Evening Star Newspaper, June 7, 1933, Page 1

“From Press to Home Within an Hour” The Star’s Carrier system coversevery WEATHER. (U. 8. Weather Bureau Forecast.) Generally fair, continued warm tonight and tomorrow; gentle to moderate south- west winds. Temperatures—Highest, 88, at noon to- day; lowest, 59, at 5 a.m. today. Full report on page 9. Closing N.Y. Markets, Pages 13,14&15 ¢ Foening Star. ‘WITH SUNDAY MORNING EDITION city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. Yesterday’s Circulation, 118,246 No. 32,544, “ntered as second cla t ‘a s matter on, D. C. \\'ASIIL\'G'I'(L\'._Y B4 WEDNESDAY, [ a JUNE 193 () Means Associated TWO CEN Press. 'HIRTY-TWO PAGES. MATTERN PASSES NOVO SIBIRSK N HIS WAY 0 CHITA Texan Is Behind Time of Post and Gatty After Delay at Omsk. WING STRUT IS BROKEN IN LANDING IN SIBERIA Pilot Praises Soviet Officials for Excellent and Willing Help on Flight. MOSCOW, June 7 (#)—Fifteen hours after he had passed Novo Si- birsk, Jimmy Mattern, Americzn round-the-world flyer, was unre- ported todav so far as Moscow knew, but unless he had encoun- tered difficulties with his plane he should have reached Chita, Siberia, ' the next stop on his schedule, By the Associated Press. NOVO SIBIRSK, Siberia, June 7.— Jimmie Mattern was sighted here at 4:10 a.m. today, Moscow time (8:10 p.m. E. S. T, Tuesday). He was flying high and fast toward Chita, Siberia, his destination in the fifth lap of his round- the-world flight. This town is about 400 miles due east ©of Omsk, Siberia, from where he hopped off at 1:10 am.. Moscow time (5:10 pm., E. S. T, Tuesday). His average speed was about 130 miles an hour. Chita is about 1,300 miles east of | Novo Sibirsk. LEAVES OMSK BEHIND TIME. Mattern Confident of Success Despite Delay for Repairs. OMSK, Siberia, June 7 (#).—Jimmie Mattern, a little behind the globe- encircling flight record he seeks to better, zoomed across Siberia today confident of ultimate success. Day was just breaking when the Amerjcan pointed his plane for Chita, 1,700 miles east of Omsk, just 3 days, 12 hours and 50 minutes after leaving New York. Before him on the fifth leg of his lone journey was favorable weather with very light headwinds, a clear sky and good visability. “T'll beat 'em yet!” he exclaimed, after their departure from New York in 1931, 10 Hours 40 Minutes Behind. By this computation the Texan was 10 hours 40 minutes behind his pred- | ecessors’ mark, but Post and Gatty lost 141, hours later at Blagovest- chenck, when their plane became mired. Mattern landed here just 54 minutes shead of the Post and Gatty time, but in bringing his gaily-colored machine to earth, a wing strut broke, necessitating | Lunch Eats Snake; Adder Subtracted From Zoo Exhibits By the Associated Press. HOUSTON, Tex., June 7— Puffy, the prized spreading adder in a zoo here, did not eat his lunch yesterday—his lunch ate him. A large rat was thrown into the snake pit by Hans Nagel, curatcr, who was feeding the snakes. The rat attacked the | adder and killed it. Then the rat ate the snake. WAGHERAPPEALS FORRECOVERYBL | Senator Warns Definite Ac-| | tion Is Needed as De- bate Starts. | | | | | By the Associated Press. | The administration’s industrial re- covery-public works bill—last of the major measures to come before the ex- | tra session—began its journey.through ithe Senate today with Democrats con- | ident they could prevent drastic re- | visions to be proposed by Republicans and some members on their own side. Senator Wagner, Democrat, of New York, principal author of the bill, opened debate after Republican reg- | ulars in party conference had decided | to press for a sales tax of 11, per cent to finance the $3,300,000,000 Federal, | State and local construction program. The Republicans also decided to pro- | pose elimination of the section author- | izing the President to license industries to force their adherence to fair trade agreements adhered to by a majority in an industry. Democratic leaders predicted this as well as the sales tax would fail. | Warns Distress Is Not Over. A warning that the economic emer- gency is not over and that definite ac- tion is still required for revival was sounded by Senator Wagner, principal congressional author of the administra- tion measure. Wagner took the floor | to defend the daring experiment in in- dustrial planning that it undertakes, as well as its huge $3,300,000,000 program of Federal, State and local public works. | The proposed sales tax, to be offered by Senator Reed, Republican, of Penn- | sylvania, would exempt food, clothing, | | medicine and fuel. If the sales tax| | fails, as Democratic leaders predict, the | | Republicans planned to propose elimi- | nation of the Ji-cent increase in the | 1-cent-a-gallon gasoline tax. Twenty-seven Republican regulars attended the conference. Its decisions were not binding, as in the case of a caucus. Senator McNary, the Republic- an leader, told newspaper men after- | wi ard: “There was a very general feeling of | pproval, that a sales tax be | | ‘ Describing the bill as an *“employ- | ment” proposal, Wagner told an atten- | tive Senate that while there had been some “slight rovement” in economic | | conditions in the las three months,| i if nothing is done to speed revival “we shall not only lose such gains as have | been made, but shall relapse into a | chaos, the consequences of which are | too alarming to contemplate.” Wagner asserted the suspension of | & delay for repairs, | anti-trust lJaws contemplated to permit He made good use of the time, how- | trade agreements under the bill was ever, for he spent a few hours in re-|directly intended to carry out the freshing sleep, sorely lacking in his| objectives which those laws failed to record-breaking transatlantic hop to | achieve. Jomfruland Island, a short leg to Oslo, “The purpose of the anti-trust laws,” Norway, and the two succeeding hops to | he said, “was to prevent the excessive Moscow and to Omsk. He made the 1,450-mile Moscow-Omsk jaunt in 12 hours and 21 minutes, at an average of about 120 miles an hour. The Texan landed here at 1:35 p.m. | Moscow time Tuesday (5:35 am. E. S. ‘T. Tuesday) and took off again for Chita at 1:10 am. Moscow time today (5:10 pm. E. S, T. Tuesday). Praises Soviet Officials. (Omsk is three hours ahead of Mos- cow time, so dawn was &t hand at the time cf the take-off.) i Betore leaving here, the smiling, youthful American praised Soviet offi- cials at Omsk for their excellent and willing help. “I am ell right” he said in a tele- phone conversation with an Associated | Press representative in Moscow. “Every- | thing’s all Tight. That wing strut has | been_fixed here. | “They have been awfully good to_me here. They had more food than I've cver seen in one place waiting for me | when I pulled in. Just as soon as I stopped eating they put me to bed. “T'll make Chita if all goes well. If (Continued on Page 3, Column 3.) 10 PERSONS IN JAPAN | Several Buildings Destroyed at Air Corps Station at | Hamamatsu. | By the Associated Press. . TOKIO, June 7.—Three explosions in the powder magazine at the Hama- matsu air corps station tonight re- sulted in death or injury to more than 10 persons. Several structures were destroyed. Expectations were that the casualties | would prove to be much larger. Hama- matsu is 120 miles southwest of Tokio | checked in the slightest degree the concentration of wealth and to keep intact the social and econcmic oppor- tunities of small business men, laborers and consumers. “Even from the start, the method | had slight chance of success, because ! it was not based upon a twentieth cen- tury economic philosophy. * * * Business Expansion Cited. “The anti-trust laws have not constant growth in the size of business units, and the intensifying concentra- tion of a relatively few enormous enter- priscs. They did have other effects. “And as in the case with most laws which are out of touch with the times, many of the effects were bad. * * ¢ Business expanded in size by ruthless " (Continued on Page 2, Column 5.) NEW COMMISSIONERS SOON TO BE NAMED President May Make Known His Selection of D. C. Heads Tomorrow. Postmaster General Farley, who was designated by President Roosevelt to consider applicants for the District Commissicnerships, said today the Presi- dent may be in a position to announce these two appointments before the end of the week. The Postmaster General, in making this statement at the White House, in-l dicated there was a possibility the selec- | tions might be made known tomorrcw. | Mr. Ferley has worked out a list of about six names to submit to the Presi- dent. The actual selection will then be Jeft to the President. Mr. Farley would not discuss any. rames nor venture any opinion as to the possible selection of any of the cancidates. PROSPECT OF DOUBLE AUTO FEE HAS NEW YORKERS UP IN ARMS . | ‘Aldermen Vote Mayor’s Plan Setting Up License Charge Equal to State’s. By the Associated Press. 110 cents by way of the Harlem River NEW YORK, June 7.—Major storm | bricges. v tc | They will pay the same fee on leav- | of protest swept over the city today as| o " reature of the plan threatens | nearly a million automobile owners con- | ¢, "1 oy additional cost upon the city | templated the almost assured prospect | owners when they leave mwnfirm:’ ',h';‘ t double license fee on their | outlying counties” have _threatene« i ::’,’mg 2 | fight back by a special toll on their| g | roads to be levied against New Yorkers The city’s Board of Aldermen, acting opjy- on a plea of Mayor O'Brien, adopted his The mayor has mdzth:f:o tohe m‘:nety lan yesterday 52 to 2. Action by the to be raised—some $20,000,000—is to %oardyot Esu};nnm Friday will mayxe it ' be used for unemployment relief. Jo-| a law effective July 1. | seph Clark Baldwin, 3d, lone Repub- | The plan sefs a registration fee on | lican in the Board of Alderman and autos registered in the city equal to the | one of the two to vote against the tax, State license fee, which, at 50 cents a | interpreted the mayor’s plea to mean hundred pounds, is already one of the | the city was paying $7,000,000 & month U. 3. ASKS BILLION LOAN T0 START BIG RECOVERY PROGRAM Woodin Addresses Invitation Mainly to Small Holders of Capital. FIGURE IS EXPECTED TO BE REACHED EASILY Refinancing of Fourth Liberty Bonds Studied, but No Immediate Decision Seems Likely. By the Associated Press. The Treasury called on the public to- day to lend the Government a billion dollars to launch the big industrial re- covery-public works program and mect current financing needs The invitation for funds was directed especially at small holders of capital whom Secretary Woodin wants in as “partners” of the Government. To favor these, he announced he was reserving the right to accept all subscriptions of $10,000 or less, even though they require more than the total of securities offered. Bids were called for on “500,000,000 or thereabouts” of five-year, 27 per cent ‘Treasury notes, whose proceeds will go largely to the public works spending. In addition, there was offered “$400,- 000,000 or thereabouts” of nine-month, % per cent certificates. Customarily issues are oversubscribed, and the bil- lion figure is expected to be reached with ease. Normal Rate on New Issues. Financing to be done with the new funds includes paying off $374,000,000 of maturing certificates and $104,000,000 interest on the public debt, due June 15. The issues will bring Roosevelt ad- ministration securities sales to $2,372,- 000,000, since in March the Treasury sold $800,000,000 worth and in April added $572,000,000. The banking up- heaval in March compelled an interest | Tate of 43 per cent on the nine-month | offerings of that month, but the new securities are down to normal interest rates, as were those of April. The new notes are not subject to re- demption before maturity date, June 15, 1938. Both issues are exempt from | any taxes but inheritance and estate ‘While this financial enterprise was launched Treasury men were on the possibility of refinanc- or all of the outstanding $6,- 00 worth of 4% fourth Liberty divide up maturity dates and reduce interest. No immediate decision, however, appeared in prospect. Gold Sale Plan Studied, Also under study was a plan to per- mit American gold producers to sell their metal abroad to get the higher prices avallable there through depreci- ation of the dollar. There is almost a '3.?" gold ounce gain in dollar value available now in London. On this, too, | later action was expected. President Roosevelt discussed yester- day with Senator Bone, Democrat, of Washington, plans for conversion of the Government’s outstanding fourth Lib- erty bonds into securities bearing lower interest. Refunding a part of the $8,201,000,000 long-term bonds now outstanding has | confronted the Government since the | first Liberty loans, bearing 3! per cent interest, became callable a year ago. | The first Liberties and converted 4 and | 4Y, per cent bonds amount to $1,933,- | 212,400, The fourth Liberty 4%; per cent bonds, however, cannot be called until next! April, as the Government must give six | months’ notice on an interest date, the | next falling on October 15. They could | have been called next October had the notice been given last April. Early Refunding Urged, ‘The fourth Liberties, the most popu- lar and the largest of all war-time bond issues, under ordinary circumstances | would mature in 1938, while the first Liberties do not mature until 1947. To | have the whole issue of fourth Liberties confront the Government for refunding at one time, even four years hence, might prove embarrassing, and financial interests have urged that part of them be_refunded before the due date. Plans were laid more than two years ago to refund part of the outstanding bonds, but were dropped when Con- gress authorized payment of $1,00 000,000 of the World War veterans'| bonuses. Then pusiness conditions went | into the doldrums and though money | rates were down it was felt any large issue of long-term bonds might further depress the market. Lately, however, conditions have seemed to improve for floating a siz- able issue of long-term securities. Financial experts say this would be | done for only two reasons: First, to save money through lower interest rates, and, second, to prevent the en- tire issue falling due at one time. Saving Is Uncertain. Just how much money could be; saved in a refunding issue is uncer- tain depending upon the size of the issue, the kind and length of its ma- turity. If it were a Purely investment bond, it was regarded likely that if con- ditions were as at present the Govern- ment would possibly have to pay as| much as 3% per cent for its money, thus saving % per cent interest. On the other hand if they were cur- rency bonds—that is, carrying the privilege of being deposited with the Treasury by national banks to back ad- ditional currency—it is figured the Gov- ernment might be able to float an issue ; at 314 per cent interest or at a saving of 1% per cent. | This would save approximately $11,- | 250,000 on each billion dollars’ worth issued. Whether the currency privilege will continue to exert its influence on bonds also is considered problematical. Under the present law any Govern- ment security bearing less than 3% per cent interest may be deposited by na- tional banks as backing for an equiva- lent amount of national bank currency. ‘There are ncw outstanding $3,000,000,- SHOULD THOSE GUYS HAVE KITS BETTER'N GROUP T0 COMPARE TOILET KIT PRICES Committee Accepts Challenge * of Be Vier in Senate Inquiry. By the Associated Press. A subcommittee of three to go fully into the price of toilet kits supplied reforestation camp occupants by Be- Vier & Co., Inc.,, of New York, and sim- ilar articles of equal quality, was set up today by the Senate Military Com- mittee to continue its inquiry into the sale of the kits. Several committee members said after this action they felt the whole controversy over the sale of the kits to Robert Fechner, director of the Civilian Conservation Corps, boiled down to a matter of price rather than a ques- tion of misconduct by any Govern- ment officials. Sheppard Heads Group. The committee in substance modified and accepted a challenge of R. B. BeVier to Army officials to prove the | claim that they could supply a com- | parable kit for 75 to 85 cents, although | Be Vier & Co. sold its kit for $1.40. After an examination of the list of stockholders of the company, Senator Carey, Republican of Wyoming, said it | | | Berlin Is Selected For Olympic Ganves, Ending Controversy By the Associated Press. VIENNA, June 7.—The Inter- national Olympic Committee de- cided unanimously today to hold the 1936 games in Berlin, settling definitely a controversy that has raged over Jewish discrimination in Germany. The committee expressed itself as satisfied that the contests will be carried out in Berlin in the Olympic spirit despite the bans placed on Jewish activity in all branches of German life Chancellor Hitler. ALLEYBILL PASSED AND SENT TO HOUSE | Senate Acts Without Debate on Measure Which Makes $500,000 Available. The Senate today passed without de- bate the Capper bill making available $500,000 of unexpended funds of the | United States Housing Corporation to | came, as President-elect, to discuss the begin a gradual improvement of in- habited alleys in the District of Co- did not show anything to indicate rumors he had heard that “persons close to the administration had an in- terest in the company.” | Be Vier advised the committee today | that he and his brother owned virtually all the stock, except for a small amount held by other relatives. lumbia. The bill was agreed to by unanimous consent and now goes to the House, | where it has not yet been acted on. The Senate also reached the bill to | | authorize merger of the Washington | Te‘;x“;‘,;gmggeglmm-ulfimfig; wg !and Georgetown Gas Light Compantes, Logan, Democrat, of Kentucky, and |but this measure was postponed when Carey to form the subcommittee. | Objection was raised to its considera- In his challenge for proof that the | tion. Army could buy kits at a lower price, | Be Vier said: “We ask that the Army be called on to produce all orders for the Civilian Conservation Corps on or before May 15 (the date the kits were ordered | from BeVier) and that they be tabu- lated to show the exact unit cost. It will show the cost the Army is entitled to claim. BeVier Suggests Committee. | “We will sell to the Government the | Kits in question at a price 10 per cent | lower than the same nationally ad-| vertised brands the Quartermaster Corps can furnish at the prices of May 15 _or before.” He suggested that a committee of three, including himself, a represent- ative of the Quartermaster Corps and | a member of or representative of the committee be set up to check all the | figures and look into the matter. “BeVier & Co. will be glad to pay all reasonable expenses,” he added. ¢ BeVier told the committee that -the statement presented yesterday by Louis McHenry Howe, secretary to Presifent Roosevelt, explained his part in tl purchase, “is true and accurate so far as he and I are concerned.” MERCURY, NEAR 90, | CONTINUES TO RISE| Chance of Thundershower Late Today Slight—Three Per- sons Prostrated. With three prostrations reported yes- terday and the mercury again climbing around the 90-degree mark at noon, Weather Bureau forecasters today held | out no promise of relief from the heat. The official thermometer had reached | yesterday’s maximum—87 degrees—at 11 am. today and was still climbing, after having registered a minimum of 69 at 5 am. The humidity was un- usually high for 80 high a temperature. ‘There is about 1 chance in 50 that a thundershower late today may bring | temporary relief, it was said at the | Weather Bureau. | None of yesterday’s prostrations was serious. The victims were Ernest Stephens, 1521 Pennsylvania avenue southeast; Kathryn Zanellotti, 5, of 400 | | i 000 of such bonds. SEEK PRINTS HERE Local Police Asked by Canadians for Galbraith Identification. CHATHAM, Ontario, June 7 (#).— Washington Police have been requested | block of K street, and Charles Keyes, a | colored fireman aboard the stcamer | District of Columbia. TWO DIE IN ICE BOX GREENVILLE, Tex., June 7 (#).— Playing in an ice box, Bettie Jean Lynch, 7, and her brother Ted, 3, were The alley improvement bill is the re- sult of lengthy conferences between of- ficials of the District government and the National Capital Park and Plan- ning Commission, in consultation with Senators King of Utah, Capper of Kan- sas, and Austin of Vermont. Provisions of Alley Bill. The bill provides that some agency, to be selected by the President, may purchase alley property, replat such areas to make them available for more desirable uses and then lease, sell or exchange such land or structures. The agency would have power to demolish, alter buildings or erect new structures. The agency also would have authority to aid in securing the redevelopment of alley areas by making loans to limited dividend corporations. In addition to the unexpended bal- ance of $500,000 made available, the agency could borrow from any govern- mental board authorized to make loans for such purposes. The pending in- dustrial recovery bill, for example, au- thorizes loans for the rebuilding of slum he areas. The aim of the bill is to have the areas redeveloped on a self-liquidat- ing basis. e q Gradual Elimination Sought. “Need for legislation of this kind has been recognized for many years, for these alleys constitute the principal slums of Washington,” the committee stated in reporting the bill. The report points out that as far back as 1914 alley-closing legislation was enacted, but the carrying out of it was delayed by the World War, and after the war it met with adverse court decisions, The use of unexpended balances of the housing corporation is based on the policy laid down by Congress in 1918 of caring for the alley population of the District after the primary purpose of the housing corporation’s work had been achieved. The report gives a long list of local organizations that have in- dorsed the alley-improvement bill. The bill contemplates the gradual elimina- | tion of alley dwellings by 1944. HONOR DUTCH SCIENTIST PARIS, June 7 (#).—The committee of the French Academy of Sciences, passing over the name of Dr. Albert Einstein has voted to present Pieter Zeeman, Dutch scientist, for election to the academy. Friends of Dr. Einstein expect that his name will be presented again soon for another seat. Prof. Zeeman, known for his work with spectral lines in a magnetic field and the propaga- tion of light in moving media, will re- place the late Sir Edwin Ray Lau- kester, British biologist. | GUIDE FOR READERS Amusements FRENCH DIPLOMAT - CONFERS ON DEBT Ambassador de la Boulaye Seeks Attitude of U. S. at White House. Ambassador de Laboulaye of France | conferred with President Roosevelt to- | day on the forthcoming June 15 war debt payments, ‘The Ambassador told newspaper men he discussed debts with the President, | but indicated it was in the nature of determining the attitude of this Gov- ernment rathcr than the making of a specific offer. He also said the forthcoming Eco- | nomic Conference and the Geneva disarmament parley were discussed. France has failed to make its De- cember 15 payment of $19,000,000, and }the President is understood to be in- | discussion about the _$40,000,000 stallment due next weck. No Offers Made. Meanwhile, the White House de- scribed the war debts situation as un- | changed, with no offers for revision | received and none made. The position of the administration is | the same as that announced by Presi- | dent Roosevelt last November when he in- | debt situation with Mr. Hoover. That is to say, the administration representing | a creditor nation is willing to listen to any proposals the debtor nations may want to make. The debtor nations unofficially have | informed the President through their representatives who came to Washing- ton in the course of the last two months, that they cannot pay. No further official communications have been received since except from the British government. The British, through their Ambassa- dor in Washington, Sir Ronald Lindsay, have been keeping in close touch with the State Department. There have been exchanges of views between the two governments, but, so far, there has | rot been received in Washington any formal communications as to what the British government will offer—if any- thing at zll. The last official communication from London was received last Winter, when the British paid their December in- stallment. In the accompanying note | the British government stated definitely that it would not be in a position to meet its June 15 obligations. Due in Eight Days. One week from tomorrow the next instaliment, totaling more than $140,- 000,000, will be due. The British cab- inet will meet Priday to discuss the situation and there have been intima- tions in London that some new pro- | houncement was expected from Wash- | ington. This, however, was officially | discounted here. There have been conversations re- garding debts during the month of May between Premier Ramsay MacDonald | and President Roosevelt. MacDonald half promised that the British would make a real effort to meet at least (Continued on Page 2, Column 7.) MANY ARE INJURED IN ONTARIO STORM Children at Two Schools Buried in ‘Wreckage—Fireman Killed by Fall. By the Assoctated Press. TORONTO, Ontario, June 7.—On- tario was lashed by a violent rain, hail and electrical storm today which dam- | aged two school buildings, injuring| numerous pupils. In Toronto a fireman was killed and | three others were seriously injured | while fighting a fire at Our Lady of Lourdes Roman Catholic _Church. Lightning started the fire. The fire- men fell 75 feet from a ladder. The storm blew in the rear end of Belle School, three miles west of Mil- ton. Several children were buried be- neath the wreckage of the frame build- | ing, part of the roof of which col-,| lapsed. They were rescued by the | teacher and neighboring farmers. Many of them were injured. At Winona about 20 children were | buried under bricks, laths and plaster | when a chimney on a public schcol building crashed through the roof. Rev. D. B. McLennan, a clergyman living | nearby, led rescuers. Gerald Wilbur, 6 | years old, the most seriously injured, | was taken to a hospital. Windows in the Collegiate Intstitute B Pebie setrmed van Somirs | sisting upon that as a basis for any| ne & s [ z e AWAKES, FINDS BABY DEAD VAN SHERINGENS SET UP COMPANIES T0 EVADE TAXATION ICreated Corporations for Stock Transfers, Pecora Grilling Develops. |RAIL EMPIRE LAUNCHED ON MILLION “SHOESTRING” 1Cleveland Operator Readily De- scribes Beginning of Advent Into Transportation. By the Associated Press. Setting up of corporations for stock transfers to remove income tax liability | was brought out today in testimony by | O. P. Van Sweringen in the Senate | investigation of the J. P. Morgan & Co. role in erection of the widespreading Van Sweringen railroad command. Assenting readily to questions where before he had repeatedly pleaded faulty memory, the Cleveland operator first revealed that $1,000,000 cash was the total he and his brother, M. J., and associates put up in their 1916 advent into_transportation. “You may say that is starting on a shoestring,” he drawled, to the interest of another crowd on hand. “I agree that is so, but we made what he have today out of that shoestring.” His brother listening closely nearby, as was J. P. Morgan, he thereupon made quick reply to questions by Ferdinand Pecora, committee counsel. These developed that a “General Secur- ities Corporation” and later a “Geneva Securities Corporation” were specially set up to effect transfers of stock to holding companies in a way “to avail of income tax exemption provided by Congress in connection with corporate reorganization.” “The Economic Way.” “We have shown for the first time the advaniage in effecting a transfer of stock through the medium of a thirc corporation,” Pecora told reporters. “By this means the payment of taxes on profits is avoided. It shows a ness in the tax laws that Congress may want to strengthen.” Van Sweringen testified that a huge block of Chesapeake & Ohio stock was taken on the books of one of the organ- izations of his interests at over $104,- 000,000, or $175.75 & share, Having a direct sale in mind, Pecors asked “If you had sold, there would have been a big profit?” “That’s like saying if the dog hadn't Tunning he would have caught | “Wasn't the purpose of the Geneva Securities Corporation to evade—by subsequently. “It seemed the economic way of handling it,” the operater replied. Finally, the witness pointed out that he had already said the transaction was so carried out to take advantage of income tax exemption. m“We difld it according to law,” he put mildly. “Oh, it was legal enough,” Pecora rejoined. Wider Power Sought. This morning the investigators had agreed unanimously on terms of a resolution to be presented to the Sen- ate later in the day seeking wider power to go into income tax returns of Morgan partners and their stock trans- actions pertinent thereto. ~Chairman Fletcher predicted it would be ap- proved by the Senate without delay. “Are you satisfled with the commit- tee’s action?” Pecora was asked. “I think s0.” he smiled. The matter-of-fact answer by Van Sweringen as to the amount of cash put up to get a start in railroading attracted the audience to closer at- tention than he had been given since he first took the stand. The noted railroad operator listened more intently to Pecora’s questions to- day. He pointed a ffnger at the counsel as he replied. Opening Delayed. Opening of the hearing was delayed an hour by the committee session to go into the income-tax matter. The witnesses gave little notice on (Continued on Page 4, Column 4.) Ry UNIQUE THEATER OPENS Motion Picture Shown for Drivers | in Automobiles. ‘| CAMDEN, N. J, June 7 (#).—The| first “drive-in” motion picture theater had its premiere performance on a 6}2- acre plot in Camden’s outskirts last night. %bauz 200 automobiles drove through the open-air box office and took places in the eight inclined rows arranged in a semi-circle erc about the 30 by 40- feot screen. The rows are 49 feet each and 400 automobiles can be accommodated. The theater's promoters believe the auto- movie will eliminate one of motion pic- ture houses’ most serious disadvantages —the parking problem. e | the DINUBA, Calif, June 7 (#)—Mrs. Nency Vates Wilson, 36, awoke and | found her 4-month-old baby dJead be- | side her. Hysterical, she told police she | COMPROMISE SEEN ON VETERANS' BILL AFTER CONFERENCE Crosser Hints at Agreement When He Leaves With House Parley. HINES AND DOUGLAS TAKE PART IN TALKS President Contends Principle Is Involved in Fight to Reduce Allowances. BY G. GOULD LINCOLN. A compromise on the Connally amendment to the independent offices bill increasing veterans' compensation was indicated this afternoon by Chair- man Crosser of the House Democratic Steering Committee. Crosser, accompanied by half a dozen Democratic members, was in con= ference at the White House with Presi- dent Roosevelt and with Brig. Gen. Frank T. Hines, director of the Veter- ans’ Administration, and Lewis Douglas, director of the budget. Crosser’s suggestion that a compro- mise may be in sight was made as hc left the White House. The House mem- bers were in conference with the Presi- dent and with his assistants for nearly three hours. The whole veterans’ com- pensation problem was canvassed. Members of Committee. Besides Crosser, other members of the committee in conference with the President today were Representatives Pou, North Carolima; Browning, nessee; Hastings, Oklahoma; Lozier, Missouri; Patman, Texas, and Lee, Cali- fornia. Crosser, after he returned to the Capitol, said the special committee would return to the White House this afternoon for further discussion as soon as it had been notified that the President’s advisers, Budget Director e s e proposition Crosser sald that every side of the of the Connally amendment, the Black amendment and various to modify the lawful means—this tax?” Pecora pressed | den fighting for a principle. This principle is that the veterans actually disabled because of their war service should be compensated and that (Continued on Page 2, Column 1.) ROOSEVELT SEEKS BANK BILL ACCORD President Confers With Leaders to Iron Out Differences cn Glass Measure. By the Associated Press. President Roosevelt called in con- gressional banking leaders today in an- other effort to iron out differences on banking reform legislation. Conferees of the Senate and House have been seeking vainly for a week to find an understanding on insurance of deposits in the Glass-Steagall bill. An entirely new plan is now reported under consideration. The administration has refused to approve the Senate proposal allowing u;urae:h'e insurance of deposits up to $2,500. Senator Glass, Democrat of Virginia, Representative Steagall, Democrat, of Alabama, Secretary Woodin and Con- troller of the Currency O’Conner, were called to the White House to discuss the new proposition. Meanwhile, conferees on the Glass- Steagall bill suspended sessions indefi- nitely after failing to agree on the in- surance-of-deposits provision. ‘This provision, embodied in the Van- denberg amendment to the Senate bill, is opposed by the adminisiration, but conferees have been trying to work out a compromise. Glass, who has advocated the bill for nearly two years, conceded it would die in conference if an agreement was not reached soon. The further obstacle of a filibuster faces the measure if the Vandenberg amendment is entirely eliminated in conference. Senator Long, Democrat, of Louis- iana, is ready to talk at great length in the Senate against any insurance provision restricting State bank entry into the fund. ASK DATA ON U. S. LOAN CANTON, China, June 7 (#)—The slapped the child in the night because it Southwest Chinese Political Council to- cried. | day declared it is not satisfied with the Mrs. Wilson was charged mith man- |recently announced American wheat and sleughter in Justice Court. A coroner’s | cotton loan and is asking the National jury found the child died from a cere- | goverment in Nanking for an explana- bral hemorrhage. | tion. U. S. FLEET TO GET NEW CHIEF IN ANNUAL SHIFTS SATURDAY Vice Admiral Sellers to Become Commander in Transfer of Flags in San Pedro Harbor. By the Assoctated Press. |rank of full admiral. Admiral Leigh SAN PEDRO, Calif., June 7.—Salute | will resume his status of rear admiral. Funs wil bark 15 times Saturday| Other transfers of fags wil be: Rear Admiral Joseph M. Reeves to when the annual shifts in Navy posts, | commander of the Battleship Squadron, including that of commander-in-chief at Guelph were shattered and five stu- | the post now held by Sellers. of the United States Fleet, takes place Rear Admiral Thomas J. Senn to in San Harbor. commander of the Base Force. to check their files for finger-print Smothered to death yesterday when the The new commander will Rear highest in the country. to the unemployed, and then he said, dents were injured by flying glass. Aldermen All drivers not registered in the city, including the thousands of daily com- muters from Westchester, Nassau and other counties in the metropolitan area ‘will be taxed 25 cents for enterm Man- hattan by way of East River at yesterday's Board meeting: » “If he says that the V. { is spending he lies. And if he doesn’t know that or | he lies he must be very dense indeed.” | pending word from records of Leo Galbraith, who was ar- rested here after a spectacular chase the countryside. ~Local au- 000,000 a month on the unemployed | thorities declined to reveal the charge |in the fields last night they missed the on Galbraith was apprehended ashington, Wi lid of the box fell shut. When their nts, Mr. and Mrs. George Lynch, r ed from their work children. A search revealed their bodies in the ice box, Residentauo! Guelph said the storm | seemed to of hurricane proportions. the city was veiled in darkness. London there also were reports particularly to trees. Admiral David Foote Sellers, relieving Admiral Richard Henry Leigh, who will Board at Wi ; be the Pe: His flagship 1= vanis, and he will assume the m‘ Rea. up by the roots and | become a member of the Navy General | man