Evening Star Newspaper, May 28, 1933, Page 1

‘WEATHER. (U. 8. Weather Bureau Forecast.) Génerally fair today and tomorrow, fol- lowed by showers tomorrow afternoon or night; not much change in temperature. Temperatures—Highest, 89, at 1 p.m. yesterday; lowest, 66, at 9 p.m. yesterday. Full report on page 6. “From Press to Home Within the Hour” _ The Star is delivered every evening and Sunday morning to city and suburban homes by The Star’s exclusive carrier serv- ice. Phone National 5000 to start delivery. Star. z ’l § H\‘ WITH DAILY EVENING EDITION g (#) Means Associated Pr B No. 1471—No. 32,534 Entered as second class matte! post office, Washington, D. C. HOUSE ACTION DUE TOMORROWONGOLD PAYMENTS REPEAL Bill Rushed Despite Cries of | “Repudiation."’ STEAGALL DEFENDS PLAN FOR ‘MANAGED CURRENCY’ Glass and Few Others Condemn Measure as Move to Impair Validity of Contracts. By the Associated Press. ‘The administration’s move to abol- ish the gold clause in existing and fu- ture contracts and to make public and private obligations payable in legal tender money received speedy Congres- sional Committee approval yesterday to Set Aside Clauses| WASHINGTON, D. C., SUNDAY MORNING, British Expecting Chance to Pay U. S. In Cheap Dollars| Paris Attitude on Debts: | Unchanged—German Leaders Hopeful. By the Associated Press. | Foreign countries reported the fol- lowing reactions yesterday to the news of American action to remove the gold clause from all obligations: London—The British public expressed relief that the American action will sub- stahtially reduce the size of the British war debt burden to the United States. Paris—The value of the dollar shrank upon receipt of the news in Paris mar- kets, but the reluctance to make the war debt payments to the United States appeared to be unchanged. Berlin—German authorities were un- certain what effect the gold measure will have upon the Reich’s interests, but expressed the view that if the United States intends to inflate her (Continued on Page 4, Column 8.) WALL STREET DIGS and plans were completed for House action on it tomorrow. Despite the swift action on the reso- Jution, introduced only Friday, the pro- posal was assailed by some in both parties, who argued that it constituted “rank repudiation” and nullification of Government and private obligations amounting to approximately $100,000,- 000,000. Shortly after the House Banking Com- mittee reported the measure, 12 to 4, the Senate Banking Committee voted it out, 9 to 3. Then, to expedite House action tomorrow, the Rules Committee approved procedure giving the resolu- tion right of way. The resolution would make all con- tracts, heretofore and hereafter made, [ work created by the huge Saturday|was offered by Senator Johnson, Cali- flylble in legal tender coin, regard- |turnover of 4,300,000 shares on the New | fornia’s defender of the traditional pol- less of whether they contain & clause providing for their payment in gold. This would cover mortgages and bonds of all kinds, including Liberty bonds, all forms of securities and war debts, most of which have carried a clause in the past providing for their payment in gold. Executive Sessions Held. Action in all three committees came in executive sessions. Dean Acheson, the new Undersecretary of the Treas- ury, explained the measure before the Senate Committee. He said about $2,- 000,000,000 of the Government's $22,- €00,000,000 of indebtedness must be re- financed during the next few months and, therefore, action on the legislation was imperative. The House banking group acted after Chairman Steagall read a Treas- ury Department memorandum on the measure. By the narrow margin of 7 to 6, the Senate group defeated an amendment by Senator Glass,” Democrat, of Vir- ginia, to eliminate odligations to or from the United States Government. It was designed to require payments in gold on the $22,000,000,000 in outstand- ing Federal bonds and war debts due 31‘0 United States from European coun- es. As the measure now stands, foreign governments may pay $11,000,000,000 in war debts in United States paper money instead of in gold as contracted. and the United States may pay its bonds in currency instead of gold. “It is just rank repudiation, and that's all there is to it,” Senator Glass said. “They can talk themselves blue in the face and they can't make any- thing else out of it.” Glass joined Senators Kean, Repub- lican, of New Jersey, and Gore, Demo- crat, of Oklahoma, in voting against the bill. In the House Committee, Representatives Luce, Republican, of Massachusetts; Walcott, Republican, of Michigan; Brown, Democrat, of Michi- gan, and Reilly, Democrat, of Wiscon- sin, voted against the measure. Amendment Defeated. Earlier, the House group defeated, 11 to 5, an amendment by Luce to prevent the measure from becoming retroactive. Luce contended the “gold clause in existing contracts should not be abro- gated.” In a statement, Luce said the measure | “impairs the obligation of contracts, it is unfair, and undermines our whole business as well as our social structure.” “The worst part of this proposal is the breaking up of faith with those who | hold money in trust for the relief of the unfortunate and the affiicted,” he said “From the practical point of View this action,’ he said, “has two very serious objections; first, it restricts the freedom of our delegates to the London Fconomic Conference by at least in- timating what will be the policy of the United States, and secondly, it still further discourages merchants, manu- facturers and all men of affairs from attempts at immediate resumption nI‘ activities.” i Chairman Steagall said the measure “ratifies, reaffirms, confirms and makes legal a situation now existing.” “This bill will put us on a managed currency basis. It will broaden our currency basis,” he said. “It frees us home and abroad of dependence on gold. It is a declaration of economic inde- pendence. It will restore prosperity.” AUSTRIA BOOSTS VISAS FOR NAZI TRAVELERS Displeased Are Told German Government Because Hitlerites They Are Not Welcome. By the Associated Press VIENNA, May 27.—News from Ber lin that Germany is fixing a visa charge of 1,000 marks for journeys to Austria aroused excitement at the Aus trian capital. The government made no comment officially, but informally let it be known that Germany’s action would not change Chancellor Dolfuss’ determina- tion to suppress Nazi activities here. It was pointed out that Austria im- !(on’ou annuaily from Germany 120,000 schillings worth more than she ‘ex- to that country. Hence Austria i a good position to retaliate by throttling imports from Germany. The German Nazi government was displeased with the Austrian govern- ment because German Nazis arriving in Austria for a visit recently were told by authorities that they were un- welcome. . Acting Judges Sentenced. HAVANA, May 27 (®.—A military INTOPLEGF WORK Many Clerks Toil Through Night as Result of Sat- urday Orders. By the Associated Press. NEW YORK, May 27.—Wall Street brokers' clerks were digging feverishly tonight to remove the mountein of York Stock Exchange floor today. It was the second largest Saturday volume in the exchange’s history. Already far behind in their work be- cause of busy trading volume on Fri- day, the clerks plugged away posting in books the formidable pile of exe- cuted orders, confirming trades with other stock exchange firms and typing and mailing confirmations to custo- mers. Restaurants Stay Open. Many restaurants in the financial district, disregarding their usual nrly' Saturday closing, remained open long into the night to feed the thousands of workers, who after a brief dinner re- cess hurried back to their posts, = pared for a late vigil. - Partners in certain of the larger commission firms said that the clerks in some departments would probably catch up with their work by midnight. Others, after surveying the tre- mendous amount of executed trades, ‘with all the clearance and bookkeeping operations involved, expressed the opin- ion that their workers would have to toil throughout the night to have the |} decks reasonably clear for Monday's business, Several of the houses canvassed said that bookkeeping staffs would be kept at work all through Sunday and Sun- day night. The physical functions of stock ex- change firms which execute orders for the public call from departmentalized operations, such as clearing house, com- parison, mailing, bookkeeping and cash- ier's divisions. Clearings Task Huge. The clearing house departments op- erate in conjunction with the general clearing house of the exchange. The latter effects deliveries of securities bought and sold as between the various stock exchange firms “on balance” to obviate actual handling and delivery of the share certificates involved in every trade. The stock exchange clearing house faced a prodigious task tonight, as it prepared for the clearance on Monday of the huge business of Friday and Sat- | urday, aggregating about 8,600,000 ¢ shares. | Transactions on the floor of the ex- change, according to long-established | custom, go through the exchange clear- ing house on the following business day, except in the case of Friday's and Saturday’s business, which is cleared on Monday. Another wild scramble to convert dollars into stocks and commodities piled up the largest volume of trading ever experienced with rising prices in a Saturday session. Trading Is Feverish. Inflation fevers ran high, in response to the Government's plan to abrogate the gold clause in private and public obligations, and trading in the Chicago grain pit was almost as excited as the | dealings in the New York Stock Ex- change. While scores of stocks rose $1 to as much as $10, wheat made ex- treme advances of 3 cents a bushel. Silver futures jumped a cent an ounce, cotton about $1 a bale, rubber futures about !, cent a pound, copper ', of a cent a pound. hide futures ', to !, cent and raw silk 9 to 10 cents a pound Both stocks and average prices of sensitive raw commodities were back ! close to the levels of a year and a half | 2go. - FORD WINS VERDICT |Rhode Island Man to Seek New Trial in $100,000 Suit. PROVIDENCE, R. I.. May 27 (#) —A new trial will be sought by Herbert K. | Allard of Cranston, who lost his $100.- 000 suit against Henry Ford for com- | missions he sald were due him for ac- | quiring the Wayside Inn and other Sud- bury. Mass. properties for the auto-, mobile magnate. John R. Higgins, counsel for Allard, announced this morning he will file a motion for a new trial. A verdict for Mr. Ford was returned at 2 am. today by a Federal | Court jury "after " deliberating for 12 lours. MRS. COOLIDGE NAMED Elected to Board of Trustees of Mercersburg Academy. MERCERSBURG. Pa. May 27 (P —Mrs. Calvin_ Coolicge, widow of the former President, today was among five new members elected to the Mer- court today sentenced three acting Jjudges of municipal courts to 30 days detention and $100 fines for having ken Il of the Machado administra- The judges are Urbano Gomez, Emanuel Lofrano and Silvo Eredano Perdomo. [ cersburg Academy Board of Trustees. Her two sons, John and the late Calvin, jr.. once attended the academy. Mrs. Coolidge is the first woman member of the board. Dr. John Tim- | Fraternities—Page 5 SENATORS INSIST ONU.S. NEUTRALITY IN EMBARGO PLAN Roosevelt’s Proposed Waiver Blocked by Change in Committee. ARMS BAN EXTENDED FOR ALL DISPUTANTS Secretary Hull Believed to Have Assented to Johnson Resolution, Despite Earlier Request. By the Associated Press. ) ‘The Senate Foreign Relations Com- mittee yesterday registered unanimous dissent to President Roosevelt’s pro- posed waiver of American neutrality in the interest of maintaining peace. It attached to the House-approved arms embargo resolution an amendment under which the President, if he should find it necessary to declare such an embargo, must make it apply to all nations involved in the conflict to which it pertains. ‘Through Norman H. Davis, his am- bassador-at-large, Mr. Roosevelt early last week announced that if a satisfac- | tory measure of arms reduction cculdl be achieved, America wculd consult with other nations when war threat- | eped and if the aggressor country was ! satisfactorily identified would take no steps that would defeat collective ef- forts to avoid or end a war. ‘The amendment adopted yesterday icy of American isolation. Johnson said it “preserves American neutrality and retains, if an aggressor is to be designated, the right of the Congress, under the Constitution, to act.” Roosevelt Is Busy. While this forerunner of opposition to ratification of any arms reduction treaty based upon the Roosevelt peace proposal was appearing at the Capitol, Fresident Roosevelt busied himself with other aspects of international affairs. He said good-by to Viscount Kikujiro Ishii, with whom he had discussed all phases of Japanese-American interests, in preparation for the World Economic Conference at London. Mr. Roosevelt and the Japanese en- voy issued a joint statement saying they were “happy to note” that their “views coincide in regard to practical steps which need to be taken toward solving the cutstanding economic prob- lems which are now of common inter- est and concern to all nations.” Mr. Roosevelt has yet to complete the personnel of America’s delegation to the London Conference. Four dele- gates have been appointed—Secretary of State Hull, former Gov. Cox of Ohio, Senator Pittman, Democrat, of Nevada. and Representative Mc- Reynolds, Democrat, of Tennessee. In- dications are that two or possibly three more delegates will be chosen. So far no_Republican has been named. The Chief Executive Is maintain- ing a close watch on developments at the Geneva Arms Reduction Confer- ence. The administration is opposed to suggestions which have emanated from other countries that the arms confer- ence_be recessed during the period of the London Economic Conference. Uneasiness Shown. Some members of the Senate have shown uneasiness at the new Roosevelt foreign policy. Yesterday's committee action was the first concrete expression of it. Although Mr. Roosevelt intends not to include his peace doctrine in the arms treaty that may be signed at Geneva, the one will b2 predicated upon the other, and undoubtedly v\‘llll prove the major subject of Senate debate when and if the pact is sub- mitted for ratification. Senator Robinson, Republican, of Indiana, after the committee had ap- proved the resolution, with the amend- ment added, announced that he would (Continued on Page 3. Column 8.) TODAY’S STAR PART ONE—I18 PAGES. General News—Local, National Foreign. PART TWO—8 PAGES. Editorfals and Editorial Features. The Home Gardener—Page 4. Serial Story, “Valiant Dust"—Page 4. Community Chest News—Page 4. Gold Star Mothers—Page 4. Spanish_War Veterans—Page 4. Itallan War Veterans—Page 4. Schools and Colleges—Page 5. D. A. R. Notes—Page 5 D. C. Naval Reserve—Page 5. American_Legion Auxiliary—Page 5. Stamps—Page 6. Army and Navy News—Page 6. District National Guard—Page 8. PART THREE—8 PAGES. Society Section. Disabled American Veterans—Page 8. Organized Reserves—Page 8. PART FOUR—S PAGES. Amusement Section—Stage, Screen and Music. In the Motor World—Page 4. Aviation—Page 4. Community Cenier Activities—Page 4. Public Library—Page 4. Y W. C. A. News—Page 4. and American Legion—Page 5. Marine Corps News—Page 5 Veterans of Foreign Wars—Page 5. Yachting—Page 6. Radio—Page 7 News of the Clubs—Page 8. W. C. T. U. Notes—Page 8. PART FIVE— PAGES. Sports Section. PART SIX—I14 PAGES. Financial News and Classified Adver- tising. PART SEVEN—I6 PAGES. Magazine Sectlon. Reviews of New Books—Page 11. Notes of Art and Artists—Page 12. | Crossword Puzzle—Page 13. { Boys' and Girls' Page—Page 14. Highlights of History—Page 15. These Were the Happy Days—Page 16. GRAPHIC SECTION—8 PAGES. World Events in Pictures. COLORED SECTION—S PAGES. Holly of Hollywood; Keeping Up With the Joneses; Mr. and Mrs.; Tarzan; othy lswm‘e. sg;‘e:“.demcgt thiv::m Theologica Ty, a0, also Wi elected a member. f Little Orphan Annie; Moon Mullins; ‘The Timid Soul; Reg'lar Fellers; Mutt and JefX. MAY 28, 1933 —NINETY-TWO PAGES. 2 FIVE CENTS IN WASHINGTON AND SUBURBS TEN CENTS I ELSEWHERE I GUESS M PRETTY \ HOUSE DEMOCRATS GIGANTIC PROFITS MOVE FOR INCREASE BARED IN RECORDS BROOKHART PUSHES| SOVET. . TRADE Recognition Not Involved, Says Newly Appointed Market Adviser. By the Associated Press. Former Senator Smith W. Brookhart of Towa, named yesterday by adminis- tration agriculture leaders to develop foreign trade for American farm prod- ucts, last night disclosed he was seek- ing new trade arrangements with Soviet Russia and that “already some very im- portant moves have been made.” Brookhart said his relations with the Soviet would have nothing to do with recognition, “although as far as I am concerned I have always favored rec- ognition.” He added, however, that even without recognition, Russia pre- | sented “a really great feld” for the ! sale of American farm products. Appointment of the former Iowa Sen- ator was announced yesterday by | George N. Peek, chief administrator of | the new farm relief act. He himself said that Brookhart's work as a special advisor would be concentrated cn de- veloping the possikilities of trade with eastern European countries. Field of “Unlimited Demand.” | Brookhart termed the development of | trade with Russia “one of the most im- portant parts of my work.” | “When former Gov. Philip La Fol- lette (of Wisconsin) returned from | Russia recently,” he added. “he re- ported that country to present a field | of unlimited demand. | “I know that's true. I've been there | myself. “Russia has 160,000,000 people who are | being raised up to a new civilization | from a comparatively primitive state. | Their program of development is being done well and they are doing it faster | than any one else ever has. But there | will be an immense demand there for farm goods for many years.” | Brookhart asserted that “if we had had the arrangements last year,” the | United States could have sold 2,000- 000 bales of cotton in Soviet Russia. He said mills there were running far below capacity. | He considered wheat also a_com- modity that could be sold in Russia despite the immense amounts produced | there. Short of Live Stock Products. “They are using more of their own wheat inside the country now,” he said. “They are feeding their people | more. | “In some years they have produced | (Continued on Page 4, Column 7.) Four-Toed Horse’s Jawbone Found by Wyoming Student By the Associated Press. LARAMIE, Wyo., May 27.—The geology department of the Uni- versity of Wyoming announced today fragments, including the jawbone, of a tiny four-toed “dawn horse,” the ancestor of the modern equine family, and bones of an animal resembling the hippopotamus, known as the coryphodon, had been found by a high school student, Robert Stevenson. on Cooper Creek, west | of the city. | The discoveries will be sent to-| | { the American Museum of Natural History in New Ycrk for further examination. TWO STATE G REPEALHUGE VOTE Delaware Wets Lead 4-1. Nevada Ratification Vir- tually Assured. By the Associated Press, | Two States—Delaware in the East| and Nevada in the Far West—eppar- | ently were added yesterday to the Hxi States already counted for repeal of | the eighteenth amendment. | By a 4-to-1 margin “wet” delegates | were leading “dry” candidates in Dela- ware for seats at a State-wide conven- tion on repeal set for June 24. In Nevada a majority of “wet” dele- gates to a State convention also seemed | assured on the face of incomplete re- turns. Michigan, Rhode Island and Wiscon- sin already have formally placed their | State's vote on record for repeal. New Jersey, Wyoming and New York have assured official action by repeal vic- tories at the polls. WETS LEAD BY 4 TO 1. Received From 212 of 226 Districts in Delaware. WILMINGTON, Del, May 27 (#).— Unofficial returns from 212 districts out | of 226 on today's balloting in Delaware | for 17 delegates at large to the State Prohibition Repeal Convention showed those favoring elimination of national prohibition leading by a vte of 37,075 | to_10,156. | The vote, despite the efforts of both (Continued on Page 2, Column 3.) Returns STARLIGHT BEAM MAKES GREAT | EXPOSITION BLAZE OF GLORY Brilliant Symphony From Heavens to Brighten Night | of Light Launched| Show of Chicago Fair. By the Associated Press. CHICAGO, May 27.—Far into space | man reached tonight, snatched a faint | bit of starlight and used it to kindle | the Century of Progress Exposition city | into a brilliant symphony of light Precisely at 9:15 o'clock daylight time telescopes or four observatories were focused on the star Arcturus and | through them came a light beam that | was ensnared by photo-electric cells, amplified and relayed to Chicago and | made to turn cn a master switch which flashed the fair city into its first night | of glory. The scientific drama climaxed the | successful opening day's program of the fair, which is fo last through five months. Official attendance was an- nounced as 60,000. | The crowd watching as science| etched its feat of iiumination on a| huge board in the Hall of Science Court | cheered at the sheer beauty of the event. | Light Transmittal Recorded. A luminous map show:d location of | the observatories—Harvard_University, | Alleghany, University of Illinois and | the University of Chicago's Yerkes. A | neon tube recorded how each trens-| mitted light from Arcturus or an arti- ficial beam, ! The tube traced a glowing line be- tween the points as the circuit was completed. The “voice” of Arcturus | was a faint hum, then a louder drone. The current supplied by the far-off star turned the master switch, and a < | huge searchlight made a circuit of the | main exhibition halls like a magic wand, | | playing on other photo-electric cells. | Each building was lighted. | Dr. Edwin Brant Frost, director emeritus of Yerkes and who conceived | the idea of a cosmic touch for the ex- | position inaugural, acted as master of ceremonies Despite threats of clouds, he said im- | pulses came from each of the observa- | tories on schedule. Cloudy weather in | the East, however, presumably left to the clear weather stations at Cham- paign, Ill., and Wiliiams Bay, Wis., the | duty of catching the genuine arcturan | rays. Artificial ones were to be sent | from other stations in case conditions | were adverse. Multitude Stays On. Rufus C. Dawes, president of the fair, said the act was fitting for an exposi- tion that had as its theme man’s| achievements, especially in the scientific | ficld. Dawes, with Postmaster General | James A. Parley, was one of the speakers | at, the noontime dedicatory ceremonies. | The multitude that had come to see and do the new world's fair stayed on | to see its nocturnal wonders. From 9| o'clock this morning, when the exposi- tion began, its traffic arteries flowed with a swelling throng of humanity and | tonight the fair officials were jubilant over an auspicious opening. Traffic con- | gestion in the fair vicinity reached the | peak curing the early evening. Hampered in estimates by a break- down of the totalizer that was to| count electrically each turn of the | stiles and record attendance momen- tarily at a central office, the manage= (Continued on Page 2, Column 4.) | passed by the Senate yesterday and sent | | fecting retrenchments. | organizatiol | also expressed opposition SENTEVOTESRAL. COORDNATOR BL House Expected to Reject| Prohibition of Dismissal of Employes. By the Assoclated Press. ‘The administration bill granting pow- er to a Federal co-ordinator to work out economies in railroad operations was | to the House, where it will encounter op- position because of Senate amendments to prohibit dismissals of employes in ef- A similar measure before the House Commerce Committee is expected to be reported this week, but Democratic leaders at that end of the Capitol said | it would not carry the labor clauses put in by the Senate at the request of the railway labor unions. House leaders intimated strongly the bill would fail if these clauses remained, holding economies could not be effected unless some employes were dropped. Suspends Anti-Trust Laws. As passed by the Senate after a six- hour-day amendment had been with- drawn on announcement that President Roasevelt was against it, the measure | suspends the anti-trust laws for one year and authorizes a Federal co-ordi- nator to effect economies in co-opera- tion with three railroad regional com- mittees by: Eliminating unnecessary duplication of services, arranging for joint use of | terminals and trackage, taking steps to | avold waste and promoting financial re- | to reduce fixed charges and imprové carrier credit. This sec- tion is for a two-year emergency period, | but it could be extended another year if the President desired. The bill has two permanent sections, one repealing the recapture clause of the transportation act retroactively and the other placing railroad holding com- paniss under Federal control. | Although the co-ordinator could not fix rates, the bill sets up a new basis | for rate-making by declaring broadly that the Interstate Commerce Com- mission shall give consideration, in fi ing rates, to their effect on traffic move ments, the need of adequate, efficient railway service at the lowest cost con- sistent with furnishing it, and the need of revenues sufficient to enable the roads to provide this service. Fair Return Required. An amendment adopted at the re- quest of Senator Norris, Republican, of Nebraska, would require the commis- sion to fix rates to give a fair return | upon either a basis of prudent invest- | ment or cost of reproduction new, whichever was the lowest. “With either of these theories stand- ing alone, an unfair rate might re- sult,” Norris said. “There never will | be injury to any one if we couple the | two theories together.” Senator Black, Democrat, of Ala- bama withdrew his six - hour - day amendment when Chairman Dill of the Interstate Commerce Committee, in charge of the bill, announced he was | authorized to say the President opposed | it as “unworkable in this emergency and that it would ruin the bill.” Dill added the President’s position had been explained to the railway labor unions and they had agreed to abide y_it. The action was not_interpreted by Senators as blocking a shorter work day for other industries, but as merely ap- plying to the railroads. Just before pascage Senator King, | Democrat, of Utah, asseiled it as a step- ping stone to Government operation | and as taking the path to “autocracy in economic activities which. if persisted | in. will culminate in a political dicta- | torship.” Borah Fights Provision. | Senator Borah, Republican, of Idaho, | to setting aside the anti-trust laws to permit | mergers and consolidations as the roads | saw fit, but Dill eplained there was nothing in the bill that enlarge (Continued on Page 2, Column STRIKERS BURN CROPS Spanish Farm Workers Steal Cat- tle and Poultry. SEVILLE, Spain, May 27 (#).—Strik- ing farm workers in this vicinity to- day were burning crops, destroying farm machinerv and stealing cattle, poultry and grain products. Civil guards, concentrated in the dis- trict, arrested more than 30, regaining control of large areas. Farmers have complained it is impossible to live in the disturbed sections. The striking workers are dissatisfied with their labor contracts, formulated recently by a mixed arbitration com- | IN VETERAN FUNDS [Committee Will Ask Roosevelt to Save Combat Wounded From 50 Per Cent Cut. RAISE FROM $60,000,000 TO $110,000,000 SOUGHT Action of Steering Group and Cau- cus “Not Unfriendly to Presi- dent,” Lea Declares. A committee representing the Demo- will request President Roosevelt to rec- ommend an increase of from $60,000,000 to $110,000,000 in veterans’ appropria- tions in the independent offices bill so that the compensations for combat- wounded World War veterans will not be cut 50 per cent. This was authoritatively learned yes- terday after the committee had met in an all-day executive session. The com- mittee chairman, Robert Crosser of Ohio, said his group would go to the White House at the convenience of the President, which probably would be tomorrow morning. Meantime, Chairman Crosser said two members of the committee were en- gaged last night in drafting the formal suggestions to the President. He re- fused to divulge their names. Representative Lea of California, chairman of the Democratic causus and a member of the committee, said that in their discussion with the President the members would “summarize some of the hardships that have resulted from the existing regulations and ask modi- fications.” Bonus Not on List. “The Bonus,” he said, “is not among the things listed for discussion.” The committee is known to be anx- ious to present its suggestions to the White House early tomorrow, because the independent offices bill will become the order of business in the Senate the same day. The national economy act vested in the President sweeping powers to re duce pensions of veterans. The in dependent offices bill, which has passed the House and has been reported out by the Senate Appropriations Commit- tee, allots $231,730,000 for pensions for veterans of all wars. This is & cut of $361,000,000 under the appropriations authorized for the fiscal year 1934 by the last Congress and which met with a pocket-veto by President Hoover. Of the total sum recommended by the administretion in the new inde- pendent offices bill, $103,786,000 has been alloted to World War veterans, according to Veterans’ Administrator Hines. Of this sum, $64,902,000 is scheduled to be used for pensions for the combat wounded and the remainder for emergency officers’ retirement pay, death compensation and disability al- lowances, he said. Rating Charts Revised. Comparing these allotments with | those in the Hoover-vetoed bill, the combat wounded veterans’' allowance has been cut $156,837,875, despite the assurance by the administration at the time of the passage of the national economy bill that the war disabled vet- erans’ pensions would not be molested. In order to stay within this proposed appropriation, the Veterans' Adminis- tration has ordered all cases of disabled veterans whose injuries are presumed to have been incurred during the wir off the rolls. Still unable to come within the amount fixed, the Veterans’ Administration has revised its rating charts and is now cutting the pensions of the combat wounded. Figures presented to the committee yesterday by Solicitor James O’'Connor Roberts of the Veterans’ Administration were reported to have revealed that the average cut in this class of pensions approximates 50 per cent. This in- cludes, according to protests made by disabled veterans to the three veteran organizations, men whose limbs were amputated by shell fire in France. The committee members, who were selected following a Democratic caucus Thursday, are, besides Chairman Cros- ser, Representative Lozier of Mis- souri, Lea of California, Goldsbor- ough of Maryland, Patman of Texas, JeiTers of Alabama, Browning of Ten- nessee, Hastings of Oklahoma and Pou of North Carolina, dean of the House. Six-Hour Session Is Held. ‘This group went into session yester- day morning at 10 o'clock and ad- Journed at 4 o'clock in the afternoon. Closeted with the members during the utives of the American Legion, Dis- abled American Veterans and the Vet- erans of Foreign Wars and Solicitor Roberts. On Friday The Star revealedthat the disabled veterans were to be cut 50 per cent and Solicitor Roberts was called in by the committee to verify this statement. He reported it as correct and furnished the committee with ad- ditional figures showing the cuts would probably have to be more drastic. The Star stated Friday that after July 1, only 265000 disabled veterans would remain on the rolls, a cut of 63,598. Roberts, it was _authoritatively learned, estimated that In order for the | Veterans’ Administration to stay with- in the allotment of $65,000,000, there “(Continued on Page 2, Column 6. KEEPER SOUNDS FOG BELL WHEN MECHANISM FAILS Guardian of Long Point, Mass., Light Spends Two Sleepless Nights Warning Mariners. By the Associated Press. PROVINCETOWN, Mass., May 27— Thomas L. Chase, keeper of the Long Point Light, which guards the har- bor entrance, came to town today and told how for' two sleepless, fog-shroud- ed nights he had kept the fog bell tolling its warning to mariners. Early Wednesday night the mecha- cratic majority in the House tomorrow ! morning session were the national exec- | | OFMORGAN'SBANK Securities Sales Alone Netted Firm $18,284,908 From 1927 to 1931. MILLIONS WERE MADE ON OTHER OPERATIONS Pools in Stocks Among Deals Han- dled by Concern—Other In- formation Given by Files. By the Assoclated Press. NEW YORK, May 27.—Ferdinand Pecora, counsel in the Senate Bank- ing Committee inquiry, said tonight he knew of no one outside the com- mittee or within it who would be in- terested in “gagging him.” As for the statement of Senator Couzens (Republican), Michigan, that he had heard a “subtle cam- paign” was being waged against Pe- cora, the attorney said: “My record in the district attor- ney’s office is a record of 12 years, terminated nearly three and a half years ago. It is an open book and any one can look into every nook and cranny of it who wishes to.” (Copyright. 1933, by the Associated Press.) Profits of untold millions to the House of Morgan through security flo~ tations and syndicate operations were disclosed yesterday in documents obe- tained from the innermost files of the banking house by Senate investigators. ‘They showed the Morgan firm report- ed to the investigators gross profits of $18,284,908 from the sale of securities alone during the five-year period from 1927 to 1931, inclusive, in addition to untabulated millions on other opera- tions. Bare details of stock pool or syndi- cate operations in which the Morgan House participated hinted at uncounted millions of additional profits, but the total could cnly be guessed because of the form in which it was reported. Found Additional Profits. Committee investigators have gone back of the figures presented by Mor- gan and found additional profits which will be totaled and submitted later to the inquiry committee. The Morgan reports showed them only as shares still held. A joint account in Procter & Gamble Co. common stock from July, 1929, to June, 1930, in which Morgan's profits were $1,853,959, revealed the size of scme of the operations. A total of 186,900 shares were bought and sold for the account. The period covered by the figures in- cluded two and a half “bodm” years and the same number of “depression” years. Testimony before the committee has shown that the 20 partners in the firm paid total income taxes of $11,000,000 in 1929; $48,000 in 1930 and none in 1931. But the profits revealed yester- day were not divided into years. Operations of Pool. One of the most interesting docu- ments was a summary of the operations of the so-called bankers' pool which went into the market in 1929 shortly after the collapse. It showed the pool, listed under the name “Special Suspense Account,” made a total profit of $1,- 067,355, of which Morgan's share was $170,776. As these disclosures were made yes- terday, Senator Couzens, Republican, Michigan, a member of the Investigat- ing Committee, charged a “subtle cam- | baign” was being conducted against Ferdinand Pecora, the counsel who has been conducting the inquiry. Couzens said charges had been sub- mitted to him designed to “discredit” the aggressive committee agent, and that he was calling upon those who made them to submit their proof, if any. Pecora was the center of the clash in the committee Priday when Senator Glass, Democrat, of Virginia, demanded to know where he way heading in his questions. Other members of the committee sald vesterday, however, they were ready to back Pecora to the limit, and announced the inquiry would go on. Fletcher For Probe. Chairman Fletcher, in an interview, said the question of whether a single firm could “dominate” American indus- try and finance was & “matter of public concern,” and announced the investiga- tion would “go forward.” Another member of the committee said “all the power of Wall Street could not stop this investigation now until all is disclosed that should be.” While the controversy raged, Pecora was in New York, preparing to resume the lnl‘l:ll’)’ ‘Wednesday. Another development yesterday was a statement by members of the com- mittee that they were informed in ex- ecutive session Friday that half a dozen of the 20 Morgan partners were indebt- ed to the firm. The documents about Morgan’s oper- ations disclosed a mass of information about the great banking house that had not previously been developed. They showed the banking house had managed 76 security issues over the five-year period, amounting to $1,754,- 380,000, with a total gross profit, before g;;llzx’cslion of overhead, of $10,182- Operations of Affiliate. The firm's affiliate in Philadelphia, Drexel & Co., which partners in the firm said was really > nart of it, man- aged 43 issues. totaling seis,i94,000 with a profit of $4,426,088.91. The paren: firm participated In lssues totaling _ $3,631,501,600 and 5,646,373 shares of unestimated value, which were managed by others. Its shares of the sales were $344,226,035 and 318,500 shares, with total profits to the firm of $2,877,043. Drexel's prefits from participating in e, TSt B stead of by machines. . ls_l;xoes managed by other hLouses were 799,000. The Morgaa files gave mnuch addi- tional informetion also aboui the so- called selected : made public by the investigators, in- <l the names of many famous Continued on Fage 4, Oolumn 31 7