buster,” died yesterday. His songs included “Strawberry Roan." He was brought here from his Utah ranch home by his wife, Mrs. Beverly Dunham Hamblin, for treatment. She is the daughter ‘of O. E. Dunham, wealthy business man of Boston. Hiccoughs for Ten Days. WAYNESBORO, Va, February 17 (P).—Entering his tenth day of suffer- ing from the mal coughing at the rate of 28 times a minute, = dition of John M. mL:r‘;: g Was un- changed this mq E 3 oy ¢ orning, hospital attend. O, Mollison at Buenos Aires. BUENOS AIRES, February 17 (#).— Capt. James A. Mollison relched(‘r?m last night from Rio De Janeiro, com- pleting the first flight from England to Argentina in seven flying days. Your Income Tax No. 19. Deduction for Bad Debts. Bad debts constitute a considerable item in the returns of many taxpayers and may be treated in one of two ways —elther by deduction from gross income in respect to debts ascertained to be worthless either in whole or in part or by a deduction of a reasonable reserve for bad debts. Taxpayers were given | Colombia had made the request to the &n option for 1921 to select either of | United States and that the decision to ! | look after that country’s affairs in Pery!in the return for 1921 must be used the two methods. The method used in returns for subsequent years unless permission is granted by the commis- sioner of Internal Revenue to change to the other method. Application to change must be made at rior to the close of the for Vll!xiu:h the ch"l‘l;le is to be tive. However, a taxpayer filing & first return in 1932 may select either of the two methods, subject to the approval of the commissioner upon examination of the return. Permission to the reserve method is limited to payers having & large number of ac- counts where credit is extended over a considerable 'gerlnd of ume‘. It is not e purpose of handlin one specific debt. 4 ‘What constitutes a “reasonable ad- dition” to a reserve for bad debts must be determined in light of the facts, and will vary as between classes of b and with conditions of business pros- perity. A taxpayer using the reserve method should show in his return the volume of charge sales (or other busi- ness transactions) for the year, and he percentage of the reserve to such the reserve dlmnc“&' nnma