Evening Star Newspaper, May 19, 1933, Page 2

$3000000 ERROR | IN MITCHELL DEAL Mistake in Ledger of Trans- I metions Between Financier, and Wife Revealed. By the Associated Press, NEW YORK, May 19.—A $3,000,000 error in the ledger recording business transactions of Mrs, Charles E. Mitchell in connection with a stock sale by which the Government contends Mitchell sought to evade his income tax was described in Federal Court to- day. Mitchell is on trial charged with cheating the Government of taxes on an alleged $4,000,000 income in 1929 and 1930 by fake sales of securities, the one i 1929 to his wife, - Seoretary Tells of Accounts. Bdward Barrett, vice president of the National City Bank, which Mitchell for- merly headed, continued his testimony concerning his activities when he was Mitchell's secretary and handled all Mrs.” Mitchell's” finencial affairs. . He told of numerous instances in Wwhich Mitche!l participated in syndicates and pools in his wife’s bebalf, all these transactions being entered in ledger. H-> said, under redirect examination United States Attorney George Z. [édalie, that Mitchell's sale to his wife of 18,300 National City Bank shares, the sale of which the Government says was a fake, also was entered in this Jedger. The purchase price, he said, was entered i‘nlt-he ledg!dr as uzla';efio. i h the price eed on etters s begveen.‘)rdiwheu and his wife was $3,000,000 more than that. Declared Oversight. “How did the first figure of the pur- ase price happen to be omitted? ‘Odlfle L “It was an oversight on the part of my secretary,” Barrett replied. “You mean your secretary made mistake and forgot to put it in?” Barreti also testified again, under Medalie's questioning, as to numerous letters between the Mitchells regarding financial activities entered into by Mitchell in his wife’s behalf, Many of these letters, addressed to “Dear Charles” and “Dear Elizabeth,” have been entered as evidence. Barrett said that although such let- ters were always written to record these transactions, Mrs. Mitchell did not always write hers herself and some- times for months at & time did not know what Mitchell was doing for her. Answered Her Letters. &t authority $o answer for her,” Barrett said. Barrett said that when Mitchell in- him he had sold Mrs. mmhdl sldehnwhchemm‘;n?.}a Mitchell ')‘nf on benea e af the old-fashioned Federal relic of the last century. of —but the Mitchell case hardly draws & political line. Rather it's regarded by many as & struggle of Medalie to vindi- cate himself with his Democratic su- periors. Alike in Appearance, Outwardly there is no sign of this 4ssue, for Medalie and Steuer are much alike in appearance. Steuer is older, of course, gray and grizzled, while Medalie is ruddy-faced and bright-eyed. But they are of the same height and the same build, their features are much alike, they both wear glasses, they both are bald, they recline in similar postures and they both speak slowly in a low ‘Voice. In their background the difference is found, and their background is such that a paradox is presented by Steuer's sitting on Mitchell’s side of the oflcloth- eovered counsel table while Medalie conducts the prosecution, MERIT TO CONTINUE CIVIL SERVICE RULE, DECLARES MITCHELL " (Continued Prom First Page.) L — et == LU a pamphlet was issued by the Civil Service Commission showing the addi- tions to and withdrawals from civil service since the merit system went dnto effect 50 years ago. In the 12 years covering the adminis- trations of Presidents Harding, Coolidge and Hoover there were 57,985 positions put under the civil service either by executive order or legislation and 532 taken out, for a net gain of 57,263. In the Harding administration the in- clusions were 2,014, against withdraw- als of 514; Coolidge, 20,372 and 7, re- spectively, and Hoover, 35,509 and 111. 832 Postal Additions. ‘The largest addition under President Harding was 832 employes in post offices which advanced in class—a Youtine procedure. Another large group —approximately 491 in the Labor Em- Ployment Service — was also removed dn his term President Coolidge’s principal inclu- Fions were 2,083 war-time employes: 412 village letter carriers; 733 post ©office laborers; 1,594 postal workers in loffices advanced in class; 317 Indian iService employes, and 2433 in the Prohibition Bureau when it Wwas trans- derred from the Treasury to the Depart- ent of Justice. There were approxi- mately 10,681 employes blanketed in #hat categary described as “normal igrowth”; that is. new groups created, @and enlargements of units mnot ini- atially established under civil service. Under President Hoover the coverage Uncluded 184 attorneys in the Veterans fAdministration, 339 employes in_the Bureau of Foreign and Domestic Com- merce and 234 miscellaneous positions in the Department of Justice. There fwere 1,613 employes in soldiers’ homes ibrought in by act of Congress, while funder the head of “normal growth” the Stotal is placed at 31,917, an &pproxi- mation. < ¢ During President Wilson's eight years ithere were 169812 additions to civil #service, of which 164,908 were classed FEDERAL JUDGE HENRY W. GODDARD Is presiding at the trial in New York of Charles E. Mitchell, former chairman of the National City Bank, on charges of evading income tax payments. —A. P. Photo. STATENENT AS FAR EAST FIRATING President and Soong Agree|charges Order Must Precede World Peace. A joint statement today by President Roosevelt and T. V. Soong, vice presi- dent of the executive Yuan and minis- ter of finance of the Republic of China, said the two had discussed the serious developments in the Far East, and ex- pressed the hope that these hostilities may soon cease in order that the pres- ent effort of all the nations of the world to re-establish political and economic peace may succeed. The statement said It was considered “essential that the price of silver, the great medium of exchange of the East, should be enhanced and stabllized.” Agreement ' Is Noted., The joint statement follows in full: “At the conclusion of our conversa- tions we note with profound gratifica- tion that we are in agreement in re- gard to the practical measures which must be taken for a solution of the major problems which today confront the world. “We agree that economic stability cannot be achieved without political tranquility and that economic disarma- ment can be obtained only in & world in which military disarmament is pos- sible. It is our ardent hope that peace may be assured and that to this end practical measures of disarmament may soon be adopted, In this connection our thoughts naturally have turned to the serious developments in the Far East, which have disturbed the peace |, of the world during the past two years. ‘There the military forces of two great natjons have been engaged in destruc- tive hostilities. We trust that these hostilities may soon cease in order that the present effort of all the nations of the world to re-establish political and economic peace may succeed. Chaos Must Give Way. “We are in entire agreement that unreasonable obstacles to inter- national trade must be removed and that the present financial and monetary chaos must be replaced by order. In this connection we consider it essential that the price of sliver, the great me- dium of exchange of East, should be enhanced and stabilized. We are in the closest agreement as to many other measures which must be adopted for the rehabilitation of the economic life of China and of the world and we are both resolved to approach the problems of the World Economic Conference, as well as the problems of the Disarma- ment Conference, with the determina- tion necessary to bring their labors to sliccess.” TIENTSIN BOMBING TAKES HEAVY TOLL; STATION WRECKED ~—-(Pontinied Frop First Bage) Japanese were received with the utmost Teserve. JAPANESE NEAR PEIPING. TOKIO, May 19 (#).—Rengo (Japa- nese) News Agency dispatches from the North China war zone said today that the 8th Japanese Division of Lieut. Gen. Yoshikazo Nishi had occupied Hwaiju, 30 miles north of Peiping, and then contizued in the direction of Shunyl. Chinese resistance was described as very slight. The 14th Infantry Brigade of Maj. Gen. Heljiro Hattori occupied Kichow, while the vanguard of the 6th Division of Lieut. Gen. Masayemon Sakamoto was only 33 miles east of Peiping. BOMBER ALARMS PEIPING. PEIPING, May 19 (#).—An alrplane, identified as Japenese, carrying four large bombs, flew over this city this morning. Anti-aircraft guns went into action, but the plane was not struck. Reports reaching here concurred that a virtual truce exists on all fronts in North China. In the Lian River ares, the Chinese | reported they had completed concen- | tration at Lutai, while the spearhead of the Japanese and Manchukuan forces was & few miles to the west of Tang- shan, showing no evidence of a further advance. The main body of the allied | troops meanwhile was said to be at| Kaping, east of Tangshan. Unverified Chinese reports stated that bands of irresponsibles east of the Lwan | were forming & “Tenegade army and | threatening to_advance on Tientsin.” | This was considered unlikely. North of Peiping, the Chinese claimed that their major lines Temained at Miyum, 35 miles away, and that there | had been no fighting thereabouts for three days. The Japanese legation today denied that notification had been given to| forefgn diplomats, that Peiping and Tientsin would be occupied immediately | unless the Chinese military opposition | in North China ceased. Spokesmen_for the American and British legations said they had not heard such reports and characterized them as absurd, The military attache at the British legation branded as untrue reports that the gusrds had been increased at the legation. $as “normal growth.” The withdrawals Stotaled 4,297, which included 1145 8 ty collectors of internal revenue, $about 176 deputy marshals snd 3,264 ¥ surtmen, all of whom came out by oen- H Al action. Any shifts it might be desired wo upset by the new administration could be handled by executive orders if they had been sccomplished by this means. Tegislative enactments, of course, u‘mn new legislation. would On June 20 the junior-senior prom will ke held, e oM Seminary Term Ends June 12, LEONARDTOWN, Md., May 19 (Spe- cial). —The St. Mary's. Female Semi- nary, St. Marys City, will close on June 12, with commencement exercises in the school auditorfum. There will eight high school graduates and six girl graduate from the junior college. EVENING EDUCATOR NAMED 10 SHOALS BOARD Arthur Morgan Had Wide Experience in Similar River Work. By the Assoclated Press. President Roosevelt today named Arthur Morgan, president of Antioch College, in Ohio, as chairman of the Tennessee Valley authority. Mr. Roosevelt, who yesterday signed the Muscle Shoals bill, regards Morgan as exceptionally qualified to carry out the Tennessee Valley program. Mor- gan was in charge of flood control work on the Miami River, in Ohio, and has been associated with similar develop- ments. He has plenned and directed more than 70 conservaiion and flood control works, and is well acquainted with the South, having been in charge of rec- lamation works such as the $8,000,000 project for the St. Francis Valley in Arkansas. He was supervising engineer of the Government drainage investiga- tions in 1907-1909. Visited White House. Also he has drafted or revised the drainage codes for 10 or more States. He has been & frequent visitor at the White House lately, in connection with the Shoals project. Morgan has been president of Antioch College since 1922. Hoping to get this program into early action, Mr. Roosevelt is looking for the other two men to comprise the board of the Government corporation. More than 150 names are under consideration. Meanwhile, a Department of Justice investigation has been started into that private companies which have leased Muscle Shoals in recent years misused and damaged the hydro- electsic plant. A flat denial of the charges was made_today in & telegram to Presi- | dent Roosevelt from Thomas W. Mar- tin, head of the Alabama Power Co. He requested that the investigation provided for in the Tennessee Valley authority measure be facilitated to de- velop facts. As soon as funds are 8] ted. construction of a dam at Cove Creek in the Clinch River in Tennessee will be started as one of the first steps in the Tennessee Valley program. Speculators Warned. In signing the Muscle Shoals meas- ure, Mr. Roosevelt warned against land speculators. The land development phase of the progrem is the President’s own and if it succeeds in Tennessee he intends to extend it to other parts of the country. ‘What Mr. Roosevelt is striving for is the employment of thousands of idle men, rehabilitation of agriculture on reclaimed land, reforestation and full development of navigation and water- power Tesources. An enthusiastic group from Cangrese. | including Senator Norris of Nebraska and Senators and Representatives from the Shoals area, applauded vigorously as the President put his name to the law, which for a dozen years they had | struggled futilely to enact. Norris said: “The law marks an epoch in the history of our national life. It is a monument to the victorious ending of a 12-year struggle, waged on behalf of the common people against the com- bined forces of monopoly and human eed. ‘The President issued no formal statement on land speculation, but ‘made sure that his warning be distri- buted by the press. The land develop- ment program is a dream of model communities, of industry brought to the country, of land utilized for its| best purpose, of new forests growing where ancient ones have been wiped out, of streams protected against de- structive floods, used to their full capa- city for navigation and generation of inexpensive electricity. Ickes Starts Probe, ‘The Government Corporation will operate the Muscle Shoals plant for the production and sale of power, and is authorized to bulld, lease or pur- chase transmission lines to carry the energy to nearby communities for sale at low rates. The nitrate plant is to become an experimental work shop for development of cheap fertilizer. The investigation by the Justice De- partment concerns charges brought to the President by Secretary of the In- terior Ickes. ter complaints he sent an investigator to the Shoals, and the latter's report was understood to con- tend that the Alabama Power Co. and the Tennessee Electric Power Co. had improperly and destructively used the Muscle Shoals substation to inter- change power. At Birmingham President Martin of the Alabama company denied anything irregular had taken place. In Wash- ington Maj. Gen. Lytle Brown, chief of Army engineers, who has had control of the plaut. said the same. Neverthe- less, a thorougn Federal inquiry is in prospect, which, it appeared likely, would be directed by Huston Thomp- son, former chairinan of the Federal Trade Commisison. GERMANY ACCEPTS BRITISH ARMS PLAN AS AGREEMENT BASIS (Continued From First Page.) no disarmament will be too drastic for Germany if other nations accept it. Two Results Demanded. Announcing Germany’s acceptance of the British plan, Herr Nadolny said: “The German people maintain and demand that the conference produce two results—first, security by disarm- ament of the heavily armed states, and, second, achievement of equality rights for Germany.” After the meeting had been ad- journed to tomorrow the German rep- resentatives told newspaper correspond- ents that Germany's acceptance of the British draft as the basis of an arms convention meant that his government would not press any fundamental changes in that draft. Much depends on what the heavily armed nations do, he explained. but some of the German amendments which have been presented will be withdrawn, some will be modified and others will be maintained. A number of the chief delegates, meanwhile, awaited from Davis an exact definition of the Washington stand concerning participation in an international pact against an aggressor. ‘Want Light on Program. ‘They desired especially an elucida- tion of the American view of a six- point program, including rigid inter- national supervision of armament; par- ticipation in a world-wide agreement of non-resort to force, helping the League of Nations to identify the ag- gressor, refusing assistance to the ag- gressor after identification; participa- tion in arms embargoes and abandon- ment of neutrality rights in case of war. . Formal sessions of the conference ‘were omitted yesterday to enable a study by the delegates of the Berlin and Washington pronouncements. 3,500 on Hunger Strike. WARSAW, Poland, May 19 (#).— Thirty-five hundred employes of an be | artificlal silk factory at Tomaszow are on hunger strike as the result of a dis- pute over wages. The workers are re- maining in the factory day and night, sefusing either 1o eat o Lo work, [4 nous Report By the Associated Press. HARRISBURG, Pa, May 19.—Mrs. Cornelia Bryce Pinchot, wife of the Governor, todey warned that Pennsyl- vania must rid ‘itself of the “sweat- shop,” which she charged is a menace to business as we'l as the children it | employs. | e State's First Lady, who recently | “picketed” with youthful strikers in a needlecraft center, has completed a voluminous report of her personal in- quiries. | The report emphasizes the importance | of eliminating cheaply operated, loosely- regulated factories. She charges: They set up unfair competition. ‘They operate under insanitary condi- tions. They hold wages to a point where the" MRS. PINCHOT WARNS HER STATE *SWEATSHOP” MENACES BUSINESS Children Not Only Ones Gravely Endangered, Volumi- Emphasizes. workers' standard of living is shattered. The report is to be an important factor in the State’s new drive to strengthen child labor regulations and will be added to the workers' testimony given before the Governors special in- vestigating committee. Recently young_ textile strikers told the Governor and Mrs. Pinchot they were forced to work for as low as 57 cents a week, working long hours: vyoung girls charged they were “fired Yor repulsing advances of factory bosses. Mrs. Pinchot joins with the Governor in emphasizing that many Pennsyl- vania factories are properly operated, that many owners comply with the law and deal fairly with those who work for them. But she also asserts she has found STAR, WASHINGTON, D. C, FRIDAY, MAY 19, 1933. R.F.C. D URGED | FOR CHURCH WORK Baptist Convention Told Fairness of Plan in Key- note by Dr. Dodd. Suggestion that the Reconstruction! Finance Corporation, which has “aided | {bankers and mortgage holders,” be! authorized to help such character- building church agencies as hospitals, orphanages and the like, was made at | the opening session of the Southern | Baptist Convention tcday at the Wash- | ington Auditorium. This was contained in the keynote conditions which must be eliminated. PLANS DL EONTRL N DUSTRY BLL Roosevelt Prepares Letter for Rainey and Garner on Situation. By the Associated Press. By the Associated Press. Inclusion of a special provision in the industrial supervision bill to give the Government control over the oil industry is contemplated by the ad- ministration. ‘The President has prepared a letter to send to Vice President Garver and Speaker Rainey outlining the situation in the ofl industry, which is regarded as serious as a result of overproduc- tion. Secretary Ickes has prepared the bill roviding = Federal control, and the ident believes it might be included as a part of the pending indu:irial supervision measure. Representative Marland, Democrat, of Oklahoma, said this morning the ad- ministration’s oil-production bill would be introduced late today. Marland said the President approved the principles of the prcposal late yes- terday and left it up to the Interior Department to complete the draft. It/ will provide, the Oklahoman said, for | the supervision of the oil industry by the Interior Department. Step Proposed in March. Marland, a former Oklahoma oil magnate, proposed the step to Presi- dent Roosevelt and Secretary of the In- terfor Ickes early in March. He has in- troduced numerous bills dealing Wllh\ the ofl industry and designed to curb overproduction. He said President Roosevelt would | send letters to members of Congress today asking for the legislation. Power for a Federal co-ordinator to allocate ofl production on & Nation-wide basis and provisions pronibiting the in- terstate shipment of petroleum pro- | duced in violation of the gquotas will | | be principal clauses of the oil measure, | ‘The principal provision of the meas- | ure was worked out by oil men some | | time ago. It involves heretofore un- | tried regulation under the commerce clause of the Constitution, but men in the petrolewn industry are confident | that the bill will be constitutional if administered reasonably. A tentative figure of 2,000,000 bar- Tels a day for the entire country has been arrived at, but ofl men say this is simply a measuring stick and the quota finally decided upon may be less or_more. Confident that the administration will support the legislation, groups in the Industry today were preparing for & vigorous campaign to secure approval at this session of Congress. As the bill stands the power to allo- cate production would rest with the Secretary of the Interior. Immediately upon enactment he would call repre- sentatives of the State regulatory bodies and ofl producers to work out produc- tion quotas for each State. WAR BONUS GEUT ASKS FOREST JOBS, BUT CONTINUE FIGHT (Continued From First Page.) work. I have a family of seven and my disability compensation has been reduced from $28.75 a month to $8. I have five children, and I intend to| take advantage of any opportunity that will enable me to keep them off publit | charity. “I came to Washington for my bonus and & job, not to ridicule the President or any of the administration. “The fact that I have taken ad- vantage of the Government's offer does not mean that I had side-tracked the main issue—the immediate payment of the bonus. T still want my bonus and restoration of my pension and will continue to fight for that. “I believe the present administration has been more unjust with the veterans than the past one, and anything that they may do in future in behalf of the veterans will not keep from working to defeat them next election. They forced us to go to Fort Hunt and align ourselves with a movement that is purely communistic.” Dear has not resigned from the Cen- vention Committee, nor hes Arthur H. Milton, the other representative of the right-wing faction on it. They do not attend sessions of the convention, how- ever. Meanwhile, officers of the left-wing group were busy at the camp this morn- ing exhorting the men through, loud speakers not to sign up for forest jobs unless they are paid union wages. The right-wing faction leaders say that they will go to the forests as a body and continue the building of an “American non-communistic ~ veterans’ | | organization” to wage the fight for | payment of the bonus and other vet- | erans’ legisiation. | They now charge that the left wing is also planning to send some of its | members to the forests in an effort to | stir up trouble. | | A. J. Dalton, Veterans’ Bureau offi- cial in charge of the Fort Hunt en- campment, said today that he had | received orders from the Veterans' Bu- | reau not to admit Harold Foulkrod to the camp, “because his credentials were | not in order.” He said he did not| know what was the matter with the | credentials, but that he had trans-| mitted the order to the Convention | Committee last night. Foulkrod, who represented the Tight wing before Mike Thomas arrived in| Washington, has never lived at the camp, but has appeared at several ses- sions of the convention. | GANDHI HAS GOOD NIGHT AFTER ELEVEN-DAY FAST By the Associated Press. POONA, Indla, May 19.—The Ma- hatma Gandhi entered today the twelfth day of his three weeks' fast dition reported as very satisfactory. He passed a good night. His friend and secretary, Mahadev Desai, was released today from Yetod jail and hastened to the mahatma' ‘rocnd their approval. BUYER T0 ESCAPE POST'S LIABILITIES Only Prepaid Subscriptions Must Be Recognized. Paper’s Sale Advertised. The purchaser of the Washington Post, advertised today to be sold at auction on June 1, will not be required to assume all existing liabilitles of the paper. It was stated incorrectly in The Star yesterday that all liabilities must be assumed. The court order directs that liabilities in connection with prepaid subscriptions only be carried out. - The advertisement calls for sale of the Post for not less than $250,000, with the terms all cash if the highest bid does not exceed $500,000, or if the highest bid exceeds $500,000, for $500,000 of cash and the remainder in two equal instalments, payable in one and two years, respectively, the de- ferred payments to be represented In promissory notes, secured by deed of trust on the Post property. ‘The advertisement calls for a deposit of $75,000 in currency, certificates of the receiver or certified check at the time of the sale, in addition to the $25,000 deposit which will be demanded of each bidder. The balance of the purchase price is to be paid by the pur- chaser upon transfer to the purchaser after the sale i5 ratified by the District Supreme Court. EPISCOPAL CONVOCATION MEETS AT HYATTSVILLE Bethesda Pastor and Xensington Layman Elected Delegates to Executive Council. By & Staff Correspondent of The Star. HYATTSVILLE, Md, May 19.—Rev. Joseph Willlams of St. John's Church, Bethesda, and James E. Malcom of Christ Church, Kensington, were elected delegates to the executive council of the diocese at the Spring meeting of the Northern Convocation, Diocese of Washington, in Pinkney Memorial Church, here. Right Rev. James E. Preeman, Bishop of Washington, delivered the opening address at the meeting. Other speakers were Rev. Malcolm Taylor, of the National Council on Evangelism, Rev. Charles H. Collett of the Speaker's Bureau of the National Council, and Dr. Larkin Blazebrook. The program of Christianity and the rise of Communism in this country were discussed during the day. WAR DEBT SLASH OF 80 PER CENT IS URGED BY ROME (Continued From First Page.) but “for the present we would be de- luding ourselves if we slackened mili- tary preparations. Only the future can tell if other people are ready to disarm.” JAPAN TO ACCEPT PLAN. Strong Reservations Will Be Made to Peace Proposals, TOKIO, May 19 (#)—Japen's ac- ceptance of the Roosevelt peace pro- posals “in principle,” with strong reser- vations, probably will be dispatched to ‘Washington the middle of next week. A foreign office spokesman indicated the outstanding reservation, although possibly not specifically included in the veguely worded reply to be sent, will be concerned with the President’s “highly laudable” proposed pledge not to send troops across frontiers. i “Replying to this most important and most dangerous proposal, Japan must call attention to the peculiar situation in the Far East,” the spokesman said. “We learned at our cost the danger of signing international pledges without sufficiently _clarifying what signatory parties really meant by them. “Were Japan surrounded by normal states, we could give a clear-cut an- swer, accepting wholeheartedly. If the world recognized the Great Wall of China as the boundary between the address of the convention, made by Rev. | Dr. M. E. Dodd, Shreveport, La., the presiding officer. An enroliment of 1,850 reported as the meeting got under way and more than 2,000 visitors crowded the hall, i Rev. Dodd issued a challenge to po- | litical dictatorships that the member- ship of the churches would recognize only the leadership of Christ, “Only Safe Democracy.” “The membership of the churches from which we come * * * constitutes the world’s only safe and pure democ- acy. For this reason we need no other leader—that is, in the sense of a mas- ter—no dictator, if you please, except Christ,” he said. “Russia has her Stalin, Turkey has her Kemal Pasha, Italy her Mussolini and Germany her Hitler. They will benefit an unredeemed world. But we have our Christ, who is all-sufficient and supreme.” Referring to the fact that the South- ern Baptists are meeting in the Na- tional Capital for the third time since the organization of the convention 88 years ago, Dr. Dodd said: “We would salute our President, Franklin D. Roosevelt, and say our deepest heart ‘God bless you, Mr. President” We would pray for him and for all who are associated with in administering our Nation's affairs.” Dr. Dodd made his assertion re- garding governmental aid for churches in connection with an outline of the staggering burdens assumed by the de- pleted treasury of the Southern Bap- tists, caused by steadily decreasing con- tributions for church work during the past three years of depression. Dr. Dodd also created & stir when he reminded the convention of its social obligations in the “battles raging every- where between capital and labor, em- ployer and employe, debtor and cred- itor, buyer and seller, imperialism and democracy, Communism and constitu- tional government.” Stand for Righteousness. W ‘We cannot, we must not,” he said, ‘'we will not evade the responsibility of taking our stand on the side of Justice and righteousness in these mat- ters. We must stand for the interest of the greatest good to the greatest number.” W. W. Everett, Washington business man, and moderator of the Columbia Association of Baptist Churches, made the address of welcome. “We believe today starts a new chapter in the his- tory of Baptists,” he said, referring to the dedication of the National Baptist Memorial Church on Tuesday and the joint reunian, for the first time in 88 years, with the Northern Baptists on| that day. The response was made by former Gov. Pat N. Neff of Texas, president of Baylor University, who made an ap- peal “not for the forgotten man, but for the forgotten world.” “This is no time to beat a religious retreat,” former Gov. Neff said. “Con- gress may declare a moratorium on the affairs of man, but this convention should declare no moratorium on re- ?1%}-?? To do so would crucify civiliza- The coming reunion of the North and South was emphasized today when Dr. C. Oscar Johnson, St. Louis, presi- dent of the Northern Baptist Conven- tlon, was welcomed to the stage by Dr. Dodd, who presided in the nglence of the Southern president, Dr. F. F. Brown of Knoxville, Tenn., whose health is impaired. There were cheers as the leaders of the two organizations, which ;;:md‘ over slavery 88 years ago, clasped nds. In an exchange of pleasantries, Dr. Dodd said, “I understand !htre“;‘u a prize fight in this hall last night. I hope there will be none next week when we meet together,” Numerous Reports Made. Numerous reports on the wide-fh activities of the church in the So‘lllxl,l'l and foreign flelds were made today. Despite the slump in the financial status of the church Dr. Dodd de- clared 226,000 people were received in baptisn last year, establishing a record number. Reports included those by the Exec- utive Committee, of which Austin Crouch of Nashville, Tenn., is secretary; the Promotion Committee, by Walter M. Gilbert of Nashville; on foreign missions, léy Secretary Charles E. Madgry, and Home Mission Board, by Secretary J. B. Lawrence of At- lanta, Ga. 0 Other reports included those of the Sunday School Board, by Secretary Van Ness of Nashville, the Relief and An- nuity Board, ‘Thomas J. Watts of Dallas, Tex., and the Baptist Brother- hood report, by Secretary J. T. Hen- derson of Knoxville. Summarizing statistics of the South- ern Baptists, E. P. Alldredge, Nashville, reported a drop of $5,276,640 last year in total gifts to all purposes, compared with the previous year. Contributions toward the work of the churches repre- sented a loss of $4,408,276, and church State of Manchukuo and China, we would accept unreservedly,” he added. Wins Trophy MRS. WHITNEY TRIUMPHS AT ATLANTIC CITY SHOW. ATLANTIC CITY, N. J., May 19 (®). —Despite & spill in the afternoon, Mrs. John Hay Whitney of New York and Upperville, Va., came back to the At- lantic City horse show last night, rode three hunters and carried off the Endi- cott memorial challenge trophy for the Corinthian class, the feature of against “untouchability” with his con- | the da . Mrs. Whitney still showed the marks of her fall and when the judges pinned the blue on her Two ins, a grey gelding qualified hunter, the spectators Undeswood Phato. property declined $7,347,686 in value. This reflects a scanty outline of the financial situation confronting the church in the South. Despite this, Sunday schools and churches showed a substantial increase in enrollment dur- ing the year. ‘The foreign mission budget for this year was reported as $605,000, but Sec- retary Madgry estimated the income will not be over $500,000. “What will Southern Baptists do about this situa- tion?” the secretary asked. Mission Plan Launched. The sfilisted Woman's Missionary | Union voted last night to launch a plan to get 100,000 Southern Baptists to give 25 cents a week for a year in order to lift a million dollar deficit from the Foreign Mission Board. Contributions were reported as hav- ing fallen as follows in the last five years: 1929, $3,500,166; 1930, $2,587,545; 1931, $2,530,134; 1932, $2,197,270, and 1933, $1,867,168. Mrs. J. W. Cox of Knoxville, Tenn,, national president of the Woman's Mis- stonary Union, was kept at home by ill- ness in her family and Mrs. F. W. Arm- strong of Missouri presided. Mrs. Armstrong was elected president of the union yesterday to succeed Mrs. Cox. Other officers were re-elected at the closing session as follows: Miss Kath- leen Mallory, corresponding secretary; Miss Jullette Mather, young people's secretary, and Mrs. Sumter Lea, jr., as- sistant recording secreatry, all of B mingham, Ala.; Mrs. H. M. Wharton of Richmond, Va., recording secretary, and Mrs. W. C. Lowndes, Baltimore, Md, treasurer. Ex-Gov. Neff Speaks. Former Gov. Neff, in the principal Weds Today BETHLEHEM GIRL TO MARRY STEEL HEIR. NANCY BREWSTER DOUGHERTY. By the Associated Press. EM, Pa. May 19.—Nancy Brewster Dougherty of Bethlehem and Charles Brown Grace of Chicago, son of Eugene G. Grace, president of the Bethlehem Steel Corporation, will be married late today. ‘The ceremony is to be performed by Rev. W. S. Skinner of Bethlehem in the First Presbyterian Church. Col. and Mrs. R. S. Dougherty, parents of the bride, will be hosts at a reception after the ceremony. Grace is connected with the Jones & Laughlin Steel Co. in Chicago, where the couple will reside. He is a graduate of Princeton University and the Har- ! GLASS BANK BILL GETS RIGHT OF WAY Measure Is Given Preference in Both House and Senate. By the Associated Press. The Glass-Steagall bank reform bill today had right of way in both Senate and House after a Senate committee rejected a last-minute proposal by Eec- retary of the Treasury Woodin for amending the bill's clause for insurance of all bank deposits. Under the Woodin proposal, all bank deposits would be insured with the backing of the Reconstruction Finance Corporation. This was rejected by a Senate banking subcommittee. Woodin’s Plan Submitted. ‘Woodin's plan, offered as a substi- tute for the bank deposit insurance clause of the bank reform bill and de- scribed as more liberal than those hitherto advanced, was submitted at the same time that the House Rules Committee was being told President Roosevelt would interpose no objection ;t; consideration of the measure this ses- on. - That statement was made by Chair- man Steagall of the House Banking Committee, co-author of the bill with Senator Carter Glass of Virginia. The status of the bill has been undecided, since the President has not included it in his emergency legislative program. The Woodin substitute was under stood to be framed to take effect imme- diately. Debate on the Glass bill was due to begin in the Senate chamber this aft- ernoon. Steagall asked the Rules Committee for permission to bring the bill up in vard Graduate School of Business. # FEE CHARGE DENIED AT JURIST'S TRIAL Louderback’s Move to Gain Complete Exoneration Extends Case. By the Associated Press. ‘Testimony that neither Federal Judge Harold Louderback of California nor any one except the attorneys received any part of fees allowed in the Russell- Colvin Brokerage Co, receiyership was offered in evidence today by the defense in the impeachment trial of the San Francisco jurist. Herbert Erskine of Keyes & Erskine, whose law firm represented the receivers, and was paid $51,250 for services, also testified he had never been intimately acquainted with Judge Louderback and that his firm had not been appointed in any receivership by the defendant except in the Russell-Colvin case. Plans Determined Fight. Walter H. Linforth of defense coun- sel, questioned Erskine in an effort to unduly favored certain attorneys in equity receivership and bankruptcy cases and granted excessive fees. After testifying that the fees allowed were below what many attorneys had agreed to be fair, Erskine was asked: “Did any part of these fees go to Judge Louderback?” “None whatever,” the witness replied. A determined fight for complete ex- oneration was ordered yesterday by Ludge Louderback. The jurist'’s decision, which came after House prosecutors had concluded virtually four days of presentation of direct evidence, overrode suggestions of his attorneys that they move for dis- missal of the charges. Extended to Next Week. Immediately the defense began the presentation of its own evidence, in- tended to tear down the House’s indict- ment and testimony that the judge used his high office improperly in ap- pointing receivers and attorneys for them in cases before him. ‘This turn of events was certain to carry the trial into next week, with Chairman Ashhurst of the Judiciary Committee, who is in charge of the pro- ceedings, determined to wind them up by Monday night if possible. e CUBAN REBELS FACE HANGING IN DRIVE; COAST IS GUARDED (Continued From First Page.) Clara groups had left home because they feared persecution. The leaders claimed insufficient arms and ammunition were now available, and that hence no order had been issued for a general uprising. ‘The strength of the rebel bands in Santa Clara and Camaguey Provinces has been estimated officially at more than 300. Opposing them are 400 sol- diers under the command of Ortiz, Lieut. Jesus Oviedo of Sancti Spiritus, and Col. Pedro Vilato of Camaguey province. Several government officials privately were critical of the appointment of Artiz to lead the drive against the reb- els. They recalled that during a six months’ tenure as military supervisor in Oriente province two years ago there were more than 40 mysterious killings, many of them hangings. He was in- dicted by civil courts in at least five ;)rfmv.hem. but never was brought to ‘Travelers reached here from Santa Clara today said the bodies of eight un- identified rebels were taken there and buried Wednesday. Called to Conference. Chief of Police .\. B. Ainciart was sum- moned to the presidential palace last night and conferred with President Ma- chado. Afterward he called all policc inspectors and talked witk them at length. Later he ordered police held in quarters after 6 am. today. A secret meeting of “expert” police, or detectives, has been called for today, it was learned. Official reserve met all questions as to the reasons for the conference, but it was generally believed they were to map out precautionary measures to meet an expected revolutionary out- break here today or Sunday. Police at Mantanzas yesterday shot and killed Ramon Lopez Azcano, whom they charged with resisting arrest on charges of participating in an attack on a rural guard chief at Itabo. ‘The so-called Pepe Rivas Bridge on the Cienfuegos-Palmira highway was slightly damaged yesterday by the explo- sion of a large bomb. Police last evening dispersed youths disprove House charges that the judgel the House tomorrow. New Amendment Sought. As the Senate approached consider- ation of the Glass bank bill, a move- ment was taking shape to add to the measure an amendment for the insur- ance of all bank deposits up to $2,500 for one year, with a fund backed by the Treasury. The amendment is gaining bipartisan support. The amendment was drafted by Senator Vandenberg, Republican, of Michigan, orginal Senate proponent of insuring deposits, after a long series of conferences with other Senators who felt the insurance clause of the bank bill should be liberalized. Vandenberg's proposal is intended to fill the gap between enactment of the bill and the proposed effective date of the Glass insurance plan, July 1, 1934. Deposits in all banks up to $2,500 would be insured during that period from a fund made up of an assessment of one-half of 1 per cent of all deposits, supplemented by another assessment of the same size is necessary. The Gov- ernment would put up any additional funds needed, but aut of the plan are confident such a situation would not arise. ‘Vandenberg said he and these favor- ing his plan offered it to cover what they considér as three “flaws” in the pending insurance plan. He described theém as follows: “First, that it doesn’t become effec- tive until July 1, 1934, though the need is greater in the next year than for . the next 100 years. “Second, that it depends entirely on bank assessments for solvency, and although these should carry the load, many of us insist that finally we have got to throw the credit of the Govern- ment back of it. “Third, it applies only to Federal Reserve bl::‘mberl banks u}nd those btnhm that_subsequently qualify as meml and leaves out thousands of State banks which at least at the inception of the plan have got to stand on a parity or go out of business.” GUARANTY PLANS ASSAILED. By the Associated Press. ATLANTIC CITY, N. J., May 19.— Proposals for a guaranty of bank de- ts are not in the interest of sound g and afford no real to the depositors, said son, president Association, who addressed vania Bankers' Association convention last night. It is a matter of regret among bank- ers, he asserted, that the Glass bank- ing reform bill includes a so-called in- surance of deposits plan. In other re- spects, he said, the bill has much merit, ‘with most of its provisions commanding wide support among bankers. “Bankers generally,” said Sisson, ‘“cannot give their indorsement to the deposit insurance proposal. It is mot erent in essential principles from the guaranty of deposits schemes that have been tried in eight Western States and invariably failed. s “The Economic Policy Commission of the American Bankers’ Association has Jjust completed a searching restudy of the history and results of the guaranty plans and the simple facts of these cases put them beyond the pale of sound remedies for the banking problem. “The guaranty of deposits plans no- ‘where gave the public real protection in their deposits, but to the contrary very seriously increased the hazards of being a depositor in a bank under the influence of the guaranty scheme.” Sisson declared that supervision should render bad bank impossible, but it had failed to do so. “We there- fore believe that a thorough reorani- zation, consolidation and strengthening of the bank supervisional field in this country is called for if the people are to be expected to rely on it to the full- est extent for the protection of their interests.” FARMERS INVADE WISCONSIN CAPITAL AFTER MILK TRUCE (Continued From First Page.) continued to patrol trouble zones to prevent groups over which the pool has no control from interfering with the marketing of dairy products. Adjt. Gen. Ralph M. Immeil said he would issue instructions for the withdrawal of the troops later in the day. A three-and-a-half-hour conference in the office of Gov. Schmedeman ended last midnight in agreement Whereby the pool promised to cease picketing activities and the Governor agreed to appoint a farmer-controlled committee to study the problems of agriculture. Ratification Expected. Although the pool conferees action has yet to be ratified by its Arbitration Committee, Willlam B. Rubin of Mil- waukee, counsel for he pool said as he emerged from the parley: “The strike is ended.” He added that the Arbitration Com- mittee would meet today and that there Was no question of ratification. Listed for study were: The abolishment of the present sys- tem of base and surplus in pricing milk, butter and cheese; reorganization of the State department of agriculture; divorce of chain store organizations {from manufacture and processing of food products; a conference by the who attempted to carry red banners through the streets of “Ciengfuegos. conference, which was held throughout yesterday. ‘The convention pi address last night at the meeting of the Baptist Men's Conference, declared the B;Rtln convention is both & chflkge and an opportunity to spread further the gospel throughout the world. He urged the convention to go to work “with hats Off to the past and coats off to the future.’ The meetipg copoluded the menls rogram promises to give the most thoughful consideration to what was termed by the statistical secretary, E. P. Aldredge of Nashville, Tenn., “a new and truly tragic level for benevolent funds.” ‘This he partly attributed to “too little of u::l spirit of lelt-s,lcrmce" and to “spending millions for unnecessary things.” - committee with Secretary of ‘Wallace for the establishment price on dairy products Federal regulations; reporting of the committee’s findings such as are of na- tional scope to the President and Con- ess and those of State scope to the .t slature for immediate consider- ation. e In a statement issued after o ference, pool leaders asserted L‘l?: !'hhmt of the farmer to withhold his products from the market “to gain his just de- mands and denied responsibility for the acts of violence which attended the