Evening Star Newspaper, February 28, 1933, Page 2

F A2 ees THE EVENING STAR, WASHINGTON, D. O, TUESDAY, FEBRUARY 28, 1933, SENATE EXTENDS BANK BOND PROBE Securities Affiliates bf More Big Banks Probably Will - Be Stydied. : By the Associated Press. For at least another year the Senate Banking Committee will be free to pur- sue its inquiry into the stock market activities of bAnks, and it was indicated today several other securities affliates of big banks are to come within the committee’s study. In the midst of the committee’s in- vestigation of the activities of the Na- tional City Co. the securities affiliate of the National City Bank, the Senate adopted s resolution prolonging the life of the investigation until the end of the first session of the next Congress. Senator Couzens, Republican, of Michigan, told Ferdinand Pecora, the committee counsel, during the hearing today that he had some information regarding the Chase Securities Corpo- ration that he desired to give Pecora. “The corporation is the inyestment affili- ate of the Chase National Bank. Costigan Offers Resolution. The resolution extending the inquiry was offered by Senator Costigan (Dem- ocrat) of Colorado, who said there was no desire on the part of any one to stop the inquiry at a time when the com- mittee was in the midst of an important task. “I assume,” he said, “that no mem- ber of the Senate will ‘fl:,: tohmbemra with this inquiry at a when gen- eral approval is being expressed of the need for remedial legislation to deal with such facts as have been revealed by the investigation.” Byrnes Questioned. Arnold M. Byrnes, & former vice pres- | 4dent of the National City Co., gave the committee information ~about South American loans today. | Byrnes, who left the National City Co. in 1931, was questioned about the sale of Peruvian, Chilean and Brazlian securities. Previous testimony had been that the company participated in the sale of $90,000,000 in Peruvian securities, although repeated warnings had been given to the company that the financial and political condition oi Peru was bad. Charles E. Mitchell, chairman of the Naticnal City Bank, resigned esterday. > “We might not agree to your classifi- cation of the men who took & peut: mistic view of Peruvian conditions,’ Byrnes said. Pecora then asked about & communi- cation from J. H. Durrell, overseas man- ager of the bank, in July, 1927, which said Peru's condition was bad. Doubts Seeing Letter. Byrnes said he did not think he saw the Durrell letter. Pecora inquired about a $50,000,000 loan to Peru in December, 1927, in which the company participated. “Were the contents of the Durrell letter a subject of discussion before the company participated in the December loan?" “It wasn't discussed with me,” Byrnes answered. “Do you recall participation by the company in an $8,500,000 loan to the State of Minas Gereas in Brazl?” Pe- cora asked. “Yes,” Byrnes answered, adding it was felt the State was a good risk. | The loan was made in March, 1928. | First Loans in United States. “Was this the first time the State| had come to the American market for financing?” Pecora asked. “Where had it gone for financing before?” “To Paris for some” Byrnes said, adding that the amount of loans floated in Paris amounted to about 42 million dollars. “Are any of these Brazilian loans in default?” Senator Couzens asked. “Oh, yes,” Byrnes answered. “Do you know of any default in any of these Minas Geraes loans before the National City Co. agreed to underwrite the $8,500,000 loan in 19282" Pecora asked. i i Wants to Define Default. Byrnes said he wanted to define de- fault. He added that he understood some complication arose because of the failure of a French banking house that had been acting as the Paris fiscal agent of Minas Geraes. Pecora asked if there were not litiga- tion between French bondholders of Minas Geraes securities and the State. “Yes,” Byrnes said, “there was an agreement between the state and the ‘bondholders.” Byrnes testified the $8,500,000 loan had been floated at 97> plus interest. “What was the spread to the National City Co. on this flotation?” Pecora “k;d'pare ly the net cost 93.167 % ntly the net cost was 93. per cgnl." Byrnes replied. “We bought | the bonds on a flat basis.” Pecora then asked about an issue of | $8,000,000 of 6> per cent bonds of the State in September, 1929. “At what price was the issue offered?” Pecora asked. “It was offered at 87 and interest,” Byrnes replied. Quizzed on Proceeds. “Your statement, or circular on this eight million !oan,” Pecora said, “states that the proceeds were to be utilized to increase the economic productivity of the State.” - “Yes it was,” Byrnes said. “Now isn't it & fact that much of this Joan went to pay off short-term indebt- edness of Minas Geraes?” Pecora in- quired. “Well, yes,” Byrnes answered. “How much went to pay off this short-term indebtedness?” Byrnes said between three and four millions. “Now, why wasn't the American in- vesting public told in plain language that this money was to be used to pay short-term indebtedness?” Two Coupons Unpaid. They parleyed back and forth until Byrnes said: “In my opinion, no investor was in- terested in the slightest. I don’t think it would have affected anybody's judg- ment., The important thing was the essential purpose for which the money was to be used.” “Are both these (Minas Geraes) bond issues now in default?” Pecora asked. “The last two coupons have not been paid,” Byrnes responded. “What is the first issue quoted at now?” Pecora asked. “About 21 or 22,” Byrnes answered. “What is the second issue quoted at?” “About the same.” Byrnes testified he had no knowledfe of the distribution by the National City Co. of literature to the investing pub lic to show its connection with the Na tional City Bank. George F. Train, of the foreign de- partment of the National City Co., was called to the stand and abou his recommendations of the $8,500,000 Joan, but letters relating to it were not in the file and a recess was taken. Explains Fluctuation. “How do you account for & deprecia- tion of 10 points between the two is- sues?” Pecora . “General market conditions,” Byrnes replied, adding a “change” had taken lace in the bond market in the period 'ween the two issues. questions, the $8,000,000 issue had at a “flat " of 83%, National City Co.'s spread ® |WASHINGTON RENOVIZE GROUP ‘STUDIES PHILADELPHIA DRIVE Quaker City Shows Good Results From Campaign in Which $22.000,000 Is city which, refusing to give xlulp when its back was against the wall of hard times, began an aggressive, counter-offensive along self-help lines that has put thousands of men to work, loosed the shackles of idle money and injected Into the arteries of general }z:,sénesa a remarkably effective stimu- ,000 a nev goal of $25,000,000 o o ,000,000 almost at- tained, the enthusiastic P esti aate that the renovise P Iphia every campaign, touching eventually phase of business through the increased pary flow of dollars, will give rise to a annual business total $625,000,000. Work Is Outlined. Chairman Heaton and a “fying squadron” of local renovize campaign leaders, including Claude W. Owen, vice president of the Board of Trade; James W. Hardey, chairman of the Advertis- ing Club’s special Renovize Publicity Committee; Col. Leroy W. Herron, a member of the club’s committee, and Charles J. Columbus, managing director of the club, learned how Philadelphia did it during a six-hour visit to that|2D city yesterday. In a series of conferences with lead- ers of the Philadelphia drive, including James W. Follin, general manager, and George H. Thornley, publicity director, the local campaigners learned that the Philadelphia drive was heralded by the biggest publicity splurge since Liberty loan days; that an organization of 7,000 canvassers made a house-to-house sur- vey of 650,000 properties in the metro- politan area; that the survey resulted in signing of pledges for repairing, re- modeling and restoration work, costing $22,000,000; that a follow-up system has instituted to check on fullfillment of the pledges, and that a renovizing exposition “to show property owners what ,can be done at today’s bargain prices” is proving an important aid. keynote of the Philadelphia cam- puign, it was emphasized, was not to help others but “help yourself.” Prop- erty owners were not asked to make improvements because the work would ald employment or do somebody else a good tumn, but because it would en- hance the value of their own prop- erties and aid their own business. Suffered Stagnation. The campaign slogan was “G 51~ ness for You and Good for Busiess When Philadelphia conceived its renovizing crusade the city was suffer- ing from a severe stagnation of busi- ness. Morale was at low ebb, Mr. Fol- lin pointed out. There had been bank difficulties and hunger marches and other demonstrations. Industrial lead- ers decided not to sit by and look to t.lxas %o\;ergmzunt or some one else for , bul e concerted Ihecllr OY: dbel’}l.llL Serisatin evelan ad stay a renovizing drive with l‘nfllfler&ntg:&ulu. A study of Cleveland’s experience convinced the Philadelphians that the reason for fail- ure in the Ohio city was the lack of an active solicitation effort as a follow- :SL 'f. g;lzmu?zl‘clty. Advertising with- was m; e 'p ineffective, they rofiting by Cleveland's experience, the Philadelphians decided not only to launch an unprecedented publicity campaign, but to follow it up by a| home-to-home, business-to-business can- vas for signed pledges. Mr. Thornley, an executive of the Spent for Improvements. . Back from a flying trip to Philadel- phia with one of the most inspiring depression-breaking storles of the times, Arthur B. Heaton ‘and his group of renovize campaign investigators today were ready to recommend application to ‘Washington of a tonic'that already has produced $22,000,000 worth of property improvements in the Pennsylvania city. The story is one of a large industrial SMITH TESTIFIES AT SENATE HEARING Former Candidate for Presi- dent Covers Multitude of Is- sues Before Committee. (Continued From First Page.) popular bond issue to finance construc- tion work. “A reconstruction bond issue,” he said, “which I would sell the same as we sold Liberty bonds, would bring back lots of the money now in hiding. “Make an appeil to their patriotism and could float & good-sized bond you - | issue, which would help a lot toward Hundreds of speakers addressed thou- sands of meetings of citisens. Reno campaign literature was distributed to school children and in progress the campaign organi set up in the Architects’ Building an interesting renovize exposition, where every conceivable type of home and business building improvement operation was demonstrated. Chairman Heaton and his group spent hour inspecting this novel exposition with & view to opening a similar exhi- bition in a prominent downtown loca- tion here. The Philadelphia ition show rooms that have been partly mod- ernized, so that the unsightliness and inconvenience of the older portions may be compared with the restored sections. Costs of making the interior and the exterior cf a home up to date are given. Many samples of materials available for remodeling and renovation are on dis- play, together with time-saving and labor-saving devices for the kitchen, cellar and other parts of the house. Building Permits Gain. All of the 650,000 properties in Phila- delphia had been contacted by the can- vassers by Friday of last week, and a check-up on some of the pledges al- ready has begun. Although sufficient time for carrying the pledges into ef- fect has not been given, a preliminary check in one section showed that be- tween 40 and 50 per cent of those sign- ing pledges already have completed or started renovizing work which they signed for. The remainder said the “mtk would be done within a month or_two. Building permits in Philadelphia in January were 50 per cent greater than in January a year ago. Many large business concerns have started remodel- ing and other operations as a direct re- sult of the drive. The Curtis Publish- ing Co., Mr. Thornley pointed out, has appropriated $35,000 for repairs to its properties, with the announcement that this work had not been planned for this period. Manager Follin said that the success | of the drive in Philadelphia has led to inquiries from every large city in the country and from scores of smaller ones. He offered full co-operation to Washington in organizing the local T:‘ I‘:‘Vlahln . gton emissaries were gau "&IE ut“ ll’hfl:dzlphu Renovize mm; at a luncheon in ti - | tecct.ii"-lBufldinl. e rman Hardey of the Advertising | Club Committee will report his nndm:: to the full committee at a meeting in the Raleigh Hotel this afternoon. | Chairman Heaton of the General | g::a&ntc?fmuee :111 Teport at a | e General Com: be called shortly. e o) FORD’S SECRETARY, STRANGELY MISSING, SOUGHT BY POLICE (Continued From Pirst Page.) mailed at Pontiac, in which he resigned as & bank director. Three men reported to officials that they had seen a car bearing license X-90,000, the number of Liebold’s auto- mobile, in Saginaw, about 100 miles north of Detroit. Previously a farmer near Reese, Mich., not far from Sag- inaw, made a similar report. At the same time officials of the Guardian National Bank of Dearborn said they had received a letter from Liebold, mailed in Pontiac Monday afternoon, tendering his resignation as | a director of the bank. At the Lieboid home and at the| offices of the Ford Co. it was suld| that nothing was known of his disap- pearance. Mrs. Liebold was reported to be away Irom home. ‘The State police post at Ypsilanti early today broadcast a report of Liebold's absence, stating that he was last seen at 3:30 p.m. yesterday, when he left the Ford offices in Dearborn. Liebold, for many years general sec- retary to Henry Ford, has been in charge of the Ford fiscal policies. Ford a few days ago assigned him to assist Edsel Ford in the organization work preparatory to forming two new Detroit banks which will be under control of the Fords. Employes at the Ford company, in- cluding officials of the service depart- o ment, said they knew nothing of the search for Liebold, and State police in the Detroit area, to whom & report was made early today, also denled knowledge of the search. State police at the Lansing head- quarters, however, verified the broad- cast from the Ypsilanti Post. Detective Lieut. John Hcffman, head of the special investigation squad of | BOEE the Detroit Police Department, and two detectives left immediately after the report was received here for the Ford offices in Dearborn to talk with Harry Bennett, head of the Ford service de- partment. A descripticn of Liebold's car, together with the report that he was m._sing, were read to all detectives and patrol- men at roll call this morning. Liebold became Henry Ford's secre- tary in 1910. At the time he was a clerk in a ighland Park bank in which much of the Ford Motor Co.’s business was handled. Veterans of the Ford company said Ford’s carelessness in fiersaml money matters led directly to bold’s appointment, Ford, they said, carried around in his vest pocket for weeks a $70,000 dividend check, having forgotten it. James Couzens, then - treasurer and general manager of thé Ford Motor the appointment of a secretary to handle Ford’s personal finances and Liebold’s selection followed. When Henry Ford decided to build the present Henry Ford Hospital, Lie- bold looked after the details. He figured g{ominemly in Ford’s efforts to acquire luscle Shoals and with Henry and Edsel Ford he incorporated the Ford- troit, Toledo & Ironton Railroad and served as its vice president during the period Ford was organizing the railroad for his own purposes. Liebold frequently appeared as spokes- man for the Ford interests, both before partly responsible f ber of the &t the Ford Rouge plant, BOY RIDING PONY 10 INAUGURAL HURT Toby Clark, 7, of Georgia Hit by Auto Near Fred- ericksburg. By the Assoclated Press. FREDERICKSBURG, Va. February 28.—Toby Clark, 7-year-old Chula, Ga., boy riding & pony to accept President- elect Roosevelt's invitation to attend the inauguration, today had a pony knocked from under him and suffered injuries himself w] struck by an automoblle 35 miles from his Capital destinatign. The pony was so badly injuried it was destroyed by Stafford County, Va., folk who witnessed the accident, but Toby after receiving first-aid treatment of his injuries, described as “minor,” con- tinued his journey astride another one of his ponies. The pony was struck by an automo- bile said to a New York license. ‘The occupants of the car were not ar- rested al ‘Toby’s father accepted their large sedan in settlement for images, it was reported. The accident occurred 16 miles from Fredericksburg, with 35 miles of his 800-mile poneyback ti he should reach Washington tonight despite the accident, officers sald. Toby started from Chula February 13. He was re- rted to have had four ponies when he ‘When the pony was struck the jm- pact broke the saddle strap and hurled Toby 30 feet over a tence: ATTACK ON NAVAL GUARD IS PROBED Marine Corps Sentry Knocked Out ‘When He Seeks to Examine Package in Car. 4 Naval officials today were investigat- | Bcsted. ing a mysterious assault upon & Marine Corps sentry at the Naval Research Laboratory, Bellevue, D. C., in which Navy Department said Pvt. R. N. Intuska was on guard about 8:25 .. Sunday, when he halted a car t;:em the naval reservation. customary inspection, Pvt. Intuska noticed & package in the rear and as he went to get it and inform the the guard a man, allegedly to secrets mwtfl%mm. but today the department was convinced the Ma- rine’s assallant :u some one endeavor- getting over this trouble in the next generation.” Engages in Conversation. Smith appeared in the committee room several minutes before the hear- m= began. Democratic, Republican and in¢ lent members of the committee ound before Cl into session. Women predominated in the crowd that packed the big commit- tee room. from & memorandum, the former Governor opened with a discus- sion of unemployment in New York State, which he sald was alarming. “I was in Albany when the Confer- ence of Mayors was going on,” he said, “and as I heard the different mayors, I came to the conclusion that unem- ployment is as wide now, if not wider, than in 1932." “As far as New York goes,” he sald, “I see nothing in the immediate future to give it any great relief. Therefore I want to discuss public relief-con- struction projects.” “Made work,” as he called emergency public camhl‘rpcum, “4s not working out so well,” 3 Sees Little Retarn. “I fail to see the taxpayers are get- ting much return from made work. The commissiorer of public welfare informs me we are coming to an alarming sit- uation.” “Did the State provide that money for work relief?” asked Smoot. “The State gave some and the R.F.C. gave some,” Smith replied. Turning back to the relief problem, Smith said: “The $300,000,000 for direct relief will soon be exhausted. The Senate has passed a bill for $300,000,000 more. That bill should pass the House and become a law. “We're going to be in bad shape by the end of June unless we get some more money " Smith told the committee that none of the relief loans could be used to buy materials, adding: “If some reasonable part of that copld be used for material, we could have something to show the taxpayer.” “Couldn't the State provide that?"” asked Smoot. “By the time this $300,000,000 from the R. F. C. becomes available the State | money will be gone,” replied Smith. Senator Barkley asked Smith if use of public-subscribed funds for charity, for materials and for buildings was; | not_frowned upon. “That's the way the people feel about it,” responded Smith. ‘War Debts Moratorium. Expanding as he went along, with but few interruptions, Smith urged a | long moratorium on foreign debts in return for increased purchases in this country and lowered tariffs, broad pow- ers to the President to reorganize the Government and a one-year moratorium on farm mortgage foreclosures. “T still feel the way I did last Spring about the foreign debts,” he said. “We ought to declare everything off for a long time—say, start with five years. “But we have got to do something about the tariff before anybody will do | any business with us. I don't believe in a high tariff. It should be only what 1s necessary to take up the difference between cheap labor abroad and the high-class labor in this country.” “America could say to Europe: ‘You buy some of our cotton, wheat and manufactured articles and in accord- ance with the amount of good will shown us, we will help you.'™ Smith told Smoct the debts were con- tracted when Europe was “better able to pay” and Senatdr Kding, Democrat, | of Utah interrupted to say Smith’s| “philosophy” was “eminently wise at this time.” Favors Russian Recognition. “I don't know any reason for not doing it.” Smith said regarding recog- nition of Russia. “There's no use trad- ing with them under cover. We are doing business with them through the Amtorg Trading Corporation. We might just as well be represented there and they here and do busincss in the open. “We should not be against them just because they have a'government we don't like. Jefferson told us any time we don't like this Government we could tear it down and build another one.” He told Barkley friendly relations with Russia would result in that ‘coun- try “buying & lot of wheat . Smoot said Russia was eéxporting wheat herself. “Yes,” ith replied, “but it's all going over to the Far East for those soldiers there, They are buying some things in this country now.” Smith said he didn't think Russia would “make any headway with this Communism.” Citing instances of incipient move- ments elsewhere, including those in the United States, Smith said: “In New York every now and then & half dozen crack-pots get out on the | to street corner and holler, but that has been going on since I was a boy.” Smith said he favored giving the President as broad powers as possible to consolidate and reorganize the Govern- " | ment departments and did not believe such powers would make the Executive & dictator, adding: “I am not in sympathy with all this talk about dictators, monarchs and kings when jyou give the President power to run the Government as a private unds A Sees Rail Consolidation. Turning to the rallroads, Smith pre- dicted a time when there will be a con- solidation of all the railroads. “But it won't be & consolidated rail- way system,” he added. “It will be a consolidated transportation system of all carriers. “The railroads have been talked of as the arteries of the Nation for so long| the they think they can carry through great big capital structures. “They can't do it.” Smith looked on the proposed four- system consolidation plan advocated two or three years ago “as the ning of a consolidation such as I have sug- After it is effected, he told Senator Barkley, “I would consolidate these four into one great group. “T'd have vne man at the head, with men under him to look after the re- H 3 rus:d the opinion that pub- e exp! pul lishing reconstruction loans to banks “has harm.” and Senator Barkley, Kentucky. for Nation’s Ills Alfred E. Smith is shown giving the Senate Pinance Committee, now bles, his ideas pn what should be done to all such measures mere “shots in the arm.” Left to right: Senator Smoot, Utah; Smith; Senator R.F.C.ISPREPARED 10 AID'D. C. BANKS Funds Ready for Almost In- stant Delivery if Need Arises. Arrangements were completed today whereby local banking institutions may get prompt and almost instantaneous service in obtaining loans from the Reconstruction Finance Corporation should need arise. From an official source, it was learned that these arrangements have been completed and are ready to function. An official statement from authorita- tive sources said: “Upon_inquiry it has been ascer- tained that through the co-operation of the board of the Reconstruction | Pinance Corporation, together with the Richmond Loan Agency and Local Ad- visory Loan Committee, arrangements have been effected whereby local insti- | tutions, should the need arise, may secure lcans on sound assets from the Reconstruction Finance Corporation | and get prompt and almost instanta- neous service. | “This is occasioned by the fact that| ordinarily it is the practice in making R. F. C. loans that they must first be | approved by the advisory committee of prominent bankers who have been selected and appointed by the R. F. C. board and who must first give their| approval and transmit their recommen- | | dations to the loan agency for the Fed- eral reserve district in which the banks are located. “In the case of Washington, ordi- | narily loans after bsing approved by | the local loan agency would be trans- | mitted to Richmond, the headquarters iol the fifth Federal Reserve district. |Wlsh1n8wn. being the headquarters of the Reconstruction Finance Corpora- tion Board, the facilities of that bcfl;;{ are available to any of the local banks| who may desire to make loans on their sound ascets more promptly by reason of the board being located in the city.” COMMUNITY CENTER ENDS PLAY FINALS| The finals of the Community Cen- | ter's one-act play tournament will be | held tomorrow night at the McKinley High School. The four plays selected | last Saturday night at the conciuslcnl of the preliminary contest will again be presented for the critics of the Washington newspapers, who will be| the judges. e “The Betrayal” by the Religious Drama Committee of the Washington Federation of Churches, and “The Girl,” by the Southeast Community Players, are the two dramas to be pre- sented, while “The Wolf at the Door,” | by the Troupers of the East Washing- ton Community Center, and “The Love Pirate,” by the St. James Players, will | be the two comedies offered. | The judges for the finals will be An- | drew R. Kelley, Nelson B. Bell, Mabelle | Jennings, Edward de S. Melcher and | The committee on the tournament will meet this afternoon to discuss the awards that will be made to in- | dividual actors giving the best per-| formance and to the one excelling in | voice and diction. Plans for a tournament dinner to be given at the Madrillon on March 7 are now being perfected. All members of the 24 player groups are expected to attend this dinner meeting, wken plans for the next season's tournament will be discussed. ailments and disabilities not traceable ice du servi ty. “A lot of these men,” he sald, “went to the training camp and didn't get | overseas, but got their teeth polished, their flat feet fixed and their bodies built up. “Just because & man gets hit by a | taxicab 10 years later, I don't think | we should take care of him for the rest | of his life. “It seems that no matter what's the matter with you, it can be traced back to the war.” “I don't know whether it can be done,” he continued, “but we ought to balance the budget. If we gam, it will g0 & long way towatd restoring fidence. “If we have to, I'd favor a manu- facturers’ sales tax, exempting the e u:pm high _in taxes as [3 icome taxes tending to stifie business. a as Rrflldent of wfimi h confided, “Whatever was intended has not been carried out,” he added. : “Evidently 1t was intended to give the people confidence their bank was sound enough for the Government to aid. “It didn’t work out that way. When the people saw their banks had bor- rowed, they got suspicious.” Senator Harrison asked him if his ob- Jecticn to publicizing bank loans applied to advances to life insurance companies. Smith, a life insurance company of- ficer, smilingly replied: “You can't go to a life insurance com- pany and withdraw your money.” p Favors Cutting Veteran Benefits, Smith advocated elimipation or re- duction in. payments 1o . veterans fog 3 % 1l ng, ;% 3 g Eleanor Wilson, - Adm. N. A. McCully’s Adopted Son Weds Widow of Officer By the Associated Press. VIRGINIA BEACH, Va. Feb- ruary 28.—The marriage of Mrs. Clara Neimann, 34, to Nikolal McCully. 26, both residents of Vir- ginia Beach, has been confirmed by Mrs. McCully, who declined to say when or where the ceremony took place or to give out addi- tional information. A marriage license was issued to the couple in Baltimore Sat- urday. Mr. McCully is an adopted Russian son of Rear Admiral N. A. McCully, retired, of Anderson, 8. C. An acquaintance said Mrs. McCully is the widow of a naval officer. PLANE RUSHES NEW HELP FOR CERMAK Oxygen Rcom Ordered as Pneumonia Area in Lung Remains Stationary. MIAMI, Fla., February 28 (#.—The pneumonia area in the right lung of Mayor Anton Cermak has remained sta- tionary in size since yesterday, physi. cians said today after a briel examina | tron. Failure of oxywen tents to function properly caused his five attending phy- sicians to order an oxygen room—a portable tent-like affair, nine by nine feet—from New York. It was to be shipped by special plane at 1 pm. today and was scheduled to reach Miami about 10 p.m., Edward F. Kelley of Chicago, who handled the ar- rangements, said. Examination Incomplete. “We did not make a complete exam- ination of the pneumonia area” Dr. Kar! Meyer said, “because the patient was resting and we did not wish to dis- turb him with 2n examination tha would require half an hour. Our brief examination, however, indicated no spre: Pneumonia is confined to the lower lobe of the right lung and was de- scribed as a “localized pneumonia con mfl%‘“? t in their 10:20 e doctors reported r 10:! am. bulletin that “the chest findings seem stationary,” and Dr. Meyer ex- plained this referred to the pneumonia. The bulletin read: “Mayor has continued to rest since 3 am. He is now asleep. Chest findings seem sta- tionary. Temperature 101.2, respiration 36, pulse 120. He has taken a falr amount of nourishment.” Sees “Reasonable Chance.” Earlier Dr. E. S. Nichol said the mayo: had “a reasonable chance to live” and that he saw nothing to indi- cate that he did not have “an excel- lent chance for life in the next 24 hours.” “There are no outward indications that the pneumonic area discovered Sunday tercay,” Dr. Nichol continued. concerned about the oxygen tents because none cf the three we have used have proved satisfactory. One of them is so small it annoys Mr. Cermak. A, We had difficulty in the cooling procssses of the others.” Cermak is suffering from s bullet wound inflicted by the assassin, Giu- seppe Zangara, under sentence of 80 years for an attempt on the life of President-elect Roosevelt and wounding of three others. “Every passing day without unfavor- able complications adds to his chance to_recover,” Dr. Meyer sald. Cermak’s son-in-law, Dr. Prank Jirka, said the mayor’s color was good and shortly before daybreak he asked for a bottle of near beer and for more food. The requestsfor the beverage was denied. EX-JUSTICE GIVEN SENATE SEAT LEFT BY CORDELL HULL (Continued From PFirst Page) President-elect Roosevelt's development of Muscle Shoals Tennessee Valley. “I am in_ absolute accord with the President-elect,” said in reference to the project. has several gubernatorial campaigns in Hamil County (Chattanooga). Bachman is in his fifty-fifth year. He is a native of cnnnnoog be- gan his public_career there city attorney. Four years later on the Circuit Court bench Bachman's a will fill the b . He is a personal frien 5 g(mm-m%}lmmherw!lmthe ative Davis, chairman of the House Merchant lnfiucounnlme. “Mmh:mbm have l.:.l;h regard collecting views revive business. He strdngly advised against inflation of the currency, night has enlarged since yes- | on cures for present-day trou- ‘Metcalf, Rhode Istand, —A. P. Photo SPEAKERSHIP MAY HANG ON TAMMANY Curry Coming Here Tonight to Confer on McDuffie- Rainey Contest. By the Associated Press. With 29 votes In the new House, the COMNERCIAL BANK PLOSES 175 DOORS Board Authorizes Action in Interest of Depositors, . Cooper Announces. ‘The Commercial National Bank today its doors and went into the hands jer, J. L. Balley, & national er, This action was taken by Col. Wade . president of the institution, ity of the board of directors of and places the bank under control of the acting controller of the currency. F. G. Awalt. A notice posted on the door of the :-nfin&etb mumu;.y‘o( the control- T currency a receiver, reads " o momning was reached at a conference between Col. Cooper and some of his aides, with the aef controller and some of his aides at Treasury De- Emnent, about 2 o'clock this morn- g. At the Treasury Department it was :lolamug‘?!hnlf of Mr.t Awalt that he ve no commen nt"u#m. km to make on the e act! of the controller was re- Quested by Col. Cooper in a letter which he presented early today, outlining that he thought such action best “for the interests of the depositors.” 901. Cooper's letter to Mr. Awalt said: Dear sir: In pursuance of a resolu- tion adopted February 26, 1933, the board of directors of this bank author- izes me to take such action as in my Judgment I deem best for the interests of the depositors. I hereby, in behalf of the directors of said bank, request you to take charge of the Commereial National Bank of Washingon, D. C., at 8:30 am, February 28. " “The above action is requested of it;:x"bl:ca;u:wgmm( heavy with- o 2 ey which we feel may Tammany delegation today appeared to be in a position to name either Repre- sentative McDuffie of Alabama or Rep- resentative Rainey of Illinois as Speaker gress. Because of the intensemess of the race, John F. Curry, chief of Tammany Hall, will come here tonight to discuss | it with the delegation’s leaders. McDuffie apparently is coming for- ward rapidly after Rainey had gained 2n early start in the contest. Friends | cf Representative Byrns of Tennessee, chairman of the Appropriations Com- mittee, expect their candidate to in- crease his strength when the balloting begins at the party caucus Thursday. Burns concededly has much “secondary | support. To be ready to cast the deciding vote, the Tammany group has been instruct- ed to vote for its leader, Representative | Cullen for Speaker until he deems it cpportune to throw the vote to one of the other candidates. May Support Rainey. | Curry had planned to come to Wash- | ington Thursday, but the delegaticn learned yesterday that he had speeded up his arrival because of the spraker- | ship race. He will confer with Senator | Wagner and Representatives Cullen and | Some of the Tammany members said | privately yesterday the bloc may sup- | port Rainey. They pointed out that if | Rainey is selected Speaker and Repre- sentative Bankhead of Alabama is made floor Jeadcr. Representative O'Connor of | { | New York would become ranking Dem- 'ocrat on the powerful Rules Committee |and Cullen might become whip. McDuffie's supporters insist he has | more pledged votes than Rainey, but | the Illinois member’s friends claim more |than 100. There are 313 Democratic | members-elect to the New House, and bout 20 absentees are expected at the | caucus, making about 147, or a majority | necessary for election. | _O'Connor virtually was eliminated by | the instructions | its delegation to support Culien on the first baliot. This leaves Representatives Rankin of Mississippi and Crosser of Ohio as the other two contestants. | Two Other Meetings. | Tomorrow night most of the 127 new | members-elsct will meet behind closed doors to discuss the speakership can- | | SEinten ana aeniands they plan to make | on the veteran members for recognition in the party's organization. Representatives-elect Will Rogers of oma and O'Malley of Wisconsin issued the call and said yesterday scores of their colleagues would attend. ‘The 117 Republican members-elect to | the new House will caucus tonight to rename Representative Snell of New ! other officers of their organization. i == CONFEREES DIFFER ON ECONOMY PLAN |Parley on Treasury-Fost Office Supply Bill Fails to End Deadlock. ‘ . other futile effort today to reconcile their differences over the Treasury-Post Office supply bill, including the general economy program. When they sepa- rated at noon until tomorrow morning, indications were that very little prog- ress had been made. 4 i | 1t is understood that the issues re- | maining unsettled include the Bratton | 5 per cent saving amendment, the pro- 1 1 to restore automatic otions | in the military services and for certain | other employes, the $19,000,000 airmail | item and the question of whether the Bureau of Efficiency should be abolished. The conferences were resumed this morning after the Senate several days ago rejected a partial conference re- gort. which would have restored to the ill the airmail fund and several other Senate reductions in the Treasury De- gtrtmmt. The House ofi to the ratton amendment, whi would re- quire all Government departments and establishments to reduce 5 per cent be- low authorized appropriations next year. If the conferees fall to in time to have the bill passed b‘e‘!‘o‘:z Satur- day, it will become one of the major for the special session in M‘an?:nhfim wer h'n“l::m n- wers con- ferred on Prddmtrhc\ Roosevelt. LorE T e DEER STARVING Snow-Covered Valleys Fatal to Park Inmates. VANCOUVER, Wash, February 28 (#)—Hundreds of deer are starving to death in the snow-covered upper Lewis in Odumhhm Natonal Park, of Tammany Hall for | | Senate and House conferees made an- | {U. S. WILL CONTINUE |- INSULL JURY PROBE of the House in the Seventy-third Con- | Federal Prosecutor Asks That In- ; quisitorial Body Be Kept { in Session. l‘ By the Associated Press. CHICAGO, February 28 —The Fed- eral Government moved forward today | to_investigate every Link in the Insuil | utility financing chain that broke un- ::—Jthe weight of sagging stock mar- | United States Attorney Dwight asked the Pederzl Court to co'nnn?:?nl session the grand jury that yesterday ‘mdicled Samuel Insull and i8 others ga the m:;pcmnons g{ u:c now bankrupt | Corporation Secu Co., on | $150,000.000 concern. Sk The grand jury's time allctment has been concluded. but Green said he be- Lieved it could be extended under a law | recently passed by Congress. “We intend to inquire into every branch of the Insull system,” Green said, “and the present jurors are familiar with the various enterprises. They could continue the werk more | efficiently than a new jury.” | Green said th: conduct of Insull | Utility Investments, Inc., second of the gigantic Insull hoiding companies, would next come under Federal { scrutiny. | Meanwhile, the defcndants already indicted arrived at the Federal Build- | ing to schedule $20.000 bond each. Eight of those named, including Samuel In- sull, jr. and Stanley Field. chairman of the Ccentinental Illinois National Bank & Trust Co. posted bond yesterday. HOWELL IMPROVES Senator’s Condition Described “Slightly” Better. Senator Robert B. Howell of Nebras- | ka, pneumonia patient at Walter Reed Hospital, was described as “slightly” improved this afternoon by officers at the institution, but still in a “seri- ous” condition. Doctors wouid not predict -when the | erisis would be reached -BAND CONCERT. By the United States Soldiers’ Home | Bend this evening at Stanley Hall at | 5:30 o'clock; John S. M. Zimmermann, | bandmaster; Anton Pointner, assistant. March, “On the Step,” Franklin B. Charles | Overture, “Benvenuto Cellini,” Berlioz | Suite de ballet, No. 1, “La Source,” We'| York as minority Icader and to select | Delibes | “Scerf Dance.” | “Scene d'Amour.” | “Variation." i “Dance Circassienne.” | Potpourri, “Popular Scngs of Hawall,” | Lake Dance of the len Dolls’ .Stevens | Waltz song, “Tears .Capano Finale, “Maybe—Who Knows?" Shuster “The Star Spangled Banner.” Fox trot novelty, ‘Woods lis™ Your Income Tax Ne. 30. Items Exempt from Tax. | Certain items are specifically exempt | from the income tax and need not be | included in the taxpayer's ret of | gross income. Among stch itemd are the proceeds from life insurance poli- cies paid by reason of the death of the insured. Amounts received (other than amounts paid by reason of the death of the insured and interest pay- ments on such amounts), under a life insurance, endowment, or annuity con- tract, which are less than or exactly equal to the premiums or consideration therefor, are exempt from Federal come tax. Any excess received over the consideration paid is taxable. There are also exempt from tax amounts received by gift, bequest, de- vise or inheritance; interest on obli- gations of the District of Columbia, any Territory, State, county, or munici- pality; interest on certain bonds issued by the United States Govern- ment or its possessions, and on Federal farm loan bonds; amounts received through accident or health insurance or under workmen’s compensation acts for personal injury or sickness, and recelved on account of such by the family of a veteran for services rendered by the veteran to the United States in time of war are ex- mfilugflu. is also exempt from Federal income tax the rental value of a dwell- house and of the