Evening Star Newspaper, May 7, 1933, Page 2

A2 »- PRESDENT BACKE BY 0.5 BUSHESS 'THE SUNDAY STAR, WASHINGTON, Get U. S. Commerce Posts THREE D. C. MEN ELECTED DURING SESSIONS. Chamber Session lndicatesl Strong Confidence in “New Deal.” BY FREDERIC WILLIAM WILE. American business, after two months of the Roosevelt new deal, faces the fu- ture with the strongest confidence it has felt since the advent of the depression. That is the overwhelming concensus which found expression here last week at the annual meeting of the Chamber of Commerce of the United States, which brought together commercial, financial and industrial leaders (mmI every section of the country Not every detail of the Roosevelt program for economic _regeneration meets with the unqualified approval ‘ of business, as represented by the Chamber ot Commerce. But practically no dissent fcund utterance here from the basic measures initiated by the President under the congressional authority. Even the revolutionary farm relief domestic allotment plan received the Chamber's broad O. K. The general public would be less surprised on that sccre if there could be revealed the names of certain eminent national busi- ness representatives who co-operated in formulating the measure. It would be realized that the plan is by no means exclusively the product of the “brain trust” and associated and allied ex- pert economists. Oppose Only Three. Three new deal propositions, and only three, evoke hostility from = chamber leaders. They are opposed to the plan of Secretary of Labor Perkins for gov- ernmental control of industry. They deplore _the Ten- nessee Valley au- thority scheme, with its provision _for putting the Gov- ernment into the power business, be- cause it is fedved that it may become the opening wedge for the wholesale invasion of private enterprise by Uncle Sam. Finally, busi- ness sentiment, as reflected by the chamber, bitterly regrets the decision of the Roosevelt administration not to redeem In 100- cent gold dollars the interest payments on Government bonds held abroad. National business spokesmen disapprove of action by the United States, which, in their opinion, may result in weaken- ing respect for contractual obligations everywhere. The argument is that un- less this country agrees to redeem in full at the earliest practicable moment every gold promise it has made, to the last grain of exact weight and fineness written in the bond, or give just recompense for the failure, our claim to the sanctity of the $11,000,000,000 of war debts owed us by other countries 1s seriously undermined. Henry I. Harriman, president of the Chamber of Commerce of the United States, was asked by this writer to specify the outstanding feature of the organization’s annual meeting. New Era Foreseen. “Unquestionably,” he replied, “the conspicuous note was the realization that we are living in a changing world, a consciousness that the old order is gone and that a ‘new deal’ is here, Every official action the chamber took at its twenty-first annual session, vir- tually every thought privately voiced by members, testified to this. There was general recognition that paths long trodden must, perhaps, be deserted for other and even untried roads if our hopes of economic rehabilitation are to be gratified. “In other words, there was definite belief that we must proceed on the trial and error system to find out what is and then retrace our steps, if Tecessary. “Business men, as one came in con- tact with them in Washington last week, sensed that it is in this spirit that President Roosevelt is seeking the way out of the valley of depression in which the country and the world have been floundering for four years.” s The Chamber of Commerce has noth- ing but acclaim for President Roose- velt's “three requests of industry”— (1) to maintain wages at their present level and increase wage scales in con- formity with the rise in commodity prices; (2) to bring order out chaos in the industrial system by co-operative action against unfair method of com- petition and ‘“cut-throat prices,” and (3) to view recovery in terms of the whole country rather than terms of a particular industry. “More Than Satisfied.” “As we interpreted the President's address at our closing banquet,” said Mr. Harriman, “it was an appeal to in- dustry for self-regulation. He laid upon us the burden of responsibility for re- adjusting producing conditions on lines fair and equitable to all concerned, in- cluding labor, and seeing to it that the minority does not thwart the will of the majority in any given industry. Business is more than satisfled to pro- ceed along these lines. We have the wer and the will for self-regulation. \We welcome the readiness of the Fed- ral Government to intervene, if neces- | 4a, ary, to keep the recalcitrant in step, if need be. The head of the Nation's largest phalanx of business interests was in- vited to give his opinion of inflation, ®s contemplated by the legislation just enacted in Congress at the tra- tion's behest. “To be remembered above all,” said Mr. Harriman, “is the fact that the provisions of the so-called Thomas amendment to the farm bill are permis- sive and not mandatory. They clothe the President with authority which he 5 not bound to exercise. We found wmong chamber leaders a widespread eonviction, which I personally share to the full, that while Mr. Roosevelt may use some of these powers, he will never abuse them. “All of us realize the gravity of such & step as would be denoted by reduc- <gion of the gold content of the dollar to ‘B0 cents. But we are satisfled that Jheither this nor any of the other dis- .cretionary powers to be vested in the “President will be utilized to any extent “Ahat could jeopardize the soundness of _our money system. 7 Roosevelt Pledge Cited. . “The President is pledged to sound- O FFICIALS of the Chamber of Commerce of the United States fcr the coming year will in- clude three Washington men, it was announced at the close of the recent convention here. Upper left, Robert V. Fleming, president of the Riggs National Bank, will act as treasurer; upper right, John Joy Ed- son is honorary life president, and lower, J. H. Hanna, re-elected a mem- ber of the beard of directors. INDUSTRY DRAFTS HUGE J0B PLAN | | Fress. We do not think he will violate | is pledge. Had inflation been left to ‘the mass control of Congress, many would have been filled with grave fears of the consequences. All of us recognize ithe need of high prices. We believe hese can be brought about through the 56,000 Employers Reported| in Move to Re-employ 3,000,000 Men. (Continued From Pirst Page) the author of the latter proposal, yes- terday fired a shot at the lobby against his legislation. he said “The most tremendous lobby has been brought into Washington since my term in office. Every conceivable kind of telegram, letters and coercion on em- ployes has been employed. The hotels are filled with lobbyists against the bill from every section of the United States. “Seeing that sentiment is so strong for the bill, they have adopted the tac- tics of being for the spirit of the legis- lation, but suggesting numerous amend- ments with the idea of delaying action. If delay is not possible they hope to load down the bill so that its passage and signing will be prevented. “There i5 a very wholesome field for investigation, and in my judgment it would bring some very interesting reve- lations.” The arduous task of re- drafting the 30-hour work week bill was assigned yesterday to a House labor subcommittee. To do the rewriting, Chairman Con- nery named himself, Representatives Griswold of Indiana and Fitzgibbons of New York, Democrats, and Welch of California and Lambertson of Kan- sas. Republicans. Connery said the bill would be ap- proved by the full committee Thursday or Friday. Members of the subcommit- tee predicted that the bill as finally re- written would: Bar from interstate commerce goods manufactured or mined by workmen employed more than six hours a day or five days a week; Permit a longer than 30-hour week for a short period so as to allow for seasonal increases in output; Ban importations from foreign coun- tries where the workmen were employed on a longer than 30-hour schedule, and Establish wage boards including rep- resentatives of labor, industry and the Labor Department to fix minimum wages. DEFICIENCY GROUP In a public statement, 4 § MISS PERKING SEES : FLENIBLE LAW NEED Application to Social Ques- tions Discussed by Secre- tary Before Institute. | Greater flexibllity in laws affecting social questions was urged last night by Secretary of Labor Frances Perkins in an address before the American In- stitute of Law. She suggested this might well be one of the major prob- lems to be solved by students of law during the next 10 years. Pointing out that no legislature could possibly conceive the problems that | “rise to plague” executives under the | rigid laws as they now stand, Miss Per- | kins suggested the desirability of build- | ing up within the statutes of the future “a flexibility which has been proved so necessary in the protection of human rights.” Flexibility Advantage. | In her brief address the Secretary | said: “The technique of the code that can be modified as the occasion de- mands without lengthy legislative de- | bate for the protection of working peo- ple against low pay, long hours and the like finds much to commend it. | “By bringing about a state of order in industry, not necessarily by control, but by seif-regulation. there is some a: | surance that the system evolved shall be | Mlemocratic without the abuses which we find in some systems abroad which we feel inhibits.” Miss Perkins said that in initiating further co-operation between industry and government “we have a duty to | proceed with a faith in our ow ninsti- tutions.” More Adequate Law Need. Chief Judge Cuthbert W. Pound of the New York Court of Appeals and | Prof. Edmund M. Morgan of Harvard | University Law School, in addresses to the gathering at the banquet yester- AGREES TO MODIFY STATE QUOTA CUTS (Continued From First Page.) been appointed. Vermont is entitled to 97, and 124 have been sppointed. Among the larger States, those which are closest to having filled their quotas | are Massachusetts, which is entitled to 1,149 and has received 1,100. Ilinois is entitled to 2,063 and 1,113 have been appointed. Pennsylvania is entitled to 2,604 and 1966 have been appointed. Missouri is entitled to 981 and 775 have been appointed. Ohio is entitled to 1,797 and 921 have been appointed. New York is entitled to 3,404 and 1,863 have been appointed. Two of the States which are entitled to large quotas in the civil service, but have relatively small ones are Cali- fornia, entitled to 1,535 and having 340 appointments, and Texas, entitled to 1,575 and having 431 appointments. The figures quoted above are from the rec- ords at the close of April. Senator Dickinson, Republican, of Iowa, in declaring his opposition yester- y thought the apportionment quotas should be taken into consideration in the making of appointments, but that the merit system should govern in pass- ing on dismissals. He said, therefore, he favored striking out the provision seeking to apply the apportionment law to dismissals. Here- tofore the apportionment quotas have had relation only to the distribution of | appointments. Senator Dickinson, who was a mem- | ber of the special committee which in- quired into the whole subject of gov- ernmental economy in the last Con- gress, said he is studying the various new economy provisions in the pending bill, which probably will reach the Sen- ate from the House some time this week. THREATENS TO BLOW UP BANK IN HUNT F-OR JOB Former Chicago Youth Is Arrested but “Nitroglycerin” Proves to Be Eye-Wash. By the Assoctated Press NEW ORLEANS, May 6.—A youth, | giving his name as John K. Schulte, 24, formerly of Chicago, who, police said, threatened to blow up a bank in order to obtain employment, arrested here today and charged with assault the State-quota proposal, said he | “medium of the l:a\;lmum wl:%e. mir;l‘;‘ Amum prices for basic commodities and | v #n elastic control of the hours of labor. thf“‘&;x;‘?;‘“’rl{'n‘x’;:glm é“a:xllxfl,ge;n;g & “If inflation under presidential con- | Schulte handed him a note demanding ol can contribute to economic restora- | $2.000, which the note said would be n, as many sound authorities cotend 3t can and will, American business will | p] e among the first to rejoice, and, of “course, be the grateful beneficiary of Tesultant improvement in conditions. | the bottle contained an eye-wash. Sul- “The world we live in has altered. Pro- | livan said he persuaded Schulte to de- duction, as the technologist remind us, | part by promising to obtain the youth has been revolutionized. We must a ition. ~frankly and honestly discuss the prob- 'hulte later returned and Sullivan Jems which have arisen, looking at them { gave him a letter of recommendation with an open mind, free of prejudice [to a brewery, City detectives arrested -mgainst change and free, too, from un- | the youth. due reliances upon that which is new — ‘and untried. Neither ancient precept “nor new panacea will solve the economic | the audacious ploneering spirit in which Jproblem of 1933. he is tackling our common problems. In Franklin D. Roosevelt business He will not lack the support of busi- greets a leader of courage, resourceful- ness in working them out.” ®ess and trustworthiness. It glories in (Copyright, 1933.) L4 with intent to commit robbery. b’gmm e note referred to a bottle of “nitroglycerin.” ~Later police learned | held until Sullivan had found him em- | this | day joined in roundly condemning the | present state of the law and urging | the institute not to content itself with | restating the law as it now stands, but | to endeavor to reshape it into something | more adequate to serve the needs of the | people of the present-day community. “The work of the institute,” sald ‘chm Judge Pound, “will never be done. After it has restated the exist- | ing law it may busy itself with another | one of its particular purposes and ob- |Jects which is to promote the better adaptation of the law to social needs. | We need not be timid about entering | that field. Written constitutions should | not paralyze republics, nor prevent de- mocracy from solving all its problems of war and pace. Courts cannot long ignore the will of the people. It is futile for judges to think that the at- tempts to supply an urgent need of social welfare can be permanently de- nied by judicial rulings. Courts may | check untimely legislation, but they | cannot, any more than King Canute, command the rising tides of change to | recede.” |, Remarking that the institute is founded on “the startling proposition | that there is general dissatisfaction with the administration of justice, witn | the uncertainty and complexity of law,” | | he said: “Law tinkering still rema | in the hands of lawyers and Jud::‘bg: the time may come when the peopie, wearled of the rusty and creaking mechanism of the courts, may arise | to destroy it and install some plan of administering 2umce more in keeplng with an age of mechanical power ana speed.” Prof. Morgan's attack was more spe- cific, and was directed to his specialty- the rules of evidence. He pointed par- ticularly to the exclusionary rules, in which he exhibited a few samples of glaring inconsistencies. He showed, for instance, that where A kills B, the dying statement of B, inculpating A, may be admitted in ‘evidence at A’s murder trial even if it is hearsay. Yet the same words would not be admissable trator of the dead man f¢ Emtoe lor wrongful Errors Inescapable. He said that in every hotly contested trial the judge was bound to make a number of errors in admitting or re- jecting testimony, and that these errors would be seized upon by appellate courts on the lookout for some reason for overturning a final decision which they disliked. “In other words,” he said, “the rules of evidence are always at hand to furnish the good reasons in which to conceal the real reasons for a reversal. I think it is a thoughly per- nicious practice thus to perpetrate Jjudicial falsehoods, and I cannot believe that the profession desires the uncer- tainties of litigation to be increased by prostituting the rules of evidence to purpose.” Admitting that the rules of evidence encies 25 years ago, he said that the improvement had been 5o slight that at the present rate it would require astronomical figures to calculate the time needed to attain simplicity and consistency. e C. D. A. to Give Comedy. UPPER MARLBORO, Md., May 6 (Special) —“The Arrival of Kitty,” a three-act comedy, will be presented May pices of the Catholic Daughters of America » }!n an action brought by the adminis- | 26 in Gibbons' Hall here, under sus- tional higl CHASE ECONOMST SHES AT INLATION Says Full Use of Powers! Would Bring Disaster, but Doubts Such Action. By the Associated Press. NEW YORK, May 6.—The full use of the three main provisions of the administration’s inflation bill would be “horrifying if the new legislation were mandatory rather than permissive,” in the opinlon of Dr. Benjamin M. An- derson, economist of the Chase National Bank of New York. He described the new currency legis- lation as “a political compromise,” in an issue of the “Chase Economic Bul- letin.” This is the first time since the in- ception of the inflationary legislation that the world's largest commercial bank has made public the views of its chief economic adviser. Winthrop | W. Aldrich, president of the bank, is {a brother-in-law of John D. Rocke- feller, jr. - “Any one of the three main powers granted to the President under the Thomas amendment to the farm bill, if fully used. would generate so wild and so uncontrollable s flight from the dollar, so wild and uncontrollable & speculative boom, that disasters far worge than we have known yet would follow,” sald Dr. Anderson. Fortunately, he added, there is great confidence both at home and abroad that the President “will not deliberat ly use these powers in such a way to shatter the currency or wreck t credit of the Government or undermine | the fabric of good faith in contracts, and that he cannot be stampeded into doing these things.” Debasement Called Peril. Analyzing each one of the inflation bill provisions, Dr. Anderson said de- basement of the gold dollar by reduction of the gold content to 50 per cent, or anythink like that amount, would seem | to be the worst source of action. The surest sufferer under such a program. he maintained, would be thesbudget of the United States Government, and,| consequently, the credit of the country. “There can be no doubt, I think.” he added, “that this is well under- stood in Washington. If there should | be a violent rise in prices and cost o(‘ living as a result of monetary deprecia- | tion the expenses of the Government would mount much faster than its rev- enues.” | Contrasting the experience of Ger- | many and France in this connection. the economist warned that if we let, the dollar get out of hand, our budget is “sunk.” With it goes the ability to float long-term bonds, he stated. Our | Federal system of taxation, he pointed | out, “with its heavy emphasis in income taxes, is in many ways admirable, but | its success is predicated on sound | money.” | Government security purchases by Federal Reserve Bank, amounting to $3,000,000,000, as provided in the infla- tion bill, would almost certainly lead to | a situaticn in which gold payments at | the present standard of value could not be maintained, asserted Dr. Anderson.| Describing in detail this process, he said it would add three billions “to the heart of the money market, namely, to | the reserves of the member ba Al which normally, would result in a rapid | expansion of bank loans and deposits. A gold embergo, however, perverts the | mechanism, he said. Violent Stop Forecast. “If, for example, every member bank | indebted to the Pederal Reserve System | should pay off its indebtedness in full.” he said, less than $400,000,000 would | be required for this purpose. The re-| maining $2.600,000,000 would then go ! almost entirely into member bank re-| | serves. Indeed, if there came increased | confidence in the banks themselves in | the process, member bank reserves might be increased substantially more than $2.600,000,000. i “It would be certain, however, that at | one of the later stages of the process. when commodity prices were mounting | high in the flight from the dollar, there | would be an increased call for hand-to- hand cash, which would rapidly pull down bank reserves and bring the pro- cess to a violent stop—until new legis- | lation was enacted. raising the paltry | $3,000,000,000 to much larger figures.” Dr. Anderson showed how a $600,000,- 000 increase in member bank reserves | from 1922 to 1928 led to an increase in credit of more than $14,000,000,000, which “created our present credit dis- aster.” In view of this fact, he added, “no one can contemplate .with any equanimity at all the adding of 2,600 millions to the existing member bank | reserves of 3,100 millions. There would | be little hope even for a debased gold | standard if this were done.” An issue of three billions of greenbacks, he | stated, would have approximately the same effect. | Foreign Aspects Analyzed. The danger of international compe- | tition in currency depreciation compels co-operation to avert it, the Chase econ- omist in his analysis of the foreign political aspects of the situa- tion. A return to the gold standard is | essentia), he said, particularly for the | United States and England. But if| America left gold for the purpose of | strengthening its hand in international negotiations, Dr. Anderson stated, “it would, of course, be impossible to sanc- tion it. The risks are too great.” The debasement of the dollar, or the crea- tion of a fluctuating, irredeemable pa- per. “can find no possible economic mmn’mhl? o Cfor the 30-h tion for the 30-hour week and price-fixing schemes came in for sharp criticism. “The 30-hour week, generally applied,” said Dr. Anderson, | “would demoralize so many businesses as to lead to widespread cessation of activity and widespread bankruptcy.” The domestic allotment plan he termed as “violently contradictory” to the pro- gram of restoring forelgn trade and r storing farm prices by restoring the port market. “It is only in the light of the distinc- tion between permissive legislation and mandatory legislation that it is possible to see any consistency or any promise of a good outcome in the economic program of the new administration,” | the statement emphasized. “All the| powers which the Congress has given and is expected to give to the President, simultaneously _exercised, would un- doubtedly wreck the country.” VITALE GIVEN 10 YEARS Convicted of Narcotics and Coun- terfeit Possession Charges. ! MIAMI Fla, May 6 (#)—Arthur ’Viule of West Palm Beach was con- victed by a Federal Court jury here | today on three indictments char sale of narcotics and of counterfeit money, and was sentenced to 10 years in the Atlanta penitentiary and fined $1,000. Clyde Jess Gross, tried with Vitale in one case, was acquitted on a directed verdict. Gross now is in custody and will be taken to Atlanta to serve a Ioo]l'x’.r:yur sentence given him at Toledo, | | | REFUSES TO SIGN BILL WILMINGTON, Del, May 6 (P— Qov. C. Douglas Buck today snnounced that he will it a $2,500,000 school construction bill to become law without his signature. The bill appropriates the mmoney for use during the next bien- lum. It provides $1,500,000 for an addi- h school in Wilmington and school construction in the AT KIDNAPER SOBS A CONFESSION $60,000 Ransom Recovered by Police as 2 Brothers Are Held. (Continued From Pirst Page.) child’s father until the ransom was paid, The activity of State police and de- tectives, however, prevented McMath from fulfilling the demand of the kid- | naper that McMath and the child stay aboard the craft for 48 hours. Employing & Coast Guard boat, au- thorities moved alongside the Bob yes. terday afternoon and found * 3 laying in the cabin. She and her Woods Hole Coast Guard base, where all-night questioning ended with' the re- ' turn here to the home of Kenneth. Cyril, Needham said earlier today, admitted returning the child to Mc- Math. “I did & job and I suppose T'll have to pay for it,” he was quoted uuuzmz. s nder repea questi 11 said, “Well, f‘en on the spot either el’lry. |I!t’l take the rap, that will end it, won't When told that the investigation would continue until all involvtd"‘were "?‘p:e'g:;ng_zd, Cyril, Needham said, “told The two were arrested near Kenneth's home here this afternoon, only a short time after Cyril had been brought back e | to Harwichport from Woods Hole, where with other principals in the case—Mc- Math and Lee among them—he had | undergone an all-night examination by police. It was the long and wearing in- terrogation which brought the “break’” that led police to the solution. Then with startling speed the case moved to its denouement. Blue’ Sedan Appears. Police officers suddenly left the it Guard base at Woods H’;le. whertctok::y had spent the night with their charges. They drove back here and returned M[‘Mlu’\( l;:d lf! to their homes. A group of detectives accompanied 1] to his mother’s home, r;nm- fiyfl‘ street from his own residence. There Kenneth joined them. They went to the McMath home. “Peggy” appeared in the party. A few minutes later they were back at the Buck house. Suddenly a blue sedan swung into the yard It was a blue sedan that pulled up before the Harwich Center School last Tuesday and bore the girl away. Commissioner Needham pointed to the car. “Peggy. I want you to look this car ou>dr and see if this is the one,” he sai Peggy looked and remained silent. but was then led into the house. A moment later the two brothers were under arrest. It was a strange story that finally took form today as the loose ends were gathered together from a multiplicity of sources—the facts gathered by the police, the statements grudgingly pulled from the men under arrest, “Peggy” Mc- Math's straightforcard and simple of her experiences—and four days' drama. Detective Commended. It reached its climax in the state- ments of Needham and Detective Lieut. Ernest Bradford, to whom the com- missioner paid high tribute for his | share in solving the mystery, along | At the school, saying he was Mr. with other State police officers. ‘The younger prisoner has been out of work for some time, police said, and | needed money. His brother, Cyril, they said, was about to lose his home. He, too. is married, but has no children. Tuesday afternoon two telephone calls paved the way for the kidnaping. One was to the McMath home and asked that the telephone receiver be left off 10 minutes while the telephone line was being tested. The other was to the school in which “Peggy” was a pupil. The caller said he was her fa- ther and wanted her dismissed when the “chauffeur” arrived. At 2°15 a car driven by a man who appeared to be a colored man drove up to the school. The child was rel nd taken into the car, which drove away. Peggy Tells Her Story. ‘What happened to her then was told by “Peggy” herself. “We drove along about 10 minutes to a small road that ended in a cranberry bog. I never was there before. He told me to get into the back seat and said, ‘I you make any noise Ill chloroform you.’ " They drove to & cranberry bog. There her captor bound her and left her for a long time.” Then a man came and walked her “across lots” to a building. ‘There he kept her “all that night and Wednesday, and Wednesday night and Thursday and part of Thursday night.” “I was all alone during the daylight, she went on, “but at night the same man came and brouiht me a ham sand- wich and some milk. “He always talked in a whispery voice and said he was my friend. * * * He told me not to make any noise because the gang was around all the time and he was trying to get me back to my ‘mother.” And in the meantime the moves were made to collect the ransom. Wednesday the first “contact” was established between the parents and the kidnapers. It was through Cyril Buck. He visited Willlam Lee, McMath's business associate, and told him the kid- napers had communicated with him. The word was passed to the parents, and a demand made for proof. Girl's Handwriting Shown. Samples of the child's handwriting | were produced. Cyril communicated the demand for $60,000. Mr. and MrssMcMath did not have the money. Both are the children of wealthy Detroiters, Mrs. McMath the daughter of Mr. and Mrs. William Kales. McMath's parents are Mr. and Mrs. Francis Charles McMath. They were reputed to have money, much more money than Kenneth Buck had ever seen. Negotiations followed between Har- wichport and Detroit. A Cape Cod banker, Ralph Snow, head of the Cape Cod Savings Bank, ap- peared in the case, though he said to- day “I want to make it clear that my only connection with the case was in the transfer of money from Detroit to Harwich.” Thursday the money was in a Boston bank and that night a police officer ac- companied by bank officials carried it by automobile from Boston here. It was in bills of small denomination—$20 and $100 the largest. The money was left. Again contact was made with Cyril and the terms of the kidnapers' offer were set forth. There was to be & meeting on a boat in the harbor. Hooded Man Preseat. The terms were agreed to and Me- Math and Lee yent aboard Lee's yacht Bob in the harbor almost opposite Mc- Math's home. Cyril was there and with him a companion, his face hidden be- neath a hood. ‘The conditions were that the ransom money should be in three bundles, two of $10,000 each, the in cne bundle. Upon its payment the child would be turned over to the father at 3 a.m.—but no effort should be made to trace the kidnapers for 48 hours. McMath agreed. He rowed ashore and went to his home, where he divided the money into the specified packages. Then he returned to the boat and handed it over. Let “Peggy” tell what happened next. “Thursday night, late, he (the man who had been caring for her) came snd ag zaid he was able to take me back to my father and mother. He biindfoided me eased | the exact location of which D. O, MAY 7, 1833 _PART ONE. President Gets “Buddy Poppy” SOLDIER’'S CHILD GIVES FLOWER TO ROOSEVELT. T of Memorial day. By the Associated Press. | BARNSTABLE, Mass., May 6.—The confession of Kenneth Buck, 28, jobless chauffeur, that he plotted and exe~f cuted the abduction of Margaret Mc- Math, 10, was related today by Daniel Needham. State commissioner of public } safety, as follows: { “Early this afternoon District At- torney Crossley and State detectives questioned Kenneth Buck at length and were not satisfied with his story, al- though it was purported to be a com- plete confession. “State Detective Ferrari took him along with Cyril and after consider- ably more questioning obtained his wil- lingness to make a complete disclosure of everything. He then appeared be- fore the detectives, was examined at length and told the following story “About two days before the kidnap- ‘ing he thought of this idea. He had no grudge against any of the McMath | family, but knew they were wealthy. | The motive was purely a desire to get jmoney. He worked out the plan alone | “He left his brother's garage at 1 ‘o'clock on Tuesday afternoon (the ga- from | T3¢ is in West Harwich). others who played brief parts in the Blackened His Face. “At 2 o'clock he went home. got some cork stoppers, went in back of his | house into the woods, blackened his | face. put on white gloves and went to | the South Chatham post office to make | two telephone calls, one to Miss Hagu, c- | Math and wanted Peggy dismissed early, and one to the McMath house, saying there was trouble on the line and ask- ing them to leave the receiver off the hook for 10 minutes. “He then went to the school, got the | girl, went down Parallel street to Banks street to a long road about a half mile, where he detoured into a wood road to Gorham road. “After going a short distance down this road he stopped, bound Peggy. put her in the back seat, then went through Gorham road. back to Banks street and | then to a small house not very far away. Takes His Boy Home. “The house was near a cranberry bog, he will show us later. He left Peggy there, re- | HE boom of flashlights and the excitement of the occasion did not deter 5-year-old Imogene Laura ‘Stone from fixing in President lapel the first of 6,000,000 Buddy Poppies which veterans in hospitals have made for the Veterans of Forelgn Wars benefit sale during the week Imogene, daughter of a gassed veteran, who died last year, is an inmate of the V. F. W. home for widows and orphans at Eaton lhpid.z Mich 'Kidnaper’s Confession Abductor Once Considered Going to Priest and | | 5 5 |street, and the bank has maintained Returning Ransom Money in Hope of Being Forgiven. | t Roosevelt's —Underwood & Underwood. house was unoccupied. She stayed there Thursday night in the basement of the building when she was returned to her dad at the McMath home, after McMath, blindfolded, had met them at a rendezvous and returned to the house with them. Denies He Was Armed. “Kenneth said he was not armed and he did not own a gun. Cyril drove the car at this time. “At the time of the fire, Kenneth had a note addressed to Mr. McMath telling him mnot to report the kidnap-!| ing to the police or the press, but be- cause of the fire and the belief that Peggy had been discovered, he tore up the note and threw it away. “After he found she was still there. he could not figure out how he could come in contact with Mr. McMath. He finally decided to appeal to his brother to act as an intermediary “This he did the following morning. which was the first time that his brother Cyril had any knowledge of Kenneth's, connection with the kidnaping. “His brother from there on acted as intermediary. “Kenneth said he had Peggy write notes so that the father would be con- ECNDD. AN MOVE T REDPEN District National Outlines Re- organization Basis to Stockholders. S (Continued Prom Pirst Page.) equal to one-half of the par value of their present hold: National Blnk,o ings in the District R. F. C. Would Take $500,000. “It is assumed that as the Recon- struction Finance Corporation will own 9500,000 preferred stock, it will be rep- Tesented on the new board of directors and it Is hoped that other banks which have not yet opened on a 100 per cent basis will adopt similar plans which may result in a much larger institu- tion through the merging of interests and the supplying of such additional capital as the enlarged organization may require. Manifestly the manage- ment of the new institution will be chosen by the stockholders.” In addition to Chairman Wells, the other members of the Reorganization Committee are Robert N. Harper, Jo- seph P. Tumulty, Charles J. Brand, E. J. Murphy, Horace G. Smithy and Charles C. Rogers, who are all stock- halders and directors in the present Dis- trict National Bank. Wharton E. Lester is counsel for the committee. On the date of the Controller of the Currency’s last bank call, December 31, 1932, the District Ni tal deposits of $7,075,7 institution failed to receive its Govern- ment license to reopen on March 14, the bank had about 6000 depositors. The main office is located at 1406 G branches at 939 Ninth street and at Connecticut avenue and K street. This was the second one of Washing- ton's 13 closed banking institutions to take steps during the last week toward reopening, the Franklin National hav- ing made a similar mov The Dis- trict’s announcement indicates that the new bank also would have a new name. This matter, as well as the official per- sonnel, would be decided by the board of directors. Treasury Continues Work. Meantime, the Treasury Department has continued its study of the whole bank situation in the District of Co- lumbia with & view to reopening banks as soon as possible. Rights of the de- positors, it is understood, are being given primary consideration. Careful examinations have been completed of every one of the 13 closea banks. Reports on these examinations are in the hands of experts of the Treasury Department. Personal con- ferences have been held between Walter J. Cummings, executive assistant to the Secretary of the Treasury, his aides and conservators of local banks. Scious study has been made by thu | Treasury Department. not only of the individual banks which are closed, but also of the entire picture of the bank situation in the District of Columbia. Several of the closed banks have vinced of the authenticity of the mes- | drawn up plans for reopening, some sages. “He said that Kenneth identified a paper in the commissioner's possession as his handwriting. This paper was written on the boat as part of his con- | versation with McMath. Wore a Hood on Boat. “Kenneth did not speak while on the boat, but wrote out his questions and | answers to McMath. Kenneth wore & hood all the time. Commissioner the kidnaping whatever. Needham said the original demand was $250,000, that McMath had offered $25,000 and that Kenneth later told his brother Cyril to get as much as he could. McMath went up to $52.000, Needham said. but on the next contact agreed to $70,000. “Kenneth,” Needham continued. “be- lieved that Cyril had received $10.000 of the $70,000. He since learned that Cyril did not take that money. There was no stipulation as to the denomina- tion of the bills.” Needham sald that Keneth was very Needham said that ! | Kenneth's wife had no knowledge of have sold stock and others have pre- pared plans for strengthening their cap- ital structure. If these banks can suc- ceed in providing a sufficient capital structure to reopen as a part of tne general picture of the bank situation, and fit into the bank needs of this city, it is understood they would be permitted to go ahead. The Treasury has broad authorit: under the act of Congress. dur: ing the emergency giving the controller of the currency virtually absolute con- trol over all financial institutions in the District of Columbia. At the same time % is known to be the policy of the Treasury Department to take into consideration so far as possible the pro- posals which originate voluntarily out y ! of each of the closed banks. Evidently, however, they must not only be satis- factory to the Treasury as regards the individual bank itself, but also satis- factory as a part of the general pi ture of the financial situation in the | District of Columbia. Other Problems Pressing. Among the factors which apparently have delayed consideration of the Dis- turned to his brother's garage and left (much upset; that time and time again there at 2:50 to get his own little boy, he broke down and could not talk. He Kenneth, jr, 7, at & school house and | frequently said, according to the com- bring him home. | missioner, he was ashamed of himself. “The car he used was his own black | sedan. After he returned home he had i a bad fright because a grass fire broke out not far from the little house where the girl was. The fire department went down and put out the fire. He thought they would find her. | “In an effort to determine this, he went out and played golf on the Har- wichport golf course, because the | eighth fajrway goes very near the small | building. He did not learn anything, | but he did go to the building after| dark and took her to a house almost opposite where he lived. “She never was gagged because she| romised not to make any outcry. This The commissioner said that Kenneth told him he was very much worried on Friday and had decided to go to Father Columba Moran, a Harwich priest, tell his story, return the money and hope to be forgiven. ‘The charges against the two men wili be decided later, Needham said. They will be arraigned Monday, he added, in_Provincetown District Court. District Attorney William C. Cross- ley tonight said he would start vigorous prosecution with all possible expedi- tion. “I feel the magnitude of the crime cl}:’s for early trial and disposition,” he said. and took me in the front seat of an | auto and we drove a long way. “He told me my father was in_the back seat, but I was not to talk to him. | After a while he took off the blindfold and I looked around and my father was | in the back seat. “I got into the seat with my father. | Cyril Buck was driving and a man with | a hood over his head was sitting in the | front seat beside me. I think he was | the man who said he was my friend i and fed me.” Transfer to the Bob. After riding “quite a while” they reached Wychmere Harbor, where Lee's boat floated. “I got out and we got into a little boat and rowed cut to the Bob. The man with the hood told us to do this.” “The transfer of the money occurred d the boat,” Detective Bradford said, in the police version. “The masked man took the money to give to some ‘The man in the mask was Kenneth, ‘The masked man said he was going to give $50,000 to some one, was going to i keep $10,000 ‘or himself and was going to give $10 1) to the contact man, >t man returned the $10,- 000 to M _.th.” | This letr 360,000 in the possession of | the kidnapers, the amount recovered | Gommissioner Needham learned that something_had happered during the morning hours yesterday. He also learned of the money and questioned Lee. He made arrangements with the Coast Guard, who had been assisting in the search, for two boats from the base at W Hole. Late afternoon the two boats a] in the harbor, one blocked the entrance and the other pulled up beside Lee’s boat. ‘The officers boarded the craft and found McMath, “Peggy,” Oyril Buck and Harold Sawyer, an associate of Lee and McMath in the boat business, who had been with McMath during the night. The party then went to Woods Hole, where the all-night questionthg f lowed, with the return of the party here wd:yum the subsequent rapid ol- Voices Faith in Husband. After the arrest of the two men, Mrs. Cyril Buck expressed the utmost con- fidence in the innocence of her hus- band. “I have the utmost faith in my hus- band,” she said. “In fact, I see no reason for defending him for I am sure any part he played is an inno- { cent one.” Cyril was quoted by Gen. Needham, “I “brought the child McMath will verify that. job for In explaining how the “break” came, Gen. Needham said: “Finally (during the night's examination) as State De- tective John Stokes was questioning him, Cyril remarked: ‘Well. I'm on & 5] either way. If I take the rap. that will end it, wom't it?’ “I told him that it would not, that regardless, we would keep after it until we tracked down every one involved. Cyril then told his story.” It was after the men had been taken to the old Barnstable court house by four detectives that the money was re- covered. Kenneth was taken back to his house and the detectives asked for the money. At first, they said, $10,- 000 was produced by Mrs. Buck. Then the men were taken upstairs to a bed room and from a closet, close to the cel , & tin can was removed and in it $46,000 was found. The remaining $4,000 was found loose. Gen. Needham described the arrest of the two men as “a clean-up of the “l am delighted to announce” he sald, “the capture of two criminals in- volved in the most spectacular crime in the history of Massachusetts. * * * Full and complete credit for this won- derful job should be given to Lieut. Detective Ernest Bradford, who had 1:nd I suppose I'll have to pay b | charge of the investigation: Lieut. De- tectives Sherlock, Stokes, Ferrari, Bar- rett and Brouillard.’ MILK STRIKE CONFERENCE IS DIVIDED AT OUTSET iHnw York Producers at Odds Over Announcement Minimum Prices ‘Would Be Offered. trict of Columbia banks is the amount of time officials have had to devote to trying to yeopen banks in other parts of the country. This idea presumably was one of the outstanding reasons be- hind the only official statement ever | issued from the office of Mr. Cummings | at the Treasury Department. The state- ment pointed to the fact, backed up by statistics, that only 12!, per cent of the deposits of this city were tied up in the closed banks. Mr. Cummings’ big waiting room on | the first floor of the Treasury Depart- | ment is filled almost to overflowing all day long. The assistance of two of the Capital's | leading trade bodies was offered to Mr. Cummings yesterday in his efforts to reopen banks and free deposits. A delegation calling at the Treasury in- cluded Claude G. Owen, president of the Board of Trade: Thomas P. Littlepage, president of the Chamber of Commerce, and Robert J. Cottrell, executive secre- tary of the Trade Board. After the conference Mr. Cummings said they had offered to assist in what- ever way they could. While it is known that some of the &«::nl bn;kl nuemshown a willingness g0 a with any general plan agreed wmm have been resisting a x:i‘elr:er and wish to reopen under their names, ‘The 13 banks in the hands of con- servators virtually were closed on Fri- day night, March 3, just before the in- | auguration. The ident’s famous bank holiday order closing all institu- tions in the country was issued the next night. Twenty Washington banks were licensed to reopen 100 per cent on Tuesday, March 14, and 13 banks were placed in the hands of conservators on the ‘same day. They have been vir- tually closed since, doing only a re- stricted business, such as making change, giving access to safety deposit vaults and handling so-called “baillee accounts” for checking. An order for the liquidation of the insolvent Commercial National Bank has come from Justice James M. Proc- tor of the District Supreme Court offi- clally authorizing the receiver, Robert S;CB:'EY:‘LSY. l;xo progeed lnld conclude ivership and to sell asse the i.-.itution for the benefit of x:: | | St Film Pair to Remarry. LOS ANGELES, May 6 (#).—Notice of intention to marry was flled here today by Marion Sayers, motion picture actress, and James Murray, actor. They said they were married two years ago in Mexico, but were informed recently that the validity of the ceremony was doubtful. back ‘ ldflw he By the Associated Press. SYRACUSE, N. Y., May 6—Milk producers called here for a conference looking toward a State-wide wilk strike today found themselves divided at.the very outset. “Valiant Dust” by Percival Christopher Wren Author of “Beau Geste” conciliatory gesture, This_gesture, however, was declared by R. J. Clemons, executive secretary of the Rutland Producers’ Association, Inc., as unsatisfactory. “It has not changed the original in- tention of those I represent,” he said, “to fight for a minimum of 3}, cents & quart for 3 per cent milk at the farm.” Mr. Clemons emphasized, how- ever, that in no case was this to be interpreted as the sense of the confer- ence itself. “We have just got L Begins in Monday's Star