Evening Star Newspaper, May 12, 1933, Page 1

WEATHER, (U. 8. Weather Bureau Forecast.) Cloudy and somewhat warmer, prob- ably occasional shows morrow; terday; lowest, 55, at Full report on Page B-11. Closing N. Y. Markets, Pages 14 and 15 J, 5 No. 32,518. post office, Wa light variable winds. peratures—Highest, 65, at 3:30 p.m. yes- ers tonight and to- ‘Tem- 4 am. y. Entered as second class matter shington, D. C. @h ¢ Foeni WITH SUNDAY MORNING EDITION g Shar. WASHINGTON, D. C., FRIDAY, MAY 12, 1933—FORTY-TWO PAGES. ARMAMENT LINKED WITH ECONOMY AT WHITE HOUSE TALK Schacht and Roosevelt Agree That Success of Parley Demands Arms Cut. REICHSTAG SUMMONED TO CONSIDER DEADLOCK Geneva Meeting Blocked by Ger- T ‘vsal to Accept London Proposal. man By the Assoclated Press. A joint statement issued today by President Roosevelt and Dr. Hjalmar Schacht, German representative, said both were ccnvinced that the World Economic Conference could not be a success unless “along with econcmic disarmament there is military dis- ermament.” “We emphasized the necessity of a £peedy elimination of the obstacles to international trade,” the communica- tion said, “and we feel that the creation of stable conditions in the monetary fleld is equally important. “Econcmic and monetary questions fre £o interdependent that the adjust- ment of both must necessarily go hand in hand.” Parleys Concluded. The statement, issued at the conclu- gion of the informal parleys with Ger- many's representative preparatory to the World Economic Conference in Londcn, said “quick and far-reaching solutions ' are necessary to save the economic life of the world.” Until restoration of order in eco- somic life has relieved unemployment, it added, “all possible endeavors mus!‘ be made to help the unemployed by sound internal credit expansion and ! by a synchronized international pro- gram for the mobilization of public and p"rivnte credit for productive pur- poses. The text said: | “In our conversations we have been guided by the hope that the World| Econcraic and Monetary Conference | may be successful. “Quick and far-reaching solutions | are necessary to save the economic life of the world. Co-operation Imperative. “We are convinced that this aim can- not be achieved unless, along with economic disarmament, there is mili- tary disarmament. We emphasize the necessity of a speedy elimination of the obstacles to international trade, and we feel that the creation of stable con- ditions in the monetary field is equally important. Economic and monetary questions are so interdependent that the adjustment of both must neces-| 3 y go hand in hand. “Until the restoration of order in economic life has had its effect in re- Jieving unemployment, all possible en-| deavors must be made to help the unemployed by sound internal credit expansion and by a synchronized in- | | | Final Plans Made .For Farm Strike; Leaders Advise Forces to Avoid Violence and Picketing. By the Assoclated Press. With the scheduled beginning of the naticnal farm strike less than 24 hours away, leaders of the National Farmers' Holiday Association gathered in St. Paul today for a final conference. Mily Reno, national president, an- nounced that he had wired President Roosevelt inquiring whether he in- tended to declare a moratorium on farm mortgages. Gov. Oison Very Il President Roosevelt in an announce- ment frcm Washington, coincident with the signing of the farm inflation. bill, urged relaxation in farm mortgage foreclosures until the effects of the new law could be determined. The day brought a setback to the Holiday Association when Gov. Floyd B. ! Olson of Mirnesota, one of the chief backers in official circles of the Holiday Association’s demand for cost of pro- ducticn, underwent an emergency op- eration for appendicitis. Reno, who was in St. Paul today, said a statement would be issued tomorrow advising farmers how to make their hol- (Continued on Page 2, Column 4.) NATIONS APPROVE TARF ARMISTICE All Eight Countries Accept American Proposal at London Meeting. By the Associated Press LONDON, May 12—The American |broposal for an international tariff truce was unanimously adopted today at a meeting of the Organizing Commttee of the World Economic Conference. The Armistice was agreed upon after the representatives of the eight nations on the committee had been in session more than three hours. Norman H. Davis, President Roose- velt's negotiator, came from the con- ference rcom in the foreign office, his face wreathed in smiles. “It is good news,” he said. Reservations Entered, In the course of the negotiations each country participating had an oppor- tunity to express views supporting the broad principles of the armistice and making it effective immediately. It was learned that a number of minor reservations were entered. ‘The United States was represented by Davis, Ray Atherton, charge d'affaires, and Allen W. Dulles, Mr. Davis’ aide. The Ambassadors of the other na- tions on the Organizing Committee Tep- resented their governments. Sir John Simon, the British foreign secretary, presiced over the meeting. Agreement on the truce will enable Mr. Davis to leave London immediately for Geneva, where the World Disarma- mg}; Conference is in the throes of a cri tinational program for the mobiliza- tion of public and private credit for | productive purposes. International co-| operation is needed above all else to Testore eccnomic life and to insure peace. We fully agree in our firm re-! solve to help the world situation by at- tacking present problems vigorously | along these lines.” | German readiness to agree to a world | tariff truce “with minor reservations” | had been announced earlier by Dr. Schacit, who said it had been Ger- ma intention to do so all along.| He remarked he did not understand why so much confusion on the point | had been created. He said Germary's| rescrvations were minor compared to| those of Great Britain and France. Agreement Soon. Dr. Schacht indicated his country’s @greement to a truce soon would be made known formally. He did not state what the reservations were. Great Britain and France have both specified provisions designed to enable them to raise tariffs to meet depreciation of cur- | Tencies. Strong efforts have been made here As well as abroad to dissolve German ob- jections to the British arms reduction plan, and similar diplomatic suasion is expected to be employed by the Presi- dent in his forthcoming talks with high Japanese officials. Mr. Roosevelt has taken disarmament as well as war debts into his own hands and is sparing no effort to bring about acceptance of the plan proposed at Geneva by Prime Minister Ramsay Mac- Donald of Great Britain. Germany has been a stumbling block E‘ the way of progress toward adoption, it officials here feel that Japan like- wise will present objections in due time. French opposition has been dispelled, at least temporarily, by Mr. Roosevelt's mssurances that the -United States will * help guarantee international peace by some form of consultative pact if defi- mite arms limitation is achieved. Japanese Due May 23. The MacDonald plan, which includes Buch & ‘“security” provision, wculd abolish heavy mobile guns, heavy tanks, bombing from the air and poison gas. 1t likewise would set definite limita- | tions on the size of Continental Euro- gm armies and would require that ey be of a short-term conscript Imilitia type rather than comprised of a | professional volunteer long-term service poldiery. Germany, with its professional army. Seld out against this latter change and sought the right to increase its arma- jment. The President in his talks with Dr. Schacht, tactfully sought to change | this attitude. ¢ The disermament problem is regarded here as certain to enter into the talks the President will have with the Jap- anece_economic _gelegation _due here (Continued on Page 4, Column 1.) | e FOUR BELIEVED KILLED | Only One Survivor Found After | Car Plunges Into Creek. CLARKSBURG, W. Va., May 12 (®). —An automobile containing five persons | plunged into the rain-swollen waters of EIk Creek shortly after midnight. Joe Polis, 18, of Fairmont, apparently the only survivor, sald his sister, Mary Polis, 26; his sister-in-law, Mrs. Mary Polis, 24, of Pairmont; Miss Gail Merri- field, 24, of Mannington, and the driver, s Barrackville barber, were in g car, Withdrawal Clause. The feature of the negotiations here yesterday was the revelation that the agreement contained a clause permitting withdrawal or adjustments in the event | that prices become unduly unsettled.| This clause is considered in British circles as a cafeguard against the further devaluation of the American dollar. The text of the project, the Associated Press learned, contains three paragraphs. They provide that “it is-essential to ths success of the World Economic Con- ference” that measures which misdirect or paralyze trade are fopbidden by mutual agreement from the outset the conference and asks the various governments “to refrain from any fresh initiative calculated to aggravate exist- ing difficulties which tend to paralyze international trade.” NAT-CHICAGO GAME OFF Teams Will Play Double-Header Sunday, Due to Rain. CHICAGO, May 12 (#).—The Wash- ington Nationals and the Chicago White Sox were forced to remain idle here this afternoon because of rain. The teams will meet in a double- header on Sunday. ' SALES MARKET ‘Washington stands out as a sales market not only on account of its thousands of visitors at this time, but be- cause of the high average earn- ing power of its permanent population. Washington merchants ap- peal to the daily needs and desires of this vast audience through the columns of The Star. 4 Yesterday’s Advertising. (Local Display) es. The Evening Star.. 46,330 16,423 10,541 6,969 2,869 [— 36,802 2d Newspaper. . . .. 3d Newspaper. . ... 4th Newspaper. . . .. 5th Newspaper Total (Four other newspapers) It has been estimated that there are 134,921 families in the District of Columbia, the great majority of whom read The Star every day. The in- terest in news of the day and news of the stores is vital to most ¢ erxone.w!xohu“hom. a FARM BILL SIGNED, PLANS FOR RELIEF President Requests Delay in Foreclosures Until Aid Is Ready. POWER OVER PRICES AND INFLATION GAINED Peek Immediately Named to Direct Administration of Far-Reaching Federal Program. By the Associated Press. President Roosevelt shortly after noon today signed into law the massive bill to raise farm prices, giving him extraordinary inflationary powers and enabling easement of the agricultural mortgage burden. The President also issued & formal statement urging farm mortgage cred- itors to abstain from foreclosures pend- ing operation of the bill. 'In taking over unprecedented man- !agement over currency, Mr. Roosevelt has made it clear he was ready to use it “when, as, and if, it may be neces- The legislation gives him power to increase paper money, reduce the gold content cf the dollar and to fix a ratio {and farm leaders surrounded the Presi- between gold and silver. The farm provision gives the admin- istration, wide latitude to control pro- duction either by acreage allotments or by the leasing of lands to withdraw them from production. Peek to Act at Once. In accordance with the policy of putting provisions of the farm bill into execution as soon as possible. Secre- tary of Agriculture Wallace formally designated George N. Peek of Moline, 111, chief administrator of the measure. Peek will take cath of office at cnce. A farm equipment manufacturer and student of farm problems, he will carry out the provisions of the sweeping bill designed to raise farm prices after the President and the Secretary of Agri- culture decide the exact course tc pursue. Peek’s title is administrator of the agricultural adjustment act. He was a Republican until 1928 and | broke away from the party to support | Alfred E. Smith because of dissatisfac- tion with the Republican administra- tion’s attitude toward farm relief pro- posal. The refinancing of agricultural mort- gages allows for a lower interest rate, with a three-year moratorium on inter- est payments. A group of Government, congressional dent’s desk as he affixed his signature. ‘Wallace Is Present. In the party were Secretary of Agri- culture Wallace, Henry Morgenthau, ir., the governor of the new Farm Credit Administration; Chairmen Smith and Jones of the Senate and House Agricul- ture Committees; Representative Ful- mer, Democrat, of South Carolina; M. L. Wilson of Montana, an advocate of the legislation; Edward A. O'Neal, presi- dent of the American Farm Bureau Federation; L. J. Taber, master of the National Grange; Mordecai Ezekial, Jerome Frank and W. W. Meyers of the Department of Agriculture. In signing the agriculture debt relief measure into law, the President said in his formal statement: “I have just' signed the farm relief| bill, which ‘includes the refinancing of farm debts. “The act extends relief not only to farmer borrowers, but to mortgage creditors as well. “Holders of farm mortgages will have the privilege of exchanging them for Federal land bank bonds, the in- terest payments upon which are to be guaranteed by the Treasury of the United States. Terms More Liberal. “Farmers whose mortgages are to be exchanged for these bonds will reap the benefit of lower interest rates and more liberal terms of payment. “It is to the interest of all the peopie of the United States that the benefits of this act. should be extended to ail wno are in need of them and that none should be deprived of them through ignorance or precipitate action. “For this reason, I appeal particu- larly to mortgage creditors and all oth- ers who have money claims against farmers. Every effort will be made to administer the act promptly, consider- ately and justly. “All preparation that could be made in advance by officers of the Federal Land Bank system has been made. . “However, applications cannot be acted upon instantly. “Time for examination, appraisal and perfection of records will be neces- sary. “T urge upon mortgage creditors, therefore, until full opportunity has (Continued on Page 2, Column 2.) COMMITTEES CONSIDER GLASS BANK MEASURE Agreement Delayed in Both Houses, but Action by Senators Is Forecast Tomorrow. Both Senate and House Banking Ccmmittees considered the Glass bank reform bill in executive session today, but reached no agreement. In the Senate committee the entire session was taken up by an explana- tion of new provisions in i Seator Glass, Democrat, of Virginia, chairman of the subcommittee which drafted it. Members predicted as they emerged from the session that the committee would act tomorrow. - DIVORCES FAIRBANKS Joan Crawford Awarded Decree in Los Angeles Court. ~ LOS ANGELES, May 12 () —Some- what nervous, Joan Crawford, movie actress, ascended a Superior Court wit- ness stand today, described instances of “a jealous and suspicious” attitude of Douglas Fairbanks, jr, and won a divorce from him. The actress ap- g?ndlnwurtlnlmrtsporuom- Her divorce, ending what has been referred to at times as Hollywood’s St Tomerrew HIKEYELT RGHES| A £ d ‘,‘ BONUS UNITS COOL T0 FOREST J6BS Move to Unite Two Wings Under Glassford’s Leader- ship Is Pressed. Black May Receive Series of Furloughs While Heading Bank By the Associated Press. ATLANTA, May 12.—A series of 30-day furloughs for Eugene R. Black, governor of the Atlanta Federal Reserve Bank, during the fuil period of his service as gov- ernor of the Federal Reserve Sys- tem was expected to be approved at a meeting today of the Atlanta bank directors. This would hold the Atlanta place for Black until he completes his tour of Wash- President Roosevelt's offer of work in the reforestation camps, today failed to | evoke enthusiasm in the ranks cf the| bonus marchers both at Fort Hunt, Va., | and in Washington. | Albert G. Sellers, field officer of the Veterans' Liason Committee, said at Fort Hunt, what the veterans want is a living wage. He said they would not | be satisfied with $1 a day, he would | not be satisfied with it, and that al-| though he could not speak for all he| would advise against its acceptance. | Many individuals in the ranks at the | Fort Hunt camp echoed his views. “We came here to get the bonus, not to chop trees,” they said. Meanwhile | a movement to unite the “lefl” | and “right” wings under leadership of | Brig. Gen. Pelham D. Glassford, former superintendent of police, gained im- | petus as leaders of the “right wing” planned to set up a recruiting tent be- side the two registration tents of the “left wing” group, at Sixth street and Pennsylvania avenue. Glassford Undecided. Leaders of the “right wing” held a | series of conferences this morning con- cerning the feasibility of inducing the | former police chief to lead them in their battle for immediate cash payment of the bonus. Gen. Glassford was ap- proached on the matter yesterday, but declared he had given it no thought and was not in position to say what his at. titude would be. He pointed out, how- ever, that he can hardly give favorable consideration to such a proposition, un- less asked to do so by either the White House or Congress. Despite his apparent lack of interest, leaders of the “right wing” devoted con- | siderable time last night and this morn- ing to discussion of the possibility of “drafting” Glassford. | Meanwhile, the “right wingers” still were standing or sitting around on the rain-soaked ground at East Seaton | Park, Third street and Maine avenue southwest, while the larger “left wing” group was comfortably esconced at Fort Hunt, Va. Despite lack of food, blankets, shel- ter and other camping facilities, 1=aders of the “right wingers” today seemed as determined as ever not to go to the Virginia fort, unless Emanuel Levin, leader of the “left wing™” group, is ex- pelled. Next Move in Doubt. After spending the night on a park- ing lot in the rear of the auditcrium the “right wingers,” led by Harold B. Foulkrod and Mike Thomas, returned to East Seaton Park this morning. How long they would remain there or where they would go if forced to leave, their leaders did not know. “We don't know what the next move is going to be,” said Thomas. “All we know is that we're not going down to Fort Hunt and get mixed up with a bunch of Reds. My idea, personally, is to stay right here. If the police insist on putting us cut, let 'em pick us up and carry us out.” Thomas was visited this morning by Joseph Salzman, who, with George Allman, led 200 Brooklyn bonus march- ers into the city late vesterday. Salz- man declared his grocup had been di- rected to the “left wing” registration tent, where they were placed in busses and taken to Fort Hunt “before we real- ized what it was all about.” “I'm not a Communist,” Salzman said. “I'm an American Legionnaire. I am here to collect the bonus. I thought there was something fishy about the Government giving us all those tents and ccts and things. I don’t know yet whether we’ll stay at Fort Hunt or not, but if the Reds get t00 noisy I'm going to get out, whether my men follow me or not. I'd rather come up here and sleep cn the ground with these boys than to lose my self- rRe:g:t_:’t by selling out to a bunch of Will Confer With Allman. Salzman added he would return to the fort for a conference with Allman. (When Salzman and Allman arrived at the registration tent, about 5:30 p.m. (Continued on Page 5, Column 1.) U. S. TO SELL COTTON 19,306 Bales to Be Auctioned at New Orleans Tuesday. Henry Morgenthau, jr., chairman of the Farm Board, announced today that the last remaining cotton of the Sta- bilization Corporation, 19,306 bales, would be sold to the highest bidder at the corporation’s office at New Orleans next Tuesday. All of the cotton is now in storage at various forelgn locations. Twelve thousand bales are at Shanghai, with other consignments at Genoa and Venice, Italy; Dunkirk, o 2 France, an | where. ington duty. Gov. Black, now in Wash- ington, was selected by President Roosevelt to head the Federal Reserve System while the admin- istration _measures affecting cur- rency inflation are being put into effect. While Gov. Black is handling the Federal Reserve System, the Federal Reserve operations in the Sixth District will be adminis- tered by W. S. Johns. depul governor of the Atlanta bfl‘Jk. SUPPLY BILL VOTED WITH RETIREMENTS Drastic 30-Year Rider Kept in Independent Offices Measure by House. The 1934 independent offices appro- priation bill, with its drastic rider in- tact, was passed by the House today, 249 'to 118. The bill now goes to the | Senate. Two days were devoted to considera- tion of the appropriation items in the mezsure, but the House took no time Wwhatever to discuss the legislative pr wistons which so vitally affect Gover nent employes in Washington and else- Reading of these provisions was even suspended because a special rule precluded amendments. Tne important legislative rider, de- | signed to bring about greater economies and efficiency in the Federal service, | provides for selective, involuntary Te- | | tirement of 30-year employes, 90-day | rotative administrative furloughs and separations on a State quota basis. Consideration Complete. Consideration of the bill was com- pleted late yesterday and a motion to recommit it to the Appropriations Com- mittee voted down 255 to 116. Finai passage was delayed, however, because of the late hour. Only one major change was made in the bill—inclusion of an item of $8,000,- 000 to insure the maintenance of exist- ing regional offices of the Veterars® Administration. In making this addi- ticn, the House for the first time ig- nored_the rocemmendations of Presi- dent Roosevelt. The $8,000,000 item brought the total appropriations contained in the bill to $543,573,936. As originally reported to the House the measure carried a total of $535,573,936. The increase was sponsored by & Democrat, Representative ‘McCormack of Massachusetts. The House approved it by a vote of 140 to 29, despite the in- sistence of Representative Woodrum, Democrat of Virginia, in charge of the bill, that additional money is nct needed to keep the regional offices open. Changes Arc Blocked. A number of other attempts to either add or reduce appropriation items were blocked on a point or order or voted down. Chief among the pro- posed amendments was one by Repre- sentative Traux, Democrat of Ohio, which would have made available $2,- 400,000,000 for cash payment of the bonus to World War veterans. This amendment was rejected on a point of order as was a proposed amendment to add $500,000 to the appropriation for the Valuation Bureau of the Interstate Commerce Commission. An item of $50,000 for continuing the ethnological work of the Smithsonian Institution was allowed to remain in the bill, although Representative Parker, Democrat of Georgia, made a vigorous effort to have the amount re- duced to $25,000. He argued that the Smithsonian Institution is overcrowded with ethnological trophies and he lieved the Government should stop “all this foolishness” ih view of the dis- tressing economic situation. His amend- ment was defeated 49 to 29. .DAIL PASSES BUDGET Uproar Marks De Valera’s Defense of Fiscal Measure. DUBLIN, May 12 (#.—The M Eireann today passed the government’s budget resolution by a vote of 73 to 53. The vote came after a session in which an uproar broke out while Prest- dent lzer t\;‘llflg‘u was replying to criti- cisms e budget. Members from both sides exchanged d | many angry words before order was re- stored, b FEDERAANERAN 'HAY JON WERGER Possibility of Inclusion Dis- cussed, but Session Ends in Silence. After a long conference of conserva- | tors of several of Washington's closed | banks, held in the board room of ths ;FedtraLAmericln Netional Bank & | Trust Co., this noon, the possibility of | that institution entering into a merger with other banks was freely discussed. | Such action would bring a sixth bani into the present merger plan. At the conclusion of the meeting, John Pole, conservator of the Federal- American National Bank & Trust Co., | declined to make any statement, other than to say that he had made no | definite recommendations as yet to the | officials of his own bank. He mads no comment cn his own attitude toward the proposed néw central bank. Five Now on List. Five Capital banking institutions al- ready are virtually committed to the merger plan—the District National, Po- tomac Savings Bank, Washington Sav- |mgs Bank, Woodridge-Langdon Savings & Commercial Bank and the United States Savings Bank. The consolidation drive is being car- ried on under the so-called “Spokane plan,” which is 8 formula first used suc- | cessfully in Spokane, Wash. It since has been used successfully in reopening banks in other cities. | " This plan lays down certain gefinite | requirements as to the raising of new capital, the amount of surplus needed, and the way in which frozen assets are to be taken care of. The exact amounts of new capital to be raised vary with different banks, that is, in proportion v their size. | Calls for New Bank. } The plan calls for the organization of an entirely new bank which is to take over all the “prime assets” of all | the individual banks entering the mer- ger. All good assets, which are frozen, as well as doubtful assets are to be | segregated and kept entirely separate from the new central bank. They will be liquidated by conservators or trustees, as favorable opportunities are afforded and to the best advantage of the de- positors. The assets which the new bank will buy from the closed banks “will be so clean,” the sponsors of the plan state, “that almost 100 per cent could be bor- rowed on them from the Federal Re- serve.” While the “Spokane plan” can be applied to a single bank, it also is 50 elastic that it can be applied to as many banks as meet new capital and all other requirements. The District National Bank, the first to outline the plan to its stockholders and depositors and ask approval, stated that $500,000 common stock must be sold and $500,000 preferred subscribed by the Reconstruction Finance Cor- poration in order to produce $1,000,- 000 in new capital. The amount of new capital to be raised by the other banks in the merger will be decided shortly. Officials of the Franklin National Bank, which is endeavcring to retain its identity as a unit bank, reported further agreements to their offer from their stockholders and depositors. ‘The cfficials of the Industrial Savings Bank reported progress in their efforts to raise new capital by the sale of stock to their clients and the general public. ‘The Industrial hopes to raise the needed (Continued on Page 2, Column 1) FIRE FATAL TO FOUR Mother and Three Children Burned to Death in Home. ELWOOD, Ind, May 12 (P.—A mother and her three children were burned to death today when fire de- stroyed their home here. The victims were Mrs. Eva Sosbe, 42, and her daughters, Marjorie, 8; Marion, 17, and Beulah, 19. Cleveland Sosbe, husband and father of the victims, was working at the time. Two sons, Rich- ard, ‘15, and Kenneth, 21, and Ken- neth’s wife escaped in their night clothing, unable to aid the victims. The origin of the fire was unknown. The Sosbe family had moved into the house only yesterday. GUIDE FOR READERS Page. | | “From Press to Home Within an Hour” ‘The Star’s Carrier system coversevery city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. Yesterday’s Circulation, 122,723 sk () Means Associated Pr TWO CENTS. IVEANS SAYS BEER RING KILLED CHLD WHILE MOVING HIM Ex-U. S. Agent Declares Baby | Was Taken From Crib With- out Use of Ladder. {SLAIN NEW JERSEY MEN NAMED AS PRINCIPALS A ( Defendant in Fraud Case Alzof Claims He Counted Ransom Money Paid by Lindbergh. ‘The McLean and the Jafsie ran- som money in the Lindbergh kid- naping case, totaling $150,000, is in the Elizabethport Banking Co., Elizabeth, N. J, Gaston B. Means told the court, as he concluded his testimony in the conspiracy case against him and Norman T. (the Fox) Whitaker in District Supreme Court this afternoon. Means said that the money was in the name of Max Hassel, New Jersey whisky runner, who was killed some time ago and who has been named by Means as one of the kidnaping gang. The Lindbergh baby was kidnaped by agents of Max Hassell and Max Green- berg, New Jersey beer runners, who were found shot to death in a hotel room at Elizabeth, N. J, April 12, and the child was accidentally killed on March 7 a year ago when the kidnapers dropped it when moving it from a hid- ing place, Gaston B. Means, testifying in his trial for conspiring with Norman T. Whitaker to defraud Mrs. Evalyn Walsh McLean, declared to a jury in District Supreme Court today Hassell and Greenberg, Means said he had been informed, were delivering beer to servants at the Lindbergh house by means of operatives. These “oper- atives” carried three bottles of beer to the Lindbergh home on the night of the kidnaping, Means related, and took the baby away with them without the use of a ladder. According to Means' bizarre story, | “connections” of Hassell and Green- berg carried the baby to a whisky dug- out in New Jerscy and kept it in hiding for A week. The kidnapers were about to remove the baby to another hiding place, Means blandly recounted, when one of them droped the baby, causing it | | to strike its head a fatal blow. Says He Counted Money. Means also testified that about April 11 in Chicago he saw and counted the $49,000 of the $50,000 ransom money | given to kidnapers by Dr. John F. Con- | don, the “Jafsie” of the Lindbergh kid- | | nap negotiations. Means, resuming the melodramatic tale of his self-styled inside contacts with the kidnapers, declared that “Irv- ing Fenton,” whom he identified yes- terday as a confederate of “Wemnfiwnl iHenderson." ring-leader in the kidnap- ing, told him, prior to Means' discovery that the baby was dead, that the kid-| napers had two babies—one of them the real Lindbergh child in hiding at, Aiken, S. C.. and the other a decoy; child at Norfolk. Means declared Fenton promised at one time to deliver both babies to Mrs. }hlclflln at her coitage at Aiken upon | the payment of the $100,000 which she \ already had intrusted to Means for ran- | som purposes. Continuing to reel off sensational episode after episode in a story which the Government will brand as purely fictitious, Means said Fenton had men- tioned that before the actual kid- naping took place Col. Lindbergh had hidden -his son in a closet to trick the servants into believing the child had been kidnaped. Means did not elaborate on this angle. Resumes His Story. Means took up his story where he hed left off yesterday, at the opening of this morning’s session. He said Henderson told him at Aiken, S. C., on April 22 that he would have Fenton meet him at Concord, N. C., the next day. Means said he went to Concord and Fenton was there. He said after recounting what had occurred at Aiken he showed Fenton his authorization, signed by Mrs. McLean, to give $100,000 to “Neil Williams.” It was brought out earlier in the trial that “Neil Williams” was the name to be applied to “The Fox.” Means said he reported to Fenton that Mrs. McLean was ‘“very restless, high-strung and had to resort to the use of a sleeping potion.” Means said that he told Fenton he had no positive information from Henderson that the child he had seen at Aiken was the Lindbergh baby and that he had come to Concord to get a movie camera to take pictures of the baby walking around. He said Fenton NEW TAX STUDIED 10 FINANCE HUGE PUBLIC WORKS PLAN Revised Construction and Industrial Control Bill Given to President. CONGRESSICNAL ACTION NEXT WEEK PREDICTED Sales Levies Proposed to Raise Annual Liquidation Fund of $220,000,000. By the Associated Press. A revised draft of the public con- struction-industrial control bill was car- { ried to the White House today by Sen- ator Wagner, Democrat of New York, for a final check with President Roose- velt and a last-minute determination of the taxation program. Speaker Rainey predicted to news- paper men that the $3,300,000,000 meas- ure would be ready for congressional presentation next week. Wagner held a brief conferenc with Donald Richberg. representative of or- ganized labor, just the White House with of the revolutionary plan for controlling and speeding up industry. Other Features Completed. He sald the form of taxation to fi- nance the proposed construction pro- gram would be the last thing deter- { mined, indicating other features were complete, Before the bill was laid before the President there was a_final conference participated in by Budget Director Douglas, Richberg and Hugh Johnston, chairman of the old War Industries Board, as well as the Senators. All have taken part in drafting the provi- sicns for control of industry. Out of the conference the committee expected to bring definite recommenda- tions on taxation. Sales Taxes Proposed. Speculation on the form of taxation to be imposed to raise an annual liqui- dation fund of $220,000,000 has cen- tered around forms of sales taxes. Rainey conjectured in sn interview on levies on coffee, tea, bananas, peppers and spices; but emphasized—as do other legislators—that conclusions are still to be reached. The program was to be presented to the cabinet today by the President. The proposed legislation embodies au- thority for industry to enter agreements designed to stabilize production, im- prove wages and better working condi- tions. It was virtually completed last night by the President’s special com- mittee. Robert L. Lund, president of the Na- tional Association of Manufacturers, sald hundreds of thousands of men would be put back to work under the section of the bill which would allow industry to work out re-employment agreements. He said industry was will- ing to co-operate fully toward re-estab- lishing purchasing power by putting men to work. May Kill 30-Hour Week Bill. House Democratic leaders expresse belief that the measure would ghvia(z the necessity of acting on the 30-hour week work bill at this sessicn, asserting that under the proposed measure in- dustry would be permitted to agree on minimum wages and shorter hours. Representative Bymns of Tennessee, the Democratic leader, said the public works program would include upward of $250,000.000 for highway constructicn and $32,000,000 for naval building. Talk of new taxes to finance the pro- gram drew immediate opposition from some Democratic leaders, including Chairman Harrison of the Senate Fin:.nce l(‘:iomn;‘llkt‘. “I weuld rather cut down construction than impose new taxes,” he said. Rainey Proposes Tax. Speaker Rainey said he did not know what taxation would be suggested to raise about $200,000,000 for the in- terest and sinking fund, but he said 5250.00%000 could be raised by a levy on “coffee, tea, bananas, p spices.” lighel “‘Several years ago when I was on the Ways and Means Committee, I made an investigation and found viat it would be possible to raise an enormous amount on revenue through a small tax on these commodities,” Rainey told re- porters. Ch;‘:"l;lenpflce gl ll:‘ose commodities is 'ow and a tax on them w be hardly noticed.” U Against Sales Tax. Rainey said that he thought the House was “against a general sales tax, but if President Roosevelt wants it hard enough, I guess he could get it.” He added, however, it had not been sug- gested. 5 "’I‘he1 suggested lfldcrease in taxes on lower incomes would be very unpopu- lar,” he said. Sl “We would get plenty of revenue if the eighteenth amendment is repealed,” he cdntinued. “It would solve the question of raising additional taxes.” was greatly perturbed about the plans for motion pictures and said the taking of any movies would greatly hurt the kidnapers’ cause because they had tentions of collecting ransom money in several other places, including the people in Norfolk, who were negotiating for the return of the baby. “I understand the Lindbergh baby is dead,” Means said he told Fenton. Fenton replied, Means said. “That is not so. e baby you saw is the Lind- bergh baby. There could be no question Rainey said a proposal to set up a joint congressional commitiee to study Taising taxes by making it mandatory to blend grain alcohol with gasoline was being considered, but he did not expect action this session. The proposal is for a heavy tax on gasoline not blended with alcohol made from farm products. Gl it GANDHI’S DEATH FEARED about that.” Names Whisky Runners. Fenton told him then, Means said, that there were associated with him in the kidnaping Max Hassel and Max Greenberg, whisky runners of New Jersey. “Fenton told me,” Means said, “that I knew both Greenberg and Hassel and tried to refresh my memory, but I could not remember them.” Fenton then explained, according to Means, that connections of Hassel and Greenberg had sold beer and some whisky to Lindbergh’s servants. Means said that Fenton told him that some months before the disappearance of the baby, Col. Lindbergh, a practical | . it his child in a closet and fooled the servants and his wife lost or kidnaped. “Penton said,” Means declared, “that (Continued on Page 2, Column 5.) Ship Fast on Rocks. NEW YORK, May 12 (#).—Radio Ma- rine Corporation reported today it had pwm;?-mmmc.hesmmer Glory the Seas reporting &!flhl.ll:u:l Asama _was fast roc! al mv’m Galapagos Lslands, on the AS HE GROWS WEAKER Begins Fifth Day of Projected Three Weeks’ Fast Without Strength to Move. By the Assoclated Pres, POONA, India, May 12.—The Mahat- ma Gandhi began the fifth day of his projected three weeks' fast today too weak to move without being carried. Pears that he may die increased since he is determined the fast protest- ing the treatment of the lowest Indian caste, the “untouchables,” will not end before noon May 29. He wad too weak today even to raise his arms to operate his ever-present spinning wheel. His physician said he has failed in health more rapidly than was expected. Muthar in Mexico City. that the | credentials