Evening Star Newspaper, May 27, 1933, Page 2

S)X PARTNERS OWE MORGAN COMPANY ldentity of Debtors Is Not Disclosed by Senate Investigators. (Continued From First Page.) the international banking house were these: It had assets of $425,000,000 and de- posits of $340,000,000 at the close of 1932. More than 50 corporations doing in- terstate business maintain with it de- posits of more than $1,000,000 each. Members of the firm meet daily, but keep no minutes of their doings. Securities were sold to five lists of special customers at bargain prices. TWo of the lists, all made public so far, in- cluded the names of the late former President Coolidge, Secretary of the Treasury Woodin, Senator McAdoo, Democrat, of California; Norman H.| Davis, American Ambassador at Large; John W. Davis, John J. Raskob, Charles | A. Lindbergh, Newton D. Baker and | other celebrities. None of the 20 members of the Mor- | gan firm paid income taxes in 1931 or 1932, and their total in 1930 was only | $48.000 after payment of $11,000,000 in| 1929. Paid Tax in England. J. P. Morgan, senior partner, paid | ncome taxes in England during those | vears because the law there does not; permit deduction of capital losses. | Morzan partners hold directorships | in many large commercial banks and scores of the biggest business corpo- rations of the Nation. More than 60 officers and directors of banks have been extended personal Joans during recent’ years by the firm and some of them are still outstanding and undercollateralized. The Morgan firm and its Philadel- phia affiliate, Drexel & Co., maintain deposits of more than $30,000,000 in nearly 30 banks throughout the East. Total securities marketed by the firm, in collaboration with others since January 1, 1919, total $6,024,000,000, of Which about one-third have been paid off. About $18,000,000 of the firm’s re- se.ves are set aside to protect under- collateralized loans and are deducted from its net worth estimates. George Whitney, a member of the firm, made $889.000 profit in 1929 in a single transaction of 5,000 shares of stoek in Johns-Manville Corporation, of which he is director, in addition to a profit of $229,000 on Alleghany poration stock, which went to one of the special client lists. Testimony by Morgan that his bank 1s not subject to the usual bank exam- | ination because of its nature as a pri- | Proct vate bank, and his statement that pri- vate banks should not have the same scrutiny that chartered banks do, be- cause their relations with depositors are more intimate. Woodin and Dayis Hit. A declaration by Morgan that banks are a “national asset” ant “nation] danger.” A statement that the Morgan firm has never employed “high pressure salesmanship” and favors publicity on underwriting profits in the marketing of securities. A letter from Raskob, formerly chair- man of the Democratic National Com- mittee, thanking the Morgan firm for including him on a special client list and express| hope he could “recipro- cate” in the future. ‘Testimony that the Morgan firm did not expect beneficiaries of its bargain prices to rogate. These developments already have brought repercussions from both sides vate not a of the Atlantic, chiefly from the income | da special tax and client lists develop- ments. Scattered demands have been made in Congress for the retirement of Sec- retary Woodwin and Ambassador Davis. Congressional committees have acted to plug up holes in the income tax laws and agitation both for and against the income tax method of raising revenue has increased. Senator McAdoo, & member of the Investigating Committee, has denied he was a “preferred client” of the Morgan firm, and said that though he profited from one stock transaction, he lost on three others. The investigation has attracted Na- | tion-wide interest. Record crowds have | attended every session. Extraordinary | precautions have been taken to guard | the principals and the evidence in the inquiry, with special police and secret | service men mingling with the crowd.sl‘ and constantly following the chief characters in the drama. SEEKS TO CAPTURE ALL CUP MATCHES TU. 5, Having Won Three in a| Row, Hopes to Make It Five Straight. Having won three straight matches to clinch the American zone finals in the Davis Cup tennis series against Argentina, the United States Davis Cup | team sent its two singles aces against Adriano Zappa and Americo H. Catta- Tuzza of the Argentine this afternoon in an effort to win all five contests. In s0 far as the competitive feature | of the matches is concerned, it is all | over. George M. Lott and John Van | Ryn, United States doubles team, saw | to that yesterday when they over- | ments | # VING STAR, WASHINGTON, GLASS OBJECTS TO THREE-RING INQUIRY CIRCUS AT MORGAN Says Pink Lemonade Is Only Thing Needed to Complete the Picture. Sees Favored Lists as Noth- ing Worse Than Bargain Sale of Clothing. By the Assoclated Press. Senator Carter Glass of Virginia wants the Senate Banking Committee's investigation of J. P. Morgan & Co. to continue, but says “I'm still against making it a three-ring circus.” Only yesterday he clashed so force- fully with Ferdinand Pecora, committee counsel, that the spectators applauded Pecora. “Yes, I know,” said the Virginian, who has a reputation for speaking his mind in and out of the Senate, “I know that some people have the idea that I'm a representative for the House of Morgan, defending the interests and all that. “Well, here's the answer, if any is needed——" He took from the couch beside him an 86-page document, his banking bill passed Thursday by the Senate. .Cites Banking Bill. He thumbed it rapidly. “Read section 31. It provides tinat no officer or direc- tor of any Federal Reserve member bank shall be an official or any director of any concern whose business primarily is handling securities. 8 “Read section 8A. T know they sound technical, but get their meaning and the meaning of the separation of invest- ment and commercial banking. Then ask Morgan & Co. if they think they have influenced me.’ Glass tossed the bill aside. “I've urged the separation of invest- ment and commercial banking for almost three years. The only sentence of statutory legislation on that subject was drafted by me. I'm also member of the subcommittee which drafted and reported the securities bill, now law. It imposes drastic requirements on the issue of securities. ~I——well, that's enough on that.” He rose, “Now about my remarks during this SENATOR GLASS. hearing and that exchange. I felt and still feel that if any facts were procured by counsel that seemed important that we—the committee members—should be told about it. We've got & right to know. ‘Wants Justice Done. “I'm not a partisan of the House of Morgan, but I've got enough courage to see that they are done justice, whether I'm taking the popular side or not. I'd do it for anybody. “We’'ve got nothing that will enable constructive legislation thus far. There have been incriminatory implications from much of the testimony. I resent that—whether the man is rich or poor. “Those lists of so-called favored cus- tomers. Secretary Woodin's name was on there. A lot of others. Now an- alyze those purchases and you'll find the transactions were about as repre- hensible as buying clothing during a sale. I want the Banking and Cur- rency Committee to preserve its dig- nity. I want orderly instead of police court procedure. “I don’t want the committee made a vehicle to infuriate the ple against persons whose crime is that they have money. I don't want the committee made a circus. It has lacked only col- ored lemonade to complete the picture thus far.” ROOSEVELT’S GOLD ACTION IS LEADING TOPIC AT GENEVA (Continued From First Page.) eeds after passage of the bill. Leay- ing the gold standard in itself need ‘not mean great devaluation of the dollar, for our experience in Germany has proven that if the money in circulation is strictly limited, one can hold ex- change at the gold parity with only a small amount of actual gold. “If, however, America intends to in- flate her currency, then the result is favorable for Germany, in that we can repay in inflated, cheap dollars. “Another serious question then arises, however: Can Germany in the event of 8 serious devaluation of the dollar afford to remain on the gold standard?” ITALY TO PAY IN PAPER. $6,000,000 Interest on $100,000,000 Mor- gan Loan Is Due Thursday. ROME, May 27 (#.—Bankers said today that the government will pay $6,- 000,000 interest on the Morgan $100,- 000,000 loan .with paper dollars instead of gold when it falls due next Thurs- y. This follows similar action already taken in regard to the Italian corpora- tion’s dollar loans, American step to remove the gold clause from all obligations aroused only slight interest here. The govern- ment is studying it, but comment was withheld. Bankers sald the action had been | expected and that it merely gave legal form to what already had been in effect. | In reference to the permission to| foreign debtors to pay in ordinary dol- lars, bankers asserted this was a wel- come gesture in bringing a virtual re- duction of 15 per cent, but if Italy finds herself unable to pay, 15 per cent makes little more impression than no reduction at all. The budget report of the min- istry of finance, approved by the Cham- ber of Deputies yesterday, spoke of the “impossibility of paying.” SILENCE IN BELGIUM. Officials and Financiers, However, Not Surprised by U. S. Action. BRUSSELS, Belgium, May 27 (#)— Belgian official and financial quarters were not overly surprised by introduc- tion in America of legisiation for statutory departure from the gold standard, but declined to commit themselves or make official comment on the bills' consequences pending the re- | actions of other continental govern- | National bank officials were keeping n close contact with Paris and Lon- don, consiering the bill extremely im- portant. The Brussels market closely followed the Paris money market in reaction. BRITAIN SEES RELIEF. General Feeling Is That Debt Payment | Burden Will Be Lightened. LONDON, May 27 (#).—Although | whelmed Adelmar Eccheverria and Zappa in the third match of the series | at the Chevy Chase Club, to win an- | other straight set victo But inter- | national courtesy and Davis Cup tra- dition demands that all five matches be | played out. So Ellsworth Vines, tall Californian, who holds the United States slngles‘ championship, is to meet the fleet- footed and agile Cattaruzza in the fourth match, and Wilmer Allison, cap- tain of the United States forces, is to match shots and wits with Zappa leader of the Argentine team. The matches are to start at 2:30 pm. on the En-tout-cas courts at Chevy Chase where the North Americans have per- formed with scintillating brilllance for the past two days. It is more than likely that the United States team will win all five matches without dropping a single set, for beat Zappa in straight sets and on beat Cattaruzza in the same on on Thursday, while Lott and Ryn took three straight sets from entines yesterday. e United States team probably will sail from New York about July 1 for a European trip, where they will meet, the winner of the European zone final for the right to meet France in the challenge round. All the tennis world awaits another mecting between the indomitable Vines and Cochet, who has been the bulwark of the French in | their defense of the Davis Cup for sev- eral years. Vines beat Cochet in the American singles championship at For- est Hills last September. —_— Planes Bomb Paraguayans. 1A PAZ, Bolivia, May 27 (#) —An cfficial communique said yesterday that Bolivian bombing planes destroyed Paraguayan batteries at Fort Nana in the Gran Chaco, and caused enor- mous damage., . o Boy Electrocuted on Bridge. KANSAS CITY, May 27 (#).—Ten- year-old Eer] Rickart climbed a fifler ©of the A-S-B Bridge in North 15 City z to. investigate & Wd.l nest, gHe = & official comment on America’s action| in regard to gold was entirely absent| today, the general attitude seemed to| he one of relief that the June 15 war| debt payment to the United States will | not be so heavy a burden as it would | be if it had to be met in gold. There is little expectation in official | circles of any relief so far as the mid- June payment goes, and although there | is much’ opposition the belief is widely | held that the payment will be made | under the same conditions as the mid- | December payment—this is, with the | understanding that it is toward capital account and is to be considered in any | final settlement which may be reached. While this is the attitude in govern- | ment circles, another section of British | cpinion, representing holders of Amer- | |ican bonds which will be paid with | the depreciated dollar, is indignant at | | the newest development. |~ Plans are under way which probably | | will involve a meeting of proxy holders | | early next week to formulate a protest at what British owners of American | | bonds regard as a breach of their con- | tractural rights. Girl Tries to Save Tiny Brother and Both Are Rescued By the Associated Press. BRUNSWICK, Ga., May 27— Betty Jean Parry, aged 8, couldn't swim a stroke, but when her 6- vear-old brother Eddie tumbled into Brunswick Harbor she leaped in and clung to him until men rescued them. Seeing Eddie fall, the little girl hesitated only long enqugh to cry for heip and then followed him. Her cry and screams of other children attracted C. N. Maloy, who dived in, fully dressed, and dragged brother and sister to shore. ‘The boy was unconscious, but was soon Tevived. Betty Jean felt no {ll effects. ., WANTS SHARE N INDUSTRY B Civil Service Provision Also to Be Sought in Senate. The Senate will be urged to make two changes in the industrial recovery bill which passed the House yesterday, orie to include the District of Columbia along with the States and Hawaii in the Federal highway part of the public works program, and the other to place the employes who are to administer the bill under Civil Service and the classi- fication law. A delegation made up of representa- tives of the Board of Trade and of the District Government will appeal to the Senate Finance Committee Monday to put the District on a parity with the States and the Territory of Hawaii in the distribution of $400,000,000 allotted for highway work in the bill. ‘The hearing" will be attended by Dr. Llewellyn Jordan, George Graham and Robert J. Cottrell of the Board of ‘Trade and by District Auditor D. J. Donovan and Corporation Counsel Wil- liam W. Bride. Part of System. ‘The Senate’s attention will be called to the fact that a number of streets in ‘Washington are links in the cross- country Federal-aid highways, and also that the District of Columbia is a heavy contributor, in proportion to its popu- lation, in the payment of Federal taxes. Meanwhile, Federal workers, backed by the National League of Women Vot- ers, have started a drive to give prefer- ence in appointments under the legisla- tion to workers with civil service status, who are separated from other Gov- ernment agencies by the economy pro- gram, and pay the scale called for by the classification act. In its present form, the measure pro- vides for appointments without regard either to the civil service law, or rates of compensation fixed by the classifica- | tion act. The attitude of the workers was set | out in letters from the heads of the National Federation of Federal Em- ployes—Luther C, Steward, president, and Miss Gertrude McNally, secretary- treasurer—to members of the House, in which it is declared that the principle | they advocate is based on “real eco- | nomy. sound business administration | and fair dealing to Federal employes.” | Federation Letter. ‘This letter, in part, says: “As a result of recently enacted leg- islation, substantial curtailments have already been made in the number of civilian Federal employes, and large numbers of employes will be released in the near future, in addition to extended application of furloughs. The employes who have been dismissed or are about to be dismissed, entered the service as | result of competitive tests, have given | satisfactory service, and their dismissal is due not to their own shortcomings, but to conditions over which they have no control. und business judgment requires the utflization, where possible, of trained employes rather than to at- tempt to build up administrative or- ganizations with inexperienced and un- trained personnel. “We ask, in the interests of real| economy, “sound business administr: tion, and fair dealing to Federal em- ployes, that H. R. 5755 be amended 50 as to provide for the appointment of the necessary personnel, through compensation be fixed in accordance with the classification act of 1923, as amended.” With the measure out of the House, the fight now will center in the Sen-| ate, and it is there, to the Finance Committee, that Miss Belle Sherwin, president of the League of Women Voters, has addressed a communication of the same tenor as that from the Federation of Federal Employes. PAYNE NOT IN CRACK-UP Autogiro Instructor Never in Acci- dent While Training Students. It was erroneously reported in The Star on May 24 that William E. Payne, airplane and autogiro instructor at ‘Washington-Hoover Airport, was in the autcgiro of J. Townsend Russell as his instructor when the autogiro was damaged in a landing crack-up at the local airport. instructor, he was nct in the machine cn this flight, the instructor involved being John Miller of Philadelphia. Payne, who has been engaged in stu- dent instruction and charter flying at Wi competitive tests, and that rates of | gr, Though Mr. Payne was Mr. Russell's | INCOME TAX PLAN CHANGE EXPECTED Senate Believed Ready to Lighten Burden Placed on Small Earners. (Continued From First Page.) Johnson, retired, is to become. the ad- ministrator of the industrial section of the bill. A public works administration will handle expenditures of the $3,300,000,- 000 fund. The loaning facilities and authority of the Reconstruction Finance Corporation, as far as self-liquidating projects are concerned, are to be trans- ferred to him. Meanwhile, the act re- duced by $1,200,000,000 the borrowing power of the Reconstruction Corpora- tion. Sixty-four Democrats and 73 Repub- licans voted for the sales tax, while 228 Democrats, 32 Republicans and 5 Farm- er-Laborites voted against. ‘Without any trouble the Whittington amendment to transfer the existing 3 per cent electricity tax from the con- sumer to the producer was adopted, along with a number of perfecting amendments. Passage came after two days of de- bate. Democratic leaders on Thursday had managed to have a rule of pro- cedure adopted by a margin of only 19 votes. This rule prevented all but the Ways and Means Committee members from offering amendments and held off a deluge of proposals to change the bill. McCormack Offered Tax. Rega‘ning control of their huge ma- jority yesterday, however, the Demo- cratic leaders brought their full influ- ence to bear against opponents, .sand- wiching their speakers in evenly be- tween those of opponents. Late in the legislative battle pro- ponents of the sale tax shifted their tactics and instead of having it offered by Representative Bacharach, Repub- lican, of New Jersey, member of the Ways and Means Committee, they had it put forward by McCormack. McCormack said his proposition would raise $285,000,000 annually and in it he proposed the repeal of excise levies ort automobiles, trucks, checks, boats, automobile accessories and radio receiv- ing sets. Following are the major provisions of the legislation: Industrial control: Empowers President Reosevelt for two years to establish fair codes of com- petition in business through suspension of the anti-trust laws, to fix maximum working hours and minimum wages and to license businesses. Authorizes President to establish an industrial planning and research agency. Provides penalties for violations of established codes. Creates Federal industrial adminis- tration to carry out the President's orders. Public Works Provisions. Public works: @ Creates a public works administra- on. Authorizes a public works bond issue of $3,300,000,000. Contemplates an expenditure of $2,000,000,000 on State, municipal and other local &ovemmem projects. Provides at 30 per cent of the total cost of these projects are to be made in outright grants to the States and lesser governments, with the re- maining 70 per cent to be loaned to them at low rates of interest. Creates a Federal highway fund of $400.000,000 to be given the States on the basis of 50 per cent on population, 25 per cent each on area and post road- mileage, Provides that balance of about $800.- 000,000 is to be expended by the Fed- eral Government, of which about $100,000,000 is for al construction, and more for rivers and harbor im- provement, flood control, buildings and any project of a type heretofore ap- proved. Provides transfers loaning powers of the Reconstruction Finance Corporation effecting self-liquidating loans to the public works administration. Limits working hours to 30 a week and stipulates “just and reasonable” wages must be paid and outlaws prison labor under the highway construction section. Stipulates that local citizens and vet- erans to be given preference on jobs. Insists that materials and supplies us:;i on projects must be domestic prod- ucts. Taxation Provisions. Taxes: Provides $220,000,000 revenue pro- gram to cover interest and amortization charges of the $3,370,000,000 bond issue. Increases from 4 to 6 per cent income tax rates on net incomes of $4,000 and less, and increases from 8 to 10 per cent rates on higher incomes; to raise $46,000.000. Increases from 1 to 1% cents the tax on a gallon of gasoline; to yield $92.000.000. Makes domestic corporate dividends suBject to the new income tax rates, estimated to produce $83,000.000. Continues as a “precaution” the pres- ent base of taxation by extending for the fiscal year 1935, numerous existing excise levies yielding about $400,000,000. These include automobile, check, trans- fer, amusement admissions and other levies. Prevents carryover of net losses of any description by individuals or part- nerships, from one year to another, for income tax purposes, making payers absorb losses in the current tax year. Transfers existing 3 per cent elec- tricity tax from consumer to producers. Reduces borrowing authority of Re- construction Finance Corporation $1,- 200,000,000 Hit By Manufacturers. The bill was described last nght by the Naticnal Association of Manufac- turers as “unworkable in its present form” and likely to “retard rather than promote business recovery.” Announcing the “unanimous” opin- jon of the association's Steering Com- mittee, after a meeting here yesterday, Robert L. Lund, the president, said that “while industry has not prcposed such legislation, it is in entire sympa. thy with the objectives and will wil ingly co-operate in any practical pro- am.” In a statement, the committee listed as the “‘dangerous features” of the bill the provisions for licensing industry if necessary to produce stabilization, the failure to prcvide control of foreign competition, the employment clauses and the tax levies proposed. The licensing provisions were called “so drastic as to excite universal ap- prehension.” Favors Sales’ Tax. “They grant the power of commer- cial exile and complete confiscation of property,” the statement said. “There appears little need for such drastic au- thority in view of the remedies and sanctions elsewhere contained in the act, including all the process of equity, fines, authority to organize any group or industry that does not itself organ- ize and the power to repeal or modify any code or agreement.” Fear was expressed by the committee | that the attempt through the legislation |to raise the wage levels and increase | production costs would be followed by an influx of imports from low labor cost | countries. The association called the tax pro- posals “unfair and unendurable,” and said the dividend tax would discourage investment “when investment funds are already but 5 per cent of what they were in 1820.” ashington-Hoover rt for a num- ber of years, never hm involved in an accident while eng: in student mmmmmmm.m'm . She tax similar to that down by the pounds. -Her D. SATURDAY, MAY 27, 1983. World’s Fair Opens Gates Today GENERAL VIEW OF SET-UP FOR “A CENTURY OF PROGRESS.” ITH all its major projects complete, “A Century of Progress” exposition on Chicago's lakefront was officially (3 opened today. This view from the top of thd “Skyride” gives a glimpse of some of the scores of building occupied by exhibitors and concessionaires. L 5 HUGE WORLD FAR OPENED AT CHICAGD Farley Officiates as Century of Progress Exposition Gets Under Way. (Continued From First Page) Farley, representing President Roosevelt. As a climax tonight science will loose a ray from the star Arcturus to turn the switch lighting all buildings. ‘Today’s exercises were concentrated in huge Soldier Field, an integral part of the exposition grounds. At 11 am. the inaugural parade was planned to enter Soldier Field, with Mr. Farley, shortly thereafter, accepting & pen from the queen of the fair with which to sign the proclamation open- ing the exposition. e program called for brief speeches by Mr. Farley, Rufus C. Dawes, presi- dent of the fair; Chicago's Mayor Kelly, Gov. Henry Horner of Illinois and other dignitaries. after which the public was to be told to “go and see it.” \Success Expected. Tonight’s exercises will be held on the far-reaching esplanade of the Hall of Science Court. Lawrence Tibbett, noted opera star, will sing the National Anthent as Arcturus’ rays turn the vast grounds into a blaze of illuminated celor. Will a Century of Progress duplicate the success of the World’s Columbian Exposition of 40 years ago? Mr. Dawes, Lenox R. Lohr, Army major, drafted to be managing director of the e tion, and the hard-headed Chicago ness men who underwrote the bonds for the fair think so. They point out that the Columbian Exposition was held in hard times and set & mark of success that few exposi- tions, past or future, ever approached. ‘There was unusual pressure, even on the part of Chicagoans, to postpone the | project, at least for a year. They thought the times decidedly unpropi- tious. As late as last February, one Chi- cagoan, who had underwritten $250,000 of the bonds, called on Gen. Charles G. Dawes and explosively urged him to postpone the opening for a year. Just as explosively, the general urged him to tlk; an extended look'at the grounds. He did. 0Odds and Ends Remain. Later he telephoned briefly: “I have just come back and told my secretary to send a check for $250,000 today.” Ten thousand workmen feverishly swarmed over the fair grounds all this week, working against time to complete the exposition buildings and exhibits. It was not all done today, but it was complete enough that only odds and ends remained to be whipped into shape. The progress of industry in all its phases through the last century—that is the motive and message of the ex- position. Automobiles are being made before the eyes of the public, gasoline refined, | diamonds mined, science, agriculture, transportation are on parade. Amusements, seemingly endless, stretch along Ballyhoo Boulevard, dwarfing in number and variety the famed midway of the World's Columbian Exposition. All of these are housed in structures, breath-taking in modernity of archi- tecture; made vivid by solid hues from | the color pots of Joseph Urban and lighted with the flaming streamers of the most advanced thought of scientific illumination. Covers 424 Acres. Spanning the lagoon is the “sky- ride,” twin towers of steel, rearing 640 feet in the air, a colossus of steel in half-mile boots. It cost $1,200,000 Across its cables will shoot rocket cars at an elevation of 230 feet. On the other side of the lagoon are North and South islands; one, a fairy- | land for children, the other containing the Federal Building, Agriculture Build- ing, restaurants and concessions. From the Administration Building stretches the avenue of flags to the Hall of Science and general exhibits structure. Farther down is a section of the Montmarte, “the streets of Paris.” A short distance from there is little Belgium, its simulated classic architecture in striking contrast to the razor-like modernistic display buildings. The grounds roughly compose 424 acres, from Chicago's Twelfth to Thirty- ninth streets, sandwiched between the lake and Michigan avenue's serrated skyline. Tea Room Cashier Is Queen. Lifted from a commonplace existence in a world of reality to a position of fairy tale regality a 23-year-old Racine, Wis., tea room cashier awoke today as queen of the exposition. She is fair-haired Miss Lillian An- derson, chosen as the most beautiful from among 51 young women hailing from Paris, London and many Amer- jcan cities in an international contest sponsored by the Chicago Tribune and 51 affiliated newspapers. Besides the honor of presiding over numerous functions held in connection with the fair, Queen Lillian receives a $5,000 cash award. She said financial difficulties forced her to leave high school & few years ago and take a job as a cashier in a tea room. 3 'Two others shared in her glory today. They are Miss Lorraine Nevens, Evans- ton, IIl, until recently a Northwestern University co-ed, and Miss Ruth Hardle, Chicago, first and second ladies-in- waiting, respectively. For placing second in the contest Miss Nevens receives $3,000 and Miss Hardie $2,000 for third place. The other 48 entrants will form the queen's court. The is & blonde and is 5 feet 6 —A. P. Photo. Ordination PASTOR'S SON TO ENTER GOSPEL MINISTRY. . BRADFORD S. ABERNETHY. Ordination services in the gospel ministry of Bradford S. Abernethy, son of Dr. and Mrs. William S. Abernethy of Calvary Baptist Church, will be held tomorrow at 5 o'clock at the church. Assisting in the service will be Presi- dent Albert W. Beaven and Dr. E. W. Parsons of Colgate-Rochester Divinity School, Dr. C. Oscar Johnson, pastor of the Third Baptist Church of St. Louis and president of the Northern Baptist Convention; Patrick M. Malin, profes- sor of economics in Swarthmore Col- lege; Dr. William Allen Wilbur of George ‘Washington University, and Dr. Wil- liam S. Abernethy, pastor of Calvary Church. The candidate for ordination was born 24 years ago in Berwyn,-Ill. He received his early education’ in Kansas City, Mo., and this city. His college training was at Haverford College, from which institation he graduated in 1930. His theological training was taken at Colgate-Rochester from which institu- tion he was graduated the present week. Mr. Abernethy will be married in September to Miss Mary Jean Beaven, daughter of Dr. and Mrs. Atbert W. Beaven of Colgate-Rochester Divinity School, who will graduate in June from Mount Holyoke. Immediately following the wedding they go to Edinburgh, Scotland. where they will pursue fur- ther studies for a year. COMMITTEE 0. K.’S GOLD REPEAL BILL BY VOTE OF 1270 4 (Continued From First Page.) for payment in gold, any and all coin and currency of the realm shall be legally usable in payment. President Roosevelt explained it as formally ratifying, by legal declaration, an already existing fact. With gold barred, the United States and private debtors have been paying in currency, and the payment has been accepted generally, through attempts to force gold payment to bond holders at home or abroad have been expected. Some courts already have upheld this voiding of the contractual gold clause, but the United States has fall- ing due this Summer many bonds, all containing the gold clause. It will have to issue many more bonds and though it has no intention of writing the gold clause in them, has as yet no legal authority to leave it out. Before bond marketing time comes around, the Treasury wants the whole question settled. Cases might be taken to courts which might find, as Senator Glass insists, that the contractual de- mand for gold is sacred. Though offi- cials do not fear the ultimate outcome of such a ruling, the resulting confu- sion in the bond market might make tough sledding for Government issues. A collateral gain from this declara- tion is seen by officials in removal of tke premium on gold coin, which may now be hoarded by some, for satisfac- tion of private contracts. As money within the United States, it is to have no advantage on either silver or paper. Outside it might command & premium but it cannot be exported. Secretary of the Treasury Woodin and Chairman’ Fletcher, in explanation of the measure, said it was needed to fa- cilitate administration of the Govern- ment’s campaign against hoarding and to remove any question of “had faith” in connection with forthcoming Gov- ernment loans. The resolution asserted. that “the holdings or dealings in gold affect the public interest, and are therefore sub- {ffl to proper regulation and restric- jon.” It then asserted that obligations “which purport to give the obligee- & right to require payment in gold of a particular kind obstruct the power of the Congress to regulate the money of the United States and afe inconsistent with the declared policy of the Congress to maintain at all times the equal pow- er of every dollar.” With this ‘preamble, the resolution then proceeded to declare all such pro- visions “to be ‘against public policy” and forbid any such provision in future ob- ligations. The aim of the Ilegislation was sketched in the following paragraphs: “Every obligation, heretofore or here- after incurred whether or not such pro- vision is contained therein or made with respect thereto, shall be dis- charged upon payment, dollar for dol- lar, in any coin or currency which at the time of payment is legal tender for public and private debts. “Any such provision contained in any law authorizing obligations to he issued by or under authority of the United | States is hereby repealed.” Legality of the gold clause in public and private contracts has been a moot question since Mr. Roosevelt took the u::tanuuuni 125 eyes v;llndumbdl aa violet, _ Nation off the gold<stendard and it~ .of the metal, ROOSEVELT, I APPEAL FOR PEACE President and Japanese Del- egate Issue Joint Statement After Parley. By the Associated Press. An expression of hope for peace in the Far East and throughout the world and the return of prosperity was con- tained in a joint statement issued to- day by President Rocsevelt and Viscount Ishii of Japan. The statement was issued at the con- clusion of the conversations between the President and the Japanese rep- resentative, and it noted the “unusual situation” in the Far East. “We hope that the countries of the Far East” it said, “along with those of the Occident, will be able to con- tribute substantially, in a spirit of co- operation, to the laying of sojid foun- dations for a structure of world peace and prosperity.” Makes Final Visit. ‘The President and the Japanese en- voy also announced an understanding for a return of stable monetary con- ditions and for an improvement in the price of silver. Viscount Ishii made his final visit at the White House accompanied by Am- bassador Debuchi and Eigo Fukai, dep- uty governor of the Bank of Japan, and Juukuro Kadono, official adviser to the Japanese delegation to the London Con- ference. The party of four was im- mediately shown into the President’s private room*at the executive offices. The joint declaration follows: “At the conclusion of our conversa- tions we are happy to note that our views coincide in regard to practical steps which need to be taken toward solving the outstanding economic prob- lems which are now of common in- terest and concern to all nations. Hope for Peace. “We concur in the view that eco- nomic stability and political tranquil- lity are complementary essentials to & sound basis for peace; that neither of these can be achieved witheut the other, and that both economic and military disarmament are needed for their attainment. It is our ardent hope that both may be achieved. We have had, of necessity, to think of the unusual situation which has prevailed in the Far East during the past two years. “We hope that the countries of the Far East along with those of the Oc- cident will be able to contribute sub- stantially, in a spirit of co-operation, to the laying of solid foundations for a structuré of world peace and pros- perity. “We are in complete concurrence in the view that in place of the existing monetary chaos, there should be estab- lished, by international effort, an or- derly regime and that unreasonable ob- stacles to the flow of trade and capital where they now exist should be re- moved and where they do not exist should be adequately safeguarded against. Await Conference. “We consider it highly desirable that the price of silver be reasonably en- hanced and that silver exchange be stabilized. “With regard to many other meas- ures which need to be adopted in order to establish the conditions of economic and political health throughout the world we are in close agreement. “We look toward the convening of the World Economic Conference and we observe the work of the Disarma- ment Conference resolved to contribute to the maximum of our ability, in a spirit of utmost - co-operation, to the end that through the instrumentality of sincere and,determined efforts on the part of all the nations principles and practices may be agreed upon wfinch will be helpful to each and to all” CAMPS FULL, BONUS MARCHERS URGED TO STAY AT HOME (Continued Prom First Page.) of the men to be subsequently actually enrolled as accommodations will permit. “‘It is obvious that it is to the in- terest of the veteran to stay at his home at this time to assure himself of appro- priate consideration for the emergency conservation work if he is interested in joining that work. The total of 25,000 members of the veteran con- tingent authorized by you will be split into State quotas and regional man- agers can consider only those veterans resident in his State who apply directly at the regional office either in person or by mail.’ “By publishing Gen. Hines’ report, the President hopes that veterans who plan to come to Washington to seek admission to the camps may be advised of the situation prevailing in this area and will realize that it is to their best interest to be admitted to the con- servatiori camps through the regional offices of the Veterans’ Administration. Admission to the regional offices will be made more quickly and with greater economy to the veterans and to the Government.” it & i R Light to Warn of Bridge Draw. A traffic light will be installed Mon- the Anacostia Bridge, to warn STUDY FOR PARLEY ON VETERANS® GUTS House Democrats Getting Data for White House Meet- ing to Ask Relaxation. Auwmmn‘tee of seven House Demo- crats was in session today preparing data to be presented at a cgn!uence next week with President Roosevelt during which the members will appeal : !hg:“fil::el bl‘n":‘;;‘" for a relaxation T lons e national economy act affecting veterans. The party's Steering Committee late yesterday selected the committeemen \;:13:“! fl’)\lstl:lc#m nd:‘ the Democratic el ureday night to test against the administration of tl?:olfl, which, according to official reports, is causing the compensations of combat- wounded veterans to be cut 50 per cent. Action Not Unfriendly. Members of the committee are: Rep- resentatives Goldsborough of Maryland, Crosser of Ohio, chairman of the Steer- ing Committee; Lea of California, Pou of North Carolina, dean of the House; Lozier of Missouri, Patman of Texas and Hastings of Oklahoma. In announcing the committee in a formal statement, Representative Lea, chairman of the caucus, said “the ac- tion of the Steering Committee and the caucus was not unfriendly toward the President.” arilg?:ut et;le lfimtrh"" this movement wi ose entirely fri to the President. s s “Decided opposition was asserted in the caucus to some of the regulations, but the President was not criticized therefor. The economy program must harmonize with reasonable liberality and just treatment to our ex-service me}; and their dependents.” presentative Cochran, Democrat, of Missouri, who spoke against the nd;ln- istration of the economy act affecting veterans, also said in a formal state- ment that he did “not assail the Presi- dent, but I did, as forcibly as I possibly could, advise the members that in pre= senting their objections to the present regulations and schedule of ratings af- fecting service connected cases to the President they Be prepared to give ex- mpl; e::“ jus;::; ::e u:ompenuticn of ‘wou of duty wi being reduced.” 4 TATS Bill Introduced. 2 Meanwhile a bill to return to veterans hospitalization cut off through the regu- lations promulgated under the economy act was introduced by Senator George, Democrat, of Georgia. Introduction of the bill was accom- panied by brief debate, duflmfib , Republican, of syl- vania, sai doubt if there would have been a corporal’s guard voted for that bill (the economy bill) if there had been any idea of the regulations that have since been issued.” “I'm making no complaint of Presi- dent Roosevelt,” Reed said, referring to the granting of power to the President to reduce this form of veterans’ aid. “I don't believe a man walks the earth who would accept such a dictatorship.” Senator Black, Democrat, of Alabama, said his “impression of the economy bill is that the President now has the right to order hospitalization. “I do not believe,” said Black, “that the President was aware of the effect of the rule which was promulgated.” | PRESIDENT TO BEGIN RIVER CRUISE TODAY Small Party on Week End Trip to Include Secretary and Mrs. Woodin. President Roosevelt expects to leave the White House early this afternoon to spend another week end cruising about the Lower Potomac River aboard the presidential yacht Sequoia. # The President will be accompanied by a small party which will include Secretary of the Treasury Woodin and Mrs. Woodin, Rear Admiral Csry T. Grayson, formerly physician to the late President Wilson, and Mrs. Grayson and Miss Marguerite LeHand, Mr. Roosevelt’s private secretary. The President plans to sail from the Sequoia’s moorings at the Washington Navy Yard at 3 pm. He will return to _the White House tomorrow night. Because of Admiral Grayson's inter- est in local affairs the President may discuss with him matters relating to the District, particularly the problem of selecting the two civilian members of the Board of District Commissioners. Mr. Roosevelt intimated during the week that he hoped to make these appointments before long, but Post- master General Farley said yesterday before leaving for Chicago that he has not yet had time to take up the matter with the Presfdent. Farley indicated he has reached no conclusions as yet regarding the appointments. COL. T. H. RUSSELL PLUNGES TO DEATH President of Staunton Military Academy Falls From Hos- pital Window. ' e | By the Associated Press. PHILADELPHIA, May 27. — Col. ‘Thomas H. Russell, president of the Staunton Military Academy of Staun- ton, Va. plunged to his death yester- day from the window of a hospital where he had been under treatment for a nervous ailment. Col. Russell, who was 53 years old, was admitted to_the hospital May 16 under care of a Philadelphia physician and had been in a private room on the third floor of the institution. Hospital attendants said he was con- sidered sufficiently recovered yesterday to be permitted to stroll about the cor- ridor. He plunged from a window at one end of the hall. Col. Russell's body struck the ground near convalescent patients themselves on a lawn in the rear of the hospital. Attendants took him to the accident ward, but he was pronounced dead. Police were informed he has a son em- ployed in Philadelphiz. Col. Russell was a widely known educator. His wife was the daughter of the founder of the Staunton acad- emy. He was commandant of cadets at the Horner Military School from 1902 to 1904 and went to the Staunton acad- emy in 1920. Col. Russell was.president of Staun- ton City Council for two years and a the National Valley Bank He was & member of board of trustees of Mary Baldwin - lege and & major in the Army Reserve Corps. eral children survive, M’GLOTHLIN NO BETTER GASTONIA, N. C., May 27 (P.— Attaches of City Hospital said early last_night the condition of Dr. W. J. McGlothlin, _president of University, was ‘W » He fil a “fairly comfortal day, they