Evening Star Newspaper, April 13, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight and tomorrow, with slowly rising temperature; light frost in exposed places tonight; gentle to moderate north The only evening paper in 'Washington with the Associated Press news and northeast Wi Highest, 58, at noon 6 a.m. today. Closing N. Y. Markets, Pages 14 and 15 inds. Full rej on page 9. ‘Temperatures— y; lowest, 35, at Che b WITH SUNDAY MORNING BDITION ening Sfar. service. Yesterday’s Circulation, 122,023 o No. 32,489: post office, Entered as second class matter Washington, D C WASHINGTON, D. C., THURSDAY, APRIL 13, 1933—FORTY-EIGHT PAGES. Hkokk (#) Means Associated TWO CENTS. Press. BRIISH ENGINEERS CONFIRM AND DENY SABOTACE CHARGES M’Donald Acknowledges Spy; Guilt as Thornton Refutes Accusations. CONFESSION BLAMED ON METHODS OF OGPU| Wrecking of Machinery Supplying | Power to Munitions Plants Admitted by Briton. By the Associated Press. i MOSCOW, April 13.—Two British | engineers accused of espionage and | sabotage faced each other today across the court room, one turning state’s evidence and the other denying every | charge. ‘Willlam H. MacDonald, the only one of six accused employes of the Metro- politan-Vickers Electrical Co. to plead guilty when the trial began yesterday, amplified previous testimony to the effect that he acted under the instruc- tions of L. C. Thornten, another de- fendant, in gathering military and economic information which subse- | quently was sent to England. H As today’s session began MacDonald caused something of a sensation by de- claring he had made incriminating statements at the time of his arrest because of the methods of the Russian secret police. Acknowledges His Guilt. He said they had shown him a state- ment which they said had been made by Thornton, in which Thornton ad- mitted having used MacDonald to col- lect information. For a moment it looked as though he ‘was going to repudiate his original con- fession, but later he acknowledged his guilt of all the charges against him. Thornton denied “confessions” made at the time of his arrest, declaring he had been frightened and thought he would have a chance to correct his statements later. He stuck to that story despite the scornful laughter of the audience, in which the prosecutor and the judges joined. The audience held its breath, for it expected Thornton to tell what he knows about how the Ogpu works, but Thornton ignored the question. Later he admitted his original statement was made without duress, but he still in- sisted it was not true. MacDorald, lame since childhood, told the court he had collected mili- tary, 1 and politial informa- tion at Leningrad and at Zlatoust on ‘Thornton’s instruction. He also said he had wrecked machinery at Zlatoust, ‘where there is an fmportant power plant, in an effort to cripple factories making war materials. ‘Thornton Questioned. Every time MacDonald made a state- ment of this kind the prosecutor turned to Thornton. “Do you admit that?” he woud ask. Each time Thornton’s answer was no. ‘The only information he ever collected or ordered collected, he said, was in- formation concerning the operation of machinery installed at Russian plants by his company. He did admit, however, that he had paid 3,000 rubles for “current expenses” to a Russian named Dolgov, who was identified as an agent provocateur. “There are no spies in our company and we do no spy’s work,” said Thorn- ton. But MacDonald said: “I systemat- {cally collected information and I sup- posed other engineers did the same.” Another Russian co-defendant of the six British engineers was expected to testify teday that he was a spy in their employ. This witness, V. A. Sokoloff, was as- | sistant director at the Zlatoust Elctrical | Station in the Ural Mountains under the stoop-shouldered Vassili Gusev, whose similar testimony yestecrday was partially confirmed by MacDonald. British Were Shocked. ‘MacDonald'’s statements incriminating himself came as 2 shock to the British diplomatic representatives, headed by | ‘William Strang, charge d'affaires of the | British embassy, who are keeping a| Cclose watch on the proceedings. The | Ambassador, Sir Esmond Ovey. has been | recalled to London in what may be the | first step in complete severance of dip- | lomatic relations. (British officials in | London said they were not surprised by MacDonald’s statements in view of re- ports they meceived of his treatment in | prison.) \ There were indications the Soviet| authorities regarded MacDonzld as the | main culprit among the six Brit ! He was the only one held in jail with- out bail during the entire month since the arrest of the suspzcts. The British JAPAN CONTINUES | DRIVE SOUTHWARD i First Lady Slides Into Mud as Horse Stumbles in Park Escapes Injury in Early Morning Accident Near Lincoln Memori-l. When her horse stumbled in_West Potomac Park early today, Mrs. Roose- velt slid off into a mud puddle, but escaped injury. The incident occurred during a ride with two friends before breakfast, on the bridle path between the Lincoln Memorial and the polo grounds. Mrs. Roosevelt treated it very lightly | when she returned to the White House. “I fell off very gracefully right into the mud.” was the way she described it. Mrs. Roosevelt was riding “Dot,” her favorite mount. She was accompanied by Mrs. Henry Morgenthau, a_personal friend and Miss Marguerite Le Hand, her morning canter. They had left the Riding and Hunt Club on Twenty- second street, where Mrs. Roosevelt keeps her riding horses, shortly after 7:30 o'clock and were enjoying the bracing morning air, galloping along the bridle path, when “Dot” lost her footing on the slippery ground, and before she could regain her stride had | gone down on one knee, thereby causing | " (Continued on Page 2, Column 1.) GOERING PRAISES MUSSOLIN PLAN Says |l Duce’s Proposal Is Only One That Will Give Europe Peace. By the Associated Press ROME, April 13.—The Mussolini four-power peace pact, Capt. Hermann Goering, minister without portfolio in the German cabinet, told newspaper men this morning, “is the only one which can give Europe necessary peace for several decades.” He said the pact had been completely accepted in Germany and he hoped “it would not be modified by attempts of other powers, and that the negotiations would return to Il Duce’s primitive idea, which should be fu'filled.” He declared that Chancellor Hitler already had expressed to the Italian premier his own appreciation of “this courageous and genial act.” Capt. Goering admitted that his visit to Rome was official, but said it con- cerned an intensification of aerial com- munication between Italy and Germany and also his desire to extend an in- vitation to Gen. Italo Balbo, Italian air minister, to visit Berlin after returning from a group flight to Chicago, which he will head. He said Gen. Balbo had accepted. (Gen. Balbo will head a flight of 20 Ttalian airplanes 'to the Century of Progress Exposition in Chicago.) He voiced “an affinity in thought and sentiment existing between Fascism and national Socialism” and said “Chan- cellor Hitler and I advocate cordial Ttalo-German collaboration, since be- tween the two countries exist no dif- ferences worth mentioning.” Capt. Goering expressed satisfaction “for having heard Il Duce say that Italy and Germany have the same friends and the same enemies,” and declared that the revolution in Ger- many could not have been accomplished had not the Fascist example existed. He affirmed that Germany is no peril to any nation. GERMAN-VATICAN PACT SEEN. Pope Administers Communion to Von Papen and Dollfuss. VATICAN CITY, April 13 ().—Pope Pius XI personally administered com- munion to Franz von Papen, vice chan- cellor of Germany, and to Chancellor Engelbert Dollfuss of Austria in the Sistine Chapel of the Vatican following Holy Thursday mass today. Prelates insist that a concordat be- tween Germany and the Vatican will be negotiated as a result of Baron von Papen’s visit with the Pope yesterday. They said the Vatican and the three German states—Prussia, Bavaria and Baden, which have existing concordats —were satisfied with those agreements, "~ (Continued on Page 2, Column 2.) SECOND FACULTY POST ACCEPTED BY EINSTEIN Famed Scientist Takes Chair of Mathematical Physics of College de France. By the Associated Press PARIS, April 13—Prof. Albert Ein-| stein was reported today to have ac-| of College chair mathematical the the in cepted hysics aris. The newspaper Petit Parisien said the acceptance would not prevent the famous Jewish physicist, an exile from Germany, from joining the University of Madrid faculty also. de France, | MACDONALD SEES INON OF WATONS WTHOUT TREATES Declares He Won't Try to Persuade U. S. to Drop Historic Policy. NO BINDING AGREEMENT CONTEMPLTED IN TALKS |British Statesman Denies Report private secretary to the President, on | ; P of Understanding on War Debt Moratorium. By the Associated Press. LONDON, April 13—Prime Minister Ramsay MacDonald, during a foreign affairs debate in the House of Com- mons today, outlined the objective of his trip to Washington as an attempt to bring the nations of the world closer together, not in alliances, but in spirit, and to secure a co-operative effort for a solution of economic and political problems. The premier will sail Saturday. “American policy,” the premier said, “has always been that she will not enter into any European entanglement, and I would not go, nor would I ever go and try to persuade America to do otherwise than to carry out that his- toric policy. “The only possible exception would be in the event of a world agreement quite clearly defined regarding an ag- gressor, America having previously been a party to that agreement.” Threatening Influences Cited. MacDonald declared the world could not be indifferent to “certain threaten- ing influences” active in Europe today. “We must not allow them to obstruct our progress toward disarmament,” he said, “but we must consider the con- ditions and be very careful at the same time as to how these conditions are to operate.” He said he understood his views on the European situation were not inac- ceptable in other parts of the world and if he could further the spirit of co-operation amecng nations at Wash- ington he would consider his mission successful. Dealing with debts, he declared that neither Americans nor Englishmen could hide the fact that debt pay- ments have had a very important po- litical effect and that a settlement ac- ceptable to both sides would be one of he greatest blessings that could happen. Mr. MacDonald declined to discuss the details of the proposed conversa- tions, but said that whatever discussion Te y 3 dation he would make and that parlia- mentary debate could be held. No Agreements Contemplated. Intervening, Lloyd George, former premier, asked whether any agree- ment would be entered into in Wash- on subject to acceptance by the British_cabinet. Mr. MacDonald replied that he pro- posed to come to no agreements dur- lnlg the four-day talk with Mr. Roose- velt. “Pirst,” he sald, “we must sit down together with the Americans and un- derstand each other, and if the whole field of problems can be explored in four days, good will be done.” Continuing comment on debts, the premier declared, “I expect Mr. Roose- velt to talk with the most friendly can- dor of his own difficulties and I cer- tainly shall talk to Mr. Roosevelt with the most friendly candor of the diffi- culties that would have to be faced in this country if certain proposals are put to the commons. Then I think the cabinet will be in a position to make up its mind how it is proposed to handle the June 15 payment.” Debt Understanding Denied. Mr MacDonald said “there is not a word of truth” in newspaper statements here that an Anglo-American under- standing as regards a debt moratorium had been reached. Regarding the World Economic Con- ference, the premier agreed with Clem- ent R. Atlee, Labor spokesman, that the world’s greatest problem is to end ccnditions under which men who de- sire work cannot get it. “T have always taken that view as the ~(Continued on Page 4, Column 2) FORMER HAGERSTOWN BANKER FOUND SLAIN York, Pa., Man Is Discovered in Home With Bullet Wound in Head. YORK, Pa., April 13.—D. J. Sprecher, formerly associated with the Hagers: town Bank & Trust Co. Hagerstown, Md., was found dead in his home today with a bullet wound in his head. His son, Daniel, discovered the body in the cellar. For 18 years Mr. (Madrid re- | Sprecher was manager of a branch | ports said he had accepted that post.) | bank of the Hagerstown Bank & Trust A government bill creating the chair | Co. He came to York two and one-half | Armies Combined With Manchu- kuoans, Extend Lines Steadily Against Strong Chinese Forces. | By the Associated Press. PEIPING, China, April 13.—Reports | reaching here today indicated that the | combined Japanese and Manchukuoan | drive south of the Great Wall and east | of the Lwan River was steadily being, extended. The combined armies were reported | attacking Chinese troops in the vicinity of Halyang, with the latter offering stout resistance. Chinese civilians were said to be fleeing southward. Japanese bombers were reported in Chinese dispatches to have damaged a Peiping-Mukden railway bridge over the | river, while 30 Japanese fiyers inflicted heavy damage in raids south of Lengkow. CHARLES E. MITCHELL INDICTED SECOND TIME Former National City Chairman Accused of Evading 1930 Taxes of $156,791.09. By the Assoclated Press. NEW YORK. April 13.—A second in- | dictment against Charles E. Mitchell, former chairman of the National City Bank, was handed up to Federal Judge |[HOME BARR said Dr. Einstein would find here “the tranquillity necessary for work.” years ago and has been operating a grocery store here. IC;\DED AGAINST HELP FOR TWIN BABIES SERIOUSLY ILL Parents, Opposing Tumor Operation for One, Have Boiling Water as Weapon. By the Associated Press HASTINGS, N. and Mrs. John V: | 105 degrees. Y. April 13.—Mr. | seemed to asco barricaded their | Severe cold the doctor said he could not Although the symptoms indicate no more than a be sure until further examination. little house against police today and | “Tni morning he returned with a threatened to pour boiling water On‘pol(;ccman and found the door locked any one who attempted to force en-|and jammed from the inside with & | brace, and all the windows locked and trance in an effort to bring med‘“‘ibucefl_ The parents called out that they attendance to the Vasco's twin babies. | had a big pot of water boiling on the The Vascos’ trouble with the author- | stove and intended to pour it over the ities began when a children’s soclety | 175 On€ 10 force an entrance, | a ought to have an operation DeI- | gnortly before it was barricaded said formed to remove a malignant tumor | the parents had placed the twin babies from the eye of 2-year-old Helen Vasco. | in“a small room and locked the door The parents, recent immigrants, re- tors who examined Helen Vasco fused to permit the operation and the | for the Children’s Court reported an matter went to Children's Court, where | operation was imperative to remove a Judge George Smythe ordered that it be | malignant tumor underneath an eyelid performed, but stayed his order pending | which it was feared might reach” the decision by the appellate division of the | brain and cause death. The parents Supreme Court, which was expected 10| became terrified when they were told bz rendered today. the operation might necessitate removal Last night Helen's twin, Anna, fell |of the eye sick and the parents called police, who | Vasco. a laborer, receives a small wage Frank J. Coleman today, charging eva- €'on of intome taxes of $156,791.09 for Naa year 1930, summoned Dr. Michael Bender. He|for part-time work given him by the found the baby with & Qi local-Unemployment Reliet- Agench \( 7/ ‘ $ OH, IT’S ONLY G. B. S.! FARM REFINANCING MEASURE PASSED House Approves $2,000,- 000,000 Bill as Senate Nears Price-Fixing Vote. By six votes the Senate today handed the administration its first defeat, inserting a cost-of-produc- tion guarantee into the big farm relief bill. A coalition of Democratic and Republican independents put it through in the face of repeatedly registered administration disap- proval. By the Assoclated Press. ‘The administration's $2,000,000,000 farm mortgage refinancing bill was ‘passed today by the House and seént to the Senate, which is considering it as an amendment to the general farm re- lief measure. The bill was approved after three days of debate in which opponents, led by Representative Boileau, Republican, of Wisconsin unsuccessfully sought to have the Frazier inflation bill passed as a substitute. Senate Approaches Vote. While the House was approving the important mortgage legislation, the Senate approached a vote on a strongly- supported amendment to the relief bill under which farmers would be prom- ised high enough prices to cover their cost of production. This the administration has op- ‘The mortgage measure passed by the House authorizes the Federal land banks to issue $2,000,000 of farm loan bonds at & maximum interest rate of 4 per_cent These bonds are to be used, first, to exchange for or purchase outstanding farm mortgages; second, to make new loans on farm mortgages, and, third, after the expiration of one year, if the bonds are not required for the first two purposes, to refinance at lower interest any outstanding issues of Federal farm loan bends. * $50,000,000 Is Authorized. 1t also authorizes the land banks for five years to grant moratoriums to farm borrowers and $50,000,000 is authorized for this purpose. The interest rate on all outstanding and new mortgages held by the land banks is reduced for five years to 4% per cent and grants a moratorjum on the payment of principal for five years. | A total of $15,000,000 is authorized for this provision, The maximum limit on loans by the | land bank mortgage loans is increased from $25,000 to $50,000. | The land banks are authorized to make direct loans to farmers where borrowing facilities are not available. The Senate set 2 o'clock as the time for voting on the price-fixing plan, which was written into the Roosevelt farm relief bill by the Agriculture Com- | mittee. Administration leaders said they were confident they could muster sufficient strength to reject it. Would Guarantee Cost. Advocated by John A. Simpson, presi- | dent of the National Farmers' Union, | the price-fixing plan would seek to guarantee the farmer at least the cost of production on that part of his crop going into domestic markets. Wallace contends the Simpson plan feature would be difficult to administer. Use of the plan, however, would be opuional, like the other provisions in- cluded in the bill, each designed to raise the farmer’s purchasing power. . BEER FOR HOUSE CAFE Sales Start Tomorfow for First Time in 30 Years. Beer will be sold tomorrow in the | House restaurant for the first time in 30 years, it was announced this after- noon by Representative Kramer, Demo- crat, of California, chairman of the House Subcommittee on Accounts. To the subcommittee was referred the question as to whether beer should {and could be sold in the House res- taurant without a license. In its re- port, the committee held that a license would not be necessary, and no fur- ther action will be required for the restaurant to lay in a supply. ! _RICHMOND, Va., April 13 (#).—The | Federal Reserve Bank of Richmond to- day announced the Fiderity Trust Co. of Baltimore has been admitted to membership in the Federal Reserve System. Radio E‘“‘E‘ on Pags D4 ECONOMY THREATENS TO CRIPPLE DISTRICT'S MODEL PENAL SYSTEM Institutions to Whi ch States Turn for Guidance Would BC Overcrowded and Undermanned W This is the fifth of a series of articles on the eflfect of proposed reductions in the pending District appropriation bill. Overcrowded penal institutions, manned with an insufficient number of guards, with all of the dangerous| consequences of such conditions likely to follow along in their wake, face the District of Columbia in 1934, if the appropriation bill for that ' year is passed in the same shape in which it came from the House. For many years penologists been in the habit of coming to Wash- ington to study the penal 2dminis- trative system built up by the late Commissioner Cuno H. Rudolph and by Capt. M. M. Barnard, the present superintendent of penal institutions. It have | ith Further Cuts. was adopted as a model by many States bent on reforming their own systems. But it will be a model sys- tem no longer if the House bill is translated into law. ‘The system is built on the maximum possible freedom from restraint and the occupation of the prisoners’ time in useful occupations, designed not only to keep his hands and mind busy while he is segregated from the rest of society, but also to fit him for the economic struggle which will beset him as soon as he returns. Lorton | is known as the prison without walls. | As a matter of fact, it has a walled | inclosure, but the name still repre- | sents its spirit. In the walled in- closures go the prisoners who will not 1Cannaw_m Page 3, Column 6.) | | | NEW POWER LINES AT SHOALS FOUGHT Legislators Told Construc- tion Would Be a “Sheer Waste of Money.” By the Associated Press. Construction of power transmiscion lines as provided in the Roosevelt Ten- nessee Valley program was asasiled as a “sheer waste of money” in testi- money before the House Military Com- mittee today by E. A. Yates, vice presi- dent of the Commonwealth and South- ern Corporation. Yates, also vice president of the six Southern companies of the Common- wealth group, said the power comparies have a system of lines- ample to ab- sorb all electrical energy produced at Muscle Shoals or at the Cove Creek |dam which would be constructed by the Tennessee Valley Authority cre- ated in the administration bill. He said the six power companies al- ready have a surplus capacity of 1,000,000,000 kilowatt hours a year in excess of the present demand. The six companies discussed by Yates included the Tennessee Power Co., Ala- | bama Power Co., Georgia Power Co., Mississippi Power Co., South Caroli Power Co., and the Gulf Power Co. in Florida. Will Suggest Changes. Before Yates began his testimony he was introduced by W. L. Willkie, presi- dent of the Commonwealth and Southern Corporation. Willkie said he was “not protesting” the administration plan for utilizing the Government Muscle Shoals property to begin a vast Tennessee Basin development, but that his witnesses would suggest modification. Yates discussed the formation of the six companies, all of which are linked by transmission lines. He said they serve 1,678 communities in 196,000 square miles, or 66 per cent of the area of the six States. He said the com- panies have 430,000 electric customers. He said there were 78 municipal power operations with 50,000 customers in the same area and that 538 of them pur- chased their power from the power companies. In the last decade, Yates said, the power companies have pur- chased 307 municipal operations. “The average monthly bill to cus- tomers by these municipal operation was $3.35 for 25 kilowatt hours,” Yates testified. “Since their acquisition by the power companies, the same amount of power has cost $2.22.” 36,000 Miles of Lines. He sald the area was served by 36,000 ;‘mles of transmission and distribution es. “There is a provision in the bill for a transmission line between Muscle Shoals and Cove Creek,” Yates said. “It is estimated it will cost $6,000,000 to build. The operation of Cove Creek in co-ordination with the power company would obviate entirely the necessity of building that line. “We feel there is no need of building any transmission line. To my mind it would be a sheer waste of money. Any (Continued on Page 2, Column 3. Reich Guards Kill Three. DACRAU, Germany, April 13 (#).— Guards today killed three Communists BAILLIE-STEWART - GETS 5-YEAR TERM Dishonorable Discharge From Army Also Is Ordered After Court-Martial. By the Associated Press. LONDON, April 13—Lieut. Norman ' ‘Baflle-st.ewan, convicted by court mar- | |tial of violation of the official secrets | jact, was sentenced today to dishonor- |able discharge from the army and to | five years penal servitude. The young officer of the aristocratic | Seaforth highlanders, member of a dis- tinguished military family, was charged with having sold military secrets to a foreign nation. Charged Money Received. | . During the court martial the prosecu- |tion charged that he had “sold his country for £50 or more,” receiving the | | mopey in the mail from Otto Waldemar | | Obst of Berlin. | His defense was that the money had | come from a German girl named Mary { Louise, whom he had met while he was on leave in Germany. He denied be- | traying secrets of the army. | King Confirms Findings. The King himself confirmed the | findings of the court, but Baillie- | Stewart will escape the shame of being “drummed out” of the army, for that |old _ceremony of degradation is no (Continued on Page 2, Column 2.) | |WALKER BANNS REMOVED Former Mayor Is Eligible to Be Married at Any Time. CANNES, France, April 13 (#).— Banns for the marriage of former Mayor James J. Walker of New York and Miss Betty Compton have been removed from the board at City Hall, the necessary legal time having elapsed today. They now are eligible to be married at any time, but the ceremony is un- likely until April 18 at the earliest, be- cause of the Easter holidays. ~Mr. Walker is averse to the marriage during | Holy week. ROOSEVELT Text of Message The President's message to Congress | on refinancing of home mortgages 1ol<i | lows in full “To the Congress: “As a further and urgently neces- sary step in the program to promote economic recovery, I ask the Con- gress for legislation to protect small home owners from foreclosure and to relieve them of a portion of the burden of excessive interest and principal payments incurred during the period of higher values and higher earning power. “Implicit in the legislaifon which I am suggesting to you is & declara- tion of national policy. This palicy is that the broad interests of the Nation require that specini eafe- guards should be thrown around home ownership as a guarantee of social and economic_stability, and " (Continued on Page 2, Column 6.) GLASS ANNOUNGES | BANK AGREEMENT Senator Declinues to Reveal Provisions Accepted by Subcommittee. Chairman Glass announced today his Senate Banking Subcommittee was “unanimously agreed” on a permanent bank reform bill, but was holding it up for a conference with Secretary of the Treasury Woodin. The committee met on the bill for more than an hour and & half, despite conflicting reports of the administra- ticn attitude. As he emerged from the meeting, the Virginian said: “The subcommittee is unanimously agreed.” “On the bill as it was tentatively drafted?” he was asked. “As it is,” Glass replied, laughing. | He refused to discuss the terms of the measure, but said there had been “no material change” in the provision for | a $2,000,000,000 deposit insurance fund. Held Up for Woddin. “The bill is being held up until the Secretary returns,” Glass said. “There is no difference whatsoever among members of my committee.” Other members predicted the bill would be ready to report to the. full committee early next week, : impression that the sul ‘was ready to stand on the bill in substan- tially its present form regardless of the administration attitude. Glass said there were “some tions still open for discussion, but they are not very material.” President Roosevelt's attitude toward the insurance plan has been variously reported during the past two days, and members of the subcommittee want to confer with Woodin to determine what changes the administration wants in the bill. Secretary Woodin is now in New York. The bill, when it is finally passed, must carry some provision for the in- surance of bank deposits, in the opinion of Senator Fletcher, chairman of the Senate Committee on Banking and Currency. The veteran chairman is Jjoined in this view by other influential members of his committee, by members of the House Committee and by Speaker Rainey of the House. Secretary Woodin has been in opposi- tion to the plan already advanced for the insurance of bank deposits by those who have been working on the bank re- form bill, and in which the Govern- ment would be a contributor. Whether Secretary Woodin will be persuaded to change his attitude In the matter and whether President Roosevelt will back up his Secretary of the Treasury or listen to the advice of the members of Congress dealing with the banking leg- islation are burning questions today in connection with bank reform legislation. Bill Expected Soon. Senator Fletcher and also Repre- sentative Steagall, chairman of the Banking Committee of the House, both insist that a bank reform bill will be passed at the present session of the Congress; that such a measure is es- sential. Senator Fletcher said that he believed the subcommittee of his committee working on the bank bill would have it ready for introduction in the Senate before long. The Demo- cratic members of that subcommittee include Senator Glass, Senato; Bulkley of Ohio and Senatcr McAdoo of Califor- nia. Once the bill has been introduced by Senator Class it will then be given consideration by the whole committee, Senator Fletcher said, and reported to the Senate for action. Both Senator Fletcher and Represent- ative Steagall visited the White House yesterday and were in conference with the President. While they declined to give details of their conference, Sena- tor Fletcher said that the President had not closed his mind on the ques- tion of insurance of bank deposits. Secretary Woodin was in New York yesterday. The President was repre- sented in other quarters as holding that so far the steps taken in connec- tion with the bank reform bill are preliminary and that further confer- ences must be held to werk out the details of the measure. A compromise on the bank deposits " (Continued on Page 2, Column 7. 1 | in 1,000 By the Assoclated Press. LOS ANGELES, April 13.—Dr. John P. Buwalda, head of the department of geology of the California Institute of Technology, has warned that Southern California will have a great earthquake “maybe in 10, maybe in 100, maybe in 1,000 years.” He made the prediction last night to a group of 800 leading engineers, meet- ing under the auspices of the Los | Angeles sector of the American Socle!yi of Mechanical Engineers. The lessons of the earthquake last month were dis- and wounded one, who were attempting €6caps ITOm & cODCCDITAion SAGI cussed not only by Mr. Buwalda, but also kg Wood, |[SOUTHERN CALIFORNIA WARNED TO PREPARE FOR GREAT QUAKE ;Geologist Declares It May Strike in 10 Years or Maybe Years. Carnegie Institution seismological lab- oratory, and Dr. R. E. Martel, chief of the division of structural engineering of the California Institute of Tech- nology. “We have tried to cover up earth- quakes in Southern California and the bald fact is that we have failed,” said Mr. Buwalda. “We can build against them, we can bring about good results, but not by deceiving ourselves. We should adopt a new policy in publicity about our earth- quakes. The publicity should stress that we will continue to have them. ;[‘he public should demand good build- ing= “It does mnot cost much ¢o bulld against earthquakes” ’ proposi- | able were ‘Deeds, "MESSAGE PROJECTS 2 BILLIONS FOR SMAL L. HOME AID Permanent Plan of Loan Agencies Also Provided. IN BOTH HOUSES |President Demands Con- gress Put End to ‘Fear and Despair.’ by the Associated Press. President Roosevelt added to his emergency program on Capi- tol Hill today the proposal to re- finance the mortgages on small homes. In a special message to Con- gress he asked for legislation to permit readjustment of existing mortgage debts, together with a postponement of both interest and principal payments in cases of “extreme need.” He suggested action along the same lines as the refinancing of agricultural mortgages, now be- fore Congress, with a bond issue to meet the needs. He told Congress the plan of settle-" ment “will provide a standard which should put an end to present uncertain and chactic conditions that create fear and despalr among both home owners and investors.” Bills in Both Houses, Bills were introduced in Senate and House at once to carry out his reccom= mendations. Creation of a permanent system of Federal savings and loan asociations as well as an emergency $2,000,000,000 corporation to reiinance home mort- gages is authorized under the bills. The bill would authorize subscription of $100,000,000 by the Government for setting up a permanent system of Fed: hris " etitutions in Which beopie ons in whic place their savings and invest '.'33 funds, and in order to provide for the financing of homes.” These institutions would be in the nature of building and loan associa- tions, but the bill provides they should not be established in any community unless the Home Loan Bank Board feels such community “is insufficiently served by local thrift and home financ- I of city home cwners who are burdened with debts. Loan Agency Provided. A Home Owners Loan Corporation would be created under the Federal Home Loan Board with a capitalization of $200,000,000 subscribed by the Fed- eral yovernment. PFunds would be ob- tained through the Reconmstructicn Corporation, ‘The Home Loan Corporation would be authorized to issue tax-exempt bonds up to $2,000,000,000 at 4 per cent interest, which would be exchanged for existing mortgages. The Government would guarantee the interest but not the principal. Bonds exchanged for mortgages would be limited to 80 per cent of the value of the me praised by the corporation. Refinancing would be limited to homes valued at $10,000 or less, occupied by not more than three families. Any mark down in the face value of the debt accepted by the mortgagee would be credited to the mortgager. The home owner would amortize his debt to the corporation within 15 years, with interest at 5 per cent. The rd would have authority to grant a three- year extension of time for payment of principal or interest. In refinancing the home owner, the corporation could advance cash for the payment of taxes or assessments, or provide for necessary maintenance or Tepairs. Cash Advances Carried. Cash advances for these purposes also could be made to home owners whose property was not mortgaged up to 80 per cent of the value. Pederal savings and loan associations would be set up under rules and regu= lations prescribed by the Home Loan Bank Board, “giving primary considera- tion to the best practices of local mu- tual thrift and home financing institu- tions.” “But no such association shall be in- corporated by the board,” the bill says, “unless in its judgment the community to be served is insufficlently served by local thrift and home-financing insti- tutions. “Such associations shall be authorized to make loans upon homes secured by duly recorded home mortgages and to invest their funds in obligations of the United States and in Federal Home Loan Bank bonds.” Each association would automatically became a me! r of the Federal Home (Continued on Page 2, Column 5.) $153,530 R. F. C. LOAN VOTED TO MARYLAND Gov. Ritchie's Request for Federal Assistance to Seven Coun- ties Approved. By the Associated Press. Maryland today received its first al- lotment of emergency relief funds from the Reconstruction Finance Corpora= tion, $153,530 being voted the Governor of that State for use in seven counties during April and May. At the same time, the corporation granted $15,000 to Maine for use in three political subdivisions n: April; Kentucky, $1,513008 for use throughout the State during May, and ‘Ohio, $290,718 for use in 10 political subdivisions. ‘The loan to Maryland marked the first application from Gov. Ritchie for Federal assistance. The corporation announcement did not give the names of the counties. involved nor did it go into details other than to say that the Governor had certified that funds avail- insufficient to meet relief A