Evening Star Newspaper, March 8, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight and tomorrow; slightly colder, with lowest temperature about 38 degrees tonight; colder tomorrow and tomorrow night. Temperatures—Highest, 56, at 6 p.m. yesterday; lowest, 42, at 5 am. today. Full report on page 9. * New York Markets Closed Today. No. 32,453. post office, Entered as second class matter Washington, D. C. ROOSEVELT MA . ) Foening Hha WITH SUNDAY MORNING EDITION WASHINGTON, D. C, WEDNESDAY, MARCH 8, 1933—TWENTY-FOUR P AGES. Y EXTEND LIMITED BANK ACTIVITY UNTILC [} Reserve Notes| May Replace Serip Issue. WILL KEEP GOLD INU. S. GUARDED Broader Powers for| President Are Expected. President Roosevelt will keep a firm hand on the national bank- ing and monetary situation in this country until conditions have straightened, out and permanent remedial legislation can be en- acted into law. Another presidential proclama- tion dealing with' the situation may be expected either before the present bank holiday closes at midnight tomorrow, or simultane- ously with the end of the holiday. Scrip May Be Avoided. The President is inclined to the view that the general use of scrip for cur- | rency the country over will not be necessary, but that a widespread use of Federal Reserve notes, for which additional power will be asked of Con- gress, will take care of the situation. Serip, however, may be needed in cer- tain localities to meet the existing emergency. In his message to the new Congress, which assembles at noon tomorrow, the President will ask broad powers bef granted him to make it possible to meet changing conditions. His recommendations for legislation | will deal with the present emergency, | leaving for further consideration per-| manent reforms in the banking laws. The present plan appears to be to| have Congress act speedily on the | emergency legislative program, and | then to Tecess for two or three weeks, thus giving the administration time to formulate its permanent legislative program. The President will confer | with the congressional leaders today | to determine what course shall be fol- lowed. | | ‘Will Protect Gold. | | The President in his recommenda- tions to the Congress tomorrow will, it is understood, deal with one or two other subjects beside emergency bank- ing legislation. What these are has not | yet been disciosed. f The President, it is cleariy apparent, will act to keep the gold supply safe| m this country. Whatever modifica- tions are included in future proclama- tions by the President and orders by the Secretary of the Treasury, this maintenance of the gold supply is ex- pected to be firmly continued. The views of the President in regard to the banking situation and to the recommendations_he will make to the Congress were obtained today at the first press conference Which the new Chief Executive has held since he en- tered the White House. No intimation was given of the de- tails of the expected presidential proc- lamation relating to banking. How- ever, it is not believed that it will con- tinue the present bank holiday, but will call for restricted banking, bearing in mind always the need for conserving the gold supply. Will Guard Credit, | Owing to rapidly changing conditions and to the biief period before the as- sembling of the Congress, it will be im- possible to draft a program of per- manent banking legislation for presen- tation in the President’s first message to that body tomorrow. It was pointed out today, as an ex- ample of the speed with which the situ- | ation is changing, that on Monday it | seemed inevitable that thére should be & national use of scrip as a medium of exchange, but now it is believed that its use may be avoided generally if not al- ether. o hing appears certain, that in dealing with the banking situation there | must be the same treatment meted out to the national and State banks. Every effort i3 to be made by the new edministration to preserve the credit of the Government. While it is essential that a suffcient supply of currency, or what passes for currency, must be pro- vided to make it possible for the coun- try to do business and the people to care for their needs, there is to be main~ tained a sound as well as adequate cur- | rency. In line with this determination is the effort which will be made by the Roosevelt administration to bring about economy and to keep the Government out of further debt. In the end this| must be accomplished by a balancing | of the budget, with, it is believed, greatly reduced expenditures. Guaranty Favored. On Capitol Hill there has been an increasing demand for some form of Government guaranty of bank deposits. Senator Pat Harrison of Mississippi, slated to be chairman of the Senate Finance Committe, personally favors such guaranty. Senator Fletcher of Florida. soon to be chairman of the Banking and Currency Committee, looks Wwith some favor on measures to issure deposits, through a levy on deposits and Joans. Senator Reed of Pennsylvania has indicated that he would not oppose a Government guaranty of deposits up to 50 per cent. In all cases the Sen- ators insist that the guarantee must be made only in cases where banks are strictly solvent and with liquid assets. So far, however, there has been noth- ing to indicate that these demands for Government guaranty of bank deposits has impressed President Roosevelt with the soundness of such a course. Senator Robinson of Arkansas, Democratic leader, said he believed the special_session could dispose of dent Roosevelt’s emergency banking program in three days lng t't’mbt” t:x:; would be “perfect co-pperation Senate urd House in obtaining its loption. .dsgnalor Harrison has declared him- self in favor of a “big tax” on the hoarders of gold and currency at this time. Just how such a tax could be made effective has not been worked out. There is a growing belief, however, that some such legislation may be attempted. Meanwhile Secretary Woodin said that acual currency would be circulated in place ot crip or clearing house certifi- cates under a plan now being formu- lated. He did not disclose the plan (Continued on Page 4, Column 5.) Bz;nking Outlook Restrictions Slowly Easing As Nation Waits for Congress to Act. ° By the Associated Press. . With gradually loosening restrictions, the bank holiday will be continued un- til Congress passes new legislation. Meantime, gold cannot be paid out, but banks deposithunxold with their Federal Reserve Banks will receive in return currency which they can pay out now for necessities. New currency also will be issued against other reserves made available under the Glass-Steagall bill. Maximum use of currency (other than gold) 15 intended, keeping use of scrip to a minimum. Both the present emergency regula- tions and ‘the permanent legislation are being framed to keep the strong banks doing business, rather than to bolster actually insalvent institutions. BRITAIN RETAINS POLICY ON GOLD Stand Unaffected by Domes- tic Banking Crisis in U. S., Officials Hold. By the Associated Press. LONDON, March 8.—From the high- est financial quarters of the British government it was learned today that America’s domestic banking crisis has in no way affected Great Britain’s policy with regard to the gold standard. That policy, as reaffirmed today, is that while Great Britain looks forward to an eventual return to gold as the most suitable international standard of value, no return to it can be con- templated until there is & promise of a more workable system than existed just before this country abandoned gold in 1931. e Also certain definite conditions must be fulfilled, or must be well on the road to realization, before the officials who help to formulate the financial policy of the British government will advise the cabinet that the time is ripe for a return to the gold standard. Statement Recalled. Prime Minister MacDonald’s state- ment to Parliament on February 9 is still the government's policy, it was said. On that occasion the prime minister said: “There are a number of economic, as well as financial, conditions which must be fulfilled before restoration of | the international gold standard can be a practical possibility.” That declara- tion has been supported on several occasions since then by Neville Cham- berlain, chancellor of the exchequer. Broadly, the conditions to which Mr. MacDonald had reference are stabiliza- tion of national currencies, lowering of trade barriers, raising of commodity | prices, and settlement of the war debts. Mr. Chamberlain’s view is that the key to the whole problem may be found in’ the price level of primary com- modities. The fall in prices shattered confidence in many countries, and a remedy can be found, he believes, only by international action such as is contemplated in the projected world economic conference. B Regarded as/Temporary. Events of the last week in the United States have not altered the British financial policy because the view here is that the present American difficulties are purely domestic and certainly temporary. Much thought has been given to the possibility that the American situation will speed up sclution of the larger world problems, but it is too early. for authoritative comment on that phase. Meantime Great, Britain will take advantage of every opportunity to stabilize the world monetary system, and it is believed here that a large measure of agreement can be reached when international negotiations are begun. GERMANS MAY EXPEL [FOREIGN NEWS MEN Correspondents Again Are Warned Against Showing “Ill Will” Toward Hitler Government. - By the Associated Press. BERLIN, March 8—Foreign corre- spondents in Germany are warned that expulsion measures are being prepared to apply to those who have “persist- ently misrepresented the internal situa- tion.” The statement, distributed by German agencies, sald some correspondents have fled to escape police measures. A check failed to disclose any general exodus, however. Correspondents remaining will be placed on probation after a first offense in srowing “ill will' toward the Hitler government, the warning sald. Visas will be revoked after a second offense. Five persons were killed and several injured today in rcl!llcll disturbances in four German cities. Ir Bresiau one Nazi was killed and five wounded when shots were fired from trade union headquarters upon & group of 1250 brown-shirted marchers. Two Nazis were killed and six in- y unidentified assailants. unist leader was found shot to death on a street in , while a worker was seriously injured in his home by an unidentified person. The Republican flag of Germany was taboo throughout the Reich today with the old imperial flnilnd Nazi swastika hoisted over public buildings. The im- perial flag ap] ed over the Berlin City Hall for the first time since 1918. 1 swastika flag was hoisted over a synagogue at Buchun, but was removed later. A fire bomb hurled in a syna- gogue at Koenigsberg caused slight damage. i - Radio Programs on Page B-5 ONGRESS CAN ACT (Clearing House Here to Meet Tonight. BANKING IN D. C. CUT TO 5 ITEMS Capital Leaders Con- , tinue Study of Situation. By the Associated Pres: RICHMOND, Va, March 8.— ‘Throughout the fifth Federal Re- serve district communications to banks are being sent by the Bank of Richmond today informing them that the fifth district bank will re- place pay roll funds withdrawn under the provisions of Treasury Department regulations. “We taink we had better go slowly .on the whole question,” one authority sald, asking that his name be not used, “but arrangements have * been made for meeting legitimate pay rolls, and there is no cause for worry.” In some cases there might be a slight delay, it was pointed out, but pay rolls are to be met, they said. twashington is in the Richmond district.) Although the Treasury Depart- ment has promulgated 14 differ- ent regulations lifting restrictions on banks during the four-day holiday, local institutions today continued to follow the course of banks generally throughout the country and operate only on five of these. Under authority of the Clearing House Association they postponed action on the others. As explained in a notice posted in one of Washington'’s leading banks, the limited business which banks are doing is explained as follows: “1. Reopen our safety deposit department. “2. Make change at tellers’ win- dows. “3. Cash checks drawn on the Treasurer of the United States. “4, Accept payments in settle- ment of obligations payable at or to this bank. “5. To handle bill of lading drafts covering food or feed products.” Study Regulations. The clearing house advised all banks to conform to the criginal presidential bank holiday proclamation which stated that no gold or gold certificates were to be paid out during the period of the moratorium. Clearing house officials said that they needed more time in which to study regulation 10 covering this matter. In the meantime many customers were visitfng their banks, calling atten- tion to the Treasury regulation and asking for varied amounts of money with which to meet “necessities.” ‘While members of the Clearing House Association made only the bare state- ment that patyroll and other “necessity” funds were .ot to be paid out until further study had been given to every angle and point in the Treasury regu- lations, other bankers explained what they believed to be the reasons for this action. The difficulty lies in the inter- pretation of “necessities.” Long lines of depositors might appear at the tellers’ windows and demand large sums of money, “all for necessi- ties.” These demands, together with (Continued on Page 4, Column 7.) HITCHCOCK CONSIDERED FOR RESERVE BOARD POST Omaha Publisher and Former U. 8. Senator Believed Roosevelt’s Choice for Magee Vacancy. By the Associated Press. Gilbert M. Hitchcock of Omaha, | Nebr., today was understood in informed | circles on Capitol Hill to be President Roosevelt’s choice for a place on the Federal Reserve Board to fill an exist- ing vacancy. Hitchcock, Omaha publisher and Senator from Nebraska from 1911 to 1923, is now in his 74th year. It is expected he will fill the vacancy brought about by the Senate’s refusal last session to confirm Wayland Magee for reappointment to the board. LAUREL MAN KILLS SELF Leroy Wheeler Takes Life at Home of Estranged Wife. By a Staff Correspondent of The Star. LAUREL, Md., March 8.—Lero) Wheeler, 30, member of a e.n{ family here shot and killed at :io?nmynthehumeolmummd e. According to Magistrate Harry M. Scott, Wheeler went to the home of his wife, Viola Grawel, in Laurel, and after bran a gun, threatened to shoot members of the family. However, he turned the gun on_himself, Scott said, and inflicted a ‘wound in his temple. He died instantly. Magistrate Scott said he will issue a certificat> cf suicide this afternoon. The Wheslers had been separated for come time. —_— King George Recovering. LONDON, March 8 (#).—It me.“ [y it phte-w" rge al com ly recovered from a cold which he con- tracted last week end. | s HOUSE DEMOCRATS -FACE PARTY HGHT New Leaders Plan to Drive Over Conservative Wing at Caucus Today. An intraparty fight has broken out in the huge Democratic House member- ship and the new leaders have pre- | pared to drive over the conservative wing at a caucus late today, called to elect four members to the controlling Ways and Means Committee. The new triumvirate—Speaker-nomi- nee Rainey, Floor Leader Byms and Representative Cullen, leader of the Tammany delegation and assistant whip—in a series of conferences last night agreed to support a slate of candidates. Election of the slate, tentatively agreed upon as Representatives Burch of Virginia, Shallenberger of Nebraska, West of Ohio and Boehne of Indiana, would give the new leaders command over commitiee assignments when the House organizes tomorrow. Indications are that a last-minute shift may be made on one of those agreed upon. Other candidates for the committee in- clude Representatives McClintic of Oklahoma, Hart of Michigan, Boland of Pennsylvania and Cox of Georgia. Make All Assignments. The 15 Democratic members on the Ways and Means Committee make the party’s assignments to all other com- mittees. Already there are two Tammanyites, Cullen and Sullivan of New York, on Ways and Means. With the exception of about four members, the remainder. including Chairman-designate Dough- ton of North Carolina, supported the Rainey-Byrns ticket for the leadership at the caucus last week in which Mc- Duffie of Alabama was defeated for Speaker and Bankhead of Alabama for leader. ‘The breach between the Rainey- Byrns-Cullen followers and supporters of McDuffie was widened when several of the Alabaman’s most ardent advo- cates were privately informed that they were to be punished by being shifted fl’oa important to minor committee posts. Because of the unwieldly member- ship of 313, these developments are portentous of ‘many intra-party con- flicts among the Democrats. Republicans Face Row. Meanwhile, the Republicans appear to be running into a little trouble of their own. The Pennsylvania delegation is understood to be ready to grevent Rep- resentative McFadden of Pennsylvania (Continued on Page 2, Column 5.) BOULAYE IS NAMED AMBASSADOR TO U. S. Veteran French Diplomat Will Re- place Claudel, Who Will Go to Brussels. By the Associated Press. PARIS, March 8.—Andre Lefévre de la Boulaye, veteran of the French dip- lomatic service, today was named Am- bassador to Washington. He succeeds Ambassador Paul Claudel, who was named to the Brussels post, suc- ceeding Charles Corbin, who in turn ‘was appointed to go to London. ‘The official diplomatic shake-up, one of the largest in recent French history, ‘was announced after a cabinet meeting. Policeman Seizes Boys’ Carand They | | Get His Motor Cycle | | | Bpecial Dispatch to The Btar. MARTINSBURG, W. Va., March 8 —Harvey Robinson and Fred Hardy are in jail, charged with the theft of Traffic Officer Thomas Grove's motor cycle. They are alleged to have taken it when Grove, on the request of Hardy's mother, took from the youths the Hardy family car. HUGE SOVIET ARMY - GUARDS FRONTIER 200,000 Men, Reinforced by | Bombing Planes, Watch '. Manchukuo Border. | By Radlo to The Star. MOSCOW, U. 8. 8. R, February 20 | | (By mail to Berlin).—With its head- | " quarters established at Khabarovsk op- ;poslk the northeasternmost Soviet- | | Manchukuo frontier, a Soviet army of | 200,000 well equipped men, reinforced | by a large fleet of bombing planes, is | |on guard. The Seviet infantry, which | was withdrawn into Siberia last Sum- mer when relations with Japan seemed | | better, has again been sent to the Far | East. ‘While Japanese assurances, that tl':eyi are not interested in taking Soviet ter- ritory, must be accepted more or less at face value so long as the Japanese are consolidating their positions in Manchukuo in Jehol Province, there is | as yet no definite indication of how far their ambitions for a “Japanese Asia” may lead them. } Japanese reluctance to sign a non- | aggression pact with the Soviet has given the Russians sufficient cause for fearing the worst. Soviet officials very cautiously avoid open reference to pos- sible war in the maritime provinces, but foreign observers are openly speculat- ing as to what the Soviets might ac- complish were hostilities to occur. Red Army 600,000 Strong. The Red army has a peace-time strength of 600,000 men, well equipped with the latest types of small arms, cannon, tanks and other mechanics. It is & well drilled, well fed loyal force led by capable officers and prepared by the (Continued on Page 2, Column 7.) ——— FOODSTUFFS ABUNDANT, EXCHANGE HEAD ASSURES Transportation to Markets Declared Highly Organized, With No Fear of Shortage. By the Associated Press. NEW YORK, March 8—Samuel Knighton, president of the New York Produce Exchange, said today that there was an abundance of foodstuffs on hand and that railroads were ac- cepting checks for transportation of supplies. “I want to assure the American people,” Knighton said, “that the sup- Pplies of basic foodstuffs of all kinds are most abundant and so liberal as to preclude any possibility of shortage for a long time to come. “As a guarantee against any short- age of commodities, our transportation lines are in a high state of efficiency, so that all food products can be moved to market in case of a threat- ened dwindling supply.” DEALERS CLOSELY SCRUTINIZING ORDERS FOR COMMERCIAL GOLD Precautions Are Taken to Avoid Withdrawals for Hoarding By the Assoclated Press. NEW YORK, March 8—To prevent any circumvention of President Roose- velt’s bank proclamation, commercial dealers in gold and silver are subject- ing orders for these metals to unusual scrunity, it was indicated today. Dealers said they knew of no cases Purposes. In.this market, however, & speculative demand ‘has developed as a result of the on gold and silver and bids as as $30 a troy ounce have been reported. In 1928-29 the price was s high as $175 an ounce. ‘The limited supply of this ot iy, according. o, trade an unlikely, a holders would be willing in which manufacturers called for gold to permif osiensibly for their own operations, but actually for delivery to How- to guard such it was required that requisitions be ac- | stone companied by evidence of a legitimate need for the metal. The trade demand for platinum is the quotation & troy ounce. currently AN HAY QUT [EACE MARCH 2 Imperial Troops Complete Seizure of Great Wall. South of Jehol City. By the Associated Press. Japan's determination to withdraw from the League of Nations as a result of the Sino-Japanese dispute becomes more apparent. This determination was made evident as her forces rested momentarily after taking over the last important pass through the Great Wall of China, south of Jehol City. ‘The Japanese cabinet, after the mat- ter had been submitted to the Emperor, approved and sent to the Privy Council the draft of a communication which is expected to be submitted to the League about March 20, calling for per- manent withdrawal from that organi- zation. The Japanese delegation walked out of the League Assembly recently after unanimous adoption of a report con- demning Japanese policy in Manchuria. Koupeikow, dispatches from Jehol City related, has been occupied by the 16th Infantry Brigade of Maj. Gen. Tadashi Kawahara. This pass, which is 65 miles northwest of Peiping, was the last important gateway in that region to fall to the invader. Meanwhile, Marshal Chang Hsiao- Liang, who had been directing the cam- paign’ against the invaders, resigned as military overlord of North China and assumed the blame for the loss of Jehol province to the Japanese. Gen. Tang Yu-Lin, Governor of Jehol province, according to a reliable but unconfirmed source, has been arrested at Hsifengkow Pass in the Great Wall. | It was added that a report he had been killed after being arrested may be true. The arrest was said to have been made by troops of Marshal Chang Hsiao-Liang. MARSHAL CHANG RESIGNS. Admits Unfitness to Continue as War Lord. By the Associated Press. PEIPING, China, March 8. —Acknowl- edging his failure to stem the Japanese advance, Marshal Chang Hsiao-Liang resigned today as commander in chief of the Chinese Armies. Only 35 years old, Marshal Chang was the last Chinese war lord of Manchuria and directed the losing fight against the Japanese for the past 18 months in that territory, at Shanhaikwan and in Jehol. His resignation, telegraphed to the Nn:élonum government at Nanking, said: “After the loss of the three eastern provinces (Manchuria), I tried my best to remedy my faults, but the fall of Jehol convinced me I am unfit to keep command. I have not fulfilled my duties to the government and my responsibili- ties to the people. “In the last months I met with many difficulties and unexpected developments occurred. If I remain in office one more (Continued on Page 2, Column 2.) HOLLIDAY ASSUMES PHILIPPINE POST Sworn In as Vice Governor to Serve When Roosevelt Relinquishes Duties March 24. By the Associated Press. MANILA, March 8.—John H. Holli- day of Missouri was sworn in as vice governor of the Philippines today and will be acting governor general after Gov. Gen. Theodore Roosevelt leaves March 24. Gov. Roosevelt’s resigna- tion was accepted by President Roose- velt in Washington yesterday. Holliday, a Republican and former St. Louls attorney, has been here since last March, when he was made legal adviser. He was appointed vice gov- emor in August when Gov. Roosevelt planned to go-to the Unied States to assist in Mr. Hoover's campaign for re-election. Roosevelt changed his plans and did not go to the mainland. Bince expiration of Holliday’s previous appointment by former President Hoover, which was never confirmed by the United States Senater, the Missou- rian has held the title of legal adviser to the governor general. In & statement, Gov. Roosevelt said: “Naturally I am deeply sorry to leave the Philippines,” adding he hoped his administration had been successful. Manuel Quezon, president of the Philippine Senate, said: “I am sure the country will regret Gov. Roosevelt's leaving. He 1f to the &ervlu of * “From Press to Home : Within an Hour” The Star’s Carrier system coversevery city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. Yesterday’s Circulation, 123,221 FHP (P Means Associated Press. TWO CENTS. ROOSEVELT STARTS - ECONOMY DRIVE BY U.S. TO DISREGARD ALL SPEAKEASIES ABOLISHING UNIT’; INNEWDRY POLICY Hoover’s Conference on Home | | Ownership Taken Off Gov- ’ ernment Pay Roll. SHIPPING BOARD MAY BE ORDERED ABSORBED Home Loan Bank Mentioned Among Activities Likely to Be Curtailed. The first economy move by the Roose- velt administration took effect today when the administrative officers and employes of former President Hoover's Conferegce on Home Building and Home Ownership was stricken from the Government pay rolls, and their equip- ment moved out of the Commerce Building, which houses many of the retiring administration’s commissions. High Government officials today said President Roosevelt will ask the new Congress this week to grant him the widest authority possible under the Constitution to effect immediate econo- mies. Wants Veteran Control. ‘The request will be especially direct- ed at the veterans’ compensation. Un- der the President's plan, it was stated, he would ask for authority to review all cases relating to veterans, and power Yo merge major departments and cut stat- utory appropriations. The request is understood to be along the line of the proposal Vice President Garner advocated in the last Congress as Speaker. It is planned that the re- quest be linked with a plea that to further restore confidence, Government costs be sharply reduced and brought within the income, if possible. At the same time, it was learned from an authoritative source that President Roosevelt at an early date will take steps to abolish the Federal Home Loan Bank Board, now having headquarters in the Commerce Building. The home loan system was fostered by former President Hoover as one of his major relief plans, designed to aid small-home owners in distress. The sys- tem is capitalized at $134,000,000, of which approximately $12,000,000 was ! subscribed by building and loan asso- | ciations, insurance companies and sav- | ings banks. The rest came from the Treasury. No Direct Loans Made. Although it has been operating since last August under supervision of former Representative Fort of New Jersey, the system has not yet made loans directly to home owners. Instead. it has loaned approximately $25,000,000 to eligible building and loan associations and has established lines of credit with these associations amounting to approximately $100,000.000, it was said. The Home Bank system has approx- i imately 2,000 employes in the 12 re- gional banks scattered throughout the | country. Approximately 400 are em- | ployed in Washington. The status of the other commissions housed in this massive building was reported to be cn “shaky foundations.” | They are the Inter-American High | Commission, the International Bound- ary Commission, the American Marine Standard Committee, the United States Geographic Board, the Wood Utilization Committee, the Federal Stabilization Board and the International Screw Thread Committee. Shake-up Believed Near. | Meantime, it was authoritatively re- ported that the expected shake-up in the Commerce Department would be forthcoming within a fortnight. It was learned the administration plans a general curtailment of the activities of this agency, which now employs 17,000 persons in Washington and in the fleld. Secretary of Commerce Roper, however, refused to confirm this report. Of the 10 bureaus in the department, it was reliably reported that the Bu- reau of Foreign and Domestic Com- merce would bear the brunt of the shake-up. This agency was organized by President Hoover at the time he was Secretary of Commerce, and it now has approximately 2,000 employes in Wash- ington and in all corners of the world. Its 1933 fiscal year appropriation amounted to $3,988,000. For the forth- coming year its officials said they could operate on $3,514,000. ! $37,008,000 for 1933. ‘The department’s 1933 appropriation i8 $37,008,000. At the time of its or- ganization in 1914 it operated on $11,- 647,000. Outgoing ranking officials of the de- partment also said they learned the administration plans to abolish the Shipping Board and transfer its duties to the Commerce Department. It is understood one bureau will be organized to take care of the Shipping Board, the Navigation and Steamboat Service and the Lighthouse Service. The Coast and Geodetic Survey also may be merged with this new agency. Ancxious to Start Work. At the White House today it was sald that President Roosevelt is deter- | mined to lose no time in putting into effect his economy program. Mr. Roosevelt has been giving this one subject as much thought as any other governmental matter, up until the past few days, when he was con- fronted with the banking crisis, and already he has well defined ideas as to how he will proceed in reorganizing the executive branch of the Govern- ment, lopping off activities here and (Continued on Page 2, Column 3) * MRS. LEIDY DROWNS | Wife of Rye, N. Y., and Philadel- phia Man Killed When Auto Strikes Rail on Bridge. By the Associated Press. NEW YORK, March 8—Mrs. Mar- jorle Leidy, wife of Carter Randolph Leidy of Rye, N. Y., and Philadelphia, was drowned today when an automgbile driven by her husband crashed through the guard rail of a bridge across the Bronx River. ‘The autcmobile landed upside down, settling in the mud at the bottom of the river. Leidy was rescued by em- loyes of a nearby gasoline filling sta- and taken to Fordham Hospital suffering from submersion. Leidy had swerved his car to avold & collision with another automobile, AS CAR LEAPS SPAN! Woodcock Puts Responsibil- ity for Closing Places on Local Authorities. CUT IN APPROPRIATION GIVEN AS CAUSE FOR STEP | Director of Prohibition Declares Dry Agents Will Devote Efforts to Sourczs of Liquor. The Prohibition’Bureau today trans- ferred to local authorities in the States the problem of speakeasies and decided henceforth to concentrate Federal en- forcement activities on major sources of liquor supply. Col. Amos W. W. Woodcock, director of prohibition, in announcing the new policy, explained that economy pro- vislons in the new appropriation bill, restricting purchase of liquor for evi- dence and pay of informers, and elimi- nating wire-tapping, have necessitated the change. Expressing the opinion the ban on liquor purchases by prohibition agents seeking evidence, “will make it virtually impossible for the bureau to be effec~ tive against speakeasies in most juris- dictions,” Col. Woodcock declared the bureau “must confine itself almost en- tirely,” to eradicating the manufactur- er and transporter. 5 Believed Good Move. ‘The revised policy, he said, is “prob- ably a good thing in the long run, be- cause it will tend to focus attention upon the responsibility of local authori- ties upon speakeasies and similar vio! tions and make our work more effective by fixing a more definite objective.” While the legislative restrictions do not become effective until July 1, when the new fiscal year starts, the director said it “seemed desirable” to follow the intent of Congress without further de- lay. The restrictions were made effec- tive by special order of the director on March 3, Woodcock disclosed. The an- nouncement today gave the first inter- pretation of the restriction to directly affect the speakeasy.” Appropriation Bill Provisions. In his statement, the director quoted these paragraphs from the appropria- tion bill for the bureau: “That no part of this appropriation shall be used for or in connection with ‘wire tapping’ to procure evidence of violations' of the national prohibition act, as amended and supplemented “That no funds hereby appropriated shall be used for the purchase of in- toxicating liquors which are consumed by the investigator or any one with him, nor to pay informers, nor for the pur- chase of evidence except that the director of prohibition may authorize as the payments of rewards for infor- mation of major violations of the law.” In making the bureau's operations conform at once with “the wishes of Congress,” Col. Woodcock pointed out that he had in mind not only “the pnncipleldinvolved." :ut} the fact that cases made now probably could not be tried before Jul;pl ¥ Declares ““Wire-Tapping” Limited. “A great deal has been said about wire-tapping,” the director stated. “The present method was approved by the House Committee on Expenditures in the executive departments in Feb- ruary of 1931. It was used exclusively against the larger syndicate operaticns, and out of a total of over 90,000 cases made during the last fiscal year, in only 102 of them. The restriction upon its use will, therefore, affect only our operations against the larger syn- dicates. It will be a problem to find an_adequate substitute for it.” The restriction on pay of informers, he said, is not expected to affect the Federal operations to any appreciable degree. Some change will be neces- sary in enforcement methods in the District of Columbia, he pointed out, as the bureau has been paying inform- ers used exclusively by the local pclice. Col. Woodccck defined the ban on purchase of evidence as preventing bu- reau agents from buying any intoxicat- ing liquors, whether it is consumed or saved for evidence. He said the only evidence ever purchased in the past has been liquor. “In the old days of enforcement,” ‘Weodcock commented, “there were un- doubtedly abuses in respect to the purchase and consumption of intoxi- cating liquor. In September, 1931, I made an order which prohibited the consumption®‘of any intoxicating liquor unless previous effcrts to obtain evi- dence had failed, and unless the con- sumption had been approved by the administrator in advance.” Explains Operation. Col. Woodcock described how the statutory restrictions would operate to prevent Federal action against speak- easies. “There have been two methods in use in securing evidence against speakeasies,” he said. “One is the observation method and the other, the method of the investigator making & purchase himself. In the observation method, the investigator goé$ into the speakeasy and reports what he has seen. 1 have never understood why this method would not be effective in any court. The fact is, however, that it is effective in oniy a few jurisdic- tions. “I_think, therefore, that the effect (Continued on Page 2, Column 1.) FORMER FOOT BALL STAR AT NEBRASKA U. DIES Monte Lee Munn of Indianapolis Served in Cornhusker Legislature Before Leaving State. By the Assoclated Press. INDIANAPOLIS, March 8—Monte Lee Munn, 32, former foot ball star at the University of Nebraska, died here today after an attack of heart disease. Munn was formerly a member of the Nebraska State Legislature. He had lived in Indianapolis since 1930 and was engaged in the retail coal business here. Since coming to this city Munn had been active in politics and was an un- successful candidate for a seat in the Indiana General Assembly. He is survived by his widow, Mrs. Irene Scrced Munn; two brothers, Glenn Munn of Piketon, Ohio, and ‘Wade Munn of Lincoln, Nebr., and a sister, Elizabeth Munn, a medical stu- dent at the University of Oregon. No funeral arrangements have been 1 ‘