Evening Star Newspaper, June 1, 1933, Page 1

JUSTICE ROBERTS, W.W. ATTERBURY| ON MORGAN LRST OF SELECT CLIENTS Fourth Roster of Favored Purchasers Also Includés Two Justices of Pennsyl-| vania Supreme Bench. - HUGE POTENTIAL PRORIT ADMITTED BY WHIT*EY United Corporation Figure for 1929 Is Outlined to Senate Committee by Counsel Pecora in Examina- tion of Utilities StockhoMing Concern. R} By the Associated Press. A new list of selected clients of J. P. Morgan & Co. was placed be- fore Senate investigators today and it included the names of Owen J. Roberts, now associate jus- tice of the Supreme Court, and W. W. Atterbury, president cf the Pennsylvania Railroad. i The transaction involved: took place before Roberts was, ap- pointed to the court. The latest list, the fourthi pre- sented, was of persons sold 32,000 units of stock in the United Cor- poration—Morgan utilities stock holding 1929, at $75 each, although the price almost at once on the public market was $99. ' This list dealt with clients who purchased through Drexel & Co., Morgan affiliate, and included Pennsylvania State Sujreme Court Justices John W. Kephart and William O. Shaffer. Gov. Gifford Pinchot has de- manded their “resignation for being on a previous list. | Former Senator Pepper, ub- WEATHER. S mfl s m;n- T ™ g1 yesterday; lowest, t 5:15 am. 3 n:lln'putn"!"fl.bt Closing N.Y. Markets, Pages 13,14&15 ‘Washin, company—in January, | his l\l-_-u Circus Midget Sits InJ.P.Morgan’s Lap ators Outraged Sen Glass Laughs as Pecora Calls Press Agent Stunt an Outrage. Senate Banking Committee warned newspaper photographers today that if any pictures taken in the com- mittee room today showing J. P. Mor- gln with a circus midget sitting on is lap were used the photographers would be excluded from future hearings. A circus press agent placed the midget on Morgan's lap for photog- raphers while he was waiting for an executive session of the committee to break up. The incident was reported to the committee, and it sent out word the pictures must not be used. Ferdinand Pecora, committee counsel, told Senator Glass of the midget inci- dent, terming it “outrageous.” “Uh-huh,” was all Glass said, with a half smile. “Have you any comment?” Glass was asked. “I think I've already expressed my- self,” the Virginian said. Piloted by the enterprising _press The IFHT REPORTED KILLED IN CRASH OF ARMY PLANES Unofficial Sources Declare Craft Crashed in Cali- fornia Hills. {BOMBER AND OBSERVER COLLIDE IN HEAVY FOG 1 Lieuts. C. H. McHenry, E. D. Ken- nedy and W. L. Trimble Said to Be Among Dead. By the Associated Press. | "MARCH FIELD, RIVERSIDE, Calif., June 1.—Unofficial reports received here (Continued on Page 3, Column 4) U. . WILL NOT HELP PUNISH AGERESSOR Co-operation ‘Is Limited to Moral Pressure, Davis Tells Arms Parley. By the Associated Press. GENEVA, June 1.—Desiring to pre- vent any erroneous belief that Europe can count in advance upon the United States participating in punishment of a nation violating the disarmamnent con- vention now in negotiation, Norman H. Davis, American Ambassador-at- large, today explained the attitude of Government to the arms conference. Mr. Davis said the United States was plied obligation that it would join other nations in bringing pressure against a country violating the arms agreement. ‘He made it clear that the Washington Government was strong for meral pres- sure, but could make no promise be- forehand to punish anybody. Small Pewers Revoit. A revolt by the small powers, which lfimm :ndooummm of u;; conference, a compromise which the Steering Committee will sit during = conference recess to draft a revised arms convention, Artht Henderson, the chairm: lican, of .Pennsylvania,” alsh.was | BV on the list. Yesterday a list was presented of those who dealt directly Morgan firm. ¥y Atterbury was listed today for 2,500 units and Roberts for 100. £ The total units sold to those the list was in an amount total possible paper profits of faearly $2,000,000. Morgan Listens Closely. With J. P. Morgan closely f the testimony, the new list wasiplaced in the record sudde: was given by onard Keyes, soft- n office mangger of the firm, at the suggestion of Ji W. lass, Demo- crat, of Virginia, Keyes said the 20 rtners of the house of Morgan paid, including both State and Federal levies, income taxes amounting to $5,108,701 for 1927, $6,172,693 for 1928 and $10,- 990,876 for 1929. It had been previously testified they paid none for 1931 and 1932. Evidence also was presented that the | ‘United Corporation used an accounting system under which some of its gains could be distributed as “a return of slpltn.l" and not as “a taxable divi- Pecora introduced a memorandum explaining the accounting system used by United Corporation on its option warrants, Money received from exercise of the ‘warrants was credited to “paid in sur- plus.” Admits Big Paper Profits. George Whitney, Morgan partner, was on the stand at the time—he earlier having acknowledged to Pecora that a potential profit of $122,508,000 was available to the Morgan house if in 1929 it had sold securities received by it in forming the United Corporation. This phase of the inquiry into opera- tions of the international banking firm | was reached after it had been decided | in closed session of the committee to make public the Morgan partnership agreement, save for names of the pres- ent partners and the percentages of thelr interests. Pecora introduced the potential profit figure in connection with the United | ~ (Continued on Page 3, Column 2.) MARTIAL LAW DECLARED North Dakota Governor Intervenes in Labor Dispute. BISMARCK, N Dak, June 1 (®). Capitol Building as negotiations went | forward with the contractors to effect 8 compromise with striking common laborers. “RACKET” PROBE 0. K.'D Senate Committee Approves $25,- 000 for Inquiry. The Senate Commerce Committee today favorably reported the Copeland | resolution for an investigation of “rackets.” A Jimit of $25,000 is placed on the expenses of the inquiry, which would be conducted either by the full com- mittee or a subcommittee. ¥ !mm\‘&'nmlmendm country an information arms convention immune from prose- cution. Recess to June 27 Seen. The recess is expected to last until about June 27, by which time it is hoped that negotiations in the various capitals will have ironed out differ- ences on vital problems. The Steering Committee is to work on a draft con- vention based on the British plan sub- mitted early this year. The first of the “diplomatic negotia- tions will be in Paris Friday, when Davis will talk over the problems with Sir John Simon, British foreign secre- tary, and Foreign Minister Joseph Paul- Boncour of France. ACCORD, NOT PACTS, U. S. AIM. Delegates Seek Gentlemen's Agreement on Gold and Internal Policies. By the Associated Press. ABOARD 8. 8. PRESIDENT ROOSE- VELT WITH AMERICAN DELEGA- TION TO THE LONDON ECONOMIC | CONFERENCE, June 1 (#)—Broad agreements in principle rather than specific treaties are expected from the London Economic Conference, American delegates who are proceeding to this meeting aboard the steamship Presi- dent Roosevelt, revealed today. ‘“‘Gentlemen’s agreements” for the conservation of gold and for the co- ordinaticn of internai policies is hoped | for as an early accomplishment. Cordell Hull, American Secretary of | State, and chief of the delegation, and his colleagues spent a quiet day aboard ship, banning conferences or formal statements. The co-ordination of internal policies | of the leading nations on public works | and other capital expenditures for si- multaneous revival of industry and the | (Continued on Page 2, Column 3.) . LINDBERGH URGES MORE DIRIGIBLES Criticizes Naval Policy of Restrict- ing Continuation of Command. By the Assoctated Press. Col. Charles A. Lindbefgh today came to the defense of lighter-than- air ships as a vital phase in the gen- eral development of aviation in testi- mony before a joint congressional com- mittee investigating the Akron dis- aster. g Lindbergh said he felt it would be “unwise” to stop development in this field now. Asked his opinion of the cause of the Okron disaster, he criticized the naval policy of restricting continuation of command. “My personal opinion,” he said earnestly, resting both hands on the table, “is that it has been, and is, a mistake to discourage specialization in the service " LS SR T MOLLISONS PLAN HOP | May Leave London Monday on New York Flight. LONDON, June 1 (#).—Mr. and Mrs. James A. Mollison propose taking off Amusements Comics . Features . Finance from Croydon Monday on a non-stop fiight to New York as the first leg of & flight d.wmch ‘would establish three world records. ‘With only one day's rest in New York, they plan to fly non-stop to Bagdad and thence back to Croydon, a total dis. today said that eight men were killed in midair collision of two Army Air Corps planes above Cajon Pass, in_the mountains to the gast of San Ber- nardino. A second report from San Bernardino was to the effect that two planes carry- | ing seven men collided, killing three of them. Neither could be verified imme- diately. ‘The report to the Army Air Base here said one craft was a bomber carrying seven men and the other an observa. tion plane with a pilot. The bomber was en route to San Francisco end the other plane to Las Vegas, both dis- patched out of March Field. The weather was foggy over the mountain. Officers at the base said they be- lieved the men in the bomber were Lieut. Charles M. McHenry, pilot; Lieut. Edward D. Kennedy and five enlisted men, three of whose names were given as Pvts. Spencer, Decker and Ramino. The other two were not identified. Four of the, enlisted men were from March Field' and one from Crissy Field, San Francisco. The fiyer in the observation plane was identified as Lieut. William L. Trimble. The unofficial report said the wreck- age of the two planes had been found { with eight bodies. FORMER DRY HEAD OF N. Y. IS INDICTED C. P. Mills Named With Others in Bill Charging Liquor Conspiracy. NEW YORK, Junie 1 ().—Ghester P. former : oy ictment charging [ the pronibition The indictment “diversion of industrial sicohol” M Home s b Fairfield, Conn. " Mills, who is a West Point graduate and who retired from the Army in 1905 with the rank of major, succeeded John A. Foster as ibition administrator ;ngshg New York district on March 1, Less than a year after he had taken Omké:e lreflce!i Mul;ym l!madu\n a r en Representative Florello LaGuardia to Secretary of the Treasury Andrew Mellon. LaGuardia charged Mills with imcompetent to serve as prohibition ad- ministrator and alleged that he, Mills, viclated the law by “personal purchases of liquor while he has been directing prohibition activity.” The former Congressman later re- peated his charges against Mills on the | floor of the House. With the result that on June 25, 1927, he was. ordered trahsferred from' the office here. Two nation from the prohibition service to days later Mills telegraphed his resig- ting. C., THURSDAY, e ToRS THE JGHTEST TOHINK OF ME.! 0ESNT GIVE CHANCE JUNE 1, 1933—FIFTY-TWO PAGES. REE Yesterday’s Circulation, 120,179 UP) Means Associated Press. SENATE CONCLUDES RECOVERY HEARING: REVISION. PLANNED Alterations in Tax Provisions Enacted by House Are Indicated. Roosevelt Given Ovation at Close of His Address at Annapolis. The list of names of the class graduated at the Naval Academy to- day will be found on Page C-8. BY J. RUSSELL YOUNG, Staff Correspondent of The Star. UNITED STATES NAVAL ACADEMY, Annapolis, Md., June 1.— Addressing the graduating class of the Naval Academy here today, President Roose- velt appealed to the large crowd of white-uniformed young men assembled before him, to cultivate the friendship of their 1 n_and to avold “This I ask you, not only for your own’ but for your country's sake,” Mr. elt advised. The President motored here this morning to hand out commissions to the new class of officers, almost half of whom are being returned to civil life. It was the first time since entering the White House that Mr. Roosevelt has left the Capital to make an address. The President reminded the gradu- ates that, now that they are becoming officers of the United States Navy, they are mot set apart as a clique, with being | different interests and different ideas from those of the rest of the country. | yAnd to those of the graduating class not being commissioned in the Navy, but being graduated with degrees, he advised that they should now enter civil life with no exclusive relationships. | Receives Ovation. Mr. Roosevelt spoke from a platform | in Dahigren Hall, amid a colorful set- Mrs. Roosevelt occupied a seat Dr. James M. Doran, prohibition ad- ministrator at Washington. on the platform near him. remarks were brief and at their conclusion, the commander-in-chief of the Army and In 1928 Mills was awarded the $25,- 000 W. C. Durant prize for “The Best Navy was given an ovation. Departing from his prepared speech, and Most Practicable Plan for Making the Eighteenth Amendment Effective.” The committee awarding the prize said Mills’ wife “nearly beat him to the Mr. Roosevelt disclosed to the cheering assemblage that “I love the United States Navy more than any other branch of the Government.” 1 prize,” her plan being among the last six considered to be best. The plan _for which Mills was awarded the prize dealt in detail with prevention of diversion of industrial alcohol, which, Mills said, “is the Pflnclpfll source of supply for the boot- egger.” BRITISH TREASURER AVOIDS DEBT QUIZ Neville Chamberlain Refuses Commit Self on June 15 Installment. to By the Associated Press. LONDON, June 1.—The House of Commons failed again today to pry from Chancellor of the Exchequer Neville Chamberlain a statement of the British policy in regard to the $75,950,- 000 war debt instaliment due the United States June 15. Frederick 8. Cocks, a Labor member, asked whether the government had jreached any decision regarding pay- ment of the installment, and Mr. Cham- | berlain replied: “It would not be desirable for me to make any statement in regard to this matter at present.” “Why?” asked a number of members {of the House. | Mr. Cocks insisted on some sort of declaration, asking: “Will the chan- cellor take into consideration that many American authorities would like | to see us cut the Gordian knot in this matter by repudiating our liabilities?” “All relevant _circumstances,” Mr. | Chamberlain replied, “will be taken | into consideration. Further questions failed to elicit even a hint regarding the war debt!' policy. This strengthened parlizmentary opinion that_the government is_cling- | ing to the hope that some policy of ! debt relief or suspension will be an-! nounced from Washington before the | ?;Voxlvl1 zEconomlc Conference convenes une 12. R RATIFIES REPEAL TRENTON, N. J, June Shortly after noon today Gov. A. Mocre called to order New Jeru'yh': tance of 12,000 miles. Success would mean they would make the first Lon- don-to-New York flight, and the m two-! North Atlantic wfl:‘!n-x the world’s record. . convention to ratify repeal eighteenth amendment, fifth State to do_so fol'ml(léy ‘With 224 the 226 delegates to repeal, the convention was to a resolution placing New The former Assistant Secretary of the Navy beamed his interest in the occa- sion with a broad smile as he handed over the neatly rolled commissions. He recalled on his last visit here on a simi- | lar occasion, as Assistant Secretary, he (Continued on Page 4, Column 1.) —_—— SCHOOL GIRLS FLEE FIRE 100 Were Taking Exams When Nazareth College Blaze Starts. ROCHESTER, N. Y, June 1 (#.— More than 100 girls taking examina- tions in Nazareth College fled in safety at 9:15 am. (E. 8. T.) when fire broke out in the three-story frame building. Many of the girls, under direction of sisters of. the faculty, returned to the building to save valuable oil portraits, books and school records. e fire. of undetermined origin, started on the east side of the build- Hawks Plans Test .+ Of Robot Pilot in 14-Cylinder Plane By the Assoclated Press. LOS ANGELES, June 1.—Capt. Prank Hawks, air speedster, to- morrow morning will set forth in a14-cylinder, low-wing monoplane capable of 260 miles an hour to test a robot pilot described as so ingenious as to put a human pilot to_shame. destination is Floyd Bennett Airport, Brooklyn, N. Y. He will not try for a speed record. ARMY TO MAINTAIN PRESENT STRENGTH Divisions Ordered to Keep | -Present Personnel, Both in Officers and Men. Orders have been sent to divisional headquarters of the Army that the pres- ent strength is to be maintained, both in officers and enlisted men, until fur- ther instructions. A final decision on all economies within the War Department is to be | made within a few days. President Roosevelt has asked authority of Con- gress to reduce expenses by furlough- ing certain officers. This' power was approved by the House, but was struck out by the Sen- ate. Dern Opposes Cut. Secretary of War George H. Dern disclosed today his personal lack of sympathy with the administration’s plan to furlough 2,000 or more regular Army officers and reduce the enlisted strength of the Army in the interest of economy. With the issue about to reach an acute stage not only in the Budget Bureau but also in Congress, Secretary (Continued on Page 2, Column 1.) MAJ. GEN. KING RETIRES; SERVED IN EVERY RANK Fort Benning Commander Enlisted as Private and Served 86 Years. By the Assoctated Press. FORT BENNING, Ga., June 1—An active Army career of more than 36 years, that carried him through every rank of the peace-time Army, was ended today for Maj. Gen. Campbell King. The general, who entered the Army as a private, left early today -for Flat Rock, N. C., after four years and one month as commandant of this post—the home of the Infantry School. Gen. King is retiring at his own re- quest. He commanded Fort Benning longer than any other officer. He came here in 1929, succeeding Gen. Edward Collins, who had been transferred to the Philippine Islands. There were no cere- ing and crept up the outside to the roof. It was extinguished without heavy loss. monies at his retirement. He didn’t want them. CAMP FOR UNEMPLOYED WOMEN TO BE BUILT WITH U. S. FUNDS ' Mrs. Roosevelt and Miss Perkins Announce Plans for Bear Mountain Experiment. By the Associated Press. Establishment at Bear Mountain, Y., of the first woman's camp for un- employed through use of Federal funds was announced at the White House to- day by Secretary of Labor Perkins J(;lll‘lfly with Mrs. Franklin D. Roose- velt. In an area already ‘“honeycombed with girls’ camps,” to use Mrs. Roose- velt’s own phrase, this camp, created at_her suggestion, is expected to test out the problem of whether camp life similar to the reforestation system for men is suitable for jobless, unattached to be taken camps | the Hudson, in Bear Mountain Park, ‘administration of vorced from reforestation funds and N.|from the reforestation camp system, coming instead under emergency relief. by t The announcement of the first work- ing camip at Bear Mountain was made at a press conference in the White House. A second camp is to be es- tablished nearby. The following statement was given out to newspaper women: “Secretary Perkins, to whom Mrs. Roosevelt had referred the s to offer opportunities to young women in the camp employment. said that ex- periments were being made in this field, and that they would be extended as needed if they proved satisfactory and practical “High up on the western bank “: the temporary L State of New York is conducting an it it with PROBE OF FORESTRY Wyoming Senator Would Give Howe Chance to Explain Suggestion to Fechner. Louis McHenry Howe, -secretary to | President Roosevelt, will be permitted |to explain in open session why he sug- | gested that Robert Fechner, director of | emergency conservation work, purchase /200,000 totlet kits for the forestry army at $1.40 each without calling for bids, according to an announcement today by Senator Carey, Republican of Wyoming, author of a resolution calling for an investigation into the matter. Senator Carey said he hoped to obtain alreddy has of the committee. In even inquiry is authoriged, Secretary Howe probably will be the first witness. Suggested New York Firm. Fechner, testyfying at an executive session of the Military Affairs Commit- tee yesterday, disclosed that Howe called him on the telephone and suggested that the contract for the toilet sets be let to the BeVier Corporation of New York. Later Howe sent him a letter, Fechner confirming the telephone message and bearing the approval of President Roose- | velt tg the purchase. ‘The committee also heard Maj. Gen. John L. DeWitt, quartermaster general of the Army, who testified the Army could duplicate the kits at 85 cents each and had been buying somewhat similar sets for 42 cents each. Y Carey’s resolution was approved by the committee after its provisions for a general inquiry into all purchases by Fechner’s office had been eliminated. President Approved. Gen. DeWitt, according to Senator | Carey, submitted to the committee & | letter plaints about the kits that were being furnished the boys in the reforestation camps and that some of the shaving cream was sour.” They also quol Gen. De Witt as saying the Army had b:ezflx buying and supplying “much better stuff.” The members added that the quar- termaster general had told the com- mittee conservation officials had in- structed him not to buy any more kits for the Civilian Conservation Corps, but that he had replied he could not act on their authority. Fechner, it was sald, admitted he had not tried to compare prices in buy- ing, or bargain with the Be Vier Cor- poration. TWO SCOTTSBORO YOUTHS SENT TO JUVENILE COURT State Does Not Oppose Review of Case on Ground Boys Were Under 13 Years of Age. By the Associated Press. DECATUR, Ala., June 1.—The cases of Roy Wright and Eugene Williams, two of the nine colored youths indicted in the “Scottsboro case,” today were ordered transferred to the Juvenile Courts of Morgan County for review. ‘The hearing on wm‘um for writs of habeas corpus in of the boys, whom_ defense counsel contended wen: only 13 years of age at the time of their arrest on charges of attack, was h.\‘lell,]:nsdut't'ew transfer was not opposed “The State does not oppose these cases being reviewed by the Juvenile Courts,” said Attorney ‘Thomas E. Knight, jr., directing the prosecution, “but will contend that they should be referred back to the Circuit Court be- cause of the gravity of the offense.” tnesses were called by the it and Mamie Williams, mother of the other defendant. The were ¢l with seven others with attacking two white women on a freight train near Scottsboro, Ala., | two years ago. Rome Envoy Arrives in U. 8. m”mvonx..nmlm‘—mm in the Orient, Auriti Gia- Ambassador to Japan, on the o PURCHASES URGED was sald by Carey to have testified, | tonS to JOHN L. LEWIS INDORSES MEASURE FOR ALL LABOR Takes Issue With Lamont That Clauses in Bill Are Now “Uncertain.” By the Assoclated Press. The Senate Finance Committee to- day closed its public hearings on the industrial recovery-public works bill ‘|and expects to begin revising it to- morrow, with indications it will change some of the House taxes inserted to finance the $3,300,000,000 construction program. Chairman Harrison sald some change in the House tax program of raising income and gasoline levies was con- templated, but he had not sounded out full sentiment of the committee. Wm@ glt.h John L. Lewis, president of the United Mine Wi indorsing the measure on behalf of all l rganized labor dustry stands for the open shop. Lewis said “secret service” operai na and the , among the dmlma‘ic prodn&t?u'“ d importations jon and and to the tion in products thereof 5 vl?ixfl the the or = drawn from in violation of any State of Federal law or the P! thereunder.” Would Replace Long Bill This short amendment is intended to replace a 40-page bill drafted by the Interior Department and which Sen- ublican, of Kansas, er in the Senate as dustrial an Douglas Fechner, May 18, ery bill. t! the purchase, which was President Roosevelt in a letter to proved by the President. A letter Speaker Rainey and Vice President thmnng ulhim:m of 200,000 of the Carer S -llmdy s gle haps was sent to the BeVier Corporation egislation May 15, Carey said. the in bill, but had not Committee members said Fechner had | specified what addition he said there had been a “lot of com- | would favor. P B gt o the 1 bill princip: e that control of produ would be given to the President instead of to the Secretary of Interior as in the original bill At the outset of the Senate Finance Committee’s final public hearing on the industrial bill, it heard a plea from J. Howard Pew, president of the Sun Oil Co., for a general sales tax to finance the $3,300,000,000 construction bond issue. Opposes Gasoline Taxes. Opposing the proposed raise in gaso- line taxes, Pew said: “If you are going to go on putting confiscatory taxes on a few, while let- ting others escape entirely, there can |ggg be no other outcome but the destruc- tion, one by one, of all our great in- dustries. “Everybody is pleading for a general and reasonably uniform advance in prices,” he said, “as the most effective (Continued on Page 2, Column 7.) 75,000 COAL MINERS GET WAGE INCREASES Pay Boosts of 10 to 18 Per Cent Given Workers in 4-State Ap- palachian Bituminous Area. By the Associated Press. CINCINNATI, June 1.—More than 175,000 bituminous coal miners in the TWO CENTS. THE POST 1S SLD TOUNAMEDBUYR WITH S8500 B0 Hearst Representative Stops ! at $800,000—Paper Will Go On Publishing. TMRS. WLEAN OFFERS | $600,000 FOR PAPER Reported to Have Planned to Sell Jewels, Including Hope mfl,' to Raise Sum. The Washington Post. for 56 years one of the National Capital'’s outstand- ing daily newspapers, was sold at public. auction today for $825,000 to George. E. Hamiiton, jr., a local attorney repre-- senting an undisclosed principal. T | grg §_§§. 4 L : the new owner v ratification. the- sipaits on ment of a receiver it brought out. Established in 1877. The Post was on Decem- ber Céac}'i?’ by Btumn!}mu:hlu. who operaf successfully for many It changed hands before his M" and on October 9, 1905, it was ! son, Edward B. McLean, and the Amer~ ican Security & Trust Co. as co-trustees of his estate. WIND AND SNOW DELAY ' scale MATTERN’S GLOBE TRIP