Evening Star Newspaper, May 24, 1933, Page 1

§ WEATHER. (U. 8. Weather Bureau Forecast.) Mostly cloudy tonight and tomorrow: local thundershowers tomorrow; some- what cooler tomorrow night. ratures—Highest, 86, at noon today; lowest, 67, at 5 a.m. today. Full report on page B-4. Closing N. Y. Markets, Pages 11, 14, 15 ¢ Foening Star. = No. 32,530. post office, Wa Entered as second class matte! shington, D. C. WASHINGTON, WITH SUNDAY MORNING RDITION D..0, WEDNESDAY, MAY 24, 1933—FORTY PAGES. “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. ek sk Yesterday’s Circulation, 120,570 (#) Means Associated TWO CENTS. Press. MORGAN DEFENDS BANK - AGAINST U. S. INSPECTION; LOANS ARE MADE PUBLIC FUNDS ADVANCED 10 C. E MITCHELL Partner Denies Effort to Gain Control of.National City Institution, PREFERRED LIST AWAITED | John W. Davis, Norman H. Davis, Dawes and Whitney Among Customers. J. P. Morgan testified today to the Senate Investigating Committee that although he paid no income taxes in this country in 1931 and 1932, he did pay such a tax in Eng- land. A list of special Morgan_ clients, including Secretary of the Treasury Woodin and Senator McAdoo, then was placed in the Record. By the Associated Press. “f Senate investigations again dug deeply into the Morgan banking secrets today, developing objec-| tions from J. P. Morgan to having | his private firm under regulation applied to commercial banks, ob- taining names of bank officials to whom Morgan money has been loaned and finding out where more of that money was dgposlped. Again a sensation-seeking jam | of spectators had its fill of what it | sought, when Morgan identified Tecipients of loans from his firm to include his counsel—John W. Davis, former presidential nomi- nee; Ambassador Norman H. Da- vis, now representnig the Presi- dent abroad; former Vice Presi- dent Charles G. Dawes, and others whose names are alike well known. | List Put in Record. | The list was placed in the record at | the demand of Ferdinand Pecora, com- | ‘mittee counsel, who said it might aid in | considering the truth of charges of Mor- | gan power and influenve over { and industrial concerns. Amfounts of the loans were not given. Some, including the one to John W.| Davis, have been paid off. George Whitney, tall, handsome Mor- | gan partner, disclosed details of one of | the loans, and advance of about $10,- 000,000 to Charles E. Mitchell, former chairman of the National City Bank. He “said §t was mow “undex~colfateralized,” but guarded by a reserve set up against it of more than $3,000,000. ¢ The loan to Mitchell was said by! ‘Whitney to have been e to aid the National City bead in taining the ‘parity of his bank stock with the stock of the Corn Exchange Bank, with which & merger was contemplated. First stan . and then sitting be- #ide Morgan, itney said the firm had $18,000,000 in reserves set against “undercollateralized” loans. Some Morgan partners are indebted to the firm, he said, without mention- ing names. MorganLoans Dawes, Davis and E. Brooke Lee Are Among Borrowers. By the Associated Press. Pollowing is the list of Morgan com- pany loans made public today whils J. P. Morgan was testifying in the Senate investigation, with the identifi- cations given by Morgan. The date of payment is given, where made. Unless otherwise noted, the loan is still outstanding. Amounts of the lcans were not given. Carry, E. F., Continental Bank, paid off May 21, 1928. 7 Conway, W. P., Guaranty Trust, paid off February 10, 1931. Davis, John W., repaid in 1930. Davis, Norman H., Bank of New York & Trust Co. Dawes, Charles G.. Central Trust of Chicago, paid off April 20, 1932. Dumaine, F. C., First National of Boston. Gates, Artemus L.: Harvey D. Gibson, " (Continued on Page 4, Cplumn 5 MITCHELL SODGHT TO RECOVER L0SS Gerard Swope Says He Asked Bank to Protect Him on Income Tax Deal. By the Associated Press. NEW YORK, May 24.—Through Gerard Swope, the Government ob- tained testimony today that after Charles E. Mitchell sold stock to Mrs. Mitchell—“to record a loss” so he would have to pay no income tax in 1929—he then made a claim on the National City Co. in an effort to avoid loss on the stock. . Mitchell, former chairman of the National City Bank and National City Co., s on trial charged with evading income taxes in 1929 and 1930 by al- legedly fake sales of stock. Swope is a director in both the National City Bank and National City Co. and is president of the General Electric Co. Swope testified concerning an in- formal meeting of National City Co. directors in March of last year, at which he said Mitchell made his claim “in broad terms;” saying he had orig- inally bought the stock in behalf of the National City Co. and suggesting the company ought to “hold him harmless.” Stock Deal Revealed. Mitchell bought National City Bank stock in 1929 with money he borrowed from the J. P. Morgan company, which held the stock as collateral. He then sold part of it to his wife, although there has been testimony that the Morgans were not informed of this. Later he bought the stock back from his wife, in the month the informal meeting to which Swope testificd was <* PECORA PROPOSES * NEW LEGSLATION Fletcher Says Congress May Use Interstate Clause for Control. |[FINANCIER HITS AT PLAN | S {Income Tax Regulations Given Blow Through Testimony Before Committee. BY G. GOULD LINCOLN. | Why a private bank? Why the present income tax? These are the outstanding ques- tions developed as the second day of the Senate investigation of the House of Morgan swung along with J. P. Morgan, senior partner | of the firm, again on the witness stand today. | Slant Toward Change. . Questioning of the witness by Ferdi- nand Pecora, counsel for the Senate Banking Committee, today took a de- cided slant toward the need of change in the laws relating to private banks. Indeed, they seemed to raise the ques- tion of the advisability of private banks as they now exist. Senator Fletcher, chairman of the Banking Committee conducting the in- quiry, suggested that Congress might, if necessary, reach private bankers through the denial of the use of the mails or through the interstate commerce clause of the Constitution. In reply to a question, Morgan, whose great banking house has been built up in the last half century or more as a | private institution, said he saw no need ; |for legislation dealing with private | | banks. | When it was developed at the hear- | ing that Morgan and his score of partners had paid no income tax in 1931 and 1932, and that the total amount of income tax paid by Mor- gan and his partners in 1930 was ap- proximately $48,000, the existing in- come tax laws immediately took a sock in the jaw in the mind of the man on the street. Ask “Who Is Paying?” The man and weman of moderate and small income asked the question: “Who is paying these income taxes?” Their answers were invariably: “I P‘Y‘l}'fi the taxes.” ‘While it is quite true that the Morgan e:::mu did not pay the income tax| use they had the privilege of writ- ing off their losses during the years of the depression, it is nevertheless true that al: of these partners continue to receive large incomes. If the Morgan partners 4id not pay income taxes, it is ?olnlet at, how many other reputed millionaircs in the country were able | legally also to avoid the payment of income taxes in whole or in part? | At a time when the House Ways and | Means Committee, in the administraticn | of the public works and industries bill, IT MAY LOOK LIKE RECOGNITIONSKY BUT IT DOESNT TASTEOVITCH LIKEIT! LITTLE JACKOVITCH HORNFE LOUDERBACK HELD TARGET OF SPITE Four Disgruntled Attorneys Blamed for Charges by Defense in Senate. By the Associated Press. A flat declaration that “four dis-| gruntled attorneys” were at the bottom of impeachment charges against Fed- eral Judge Harold Louderback was laid Campaign Launched To Honor Roosevelt And Norris at Dam By the Associated Press. KNOXVILLE, Tenn., May 24— The Knoxville Journal today an- nounced a campaign to Taise funds with which to erect busts of President Roosevelt and Sen- ator George Norris at the Cove Creek Dam on Clinch River. Under the announced plans, marble busts, one of the Presi- dent and one of Senator Norris would be placed at each end of the roadway across the top of the dam. State Representative J. Ed Gervin of Knox County, who proposed the plan, estimated it would require $1,000 for each of the two busts. before the Senate today by the defense after House prosecutors had charged the California jurist was incompetent and should be removed. ‘Walter Linforth of the judge’s counsel, who opened the final arguments for the defense, asked -the Senate to consider that “not a single creditor of any one” in 25 or more receivership cases before the judge had appeared to “point a finger of suspicion at him or say an ill word against him.” “Four disgruntled attorneys are at the bottom of these charges, who, in am | my humble opinion have deceived the managers for the House,” Linforth said. adding that “of this disgruntled firm of five lawyers, three were here as wit- nesses and the fourth was in Wash- Conviction Is Asked. Conviction of Judge Louderback was demanded today by Representative Browning, Democrat, of Tennessee. Brownmg addressed the Senate on be- half of the House. After defense at- torneys made their arguments, & vote on five impeachment counts was sched- Iyled to start, probably between 4 and 5 pm. RESERVE LAUNCHES INFLATION” TRIAL iSystem Enters Market for $25,000,000 in Govern- ment Securities. By the Assoclated Press. | The Federal Reserve System is in the |open market for Government sucuri- ties, launching on a first trial of the | controlled credit inflation powers newly | | conferred on the President by Congress. For the present, the Reserve's Open ;erkel Committee is purchasing $25,- 000,000 of such securities. The law | authorizes buying up to three billion to FIATCONTIUE N PEPING REA iMissionaries Report Conflicts Despite Signing of Truce in North China. y the Associated Press. PEIPING, May 24.—Advices from | American missionaries at Tungchow, 13 | miles east of here, said today there was | renewed fighting last night on the east- |ern outskirts of the town despite re- | ports of a Chinese-Japanese truce in ! the North China war zone. | Ten Chinese were killed, said the missionaries, who are connected with |B | have stuck to their posts after evacuat- | ing from Tungchow between 70 and 80 American children who attended school there. Chinese reinforcements were said to be arriving, with further hostilities ap- parently imminent. " Ofowded With Refugees. The Tungchow Mission compound was crowded with 10,000 Chinese refugees. Peiping, however, was more peaceful | today than for many days. Relief was | marked as the result of yesterday’s re- ported truce. | Chinese reports yesterday were that Chinese militery leaders had been given | three days to comply with unrevealed Japanese peace terms. ‘There was no agreement, however, in Chinese press reports concerning the reputed armistice agreement. One sec- tion proclaimed that “war has ceased fronts,” while another main- lon all | the American Board of Missions. They | NAVY T0 ABANDON ROTATING RESERVE PLANONWARSHPS Secretary Swanson Says Only $5,500,000 Would Be Saved by Program. BETTER SEA SERVICE FORECAST WITHIN YEAR Battleships, Cruisers and Aircraft Not to Be Laid Up Under Economy Drive. The rotating reserve plan, under which one-third of the fleet and air- craft would be laid up, effective July 11, has been abandoned, Secretary Swan- son announced today. A study con- vinced naval authorities the savings would amount to only $5,500,000. The Navy Department said about one-third of the submarines and de- stroyers—which have been on a rotat- ing reserve basis for a long time—will be continued in that status. ‘There are now in rotating reserve 19 destroyers and nine submarines, it was added. This program has long been in effect. Admiral Willlam V. Pratt, Chief of Naval Operations, recently issued or- | ders directing that the rotating reserve | plan sbecome effective July 1, as part |of the Navy’s economy contribution, to | save some $55,000000 out of next year's budget. Further economies, to | save the $55,000,000, are expected to be | made in cutting personnel, closing shore | establishments and in overhead cbsts. Expects Better Navy. Today's pronouncement by the Sec- retary mans battleships, cruisers and aircraft, slated for laying-up under Admiral Pratt’s orders, will not be affected by the drastlc economy. | " “We expect to have the Navy in bet- | ter condition 12 months from now than |it was when we took it over,” said Mr. Swanson. Unofficial estimates on the amounts anticipated as a result of the rotating reserve plan place the figures as high as $18,000,000. Admiral Pratt said that | by this method, the fleet would be in | better material condition than hereto- | fore, as it was planned to work on the ships while they were laid up at | Navy Yards. Pratt’s View Opposed. It is known that Admiral Pratt’s view, favoring the rotating service, has been sharply Gontested by Naval officials here | and elsewhere, Admiral Frank B. Up- ham, chief of the Bureau of Navigation, Navy Department, took a fling at the Naval , in which he charac- terized the program as the Navy as a fighting arm. Navy Department officials were un- | able to say just how the $55,000,000 would be saved out of the coming year’s budget, now that the rotating reserve program has been dropped. Assistant Secretary Henry L. Roosevelt heads a special economy board which is study- ing the whole economy program. This group is expected to make a report within a few days. The Bureau of the Budget has cut the Navy's supply bill for next year to $270,000,000—a slash of $55,000,000. BRITAIN PROPOSES GONSULTATION T0 - ENHANGE SECURITY ‘Doctrine Inspired by U. S. Message Is Offered to Arms Parley. WOULD EXCHANGE VIEWS FOR PRESERVING PEACE :Also Would Use Good Offices to | Restore to and Determine Responsibility. | By the Associated Press. GENEVA, Switzerland, May 24.—In- !spired by President Roosevelt’s doctrine that the United States is ready to con- sult the powers in the event of a men- ace of war, Great Britain today intro- duced at the Disarmament Conference revised clauses dealing with international security. ' These clauses stipulate .that in case of a breach or threat of a breach of the Briand-Kellogg pact, the League of Na- tions or any non-member, such as the United States or Russia, may propose general consuitation. ‘The objects of this consultation would be: 1. To exchange views for the purpose of preserving peace and averting the conflict. 2. In the event of a breach, to use good offices for the restoration of peace. 3. If it js found impossible to restore peace, to determine which party or parties to the dispute are to be held responsible. The United States gave another push forward to the disarmament confer- ence taday when it announced just what it was ready to do for the organi- zation of world peace. Norman H. Davis, American ambas- sador at large, said the United States was prepared to make a unilateral decla- ;atior‘x_l tfh:xtx when there has been a reach of the Briand-Kell peace pact America will confer wlmlotege power‘-: In the event that the aggressor nation has been determined, and the United States agrees concerning the identity of this aggressor, the Washington Govern- ment, Mr. Davis explained, will under- take to refrain from any action tending to defeat the collective efforts which the nations have decided to exert against the aggressor. The American Government, he con- tinued, will withhold protection from any of its citizens who may be en- gaged in activities tending to defeat those international efforts for peace. Sir John Simon, the British foreign the conference his re- mmMMmem DAVIS AND SIMON CONFER, Future Status of U, S. in World Peace Is Discussed. BY PAUL SCOTT MOWRER. By Cable to The Star. GENEVA, Switzerland, May 24— Highly important secret Anglo-Ameri- can negotiations have occupied the last 24 hours at Geneva. What is being ad- justed is nothing less than the future held. By that time it had fallen enor- | is preparing to boost the income tax . ‘mously in value, but he bought it back | rates on moderate and small incomes, at whzt he h.de sold it for. | the revelation at the Morgan hearing relations of the United States to the world peace system. At ease despite a shower of questions grom Pecora and committee members, organ said he did not know the cir- The impeachment action, Browning | ease said, was not “punitive or vindictive, but a “defensive measure guaranteed to THOMPSON NAMED | tained “the war operations continue, credit and release currency. | Though the initial purchasing au- | With the Japanese nearer Peiping.” umstances of the loans. Await Preferred List. He told the committee new members were sometimes admitted to the firm without advancing capital. \ Questioned by Senator Glass, Demo- crat, of Virginia, Whitney denied the Joan to Mitchell was an effort to gain control of his huge bank. One thrill awaited by the crowd, which failed to materialize, was the list of special customers invited to partici- pate in Morgan issues at below Lhe! market price. It was expected at the | afternoon session. | This list was reported to include | many nationally famous figures, buh‘ committee aides uard prior to its introduction. B he Anancier laughed and joked with | members of the committee as he tes- tified, but throughout the crowded and warm committee room there was a dif- ferent atmosphere of suspense. Every seat around the big commit- | tee table was again occupled and Senators followed the testimony closely. Special police were posted about the Toom. There was some friction because of the questions of Pecora. He inquired “Why do you think your relations with your customers are more confi- dential than the relations of com- mercial banks with their depositors?" Morgan hesitated. He began & sen- tence, paused, started and paused ag: S “Mr. Pecora,” he finally said, “I'm not accustomed to this type of que: tioning. That is why 1 have a little difficulty in_replying.” : Senator Glass, Democrat, of Virginia, broke in to ask “If the New Ycrk State authorities ~(Cohtinued on Page 4, Column 1. YEAR'S RECORD HEAT _FORECAST FOR TODAY With the temperature reading 89 de- gress at 1 o'clock ‘teadily, the Weather Bureau announced inat today probably would be the hottest thus far this year. The highest previous temperature recorded this year was last Saturday, when the mercury climbed to 90 degrees. 1'n§1 temperature jumped 16 degrees from a rcading of 73 at 8 o'clock and, coupled with a rise in humidity to 48, the weather forecaster predicted rain l2te tonight and tomorrow. This, he raid, however, would bring only tem- porary relief from heat. The lowest temperature recorded in the last 24-hour period was 67 degrees at 5 am. | GUIDE FOR READERS I Amusements .... Comics Features Finance . Radio . Serial Fiction. kept it under -close | ° United States District Atiorney George Z. Medalic asked Swope if he recalled an informal meeting of the directors of g]l; National City Co. early in 1932. He “Do you recall anything Mr. Mitchell sald?” Medalie asked. T do” Q. “Did Mr. Mitchell make a claim or demand with respect to any obliga- tion against the bank or the National City Co., and if so, what demand? Max D. Steuer of defense counsel ob- jected to the question and was sustained | by Judge Heary W. Goddard. | Q “Did he say anything as to what | he was asking the National City Co. to | do ‘or him?” Again Steuer objected, | (Continued on Page 2, Column 8.) ADMR. WEMYSS DIES AT VILLA IN CANNES | By the Associated Press. CANNES, France, May 24.—Admiral of the Fleet Rosslyn Erskine Wester Wemyss, the first Baron of Wemyss, who signed the armistice for England, died today at his villa, where he had | lived since the war. He was 69 years | old \ Baron Wemyss entered the Navy in 1877 and was a rear admiral when the World War started. In April. 1915, he was in command of the squadron at the landing of tegops in Gallipoli and was | mentioned in’ dispatches. In 1916 and | 1917 he was commander in chief for | the East Indies and Egypt. He went on the retired list in 1929. In 1903 he married Victoria Morier, daughter of Sir Robert Morier. They had one” daughter. LIGHT FROM ONLY FORTY STARS f REACHES EARTH IN 12 YEARS and advancing | Scientist Says Three-Fourths ' Have Never Been Discovered. By the Associated Press | PASADENA, Calif., May 24.—Dr. Ad- ;rlaan Van Maanen, studying nearby | stars, said today he and other astron- | | omers have found only 40 close enough for their light. which travels 186,284 | miles per second, to reach the earth in |less than 12 years. | But 8 of the 40 stars are visible| to the naked eye, and 11 of them have been discovered in the last decade. | Dr. Van Maanen said there prob- ably are four times as many stars in the heavens as have been discovered. Addressing a group of fellow astrono- mers at the Carnegie Institution’s Mount Wilson Observatory, he said he divided the nearer reaches of spate into three “shells” using the sun, whjch is but eight “light minutes” from the earth and counted as one of the 40 nearest stars, as the center. The first shell covered an area rep- comes with a dull thud. Today those | members of the Senate and House who | are strongly opposed to increasing the | normal income tax rates as_proposed | by the Ways and Means Committee | took their cue immediately from the | testimony before the Banking Com- | mittee. | "Senator Copeland of New York, for | example, who at the time of the pas- | sage of the last revenue bill joined with Senator Walsh of Massachusetts in | sponsoring the manufacturers’ sales tax, said today that he believed such a tax should now be substituted for the in- come tax increases and special taxes proposed by the Ways and Means Committee. Doesn’t Advertise. e House of Morgan hangs out no{ The ‘ sign that it is a bank, nor does it| | advertise in any way that it is a bank. | If it did so, immediately the bank would | be subject to examination by the New York State bank examiners. Morgan admitted on the stand today his house did not advertise itself as a bank so that it would not be compelled to undergo such examination. He plead- ed that the relations of his firm to its " (Continued on Page 4, Column 6.) PRESIDENT .PLANS TRIP Will Try to Go to New Brunswick, N. J., to Receive Degree. President Rocsevelt hopes to go to New Brunswick, N. J., June 10 to re- ceive an honorary degree from Rutgers | University. Legislative business permitting, he will make the. trip and receive the de- gree in person. of All Stars in the Heavens travel in ‘every direction from the sun in 16 years. The second shell added another 16 light years and the third . The 100-inch telescope, largest in use, had enabled him to discover many new_stars, he said. “In the second shell, which is seven times as large as the first, we should have found 280 stars,” said Dr. Van Maanen, “‘but we have found only 100. The third shell is 56 times as large as the first, and should have at least 2.240 | stars, but only 478 have bezen found. “There is no reason to believe there are a great many more stars grouped closely about us than in an_area of similar size farther away. It seems more likely that because of their dim- ness we sees fewer stars as the distance increases.” Dr Van Maanen sald six pairs of “twink,” or double stars, one revolving around the other, were found in the resented by the distance light would { inner shell, and there was one set of triplets and & system of five stars. the people under the Constitution™ against improper officials. ‘He added that the Bar Association of San Francisco had asked the investiga- tion that led to the impeachment “be- cause of the notoriety” of Louderback’s actions. ‘nfifgxxu to Louderback having main- tained a residence in Cantra Costa County and voting there, while living at the Fairmont l;oul in San Fran- 0, Browning said: CleHe underwgk to build up a fictitious fiy-by-night residence to avoid & civil action in San Francisco. . Man Behind Curtains. W. S. Leak, San Francisco healer and friend of the jurist, Browning said, was “the man behind the curtains Euuing‘ the strings of this puppet of his. | At another point in his argument, | Browning referred to “this Siamese twin relationship” between Louderback and Leake The House prosecutor took up the re- ceivership cases involved in the im- peachment articles one by one, and in the main reiterated the substance of the House charges that the judge was guilty of favoritism, appointed incom- petent men, was indifferent to litigants in the case and allowed excessive fees. WOMAN’S SCREAMS HALT BANK HOLD-UP| Suspect Captured After Attempt to | Rob Pennsylvania In- stitution. Special Dispatch to The Star. HAGERSTOWN, Md, May 24—A bandit traveling in an automobile bear- | ing District of Columbia tags made an unsuccessful attempt this afterncon to{ hold up the People’s National Bank at | Ledmaster, Pa., a small town three miles | from Mercersburg. | A man answering the description of the robber was captured a short time later at Greencastle. | The man was later returned to the | scene of the hold-up and indentified | by Miss Sarah McDowell. He gave the I | name of Aden Detter, 45 years old, of Washington, D. C. | Sceams of the assistant cashier, Miss | Sarah McDowell, prcbably saved the bank’s money. She was alone when a 6-foot man walked up to the cage about 1:15 o'clock and asked for the cashier. She in- formed him the cashier was at lunch. He then covered her with a revolver, told her it was a hold-up and to keep quiet. He leaped over the top of the and seized the girl and attem to thrust a handkerchief into her mouth as she began to scream. J. B. Sollen- berger, nzgln:ur of the bank, 'htgd';.y passing the building was attract and ran in. The bandit then fled without grabbing up any ef the money. X | ment thorization was small and the time over which the buying would be spread was not indicated, the action was accepted |as indicating the Reserve System is in full accord with the President’s ex- | pansion policy. | Even more important, many observers believe the step signified that the ad- | ministration has no thought of issuing currency to cause expansion unless the | |open market operations prove inade- quate. The inflation law authorizes printing of three billion in currency, |end also makes possible devaluation of the dollar down to 50 per cent. Must Be Held. Once Governments or securities of Government-controlled corporations are acquired by the Reserve, they must be held for a predetermined length of time unless the Secretary of the Treasury permits earlier disposal. Money goes to the banks and to the owners of the bonds with the expecta- tion that by pumping the additional currency into the banks credit will be loosened, making more readily avail- able money for business purposes. Secretary Woodin announced the in- auguration of the policy yesterday, after a meeting of the cabinet. The admin- istration has announced its policy would be to use the expansion privilege only as it is needed to bolster business and industrial activities. Federal Reserve Board members have said the Reserve System would do everything in its power to carry out suecessfully the Chief Executive’s plan for a controlled inflation. Held Easily Controlled. The plan was described by members as the most easily controlled sort of in- |flation and a system that would be under constant supervision by Govern- officials and Federal Reserve Banks. The President was authorized to em- ploy four methods of currency expan- sion, the open market operations of the Federal Reserve Board being the first, and the one which the administration has expressed hope would be adequate | to produce the desired upturn in busi- | The corporations authorized are put- ting into use only a fractional part of the activities authorized for the Fed- eral Reserve Banks. . PIRATES RAID BOATS Japanese Destroyer 'Rushes to Scene of Buccaneers’ Activity, ‘TOKIO, May 24 (#)—A Regno (Jap- anese) News Agency dispatch from Dai- ren, Manchuria, said today the Jap- anese destroyer Asago had hastened from Port Arthur to the scene of & pi- ‘The line to which Chinese forces were expected to withdraw, believed to be one of the specifications of the truce, was described as running from Lutai, about 30 miles from Tientsin toward the coast, to Tungchow and then circling the an | clent capital on the east and north at a distance of approximately 20 miles. Conditions More Normal. (Reports _ originating in Chinese circles at Tientsin yesterday were that the truce was based on the setting up |of a “separate independent zone” south of the Great Wall, with Han Pu-Chu, Shantung Province governor, and | Hwang-Fu, National government repre- | sentative at Pelping, acting as admin- istrators.) ‘The exodus of Chinese from this city | slowed down appreciably today as the | “(Contintied on Page 2, Column 6) | Train Telescopes Another at Brook- lyn Museum Station. NEW YORK, May 24 (#).—Four per- sons were seriously injured and 21 others received minor hurts today in a |rear-end collision of subway trains at the Brooklyn Museum station of the Interborough Rapid Transit System. The motorman of the rear train, which telescoped the front train, was | pinned in his cab and a fire emergency squad- used acetylene torches to free him. Physiclans expected him to die. NEBRASKA SENATOR Appointed by Governor Bryan to Succeed Late R. B. Howell. | By the Associated Press. | LINCOLN, Nebr, May 24—William | H. Thompson of Grand Island, former Nebraska Supreme Court judge, today was appointed United States Senator from Nebraska to fill the vacancy caused by the death of Senator R. B. Howell of Omaha. Gov. Charles W. Bryan, still confined to the sick room where he has been ill since the November, 1932, election, which gave him a third term as Nebraska's chief executive, made the appointment. It put a halt to widely varying rumors circulated about the appointment since Howell’s death in ‘Washington last March 11. Many persons thought the Governor would go to Washington himself while others thought he would choose a per- sonal friend who would step aside if ’lhe Governor became well enough to |run for the senatorship in 1934. Thompson, 79 years old and long a friend of the Governor and his late brother, W. J. Bryan, frequently was mentioned as one of the most likely to be named. Signed by Special Dispatch to The Star. PHILADELPHIA, May 24 (NANA). |—"And don't forget to take a lantern.” ‘This gentle warning, now almost for- | gotten in this era of well lighted high- days, but one familiar to every resident of a rural community, is due for a re- vival in the State of Delaware—pro- viding Delaware pedestrians take a certain new law seriously. Gov. Buck has uu“:'dn a bill passed re making it ""\{!fl“lfll for p'mnl . to walk on any used for motor hard surface thway te limits, without m?nmh(' s lighted e s S St St rate raid off the mouth of the Yellow |fies River in Shantung Province, China. PEDESTRIANS MUST TOTE LIdHTS AT NIGHT ON DELAWARE ROADS | Will-o’-the-Wisp Law for Walkers” Safety on Highways Governor. according to officials at Dover, the law is going to be “a hard one to enforce." The new law replaces one which re- quired pedestrians to carry either a |light or a “white object.” New York State has just passed a bill requiring those walking on high- ways at night to walk facing the traffic. Pennsylvania authorities urge pedes- trians to observe the same custom but have not made it a law. Delaware, however, always sensitive to the picturesque and romantic, is nof satisfied with such uncolorful regula- tions. For her it must be a light, a real light, whether it be an old-fash- ioned ofl-burner, new-fashioned andle (provid- lit in a high ) And the dear old days when Silas, Wmmmnpm#'mm again. bobbing across the e.cning lana- scape like will-o'-the-wisps, ‘wm give., (Gopyrigat, 1033, by North 7 g 33, 0 e - saver Aluanes. 1aes 58 ma; Tights, | Theoretically, the American action is along the lines of the Roosevelt-Davis declaration and depends on the achieve- ment of real disarmament here. Prac- tically, however, once an agreement has been reached on European security and the American connection there with the new systend, if it appear to correspond to American interest, may automatically establish itself. The question, therefore, appears to be of the highest interest to the American Government and people. The security section of the original British draft treaty was drawn without consulting the United States. It tended to weaken the League of Nations by transferring the solution of a major political crisis from the League Coun- cil to a sort of permanent seven-power conference consisting of Great Britain, the United States, France, Germany, Russia, Japan and Italy, plus an in- definite number of smaller states. Not Subject to Ratification. By this means Great Britain seems to have hoped to escape in the future from the obligation to take any interr national blockade action to which the United States was not also a party. It meant also the fixing of the Amer- ican relation to future international de- cisions concerning aggression in the disarmament treaty itself, thereby ex- posing the treaty, in case one should | ever be concluded, to the same sort of fight in the American Senate which overthrew the Versailles settlement. ‘The Roosevelt-Davis declarations change all this. By the American dec- larations the United States will co-op- erate, but not along the lines of the British proposal. The details of Ameri- can co-operation will form no part of a new treaty. They will be embodied in a unilateral executive declaration by President Roosevelt and will, therefore, not be subject to ratification by the American Senate. The British are therefore obliged to revise the security section of their draft treaty. They are forced back upon the League system, which is thus indirectly being strengthened by the American ac- tion. The Bnited States intends to be left out of this section of the treaty. At the same time it is necessary for the [uné:ed it.:cs to know how, when and junder what conditions it is going to be | expected to consuit. . The American and British experts are almost in constant touch during the redrafting, and Sir John Simon, (Continued on Page 2, Column 1.) SRR R CUBAN REBELS SCORE . Soldier Killed, Another Wounded and Quarters Burned. SANTA CLARA, Cuba, May 24 (P).— One soldier was killed, one seriously wounded and several slightly hurt Mon- $238 2 Repore reaching. hers ast RGN said a rea re from Banao. After routing rural guzrds. the report said, the rebels burned thesr quariets, took over the towin. goibered up some xumnu and returned to hiding in the