Evening Star Newspaper, May 17, 1933, Page 2

£ 000 ROT POLICE HALT MILK STRIKE {Threat- of Clubs and Tear Gas Subdues Farmers in Wisconsin. By the Assoclated Press. . MILWAUKEE, May 17.—Pive thou- sand deputy sheriffs, carrying riot sticks ‘which look like base ball bats and with ges bombs hitched to their belts, today soparently had subdued milk strikers along a 200-mile front. A thousand deputies were National Guardsmen serving as civilian_officers, srmed but without uniforms. State has not vet conceded the necessity of martial law. * Shawano County, trouble center where angry farmers won several encounters! with deputies, was quiet, and large juantities of mi% were flowing to the ur big plants of the Consolidated Badger Co-operative, which supplies milk to Chicago. About 1400 deputies cruised through the countryside in trucks. * Reports of violence brought prompt action last night. A crowd of more than 500 attempted to burn dairy farm buildings in nearby Racine County. One hundred and twenty Guardsmen were sped to the sceme. More than 1,000 strikers threatened vio- lence at Bonduel, Shawano County, scene of disorders Monday. To match their strength, Adjt. Gen. Ralph M. Tmmell sent 250 Milwaukee militiamen to Acting Sheriff Oscar C. Dettman, who already had ‘700 men at his dis- posal, including 225 Milwaukee cavalry- men. Advised that extensive shipments of milk were planned in the Milwaukee milk shed today, the sheriffs of Ozau kee, Waukesha, Racine and Milwaukee Counties met last night to co-ordinate plans for protecting trucks. Racine and Dcaukee Counties were given 75 Guards- men and Waukesha 125. Two hundred others were held in reserve for emer- gency duty. A disturbance on the streets of Mil- waukee last night by 200 enraged strikers and sympathizers was not quelled until city police rushed to the rescue of bleeding and bruised Waukesha County deputies. who successfully de- fended eight trucks of milk on a trip from the Durham Hill area to the plant of the Gridley Dairy Co. The trouble centered around the Gridley plant. ‘The deputies sald they ran picket fines on the 18-mile trip. but were pelted by bricks and rocks and clubs in the hands of the strikers as they sought to dump the milk. Later squads of Milwaukee police and deputies escorted the Waukesha officers in safety to the county line. BOYS SUMMONED IN POLICEMAN’S CASE kinton on Trial Before Judge @iven Charged With Assault- ing Base Ball Player. Officer Henry Clay Hinton, 42, of the third precinct, went on trial todsy be- fore Police Court Judge Ralph Given on a charge of assaulting James J. Sheehy, jr., 18, of 4711 Georgia avenue, during an sttempt to prevent Sheehy and his brother Clay, 15, from. piaying bell in an alley near their home, on April 27. Assistant District Attorney Michael F. Keogh, who is conducting the pros- ecution, summoned the Sheehy boys. 4nd Albert Pievy, 500 block of Sixth “Street northeast, to testify. * The government alleges Hinton, while flot in full uniform, attempted to stop the Sheehy boys from playing “catch” fn the rear of his house and during an énsuing struggle drew his gun on James Sheehy and later struck him over the head with a baton. The incident was Wwitnessed by Pie who ‘said on the atand today he had not known the officer or either of the boys prior to the occasion. Chapman Fowler is attorney for the defense. ALLEY DWELLING BILL TO COME UP TODAY |toe Rewritten Measure Will Be Con- sidered by Senate District Committee. ‘The alley dwelling bill, rewritten to provide two methods of improving alley conditions, is scheduled to come up for action in the Senate District Committee this afterncon. mittee also is likely to consider the bill to authorize merger of the Wash- ington and Georgetcwn Gas Light . and & bill by Senator King of Utah to broaden the gencral powers 6f the District Commissioners. One part of the revised alley bill contemplates purchase of alley areas| to be rebuilt for dwellings or com- mercial purposes and resale of, the new buildings to make the project self liquidating. The other plan is to convert some of the alleys into minor #ireets by opening up blind ends. An agency to be designated by the Presi- dent would determine which plan should be followed in any particular case. MRS. ROOSE\;ELT HEADS VIRGINIA PILGRIMAGE Mrs. Garner and Wives of Sena- tors in Party on Visit to Stratford. By the Associated Press. . The President's wife, the Vice Presi- dent’s wife and the wives of all the Senators picked this day for viewing progress of restoration of historic Stratford, home of the Lees, Westmore- land County, Va. Mrs. Roosevelt, from _preference. selected her accustomed post behind the wheel of her own blue sports car for the morning trip into Virginia. Mrs. Garner chose to be driven. A gallery of press women was given the rare privilege of seeing a “meeting” of the Senate ladies because they wanted to go0_along. ‘The whole thing, in fact, was planned as a holiday kind of trip, in which all should do exploring that most of them had long wanted to. but just hadn't ®ot, around to it. NEW JERSEY SUPPORTS REPEAL BY LANDSLIDE By the Associated Press. - NEWARK, N. J., May 17.—New Jer- sey, in an election that was only a formality, has become the fifth State to go on record for repeal of the eighteenth amendment. An almost solid phalanx of wets was mamed yesterday to attend a conven- tion to consider repeal of prohibition ‘The result was known beforehand be- cause prohibitionists failed to file can- didates in more than half the coun- ggi Deleunhws at bhrnehpledud t’o oflre- were chosen by a heavy ma, ®f the light vote cast. o Complete figures were not expected antil late today. Four wards of the 32 in Jersey City gave. For repeal ticket, 23404y for dry ticket, 6. Bank Officials George W. Offutt, jr., above, president and conservator of the Potomac Sav- ings Bank, and Thomas E. Jarrell, president of the Washington Savings Bank, today were designated as vice presidents of the new Central National Bank here. Either Leonard P. Steuart, president, or George F. Hoover, vice president. will represent the Northeast Bavings Bank in the merged inatitution. NORTHEAST SAVINGS JOINS IN MERGER; CAPITAL INCREASED (Continued From First Page.) the meeting, where the Northeast Bank offieially joined the consolidation. It was confidently expected that with- in a short time the Woodridge-La: don Savings and Commercial Banl which E. L. Norris is vice president and conservator, also would join the merger. With the Northeast Savings and the ‘Woodridge Banks added to the previous four, this would build up a six-bank consolidation, with possibility of still others coming in later. + Among the others which, it is under- stood, may come in are the Seventh Street Savings Bank and possibly the United States Savings Bank. The presi- dent of the latter, however, Col. Wade H. Cooper, is opposed to the institu- tion joining the consolidation. Chevy Chase Mentioned. The Chevy Chase Savings Bank continued to be mentioned today as & possible_member of the new nationsl bank, although final decision was un- derstood to be somewhat in the future,. ‘The meeting at the Willard was at. tended by members of the board of six of the banks, including the Woodridge- Langdon. President Graham presided as chair- man over the luncheon session spoke generally of the opportunities ;rovided by the merger. He expressed is confidence in its future and urged those present to_ support it strongly not only for the benefit of the deposi- tors but for the good of themselves and the community. A comprehensive statement on the new bank's position was presented to the directors by W. Irving Shuman of easury Department, who has rep- resented the department more exten- sively than any other one person in working out the merger. THE _EVENING GTO) CONSERATOR SEY OVERIL . OES Park Savings Bank Officials Alleged to Have Used Paper for R. F. C. Loan. STAR, WASHI h Dies in Georgia | | Officials of the Park Savings Bank witfout authority pledged to the Re- construction Finance Corporation as security for a loan $4,000 in first moartgage -notes belonging to the Robert E. Lee Chapger, United Daugh- ters of the Confederacy, it was charged in an equity suit in District Su- preme Court toda; ‘The action E, brought by th> chapter through its attorney, GNIE D. Horning, jr. against Richard Hargreaves, conservator of the bank, and against the bank as a corporation. After filing the bill Horning appeared before Justice James M. Proctor and obtained a rule to show cause why the - court should mot order Hargreaves to pay the plainyffs $4.000 in cash or, as an alternative, why the defendants should not be compelled promptly to repay $4.000 to the 1 Reserve Bank of Richmond. where the notes are bemg held, for redelivery of the notes to the plaintiff. . Interest Paid Annually. The bill alleges that the bank has had custody of the mortgage notes belonging to the plaintiff for several years and has collected for the plaintift the interest paid by Mrs. Mary Wells, maker of the notes. The mortgage is on premises at 1452 Park road. These notes, it is claimed, were in an envelope, earmarked with the plaintiff’s name, and held in the bank. On’ February 28 of this year, it is claimed, the $4,000 mortgage notes, to- gether with other securities worth $96.- 000, were turned over to the Reconstruc- tion Finance Corporatian, which loaned | BY the Associated Press. $78.000 to the Sank. " This loan was de-| ATHENS, Ga, May 17.—Representa- | posited in the Riggs National Bank and |tive Charles H. Brand, 72, Democrat, ’duwn out by the Park Savings, the bill | ruprecenting the tenth Georgla district, yiatos; died at his home here at 11 a.m. today after a long fliness. CHARLES H. BRAND. —Underwood Photo. C. H. BRAND, HOUSE MEMBER, IS DEAD Georgia Democrat ‘Was Stricken Before Present Session Opened. Foreclosure Threatened. Horning told the court that as soon ’ ol oaroi that (e notes | M- Brand had been confined &0 1 a had been ftaken from the bank, Mrs, | home here since last December. He had Wells was instructed not to make {ur- | been unable to go to Washington for the ther interest payments to the bank.|present session and was administered Bince that time. e sald, O om ~ has | the oath at his home by Judge Blanton served notice on Mrs. Wells to pay in- | Fortson. terest to it, and, since she refused, now | Prior to his_election to the Sixty- is threatening to foreclose. fifth Congress, Mr. Brand had served in 1O BELSHE SCORES |5 St s 74 AT CHEVY CHASE Court of his cireuit. Miller Takes 77, Indicating Mo His 16 years in Congress were marked by noteworthy service, especially in the Score Under 79 Will Qualify in Tourney. | Bleld of banking. had been a mem- ber of the Committee on Banking and Currency of the House. | A successor to serve out Mr. Brand's unexpired term will be selected at a special clection, the date of which will be set later by Gov. Eugene Talmadge. HOUSE WILL ADJOURN. | Rainey Arranges for House te Honor Brand. By the Associated Press. Upon hearing of the death of Repre- sentative Charles H. Brand in Athens, Ga., Speaker Rainey made arrange- ments for the House to adjourn in honor of the Georgia Congressman this afternoon at the conclusion of sched- uled important business. and early in the session was grant- ! ed an indefinite leave of absence be- cause of illness. As ranking Democrat on the House Banking Committee, he could have continued to have an important part in banking legislation this Congress. With his death Democratic member- ship in the House was reduced to 310. { There are 117 Republicans, § Farmer- Laborites and 3 vacancies. . U. S. FOREIGN TRADE FURTHER DECLINES 'Depcrtmentm:eme Reports Drop in Both Exports and Imports. M. Beishe, Golf Committee chairman st Indian Spring and inter- departmental golf champion, scored 2 74 today to take the lead in the quali- fying round of the Chevy Chase Cluo Invitation Golf Tournament. John R. Miller of Beaver Dam added a 77 to the three scores st that figure returned yes- terday and made it probable that no score over 719 will qualify in the first fight. Beishe played the first nine in 40. five above par, and came home over the last nime in 34, exactly par. Other leading scores today were: Charles Maginnis, Catholic Univer- sity, 78; Leo Cullinane, unattached, 83: Cariton’ Graves, Columbia, 83, and unattached. & round will end late today. y rounds are to start tomorrow morning. AMENDMENT MADE T0 R. F. C. MEASURE House Banking Committee Then @ives Approval to Senate Bill. By the Associated Press. Foreign trade of the United States declined further in April to take exports to $105,000,000, as compared with $108,- By the Assoctated Press. | The House Banking Committee today amended and approved the Senate bill The com- | to authorize the Reconstruction Finance | Corporation to buy up to $50,000,000 ! worth of preferred stock in insurance companies. One change eliminated the Senate forbidding future loans Praises Ceovoperation. Mr. S8human declared the p made 30 far could be attributed to the “splendid co-pperation” of the different e oracticn) results,” he sald, “have | language ““The practical results,” , “have | lan come because of full realization of the | railreads that pay salaries of more than principle of mutuality of interests ex-$17,500 & year. Instead, the commit- isting between the stockholders, depos- | tee inserted authority for the Recon- itors and the Treasury Department. struction Corporation to make rail loans “If ever there was a time when ex-|only if it finds the salaries pald are ecutives and stockholders or even the | commensurate With the services per- depositors of banks felt there was a|formed. ! division between the interests of the| The House committee left unchanged, Treasury and stockholding interests, |the Senate provision that before the that passed st the time of the bank | corporation buys preferred stock tnsur- holiday. So far as the Treasury De- |ance companies must agree to raise an partment is concerned, it never existed. | equal amount of new capital. “The happy results have been ac- It did, however, insert an amendment complished because men in these insti- | to limit to $50,000,000 the ampunt that tutions have put the depositors’ inter- i may be outstanding in insurance com- ests first, quite without regard to the. pany stocks at any one time. stockholders’ position. Chairman su‘;nn k'u lut.horg:g \z the commitiee make every e Cites Joint Intecest. bring the insurance bill and the Glass- “The new bank is going to succeed | Steagall bank reform measure, approved because of the absolute community of ynm;ld:y. before the House as soon as interest that is present in this meeting today, where the interests of approxi- TWO WOMEN ARE SLAIN ‘IN SIXTY-CENT ROBBERY mately 60,000 depositors are being con- sidered by stcckholders-depositors’ in- Police Claim Man, 21, Has Admit- 1 ted Firing Ten Times at Victims terests. “Depositors, stockholders and the ‘Treasury are now a unit in attempting to release the maximum amount of de- positors’ money at the earliest possible date. b.“’lk"hnh augurs ‘hfl l’l’“ u& mtur: o; inking in Wasl on, t out of Wi Vi i Te. this bank ncliday, which seemed at the | {REWest VirginiaiStors: moment almost a catastrophe, By the Associated Press. has arisen this community of interest. It! augurs well for the future also because not only the unlicensed, but also the | cording to police, that he killed two licepsed banks, now realize that the|women near here yesterday in a robbery snswer to the whole financial situation ; that netted him 60 c | is ‘sound banks.’* The youth, Omer said he shot Among the other speakers at the|mrs. Love Burch, 55, when he thought | meeting tcday were the chairmen of the | she was reaching for a gun after he Reorganization Committees of the 8iX|nad ordered her to hand over money. banks concerned. 'inu uughmu, l!:nher, ;;l ':lhl killed & tement Prepared. ‘ew moments later when.she ran to{ Sia i rod investigate her mother’s screams. ‘The problem of Eoreplflni a joint, Typy rating & small '“;cmmm:h L w”u'gkf’p“m" store in the bean settlement, 12 miles and s TS O A in the merger has occupled east of Moorefleld, during the absence v Orann Commit- | ©f her husband, who had gone to an- 35"1:%"::?: ctgfnmnu ;"Sol:lbwflptm:s other store they owned at Wardensville, especially. * A form was unglerstood to VA maat EMe UL phuiay Biate e y 1 |t MOOREFIELD, W. Va., May 17.—A 21-year-old youth admitted today, ac- = Brill told officers he fired 10 times at have been drawn up and substantial he two women. He was taken to Key- approved today. W. Va., for safe keeping. In addition to forma) approval by the , SeF. Washington Clearing House Association, the new bank received commendation rom the president of the District Bank- ers’ Association, C. H. Pope, who is vice president of the Munsey Trust Co. | Rail Manufacturer Dies. BETTENDORF, Iowa, May 17 (#)— 3 J. W. Bettendorf, 68, president of the The time when the new bank will be | Bettendorf Co. one of the Nation' ready to function was expected to be | largest manufacturers of railroad cars, announced later in the meef by Mr. | died at his home last night. Graham. While he had carefully re- frained from any public predictions, it | = been rumored had that the new bank hopes to get under way between June |House deciared the me 1 and Jun‘: 15, receive the support of plan should e stockholders 031,000 in the previous month, and im- rts to $88,000,000 {rom $94,859,000 the previous month, ‘The statistics, announced daily by the Commerce Department, showed & favor- able balance during April of $17,000,000, as_compal to $8573,000 in April, 1932. The April totals compared with exports for last April of $135,095,000 and imports of $126,522,000. The department said e: of cot- tor. totaled $16,742,000 during April, against $17,957,000 in March and $20,- 512,000 during April of 1932. Gold exports during April, under license, as a result of the restrictions impased by President Roosevelt, totaled $16,741,000, as compared with $28,123.- 000 in March and $49,509,000 in April, 1932. Gold imports totaled $6.769,000, against $19,271,000 in April, 1932, and $14,948,000 in March. Silver exports totaled $171,000, against $1,617,000 in April, 1932, and $269.000 in March. Imports of silver were $1.- 520,000, against $1,890,000 the corre- sponding month of last year and §1,- 693,000 in March. HUNGER STRIKE GETS WOMAN OUT OF JAIL Given Orders Release From Ticket-' Scalping Sentence After She Fasts Ten Days. (Prom the 5:30 Edition of Yesterday's Star.) A 10-day hunger strike staged at the District Jail by Miss Ethel Clawans, who was serving s 30-day sentence for “ticket scalping,” won her release Saturday before Judge Ralph Given at Police Court, it was learned y. Miss Clawans was seatenced to 30 days on May 2 when she defaulted in payment of & $250 fine upon conviction on a charge of operating as a railroad ticket broker without a license. Upon reaching jail, she refused to eat. Be- cause of “disorderly conduct,” accorde ing to reports to District officials, she was confined in a separate cell. e hunger strike continued until 11 when she took some sustenance. She was near & collapse, however, when she was brought bef Judge Given last Saturday when her release was ordered. The condition of Miss Clawans was brought to the attention of the court by her sister, Lillian, - SUES ELEANOR BOARDMAN Prober Asks $1,000 Fee for Find- ing Vidor With Girl. LOS ANGELES, May 17 (#).—Lucien In addition to the vice presidents of jand depositors. Wheeler, private investigator, was in the new consolidation representing the| The ldv-nhg of umnf a8 many uunmgu%wrtymzm( to col- three banks, made gbuc today, two of | funds as released for banking | ject a $1,000 ~closing fee” from Eleanor the other vice presidents or members of |and business pu was stressed in | Boardman, screen actress. the executive staff announced Saturday | the resolution e release of any part | Wheeler said he had been employed night when the merger was ft of these funds would help the business | by Miss Boardman to shadow announced, are John Poole, t | interests of Washington and contribute | Vi r, film director, from whom she re- and conservator of the Mederal-Ameri-|to the welfare of thousands of citizens, | cently was diverced. can National Bank & Trust Co., and | the statement added. He testified he crashed into an apart- Joshua Evans, jr. president and con- H. H. McKee, president of the Clear- “ment in Hollywood last December and servator of District National Bank. ing House Association, presided et the found Vidor, clsd in pajamas. Resolu ted by the Clearing special held late yesterday, Betty Hill, a studio manuscript girl. D. C., WED QUOTA DISMISSALS - PLAN IS MODIFIED; Clause for Consideration of Efficiency Inserted for Senate Action. The independent offices appropri tion bill, with the apportionment clause amended to require department heads' to consider efficiency as well as state quotas in acting on dismissal of Fed- eral employes, will be taken up in the! Senate within the next few days. | As 1t passed the House, the bill made | no reference to efficlency, and would have endangered the status of employes | from the District of Columbia and a number of over-quota states by direct- ing the departments to give due regard | to apportionment quotas in making dis- | | i miszals. Although the Senate Appropriations | Committee did not follow the recom- | mendation of the subcommittee in| charge of the bill, which favored strik- ing out the provision entirely, the com-' mfzm rewrote it to require that both; efficiency and apporticnment be con- sidered. Retirements Allowed. The committee made another change | in the bill which recognizes an appeal Government workers have been making to for mlnyhysars, namely, of allowing employes wit] Or more years of service to go on the retired list vol- untarily before reaching the regular re- tirement age. The House bill contained a section | providing that whenever an employe | with 30 years of service is involuntarly | separated from the service he could begin recelving an annuity, but would | have to continue to pay 3" per cent into the retirement fund until the regu- lar age of retirement is reached. On motion of Senator Byrnes, Democrat. of South Carolina, the committee amended the section so it would apply whenever an employe is “voluntarily or involun- tarily” separated from the service. There was a feeling in the committee that if there are employes with 30 years' of service who want to go on the retired list, they should be allowed to do 0. Garden Change Asked. Senator Robinson of Arkansas, Demo- {cratic leader, filed in th> Senate late yesterday an amendment which he will | offer to the bill when it comes up, to transfer the Botsnic Garden to the Department of Agriculture. This pro- posal wes recommended by the Budget Bureau. At present the Botanic Gar- | den 1s under control of the Joint Com- mittee on the Library. The Dl’oxmfl transfer would be a step toward co- ordination of the Government's green- house facilities. Senator Robinson's amendment reads as follows: “The Botanic Garden, together with| all records, property and personnel per- | taining therstc, is transferred to the Department of Agriculture, effective the | first day of the second month following | the enactment of this act, and the ap- | propriations for the support thereof are | hereby made available to the Depart- ment of Agriculture. Among the changes made in the bill | by the Senate ccmmittee vas the strik- | | ing out of the authority granted to the | | President by the House bill to modify or | cancel mail-carrying contracts. This feature of the bill probably will provoke considerable discussion on the flocr. | The bill, as reported, appropriates | approximately $543,000,000, of which | slightly more than $500,000,000 is for the various requirememts of the Vet- erans’ Administration. The remainder is for the independent bureaus and commissions of the Government. The Senate committee added only $167.000 to the House total, of which $150,000 s | for fleld work of the Interstate Com- merce Commission. U. S. BANKS TO SEND DELEGATE TO REICH| to Germany's Private Creditors Meet May 26 in Berlin, In- vited by Schacht. By the Associated Press. NEW YORK, May 17.—Representa- tives of banks having an interest in| Germany’s external debts voted yester- day to send a representative to Berlin to attend the meeting of the Reich's private creditors on May 26, in accord with the invitation of Dr. Hjalmar Schacht, president of the Reichsbank. Albert H. Wiggin, chairman of the Senior German Standstill Committee, will represent the American creditors if he can arrange to make the trip, it was announced. It was stated that he hoped to go and planned to sail at the end of the week. The bankers assembled hastily today when notified by the Federal Reserve Bank of receipt of Dr. Schacht's cabled invitation. Acting merely as an avenue of transmittal, the Federal Reserve promptly advised the Standstill Com- mittee and the banks who have func- tioned as houses of issue in the various German flotations. Schacht’s invitation was in accord with his statement last week as he was leaving American shores. He stated at that time that Germany would request consideration of a transfer moratorium on foreign obligations. any needs a favorable balance of trade of from 90,000,000 to 100.- 000,000 marks & month to meet all pay- ! ments on her external obligations, it iz !estimated. Last year the Reich aver- aged approximately 90,000,000 marks monthly, but in January and February. 1933, the amount had dropped to around 25,000,000 marks. The April figure was still lower, bankers report, attributed in pert to hostility to the Hitler regime. However, one-third of Germany's trade is with Russia, and not all the Russian credits are immediately avail- able for debt service, it was explained. NEW GENERAL ELECTION us' ISSUES BEAR 5 PER CENT Employes’ Bonds Limited in Re- demptions for Cash. By the Associated Press. NEW YORK, May 17.—General Elec- tric Co. announced today that its Em- plages’ Security Corporation bonds sold wMor all new issugs will bear 5 per cent interest, the additional 2 per cent heretofore paid by the company being | contingent upon earnings. Redemp- tions for cash will be limited to 10 | per cent of the total holdings each year. No additional payments above 5 per cent will be made until the company's earnings for its common stock are & full 6 per cent of the shares’ average book value. When this amount is earned 1 per cent additional will be paid on the bonds and when 7 per cent or more is earned 2 .cent will be added. Bonds of security corporation now ouf will not be affected. Their total on December 31 was $34,000,000. Firemen to Hold Carnival. PALLS CHURCH, Va., May 17 (Spe- cial) —The tenth annual carnival of the Falls Church Volunteer Pire - ment will be held June 16 through June 24, it has been announced here. R. W. Howard is chalrman of the Camd Committee. ESDAY, Security Corporation ! sidiary. The company val of stock of 10 -utilities Middle West. MAY 17, 1938. - Mitchell Prosecutors 7 l NITED STATES ATTORNEY GEORGE Z. MEDALIE. and his assistants, Thomas E. Dewey (left) and Murray I. Gurfein, pictured in the Federal Court Building, New York, when the trial of Charles E. Mitchell went into its third session. In presenting his case to the jury, Mr. Medalie | charged the former National City Bank’s chairman with gigantic tax frauds against the Government and wnnounced that he would prove his ac- cusations through testimony of Mr. Mitchell's own friends and business associates. TESTIMONY BEGINS IN MITCHELL TRIAL U. S. Official and Employe of Morgan Are First to Appear. By the Associated Press. NEW YORK, May 17.—Testimony be- gan today in the income tax fraud trial of Charles E. Mitchell, former president of the National City Bank, who is ac- cused of evading payment of any tax in | or three wecks has been moderating ! SP 11929 and 1920 on income of more than | fiyctfiations in the dollar quotation. | $4,000,000. The first witness was a Government official and the second was an employe of the banking house of J. P. Morgan & Co. The Morgan firm for a loan it made City stock part of this case. The Government charges that al- though this stock was pledged by Mitchell for the loan he pretended to give more than half of it to his wife held as collateral Mitchell National in order to turn an actual net income into an apparent loss so that he would have to pay no income tax. Reconvenes at 9:35 AM. The trial of Mitchell reconvened in Federal Court at 9:35 am. George Z. Medalle, Federal prose- cutor, and Max D. Steuer, Mitchells chief counsel, conferred with Judge Henry W. Goddard st the bench for 25 minutes immediately after court had opened. Opening statements to the jury were completed yesterday. After today's conference at the bench Steuer returned to the counsel table and held a prolonged whispered conversa. tion with his client, after which attor: neys for both sides again went into conference with Judge Goddard. The second conference lasted 10 min- utes, and then FPrederick Sommers. deputy collector of internal revenue, returns of Mitchell for 1929 and 193C. Mitchell's Federal income tax returns for 1929 and 1930 were introduced in evidence and, questioned by Medalic, Sommers went over their contents in e tall. Leonard A. Keyes, office manager at J. P. Morgan & Co, in charge of the company’s files, then took the stand. Reveals Mitchell Debt. h Keyes, after examining a ledger he clrfl{d with him, said Mitchell on December 20, 1929, owed the Morgan firm $6,096,170. On'December 31, 1931, he owed the Morgans, Keyes said, $5,858,038.30 and the same sum on March %, 1932. At Medalie's request, Keyes produced a list of the collateral backing the loans iby the Morgans to Mitchell. was any written notifica- tion by Mitchell that he had sold to Mrs. Mitchell in 1929 18.300 shlr.e‘l cpll' National City Bank stock, replied .“no. ords there anl to Mitchell. Reads Letter to Jury. edalie read to the jury a letter dated Oculob!l‘ 20, 1929, from B'/l‘i;:hfll. flao the Morgan company, &Irans or trans- fer to the Morgans' possession, as col- lateral, of certain of his securities, in- cluding National City Bank stock, in exchange for & loan “not to exceed $12,000,000” He then read a letter from the National City Co. to the Mor- gans, dated October 31, 1929, turning over to them as collateral, 18,300 shares of National City Bank stock, and asking, on Mitchell's behalf, s loan of $6,751.- 905.50. After presenting evidence about the Morgan loans to Mitchell. Medalie intro- duced in evidence records of loans by the Morgans to W. D. Thornton, presi- dent of the Greene Cananea Copper Co., to whom Mitchell claims he sold 8500 shares of Anaconda Coj stock 11830 at so great a loss that it relieved him of the necessity of paying any in- come tax that year. The Government charges that this sale was just as spurious as the one to Mrs. Mitche'l the year before is alleged to have be-n. Rerds Stock Transfers. Under cross-examination by Steuer, | Keyes read a long list of stock trans- fers covering the years 1930, 1931, 1932 and the early part of 1933, Mitchell having added to or diminished his col- lateral as the market rell or rosc. Steuer asked Keyes to prepare & statement showing how much Mitchell now owes the Morgans and what se- curities they now hold as collateral. The next witness was Willlam Wer- ling, sssistant to the head accountant of the National City Co. He testified that the company had had from 1917 to February, 1930, & cus- todian account for “E. Rendt Mitchell,” whom he identified as Mrs. Mitchell. i Photostatic copies of the account ledger | I were introduced in evidence. At 11:56 a.m. court adjourned until 1 pm. Addressing the jury late yesterday, Steuer, in & voice that ranged from a is then to be made the victim? underdog? No. We meed big fish, and Charles E. Mitchell was & big fish.” Insull Reorganization Date Set. CHICAGO, May 17 (#).—Federal Judge Walter C. Lindley yesterday set 1 as the date for hearing the reorganization plan proposed for the United Public Service Co.. Insull sub- owns & majority operating in the which figures in| asked if in the Morgan rec-| The stock was in possession of the Mor- company, held as collateral on al gency powers to the gove ‘Some | ance the budget and deal wil cial situation by a vote of 91 to 63. The | —A. P. Photo. PARIS LAYS SELLING OFDLARTOU S Operator in Millions Called “Equalization Board” as Control Eases. By the Assoclated Press PARIS, May 17.—A big dollar oper- ator, described in banking circles as | the “Washington Equalization Board,” is said to be the influence that for two | Relaxation of selling by this operator allowed the dollar to show natural buoyancy today and it opened at 21.80 francs In pre-Bourse buying, subse- | quently going to 22.05 on purchases by ! persons having more confidence in America than in Europe. The close yesterday was 21.75 francs. The centralized selling by the “Wash- ington Equalization Board” apparently has been neither commercial nor spec- ulative. Brokers estimated that it amounted to millions daily. 7oda; advance brought lively covering opera- tions by speculators. The United States Government has no counterpart of the British equaliza tion fund, which is used to prevent ex: | cessive fluctuations in sterling. ;\ Gains Shown in London. | LONDON, May 17 (#).—The Amer- ican dollar spurted upward today on the strength of President Roosevelt's | disarmament message and German | stocks advanced because of the concili- atory tone of Chancellor Hitler's speech | before the Reichstag. | The dollar registered a net gain of | 45, cents, principally because the Roosevelt message was interpreted as clearing the international outlook. The stock market did not learn of the contents of the Hitler speech until after hours, but the Young Loan 5las rose quickly to 52 and one broker | stated. “Everybody wants to buy. We |are swamped with orders from New York."” V. S. BANKERS SURPRISED. | Refuse to Believe Operation in Paris | Backed at Washington. NEW YORK, May 17 (#).—Bankers here expressed surprise at reports from Paris that an important exchange operator there had been described as the “Washington equalization board” because of his activitics in moderating fluctuations in American dollar quota- tions. In most quarters it was not believed the unnamed dollar operator was acting for the United States Government, | which, unlike Great Britain, has no exchange equalization fund. The British pound sterling. in addi- tion to the European gold currencies, displayed renewed weakness in foreign exchange markets tcday. The pound was off nearly 4 cents from yesterday's close, selling at $3.88':. The French franc sagged to 4.52 cents and Dutch guilders dropped more than ; cent to 46.25 cents. Belgian belgas, Swiss francs and German marks were heavy. In connection with the guilder, it was said that the futures of this exchange | were selling today at a discount for the first time in several months. French franc futures were selling flat. The falling rates of the principal continental currencies generally were attributed to fears that scme of the countries were considering suspension of the gold standard. TWO D. C. GIRLS GUESTS AT COURT PRESENTATION Misses Audrey Warren Pearl and Margaret Wait to Meet Queen. By the Associated Press. LONDON, May 17.—Mrs. Ray Ather- | in | ton, wife of the American charge d'al- faires, will present eight American debutantes and matrons tonight at the third court of the season at Bucking- ham Palace. Several hundred Britsh women also will curtsey to the Quee=n | _The court will be deprived of the | King’s presence as it was last wesk. Tt was decided today that his rheumatism, although yielding to treatment, makes it | inadvisable for him to wear & full dress uniform for a long period. A new system has been designed to prevent s wait outside the palace by the presentees. No cars will be al- lowed to enter the palace gates before 7 p.m, Last week the cars were allowed to enter at 5:30, which meant & wait of three hours in the palace grounds before the palace doors were opened. The Americans to be presented to- night are Mrs. Peter Arrangton, War- renton, N. C.; Mrs. Hugh Bullock and Miss Jullet Kaufman of New York Ciiy, Miss Virginia Kent, Ardmore, Pa.; Miss May Henderson Osborne, Chicago; Miss Katherine Lahm Parker, Fort Sheriden. Miss Audrey Warren Pearl and Miss aret Wait, Washington, D. C. Belgian Powers Approved. BRUSSELS, Belgium, May 17 (®). The Belgian senate today gave eme: ernment to bal- th the finan- bill passed the chamber May 12 by a vote of 96 to 82, after 29 hours of con- tinuous debate. Admits Insurance Killing. HAMMOND, Ind., May 17 (#).—Mrs. Daisy Harmen, & widow, pleaded gullty in Criminal Court today to poisoning her 13-year-old ward, Anthony Brabca- der, to get insurance, and was sentenced to life inprisgnment. MLEAN STEPS001 INTRUSTEE g Compromise Gives Former Publisher and Wife $50,000 in 78 Weekly Payments. In a compromise agreement, Edward B. McLean, former publisher of the Washington Post, today resigned his co-trusteeship with the American Se- curity & Trust Co. of the estate of his father, John R. McLean, The agreement was in the form of & consent decree handed down by Justice James M. Proctor in District Supreme Court. Attorneys for McLean and the trust company had been negotiating for 8 week, and George B. Fraser, one of McLean'’s councel, returned only yes- terday from Montreal, where McLean is staying. The decree settles all litigation be- tween McLean and the American Se- curity & Trust Co. Each had sought the other's removal as trustee. charging mismanagement of the estate. $50,000 to Be Paid. Under the terms of the agreement, $50,000 will be paid to McLean and his estranged wife, Mrs. Evalyn Walsh Mc- Lean, from a fund set aside for amorti- zation of mortgage obligations and as & depreciation reserve for renewal of the plant and machinery of the Cincinnati Enquirer. This money is payable in 78 o u:‘n ;gel%yh lmt';llmem-s‘ 60 per cent J 0 to McLean ant cent to his wu‘e. e 1f the net income of the estate is not sufficient to make these payments, the American Security & Trust Co. is au- thorized by the court to loan money to the estate for this purpose. The trust company also is authorized to dispose in any way it sees fit of cer- tain assets in the form of stock now owned by the trust estate, if this is nec- essary in order to meet obligations of the estate and to secure curtailments of promissory notes of former trustees. Loans made by the American Security & Trust Co. to the Post were approved by the court, and were made obligations of the trust estate if the Post is unable to repay them. May Retain Attorneys. ‘The American Security & Trust Co., ! as trustee of the estate, is authorized by the decree to continue to retain and | to pay fees to their attorneys, Wilton J. Lambert, Frederick McKenney, aulding Flannery and Bowdin Craig hill, and to charge payment of these | fees to the principal of the trust estate. i George B. Fraser, who, with Willlam { Leahy, has represented McLean in the { negotiations, was appointed financial i agent and attorney for McLean, at & salary of $10,000 a year. Payment of this salary, however, was made con- tingent upon whether there was a suf- | ficient net income from the estate to enable a minimum payment of $666.66 per week to be made to McLean and Mrs. McLean. Authorization was given the Ameri- can Security & Trust Co. to pay Ralj D. Quinter and Lucian H. Mercier for their services as guardians ad litem and attorneys for McLean's children. PRESIDENT’S PLAN ON REORGANIZATION READY NEXT WEEK (Continued From First Page.) merit system would be used in dete: mining whether a clerk would remal in the bureau permanently or be fur- loughed. e Commerce Department officials also emphasized that an effort would be made to disintegrate as much as pos- sible the so-called Hoover-Klein ma- chine within this bureau, which was reported to have been exceedingly active in the 1928 and the 1932 presi- dential campaigns. ‘While the bureau had been in ex- istence for many years prior to Mr. Hoover's entrance into the Harding cabinet. it was the former President that lifted it from virtually obscurity to & world-wide agency. Julius Klein, Assistant Secretary of Commerce dur- ing the last administration, was ele- vated from a division chief to director i of the bure The organization was built up under his direction before he became a junior cabinet member and prior_to Mr. Hoover's entrance into the White House. The brand of politics reported flayed by the bureau in the last two cam- paigns was brought to the public's tention by Al Smith in his Newark E h last October. He charged then that its activities had been partly re- sponsible for his defeat in 1928. Officials said today that only those officials of the old ue, whose work for the Government been “out- standing.” will be retained. Although the majority of them are reported on civil service status, they were only. cording to the records, “blanketed in™ last year. This move was caught by Senator Harrison of Mississippi. who obtained a ruling from the Civil Service Commission that those who were placed on civil service status in such a mar- ner could be “blanketed out.” Interior Secretary Ickes said today that Louls R. Glavis, who was removed from Government service 26 years ago during the heat of the historic Pinchot. Dallinger feud of the Taft administra- tion, has been recalled from private life to direct the investigative activities of his department. Ickes said Glavis has been appointed to head a new bureau of investigation created as an economy move. SLAYER HELD VICTIM OF TRANSITORY MANIA Alienist Testifies at Trial - of Llewellyn A. Banks Charged With Murder. By the Associated Press. EUGENE, Oreg., May 17.—An alien- ist, testifying for the defense, declared yesterday at the trial of Llewellyn A. Banks, 62-year-old editor and orchard: ist, that Banks was & victim of “trans- itory nmnia, otherwise known as coms pulsory or impulsive mania or mental confusion,” when he shot and killed George J. Prescott, Medford constable, two months ago. ¥ The witness, Dr. 5. E. Josephi of Portland, followed Mrs. Edith rtine Banks to the stand. Banks and his wife are being tried on a joint indictz ment for first-degree murder. Prescott was shot to death when attempted to serve a warrant for Bal arrest. The killing climaxed an tensely bitter and protracted political disturbance in which Banks was the central figure. The Medford news- paper publisher had insisted he was being persecuted at the hands of cor- rupt county officials. “I do not think Banks is insane now,” Dr. Josephi testified. “I do not think he was insane before the tragedy. But from the evidence I think this man was a victim of such a degree of mental £ n as to render irrespon- First Bloodshed Reported. MEXICO CITY, May 17 (®).—Re- g:u reached here yesterday of the t bloodshed in the presidential cam- paign just getting under way. One man was killed and two in- jured when a demonstration in favor of Gen. Lazaro Cardenas, who is seek- :nl loveur:ml;ni p;:ty nomination, was interrup! cubays, near hers, Mon- day night.