Evening Star Newspaper, February 27, 1933, Page 2

RITCHIE GALLS BANK PARLEY OF CITIZENS Calls on Depositors to Pass on Pending Legisiation in Holiday. By the Associated Press. BALTIMORE, February 27.—Gov. Albert C. Ritchie today sought the ad- 1ice of “representative citizens” on bank legislation. A group, described as “those who are not bankers and who reflect the views of the general depositing public” was summoned to confer with Maryland's chief executive as the State began the second of its three-day financial holi- day. The holiday was announced late Pri- day after a steady withdrayal from Baltimore banks had brought on a financial crisis. With a few exceptions, all financial institutions in the State, including banks, building and loan as- sociations and the Baltimore Stock Ex- change, were closed. The holiday was expected to end Wednesday. In meking the announcement that he was seeking outside advice, Gov. Ritchie said: “The legislation under consideration must necessarily be prepared in co-oper- ation with the bankers, who know the practical problems which must be met, but I want the advice and help of those who are not bankers and who reflect the views of the general depositing public.” The State Legislature, before which any measure prepared must be brought, convenes in Annapolis tonight. | ISSUES STATEMENT. Maryland Governor Declares Progress Made in Banking Situation. ANNAPOLIS, Md., February 27 (Spe- cial) —Following is the text of a state- ment issued last night by Gov. Ritchie relative to the banking situation: “I think that very real progress was de today in working out the legis- lation which, it is hoped, will meet the banking emergency. My determination is that first, last and all the time the interests of the depositors must be pro- kected as far as this can be done. That consideration comes before everything else, and to accomplish it I have been giving my whole time, night and day, &ince the bank holiday was proclaim L | ‘It is & great thing that many of our | banks are strong, but the real thing is 10 see that the legislation prepared gives the banks which-are not strong the op- portunity of getting their affairs in such | a shape as will enable them to open under conditions which will conserve the savings and resources of the depositors. “The legislation under consideration must necessarily be prepared in co- | operation with the bankers, who know the practical problems which must be met, tut I want the advice and help of those who are not bankers and who re- | flect, the views of the general depositing public. “Accordingly, I will appoint a com- ‘mittee of representative citizens, and ask them to meet in the attorney general's office tomorrow afternoon and consider the provisions of the proposed legisla- tion, which I hope will be in at least tentative form by that time. I want the counsel of a committee of this kind on this question which concerns the happi- ness and contentment, the homes and the livelihood of the people of this‘ city and State more vitally than any | other question which has arisen in my | time.” STATE GIVEN RIGHT TO REOPEN BANKS| New York Law Empowers Super- intendent to Act on 80 Per Cent of Deposits. B the Associated Press. ALBANY, N. Y, February 27— Sunt. of Banks Broderick 1s empowered to reopen a bank a dar after he has taken it over, and to allow * depositors up to 80 per cent of the bank’s assets under the terms of the Robinson bill, which has been signed oy Gov. Lehman. It was one of 18 bills that became laws during the past week. The amount of cash to be paid out is left to the discretion of the bank- ing superintendent, but it cannot ex- ceed 80 per cent of the assets. For the balance of their deposits. the depositors will receive certificates which may be cashed as soon as the bank superintendent decides the institution can stand the strain of the payments. The law also permits the election of new officers and directors 60 days after the resumption of business at the bank and the former directors are eligible for | re-election. No dividends may be paid | to stockholders while the deposit certifi- cates are outstanding. MANY INDIANA BANKS LIMIT WITHDRAWALS Smaller Cities Follow Example Set by Indianapolis Clear- ing House. By the Assoclated Press. INDIANAPOLIS, February 27.—Na- tional and State banks in various In- diana citias today were limiting with- drawals from all types of depositors’ accounts to 5 per cent of balances as of Saturday, February 25. Following announcement this morn- ing of concerted action of the Indian- apolis clearing house, banks in other cities of the State instituted similar re- strictions. Luther F. Symons, State bank com- missioner, said the decision of the In- dianapolis banks was “the collective judgment of the best banking minds of the city.” Bankers throughout the State were promptly advised of the action in In- dianapolis and it was being left to the judgment of directors of each individual bank in Indiana as to whether the ex- ample of the Indianapolis tanks should be_followed. Under the new Indiana bank codifi- cation law, which was signed by Gov. Paul V. McNutt last week, directors of each individual bank may restrict with- drawal of deposits at any time after notice is given if they believe such ac-,| tion to be for the best interests of the depositors generally. FACES MURDER CHARGE Former Official Held at Shamokin, Pa.—Confession Claimed. SHAMOKIN, Pa., February 27 (). — Charged with murder, John Sautter, 32, | former coal township commissioner, is being held without bail. Authorities said he confessed killing Harry F. Enfl:rt. drug store clerk, last February 3, the belief that Englert ;\;ns a man whom he thought was after im. He was arrested last Thursday night on_suspicicn. Senator Walsh and Bride NEWLY WEDS PHOTOGRAPHED IN HAVANA. ENATOR THOMAS J. WALSH, Democrat, Montana, and his bride, the former Senora Mina Perez Chaument de Truffin, are shown above on the lawn of Mrs. Walsh's villa in suburban Havana immediately after their —A. P. Photo. marriage Saturday. Summary of Action To Help Depositors In Various States By the Associated Press. Out of the banking holiday in Michigan there had come today the nucleus of two new Detroit banks backed by the millions of Henry Ford. In Ohio, 18 banks in three cities—Cleveland, Akron and Day- ton—clamped down on withdraw- als in anticipation of emergency banking laws to relieve a situa- tion aggravated, according to Ohio bankers, by the emergency in Michigan. Gov. Ritchie of Maryland, where a bank holiday has been declared pending action by the Legislature to protect the interests of banks and public, sought today the advice of “representative citizens” concerning legislation to be enacted. Indlanapolis banks cpened to- day with withdrawals restricted to 5 per cent of the customer’s deposit. The restriction is “until further notice,” and was invoked, a statement by the clearing house explained, because of “unusual withdrawals for other than usual or business needs.” WTHORAWALS G BY 2 WO BAN Institutions With $815,000,- 000 in Deposits Await Legislative Action. By the Associated Press. COLUMBUS, Ohio, February 27— |up $5,625,000 for the successor to the filled two of the four vacancies, electing Twenty Ohio Banks, all but two in Cleveland, Akron, Dayton and Ycungs- town, today placed restrictions on heavy withdrawals In anticipation of emerg- ency banking laws Gov. George White promised to offer to the current Legis- lature. On the basis of December 31, 1932, statements. the institutions had more than $815,000,000 in deposits 2nd more than $1,025,000,000 in rescurces. Both in Akror and Cleveland, the banks announced future cepesits would be set aside and not be placed under the restrictions. All Dayton banks closed for a three-d=y holiday. One Refuses to Participate. All eight of Cleveland's benks opened as usual, but six of them limited with- drawals temporarily to 5 per cent of deposits, and a seventh, the Guardian | Trust, placed a restriction of 1 per | cent. The eighth, the National City Bank, derlined to participate and an-| ncunced it wou'd conduct buiness on | a normal basis. The six which limited withdrawals to 5 per cent of dep:its were the American Savings Bank, Central United National Bank, Cleveland Trust Co., Lorain Strest Savings & Trust Co., So- clety for Savings and Unicn Trust Co. | ‘While they placed no specified limit, the Union Nati-nal and th: Mahoning National Banks at Ycungstown an- nounced they would restrict large and | unusual withdrawals. Sufficient funds will be p2id cut on d:mard, they caid, to prevent incenvenience to customers. One Per Cent Per Month. Akron's five ' banks — First Central Trust Co.. Firestone Park Trust & Sav- ings Eank, the Commercial Bank & Trust Co., the Dime Savings Bank Co., and the Standard Savings Bank—re- stricted savings deposit withdrawals. to 1 per cent per month. “Aktrormal” checking account withdrawals will not be honored under a complicated cystem. ‘The four banks of Dayton—the Win- ters National, the Third National, the Merchants National and the Morris | Plan—declared a thres-day holiday under a declaration by the city com- mission and mayor. The Clinton Savings Bank Co., near Akron, announced it would follow the lead of Akron banks. (The TFirst American Trust Co. of Lima, ©Ohio, limited withdrawals to 2 per cent of deposits. There was no announced ac- tion to interrupt normal banking else- where in the State. Gov. White declined to divulge the nature of the proposed legislation. Manager G. A. Stephenson of the| Cleveland Clearing House Association, however, said the suggested laws would “enable the superintendent ‘of banks, with the approval of the Governor and attorney general, to stop or limit with- drawals from Ohio banks.” Fire Chief Dies in' Crash. ATLANTA, February 27 . (P).—Fire Chief John Terrell, for almost 43 years a member of the Atlanta Fire Depart- | ment, died today from injuries received | Sautter recently returned from Sioux City, Jowa, where he had lived a short wme, last night while answering a alarm. The chief’s car col another machine, | that it would complicate the Ford re- | stations. (Ulster ralwaymen have been | e e e o BANKS WILL OPEN i | | | | | |Manufacturer and Son Ex- | press Faith in Rehabili- tation of Detroit. | By the Associated Press. | __DETROIT, February 27.—Two new Detroit banks, buttressed by the mil- | lions of Henry Ford, today became the | keystone of plans to lead Michigan out | of the difficulties which resulted in the | proclamation of a State-wide banking ihollday two weeks ago. | The new banks, whose capital will consist of $8,250,000 furnished by Mr. | Ford and his son, Edsel, are expected to ‘open for business Wednesday. They will be built from the liquid assets of |the First National Bank and the | Guardian National Bank of Commerce, | whose depositors will be able to receive immediately about 30 per cent of their 5] to o 4 ngmr.he péovemmmt to restraint of WTHFORDMONEY HOOVER ASKS G.0.P. 10 BACK MONEY Letter Sent -Chairman San- ders at.National Com- mittee Meeting. (Continued From Firit Page) ‘will hurt tllnevpronuq and the welfare of the country. “The proposals, the principles and ideals cf ‘the party were set out in the last cam ‘They require po repe- tition here. will justify them- selves. Rather to review them even in the setting of present events, L prefer to say a word as to a platform Americans won which all can s ithout partisanship. “There are certdin fundamentals and safeguards of our Government 'which are not the property of any political party. They are the common necessi- tles of the entire people. They-embrace rigid adherance to the Constitution; enforcement of the laws without re- rson; assurance of the credit spending and provision of adequate revenue; provision of honor ard integrity of the Government in respect to its obligations, its security a its sound currency; insistence upon the responsibilities of local governments; advancement of world peace; adequate preparedness for defense; the cure of abuses which have crept into our eco- nomic and political systems; develop- ment of the security to homes and liv- ing; persistence in the initiative, equal opportunity and responsibilities of indi- viduals and institutions, and finally every encouragement to the develop- ment of our intellectual, moral and spiritual life. In great emergencies humanity in Government requires the utilization of the reserve strength of all branches of the Government, whether local or national, to protect our insti- tutions and our people from forces be- yond their control. This must and can be accomplished without violation of these fundamentals and safeguards. Frecdom for All Involved. “Upon these foundations lies the freedom, the welfare and the future of every citizen in the country. By them we will march forward. We do not claim them as the exclusive prop- erty of the Rpublican party. They are the inheritants of all parties. This is a program which can command the respect and support of all who would maintain the United States in the high | position amongst nations it now holds | and one from which we should not | deviate in fidelity “Yours faithfully, “HERBERT HOOVER."” In reply to this letter, the members | | of the Executive Committce sent the following message to the President: “The Executive Committee of the Repubiican National Committes ‘s pleased to have your inspiring message and sends you affectionate greetings. “As your administration draws to a close, we wish to express the deep ap- preciation of the loyal members of our party of your unceasing and effective labors in behalf of the American people. “Meeting for the first time since the | presidential election, we take this op- | portunity of congratulating you on | the great public service which you ren- dered in the campaign. Your straight- forward, penetrating discussion of pub- | lic jesues indelibly impressed the fun- | damentals of sound government upon the millions of voters in whose hands | rests the future of our country. Rely on Leadership. “The supporters of our great party | will continue to lcok to you for leader- ship in these difficult and dangerous | deposits. | Disbursement of the | per cent must await the liquidation of ‘the assets of the two banks. | The Ford announcement climaxed a week end of fast moving develop- | ments, during which officials of the | First Naticnal and the Guardian Na- | tional accepted a $78.000.000 loan from the Reconstruction Finance Corpora- tion to be used in the formation of the new banks, Rights Are Requested. | The Fords’ offer to subscribe the en- tire capital stock of the two new | banks "as accepted by directors and | stockholgers of the First National and | the Cuardian National grants the motor manufacturer and his son the |right to name the official personnel |of the new institutions and to ul- | timately merge them into one organ- ization. These rights were specifically | requested by the Fords. | Under the plan the Fords will put First National and $2.625.000 for the! successor of the Guardian National. Of | the $78,000,000 R. F. C. loan $54,000,000 | will go to the bank to be built out of | the First National and the remainder ! |to the bank to bz built from the Guardian National. In their statement which contained | | their offer to the bankers, Mr. Ford and his son said: 1 |, “The institutions so established will| be the type of financial structure that | will merit public faith in the ability of industrial Detroit to rchabilitate | itself.” The Detroit Savings Bank an- nounced yesterday it would resume its | commercial business today, but. would illmllt sa\'lnfts wltl’édrswnls to cases of real necessity and accept checks on ;znthe{ banks only subject to final pay- ent. Henry Ford's offices last night issusd a statement, reviewing the negotiations of the last few days in the Detroit ba:rxtkmg crisis. The statement sa'd in part: “Efforts of the officers of the ‘First National Bank and ‘the Guardian Na- tional Bank of Commerce to meet con- ditions laid dcwn by the Controller of the Currency and the Reconstruction Finance Corporation before Govern- ment aid would bz extended to Michigan resulted Friday in an offer from Henry and Edsel Ford to provide all the neces- sary capital for two new banks. The offer has now been accepted by the di- rectors and depositors of both the old banks. This will immediately provide Detroit with banking facilities and will begin the liquidation of the old banks with an immediate initial payment of about 30 per cent. “The Ford offer came upon the heels of Henry Ford's refusal to become a stotkholder in any bank plan thus far proposed. He had been appealed to on Thursday for permission to “freezs" part of his deposits in both old banks and have these amounts credited to him as bank stock in the proposed new in- fimu]nom. His reply was a definite re- usal, Grounds for Refusal. “The Ford refusal of Thursday was based upon two distinct grounds. First, lation to the general banking situation in Datroit. “The seccnd ground of refusal was his belief that as one stockholder emongst many he would have little or no influence over the iype of banking practiced gy the new institutions. He has very definite ideas concerning the functions and management of banks. He believes that bank loans should be made for productive and not speculative purposes. So revolutionary are some of his ideas along this line that he saw | little hopz of having them adopted by a bank board of which he would be but one member, and he would not own stock in any bank that continued to operate along the old lines.” — Belfast Stations Bombed. BELFAST, Northern Ireland, Febru- ary 27 (#)—Two bombs were exploded over the week end in Belfast railway on strike for almost three weeks follow- ing upon B wage controversy.) Police remaining 70 | | caused by the death of Mr. Mulvane. days, and we of the party organization are relying upon your counsel and co- | operation in solving the many problems | before us. “We earnestly hope, Mr. President. ‘thnt the years to come will bring you health of body and tranquility of spirit |and we are convinced they will bring you an ever-increasing measure of gratitude from your fellow countrymen.” ‘This was signed by all committee | members attending the meeting. The committee adopted resoluticns | expressing its grief upon the death cof former President Calvin Coolidge. Reso- lutions were adopted also expressing | the regret of the committee upon the death of David Mulvane, for many years naticnal committeeman from | Kansas, and the death of J. Cocke, the | committee member from Pennsylvania. The members of the committee will be entertained at the White House at | tea at 5:30 p.m. today by the President. Two Vacancies Filled. At its morning session the committee Albert G. Simms as the committeeman for New Mexico, in place of Senater Cutting, resigned. Mr. Simms is a for- mer member of the House and is the husband of Mrs. Ruth Hannah Simms. ‘The cther vacancy filled was that J. D. M. Hamilton of Topeka was elected in his place. ‘The committee did not act upon the vacancies in the committee in Porto Rico, aweiting the formal credentials of Juan B. Hyke. In his call for the meeting of the Executive Committee, Chairman San- ders said the primary purpose was ta outline and discuss plans for the work of the netional organization during the year. This will include raising funds for the bucget necessary for the active functioning of national headquarters in Washingten, as well as funds to wips out the deficit of about $200,000, a leg- acy of the last campaign. The plans of the committee look to close co- operation with the Senatorial and Con- gressional Campaign Committees in the 1934 campaign. Those at Conference. In addition to Chairman Sanders, those members of the committee a tending today’s meeting were J. Henry Roraback, vice chairman, of Ccnnecti- cut; George BeB. Keim, secretary, New Jersey; J. R. Nutt, treasurer, Ohio; Mrs. Grace' Semple Burlingham, Missouri; George A. Ball, Indiana; Mrs, Nanni L. Fosseen, Minnesota; Mrs. Guy Gannett, Maine; Charles D. Hilles, New York; Earl S. Kinsley, Vermont; Harrison E. Spangler, Iowa: Postmaster. General Walter Brown, Ohio; Mrs. Worthington Scranton, Pennsylvania; John Richard- son, Massachusetts; R. B. Creager, Texas, and Mrs. Bertha D. Baur, Illinois. The meeting of the Republicans ap- parently was entirely harmonious. Despite reports some time ago that ef- forts might be made to reorganize the National Committee, particularly with reference to selection of a chairman, there was no move of that kind sug- gested. It has been generally consid- ered by most of the Republican leaders that Chairman Sanders will continue to hold on as head of the national organ- ization for some time to come, or cer~ tainly until he of his own accord pro- poses to retive. T. J. WALSH RESIGNS Leaves Senate Saturday—Governor to Name Successor Shortly. HELENA, Mont., February 27 (#).— ‘The resignation of Thomas J. Walsh as senior United States Senator of Mon- tana was_received yesterday by Gov. Erickson. It becomes effective next Sat- urday, 4. Senator Walsh is slated to become Attorney General in the Rocsevelt cabi- net. The Governor said he will name 8 successor to the veteran Sena “shortly.” .- Crash Kills 14 Miners. JOHANNESBURG, South Afric2, Fab- 27 (#).—Two Europzans and 12 ve miners were killed today when as yet have been unable to any and elevator cage crashed to the bottom of a 7,000-foot shaft at the Y, FEBRUARY 2 Great War Drama Unfolds in Jehol INVADERS FACE DEFENDERS IN MOUNTAIN STRONGHOLDS. Jehol, where Japanese, Manchukuoans and Chinese clash, is shown in this sketch map, with Japanese flags flying at Peipiao and Kailu, jumping off places for the drive intended to reach Jehol City and annex the whole province to th> ‘Tokio-fostered State of Manchukuo. Chinese flags fly at the capital and also at Lingyuan and Chihfeng, stronghelds in the mountains where the soldiers of Old Cathey hope to check the invaders. o E By the Associated Press. THE third act in Japan's drama of action sct in Jehol, a mountain- ous, railwayless land of opium traders and ancient Chinese | | tradition. The first curtain rose in Mukden, | There followed erection of the state | of Manchukuo, the summoning of Manchuria has opened, with the | Henry Pu-Yi, former “boy Emperor” o(‘ troops of China, to act as its nominal executive; | | its formal recognition by Tokio and & defersive alliance between the island empire and the infant government. ‘Then Manchukuo and Japan jointly | gram had no effect upon this militar- Istic policy. After months of preparation, the Manchukuo and Japan swarmed across the border. They start- ed their big push from Peipiao, half way up the old boundary, and from Kailu, northern gateway cil * At the mountain strengholds of capital of Manchuria, September 18, claimed Jehol as an integral part of the | Lingyuan and Chihfeng the riflomen 1931, when the Jspanesc seized the new nation. China’s protests to the and machine gunners of Chang Hsiao- arsenals of Chang Hsiao-Liang and ' League of Nations ard that body’s con- | Liang await the columns, with real war drove him into Northern China. demnation of the whole Japanese pro- as the prospect. SPEEDY PROGRESS EACOURACES TOKO Troops Push On, Hoping to; Capture Jehol City | by March 10. | (Continued From Pirst Page.) country to Japan, on finances and | credits and cotton and all war equip- ment, “and on cverything that would aid Japan in her cruel and cynical war against China.” JEHOL CITY BY MARCH 10. Japanese Officers, Encouraged by Rapid Progress, Set Goal. CHINCHOW, Manchuria, February 27 | (#).—Encouraged by the rapid sweep of | divisions under Lieut. Gens. Ycshikazu Nishi and Masayemon Sakemoto and Maj. Gen. Kennosuke Mogi's cavairy brigade, Japanese officers were boast- | ing today that {hey will occupy Jehol | City on March 10, anniversary of the | 1905 battle of Mukden in the Russo- | Japanese War. | These forces were apprcaching the | important mountain of Lingyuan and Chihfeng, above half-way poinis | in their advarces across Jehol, de-| scribed as thz last important line of | the Chinese defense. ‘ Japanese officers said the progress of their troops was easier and cheaper | than the high command hoped for. The Mukden anniversary is the army's memorial day. Such confilence persists despite the fact that an infantry brigade under Maj. \Gen. Hiejiro Hattori was checked in Southeastern Jehol where a battle wzs lasting all morning. It was the first place whers Japaness tested the mettle of the regulars of Marshal Chang | Hsiao-Liang, North China inilitary, ruler, and it was reported the heaviest | engagement thus far in the campaign. Chinese Hold Ground. The Hattorl brigade was halted at Shamoashan, about 100 miles east of Jehol City and only 15 miles inside the border. Marshal Chang's regulars held their ground desoite repeated attacks. ‘Marshal Chang'’s 19th Brigade made Shamaoshan, on the rcute to Wukungfu, southern mountain e to Jehol City, a key point. Emplacements of &r- tillery an?_l n":'nchlnz guns in the hills held off the Japanese. For a ucondl’t?me Maj. Gen. Hattori | was forced to call on the air force from this base to bomb the Chinese defend- ers. It was disclosed that one of Lieut.| Gen. Yoshimichi Suzuki’s regiments was swinging southwestward from | Chaoyang end menacing the Chingse left flank in this area. Japanese aviators ‘claimed they were eager to engage Marshal Chang’s air force in the first air combats. Japa- nese assert Americans, Russians and other Occidentals are piloting a portion of the 34 Chinese planes sent into Jehol. Japanese Bomb Town. Japanese pianes bombing the neigh- borhood of Lingyuan, 60 miles south- west_of Chaoyang, which was captured Saturday, reported 1,000 Chinese casual- ties resulting from the bambardment. The Chinese estimated their total casualties at 1,000 and claimed: 600 Japanese were killed ‘wounded near After scaling Lingyuan's heights, the Japanese expect to make a speedy ad- vance over the 75-mile highway to Jehol City. ‘The other main ugemlve“n:ho cm;n‘ucl- ites easy going scal eng, % miles from the capital. This column was reported passing through Hopei, 95 miles southwest of Kailu, at 10 a.m. teday. Chihfeng was about @ miles away. Ayrounh Japanese offensive, midway between the two northern spearheads, was last reported nearing the Jehol border town of Suitung, about 60 miles south of Kailu. ‘The force which passed through Kailu and was approaching Chihfeng included Maj. Gen. Kennosuke Mogi's Cavalry | brigade, leading_the way, the sixth di- | 4878 vision under Lieut. Gen. Masayemon Sakamoto, and the native Manchukuan | ™ tor | army under Gen. Chang Hal-Peng. AMERICA TO CO-OPERATE. Will Act With Independent Judgment | problem. | in return for its co-operation. The Rus- | on Each Problem. By the Assaciatcd Press. American co-opergtion with the Ad- ;‘horr!y cumm::hs au&e‘g. by the Lea ations w‘ developments was announced today by the State Department. This Advisory Committee is not the Conciliaticn Commitiee, but another committee similarly organized for the purpose of following the d:velopments in the Far East and acting upon them | as they progress. No invitation has been extended to the United States to join th: Concilla- tion Committee, as it will not really | come into existence until Japan decides to re-enter the negot'ations at Geneva in an effort to establish peace. i It was made known that the United States will cc-operate guardedly with | the Advisory Ccmmittee and will act with independent judgment on each The State Department also made it | clear that the aciion cof this adminis- | tration is not designed to bind the in- | coming 2dministration. { It was explained that in its agreement | to co-operate with the Advisory Com- | mittee, the United States is.merely fol- | lowing out the poiicy outlined since the beginning of the clash in Manchuria. | SOVIET VIEWS AWAITED. \ League Heartened by U. S. Approval of Its Policy. GENEVA, February 27 (#).—Heart- | ened by -the United States Govern-| ment's approval of its stand in the | Sino-Japanese controversy, the League of Nations awaited today for an ex-| pression of views from Soviet Russia.| United States and Russia were to be invited by the League to join in di-| recting peace negotiations between | Japan and China whenever it may be | possible to conduct them. Delegates expresscd 'gx:uflutlon \upon receiving word that United States stood shoulder to shoulder with it in| opposing reccgnition of the Japanese- sponsored government of Manchukuo in Manchuria. (The United States also ennounced it was in “substantial ac- cord” with the findings of fact and “in general accord” with the conclusions in the League repori condemning Japan). It was believed Russia hopes to se- cure recognition itself from some of the governments represented in the League | sian delegation pointed out about half of the nations represented in the League's Committee of 21, charged with continuing peace efforts despite Japan's withdrawal, do not recognize Soviet Russia. WIDGW AND FOUR MEN, ARRESTED IN SLAYING| Police Say Quartet Confessed| George Carl Was Killed to Obtain $15,000 Insurance. By the Associated Press. CHICAGO, February 27.—Mystery which enveloped the death last July 16 of George Carl, whose widow said his fate was “written” three days in ad- vance on the cards of a fortune teller, began to clear today, the police claimed, Vera Prances Carl, 36, his widow, was under arrest with four men who, police said, confessed Carl was slain to obtain $15,000 insurance. She has denled be- ing an accessory. Capt. Daniel Gilbert, State's attorney investigator, sald John Milosic, 50, father of two children, admitted he per- suaded Mrs. Carl to get her husband to take out lifé insurance and agree to his death. Her brother, Ivan Grilec, and Joseph Pess, 26, the latter as the ac:gll killer, also confessed, Gilbert said. During the early investigation last Summer, Mrs, Carl told of visiting a fortune teller thres days before the death and of drawing | cards, "mlurdgr, ‘widowhood M%fl in- quiry.” ‘Gilbert safd the fortune teller was not involved. ——a el HOWELL’S CONDITIOR: REPORTED -UNCHANGE! By the Assoclated Press. s The condition of Senator Rabert B. Howell, ill of pneumonia at Walter Reed Army Hospital today was bed as "un-l.gllhled" by his physician, Col. O. H. mittee which took to before the inquiry into the Broussard- Overton election. y Senator Howell's wife, the former Mrs, Alice Chase of Omaha, agrived here Inst with her son, 8; J. Cullingham. AR STANDS I AGANSTARNS BA Declares U S. Joining pther Powers Would Hurt China Unfairly. By the Assoctated Press. Chairman Borah of the Senate For- eign Relations Committee said today h> was opposed to joining European powars in an embargo on exports of arms to both Japan and China on the ground it would be of more assistance to Japan “I'm not in favor of following suit,” Borah said. “To put an arms embargo |on China and Japan is to take sides with Japan under the conditions and circumstances that now exist.” With a general authorization for the President to declare an embargo against arms shipments at a standstill in the Senate, House leaders decided today to delay any action on a similar measure affecting this continent until President-elect Roosevelt expresses his opinion upon such a step. Garner Also Is Firm. The decision came almost simulta- neously with the statement by Sir John Simon in London that the British gov- ernment, pending an international agrecement to declare an embargo against shipments of muitions to Japan and China, would issue no permits for such shipments. Word also arrived that France was willing to participate in a general em- bargo if the United States and Great Britain would join in international action. Speaker Garner said today that he would not permit the modified arms embargo resolution pending in the House to be taken up under susp:znsion of the rules. Efforts to bring it to the floor through the regular channels have failed. Gerner said the new President should have an opportunity to speak his mind. In the Senate an embargo resolution world-wide in scope was passed, but a motion by Senato: Bingham, Repub- lican, of Connecticui, to reccnsider is holding it in suspension. Fear Loss of Sales. Airplane and muniticns manufac- turers have opposed the step on the ground that if America alons imposed an embargo, the trade would merely be hanced over to foreign manufac- turers. The President now has authority to prevent the exportation of arms to any Latin American country where civil wer Is threatened except on an applica- | tion frcm the recognized government. He also has authority to prevent the shipment of arms to China without & request from the existing govern- | ment there. However, no authority now | is vested in the President to preven: shipments to countiiss which are threatening to go to war with one another in eny part of the world. CE TRl S LEWIS TO TAKE OVER ILLINOIS MINE UNION International Organization Con- trol Result of Bank Losses and Drop in Dues. By the Associated Press. SPRINGFIELD, Ill., February 27— John L. Lewis, president of the United Minc Workers of America, today an- nounced the international organization | P4 would take over complete control of the branch of the union Wednes- day at the request of the State officers. The action will mean the resignation of John H. Walker, president; Walter Nesbit, mnurg;te-.mrer. and other HULL AND LINDSAY DISCUSS BUSINESS Next Secretary of State and Ambassador Take Up Revival Program,. By the Assoclated Fress. Cordell Hull, Secretary of State m the Roosevelt cabinet, said today afte® 1 a conference with Sir Ronald Lindsay, inclding our own.” ’ As_this was the first meeting with the British envoy no “specific factors” were gone into in detail, Hull said, Preliminary Discussion. “It was a preliminary discussion which did not go further than broad general economic conditions in England and America and other countries to the | extent they affected the peoples in our respective countries together with more |or less discussion of the most funda- | mental remedies for business recovery,” Hull said. | Asked whether tariff and trade bar- | cculd not avold considering the .conse- | quences of trade barriers. Discusses Conference. In ccnnection with the world eco- nomic conference to be held in London | this Summer, Hull said: | "“1¢ the authorized spckesman of each | imporiant country should proclaim wholehearted support of the agenda of | this economic conference that in itself would start up business in every part of the world.” Thz agenda includes provision for | diszussion of tariff policies, financial | restrictions and exchange and similar | points bearirg on world business rela- tions, 'BRITISH COU'NTRYS-IDE COVERED WITH WATER Rising Temperatures and Heavy Rains Melt Snowdrifts of Last Week's Storm. By the Assoclated Press. LONDON, February 27.—With rising | temperatures and heavy rains melting the encwdrifts of last week's storm, large arees of the British Isles countrye | side were covered with water today. Villzges which previously had sufe fered privation from the snow blockade ;‘.ea now menaced by rapidly-rising cods. ‘The thickly populated Thames Vale ley was particularly threatened, The river already had overflown its banks at many poinis and was continuing to rise rapicly. In many cther paris of the country rivers were riting cut of their banks. The Wey River ro-e 8 feet at Guilford, creating a lake four miles long and & half mile wide. Meny residents were gri'.‘en to the tecond floors of their cm At Chippenham the Avon River was 9 feet above normal and wes ctill rising. FLYER LEAPS TO SAFETY WILLIAMEPORT, Pa. (#)—Joining th> “Caterpillar C.ub”* Walte: W. Seycrle, air mazil fiyer, landed with his parachute yesterdey in the fork of a tree near Crossforks while his plane eroshed. En route from Columbus. Ohio, to New York, Se:erle lost his bearings in the dense atmosphere over Cresson. After circling a while, he found himself over Crossforks as his ignition began to fail, and jumped to safety. The plane | was demolished. H. 8. Machmimm, postal inspector from Willlamsport, and an ins| from Harrisburg retrieved the mall, in- tact, and forwarded it by train w Harrisburg. WILL PROBE DEATH OF 4 Coroner to Investigate Auto Ac- cident in Chicago. CHICAGO, February 27 (@P—A coroner’s inquest into an accident in tuburban Glenview Saturday night in which Mr. and Mrs. Huron H. S8mith of Milwaukee and the latter's parents, Mr. and Mrs. Edward J. Clark of near Pendleton, Ind., were killed, will be held February 27 ay. The automobile was struck by a speeding passenger train. The bodies | will be taken to Fortville, Ind., after the inquest. S BLOWN TO HIS DEATH Philadelphia Boy, 14, Swept Into | River by Northwest Gale. PHILADELPHIA, February 27 (#.— Swept from his feet by a northwest gale, Ciro Formiglio, 14, was blown into the Delaware River and drowned yesterday. | ” The boy was blown into the water | as he walked along a bulkhead with two _companions. | The wind, reaching at times a 45- mile velocity, shattered windows and | signs in many sections of the city. Your Income Tax | No. 29. Deduction for Losses Other Than from Sale or Ex- change of Stocks and Bonds. Deductions for losses are divided into three classes, and to be allowed | must follow closely the wording of the | income tax laws. Losses are deduct- {ible if incurred (1) in the taxpayer's trade, business, or profession; (2) in any transaction entered into for profit; or (3) from fires, storms, shipwreck, or other casualties, or by theft. iness losses result, usually, from the purchase and sale of merchandise. Such losses usually are ascertained by means of inventories, which are re- quired whenever in the opinion of the commissioner of internal revenue their use is necessary to determine the in- come of any taxpayer. The term “transaction entered into for mv’ mnmp any kmd'l of business pro| on. For cxample, a taxpayer rchases an nmmnbge to be used colely for business purposes, and which {is sold at a loss. As this is a busi- ness proposition from start to finish, the loss is deductible. But ¢ he purchased the automobile t3 me for pleasure or convenience, the tion would not be allowed; it the sustained, as it comes the meaning of the word "mm." ‘Where damages result from the driving of an automobile with the automobile of the taxpayer lides, the Joss occasioned the taxpayer uk::hehd:d’ucfibh. sated for by