Evening Star Newspaper, March 2, 1933, Page 2

MARYLAND SPEEDS BANKING PROGRAN Legislature Awaits Report, Hopes for Reopening by Saturday. By a Staff Correspondent of The Star. ANNAPOLIS, Md., March 2.—Re- orening of Maryland’s banks by Satur- day was the objective of the Legislators as they met in the State Houce this morning, awaiting a Teport from two| Senate committees which spent most D.I‘ the night studying the administration’s anking bill. B SevelFaL obstacles in the path of that objective arose, however, the original bill having provoked considerable oppo- sition, which appeared officially first at a public hearing on the measure and | Woman of Cabinet In 1910 Poem Calls Herself Born Gossip There’s Good in Species, Says Miss Perkins, Then at Columbia U. By the Assoclated Press. NEW YORK, March 2.—Frances Perkins is a “born gossip.” At least she described herself as one 23 years 8go. A paean in praise of gossip—the homely, heart-warming, harmless kind —has been found imbedded in a thesls writter in 1910 by the woman who was to_rise to become Franklin D. Roose- velt's Secretary of Labor. She was studying then . for her mas- ter's degrec at Columbia University. Into the tenemcnt districts she went, risking rebuffs and actual violence, trying to find out why school children suffered from malnutrition. She stud- ied the background of 107 children and promised to reappear in both houses. While Gov. Ritchie and a group of Baltimore bankers and attorneys urged | speedy action on the bill, the commit- | tees found themselves faced with the] difficult task of incorporating various additions and changes wadvanced by both proponents and cpponents of t.he‘ meacure. One Baltimore banker told the com- mittees that if uniform restrictions on withdrawals cannot be agreed upon by Saturday they should at least provide for permitting every depositor to take out $10 on that day so as to be able to do his week end marketing and “relieve the fear of hunger.” Hearing Held Quickly. After being introduced by Senator | Benjamin H. McKindless of Baltimore City vesterday the bill immediately was | referred to the Finance and Judiciary Committees of the Senate, which con- ducted -a public hearing late in the| afternoon, after Gov. Ritchie arrived here from Baltimore where he had been in' continuous conference with the bankers since the State holiday was geclared last Saturday. In addition to the Governor, those who addressed the hearing included Attorney General W. Preston Lane, jr.; Howard Bruce, Baltimore Trust Co. d chairman; Edwin G. Baetjer, ltimore attorney, who had a major art in drafting the bill. Maj, E. grooke Lee, one of the Governor's ad- visors; Mayor Jackson and Secretary of State David G. Winebrenner, 3d, were among those attending the hear- ing, presided over by Senator Lansdale G. Sasscer of Prince Georges County, ghairman of the Finance Committee. The most controversial feature of the bill was, of course, the provision xxving the bank commissioner power to x the amounts which can be with- drawn from the various banks at vary- ing rates. “Is there any justification for say- ing that a solvent debtor shall not ay?” Arthur W. Machen, jr., attorney or a Baltimore trust company, asked. + *Why should we be drawn in because others need an umbrella?” He con- fended that the bill, as drafted, would, & passed, “court litigation.” Attorney General Lane explained that the Dbill embodied “a collective idea” based on similar legislation enacted or contemplated in other States. Broad Powers Urged. He said the setting up of a bank fictatorship under the State bank com- missioner was a device to give the bill constitutionality by placing all the banks in a State of “technical receiver- ship.” It was necessary to give the commissioner broad powers “because we don’t know what he may be called on to do from day to day as a maiter of Recessity,” he explained. During the hearing it was suggested €hat each county should be allowed to have its own rate of restrictions on withdrawals. At the close of the hearing the two leommittees went into an executive ses- sion which lasted untfl early this morn- ing. It was reported the committee men ‘were considering several amendments which, however, do not involve radical phanges in the bill. As originally submitted, the bill pro- wides that only those State, city and county deposits in banks that are not secured either by collateral or surety bonds would be freed of withdrawal re- strictions. The secured deposits would be subject to the same withdrawal re- strictions as deposits in general, 1t provides for the honoring of ehecks for the payment of taxes up to today, but this provision drew considerable griticism and probably will be changed. The bank commissioner is placed in harge of all banking institutions of the State for a period of six months with the Governor and Attorney General given power to extend the time to one Fear. HOME LOAN BILL PASSED. Maryland Measure Allows Sharing in Federal Aid Funds. ANNAPOLIS, Md, March 2 () — fhe bill permitting building and loan mssociations in Maryland to participate #n the Federal Home Loan Bank sys- tem today was awaiting only the signa- ture of Gov. Albert C. Ritchie for in- clusion on the statute books of the Btate. The measure, introduced in and d by the Senate last week, was given final approval by the House of Delegates yesterday. It is provided in the bill that build- ing and loan associates in the State may participate in the Federal set-up, ‘but it does not compel any of the Mary- land institutions to join under exist- ing law, the Maryland institutions were revented from joining in the Federal lome Loan Bank system. A& bill introduced in the Senate yes- terday by Senator Lansdale G. Sasscer of Prince Georges County provides that there shall be no limit on the number of directors of a trust company. At resent no trust company can have a rd of directors of more than 30| CONFIDENCE IN BANKS IS URGED BY BRIDE Corporation Counsel, in Radio Talk, Says There Is No Cause for Alarm in Conditions. Residents of the District should have tonfidence in their banks, Corporation Counsel William W. Bride said in an eddress broadcast by radio station | WOL last night. “I say this,” Mr. Bride said, “even though I have personally a large deposit in a local bank affected by the present Testrictions; I have no fear whatever but that very soon the situation will be cleared and you and I and all of us will be satisfied that not only are our ‘banks sound, but that our present fears were without substantial foundation. “1 have too much faith in our local banks and in 6ur local community and in the nation at large to let myself be seriously disturbed about it. A good stiff backbone and faith in our institu- tions will bring us through fine and clear.” Likening the present depression to a fog, Mr. Bride remarked that he had sailed through many of them in his life, and had never encountered a fog which lasted forever. Jobless Help Police. i A citizens’ night patrol has been or- Banized at Topeka, Kans, to provide work for unemployed ex-service men. It is used to supplement the regular * force, giving employment.to 60 wrote her conclusions in her thesis. So well did she succeed in the deli- cate task of getting information from parents that only once did an inebriated father threaten to throw her out. Her success, she intimated, was due largely to her ability as a gossip. “Gossip,” she wrote, “seems to be the well-worn path to the back door—the intimate side—of every human soul. Now a good gossip, like & good poet, is born, not made, and the writer of this paper claims to belong to the species of born gossips. “To, discourse of landlords and their families, of neighbors and their faults or virtues, of husbands and their idio- syncracies, of bables and their teeth, is a joy to her heart.” Gossip, she said, makes for greater democracy, and accomplishes “the mir- acle of understanding between two hu- man beings.” EASIER BANKING SITUATION NOTED Less Apprehension Felt as Redeposits Are Made—Few Restrictions Invoked. Local bankers stated today that the banking sltuation in this city as a whole had improved considerably since yesterday, much less apprehension being noted. In many’instances, it was re- ported, savings which had been hastily withdrawn were being redeposited. The Park Savings Bank has adopted the 5 per cent limit on withdrawals on commercial’ ' accounts. Officials stated that all its made after 2 pm. yesterday could be withdrawn in full at any tinfe. This bank had al- ready invoked the 60-day rule in re- gard to savings accounts. The Chevy Chase Savings Bank is also on the 5 per cent withdrawal basis. Of- ficials stated that the action was taken for the protection of cepositors and that all deposits after March 1 could be withdrawn in full without any re- strictions. ‘Walker Issues Statement. In announcing the action taken by the director’s of the bank, President John C. Walker issued the following statement: “Because of the extraordinary with- | drawal of de) ts at the Chevy Chase Savings Bank, due, as believed by its board of directors, to unjustified hys- teria, it was determined that withdraw- als of deposits made prior to 3 p.m. Februsry 28, 1933, would be limited to 5 per cent thereof until further notice, 50 as to protect all depositors and be certain of equal treatment to all. How- ever, all deposits made subsequent thereto will be accepted as bailee, and withdrawals thereof will be permitted to the full amount thereof upon de- mand. This action met with the gen- eral approval of the customers of the bank when the situation was explained to them at the bank today.” The District National Bank is on the 5 per cent withdrawal limit on deposits made before yesterday. President Joshua Evans jr., stated that the bank’s de- positors had accepted the protective move with a fine spirit of co-operation. He again called attention to the fact that deposits now being made are sub- Ject to full use at any time without re- strictions. District National's Statement. Tk:e bank issued the following state- ment: “For the protection of all its depositors and with & view of maintaining a posi- tion in which their interests collectively would be fully preserved, the District National Bank has felt constrained to follow the policy, which has been adopted by many banks throughout the country in this crisis, of temporarily restricting withdrawals to 5 per cent of deposits, as of the close of business February 28, 1933. “Substantial deposits were made yes- terday under the plan of making the Dproceeds thereof available for checking 100 per cent, and the officers of the bank desire to express their apprecia- tion of the fine spirit of co-operation evidenced by its depositors. “We regret the serous inconveniences which have resulted from this temporary situation, which we will relieve as soon as practicable.” The Seourity Savings & Commercial Bank has made no change whatsoever in regard to the status of commercial or checking accounts. There are no restrictions on commercial accounts. ‘With regard to savings accounts in the Security Savings & Commercial Bank, the following plan was put into effect yesterday and explained to depositors: “Until further notice and in accord- ance with the rules and regulations for savings accounts, a two months’ written notice will be required for withdrawals. “The bank, however, will permit, without such written notice, the with- drawal of not in excess of ten per cent (10%) of the total balance of any sav- ings account during any period of two months, provided such withdrawal does not exceed one hundred dollars ($100), and provided further that where the balance in a savings account is ten dollars ($10) or less, the entire amount or any part thereof may be withdrawn at l:ny time without such writien notice.” hes adopted the same rules on savings accounts as the Security Savings & Commercial, President Lanier P. Mc- Lachlen announced today. He added that no restrictions have been placed on_commercial accounts. In an early edition of The Star yes- terday, it was stated that the Washing- ton Mechanics Savings Bank had in- voked the 60-day notice clause on sav- ings accounts. This was an error. Ezra Gould, the president, states that the bank is functioning as usual with- out any Testrictions of any kind. MAY FIX MINIMUM BIDS TOPEKA, Kans., March 2 (#).—The State Senate yesterday passed a bill declaring powers of District Court judges in mortgage foreclosure actions, specifically giving the judges authority to fix minimum amounts which must be bid in by the mortgage holder. Members of the Judiciary Committee, which introduced the bill, said it woul in effect eliminate deficiency judgments. Under the bill judges may decline to confirm a mortgage sale if the amount of the bid is “substantially in- adequate.” Unless the property involved were grossly over-mortgaged, Chairman - lan said, a “fair value” would at least the amount of the mortgage. e bill now goes to-the House, The McLachlen, Banking Corporation | mittee THE EVENING 17 STATES N ALL ONBANKHOLIDAYS California, Okléhoma, Louis- iana, Mississippi, Nevada, Oregon, Arizona Act. ——— By the Associated Press. California, Oklahoma, Louisiana, Mis- sissippi, Oregon, Arizona and Nevada today®joined the States in which there are limitations on withdrawals of de- posits from banks. These States now number 17. The. proclamation of Gov. Rolph at San Francisco makes mandatory the closing of California banks for a three- day period ending Saturday. The three- day holiday called by Gov. Murray in Oklahoma for the same period also is mandatory. The proclamation of Gov. Allen of Louisiana provides for the cessation until the end of the week of “all public business, including banks and other public enterprises.” The New Orleans Cotton Exchange ordered suspension of trading in cotton futures and spot cot- ton during the holiday. In Mississippl the decree of the State banking commis- sioner called only for the limitation of withdrawals. In Nevada a four-day legal holiday was_proclaimed today by Gov. Fred B. Balzar to give banks a “breathing spell,” and Gov. B. B. Moeur declared & three-day banking holiday in Arizona. In Oregon Gov. Julius L. Meier pro- claimed a three-day holiday beginning teday. In Alabama the holiday, which began today, is effective until March 10, but is not mandatory. Banks in many parts of the State indicated business would g0 on as usual. Many Tennessee Banks Open. Many Tennessee banks disregarded the Governor’s call for a six-day holiday beginning yesterday, and still others which were closed yesterday announced they would open today. Some restric- tions, such as the 60-day rule against savings deposit withdrawals above $100, were invoked in some cases, but even these were waived in cases where de- positors were threatened with hardships. Kentucky banks, operating under a holiday proclamation, went on a re- stricted withdrawal basis today, the limit being 5 per cent. The holiday is to end after Saturday. In Michigan the holiday is still in force as the Fords, Senator Couzens and bankers continue efforts to reopen De- troit banks. Couzens and the others marked time today, awaiting enactment of measures designed to make cffective in Michigan national legislation spon- sored by the Senator in Washington. Arriving yesterday with a plan for & settlement of difficulties the First Na- tional Bank and the Guardian National Bank of Commerce are experiencing, Couzens spent most of yesterday in con- ference with Henry Ford and bank | officials. The Fords Sunday presented a plan for organization of two new banks t9 take over the liquid assets of the First National and the Guardian National. Couzens’ plan is believed to supplant that proposal. It is under- stood the Senator proposed liquid assets be segregated from the slower assets, the former to be made available to de- positors at once. The bank officials, maintaining two sets of books, then would endeavor to convert the frozen assets into cash, raising the permitted withdrawal limits as that was accom- plished. Only 5 per cent may now be withdrawn. Scrip Issued in Indiana. Indiana banks continued to act in accordance withlocal conditions, some limiting withdrawals and others doing business as usual. At Newcastle a modified form of scrip was circulated, banks issuing the scrip against de- posits, the paper being accepted as cur- rency. Under this arrangement no currency leaves the bank. But the “frozen” deposits serve as security for the bank orders. The situation in Ohio was easing, with many bankers considering the possibility of raising the limit placed on withdrawals. Issuance of some type of scrip also was being considered. Twelve States in which bank holidays exist by proclamation of Governors or authorized State bank officials are: California, Oklahoma, Michigan, Louis- iana, Mississippi. Alabama, Tennessee, Kentucky, Maryland, Arizona, Oregon and Nevada. In five other States restrictions on withdrawals are in effect in some of the banks. The States are: Ohio, Penn- sylvania, Indiana, Arkansas and Illi- nois. In the latter State a 5 per cent withdrawal limit has been made opera- tive by three East St. Louis banks as “a temporary measure.” No holiday has been called in Min- nesota, but Gov. Olson signed a bill yesterday by which the State Commis- sioner of Baxllnks is lanpgwe{:d to llr“- nd the business of a Sta b-ni for gemaximum period of 15 days a¥ his discretion. Likewise in Idaho & bill was by the Legislature before its adjourn- ment last night empowering the Gov- ernor to call bank holidays if such action is required. In West Virginia the Legislature passed yesterday an amended banking bill empowering the Governor and banking commissioner to permit or re- quire limited operation of banks if they deem it advisable. GEORGIA BANKS OPEN. State Won’t Declare Holiday, Banking Chief. ATLANTA, March 2 (®—R. G. Gormley, State superintendent of banks, said last night a banking holiday “is not deemed necessary” in Georgia. “We consider,” Gormley said, “Geor- Says country and a holiday is not deemed necessary here.” APPEAL IS ISSUED FOR MEN’S TROUSERS Clothes Conservation Committee Is Faced With a Shortage of Pants. A shortage in men's trousers has forced the Clothes Conservation Com- to issue an appeal. “We have plenty of coats and vests,” explained Mrs. Wymond H. Bradbury, in charge of clothes distribution to the needy at the old Ford Building, John Marshall place and Pennsylvania ave- nue. “But we are absolutely out of pants.” Mrs. Hnrve{ W. Wiley is chairman of the committee which is operated in co-operation with the Council of Social Agencies and the District of Columbia Committee on Employment. Clothes are distributed only on requisitions from accredited soclal agencies. IDAHO REPEAL MEASURE SENT TO GOVERNOR By the Associated Press. BOISE, Idaho, March 2—The State Senate last night concurred in the action of the House, and put in the hands of the Governor the bill per- mitting Idaho to act on the proposed repeal of the hteenth amendment. The approved bill calls for election to be held sometime before the next eral election 1934, name 21 dele &?onmum. ‘which to delegates to a S Selegaien il s plodged either “for- or “against” repeal. - The con! vention A Pipe for His Retired Days SERGT. WEITZEL GETS GIFT FROM COMRADES, ERGT. CHARLES C. WEITZEL, who retired yesterday from active duty in the Pire Department after 27 years’ service, was given a pipe as a part- ing gift from the members of No. 25 Engine Co. in which he served. ‘Weitzel was retired because of physical disabilities. Capt. R. E. Oden (left) is shown handing the pipe to Weitzel, —Star Staff Photo. CHINESE IN FLIGHT NEAR JEHOL CITY AS JAPANESE ADVANCE (Continued Prom First Page.) its head-long advance with the capital, Jehol City, less than 100 miles away. Alr scouts reported upwards of 30,000 Chinese were retreating raggedly west- ward on the Lingyuan-Pingchuan road “like a huge snake.” Japanese doubt if their morale, shaken by the defeats and defections of the past week, would per- mit them to reorganize to defend Jehol City. Rumors were thick that Gen. Tang Yu-Lin, Governor of Jehol, was aban- doning the struggle and was fleeing southward to the Great Wall or that he was seeking to join the Japanese- sponsored regime of Manchukuo. Jap- anese officers did not conceal high hopes Tang would be “reasonable.” Corre- spondents were stressing reports of fric- tion between Tang and Marshal Chang mlno-uang, North China military er. Gov. Tang's cavalry force surrendered yesterday at Chihfeng, the transporta- tion center of the province, permitting the Mogi brigade to enter the city without a fight. Gov. Tang's com- mander there, Gen. Shih Wen-Hua, already had hoisted Japanese and Man- flags and he was reported planning to join Japanese ranks in the final advance. It was believed Tang may decide to make his flight from Jehol City with a fleet of fast American automobiles he owns. This would enable him to carry his harem and a large part of his wealth. The portly governor, popularly known as the “Opium King of Jehol,” owns huge stocks of opfum and gold. Japa- nese reports said recently the Chinese were holding one of his favorite wives at Peiping as a hostage, to make him put up a resistance. PAYMENTS PLANNED BY TWO MORE BANKS International Exchange and North Capitol Savings Receivers Con- sider “Dividends.” Following the lead of the Bank of Brightwood and the Departmental Bank, two banks which closed last Jul —International Exchange and Nort! Capitol Savings—may issue their first payments on approved claims within a week or two. Last month the Departmental and Bank of Brightwood distributed $375,~ 000 to 7,500 depositors. Although nothing definite as to when the other two institutions would make payment could be learned today either from the receivers or from the office of the controller of the currency, it was indicated “dividends” would be declared soon. History in HULL FACES ISSUES on Leticia and Chaco Peace Moves, By the Associated Press. Latin American affairs were studied by Senator Cordell Hull today at the State Department. He held a lengthy conference with Francis White, Assist- ant Secretary of State, in charge of Latin American relations, in which the efforts to conciliste Paraguay and Bolivia and the movement in conjunc- tion with the League of Nations to end the fighting between Colombia and Peru over Leticia were reviewed. Yesterday disarmament was embraced in Senator Hull's study of foreign af- fairs by the inclusion of Norman H. Davis, American delegate to the Geneva Disarmament Conference, in a meeting in which Secretary Stimson also took part. “I plan to inform myself fully on dis- armament, as well as all the other international problems,” Senator Hull sald at the conclusion of the con- ference. Davis recently was named by Presi- dent-elect Roosevelt to continue as American delegate to the disarmament conference. The economic problems to be considered at the forthcoming world monetary and economic conference also were discussed with Davis, who is a member of the organizing committee wnicn gave final approval to the pro- gram arranged for the conference, and 1s familiar with preparatory work dona by international economists. For these economic discussions, Assistant Secretary Harvey H. Bundy and Dr. Herbert Fels, economic expert of the department, also were called in. Senator Hull also discussed debts and eemomm Jle pmhée:tsw with Assistant Sec- el ames n Rogers and other ::pe'rh I:m:.h:h department w}m :hre familiar e preparations for the London conference. RETIREMENT RULE LIFTED FOR POLICE AND FIREMEN (From the 5:30 Edition of Yesterday's Star.) pended.for ne vear. ot requirenent lor one year the requirement that policemen and m-eme;eq must re- tire on reaching the age of 64. The action was taken on recommendation 'o,ln Mal. llrnefit“ W. Bruwn,o‘ superin- dent of police, “because present. economic conditions.” & ;the age. of 64 must be g the age must be mmilxned by mih B;-hrddgl Surgeons, they pass the phy: they will be to remain on the force. men the Making Inaugural Editions The Evening and Sunday Star Mailed, Postage Prepaid, Anywhere in"United State Mexico or Canada March 3, 4 and 5. ...25¢ March 3 Edition Alone. (Mailed)....5¢c March 4 Edition Alone (Mailed)....5¢c March 5 Edition Alone (Mailed)....15¢ One of the ou features of The Star mm’m Sunday Star Magazine of more than for of the special inaugural editions souvenir issue March 5 of The utifully illustrated and containing & complete story r:{lmuunum past, and present. Among its striking contents of the new President. by Senator a blographical sketch of Senator Tom of Texas: by Mrs. Royal S. Copeland, wife will be an absorbing word-picture James Hamilton Lewis of Illinois; Vice President ; an of the Senator from New York; study of the First Lady and her social duties soclety editor of The Star, and many other In addition, The Sunday Star on that date will contain a special inaugural edition of the rof togravure of the new President and Vice section, with President portraits pictures detailing their careers, their family life and other sidelights. Impressive views of Washington’s new included. ‘The news section on March will be 5 will give a complete account of the parade, induction and ball, with many “spot” news photographs of the ceremonies. wm‘z"fihmnphs give a detalled program of the last-minute news and pictures of arrivals and preparations. Be sure to buy all three inaugural editions if you would obtain a complete record of these stirring events. The demand will be great, so reservations should be made at once. The three inaugural issues will be mailed promptly to any address in the U:itad Send list of names a 25 cents, to The Star, 1 Avenue. Staf upon order. i::’emnpum ied by addresses, 1th Street and Pennsylvania Subscriptions Will Be Taken at ~ Star Want Ad Stations No Telephone Orders oriclurges IN LATIN AMERICA : MARCH 2, 1933. MERGER PROFITS OF BANK PROBED Director of Company Had Secret Interest, National City Officer Testifies. By the Associated Press. Evidence was given the Senate Bank- ing Committee today that a directer of the Nichols and Shepperd Co., makers of farm equipment, at Battle Creek, Mich,, had a secret interest in profits gebe{’nl:elby "z"fmmum City Co. of 'w_York in pu through a merger m!g’vmgflge tcr;x'r. e ess being questioned was Stanley A. Russell, a vice president of the National City Co. Charles E. Mitchell, former chairman of the board of the National City Bank of New York, had preceded him. At the time of the incorporation, Rus- sell said, Garrard B. Winston, a director and counsel of the National City Co., was president of the Oliver Farm Equip- ment Co. and he himself was vice president. Explains $1,939,144 Loan. Pecora then brought out testimony that the Nichols & Shepperd Co. had been granted a loan of $1,939,144 by the {i’lztglonll City Bank on January 31, Explaining the Nichols & Shepperd loan, Russell said that company during the progress of the negotiations was building an extension to its plant and ne;gedltn re‘thl'.e.‘e some notes. view of approaching consoli: dation, he expll\ned‘.’plt was decided to float the temporary loan from the bank rather than to raise the money by is- sulr?z a?lmnoml stock. ussell went through a long and de- tailed explanation of the set-up of the Oliver Farm Equipment Co. He said in addition to stock that went to the par- ticipating wmfi‘nlfl, $9,325,650 in cash wex;; to nl‘;ou(: ver Chilled Plow Works. “How al your cclnpuv?" Pecora asked. Russell said the City Co. agreed to buy 200,000 shares of prior .preferred stock in the new firm, 31,021 of con- vertible preferred stock and 10,014 shares of common stock in addition to tions to buy an additional 75,000 res of common, “What did you pay for that?’ Pecora ‘wanted to know. Confers With Francis White| ™ | 20,625,652 in cash,” Russell told He testified the National Republic Co. of Chicago and Starring, identified as a director of the Nichols & Shepperd Co., got an interest in the new company. Starring’s share was 7!. per cent. “He got that because he got the business for you, in other words he put you onto the deal?” Pecora in- quired. “Fees are paid quite frequently,” Rus- sell replied. He added, however, th; “this did not come out of the profits.’ Russell added that the National Re- public Co. got 15 per cent. “To make up for profits they would have made as bankers for Nichols and Shepperd?” Pecora inquired. “Well, yes,” Russell said. “It was a| friendly recognition of their position.” lsx that a common practice?” “Sure.” Questioned on Salary. ‘The hearing opened with Senator Brookhart, Republican, of Iowa, ques- tioning Mitchell about the salary of George E. Roberts, a vice president of the National City Bank. Mitchell said he was not certain but thought it was about $25,000 a year. govbomuch l:ditlnnal Roberts received nuses, he said, he could noi tel off-hand. 2 Brookhart remarked that Roberts, through a son, “controls a big news- paper out in Fort Dodge, Iowa.” “That paper has very strongly advo- cated reduction of Government sal-| aries,” he said. Bank Affiliate Opposed. Ferdinand Pecora, the committee counsel, asked Mitchell when he had seen an opinion by F. W. Lehmann, former solicitor general, which said formation of the National City Co. by the National City Bank, in 1911, was a violation of the national banking act. ‘The opinion, or memorandum, was given to George W. Wickersham, for- mer Attorney General, in 1911 and was not made public until last year. ~ “I think I saw it at one time Mitchell replied, “but my memory of it is very vague. I could not say defi- nitely when or where.” Mitchell said the time he saw the opinion “may even have been as late” as May 10, 1932, when Senator Glass, Democrat, of Virginia, put it in the Congressional Record. “I had heard there was such an opin- fon many years ago,” he added. Fails to Find Opinion. Mitchell said Me had been advised the secretary of the company had searched its files for a copy of the opinion and had been unable to lo- cate one. The next witness was Russell. who has charge of the National City Co. in- dustrial and public utility financing. In response to questions, Russell told of the National City Co.’s part in bring- ing about & merger of three firms mak- ing &ulcu!tunl ‘machinery and imple- ments. Russell named them as the Nichols & Shepperd Co. of Battle Creek, Mich.; the Oliver Chilled Plow Works, South- bend, Ind., and the Harf Parr Co., Charles City, W. Va. “As I recall,” Russell said, “M. B. Starring of the Battle Creek firm first suf the consolidation to us.” “Your real purpose in was to make some money for the Na- “Why certainly.” Russell said the new firm was in- corporated in Delaware as the “Oliver Farm Equipment Co.” Other Witnesses Called. Among other witnesses called today were M. J. Meehan, member of the g:: ‘York brokerage firm of M. J. Mee- 1929 in a syndicate in Radio tion of America common netted profits of $3,217,570. Meehan'’s firm was a stock and the committee SEVERS CONNECTIONS Woodin Ends Business Affiliations Prior to Entering Treasury. NEW YORK, March 2 (#)—William H. Woodin, who is to be Succeeds Claudel l NAMED BY FRANCE AS AM- ANDRE LEFEBVRE DE LA BOULAYE, Personal friend of Franklin D, Roose- velt, who has been named Ambassador to Washington to succeed Paul Claudel, OCEAN AL VEW OF BROWN WATED Delaying of Contract in Face of Fraud Charge Is Senate Question. Postmaster General Brown was ex- | pected to announce today if he had | abided by the wish of the Senate and] delayed signing an ocean mail contract | which Senator Black, Democrat, of Ala- bama, had charged was “tainted with fraud and corruption.” ‘The contract covers a route from North Atlantic ports to the British Isles, and two bids were on file at the closing hour yesterday. One came from the Philadelphia Mail Steamship Co.,, which Black charged was to get the award, and the other from the Southgate Nelson Corporation of Norfolk. Action Not Made Known. At the Postmaster General’s office this morning no information was available as to his action. It was said Brown would be in later in the day, when a statement was expected. The Senate resolution asking delay was adopted yesterday, and 33 Senators signed the petition to Brown. ‘The bids were identical, so far as the Virginia firm's specifications went. The Southgate Nelson Corporation failed to bid on proposals to use the fastest and | slowest types of vessels, and the Phila- | delphia company ified the route it sought was between Baltimore-Phila- delphia and Liverpool-Manchester. Number of Ports Named. ‘The department’s specifications named a number of North Atlantic and British ports, with the exact route to be specified by the department. In the hours of debate on his resolu- tion, Black charged the Postmaster General with being ready to push through the contract before the change in tion. He contended the Philadelpbia company was to be given he award which he said would it a $10,000,000 subsidy in the next 10 years. Senator Reed, Republican, of Penn- sylvania, denied any wrongdoing in | connection with the contract. He said Pennsylvania interests were eager to have the contract awarded because “you know what would happen to it under the Democrats.” GARNER PREDICTS $200,000,000 CUT IN U. S. EXPENSES (Continued From First Page.) on the economy bill includes the fol- lewing other essential points: The Brattonh amendment seeking to require & 5 per cent reduction in appro- priations for all Government depart- ments next year is dropped from the bill; automatic promotions in the sev- eral national defense services, in the postal service and for District police- men, firemen and school teachers are forbidden for another year; the 81-3 per cent pay cut already being applied to civilian employes of the Government in the form of a furlough is extended to enlisted personnel of the Army, Navy and Marine Corps. For civilian em- ployes this percentage of pay cut has been in effect during this fiscal year and is continued for another year with- out change. ‘The item for the airmail service was placed at a compromise figure of $15,- 000,000—$4,000,000 less than the origi- nal House bill allowed. CONVICTED FOR ELECTION NEW YORK, March 2 (#).—A city- wide investigation of charges of frauds in the November election has brought its first convictions. A Federal grand jury convicted Jack Pleva and Harry Schwarts, election in- 8] , last night of conspiracy to turn in a false count in the balloting. Forty-one others have been indicted. Your Income Tax No. 32. Checking Delinquents. The Bureau of Internal Revenue has HOUSE STOPSPLAN. FORJOBLESS BOYS Military Training Proposal Cut From Army Bill by 165 to 31. By the Assoclated Press. Rejecting a Senate proposal to train 88,000 unemployed and homeless youths in Citizens' Military Training Camps during the next fiscal year, the House yesterday sent the $370,000,000 War De- partment appropriation bill back to e 1, calling f le proposal lor expenditure of $22,000,000, was rejected a vote of 165 to 31. % N The House also refected a Senate amendment to the billion-dollar inde- pendent offices supply measure, in- creasing the amount for the Federal Trade Commission from $510,000 to $1,101,000. The vote was 89 to 6. The bill was sent back to conference with the Treasury-Post Office bill, acted on earlier in the day. Meanwhile, President Hoo -~ ~Txed his signature to the $102,000,60. Gtate- Justice-Commerce-Labor supply meas- ure, and the Senate appro the con- {:x]l'lence report on the $308,000,000 naval Although all 11 appropriation bills have vu‘sed the senm only 5 have gone to the White House. RAINEY EXPECTED TO BE SELECTED FOR SPEAKERSHIP (Continued From First Page.) and Byrns groups, which have opposed Speaker Garner on many policies in the past 20 years, have finally defeated the Texans’ followers. McDuffie was understood to have the support of Garner, although the Vice President-elect has taken no active part in the campaign for his successor. Garner becomes Vice President and presiding officer of the Senate Saturday. The new Speaker will assume control of an overwhelming Democratic House and will have the responsibility of putting through President-elect Roose- velt’s legislative program in a special session. Indications are now that the special session, because of the economic conditions. will be called by Mr. Roose- velt within a few weeks instead of mid- April, as originally planned. In addition, the Rainey-Byrns forces have agreed to seek to oust South Trimble, clerk of the House now, and elect Representatve Nelson of Missouri, & “lame duck.” Four Victory Claimants, Prior to this morning’s developments, victory in the speakership race had been claimed by Rainey, McDuffie and Byrns, as well as Representative Ran- kin of Mississippi. Both Northern and Southern delegations had split wide open. McDuffie and Rainey had seemed to be running neck and neck, with the powerful . Tammany delegation of 29 leaning toward the Alabaman. Byrns concededly was in third place, but_he has maintained a belief that neither Rainey nor McDuffie had enough votes to obtain a majority of 157 and that he eventually would be nominated. Four State delegations, Ohio, Penn- sylvania, Michigan and Indiana, had split wide open between the three lead- ers, with Rainey and McDuffie claim- ing control of a majority in each. Ohio was supposed to go solid for Repre- sentative Crosser of that State on the first ballot, but five members broke over and the remainder were released. New England Democrats held a se- cret conference to discuss the situation, with several leaning to McDuffie. Conferences were held here yesteday chief of Tammany Hall; John H. Mc- Coey, Brooklyn Democratic leader, and Frank Hague, mayor of Jersey City and Dezseratic leader in New Jersey. It was learned they discussed the speaker ship with followegg of McDuffle, “Balance of Power” Fails. About 60 of the 127 new members- elect had gathered last night in a rump caucus to thresh over the p and other organization matters. They failed, however, to form a bloc which would hold a “balance of power.” ‘The incoming members met at a call issued by Will Rogers, a former Okla- homa school teacher, and Thomas O’Malley of Wisconsin. One Farmer- Labor member attended, Shoemaker of Minnesota. They finally adopted a resolution _indorsing the Democratic platform, President-elect Roosevelt and whoever is nominated Speaker. Rogers presided and remained stand- ing during most of the two hours. For a gavel he used a brand-new hammer. There was such an uproar that he was kept busy rapping for order. Speeches were many and often. At first the newly-elect started to hold an executive session, but Rogers explained “the newspaper boys are going to give us a little publicity,” and the gathering ted & motion by Harry W. Mussel- white of Michigan, to let reporters at- tend the proceedings. “This meeting has no official status” Musselwhite shouted. “We are entirely outside of our province, and I we are very presumptuous. I mcve that gomomun be elected and no record ept.” ‘The motion was adopted unanimously. Shortly afterward several left in a hufl, CHECKS ACCEPTED FOR INCOME TAX Bureau Bars Only Institutions .in Receivership—Offices Thronged. The Bureau of Internal Revenue to- day was accepting for collection the checks of local income on any bank not in the celvers, ‘The Bureau was today with ‘Washington taxpayers their re- turns due March 15. The bank holiday, such as in Mary- land, or withdrawal limitations of cer- tain banks here, possibly will be allowed as an excuse for actual col- lection on the checks, it was said un- officially, although income-tax returns must be filed on time if the penalty is to be avoided. A Checks on limited withdrawal banks yers drawn ds of re- see fit to pa; which their withdrawal limits. BAND CONCERT. B, T s S S ‘Rhapsodie. Potpowrri, “Popular Songs of Italy,” Langey Fox trot, “The Cop on the Beat, the in the Moon and Me"..Murray “Lonesome Lover” (re- Monaco|