Evening Star Newspaper, February 25, 1933, Page 1

WEATHER. (U. 8. Weather Buresu Forecast.) Rain this afternoon and tonight; to- motrow, partly cloudy and colder; mini- mum temperature tonight about 42. Temperatures—Highest, 68 at 4 p.m. yesterday; lowest, 42 at 10 a.m. today. Full report on page A-14. Closing N. Y. Markets, Pages 12 & 13 Ch — No. 32,442, post office, Wa Entered as second class matter shington, D. C WITH SUNDAY MORNING EDITION ¢ Foening Sfat. WASHINGTON, D. C, SATURDAY, FEBRUARY 25, 1933—TWENTY-SIX PAGES: JAPANTHREATENS T0 TAKE WARFARE INTO CHINA PROPER WHEN JEHOL FALLS Gen. Muto Warns Marshal Chang “Aggressive Atti- tude” Will Mean Spread pf Invasion South of Province. ARMS EMBARGO WEIGHED BY LEAGUE COMMITTEE Armies of Enrperor Press 3 Offen- sives, Capturing 3 Cities—Tokio Cabinet Decides to Consider World Economic Parley Sep- arately From Geneva. By the Assoctated Press. The Japanese military com- mand announced the “big push” to wrest Jehol from Chinese rule began today and its offensives into the province were increased from two to three. Chaoyang, second city of Jehol, fell and the army in that secmrl continued its advance toward Jehcl City, about 150 miles south- eastward. Japanese reported us- ing bombing planes for the first time, although Chinese reports said they bombarded the city from the air for three days. The new advance, midway be- tween two main offensives, was reported launched from Changwu to Suitung, 70 miles southeast of Kailu. The northern offensive, occupying Kailu, 250 miles north- east of Jehol City, was reported by the Japanese to have met with “no opposition.” A new League of Nations Com- mittee charged with carrying for- ward attempts to settle the Sino- Japanese dispute, discussed a con- certed arms embargo against Japan and there were many ex- | pressions of approval. 1 ‘The Japanese cabinet decided to con- sider the question of participation in the World Disarmament, Economic and Labor Conferences separately from its decision to secede from the League, Gen. Nobuyoshi Muto, Japan's su- preme military and diplomatic repre- sentative in Manchuria, warned the North China military ruler, Marshal Chang Hsiao-Liang, that if he “dares to assume an aggressive attitude” against the Japanese army the warfare may spread south of Jehol. Marshal Chang already has sent troops against the Japanese. There are 3000 Americans, including 1322 sol- diers and Marines in the threatened area. Chinese military headquarters at Nanking issued a denial that Chaoyang and Kallu had been captured. i THREATENS NORTH CHINA. Muto Dares Chang to Resist Invasion of Jehol. CHANGCHUN, Manchuria, February 25 (#).—Gen. Ncbuyoshi Muto, the Em- peror’s chief advisor to the Manchukuo government and the army commander in chief, warned the North China mili- tary regime today that if it “dares to assume an aggressive attitude” toward the Japanese army in Jehol the war- fare may spread to North China proper. (Marshal Chang Hsiao-Liang, North China military ruler, has announced his determination to resist.the Japanese in Jehol to the utmost. Part of his army has been in the province for several weeks and were believed involved in some of the recent border skirmishes.) Gen. Muto issued the folluwing state- ment > “The Japanese army hopes operations ‘will not spread outside Manchukuo ter- ritory (Japan claims Jehol is an ‘inte- gral’ part of Manchuria), but if the North China military regime dares to assume an aggressive attitude against the Japanese army it may be impossible to prevent such a spread, in which case responsibility will rest with the Chinese.” The North China military regime maintains headquarters at Peiping, where there are about 700 American civilians and 544 United States Marines. ‘There are about 3,000 Americans in the entire North China treaty area, which may become involved in the fighting. There are 778 American soldiers at ‘Tientson, the port of Peiping, also in the treaty zone. The southwestern Jehol border is only 45 miles from Peiping, and Chinese, fearing invasion, already have removed historic treasures from the old, capital to southern cities. ARMS EMBARGO WEIGHED. League Committee of 21 Considers Concerted Act. GENEVA, February 25 (#).—The new League of Nations Committee of 21, charged with carrying forward at- tempts to settle the Sino-Japanese un- declared war, discussed with many ex- pressions of approval today an idea for a concerted arms embargo against Sales Tax Is Urged By W. W. Atterbury Also Favors Individual Treatment for Debtor Nations. | By the Associated Press. Individual treatment of war debtors | regulation of all transportation facil- ities were advocated before the Senate Finance Committee today by W. W. At- | terbury, president of the Pennsylvania | Railroad. ' Glenn Frank, president of the Uni- versity of Wisconsin, proposed placing all banks under the Federal Reserve System and other moves. Atterbury, who appeared but a few moments, smilingly told members in their study of economic ills and pos- sible remedies he was appearing “as a private citizen,” adding: “There is no panacea for the resump- tion of prosperity except the slow, pain- ful one of hitting the bottom and then slowly building up with a sane and economical foundation on which to build.” Adjustment of tariffs was termed by Atterbury an “essential element” in debt discussions, but he said he did not feel disarmament had any place in such negotiations. DAYGEN I GV TOMAYOR EERMA cial Respiration in Effort to Save His Life. By the Associated Press. MIAMI, Fla., February 25.—Mayor Anton J. Cermak of Chicago today readily agreed to submit to oxygen treatments as a part of his physicians' effort to save his life. He was fully conscious when the oxygen treatments started, Dr. Fred- erick Tice said. “I told him we have decided to administer oxygen, not be- cause of his serious condition, but be- cause it would help him to breath easier, “He readily agreed.” Dr. Tice made the statement as he came out of the room at 12:15 p.m. for a drink of water. He went back to the bedside immediately. Widespread heart muscle damage in the patient was reported by the physi- cians in a 10:30 bulletin issued after a' consultation of more than one hour, Exhaustion of the mayor is “quite marked, causing anxiety as to the ulti- mate outcome,” the bulletin said. Semi-Conscious at Times. “The latest electrocardiogram (a chart of the heart action) shows wide- spread heart muscle damage.” The fhayor's pulse at the time was 120 respiration 24, and temperature 9 9.4. During the night, Dr. J. W. Snyder, one of the attending physicians, said Cermak at times was semi-conscious, and that he appeared to be in a sort of daze. After an examination today, however, Dr. Tice said the patient was “fully conscious.” Members of the Cermak family gath- ered at the hospital again during the morning. They maintained a watch out- side the sick room until last midnight. ‘The official bulletin read by attend- ing physicians at 10:30 a.m. said: “Mayor Cermak’s condition remains practically unchanged so far as can be LOUDERBACK TRIAL PLANNED IN HOUSE Committee Prepares Naming Group of Five. By the Associated Press. A resolution naming five Representa- tives to prosecute Federal Judge Harold Louderback of California in his im- peachment trial before the Senate, was prepared by the House Judiciary Com- {x;mce today for immediate House ac- on, The resolution would name Chair- man Sumners of the committee, Brown- ing of Tennessee and Tarver of Georgia, Democrats, and La Guardia of New York and Sparks of Kansas, Republi- cans. La Guardia and Sparks go out of office March 4, but Sumners contended new men can be named in their places when the trial comes up in the next Congress. All the managers voted yes- terday for impeachment, while La Guardia sponsored the investigation of the jurist's officfal conduct. The resolution read: “Resolved, That a message be sent i to the Senate to inform them that the House has impeached Harold Louder- back, United States district judge for the Northern district of California, for misdemeanors in office, and that the Hcuse had adopted articles of im- peachment against said Harold Louder- back, judge as aforesaid, which the managers on the part of the House have been directed to carry to the Senate, an@ that Hatton W. Gordon Browning, Malcolm C. Tarver, Fiorella H. La Guardia and Charles Sparks, members of this House, been appointed such managers.” TEXAN CRITICALLY ILL Thomas W. Gregory Stricken Japan. (The British cabinet, when approv- ing instructions to its League delega- tion last Wednesday, decided Great Britain could not act independently for effective arms embargo on the Far East. of other countries was essential for any practical scheme.) The League will wait patiently for the day when Japan returns, President Paul Hymans of the assembly said. After the most critical meeting in its 13-year history yesterday, the assem- bly's overwhelming vote of condemna- tion of Japan's military policy in-Man- churfa was transmitted to the nations of the world. Invitations were before (- the United States and Russia, non- members, to join in efforts to direct peace parleys and settlembnt between China and Japan. _The orginel committee of 19, which Fage 2, Column 2.) The ministers held co-operation | tof After Conferring With Roosevelt. NEW YORK, February 25 (). Thomas Watt Gregory of Houston, Te: ill of pneumonia and pleurisy the Hotel Pennsylvania, was said by his phdv:lclnn to be in & critical condition y. Gregory became ill after his arrival here two weeks ago for a conference wt‘t.th President-elect Franklin D. velt. Dr. J. B. Nagel said the {ll man spent an uncomfortable night gnd that his condition was further complicated by the development.of acute diabetes. Chain Store Executive Killed. TORONTO, February 25 (®.—W. J. Pentland, president of Dominion Stores, Ltd., known from coast to coast as a chain store executive, was killed early today when his car struck a safety zone abutment. » Cl STIMSON PROVIDES At Senate Hearing ]} QUTLINE OF FOREIGN SITUATION How Far U. S. Will Go in Co- a balanced budget, o sales tax and| Operating With League on Manchuria a Point. SECRETARY THOUGHT ADVISED BY GENEVA Successor-to-Be Refuses Comment. Policy in Regard to Debt Among Discussions. By the Associated Press. In a conference designed to pave the way for him to take over the duties as Secretary of State, Senator Hull of Tennessee received today from Secre- tary Stimson a first-hand outline of this Sumners, | yioneq I country’s present foreign outlook. One of the points facing an early de- cision by the new administration is how far the United States will go in co-operating with the League of Nations in the Manchurian dispute between Japan and China, Secretary Stimson declined to discuss the matter before his conference with Hull, but he was believed to have re- ceived a communication from Physicians Resort to Artifi- | Le2&ue League Stand Speculation. Whether the United States will actu- ally agree to join the League of Nations Conciliation Commission or will merely restate its policy not to recognize Man- chukuo and not associate itself directly with the League Committee was a mat- ter of conjecture in official circles. Hull declined to comment before the conference. There also were to be discussed the policy America will assume toward European debtors. Senator Hull has arranged for talkk Monday with Ambas- sadors Lindsay of Great Britain and Claudel of France. Stimson and Hull also expected to talk over the plans for the latter to take over the direction of the depart- ment after March 4. Administration to Act Soon. That no time will be lost by the Roosevelt administration in dealing with the complicated foreign problems was indicated in a statement yesterday by Senator Hull that he would confer with Ambassador Claudel of France next Monday and would talk soon with Ambassador Lindsay of Great Britain, Restoration of world commerce and preservation of peace by “sane and realistic international co-operation” were emphasized by Hull as the major goals of the incoming administraticn. In his first press conference since ap- pointed to the premier post in the Roosevelt cabinet the Tennessee Sen- ator called for the observance of “inter- national good faith” by all nations and said it was “vital” that this country co-operate with the rest of the world in the work of peace so far as Ameri- can traditions and the Constitution permit. Carefully abstaining from mention- ing the undeclared wars in the Far East and South America, Hull asserted that “there should be no laxity on the part of this or any other nation in the ob- servance of both the letter and spirit of treaties and of international good faith.” This wes similar to a recent state- ment by President-elect Roosevelt. Debts to Be Discussed. Detalls of the war debt conferences to take place here soon will be discussed | with the Ambassadors of France and Great Britain—America’s biggest war debtors. The meeting with the French envoy added weight to the belief in some quar- ters that the United States may con- sent to hear the pleas of that country for readjustment of her debt. The French failure to pay the latest in- Resolution | stallment due is regarded by Roosevelt as & deferment rather than a default. Both Ambassadors recently have con- ferred with the President-elect, but de- talls of the parleys were not made pub- +| lic. Hull plans to see Roosevelt imme- diately after his conferences. After the talks with Stimson and the official representatives oi France and stock sales of the National City Bank Great Britain in this country, Hull ex- pects to go to New York to confer with of Virginia Mr. Roosevelt, probably the middle of next week. Appointments in Doubt. Until then, he said, nothing could be made known concerning the many ap- investigation pointments to diplomatic posts and to Authority for this was requested by important positions under him at the Senator Costigan, Democrat, of Colo- State Department. Out of the maze of speculation con- inquiry will end on Marc] cerning possible appointments, the ce- lection of Robert W. Bingham, Louis- been suggested frequently during the ville publisher, as Ambassador to Lon- National City inquiry by Ferdinand Pe- don has emerged with the most cer- C'::a. counsel for the Bank! tainty, The speculative quest for other pos- sibilities for key positions was stirred yesterday by disciosure that Hull had conferred with Bernard M. Baruch, tion of New York financier; Mrs. Ruth Bryan legal | \ gwen. Representative from Flcrida, who i as mentioned as minister to Denmark; Representative Ewin Davis of Tennessee, and Huston Thomp:son of Colorado. There were reports, without con- firmation, that Baruch definitely would not head the American delegation to the world economic conference in London this Summer. His name had been men- speculatively in that connection. — ave | WANT CLARK RENAMED AMBASSADOR TO MEXICO American Chamber of Commerce There Sends Petition Signed by Several Hundred. By the Associated Press. MEXICO CITY, February 25.—The American Chamber of Commerce here announced today that a petitian has been forwarded to President-elect Roosevelt asking that party affiliations be overlooked and that Ambassador J. Reuben Clark, jr., now in Washington, SEEK PROSECUTION IN BANKING PROBE Department of Justice Offi- cials Study Senate Com- mittee Findings. By the Associated Press. A study of recent testimony before the Senate Banking Committee to de- termine if it reveals any law viola- tions subject to criminal prosecution, was initiated today by the Justice De- partment. Copies of the testimony relating to “the operations of various banking. utility and investment security houses" were requested yesterday by Attorney General Mitchell. ‘This was made known as the commit- tee reccived evidence that the National City Bank of New York, forbidden by | law to deal in its own securities, ad- vanced credit for the purchase of its own stock through a brokerage house. Insull Companies Probed. In the past few days the investiga- tors also inquired at length into the collapse of various Insull companies, bringing into the testimony various New York and Chicago banks and Hal- sey, Stuart and Co., Chicago investment house. Meanwhile, in New York, George Z.! Medalie, United States attorney, asked Washington authorities for copies of the 1929 income tax return of Charles E. Mitchell, chairman of the National City Bank. The investigation was launched as a result of the banker's testimony before | the Senate Committee that in order to avold paying an income tax in that, year he sold stock in his bank to a rela- tive at a loss of nearly $2,800,000. He sald he repurchased the securities later. No_committee meeting was held w-l day, but it will resume operations Mon- day with testimony from Richard Whit- ney, president of the New York Stock Exchange, and Victor Schoepperle, vice president of the National City Co., the security-selling affiliate of the National City Bank. Whitney has been called to give his views on regulation of the Exchange in view of recent testimony. Nearly & year ago he denied before the commit- tee there were bear raids and market manipulations on the New York mar- ket. Held Argument for Bill. Closely following the evidence on the and its affillate, Senator Carter Glass sald today- it strengthened his contention that his pending bank reform bill should be passed. Among other things, it provides for divorc- ing banks and security affiliates. A move also was on to continue the through next season. Guided, the Violation of the banking laws has rado. Unless otherwise Commit- . Late yesterday Pecora laid before the committee an opinion prepared in 1911 by Frederick W. Lehmann, then Solicitor General, holding that forma- the National City Co. was il- The opinion was placed in the (Continued on Page 2, Column 4.) DEPUTIES TO HOLD DEBT DISCUSSION Former Premier Herriot to Ap- proach Matter Himself Next Week End. By the Associated Press. PARIS, February 25.—France's de- faulted payment on the American -war debt, and possibly the whole subject of the debts will be discussed in the Chamber of Deputies at the end of next week. Former Premier Edouard Herriot, who advocated payment, sald he the matter be returned to Mexico as Ambassador | pellation under the Democratic administration. It was sald the petition carried names of several hundred residen American business men. Communications Head Killed. SOFIA, Bulgaria, February 25 Stefan Ivanoff, director-general of post office, telegraph and telep servize, was stabbed to death office today by & recently dischax employe, s t | Roosevelt and “The conversations between Mr. e ndicated ‘et he s more ESE WRITERS HAD 0 ONIX ENCLOSED 30 CENTS \ _ Gunboat Is Loaded On British Vessel Bound for Shanghai By the Associated Press. SOUTHAMPTON, England, Feb- ruary 25.—The 15,000-ton liner Chitral is en route to Shanghai with a complete gunboat in her hold, knocked down. The gun- boat, H. M. S. Sandpiper, is in 10,000 pleces, which will be as- sembled at Shanghal. ‘The Sandpiper will carry a 3.7 howitzer and a 6-pound quick- firing gun. She will be 160 feet long with 180-ton displacement and a draught of only 2 feet, to | | enable her to work on shallow | | rivers. She was considered too shallow to make the 10.000-mile voyage under her own steam. RENOVIZING' DRIVE GETS AD CLUB AID Committee of 13 Named to Give Wide Publicity | to Plan. Joining enthustastically in the Reno- | vize Washington Campaign, the Wash- ington Advertising Club has appointed 8 special committee to take part in the movement. Responding promptly to an invitation | for co-operation of the club, extended by | Arthur B. Heaton, campaign chairman, | at the weekly luncheon of the club yes- terday in the Raleigh Hotel, Howard W. | Berry, president of the club, named a group of 13 members to give wide pub- licity to the renovizing plan. The Advertising Committee consists of James W. Hardey, chairman; Norman Kal, John Shoemaker, Bernard Viens, Col. Leroy W. Herron, F. C. Wheeler, Troland Cleare, Nelson P. Poynter, Ernest J. Johnston, Vincent F. Calla- han, Harry C. Butcher, Leroy Mark and Willlam T. Pierson. Chairman Hardey today called a meeting of the committee for Tuesday at 2 p.m. at club headquarters in the Raleigh Hotel. A comprehensive pro-, gram of publicity through newspaper advertising, - radio broadcasts, outdoor display. and other means of publicizing the drive will be considered at that time. Three Going to Philadelphia. Charles' J. Columbus, managing di- rector of the Advertising Club, will go to Philadelphia Monday with Mr, Heaton and Robert J. Cottrell, campaign secretary, to learn full details or .the Renovize Philadelphia Campaign, which was the inspiration for the local effort. Mr. Columbus wil make a study of the publicity methods that have attained such success in Philadelphia. Walter Barkdull, vice president of the Advertising Club, who "introduced Mr. Heaton yesterday, voiced the club's hearty indorsement of the renovizing program and pledged the earnest sup- port of its members. Mr. Heaton described similar cam- paigns to relieve unemployment, stimu- late business and improve property in several other cities, but pointed out that the movement.in Washington goes (Continued on Page 2, Column 7.) UNITED AIR LINE PLANE DESTROYED BY FIRE Jump Saves Pilot, but 500 Pounds of Mail and 85 Pounds of Exp;eu Is Burned. By the Assoclated Press. TOLEDO, . Ohio, February 25.—A United Air Line mail plane, piloted by N. A. Laurenzana, 26, Cleveland, was destroyed by fire early today when the plane mud'ov;lr after striking a bound- fence at the airport. ‘r;lve hundred pounds of mail and 85 of air express were destroyed. e north and west boundary lights at the fleld had been put out of commis- sion a few minutes before the crash, when lightning hit a pole. \ ,Laurenzana jumped a moment be- fore the gasoline tanks, filled with 153 gallons, ? , exploded. The plane, which left New York lsst night, was due in Chicago at 4:17 a.m. American Leticia Observer. RIO DE JANEIRO, Brazil, February 25 nited MEDICINAL LIQUOR MEASURE ADOPTED House Approves Unlimited Prescriptions by Vote of 168 to 160. By the Associated Press. ‘The House today passed the Celler | bill to remove limitations on the num- | ber of liquor prescriptions physicians may issue. The vote was 168 to 160. ‘The measure carries an amendment by Representative Schafer, Republican, of Wisconsin, to permit physicians to issue prescriptions for beer. It now goes to the Senate, where action is un- certain, Representative Blanton, Democrat, of Texas, who led the foes of the bill, forced a roll call vote. The measure is supported by the Prehibition and Industrial Alcohol Bu- reaus, the Treasury and the American Medical Association. It would amend .the Volstead act and remove the limit of one pint of whisky per patient every 10 days. Efforts of drys, led by Blanton, to block its consideration were defeated yesterday, 239 to 65. Taking command of the drys, Blan- ton charged that “this bill will make saloons out of drug stores and bar- tenders out of doctors.” Called Worse Than Beer Bill. “It is worse than the beer bill," Blan- ton shouted. “The wets are running true to form. You even have a wet. a former bartender presiding over the House. He should have on a white apron, and every doctor in the coun- try sheuld have on a white apron.” Blanton referred to Representative Palmisano, Democrat, of Maryland, who was in the chair. A prohibitionist colleague of Palm- isano's, Representative Goldsborough, Democrat, of Maryland, said “I am go- ing to vote against this bill, but I and the Maryland delegation resent the statements of the gentleman from Texas about our colleague.” “Mr. Palmisano, by hard work arose to the great station he now occupies, and we members of the Maryland dele- gation resent the aspersions cast him by the gentleman from Texas,” Goldsborcugh said. Yields Floor to Palmisano. Blanton arose and said, “personally I have nothing against the gentleman from Maryland and he knows that I am. his friend, and just to be a good sport 111“ yield to him two minutes on the oor. Palmisano relinquished the gavel and took the floor. NOMINATION OF NEWTON AS JUDGE IS PROTESTED By the Assoclated Press. ST. PAUL, February 25.—Tel signed py 18 Senators and 64 Repre- sentatives of the Minnesota Legislature, protesting the nomination of Waiter H. Newton, Minneapolis, as a Federal dis- trict judge for Minnesota, have been sent to Senator George Norris, Repub- lican, of Nebraska, chairman of the Senate Judiciary Committee. Newton, a secretary to President Hoo- ver, was nominated Monday by the President for the post vacant by the death of Judge W. A. Can{, Duluth. The telegrams to Norris saild New- ton’s “legal experience consists of a minor position as prosecuting attorney and the attorney for lumber interests in the Northwest. His record in Con- gress is reactionary and his viewpoint is not in sympathy with the people.” The only evening paper in Washington with the Au?ciated Press news service. % INGREASED FUNDS (#) Means Associated AS HEARINGS END Donovan Tells Senate Sub- committee Lump Sum Do- nation Is Too Little. EXCESS TAXATION SCORED BY AUDITOR Deficit Threatened With Down- ward Trend of Revenues—Res- toration of Items Urged. The Bingham subcommittee of the Senate was preparing today to mark up the changes it will recommend in the District appropriation bill after listen- ing to a strong plea by District Auditor Daniel J. Donovan late yester8ay for an increase in the Federal contribution, which the House is seeking to reduce from $7,775,000 this year to $6,500,000 for the next fiscal year. The subcommittee also has before it for decision requests from nearly every branch of the District government for restoration of urgently needed funds which were allowed by the Budget Bu- | reau but eliminated in the House bill. Taxi Conditions Scored. Chairman Patrick of the Public Utili- ties Commission told the subcommittee the commission is convinced present taxicab conditions are not satisfactory, | in discussing the need for better regula- tion. The commission has issued an order for a meter system, which would be prohibited by a clause in the House Dill. Questionec by Senators Copeland of New York, and Kendrick of Wyo- ming, Gen, Patrick estimated there are 4,000 cabs in operation, which he re- garded as more than necessary to ren- der the service. He said the zone sys- tem is unjust and discriminatory and that the commission concluded the zone system could not be worked out ade- | quately for Washington. The commit- tee also heard Assistant Corporation Counse] William A. Roberts on the taxi- cab problem. i One more brief hearing was held this | morning to get the views of the Public Utilities Commission on the House proviso which seeks to prohibit the | ordering of meters on taxicabs. The | subcommittee then ended the hearings and was expected to have the bill ready for action by the Senate Appropriations | Committee early in the week. | After presenting numerous s to show that there is a downward trend | in District revenue collections and that the city would have a deficit at the | close of this fiscal year on June 30 of | $440,934, the auditor concluded by de- |claring that the $6.500,000 lump sum veted by the House for next year is not an equitable Federal contribution. Capper Sees Inadequacy. When the auditor called the House | lump sum inadequete, Senator Capper, Republican, of Kansas, observed, “I think you are absolutely right.” He ASKED FOR CAPHTAL, said it gets a little discouraging at | times because of the attitude taken by | the House on the question. Donovan called the committee’s at- tention to the fact that the United | States Bureau of Efficiency, after a careful study, recommended that the | Federal share of District expenses should be approximately $10,200,000. | Denovan said the District started the | present fiscal year last July with a bal- ance on hand of $542,000 Wnd until a few days ago it was thought there would be a small balance of $8,100 at ihe close of this vear in June. He revealed at yesterday's hearing that information | compiled within the two days shows the expected deficit of $440,934 at the end of this year, even after al- lowing for the $2,135,000 ‘saved this year through the furlough and other provisions of the economy law. If it t|had not been for the economy law, Donovan said, the deficit for this year would have been $2,576,000. As to the next fiscal year, the auditor said the pending bill, as passed by the | House, would leave a surplus in June, 1934, of $4700,000. of which $2.500,000 would be in the general revenue fund, ISLEOO,OOO unexpended in the gas tax fund and $900,000 in the water depart- ment fund. This balance resulting from the sharp cuts made by the House throughout the pending bill would be diminished to whatever extent the Sen- ate decides to restore stricken items. Inasmuch as the gas tax fund cannot be used for any other purpose than highway work, and the water fund for no. other purpose than development and operation of the water system, the Sen- atg subcommittee members have indi- cated their intention of increasing these expenditures rather than allow these spcial tax collctions to repose idly in the Treasury. Economies and Revenues. Donovan stressed the point that the annual saving from the economy act is the only thing that is enabling the Dis- trict to get along with the present downward trend of revenue collections and the downward tendency of the Fed- eral contribution. For the two fiscal years of 1933 and 1934, he said the District, saving by reason of the econ- omy law will aggregate $4,135,600. With- out the economy law and with the Fed- eral contribution held down to $6,500.- 000 as advocated by the House, Donovan _ (Continued on Page 2, Column 1.) NEW AIRCRAFT CARRIER RANGER CHRISTENED BY FIRST LADY Newport News Ceremony Attended by Secretary Adams and Many Other Distinguished Persons. By the Associated Press. NEWPORT NEWS, Va, February 25.—America’s first naval vessel de- signed as an aircraft carrjer, from the cradle took to her element in the James River today, christened “Ranger” by Mrs. Herbert Hoover in what probably was her last official act as First Lady outside the National Capital. “I christen thee Ranger,” Mrs. Hoo- ver said, and with a swing of a silken cord crashed a flask of grapejuice |and zoomed while the vessel gained mo-Federal Reserve mentum, cut the water and swung into the stream. the official party with Mrs. Hoover were her matrons of honor, Mrs. William V. Pratt, wife of the Chief of Naval Operations, and Mrs. Emest L. Jahncke, wife of the As- sistant Secretary of the Navy; Secre- tary of the Navy Charles Prancis Adams, Assistant Secretary Navy Ernest L. Jahncke Homer L. Ferguson, president of the Newport News “rs'hipmlmag and Drydock Co., . Ferguson. Mrs. Hoover was attired in a smart brown dress and had an enormous bou- quet of flowers. ‘The Ranger took the water smoothly, leaving & white wake behind as rode into the broad James. The cheer- ing and screams of whistles continued long after she had left the ways, she | ing Yesterday's Circulation, 120,968 TWO CENTS. MARYLAND SHAPES RELIEF MEASURES INBANKINGHOLIDAY Ritchie Hopes for Enactment to Permit Reopening Wednesday. Press. DEPOSITORS’ INTERESTS DECLARED PARAMOUNT Legislature Expected - to Act Quickly, Returning Condi- tions to Normal, CUMBERLAND, Md., February 25. —Despite proclamation of Gov. Ritchie ordering all banks in Mary- land closed today, Monday and Tuesday, all Cumberland banks are open as usual, with usual orderly prdcedure, but are expected to close Monday and Tuesday. By the Associated Press - BALTIMORE, February 25—Every bank and financial institution in Mary=- land was closed today by proclamation of Gov. Albert C. Ritchie to stem heavy withdrawals from Baltimore concerns during the week. Gov. Ritchie, by his proclamation, declared a legal holiday and accom- panied it with a statement that the moratorium would be extended daily to include M nday and Tuesday, while the Maryland \eneral Assembly prepared legislation to aid the banks. The Governor’s proclamation, s in- terpreted by Attorney General Willlam Preston Lane, jr., affected banks, sav- ings institutions,” trust companies and build ng and loan associations, totaling more than 200 in the State, as well as the Baltimore Stock Exchange. R. F. C. Aid Held Likely. An Associated Press dispatch f Washington said !epresenwlpi\'es of x‘lfihné Reconstruction Corporation have been conferring with Maryland bank officials on the banking situation in that State for the last several days and although no corporation official would discuss the question it was understood here today that aid for the Maryland banks was likely to be arranged. Field workers for the corporation are keeping in close touch with State offi- clals as well as bank presidents and directors. Since the Michigan bank holidays of two weeks ago, more than the usual reticence has been shown by members of the corporation board in’ discussing anything connected with the banking situation. Executive meetings of the board have been held with all except the actually needed employes barred from the room. A $13.000,000 withdrawal, principally by small depositors, from Baltimore banks this week prompted the bankers of the State to confer at the Federal Reserve branch bank last night with Gov. Ritchie and State officials. The conference was followed by the Gov- ernor's proclamation and statement. Work Began on Aid Measure. Attorney General Lane immediately began, with the aid of John J. Ghin- gher, recently appointed State bang commissioner, and the State law and banking departments, several measures intended to relieve the financial con- cerns for iIntroduction in the State Legislature, which reconvenes at An- napolis Monday night. “The provisions of the proposed legis= lation were not revealed by the State officials, but bankers intimated they would be designed to declare the assets of all banking institutions “frozen” on a basis that would classify them in & manner governing the rate at which withdrawals from each institution would be permitted after the holiday's close. The hope was expressed by Gov. Ritchie that the Legislature would enact the measures by Tuesday to permit the banks to recpen Wednesday “with ample facilities available for the needs of the people.” No bank was singled out for the with- drawals, but was general throughout the city, $6.000,000 being taken out yester- day, while county banks were unaf- fected for the most part. Developments Cause Uneasiness. Bankers who attended the conference said the withdrawals resulted probably from an uneasy state of mind created by the State-wide suspension of bank withdrawals in Michigan, the closing of the Title Guarantee & Trust Co. here Monday and disclosures made before the Serate Banking and Currency Com= mittee in Washington during the week. The total resources of the 205 Mary= land banking concerns reporting to the controller of the currency amounted to $889,000,000 as of December 31, 1932. The deposits of the Baltimore banks was placed at half a billion dollars. Attorney General Lane said the in- terests of depositors will be paramont in drafting of legislation under which the Maryland banks will reopen after the banking holiday. A survey, he said, was being made of legislation recently enacted in other States to deal with banking situations similar to that in Maryland and this information would be utilized in formu- lating the bills for the general as:embly. Special attention was being paid legislation, particularly to the Iowa law, passed in January, providing for the withdrawal of deposits in per- centages fixed according to a time schedule and in some instances for the segregation cf old end new deposits. In declaring the Maryland bank holi- day, Gov. Ritchie relied upon a section g( the Maryland code, dealing witn bills of exchange and promissory (Continued on Page 2, Column 7.) PROFITABLE JANUARY REPORTED BY PACKERS Bank Survey Shows Increase in Sales and Pay Rolls. By the Assoclated Press. y reported a profitable January in the meat packing industry, on the basis of a N‘uop:-wido survey. Increases were reported in all de- partments and also in the number of employes and the size of pay rolls, the report said. Production rose 5 per cent, against an average ex- pansion of 2!, per cent, and was only 5 per cent lower than January, 1931. ‘While the number of employes dur- January was only slightly more than in December, the number of hours worked rose 7); cent and wage payments 61 per cemt, ‘ (32