Evening Star Newspaper, February 27, 1933, Page 4

ADNITS BOND SALE DESPTE DFALT Questioned on Peru- vian Issue. By the Associated Press, Eviderce that the N'nlionl\l City Co. had participated in a $15,000,000 Pe- ruvian loan in 1927, when it had on file communications from its representa- tives of Peru, saying several bond is- sues of that government were in de- | fault, was presented today to the Sen- ate Banking Committee Hugh B. Baker, president of the com- pany. said in response to questions of Ferdinand Pecora, the committee coun- sel, that there was nothing in com- munications to encourage a loan. He testified that the National City Co., the stock affiliate of the National City Bank, handled $5.000,000 of the Peruvian bonds, which were sold to the public at around $96 and now e sel- | ling for $7 and $8 a share. Resignations Announced. Baker was testifying when his resig- | nation as president of the company was announced in New York. Charles S. | Mitchell, chairman of the board of National City Bank, whose resignation was accepted today, was waiting to testify. The start of the hearing was delayed half an hour by a conference between members of the comypittee and Pecora in Chairman Norbeck’s office. The con- ferees would not disclose the nature of the discussion. Questioned on Procedure. Pecora began questioning Baker about the procedure of his company in floating security issues, particularly foreign bonds. Baker said he could not recall the total of South American bonds sold by the National City Co. adding that Ronald Byrns and Victor Schoeppele were the vice presidents in charge of South American issues. Schoeppele was expected to testify later today. The issues always were approved unanimously by the officers, Baker said. Pecora asked about an issue of $15.- 000,000 bonds for Peru, March 1, 1927, participated in by the National City Co. Baker said the National City Co. had an original participation of $3.- 000.000. which later was increased to $5,000,000. The bonds were issued at 96'> witiz & profit to the seller of about 5 points. The bonds are now selling between $7 and $8, Baker said. Reported Peru Was “Flat.” Pecora asked about a letter written to the company in 1921 by Claude W. Calvin, a National City Co. representa- tive in Peru. The letter said the Peruvian treasury was “flat on its back and gasping for breath.” Baker said he did not remember whether the letter was considered by the company executives in approving the Peruvian bond issue. As Pecora cited a number of mem- oranda from representatives in Peru about 1923, advising against loans in that country, Baker said he did not re- member specifically whether they were considered when the 1927 issue was approved. Finds No Encouragement. “If this memorandunr was discussed,” Pecora said at one point, “there was nothing to enccurage the officers in floating a loan?” “Certainly not,” Baker replied. Pecora read other communications. One, dated July 12, 1923, was signed by the manager of the National y Co. foreign company. It quoted a cablegram from Schoepple in London which said several issues of the Peruvian government were then in default. Among them was mentioned an issue of 1920, “In determining an issue of foreign ! securities to the investing public,” Pecora inquired, “‘were the past records of the nations taken into account?” “Yes,” Baker answered. Did the fact that Peruvian loans were in default in 1923 commend a loan | 1o that government “Not at that time.” | Another communication in 1923 said the Peruvian Congress was slow in| carrying out proposed reforms. Senator Reynolds (Democrat) of North Carolina asked if Mitchell was an ! THE EVENING STAR, WASHINGTON, Roosevelts at. Farewell Receptlon GREET . FRIENDS AND NEIGHBORS IN NEW YORK. at the Staatsburgh, N. Y, P High School, Saturday. Hyde Park his Summer White House. RESIDENT-ELECT AND MRS. ROOSEVELT, shown at their “farewell reception” to their friends and neighbors In a short talk Mr. Roosevelt stated that he planned to make —A. P. Photo. | | officer of the company when the Peru- vian loan was floated in 1927. Baker said he was president and be- Célml’ chairman in 1929. “Does he owe the company any money?” Reynolds asked. - “Not a cent,” Baker replied. Pecora called Schoepperle to stand. “Isn't it a fact the Peruvian govern- ment managed to balance its budget the only three times in the period from | 1915 to 19242 asked Pecora. “Yes,” replied Schoepperle. “And.” Pecora continued, “isn't it also | a fact that as a rule Peruvian expendi- tures exceeded Peruvian revenues by a substantial amcunt over the 10-year period?” Schoepperle said that was a fact “generally.” Conditions Reported Bad. Questioning Baker again, Pecora pro- duced reports by company employes in 1925 which showed that conditions in many industries were still bad He followed this, however, with one in December, 1925, which painted a much better picture of the Peruvian situation and said renewed _consid- eration should be given Peruvian financing, It said, however, the employe would not recommend loans on “unsecured government _obligations,” but have them secured with payments to be made to branches in Peru from government revenue “This was only vears, approximately, before this to- bacco boom?” Pecora asked, referring to the 1927 bond issue. “Yes,” Baker said. Pecora read from the memorandum an extract which said the company representative felt a secured Peruvian loan would involve no “greater risk” than other issues in which the National City company was interested. Progress Shown by Report. “Wasn't this the same gentleman who executed the loan agreement in 19 for your company “Yes.” Schoepperle replied, answering for Baker. “Was there anything in that memo- randum that encouraged the flotation of the tobacco lean in 1927?" Pecora asked. “It showed progress was being made,” Baker said. It also showed conditions were still disturbed economically and politically,” Pecora added “Yes, but with a favorable trend,” Baker said. Pecora asked what Baker understood from the phrase that under certain conditions the loan would be er, if as much, risk as other issues float- ed by the National City Co.” Baker said that meant an issue would be a “sound loan” and a “safe risk.” Pecora asserted the evidence he had | CLOSED ALL DAY IN/ would | one and a fourth |and the recent Insull investigatiins, “no great- | | fish, | presented showed that over & period of point- | Years the company’s agents had * ed out the hozards” of Peruvian loans. Baker said most of them, however, went back several years before the 1927 issue. “Yes, but they continued up to 19: two years before the loan was mad Pecora said The counsel then recalled a statement by Baker at the opening of the hearing that the “credit history” of a country was considered in studying forcign bond | 1.<<um You have noticed-your files showed credit history was bad?” Pecora " Baker replied, adding that the were showing improvement. Mitchell Taxes Probed. the Internal Revenue Bureau, and the Justice Department pressed investigations of Mitchell's 1929 income tax return An internal revenue agent, working in conjunction with the Senate com- mittee, was in New York over the week end checking up to determine whether the stock sale was a bona fide transaction The revenue agent was understood to be working under & subpoena from the Senate Committee and may be called before the investigating group to present h The Justice Department investigati was being handled Medale, district attorn s believed to be the same angle of the transaction. Prosecution Studied. Meanwhile, the criminal division of the department was undertaking a a study of the testimony before the Senate committee in the National City to was ground the national detcrmine whether there for prosecution under banking laws Mitchell testified before the Banking Committee last week that in order to avoid paying a tax that year, he sold bank stock to a relative at a loss of nearly $2800.000 and later repur- chased it.. The Banking Committee expected to | complete its National tion within a few days Whitney, president of City investiga- with Richard Senator Costigan, Democrat, of Colo- raao, moved to extend the committee's authority through the special session of Congress. He hoped for favorable action on a resolution to this end. European _scientists have discovered hat somg of the commonest fresh-water including trout and minnows, can change their tolor according to back- ground. AUGURATION DAY (MARCH 4) the New York Stock Exchange, as the final witn | TWO NATIONAL CITY OFFICIALS SUBMIT THEIR RESIGNATIONS __ (Continued From First Page.) the Security Distributing Co., \\hhh has sold some $20,000,000,000 worth of | ecurities since it was formed, said that pending legislative determination of the status of securities policy will be to confine the compar activities to Government, State, munic- ipal, and corporate bonds of the high- | est_character.” ‘The of the Naticnal City Co. had becn one first of big bank security affil- to offer common tomers in the bull ma ing bill would require di- of the security affli the banks, over a period of year Perkins will continue to head the City Bank Farmer Trust Co. as presi- dent. This institution took over trust department of National City s Natfonal City ted on a business. No ntw chaNman or president for | onal City Co. Nere chosen today and it was understood thst Horace Sylvester, a vice president, would act as its chief executive officer. MIIJSTREL SHOW READY Endeavor Society Plans Perform- ance at Y. M. C. A. Tomorrow. D. FEI PASTORS T0 FIGHT SUNDAY “MOVIES Montgomery Campaign to In- clude Petitions and Mass Meeting. MONDAY, Special Dispatch to The Star. ROCKVILLE, Md., February 27— ‘The move to modify the eo-called “blue laws” to permit Sunday movies in Montgomery County will meet with strong opposition on the part of the county’s clergy, it was learned here to- | day. Pastors of eight congregations met in the Methodist Church here over| the week-end and mapped out plans| for an intensive compaign in which petitions opposing modification of the present laws will be circulated and a | huge mass meeting held to nroteu‘ against enactment of the propwd\ legislation by the General Assembly. Signatures to Be Asked. ‘The petitions of protest will be dis- tributed among the pastors of the various churches in the county with the request that they obtain the sig- natures of the members of their con- gregation. A number made their ap- pearance around the churches yester- d;y and were signed by many people, it 1s said. | The mass meeting will be called for the county courthouse here shortly and will be addressed by a number of prominent residents of the county who favor retention of the laws in their | present form. Resolutions of protest | will be adopted and forwarded with the petitions to the Montgomery delega- | tion in the State Legislature. Rev. E. S. Sheepe, jr., pastor of the | Rockville Methodist Church, has been named chairman of a committee of Rockville pastors to choose speakers | for the meeting. which has been| tentatively set for the afternoon of | | Sunday, March 12. | Many at Meeting. | Rev. Sheepe presided at the meeting affiliates, the | held here to prepare plans for opposing " | the proposed modification of the “blue laws.” Others who attended were Rev. Henry K. Pasma, D. D., of the Rock- s | town Presby ville Presbyterian Church; Rev. J. | Lloyd ~ Black, Rockville Christian | Church; Rev. J. W. Lowden, Darnes- erfan Church: Rev. A. B Sapp, Colesville Methodist Church; | Rev. Frank A. Tyler, D. D, Gaithers- burg Grace Methodist Church: Rev. J. | H. Davidson, Potomac _Methodist Church and Rev. Melvin E. Lederer, Liberty Grove Methodist Church of Burtonsville. It was sald that a number of other clergymen who were unable to attend the meeting have assured those who | attended the meeting of their support. | | The Christian Endeavor Society of | the New York Avenue Presbyterian | Church will present a minstrel show tomorrow and Wednesday at the Young Audi- r is entitled “The! Men's Christian torium. The show Rags and Tatters Depression Minstrel” and was arranged and directed by Jack Association | | Donahue, assisted by Miss Constance | Adams. GET DOCUMENTS ONLY Yeggs Empty Two Safes of Colum- bia Specialty Paper Box Co. Business documents comprised the only loot found by yeggs who chiseled off the combinations and emptied two safes in the offices of the Columbia Specialty Paper Box Co., 228 First street, early today, officials of the con- cern told police vesterday. The safe-crackers, who entered the offices through a second-floor window, left burglar tools about the building, " investigators said. The February Sale of Lifetime Furniture Ends Tomorrow at 6. P.M. If savings count, now is the time to count them. Tomorrow will be the last day of the February Sale of Lifetime Furniture. Why not put everything else aside and come in tomorrow, first thing, and share in the savings? vings Now from Elite’s Twelve Convenient Branches 1301 9th Street N.W. 2119 14th Street N.W. 901 U Street N. 708 H Street N.E. W 4842 Georsia Ave. N.W. 1837 COIIIN\ R4 N.W. 3331 14th Street N.W. 110 Florida Ave. N.W. 2827 14th Street N.W. | the JRUARY 27, 1933. BOETTCHER SEARGH WIDENED BY POLICE Parley With - Father bon- vinces Detective Kidnap Victim Is Alive. By the Associated Press. DENVER, Pebruery 27.—The wife of Charles Boettcher, 2d, stiove today to remain calm as police planned a thor- ough search of Denver and its environs for the 3f-year-old wealthy broker and | his kidnapers. So certaln was she her husband | would be'released by midnight Satur- day, the deadline set for payment of $60,000 ransom by Claude K. Boettcher, | multi-millionaire father of the victim, she ordered her cook to prepare her husband’s. favorite ~food—Porterhouse steaks. She waited at her home Satur- day evening with her daughter, 5-year- old Anna Lou, while a policeman paced | @ the hallway outside the room. “I'm not going to break down; I'm | o) not going tux&’s" up hope,” she said | & ordered her to bed. i @ when physic! She is an expectant mother, From the home of the father came no announcement of the “definite steps” the elder Boettcher said he planned if (& his son, held captive more than two |l weeks, was not returned safely Satur-| day night. | Boettcher conferred for 15 minutes last night with Walter Byron, a private detective, who has been working on the § case and his assistant, Ray Laird. On| leaving the residence Byron declared | “we are certain Charles Boettcher is| alive.” Neither he nor Laird would | amplify the statement. Chief of Police Albert T. Clark said | search, in which volunteers will assist detectives and patrolmen, would make “this town so hot it will blaze” Searchers will visit every house, busi- | ness bullding and shack. | STRIKE PLANNED ‘ 300 Employes of Willys-Overland to Walk Out. TOLEDO, Ohio, February 27 UP).—‘ Plans for a strike of 300 employes nf‘ the Willys-Overland Co., effective m-‘ day, were approved yesterday at a meeting of 1,000 employes of the con: cern, which went into receivership | February 15. | The proposed strike would apply only in the department concerned with pre duction of trucks for the Internation: Harvesteg Co., which has a manufac- turing #greement with the Willy Overland. The 300 are numbered among 7,200 employes of Willys-Overland who are | owed approximately $300,000 in wages | unpaid since the receivership. | ‘TEANEC! | Mrs. Athilda Lankering Yeaton, SIX POLICEMEN HURT Riot Gun Is Accidentally Dis- charged by Officer. DALLAS, Tex., Fel 271 (B)— Six policemen were wound yesterday when a riot gun carried by one of them discharged accidentally, spraying the pavement with shot. The shotgun was in the hands of Detective Lieut. Charles Rader and went Off as he seized a Negro burglar suspect after a chase. e _wounded officers were: Rader, Capt. Norman D. Sergt. Vittrup and Patrolmen Hnrry Stewart, Ben Sanford and Harry Matlock. None of them was believed to have been seriously injured. FALL KILLS WOMAN Crushed When Horse Stumbles and Rolls Over Her. K, N. J., Pebruary 27 (#)— | 38, socially prominent, was crushed to death yesterday when the horse on which she was taking her customary r%; stumbled and rolled over her. er husband, Dr. W. L. Yeaton, and | their three sons. George, 12; Robert, 10, Positive proof that charges are reasonable is shown in the figures to the right, giv- ing the actual prices paid for our last 1,000 complete adult 3] funerals. Anton | CUBAN WOMEN TRAMPLED Panic Follows Police Break Up Communist Demonstration. MANZANILLO, Cuba, February 27 (#).—Police ahd rural guards fired over the heads of Communm demonstrators late last night, arrested two of them and broke up the demonstration. A number of persons walking in Cespedes Park were thrown into a panic and several women fainted and were trampled in the rush to escape. A mob stoned the Cuban Electric Co. odmcea and broke three plate-glass win- lows. ARCHBISHOP RECEIVED Buenos Aires Prelate Makes Visit to Vatican City. VATICAN CITY, February 27 (#)— Pope Plus today received ‘in private audience Archbishop Giacomo Lulgi | Copello of Buenos Aires, who was mak- |ing his first visit to the Pontiff since | he was named archbishop. The archbishop entering the audience |room knelt to kiss the holiness ring, but Pope Pius quickly raised him up |in_the friendliest manner. R R History Tells Less 'l'lull 8200, . 00. . $201 to $301 to $401 to $501 to $601 to . Over $900. . 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