Evening Star Newspaper, May 27, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Local thundershowers this afternoon or early tonight; slightly cooler tonight; generally fair; gentle to mod- 88, at 12:30 ‘Temperatures—Highest, p.m. yesterday; lowest, 68, at 5 a.m. today. Closing N.Y. Markets, Pages 10 and 11 No. 32,583, | Eci=adasion Entered as second class matter shington, D. C. SENATE EXPECTED T0 CHANGE HOUSE * INGOME TAX PLAN Industrial Control Bill Passed After Sales Levy Is Rejected. CAPITAL LOSS DEDUCTION IS LIMITED TO ONE YEAR $2,000,000,000 to Go to States for Public Works and $400,- 000,000 for Roads. By the Associated Press. Early Senate consideration of the fncome tax program in the $3,300,000,- ©00 public works-industrial tont.ml measure was looked for today following passage of the legislation by the House late yesterday and the crumbling of the revolt that had threatened the taxa- tion provisions of the bill. Favorable action in the Senate is expected by Democratic leaders after the income tax program, approved by the House, is revised to ease the burden on persons of small incomes. 5 | 1¢ assing the bill by a wide mar-) ‘;E:&Y; ‘tJo 76, the House voted down an attempt by Representative ‘McCor- mack, Democrat, of Massachusetts, to insert a 2': per cent general mnm&; facturers’ sales tax into the bill finance the public works bond issue. 5 In rejecting the sales tax, 265 to 137, the House approved & revenue program ing income and gasoline taxes ggex:faklgng corporate dividends subject to the higher income levies. Carryover of Losses Halted. The taxes are designed to raise $220,- Pinchot Asks Judges Favored by Morgan To Resign Positions By the Associated Press. HARRISBURG, Pa., May 27.— Gov. Pinchot today called upon Pennsylvania Supreme Court Justice John W. Kephart and William I. Schaffer to resign, as- serting “judges who take favors from interests which are certain to have cases before them have utterly disqualified themselves.” Justice Kephart and Schaffer were named before the United States Senate Banking Commit- tee as being among thcse persons who were permitted by J. P. Morgan banking interests to buy securities at less than current market prices. STOCKS PUSHED UP BRIKLY IN EAVY VAVES OF BUYIG Proposal to Repeal Gold Clause Proves Tanic to Market. BY JOHN L. COOLEY, Associated Press Financial Writer. NEW YORK, May 27.—A smashing rally in stocks, a boom for commodities and a sharp dip by dollar exchange to- day measured the reaction of financial markets to proposed erasure of the gold clause from public and private debts totaling roughly one hundred billion dollars. Trading on the New York Stock Ex- change, where prices rose $1 to more than $10, reached record-breaking volume for a Saturday. At 12 o'clock noon, closing time, the ticker was half ,000 annually to cover interest and 2?1?011{1.&({011 charges on the bond issue. ‘Without a dissenting vote, the House adopted an amendment by Represent- ative Ragon, Democrat of Arkansas, de- signed to prevent income taxpayers from charging off year-old losses in making out income tax returns. This amendment grew out of the dis- closures before the Senate Banking Committee investigating J. P. Morgan & Co. Ragon told the House that had this amendment been in the law, it ‘would not have been possible for Morgan and his partners to avoid payment of taxes. It limits to the current year deductions of net losses of all descriptions sustained by individuals and partners. Under the present law, & year's carryover is al- 10"‘I!?hde bill empowers President Roose- velt to establish fair codes cf compe- tition in mduszryl, through suspension he anti-trust laws. c(}}e is empowered to fix maximum working hours and minimum wages for workers in industry. $2,000,000,600 to States. The public works prcgram has been cstunat‘c’d capable of giving abcut 4.- 000,000 men jobs. About $2,000,000,000 is to be advanced to the States and Jocal governments, 70 per cent in loans and 30 per cent in outright gifts. In addition, $400,000,000 is to be given the States for highway construc- tion. This is to be distributed on the basis cf cne-half for population and'a fourth each for area and post road mileage. This allocation was inserted in an administration amendment offered by Chairman Doughton of the Ways and Means Committee, who piloted the measure through the House. Attempts were made by Representa- tives Fuller, Democrat, of Arkansas, and Blanton, Democrat, of Texas, to restore the cld basis of allocation of one-third each on population, area and an hour behind the actual market, but advices from the floor said final prices were strong and that most issues had finished near their highs, despite late profit-taking. Sales approximated 4,- 310,000, shares, the second largest Sat- urday turnover on record. Although it was pointed out both here and in Washington that President Roosevelt's measure regularized a con- flicting situation, Wall Stre<t found it- self bitten by the inflationary bee and threw huge sums of money into the share and staple markets. ‘Whirling upward in an opening that saw blocks of 1,000 to 25000 shares change hands, the market billowed still higher, pausing now and then for profit-taking, but swiftly absorbing sales. Wheat, up aroumd 3 cents a bushel when trading began at Chicago, | was holding most of its advance as| the elosing gong_rang on the Stock | Exchange. New York cottcn, climbing | to the highest level since last August, finished with net gains of 85 cents to| $1.10 a bale. Speculators in sHver pushed that | metal sharply higher, the spot quota- | tion being 34!, cents an ounce, up & cent, while futures rose more than a cent. The May sugar delivery on the Coffee and Sugar Exchange sold at 1.71 cents g pound, the best price in three and a half years. Sugar futures clcsed with mcderate gains. Lead touched 4 cents a pound, highest since 1931. Final quotations clicked out of the stoek ticker at 12:30 p.m. giving the following last prices: Union _Pacific Railroad, $112, up $10.50; United States Steel, $53, up $1.75; United States Steel preferred, $95, up $4.50; American €an, $91.25, up $3.25; Case, $73.50, up $2; Du Pont, post rcad mileage m the States. On a final record vote, however, the change was approved 222 to 181. The balance of about $900,000,000 is to be expended on Federal projects, in- cluding a $100,000,000 Naval construc- tion program, gublic buildings, rivers and harbors, flood control and for preservation of natural resources. R. F. C. Duties Transferred. Already the administration is pre- paring to put the werks under this Iegisiation into effect. Brig. Gen. Hugh (Continued on Page 2, Column 4.) BRITAIN TO SAVE BY GOLD SUSPENSION Press Estimates £3,000,000 Will Be Sliced From June Debt Installment. By the Assoc New:papers pub- | today that Great would save around £3,000,000 in its June installment of the war debt if the American Congress passes the recolution abrogating the gold clause in contracts. The News Chronicle figures a saving of £3500,000 and the Daily Mail, £2,500,000, on the basis of the difference in payment in gold dollars and paper dollars. Cables recording the introduction of the resolution in Congress with specu- ons as to its meaning for Great itain and the eflect in the Uniied es were published prominently on t peges. ef explanatory notes were ap- d to the cable reports caliing ion to the effect on the British | debt and imolying that the pro- posal is welcomed here. Aside frcm | these there Were no comments, appar- due to the lateness of receipt of the news. RECESS MITCHELL TRIAL UNTIL NEXT WEDNESDAY Prosecution Was in Midst of Third and Final Phase of Income Tax Case. lished Britan predictions By the Associated Press. NEW YORK, May 27.—A week end rest that will stretch out unti! next Wednesday brought welcome relief to- day to heat-burcened prosecutors and defenders of Charles E. Mitchell, for- mer international banker. ‘When court adjourned yesterday the prosecution was in the midst of the third and final phase of its drive to convict Mitchell of evading $850,000 in income taxes.. This relates to the $78.75, up $7.37; United Aircraft, $31.12, up $2; Chrysler, $24, up $1.25; Ameri- can Telephone common’ up $537; American Tobacco B, $89, up $3; Liggett & Myers B, $92, up $4.25; Allled Chem- ical, $106.25; up $2; Johns-Manville, $39, up $4; Eastman Kodak, $80, up $4.50; Westinghouse Electric, $43.25, up $2; American Sugar, $62, up $2.75; American Smelting, $34, up $2.50; Ken- necott, $19.50, up $1.87; McIntyre Por- | cupine, $28.62, up 87 cents; Homestake | Mining, $220, up $3; Western Union, | $45.37, up $2.37. | | while. e Foenin WITH SUNDAY MORNING EDITION WASHINGTON s o Star. D. C, SATURDAY, MAY 27, 1933—TWENTY-EIGHT PAGES. #* Associated service. The only evening paper. in Washington with the Press news Yesterday’s Circulation, 118,957 (P) Means Associated Press. TWO CENTS. SIX PARTNERS OWE MORGAN COMPANY, PROBERS ARE TOLD Identity of Debtors Is Not Disclosed by Senate Investigators. DAVIS REVEALS FACTS AT CLOSED SESSION |Pecora to Ask A%ditional Funds to Investigation Through Summer Recess. Continue | 3 By the Associated Press. Though the Senate investigation of the Morgan Banking House was sus- pended for the week end, the inquisi- tors today gave to the public fresh news—that half a dozen of the 20 part- ners of the firm are in debt to it. The names of the six were withheld, but the information was considered of importance by some of the Senators who, pointing out that national banks are not permitted to make loans to their own officers, maintain private banks such as J. P. Morgan’s should be under Government regulation and sub- ject to similar restrictions. The information about the partners was given to the committee in execu- tive session yesterday by John W. Davis, attorney for the Morgan firm. Dispute in Committee. For the public, this news added just one more detail to the inside informa- tion on the House of Morgan revealed this week for tH® first time in four long and sensational days of hearings, with J. P. Morgan and several of his part- ners under relentless_questioning by the members of the Senate Banking Com- mittee and their counsel, Ferdinand Pecora. & Given a breathing spell until next| ‘Wednesday, committee infestigators be- gan intensive preparation for further disclosure of lony-hidden Morgan se- crets, but whether they would be per- mitted to complete their work depended upon the outcome of a dispute raging within the committee, and upon the will of the Senate. A controversy over the course of the inquiry bubbled to the surface yester- day when Senator Glass, Democrat, of Virginia heatedly demanded that Pe- cora_inform the committee where he was headed. Spectators burst into applause &s Pecora defended his activities and other Senators quickly came to his support. But the issue still was to be decided by the. committee and the Senate. More Funds Needed. The Senate comes in because the committee wiil scon need more money. An appropriation of $20,000 was voted yesterday. but it will only last a short Pecora has asked $75,000 to carry the work through the Summer Tecess. Whatever the final decision, how- ever, much of the mystery which has -surrounded the Morgan house since its formation has been dissipated. Before the uproar broke yesterday, Pecora brought out that the Morgan firm has an interest in utility companies supplying almost a quarter of the Na- tion’s gas and electricity, and covering a territory inhabited by more than 85, 000,000 persons. 1 He also showed that in forming the United Corporation, through which it reaches into the utility companies, the Morgan firm obtained 1,000,000 options for common stock in the holding com- | | pany at $30 below their prices less than a month later. The United Corporation, which main~ tains its office in the Morgan headquar- ters, was shown 'to have an interest in a dozen large holding and operating companies in as many Eastern States. Some of the previ disclosures about "~ (Continued on Page 2, Column 1) 'HOLLYWOOD SUICIDE MYSTERY PROBED| Wife Says “Capt. Hey,” Former | BANK TO REOPEN | AS BRANCH JUNE 15 Chevy Chase Savings to Be Taken Over by Riggs Institution on That Date. Approval yesterday by Justice James M. Proctor of the District Supreme Court of an order authorizing the con- servator of the Chevy Chase Savings Bank to sell the assets of ‘he institu- tion was followed today by the formal announcement that the bank will be taken over by the Riggs wational and reopened as a branch on June 15. The purchase previously had been &p- | proved by the controller of the cur- rency. The present depositors of the| Cneyy Chase Bank will have 60 per, cent of their deposits available when the | bank reopens. The other 40 per cent will remain in the hands of the con- servator for liquidation. HOME, WIFE !Prof. Ernest Durig Left to Foul Play Prof. Ernest Durig, Swiss sculptor, | was repcrted mysteriously missing from | his home today and his wife, admit- | | tedly worried over the possibility of foul play, was on thz verge of nervous prostration. Prof. Durig left his home at 1536 Connecticut avenue about 10 o'clock | last night after telling his wife he was going to attend a social function at | an embassy. | When he failed to return his wife chasge ‘he failed to report $666.666 re- ceived from the management fund of the National City Co. Mitchell holds it . was an-advance and mot a payment. became alarmed, but, fearing publicity mg:: ;;lr‘:v;r;:.hu safe return, did not Te] ppea to the police until this: morning. T o swflssr SCULP;OR FAILS TO RETURN Explorer and Extensive Land- owner, Took Poison. By the Associated Press. HOLLYWOOD, Calif., May 27.—A man identified as Capt. J. W. Hey and | said by his wife to be an extensive land | owner in Peru and a former explorer of South American countries, died today under mysterious circumstances which | caused police to order a thorough inves- t'gation. His wife and a friend, D. J. Hergung, a herb specialist, said Hey | dropped dead in their presence after announcing he had taken poison. The wonman told police the three were seated at a table when Hey excused himself and went into the bath room. A few moments later he returned. Mrs. Hey said her husband then or- dered her to take a note which he would dictate. She did as instructed. The note purportedly read: “I, J. W, Hey, have just taken four poisons. If I die it is my own fault.” After dictating the note, Hey signed it, his wife stated, and dropped dead. INFORMS POLICE Attend Embassy, Function. | Is Feared. Mrs. Durig declined to discuss her husband’s disappearance this morning, explaining she was too upset. How- ever, she referred reporters to a friend of her husband, who declared sh: had| reason to suspect Prof. Durig had been a victim of fcul play. “There’s nothing we can definitely lay a firger on,” the friend said, “and, ! for that reason, we would rather not| disclose the reason for Mrs. Durig's feeling.” When the professor left home, he| wore a dark mixed suit, a dark-blue shirt, a white linen vest. brown shoes and a silk hat. He rarely wore a hat, police were told, usually preferring to carry it in his hand. Prof. Durig's age was given as 37. 1ve BERN SN’ ON THAT EGG FoRTWo YEARS. (TS TIME \T WaS ouT! CHICAGO OPENS GATES OF HUGE CENTURY OF PROGRESS DISPLAY Postmaster General Ceremony Held Financial Success Forecast. By the Associated Press. ) CHICAGO, May 27.—A Century of Progress International Exposition, Chi- cago's second world fair, opened its gates today. ~ Conceived five years ago in the flush | of the greatest prosperity ever known, | its creation rode safely the rising tide of unprecedented economic distress that engulfed innumerable projects promoted in the same golden days of good times. Today it was dedicated, as a saga of achievement against huge odds and a drama of determination. Today $37,500,000 has been expended in its building. The gates were flung open at 8:30 Farley Officiates at in Soldier Field. am. and the vanguard of what is hoped will be an eventual attendance of 50,000,000 began to stream through the roads, the streets and the paths of a city man made out of the waters of Lake Michigan. The fair will close November 1. When the century the exposition | commemorates began there was no land | where the gaudy towers of the fair| rear their mathematical, modernistic | angles. Through the years all the ur-! ritory encompassed by Chicago's front | vard has been created. It is “made | land.” The actual opening was without ceremony. The clicking of the turn- stiles, however, was followed by a day of pageantry, including an official dedi- cation by Postmaster General James A. (Continued on Page 2. Column 5.) EMPLOYMENT GAIN REPORTED FOR MAY Green Fears, However, New Jobs Are Tapering Off for Summer. Trade union reports for the first part of Mey show a slight gain in employ- ment, President William Green of the American Federation of Labor, sald today in a statement on jobless condi- | tions throughout the country. He said that from reports received from affiliated organizations, employ- ment ‘“gained considerably” during April. However, while the charts con- tinue to show an upturn during this month, Green is of the opinion that the gain is “tapering off as the Sum- mer season approaches.” 0 Re-employed. The labor leader estimated 600,000 went back to work during April. “In spite of these recent gains, Green said, “improvement in the em- ployment situation is not up to normal for this season. Normally 600,000 per- sons should go back to work from Jan- uary to April, but this year the total decline in unemployment has been less than 100.000. Since this is less than the number taken to work on farms, unemployment in industry has actually increased since January.” Green declared that the combined figures of the Government and the ted- eration show there were 13.359,000 workers unemployed in March. In April, he said, there were unemployed 12.730,000. Statistics show the largest gain was 1n agriculture. 250,000 ‘where farmers are taking on help for the planting season; 165.000 obtained em- ployment in the retail trade because of the Easter season and the fear of in- flation. New Jobs By Industries. The manufacturing industry took on, according to the report, 100,000, which Green sald was about half the number that were laid off by the banking crisis. A total of 59,000 went back to work in the building trades, highway construc- tion made jobs for 20,000 and laundries and cleaners increased their pay rolls by 11,000 new workers. Green said the public works-indus- trial measure will prove a boon to em- ployment, “but the millions now de- pending on relief will for the most part have to depend on the process of busi- ness improvement and the fair practice codes to be established under the bill.” “These codes,” he added, “can do much to hast:n employment by provid- ing hours of work in keeping with the situation, short enough to create jobs and by setting fair wages to swell buy- ing power.’ VARE BOOM FOR G. 0. P. COMMITTEE LAUNCHED By the Associated Press. ¢ PHILADELPHIA, May 27.—A move- ment for the election of Willlam S. Vare. veteran Philadelphia leader, to the Republican National Committee from Pennsylvania by the “round robin” method was started yesterday. Edward Martin, State Republican chairman, started the indorsement on | its way with requests to members of the State Committee to sign their names. After a majority have given consent. | the Republican National Committee will be notified of the choice, and Vare will | be declared a member. Observers said Vare has little or no opposition. If the movement is successful, Vare would succeed the late Jay Cook, 3d, mm died recently while on a European p. | to the effect that the conditioning CANIPS HERE FULL, MARCHERS ADVISED Roosevelt Seeks to Discour- age Hordes Reported on Way to Washington. With the view to turning back hordes | of veterans understood to be heading for Washington to obtain admission to the Civilian Conservation Camps, Presi- dent Roosevelt today issued a statement | camps in the vicinity of this city have been filled to capacity by veterans who | have taken advantage of his offer to| permit 25,000 of them to enter the Con- servation Corps. The statement, which included a re- | port from Gen. Hines, administrator | of veterans’ affairs, follows in full: “The President has reccived a report! from Brig. Gen. Frank T. Hines, ad-! ministrator of veterans’ affairs, advis- ing that conditioning camps in the vicinity of Washington have been filled to capacity by veterans who have taken advantage of the President’s offer to permit 25,000 of them to enter the Civilian Conservation Corps. Facilities Are Lacking. “Gen. Hines says, in part: ‘Because | of the lack of any additional facilities for this area, it will be impossible for the veteraps’ administration in co- operation with director of the emer- gency conservation work and the War Department to make any further ar- rangements looking to the admission | to this work of any veterans now in Washington who have not been ac- commodated or who may prospectively reach Washington for the purpose of | entering this work. “‘To my mind it is of the utmost urgency that veterans now proceeding | to Washington be urged to return to their homes as well as for veterans planning to come to Washington for this purpose to give up such plans, as nothing can be accomplished here. “‘The fact that these veterans have been ' initially handled under special conditions should not be interpreted by veterans outside of Washington s prejudicing their interests in joining the emergency conservation work. Charged Against States. “‘The men handled locally will be charged against established States’ quotas and under the same terms as men have been cared for locally will veterans be cared for throughout the United States through the field offices of the Veterans’ Administration. “‘Regional managers of the Vet- erans’ Administration have already been given tentative instructions looking to the initial consideration of applications for veterans for membership in the veterans' contingent of the emergency conservation work and within the next 10 days complete insructions will have been sent to the managers of the fleld offices of the Veterans' Administration outlining the method to be followed by veterans for applying to these offices and for the selection by the managers (Continued on VISA PRICE RAISED BERLIN, May 27 (#).—Any German desiring to visit Austria must pay l.DOOi marks ($270) for a visa hereafter. This is a retaliation by the Hitler govern- ment for repressive measures against | Nazis in Austria, especially in connec- | tion with the recent visit to Vienna of Nazi officials, who were informed by | the government that they were not wel- | come. Propaganda Minister Joseph Goeb- bels, who had intended to visit Austria end Italy, starts tonight for Rome only, accompanied by his wife and retinue. ' FRANCE STILL COLD 10 DEBT PAYMENT 10 UNITED STATES Paris Also Contends Nothing Can Be Done at Parley Without Stable Dollar. By the Associated Press. PARIS, May 27—French coldness toward war debt payment has not been affected, it was said in official circles today by proposed American legislation concerning the gold clause. A high financial authority said that legalization of existing conditions should nol depreciate the dollar further im- mediately. America's further emphasis of an inflationary policy, -however, this suthority said, has strengthened the conviction that nothing could be done at the World Economic Conference until the dollar and pound are stabil- Consequently he expressed the opin- ion the conference probably will drag along like the disarmament conference | pending stabilization. ITALY WANTS REDUCTION. Rome Says Debt Can Be Met Only In Merchandise and Service. ROME, May 27 (#).—The Chamber of Deputies approved early today a na- tional budget, in connection with which its Budggt Committee presented a re- port last week insisting an 80 per cent reduction of the allies’ debts by ‘the United States is necessary. Alberto Asquini, undersecretary of corporations, speaking for Premier Mus- solini, told the Chamber recently that payment of the debts was unthinkable except with merchandise and services. Finance Minister Jung made a long speech before the Chamber vote on the budget, but did not mention debts, al- though he reaffirmed his previous state- ment that Italy would not abandon the gold standard under any circumstance. The finance budget foresees a deficit of about $170,000,000 in the fiscal year beginning July 1. Expenses are esti- mated at 20,614,000,000 lire and income at 17,014,000,000 lire. PARENT-TEACHERS’ CONGRESS IS ENDED Group on Record Deploring Fur-| ther Cuts in Budgets of Schools in U. §. By the Associated Press. SEATTLE, Wash, May 27.—On | record deploring further cuts in school budgets, the largest-attended conven- tion in the history of the National Con- gress of Parents and Teachers was at an end today after six days’ of sessions. ‘The 1934 convention will be held at Des Moines, the exetutive committee decided late yesterday after the bids of three other cities had been considered. It was decided that the board of man- agers should meet at Washington, D. C., in September to decide on policies and make recommendations to the State organizations. . Delegates voted for the retention and enforcement of the eighteenth amend- ment and the teaching in the public schools, without “propaganda,” of the “effects of alcohol.” Mrs. B. C. Hop- kins, an Iowa delegate, won approval for a resolution asking “more than sus- tenance” relief to depression victims, {/‘n( encourage higher standards of home e. . The membership pennant was won by the Texas delegation, which re- ported an increase of 111, per cent in_membership during the past year. Mrs. Hugh Bradford of Sacramento, Calif., national president, and the other officers of the congress will hold over for another year. DO Your Gucsts Fcel at Home? Mrs. Franklin D. Roosevelt will tell her theory of entertaining personal special article in the Society Secticn of Sunday's Star. This is one of a series of articles written es- pecially for The Sunday Star American Newspaper Alliance. ROOSEVELT'S GOLD. ACTION S LEADING TOPIC AT CENEVA League Circles Also Agog Over Reported Telephonic Talk With Simon. DISARMAMENT DESIRES EXPLAINED BY BONCOUR Denhw France Wants to Know ‘What Will Be Done About International Security. By the Associated Press. GENEVA, May 27.—President Roose- velt'’s action to abolish the gold pay- ment clause in all obligations, and a re- port that the President had talked by transatlantic telephone with Sir John Simon, the British foreign secretary, were principal subjects of discussion in League of Nations circles today. Commenting on the report of the conversation between the President and the British foreign secretary, Foreign Minister Joseph Paul-Boncour of France explained his nation’s disarmament de- | sires thus: “France wants to see what the Dis- armament Conference will do about in- ternational security and the control of armaments.” He added that he was trying to keep hopeful about the prespects for the con- ference but it was only natural France should give importance to what will be achieved in the domain of security. Norman H. Davis, American disarma- inent delegate, had a heart-to-heart talk with M. Paul-Boncour last night concerning the prospects for the con- ference and it was understood that the results were vague. Mr. Davis was present at a long pub- lic session of the League Council, ac- companied by Breckinridge Long, the new American Ambassador to Italy, who had been instructed to confer with him on the international situation. M. Paul-Boncour told the Disarma- ment Conference that France was prepared to go far in reducing military aircraft by stages, provided there was rigid permanent supervision of all air- craft. He also advocated international- ization of civil aviation. Failing this, supervision is essential, the French foreign minister said. “Do not forget that if military air- planes are abolished, big . civil planes will become battleships of the air,” he told the conference. Austria introduced. the abolition of mfllm’! aircraft. Ru- dolph Nadolny of Germany supported it on humanitarian grounds, painting a picture of the horrors of air bom- bardments of civilian populations. If President Roosevelt talked with Sir John Simon by telephone, as reported in Geneva, the conversation was be- tween Washington and London. The British foreign secretary returned to London from Geneva this week. GERMANY AWAITS U. 2 ACTION. BERLIN, May 27 (®.—Reports of America’s proposed statutory departure from the gold standard was received with the greatest interest today at the | Reichsbank, where two questions were | uppermost in the minds of the directors. They were: (1) Can Germany afford to continue on the gold standard if America should greatly devaluate her currency? |~ (2) How will giving up the gold standard affect Germany's repayment of private American debts? Officials declared themselyes unable, however, at this time to clearly diagnose the situation as affecting Germany. A Reichsbank spokesman said: “All we can do momentarily is to take cognizance of the introduction of the bill without being able fully to en- visage the consequences for Germany. “Everything depends on how America (Continued on Page 2, Column 2.) - |FOREIGN TRADE POST GOES TO BROOKHART Will Be Special Adviser to Study Export of Farm Prod- ucts. By the Associated Press. of Iowa today was appointed special adviser to study and develop possi- | bilities of foreign trade for American Yarm products under the new agricul- | tural relfef law. The selection was by George N. Peek, chief administrator, who said Brook- hart's efforts are to be concentrated on developing the possibilities of trade with Eastern European countries. Stationed at Washington “to under- take this special study of the adjust- ment administration,” as Peek put it, Brookhart will occupy one of the key posts in the set-up. ‘The position was created partly at the insistence of Peek, who has taken the position that potentialities of for- eign trade for American farm products have not been fully developed and that special activity in this direction would reduce the need of limiting American farm production to domestic needs. ADJOURN. JUNE 10 President Roosevelt and Senator Robinson of Arkansas, the Democratic leader, today fixed June 10 as the goal for adjournment of the extra session of Congress. and official guests in a and the North for Former Senator Smith W. Brookhart | COMMITTEE 0. K.S GOLD REPEAL BILL I BYVOTECF 12104 Steagall to Seek Rule to Bring Measure Before House Monday. PROPOSAL IS EXPLAINED TO MEMBERS OF HOUSE Luce Loses Fight to Prevent Can- celing All Contracts Backed by Metal. The administration’s resolution to cancel the gold clause in existing contracts, and make all obligations, | public and private, payable in legal tender money, also was approved to- aay by the Senate Banking Com- mittee. By the Associated Press. The House Banking Committee today approved the administration bill to out- law the “gold clause” of contracts and to make all contracts—both private and public—payable in legal tender money. The vote was 12 to 4. Chairman Steagall said after the Imeeting he would seek a Tule of pro- cedure to bring up the measure in the House Monday. A special meeting of the Rules Com- mittee was called for this afternoon to consider granting the rule. Before reporting the measure, the Banking Committee defeated, 11 to 5, an amendment by Representative Luce, Republican. of Massachusetts, to prevent the cancellation of existing govern- mental gold contracts. Luce maintained that the Govern- ment should continue to redesm its cbligations now outstanding with gold. Written Explanation Submitted. A written explanation of the measure by Assistant Secretary of the Acheson was submitted at the opening of the Banking Committee session. “This measure,” Steagall said, “ratifies, reafirms, confirms and makes legal a situation now existing. ' We are off the gold standard. I don’t know whether we'll ever get back on it or not. That is not worrying me as much as going off the gold standard did. . “This bill will put us on a managed It will broaden our currency ‘basis. “It frees s at home and abroad of de%ndence on_gold. ¥ is a -of econamic”in- dependence. It will restore prosperity.” Questionsd as to his assertion yester- day that the Tesolution repealed “the gold standard act,” S said: “It doesn't speci ly do that, but in effect it does. It's all the same. It makes it possible for the to ccxflltrol gold for whatever purpose sees fit.” Asked “Do you think it is consti- tutional?” Steagall assented. “Then you disagree with Senator Glass * (Democrat, Virginia), who con- tended it was unconstitutional Doesn’t Disagree With Glass. “No, I don’t disagree with Senator Glass. I never do,” Steagall replied. ecutive session to explain the bill Chairman Fletcher said he would ask for a swift decision from the com- ‘mittee. Controversy was foreshadowed, how- ever, by the presence of Senator Gl who said yesterday the 1 be held unconstitutional if the courts have any regard for the sanctity of contracts. Just before the meeting, Acheson had a chat with Senator Couzens, Re- publican, of Michigan, who conducted a one-man fight against his confirma- tion by the Senate to be Treasury ‘Undersecretary. Both appeared to en- joy:the conversation. ‘The bill is designed to forestall pos- sible attempts to challenge and break down the country’s abandonment of the gold standard, as the legislation formally cancels Lha;gnld clause in bil- liors of dollars w of Government and private bonds and mortgages. It declares that regardless of de- mand in any contract, past or future, (Continued on Pgge 2, Column 6.) 200 JAPANESE KILLED IN TUNNEL EXPLOSION Employes in Project on Bonin Is- lands Victims of Accidental Blast, Police Report. By Radio Dispatch to The Star. _ TOKIO, Japan, May 27.—Two hune cred Japanese employed in construct- ing a tunnel on the Bonin Islands were killed or injured in an accidental ex- plosion occuring at 7 o'clock this morn- ing. according to a cable received here from the island police. The Bonin group of islands lay in 1 the North Pacific and consists of four clusters, the best known of which are Ceffin, Parry, Peel and Kater. Their total area is about 29 square miles and the population about 4,000. Japanese ownership over the islands was recoge nized in 1861. (Ccpyright, 1933.) SIGNS SECU.RITIES BILL Roosevelt Approves Measure Control Stock Sales. President Roosevelt today signed the bill extending strict Federal supervision - over ihe issuance of new securities, The legislation, which was recome mended by the President to Congress, for the first time gives the Government control of stock sales. Administration of the law will be under the Federal Trade Commission. Enactment cf this bill brought the Roosevelt program for the extra session another big step, nearer to conclusion, IDE FOR READERS Page. Amusements to