Evening Star Newspaper, March 27, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Mostly cloudy and warmer tonight and tomorrow, lowest temperature tonight about 40 degrees. Temperatures—Highest, 45, at 12 noon today; lowest, 34, at 6 a.m. today. Full report on page 5. . Closing N. Y. Markets, Pages 12 & 13 No. 32,472, Entered as second class matter post office, -Washington, D. C. — ROOSEVELT ORDERS FARM CREDIT UNITS MERGEDFOR SAVING Congress Is Informed of Ac- tion in Note—Stabilization Operations Ended. ECONOMIES OF $2,000,000 HELD IMMEDIATE EFFECT Morgenthau Is Expected to Head New Group—More Uniform Program Is Aim. By the Associated Press. President Roosevelt informed Con- gress today of an executive order estab- Mshing all Federal agricultural credit agencies under one unit. In the same order the President abolished stabilization operations by the Farm Board. The new agricultural financial organ- fgation is to be known as the “Farm Credit Administration” and will include the Farm Board, the Farm Loan Bu- reau and varlous credit agencies in the Department of Agriculture and Recon- struction Finance Corporation. A better co-ordination of the agen- cles involved in our agricultural credit system,” the President wrote, “will pro- | duce a more uniform program for agricultural credit and will result in substantial economies. “A saving of more than $2,000,000 is the immediate effect of this order.” He emphasized the maintenance by ! the Federal Government of the policy | of aid to the system of co-operative | agriculture. ! Henry Morgenthau, jr., chairman of the Farm Board, who is expected to kead the new Government unit, was | called into conference by the President later in the day. Text of Message. ‘The President’s text: “To the Senate and House of Repre- atives: ‘Pursuant to the provisions of section | 1. title 3, of the act entitled ‘an act to maintain the credit of the United States Government,’ approved March 20, 1933, I am transmitting herewith an executive order reorganizing the agricultural credit agencies of the United States. “This Executive order consolidates in one agency—the farm credit admin- istration—the functions of all present Federal organizations which deal pri- marily with agricultural credit, name- ly, the Federal Farm Board, the Fed- eral Farm Loan Board, the functions of the Secretary of Agriculture with re- gard to loans in aid of agriculture, and those of the Reconstruction Finance Corporation pertaining to the manage- ment of regional agricultural credit cor- porations. “The functions of the Pederal Farm Board with regard to further stabiliza- tion operations are abolished by the order. “More Uniform Program.” “A better co-ordination of the agen- cies involved in our agricultural credit system will produce a more uniform program for agricultural credits and will Tesult in substantial economies. “A saving of more than $2 000,000 is the immediate effect of this order. Further substantial savings are antic- ipated. “Important as are the foregoing, of greater and trolling importance is the maintenance of the long-standing policy of the Federal Government to maintain and strengthen a sound and permanent system of co-operative agri- cultural credit, subject to Federal super- vision and operated on the basis of pro- viding the maximum of security to present and prospective investors in bonds and debentures resting on farm mortgages or other agricultural securi- ties—all for the purpose of meeting the (Continued on Page 4, Column 5.) TREATY ZONE ENTRY BY JAPANESE FEARED| Gen. Ho Sees Possible Advance South of Great Wall De- spite Tokio Assurances. By the Associated Press. PEIPING, China, March 27.—The possibllity of a Japanese advance ingo the Peiping-Tientsin international treaty zone still threatens, in the opinion of Minister of War Ho Ying- Ching, despite assurances from Tokio that the Japanese have no intention of proceeding south of the Great Wall of | China. Gen. Ho, who is in command of Chinese headquarters here for Marshal Chiang Kai-Shek, the military chief of the Nationalist government, said last night that China will not consider any kind of direct negotiations for peace with Japan individually. He said the government regards the controversy a matter between the League of Nations and Japan. Gen. Ho announced the, Japanese bombed the town of Miyuan, 30 miles south of Kupeikow, a Great Wall pas- sage, last week. Miyuan is about half- way between Kupeikow and Peiping. Japanese reports from Shanhaikwan Friday said Shihmenchai, 8 miles south of the Wall at its eastern ex- tremity, was captured by Japanese- directed Manchurian troops. PRINCE REPORTED WED Eldest Son of Former King of Spain Makes Cuban Girl Bride. MADRID, March 27 (#)—It was re- ported in monarchist circles today that the Prince of the Asturias, eldest son of former King Alfonso, was married secretely in France on Saturday, to Senorita Edelmira Sampedro y Robato, the Cuban girl to whom he was re- ported engaged some time ago. sobtAvioe of the Brince of the Asurisa today issued a denial of reports from Madrid that the prince had been se- cretely married on Saturday. A S W Secret 0il Parley Held. PARIS, March 27 (#)—The Inter- national Oil Conference met today to discuss, among other things, renewal of the December agreemnt limiting Ru- mania’s daily production to 18,500 tons. The members said results of this agree- ment will not be published, so that wmarket apeculation may be avoided. |or directing body of the League. Attorney to Make Motion for Walker Divorcement Today By the Associated Press. MIAMI, Fla, March 27.—A. Frank Katzentine, attorney .for Mrs. Janet Allen Walker, said he would enter motion this after- noon for an order giving her a final divorce decree from James J. Walker, former mayor of New York City. The motion will be made before C(rfiuu Judge Worth W. Tram- mell. The divorce decree was recom- mended by Master in Chancery Thomas J. Dowdell last week aft- er he heard testimony in the case. Mrs. Walker, through her at- torneys, charged the former New York mayor with desertion and testified she knew of no reason why he had not lived with her for the past four years. JAPAN' FORMALLY QUITS LEAGUE OVER MANCHUKUO ISSUE Withdrawal, However, Will Not Officially Become Final for Two Years. GENEVA, March 27 (#).—Japan's formal notification of withdrawal from the League of Nations was communicated today to the League secretariat. By the Associated Press. TOKIO, March 27.—Japan formally ended today a membership of more than 13 years in the League of Nations. The final action was taken by the Privy Council, meeting in the Imperial | Palace, and the long-awaited decision was transmitted to Geneva with the aproval of Empercr Hirohito. A T700-word message to the League's headquarters asserted that inability os unwillingness' of League members tc grasp the facts involved in Japan's controversy with China over Man- churia resulted in the League As- sembly's report a month ago con- demning Japanese military activities in that territory. It said this report failed to contribute to the cause of peace which it called Japan's primary objective. ‘Will Hold Mandates. The message did not mention the South Pacific Islands lying between the Philippines and Hawali, former German possessions over which Japan was given mandates by the League. It was stated officially that Japan is determined to hold the islands and will continue to make the required anunual reports to the League Mandates Commission. If any question if raised concerning them, it wiil not be by Japen. Japan will continue to participate in the werld disarmament, economic and other League-sponsored meetings, but activity will be only perfunctory be- cause of the lack of sympathy shown the Nipponese Empire, a government spokesman said. Japan has not only quit the great body of more than 50 naticns making up the League, but has cast aside the greatest recognition it ever received from the Western world by simultane- ously removing itself from the council It was given a place with the British Empire, France and Italy as one of the fcur permanent members of the council on January 10, 1920. Six years later an- other permanent seat was given Ger- many, . “Final in Two Years. The notice of resignation is in ac- cordance with paragraph three, article one, of the League covenant, providing “any number of the League may, after two year's notice of its intention so to do, withdraw frcm the League, provided that all its international obligations and all its obligations under this covenant shall have been fulfilled a{ the time of its withdrawal. Thus the League will not recognize that Japan is no longer a member until it has paid its dues to this date in 1935. The privy council’s action came five weeks after the cabinet voted to with- draw if the League adopted the report on Manchuria which it was then con- sidering. The report censoring Japan for its seizure of Chinese territory in the name of the state of Manchukuo and urging nations of the world to re- fuse recognition to the Manchukuan government was adopted unanimously February 24. Will Work For Peace. The message today said “the Japanese government has come to the conclusion that it can no longer co-operate with the League,” but it added that Japan hopes to continue co-operating with other nations in world peace move- ments. This echoed words of Yosuke Matsu- oka, who was Japan's special counsel during the protracted League debate over Manchuria, when he led the Jap- anese delegation out of the League Assembly meeting at which the report was adopted. By that action Japan refused to co- operate in the League's plan for a Conciliation Committee, inclutiing the United States and Russia, to direct ne- gotiations between Japan and China for a settlement. Japan's resignation comes as a climax to a dispute which began shortly after Japan seized Mukden, Manchuria, on September 18, 1931, a5 a ‘“defense measure” because Japanese-owned rail- way tracks in that area had been torn up by alleged Chinese bandits. Since then Japanese forces have battled their way to all corners of Manchuria and have also brought Jehol under the rule of Manchukuo. FLOOD TOLL RISES Another Victim Claimed When Rowboat Capsizes in River. CINCINNATI, March 27 (#).—Flood waters yesterday claimed another vic- tim—the thirfeenth in eight days— when Eugene Lever, 23, of Newton, Ohio, drowned as a rowboat capsized in the Little Miami River near here. ‘Three other men and a woman in the boat were rescued by Willlam Simon- ton, caretaker at a camp. The Ohio River yesterday continued to recede slowly, falling 1.7 feet in 15 hours. The stage last ht was 57.2 feet, still 5.2 above ficod WITH SUNDAY )lol_l!li(fi xpITIdN bening Sfar, WASHINGTON, D. C, MONDAY, MARCH 27, 1933—TWENTY-EIGHT PAGES. PRESIDENT 10 GET REPORT URGING PAY CUT OF 15 PER GENT Flat Reduction Will Be Rec- ommended to Roosevelt by Economy Advisers. STATISTICAL EXPERTS AT TWO-DAY CONFERENCE Decrease in Cost of Living 8i 1928 Is Figured at 23 Per Cent. ‘With the cost of living throughout the } country reported to be down 23 per cent since 1928, a flat reduction of 15 per cent in salaries of Government workers, the maximum amount provided in the economy act, is to be recom- mended to President Roosevelt by his economy advisers, it was stated author- itatively today. The advisers were reported to have held conferences with Government sta- tistical experts Saturday and yesterday. It is understood Budget Director Douglas is engaged in drafting a report to the White House. The economy act gives the Presi- dent authority to slash salaries of Gov- ernment workers 15 per cent a month, providing the cost of living since 1928 has been reduced to or below that fig- ure. Goes in Effect April 15. It was learned the pay reduction will not take effect until April 15. At the Treasury today it was stated pay- masters already were drawing up the various pay rolls for the April 1 pay day with the 8 1-3 per cent reduction, enforced last year, still in effect. It was reported that Dr. Charles Baldwin, acting commissioner of the Labor Department's Bureau of smu-[ tics, conferred with the President’s ad- visers for several hours Saturday. He is reported to have submitted to the, advisers statistics showing the reduc- | tion in living costs since 1928. His report, it was learned, was based on the semi-annual survey on living costs made by his burgau. Dr. Baldwin " (Continued on Page 2, Column 3.) o COMMITTEE FAVORS WATERWAY TREATY Senate Foreign Relations Restores St. Lawrence Plan to Calendar, ( By the Associated Press. The St. Lawrence waterway treaby was approved by the Senate Foreign Relations Committee today and re- stored to the Senate calendar to await action. Senator Robinson, the Democratic leader, said he expected the pact would be considered at this session of Con- gress, but action would await disposal of President Roosevelt’s emergency program. Vote of 14 to 2. The treaty was sent back to the Sen- ate calendar by a vote of 14 to 2, with only Senators Wagner, Democrat, of New York, and Lewis, Democrat, of Tilinols, opposing. The treaty had been favorably re- ported to the Senate by the commit- tee last session, but reverted to the committee when the Senate failed to ct. Negotiated with Canada last Summer by the Hoover administration, the treaty provides for the joint construc- tion of a huge navigation and power ptoject on the St. Lawrence River at a total cost of about $540,000,000. ‘The American share of the cost would be $272.000,000, but only about $257,- 000,000 of new construction would be required. Of this, engineers for New York have agreed $89,000,000 should be paid by that State in return for the power rights it would obtain. Reservation Reported Back. The committee reported back to the Senate the reservation adopted last ses- sion to prevent the Aluminum Co. of America from obtaining a permanent grant to power rights at Massena. Senator Robinson said he knew of no reason why the treaty should not be considered at this session, but that the emergency program would have priority. No Attempt to Modify. Chairman Pittman said no attempt was made in the committee to modify the treaty to permit diversion of more water at Chicago, but that Senators Wagner and Lewis had spoken against the treaty. Gov. Horner of Ilinois, in a confer- epce with Pittman, Saturday, sought to delay action on the treaty or - tion of it to allow for any alteration in the diversion limitation by the Su-, preme Court to be incorporated in the pact. o MARYLAND BANKING MEASURE IS UPHELD! Three Judges Hold Emergency Law Is Constitutional for the Most Part. . | By the Associated Press. BALTIMORE, March 27.—The emer- gency banking law enacted by Mary- land’s General Assembly early this month was held by three judges: in| court here today to be constitutional for the most part. Handing down their decision after hearing arguments last week, they held that parts of the act which gave the municipalities and counties of the State ', preference in withdrawing funds was unconstitutional. Money on deposit by the State, how- ever. was held to have the right of preference on the grounds of the an- cient sovereign right of the government. VELL, ADOLF 'VAS Young YET! FARM INTERESTS RAP RELIEF BILL Mrs. Nell Donnelly Also Tes- tifies Against Measure at Hearing. By the Associated Press Spokesmen of individual agricultural | interests pressed their objections to the administration farm relief bill today in open hearings before the Senate Agri- culture Committee, beginning with | Harry W. Farr of Greeley, Colo., Who, | in behalf of several producers’ associa- | tions, opposed inclusion of sheep in the | administration plan. Farr read a telegram from the Na- tional Wool Growers’ Association which said: “We consider the provision of the | House farm bill (the Roosevelt bill) would be very injurious to lamb rais- ers” Farr announced he appeared as presi- dent of the Colorado-Nebraska Lamb Feeders’ Association, and was described by Senator Kendrick of Wyoming, the assistant Democratic leader, as “one of chemlnnut breeders of sheep in the world.” Favors Trial on Others. Farr also presented a telegram from J. D. Wilson of Douglas, Wyo., oppos- ing the bill. Farr told the committee: “We think it would be better to try out something like this on wheat and cotton. With lamb meat. you've either | got to sell or it soon will smell. Thc‘ lamb, cattle and pig crop is already on the way.” | » Farr advocated reduced taxes as one | of the basic steps necessary to help the live stock industry. “We ought to get the Government out of business,” he added, “but this regulation certainly would put the Gov- ernment into business, require a great army of employes and more taxes.” He contended it would be impossible to regulate live stock market receipts because of weather conditions, but (Continued on Page 3, Column 3.) GENERAL OFFENSIVE HELD STARTED BY COLOMBIANS | Belief Follows Announcement of | Capture of Guepi, Upper Pu- tumayo Settlement. By the Associated Press. BOGOTA, Colombia, March 27.—An- nouncement of the capture of Guepi, an ; upper Putumayo River settlement, was | believed today to mark the beginning | of a general offensive by Colombian troops opposing Peruvians in the dis- puted upper Amazon border region. A government bulletin last night said both sides suffered casualties in an eight-hour battle preceding the fall of Guepl. Colombian gunboats proceeding toward Leticia, the upper Amazon port which was seized by Peruvians last Sep- tember, were reported attacked when seeking to pass Guepi. ’ll'_k;'e gu"gbocu bon‘t;ed F’lehe Peruvian garrison, the repor¥said. Peruvians were reported to have fled leaving behind dead and wounded. Twenty Peruvian soldiers and one officer were said to have been captured | Robbers Battle In Vain for $15,000 _As One Is Wounded By the Assoctated Press. CHICAGO, March 27.—Two robbers fought unsuccessfully the operators of the Commerce Arm- ored Car Protection Co. over $15.- 000 in the company's offices today. One robber, identified as Jack ‘White, 28, was shot and wounded seriously. Thomas and Frank J. Palzen, owners of the company, chased the other from the build- ing. e The robbers, one with a shot- gun and the other with a pistol, entered the offices shortly after opening time. Frank Palzen shot White and joined his brother in chasing the other. REICH T0 PUNISH JEWS FOR STORIES Backers of Atrocity Reports to Face Drastic Action, Hitler Aide Says. By the Associated Press. BERLIN, March 27.—Joseph Goeb- bels, chief of propaganda, announced today that as a result of a conference with Chancellor Hitler yesterday his department will launch “sharp counter- active measures” against those responsi- ble for reports cf atrocities against German Jews. “Drastic legal proceedings will be undertaken against the atrocity, a| campaign which has been unloosed in | America and England by interested | Jewish circles against the new German regime,” Herr Goebbels said; “a blow shalt be struck at the intellectual | movers and beneficiaries of these trea- | sonable machinations, most of whom | are Jews of German origin.” The National Socialist party press bureau at Munich said the measures to be undertaken by Herr Goebbels will take the form of a nation-wide | boycott of Jewish businesses and the | numbgr of Jews remaining in pubuc! and educational offices will be further reduced in proportion to the Jewish ratio in the population of Germany. Forejgn Minister Konstantin von Neurath, cne of the few Conservative Nationalists in Hitler's cabinet who reputedly have the full confidence of President von Hindenburg, has warned the world against permitting “the bane- ful spirit of calwmny in vogue during the war to are up again” through reports of anti-Jewish terrorism. Propagandisis Blamed. He made the statement as Jewish anizations throughout the world | for & fast and demonstrations (Continued on Page 2, Column 7.) Blast in England Kills Seven. GATESHEAD, Durham, England, March 37 (#).—Seven persons were killed and 24 injured by a gas ex- plosion in a three-family apartment house here today. ol cal NEW FEDERAL BUILDING TO AWAIT POLICY DEFINITION BY ROOSEVELT 'Treasury Not to Contract for New Structures Until Con- struction Plan Is Framed—Present Work Continues. By the Associated Press. All construction of Federal buildings yet to be contracted for will be held up by the Treasury until President Roosevelt has defined his new building program, which is to be financed on bond issues rather than by appropria- tion from current revenues. ‘This was made clear today in in- formed quarters as explanation for cessation in letting new contracts or selecting new sites under the existing construction program. " All buildings already under contract will proceed, but the many bids received for new Federal structures, or for sites to erect them on will not be acted upon until the new comstruction plan is framed. Under contract at present are 308 buildings, to cost up to $328,188,000. Avallable for further construction 88 a:sum-around $96,000,000; but most of this the administration is earmarking for its reforestation program. Under the plans of the preced! administration 530,000,00&‘“ it have been spent on new buildings. ‘The Pmp:: standstill ties up alto- gether the $100,000,000 relief construc- tion plan initiated by the last Congress. Of the sum, $4,000,000 has been spent for sites but no single contract has been let. All construction underway or under contract for early start comes under the original $700,000.000 building pro- gram launched in 1928. t of this there have been com- ‘which cost $108,~ Congress having authorized in og.lo!uro of $492,682,000 of the run to the projects now delayed, offi- clals would not venture any n 'n.tt.bgdpolnw out',ons m the agreed | by the Senate committee, after reject- | ents. The proposal as originally intro- REFORESTING BILL READY FOR DEBATE rCommittees Approve Revised Measure Giving Work to 250,000 Men. | By the Associated Press. Changed to removed some of the ob- | Jections voiced by organized labor | | leaders, President Roosevelt's plan to |put men to work at rerorsumm’ emerged from committees on beth sides | of the Capitol today and leaders de- ! cided to attach to it also a $500,000,000 | unemployment relief fund. Informal discussion of the bill started | immediately in the Senate, but Senator | | McNary of Oregon, the Republican | leader, blocked formal consideration | until tomorrow. In the House, Chairman Connery of | the Labor Committee announced that { he would oppose on the floor the ad- ministration-indorsed substitute which his committee approved. It carried no reference to the provisions of the orig- inal bill to organize men into & civilian conservation corps and pay them $1 a day, but leaders understood that the broad suthority the measure would confer upon the President would allow him to proceed with his original plan. Low Pay Opposed. Connery, objecting to the low pay the bill would allow, saw the defeat of his own substitute proposal calling for pay up to $80 a month. The House agreed to take up the reforestation bill on Wednesday. The House committee approved the measure similar to that upon ing a substitute proposed by Connery. substitute, defeated 13 to 7, would have established a minimum monthly wage of $50 to single and $80 to married men or men with depend- duced set $30, and the substitute finally accepted by the House committee on & 15-to-5 vote would propose no mini- mum. Connery told newspaper men that “I reserved the right to oppose this bill on the floor of the House.” “I will not turn over to the President dictatorial powers to fix wages as low as 30 cents a day, or even 30 cents a month, as the Senate measure pro- vides,” he said. “If there is nobody else in Congress opposing this bill, I shall do it by my- self.” Other Substitute Features. Connery's substitute also would have forbidden the use of unemployed on flood control projects, prevented the ap- plication of a 15 per cent pay cut to the wages paid and provided for volun- tary enlistments of unemployed. As his committee took this action, he made public a letter from Willlam Green, president of the American Fed- | eration of Labor, saying the Senate sub- 1 but adding that “your substitute would be more acceptable than the Senate substitute.” Green added that he believed it was in the “best interests” of all to accept the Senate proposal since “it would be impossible to obtain favorable consid- eration of your bill without the ap- proval of the President.” In the Senate, Wagner, Democrat, of New Yerk, introduced a bill to carry out the second phase of the Roosevelt ! relief program—creation of & $500,000,- 000 fund for direct aid—and leaders {mmbel(i‘ll to attach it to the reforesta- Bond Proposal Due Soon. Before long the President is expected to submit a proj 1 for & bond issue to finance a public works program. Ad- ministration experts are now making a survey of available public work projects. The $500,000,000 relief measure was sponsored jointly by Senators Wagner, costigan, Democrat, Colorado, and La Follette, Republican, Wisconsin, who have been working on the subject for the President with Miss Frances Per- hl;l. 4 of I.:unr. [t provides for setting up a new re- lief administration under a Federal re- lief administrator Tesponsible to the President. The administrator would take over from the Reconstruction Pinance Cor- poration supervision of Federal relief funds and their allotment to the States, but the money would be raised by ad- ditional borrowing through the R. P. C, Every State would be entitled to re- celve {rom ut:: first lmmm an amount equal to one-third of public money by it and its sub- divisions the preceding three- month period. The remainder of the fund would be program whether some of them might be thrown died outy “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. stitute is “more acceptable to labor,” ! ; %% U. 5. HEARS BRITISH AND FRENCH VIEWS ON LONDON PARLEY Roosevelt Talks to Claudel and Stern as Hull Sees Lindsay Again. ECONOMIC QUESTIONS DISCUSSED BY CALLERS British Envoy Shuns Query on Debts—President Preparing to Receive Japanese Diplomat. By the Associated Press. Simultaneously, the English and French views on economics, which the Roosevelt administration considers is closely linked with European debts, were presented today to the President and his Secretary of State. While President Roosevelt was en- gaged in a discussion of the French at- titude with Ambassador Claudel and Jacques Stern, vice chairman of the Finance Committee of the French Chamber of Deputies, Secretary Hull was talking for a second time with Am- bassador Lindsay of Great Britain. After their talk with the President, Claudel said they had discussed the forthcoming World Economic Confer- ence and that the French favored hold- ing it as soon as possible. A little later, Secretary Hull issued a statement saying his conversation with Lindsay which lasted an hour and a half, was confined to topics contained in the program for the World Eco- nomic Conference. The statement said: “We have continued our preliminary and tentative discussions of the world economic situation, confining our dis- cussions to those topics contained in the agenda recently prepared by the preliminary committee in Geneva. “We feel gratified with the value of these talks in clarifying the views of the officials of the two countries. We expect to continue these discussions.” __The British An dor_declined to (Continued on Page 2, Column 4. BOTH SIDES ALERT AT Ol CONFERENCE Hostile Major and Small Companies Move to Protect Interests. By the Associated Press. Measures to protect their respective interests were taken today by both sides of the oil industry here to attend the Governors' petroleum regulation| to conference called by Secretary Ickes. ‘The major companies as well as the independent producers from various parts of the country held all-day meet- ings today to consider steps to be taken as the conference gets under full swing. Though no statement was made, Wamuum of some companies de- led what they termed their “plight” at today’s meeting because of fears, it was contended, of “complete chaos” in the oil business unless some kind of regulation is brought about in the near Veiled Threais There were even veiled threats of lift- ing the lid on the major companies' ofl properties and fighting the dents to a finish. lepenc Intent ugon rehabilitating the indus: try through a reduction of its 200,000- barrel daily surplus, the representatives of ofl-producing States were called into session at 2 p.m., by Secretary Ickes, acting for President Roosevelt. Over the gathering was somewhat of & tension, resulting from last night's stormy preliminary meeting of inde- pendent producers, in the course of “htlch_rwr of those attending walked out. Wirt G. Pranklin, Oklahoma, presi- dent of the Independent Petroleup As- sociation, today took exception to statements made by John B. Elliott of Los Angeles, who marched his Cali- fornia delegation qut of the meeting. “The public statement that the meeting was dominated by the major ofl companies comes strangely,” Frank- in said, “in view of the fact that the egijon was raised that there was very | fl‘t‘fle Tepresentation of the major com- panies while the smaller groups were | fuily represented.” Ickes Shuns Reference. In addressing the session, the Secre- tary of the Interior made no immediate reference to last night's happenings— telling his hearers that the industry can “right itself” only by strict limi- tation of output. In his statement sent to newspaper , Franklin, who presided at last night's meeting, also said: “No bolt and no discord occurred at the Sunday meeting of the representa- tives of State and national organiza- tions of the American petroleum in- dustry at the Mayflower ahen pro- posals for submission to the adminis- tration were discussed. John B. Elliott, representing the Independent Petroleum Association of California, and two com- panions, representing the same Cali- fornia group, withdrew from the meet- ing on the ground it was not and could not be properly constituted although this did not occur until after Mr. El- liott had frequently putlclg:ted in de- bate and had made a substitute mo- 16 organizations to 2, with two others not voting.” In addition to Elliott those who qult' last night's meeting were E. B. How- ard, W. M. Keck and Mr. Jones. Reintroduces Bill. While the conferees were meeti; with Secretary Ickes, Senator McG! Democrat, Kansas, reintroduced his bill of last session, providing for congres- (Continued on Page 2, Column 1) 2,500 Miners Resume Work. SCRANTON, Pa. March 27 (#).— "amcmm.mm 4 (UP) Means Associated Press. Saturday’s Circulation, 117,682, Slul!'yl‘ Circulation, 130,659. TWO CENTS. PRESIDENT STUDIES | REVISED FIGURES | IND. C. FUND BILL ICarries $5,500,000 Slash, Unconfirmed Report at Capitul Says. HOUSE EXPECTED TO GET MEASURE LATE TODAY Roosevelt Confers With Douglas on Reconciling Needs and Economy Goal. The revised District of Columbia 1934 budget bill was being studied by President Roosevelt this afternoon, pre- | paratory to submitting it to Congress. ‘While there was no confirmation from the Bureau of the Budget, it was re- ported at the Capitol that the bill car- ried a slash of $5,500,000 in addition to the cuts made by the bureau in the Commissioners’ original estimates. The bill was expected to reach the House late today. The President has been in frequent consultation with Lewis Douglas, director of the budget, regarding the framing of the new measure to meet the needs of the local | Government and at the same time com- ply with the administration’s aim for economy. If the bureau recommends a $5,500,~ 000 cut it would reduce the 1934 appro- priation to $33,239.400. The new cut would mean a serious curtailment in many municipal activi- tles, and in addition would probably lead to the piling up of a surplus of nearly $10,000,000 in idle District funds in the United States Treasury unless local taxes are reduced during the 1934 fiscl year. The Commissioners last Summer sub- |mitted to the Budget Bureau requests | for appropriations totaling $44,914,230. These were based on re-establishing a Federal contribution of $9.500,000—the same sum as that appropriated in the 1832 fiscal year. The Budget Bureau, however, based its figures on a Federal contribution of only $7,775,000, which was the actual 1933 contribution, and made other cuts which brought the budget total down to $39,743,270. Officials Predicted Surplus. The House d an appropriati bill which further reduced this total % $37,911,065, and the Senate passed an- other closely approximating the Bud- get Bureau's and totaling $39.- 938,611. The bill went into conference in the closing days of the past session, but Congress adjourned before an agreement could be reached. At the time the House bill was passed District officials estimated that If it became law, and tax rates remained unchanged, the result would be a Dis- trict surplus of $6,000,000 in the United States Treasury by the elose of the 1934 fiscal year. Lump Sum Not Revealed. ‘The size of the Federal contribution recommended by the bureau and other details of the make-up of the budget | were not revealed. The official document will be sent Congress either today or tomorrow, it was learned. Speaker Rainey said he was advised that on account of President Roose- velt's economy program, substantial changes are to be made in both the i District and jhe independent offices budgets, both of which failed to pass at_the Jast Congress. The estimates, he said, will call for reductions in the totals carried in the bills, rather than for cutting down of & number of small items scattered through each measure. [ — PLANES AND BOATS SEARCH FOR BODIES Two Men Believed Drowned After Upset Canoe Is Found in Bay. | 8Special Dispatch to The Star. ANNAPOLIS, Md., March 27.—Navy planes and five boat crews are today searching for the bodies of two men believed to have been drowned yester- day in White Hall Bay, inland to the Severn River and Chesapeake Bay. The men, Marian Faudree, 24, and Albert Knopp, 21, set out in a canoe late Saturday afternoon. They have rot been seen since although their canoe was found three-quarters of a mile from Holly Beach Farm by Joseph Berbez. The paddles were in the craft. Faudree, who has a wife and two infant children, is assistant engineer on the yacht of Sylvester W. Labrot, prominent financier and race horse man of St. Margarets. Knopp was as- zimmnlt to the captain of the Labrot Planes were unsuccessful yesterday, but the Naval Academy sent others mit today while the bay was dragged for the bodies. Both men were wearing heavy Winter clothing when last seen. e {CUMMINGS GRANTS DELAY IN OWEN YOUNG’S CASE Allows Two Weeks for Financier to Quit General Elec- tric or R. C. A. By the Associated Press. Attorney General Cummings agreed today to & two weeks' postponement of the court order that Owen D. Young withdrew from the directorate of the General Electric Co. or of the Radio Corporation. ‘Under the order for dissolution of the combine between these organizations, Board of General Electric was required to resign from one of the directorates, but was given until April 21 to effect the reorganization necessary. He petitioned for the postponement and Mr. Cummings said he had agreed to give a reasonable time for the negotiations. Attorney General sald, however, he could not see his way clear to agree to an indefinite stay of the court order regarding Mr. Young. Mob Attacks Police in India. strators in the Mllnlhflh- e Saipaigurt ditrics ’