Evening Star Newspaper, March 29, 1933, Page 1

WEATHER. (U. 8. Weather Bureay Forecast.) ing temperature; Friday sh warmer. Temperatures—Highest, 55, at 1:30 p.m. yesterday; lowest, 33, at 7:00 am. today, Full report on page 3. Closing N. Y. Markets, Pages11,12&13 | < No, 32,474, post office, Wa Entered as second class matter shington, D. C. ARRVAL OF DAVIS | WASHINGTON, D. C, WEDNESDAY, MARCH 29, 1933—THIRTY-FOUR PAGES. , #¥# ARBITRARY BUDGET SLASH WOULD HOARD 3 SURPLUS IN LONDON REVVES p. . FUNDS IN TREASURY fl EBIS I]IS[:USS"]N lNational Situation Unaffected by Amount of Municipal Economies—Reduction of Local Tax Burden Essential. Important Action Toward Set- tiement Expected Through Special U. S. Envoy. PROGRAM IS TAKEN UP AT CABINET MEETING Reports From Abroad That Mem- bers of Commission Have Been Named Are Denied. By the Assoclated Press. LONDON, March 29.—The question of & final settlement of the war debt owed the United States again became the chief business before the British government today. ‘The subject, was up for discussion at today's cabinet meeting even before the arrival today of Norman H. Davis, who has been named special Ambassador for the United States in Europe by Presi- dent Roosevelt. Important action was expected in parliamentary circles to result from the discussions between Davis and govern- ment chiefs. The latter seek a settle- ment that wijl obviate the necessity of reviving German reparations, now scaled down 90 per cent in the Lau- sanne agreement, which is conditional upon a similar adjustment with the United States on war debts. Reports Denied. Reports emanating from abroad that two cabinet members have been ap- pointed to handle the debt question were denied in authoritative quarters. Before the debt question was placed in abeyance by the banking crisis in Amer- ica, Premier Ramsay MacDonald, Chan- cellor of the Exchequer Neville Cham- berlain. and Walter Runciman, president | of the Board of Trade, were reported as decided upon as tentative members of a debt commission to the United States. Latest reports from Ambassador Sir Ronald Lindsay, who has been carrying on preliminary conversations with President Roosevelt and Secretary of State Hull, suggested some time in April would be the earliest a debt commis- sion could open a conference in Wash- ington. Th binet was turning again to the war debt problem after several weeks in which disarmament and other con- tinental problems. engrossed its atten- tion. Until these matters came up, it was understood Premier MacDonald was ready to go to Washington any time Mr. Roosevelt considered his pres- ence would be useful. Plan Economic Parley. Plans also were being carried forward here for the World Economic Conference, at which MacDonald is to preside. The new Geological Building, in South Kens- ington, has been tentatively set aside for the sessions. The cabinet yesteraay considered plans for hastening the con- ference. hamberlain recently told Parliament he did not see any reason why it could not open in two or three months. This matter is also expected to be dis- cussed with Davis, since he is a mem- ber of the Conference Organization Committee and also has directed con- siderable preliminary work. MacDonald has arranged to have a conference with Davis tomorrow morning. GIBSON TO MEET DAVIS. Ambassador to Belgium Will Accom- pany Envoy to Continent. With the arrival of Norman H. Davis in London, the United States will have a new point of contact with Europe on the whole range of great international problems including disarmament, war debts and economic reconstruction. Under instructions from the State Department, Hugh Gibson, American Ambassador to Belgium and acting chief of the American disarmament delega- tion at Geneva, will meet Davis at Lon- don to accompany him to the continent and inform him on developments since he left the United States. Not only is Davis chairman of the American disarmament delegation with the rank of Ambassador, but he also is a member of the Organizing Commit- tee for the World Economic Conference in London and is thoroughly acquainted with the administration’s attitude on ‘war debts. If any specific instructions contem- ghting important developments in this eld have been sent him from Washing- ton, it has not been revealed at the State Department. Secretary Hull himself has been handling economic and debt negotiations directly with Am- bassador Lindsay of Great Britain here. DEBATE OPPOSED. Paris Seeking to Have Washington Ne- gotiations Unhampered. PARIS, March 29 (#).—The govern- ment is seeking to delay parliamentary debate on the $19,000,000 debt install- ment due last December so nego- tiations with Washington may proceed unhampered. Foreign Minister Paul-Boncour is ex- pected to ask the Foreign Affiairs Com- mittee of the Chamber of Deputies to postpone discussion of the problem for several weeks inasmuch as the govern- ment believes debate would be inop- portune under the present circum- stances. Edouard Herriot, chairman of the committee, is expected to accede. ‘The government will take no posi- tion on the resolution recently intro- duced by Deputy Rene Richard calling for the payment of the $19,000,000 in interest defaulted in December, M. Paul-Boncour told the cabinet. He will confine himself to outlining pending negotiations between France and America when he appears before the Foreign Affairs Committee of the Chamber of Deputies this afternoon. He denied a report that the govern- ment intended to introduce the debt measure into Parliament. The Foreign Minister pointed out that debts would be debated fully in Parlia- ment later. —_—— | Former Judge Dies on Train. ANNAH, Ga., March 20 (P)— J-::Ag Robert Pottle, State Senator and Yormer judge of the State Court of Appeals, died today of heart disease on a train en route from his home, in Albany, Ga., to Savannah. He was 59 years e ‘Radio Programs on Page C-3 Local taxpayers may by this time have philosophically reconciled them- of the curious anomalies and illogical inconsistencies relating to those pro- selves to the fact that the size of their | posals. municipal budget—later to determine the size of their tax bills—as well as the proposed manner of expending their tax money is always kept a dark and mysterious secret until the annual estimates are sent from the Bureau of the Budget to the House. There is no rhyme or reason for such secrecy, unless it be that the Budget Bureau believes that ignorance, for the local taxpayer, is bliss. Now that the cloak of secrecy has been removed, local taxpayers will find much to interest them in what the Bureau of the Budget proposes to do with their tax money, but will experi- ence difficulty in understanding some BOYCOTT OF JEWS GETS UNDER WAY AHEAD OF ORDERS City of Berlin Limits Public Purchases to Nationalist Merchants. By the Assoclated Press. BERLIN, March 29.—Germany's boy- cott of Jews, although it does not be- gin officially until the morning of April 1, already has begun to take form. ‘This morning the Berlin city gov- ernment ordered that from April 1 on all supplies for municipal projects and offices be purchased only from Nation- alist merchants. Forty-eight Jewish shops, picketed by National Socialist storm troopers, were quickly closed by their owners, and & number of other shops, run by non- Jews on money borrowed from Jews, also were picketed. Jewish professors were prevented from entering the class- room buildings at the University of Westphalia. Hugo Sinzheimer, a member of the university faculty, and three Jewish attorneys were placed under “protec- tive arrest.” Prof. Sinzheimer was a reporter for the War Guilt Commission, and is a member of the German Peace Society. Retaliation for Stories. ‘The National Socialist party head- quarters, which issued its appeal for a general Jewish boycott yesterday, de- scribes the campaign as in retaliation for erroneous reports of Jewish perse- cution published abroad. The Hitler government was silent as the dominant National Socialist party went ahead organizing committees throughout the country to stop all Jew- ish business and professional activity by Saturday morning. Even school attendance by Jewish children is to be reduced. Two Berlin newspapers not domi- nated by the Nazi party warned the government of the possible effects. A prominent Jewish paper envisaged a re- vival of the Middle Age ghettos or the isolating of the Jews in separate villages such as those of gypsies throughout Europe. It was impossible to predict whether the government would intervene. Boy- cotts already in effect in several sec- tions of the country were being tolerated by _the government. Its immediate attention in the mean- while was taken up by the strained re- lations in its own ranks caused by the reported counter revolt movement in Brunswick involving the Steel Helmet (war veterans) organization. Only 150 men remained in custody there after the release last night of 1,200 who had been held prisoners 24 hours in the Steel Helmet headquarters. ‘Those still in custody were described " (Continued on Page 2, Column 1.) KILLS TWD DAUGHTERS Barber Gravely Wounds Amnother and Ends Own Life. OPELOUSAS, La., March 29 (®).— Herbert Richard, barber of Sunset, La., early today shot his three young daugh- | pre ters and himself while his wife was r:ilklng cows at their farm home near ere, Running to the house at the sound of the shots, Mrs. Richard found her husband and two of the children, Mer- lic, 11, and Rosalie, 6, dead. The third child, Gerlic, 13, was gravely wounded. Parish officers were unable to give any reason for Richard’s action. MORATORIUM DECLARED BOGOTA, Colombia, March 29 (#).— The government decreed a moratorium on the external debt today and sup- pressed all departmental and municipal subsidies, effecting & saving of more than 10,000,000 pesos, most of which will be diverted to the national defense. The external debt on June 30, 1932, was 210,226,532 pesos, approximately $180,795,000. . Discussion of economy in Washing- ton today is in relation to Federal economy., The President’s proposed 25 per cent cuts from some Federal ex- penditures—all of them cannot be cut as much as that—apply to national expenditures, with the purpose of so reducing National Government costs that the national budget may be bal- anced and the American taxpayers re- lleved of a part of the tax burden which is becoming unbearable. But, except for the lump sum—which should in equity be construed as a part of the Pederal Government's fixed ob- ligations to Washington—all of the (Continued on Page 3, Column 2.) GREEN TO OPPOSE FOREST JOBS BILL DESPITE. CHANGES Connery Tells House That Labor Leader Has With- drawn His Approval. By the Associated Press. ‘The House was told today that Wil- liam Green, president of the American Federation of Labor, had changed his mind and was now opposed to President Roosevelt's forest conservation measure in spite of the changes made by the Senate. Chairman Connery of the House Labor Committee, a leading opponent of the bill on the ground that it would allow too low wage scales, sald he was authorized to announce Green's oppo- sition. - Green wrote a letter a few days ago saying that in view of the Senate changes he felt it best that the bill be accepted by labor. Connery led the opposition debate as the House pushed toward a vote which leaders predicted would mean passage before nightfall. Representative Beedy, Republican, of Maine, jolned him in opposition. Copies Expedited. Representative Byrns of Tennessee, the Democratic leader, said the meas- ure would put 250,000 men to work and that it was designed to provide relief, not jobs. ‘There was a three-hour time limit on speech-making as the House took up the forest conservation measure. There also was an agreement that no voting would be started until copies of the bill as passed yesterday by the Senate were available, but the printing of these was expedited to have them in_the hands of members before the debate ended. Speed was a main objective, sponsors contending the bill would put 250,000 men to work at reforestation, soil erosion, flood control and other jobs within a short time. After his talk with President Roosevelt, Byrns told newspaper men the Execu- tive “'has no objection to Senate amend- ments” to the bill. g ‘Will Be Passed “As Is.” “Consequently,” Byrns added, “unless there is further word from the White House later in the day, we will pass ;l;::mb,!_ll as is before adjourning to- It was made clear in other quarters that the President hopes to Tet the first of the unemployer enrolled in his forest conservation program within two weeks after the legislation is enact- ‘ed. He wants to get a big start before Summer begins. The President will rely on the Labor Department to enroll the workers, who probably will be put in camps for several days for outfitting and medical treatment. He will rely on the Army for transport the men. As far as the actual work is concerned, existing agencies of the Agriculture and Interior Departments probably will be used for administration. Some one in the Federal Government will be put in charge of the whole ogram. At the same time, presidential sanc- tion was sought before the Senate went ahead with the second of Mr. Roosevelt's broad relief program—a bill (Continued on Page 2, Column 6.) FORD STRIKERS ACCEPT NEW WAGE AGREEMENT By the Assoclated Press. DAGENHAM, England, March 20— A three-day strike over wages at the Ford Motor Co. plant was settled this afternoon when representatives of the strikers agreed to accept a new mini- mum wage rate. The strike affected 7,000 men. Work probably will be resumed to- morrow. The new pay scale its an_increase over that to wl the workers objected. DUCKS TAKE TO AVIATION FIELD, PUTTING END TO ALL SPEED TESTS Air Corps Officers, Fearing Accidents, Hold Up Planes Until Birds Leave. By the Associated Press. DAYTON, March 29.—Ducks, some 3,000 strong, taking a liking in their flight north, to the puddles of water and marshes at Patterson Aviation Fleld, have temporarily closed this United States Air Corps speed course. Military planes are put througl tests at Patterson Field, one Fm \ which is to fly at a low altitude at high Various means have been tried to frighten the ducks away but all have striking might cause an acciden! officers have ordered all Because a of the birds Alr Corps speed tests deferred until the ducks of | sec ot to push od.- WITH SUNDAY MORNING XDITION FAVORABLE REPORT ON D. C. BEER BILL IS MADE IN SENATE Committee Approves 3.2 Bev- erages Here by Vote of Zto 2. MEASURE AS ADOPTED BY HOUSE REWRITTEN Last-Minute Change Prevents Issuing Licenses to Restau- rants Newly Established. The Senate District Committee or- dered a favorable report today on the bill to authorize manufacture and sale of beer and wine of 3.2 per cent alco- holic content in the District. The Senate had .recessed, however, before the favorable report on the beer Dbill could be filed. The report, there- fore, will not be presented until to- morrow and cannot be taken up until Friday, unless unanimous consent can be obtained. Senator Tydings, Democrat, of Mary- land, said the bill would be taken up for consideration as soon as the Senate legislative program will permit. Although the bill follows the same basic principle of the measure as passed by the House last Thursday, its text has been completely rewritten with a view to eliminating inconsistencies and to define more clearly the restrictions to be thrown around the sale of these beverages by the Commissioners. Last-Minute Changes. One of the last-minute changes be- fore the bill was approved in the Sen- ate Committee would prevent the is- suance of a permit to sell beer to any restaurant, which has not been estab- lished and doing business for at least six months prior to the filing of the application for the license. Another late change was made to enahble the Commissioners to consider applications and to issue licenses prior to April 7, if the bill becomes lJaw before that, date, although the licenses would not take effect to permit the sale of beer before April 7. ) 7-to-2 Vote. ‘The bill was reported from tte Sen- ate Committee by a vote of 7-2. Those recorded in favor of the measure xere Senators Tydings, Copeland of New York, Lewis of Illinois, Carey of Wyo- ming, Austin cf Vermont, Couzens of Michigan and Gore of Oklahoma. Those opposed were Senators Glass of Virginia aud Capper of Kansas, Chairman King was present, but was recorded as not voting. Thres other members, Senators Kean of New Jer- sey, Davis of Pennsylvania, and Bank- head of Alabama, were absent when the committee was being polled. Wine Differently Stated. The Senate bill definitely includes Wwine of the same alcoholic content as the beer, namely 3.2 per cent by weight. ‘The House bill, after listing beer, ale, lager beer and porter, used the general :rm, “other brewed or fermented bev- ges."” The Commissioners could issue li- censes to individuals, partnerships and incorporated clubs, but not to unin- corporated associations. The Senate Comnmittee late yesterday followed the advice of the Commissioners by strik- ing from this section the authority to employ additional personnel to enforce the proposed law, and to expend not more than $25,000 of the revenue to be collected from beer for enforcement. The city heads advised the" committee existing personnel could handle the i- censing regulations. Four Types of Licenses. The House bill provided for three kinds of licenses, “on ‘'sale,” “off sale” and “brewers.” The Senate bill adds a fourth kind of license to be issued to_wholesale distributors. Under the Senate bill, an “on sale” license would be issued “only for bona fide restaurants or hotels, or for in- corporated clubs with annual dues of at least $6. Such licenses shall permit the licensee to sell beverages for con- sumption on the premises designated in the license at tables, or in vehicles parked entirely upon the premjses designated in the license, or, in the case of hotels or clubs, in the rooms of guests or members; but (except in the case of hotels and clubs) no bev- erage shall be sold or served under any such license in any room not used primarily for the serving and consump- tion of food.” Senator Tydings explained, in re- sponse to questions by Senator Capper, Republican, of Kansas, that the fore- going definition would prevent drug stores from serving beer, because it would have to be served in rooms used primarily for the serving of food. Outdoor Sale Opposed. ‘The committee adopted the second suggestion of the Commissioners by striking from the “on-sale” definition the authority to allow cafes to place tables on the sidewalks where there is a wide space between the building (Continued on Page 2, Column 7.) — e — MRS. ROOSEVELT RETURNS TO CAPITAL BY AIRPLANE First Lady Is Accompanied to ‘Washington by Miss Marion Dickerman. Mrs. Franklin D. Roosevelt arrived from New York by airplane shortly be- fore noon today, accompanied by Miss Marion Dickerman, principal of Tod- hunter School. She had spent the last five days in New York Hyde Park. ‘The weather was perfect and the President’s wife did not have any of the e xpertence onher Sgnt. from she lenced on ‘Washington to Newark last m‘w Mrs. Roosevelt said she would return to New York for another brief visit on April 10, —_— SEEK FLYERS IN JUNGLE Army Planes Continue Search for Two Americans. MANAGUA, Nicaragua, March 29 (). —Army Flowers of t, | of New Orleans, W] daj on a flight from hers to Puz:tou(?nbem. They reported today they had found no lnz ROOSEVELT ORDERS 16 PER CENT SLASH New Cut, Effective Saturday, Will Supplant Hoover Payless Furlough. Making his first use of the broad Powers given him in the recent economy act, President Roosevelt has issued an executive order imposing a flat 15 per cent cut on all Federal employes, both civil and military. ‘The order, issued last night, becomes effective Saturday, and will be ap- plicable to pay checks issued April 15. It actually cuts only an additional 623 per cent from gach employe’s pay, how- ever, since it does away with the pay- less furlough plan inaugurated in the Hoover administration. That provided for a reduction of 83 per cent, since each employe was compelled to take 30 days off a year without pay. Last night's order covers only the three-month period between April 1 and June 30, the end of the fiscal year, at which time another order will be issued by the President. Prior to is- suing the second order, & new de- termination in the decline in the cost of living since 1928 must be made, but it is presumed that the second order will extend the 15 per cent cut. From then on, & new determination regard- ing living costs will be made at the end of each six months. Huge Saving Foreseen. ‘This pay slash, which will affect di- rectly employes, high and low, in- cluding members of and en- listed men in the armed services, but not constitutional judges or the Presi- dent, is estimated to bring about a sav- ing of about $30,000,000 between April 1 and June 30, and about $120,000,000 when considered on an annual basis. Civil service experts estimated that about 560,000 Government employes would be touched directly by the refuc- tion. The President’s_order did not come as a surprise. It had been known that 1t was impending and that just as soon a8 the study of the comparative living (Continued on Page 5, Column 2.) DEPOSED WAR LORD: SHANGHAI EXILE Attempts on Life Cause Chang Hsiao-Liang to Buy Armored Car for Protection. By the Associated Press. SHANGHAI, March 29.—As a result of the recent attempt on his life, Mar- shal Chang Hsiao-Liang, the deposed North China war lord, is now living in seclusion in Shanghal. He has pur- chased an armored, high-powered Amefle:n“ l:nofim;n;‘ for occasional movemen! ereabouts. E.ln home was bombed March 20, cal some damage. Mu:ml Chang, who fled from his former headquarters at Peiping March 13, 18 considered a virtual prisoner here with Chinese gangsters allegedly de- manding a hugf! ransom for supposedly ‘The yout! ex-leader of Chinese armies opposing the Japanese, who was widely criticized in China for failing to halt the steady advance of the invaders in the past two years in the north, seldom leaves the French concession in | min; the International Settlement here. His refuge is surrounded by dozens of armed guards, preventing the entrance — e SEARCH FOR STRANGLER IN CITY LODGING HOUSE Tense Hunt for Man Who Garrotted Six-Year-Old Child Awakens 2,000 Homeless Men. old 1l upon the slumbers of 2,000 homeless men in the Municipal Lodging House before dawn gm’mymmm.v- neck sweater was seen fleeing from the Ohe Foening Sfar. Beer Mug Mailed President Cause Of “Bomb” Scare By the Associated Press. WILMINGTON, Del, March 20.—A heavy, carefully-wrapped package addressed to President Roosevelt caused a bomb scare in the Wilmington post office. Handling the bundle carefully, an employe carried it to Post- master Abrahams, who, seeing his duty, opened it—and removed a one-pint copper beer mug. It was repacked and forwarded to Wash- ington. WADOO PROPOSES STRONG FARM BANK Submits Mortgage Plan as Senators Discuss Roose- velt Relief Bill. By the Associated Press. Help for the farmer in meeting his mortgages at lower interest was pro- posed in a measure introduced today by Senator McAdoo, Democrat, of Cali- fornia, while the Senate Agriculture Committee wrestled with the adminis- tration’s sweeping farm relief bill. McAdoo's measure, calling for crea- tion of a strong Federal farm mortgage bank and with authority to base it on consolidated agricultural credit agencies, was offered by him “to assist Mr. Roose- velt in formulating a farm mortgage program. Holds Executive Session. ‘The committee, meanwhile, in an ef- fort to get the administration farm bill “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 printeg. (P) Means Associated 4000 DENIED J0BS IND. C. BUDGET CUT |All Capital Improvements, Including New Schools, Stricken Out. Action of the Budget Bureau in elim- | inating all capital improvements in the 1934 District estimates will deny work | to approximately 4.000 men in the com- ing fiscal year, District officlals revealed today as the House Subcommittee on Deficiencies began hearings on the re- vised budget. Engineering department officials pointed out that the projects removed from the estimates would have cost $4,- 000,000. These projects included pra- posed new school buildings, bridge con- struction and highway improvements which it was declared would have pro- ‘vided work for regular District employes as well as 4,000 men who would have been employed by contractors. Discussion Secret. The discussion at the initial hearing was guarded with utmost secrecy, but it was learned that the subcommittees went over the budget estimates with the Commissioners in a general way. In several instances, it was said, the Com- missioners explained the effects of the drastic cuts on certain District items. The hearing lasted from 10:30 until nearly 1 o'clock. Another executive conference began at 2 o'clock this aft- ernoon, at which it was said the sub- committees would decide whether to call additional witnesses. Only the District Commisisoners and Maj. Daniel J. Donovan, auditor and rud.gec officer, were invited to the hear- ngs. ‘The hearings, however, were regarded as more or less perfunctory, and were likened to an inquest, with the Com- missioners’ sitting like a coroner’s jury over the corpse of what was a care- fully planned and balanced budget when it left the District Building last to the Senate floor by Friday or Satur- | Fall. day, was in executive session discussing the measure, which would give extensive powers to Secretary Wallace to restore agriculture. ‘Two efforts to limit the commodities to which the bill would apply were re- jected in committee. A motlon of Senator Kendrick of Wyoming, the assistant Democratic leader, to eliminate cattle and sheep was beaten, 9 to 5, while & mcve by Senator McNary, of Oregon, the Repub- lican leader, to limit it to wheat and cottcn was downed, 13 to 4. Members disagreed as to whether these votes constituted a test of strength for the administration bill. Hearings were concluded yesterday, with nearly a dozen witnesses testify- ing, mainly in opposition to giving Sec- retary Wallace unprecedented author- ity for making a try at bringing the farmers’ purchasing power back to pre- war standards. W. M. Reid of New Orleans, secretary (Continued on Page 2. Column 8.) SENATE APPROVES BILL ENDING LIQUOR LIMIT Measure to.Allow Physicians to Prescribe Freely Is Sent to House. By the Associated Press. A bill to remove limitations on the amount of or that may be prescribed by physicians for medicinal purpl::d was passed today by the ‘The bill was passed without debate or a record vote and sent to the House. It was before the Senate less than 10 utes. Senator King, Democrat, of Utah called up the measure sponsored by Senator Copeland, Democrat, of New ‘York, a physician. Cannon and Blanton Attend. Maj. John C. Gotwals, engineer com- missioner, was the first to arrive for the hearing. He was followed shortly after- ward by Commissioners Reichelderfer and Crosby, accompanied by Maj. Don- ovan. Chairman Cannon of the House Subcommittee on Appropriations, and Representative Blanton, Democrat, of ‘Texas, who were members of the group that framed the original 1934 bill which died in the last Congress, attended the hearing in an advisory capacity at the request of Representative Buchanan, ;}lflmm of the Appropriations Com- ttee. WORLD COURT ACTION POSTPONED FOR WEEK Senate Foreign Relations Commit- tee Wants Full Attendance to Weigh Question. By the Assoclated Press. The Senate Foreign Relations Com- mittee today discussed the long-pend- ing protocol of American adherence to the World Court, but postponed action until next week. Chairman Pittman explained after the executive session that, due to the fact that all members were not present, it was deoided to put off until next Wednesday action on a motion to fa- vorably report the protocol. President Roosevelt is understood to favor Senate disposition of the ques- tion, although Democratic leaders say it will not be pressed as long as the emergency rellef program is still un- acted upon. PRESIDENT’S MESSAGE Federal Supervision of Traffic in Investment Securities Recommended to Congress by the President. President Roosevelt's message to Congress today on investment securi- ties follows: To ‘the Cangress: I recommend to the Congress legis- lation for Federal supervision of traffic in investment securities in interstate commerce. In spite of many State statutes, the public in the past has sustained severe losses through practices neither ethical nor honest on the part of many persons and corpora- tions selling securities, Of course, the Federal Government & action which might be construed as approving or guaranteeing that newly issued securities are sound in the sense that their value will be main- tained, or that the properties which they represent will earn profit. ‘There is, however, an obligation upon us to insist that every issue of new securities to be sold in inter- state commerce shall be accompanied by full publicity and information, and that no essentially important element attending the issue shall be concealed from the buying public. ‘This proposal adds to the ancient i (Continued on Page 3, Column 6. Yesterday’s Circulation, 122,605 TWO CENTS. FEDERAL CONTROL OF SECURITIES 10 PROTECT INVESTORS ASKED N MESSAGE Roosevelt Says Legislation Is Proposed to Guard Pub- lic Without Interference to Business. Press. STEP IS FIRST IN PROGRAM PLANNED BY PRESIDENT Chief Executive Takes Attitude of “Let the Seller Beware” and to End “Unethical and Unsafe Practices” on Stock and Com] modity Exchanges. BY G. GOULD LINCOLN. President Roosevelt recom- mended to Congress today the enactment of a law for the Fed- eral supervision of “traffic in in- vestment securitles in interstate commerce.” In a special message, brief and to the point as have been his other communications to Con- gress, the President declared “the purpose of the legislation I sug- gest is to protect the public with the least possible interference to honest business.” He added that this is only one step in his program of protecting investors and depositors. The President promised that it would be followed by recommendations for legislation looking to the bet- ter supervision of the purchase and sale of all properties on ex- changes, stock and commodity. He added that he would also rec- ommend legislation to correct “unethical and unsafe practices” on the part of officers and di- rectors of banks and other corpo- rations. Serve as Trustees. “What we seek,” sald the President in conclusion, “is & return to a clearer understanding of the ancieng truth that those who manage banks, corpo- rations and other agencies handling or using the people’s money are trustees acting for others.” Accompanying the President's mes= sage was a bill dealing with the pro- posed Government supervision of the issuance of securities. The measure, which was immediately introduced in ::oth House and Senate, is 35 pages ong. It follows the lines of laws that have been in effect for a number of years in Great Britain and some of the other foreign countries. Under its operation the public would be protected through information which must be filed with the Federal Trade Commission regard- ing the corporations before the securi- ties can be offered for sale in interstate commerce. Otherwise, the issuer of the securities would subject himself to pen- alties under the law. ‘The bill requires that all advertise- ments of sale of such securities in in- terstate commerce carry definite in- formative facts which would put the purchaser on notice. Burden Put on Seller. It also changes the ancient doctrine of caveat emptor to “let the seller be- ‘ware” and puts the burden on the seller rather than on the buyer. The belief was expressed that enact- ment of such legislation would give great impetus to honest dealing in se- curities and bring back public confi- dence in the securities and the sale thereof. The legislation which the President will propose to regulate and supervise stock and grain exchanges will be sent to Congress within the next two weeks, it is understood. Samuel Untermyer of New York, who handled the “money trust” investigation conducted by the House in 1921, has been requested by the President to ald in drafting this stock exchange legislation. Mr. Unter- myer was in Washington.last Saturday and had a conference with President Roosevelt at that time. He is expected to return, however, for further confer- ences. As soon as the President’s message had been read in the Senate today Sen- ator Robinson of Arkansas, the Demo- cratic leader, introduced the securities bill and had it referred to the Commit- tee on Judiciary. Would Separate Banks. ‘The President in his message made reference to legislation which he would recommend to improve, strengthen and reform the banking system. It is ex- pected that such legislation would com= Kl banks of deposit to conduct bank- g business and banking business alone. It will make impossible the pres- ent system of security affiliates which a number of the large banks now have. Commercial banking also would be separated from trust banking and it is expected that the proposed legislation would bring private banking firms within the scope of regulations that apply to public institutions. ‘The Congress and the country have been aroused by the revelations before the Senate Banking Committee, which is conducting an investigation into the cperation of the stock exchange. Investigations also into the manner in which foreign securities have been sold to the American public, through big banking houses in this country hava been a shock to the investing public. ‘The Roosevelt program is to make impossible the unloading of such secur= ities on the investing public without the fullest and the correctest informa- tion being-supplied. It is expected that Congress will give this legislation early consideration and that the President’s securities bill will be passed with as little delay as possible. ‘The securities bill was introduced in the House by Representative Rayburn, chairman of the Interstate Commerce Committee, and was referred to that committee. Rayburn has called a meet- ing of his committee for Friday morn< ing, when hearings will be held, 400 Pupils Escape Fire Tragedy. SALISBURY, Md., March 29 (#).— Beli here today just s few minutes bef the celling caved in, 3