Evening Star Newspaper, June 25, 1933, Page 17

GRAND JURY GET] [ b e PARK SAVINGS BANK CASES TOMORROW Indictment to Be Sought of Former U. S. Treasury 0f- ficial and Others. MOUNT VERNON BANK . SHORTAGE IS REVEALED $tunz Believed Informed of Bank Examiners' Visits and Enabled to Cover Up. Evidence in support of criminal charges arising out of the failure of the Park Savings Bank, which has revealed & shortage of at least $1,700,000, will be laid before the District grand jury to- morrow along recommendations for the indictment of four men. United States Attorney Leo A. Rover, who will handle the entire case, has in- dicated that he expects a report from the grand jury Wednesday, the last day of its term. Mr. Rover revealed yesterday that he already has directed the presentation to the grand jurors of evidence bearing upon an alleged shortage of $5,626 in the Mount Vernon Savings Bank. This shortage, according to evidence gath- ered by the Department of Justice, re- sulted from two instances of larceny and ene of check kiting. The grand jurors are also expected to report on these charges Wednesday. Former Official Involved. \ - Outstanding among those againist whom indictments will be sought in eonnection with the collapse of the Park Savings Bank is a former Treasury De- partment official who resigned in May, shortly after agents of the Justice De- partment’s Bureau of Investigation had begun their probe into the bank’s finan- cial status. It is believed the Government will attempt to show that Robert Stunz, former vice dent of the bank, who killed himself last March, was regu- larlf informed by some one when Fed- eral bank examiners were about to wvisit his institution, This information, it is sald, enabled Stunz successfully conceal & shortage in the period of several years. In return for the information, it is al- leged he accorded his informant irreg- m. Rover uml:hul-t'd howe: that - Mr. 5 ver, the bulk of the $1700,000 shortage at the bank resulted from bad loans and not from any criminal act. Connected With Embassy. It has been reported that the Gov- ernment might seek fo prosecute a man formerly connected with one of the lo- cal embassies, on the theory that he furnished Stunz with liquor and re- ceived in return special favors at the bank. This man, however, is under- stood to have left the country, and it is not believed an indictment will be returned against him. The other three persons against whom indictments will be sought are said to include a former employe at the bank and two customers of the institution. ‘The nature of their connection with the shortage has not been disclosed, but it is believed the Go;m: 'kl-l} l}- tempt to prove they y knowl- edge of alleged irregularities on the part of Stunz. The Department of Justice is said to have discovered that he credited the accounts of some de- positors with sums which were never deposited, and that promissory notes protecting loans were canceled, al- though the loans were not paid. The investigators believe that other per- sons connected with the bank may have had knowledge of these transac- tions. Probe Not Completed. In announcing yesterday that he would present the case Monday, Mr. Rover said he has not completed his investigation and that at a later d.w! he may seek an indictments,against a fifth individual who was formerly con- nected with the bank. Witnesses to be called tomorrow will include A. F. Jorss, president of the bank; Mrs. Emily Downey, head bookkeeper, and E. C. Sauer, an accountant of the Bu- reau of Investigation. After Stunz had taken his own life a note in his handwriting exonerating other employes of the bank was found. It is not known what use, if any, will be made of this note. The evidence relating to the short-| age at the Mount Vernon Savings Bank | was presented to the grand jury Thurs- | day by Assistant United States Attor-| ney Charles Murray. It is expected | that indictments will be sought against two or three employes of this bank and one customer. The investigation, according to Mur- ray, revealed three separate shortages. The one invelving the check kiting amounted to $2,345, while the other two were fixed at $2,181.25 and $1,100. Check Kiting Test. Murray said the check kiting probe would serve as a test case to determine whether other similar transactions can bew lm:rusml.ly1 prosecuted. He de- ribed it as follows: “A depositor at the bank had a friend who was employed there. The depositor would persuade a third party to write a check on aother bank although he knew | the third party did not have funds on deposit to cover the check. The depositor would cash the check through his friend at the bank, who is also said to have known that there were not sufficient funds on deposit in the other bank to cover it. On the following day, how- ever, the depositor would cash a check drawn under similar circumstances and use the money derived from the second check to build up a balance sufficient | to cover the first one. It is alleged this procedure was followed until the de-| positor had received some $2,000 to; which he was not entitled The failure of the Commercial Na- tional Bank, through which the Mount Vernon Bank cleared, led to the dis- covery of the alleged kiting. Ordinarily the clearing house sent the checks to the Commercial Bank before they went 10 the bank on which they were drawn When the Commercial Bank closed, Dowever, the clearing house sent one of the checks dirget)y to the home bank. The depczdor 1s said to have covered the checks during the time they were going through the Commercial Bank, and when this delay was eliminated the alleged irregularity was discovered. At Issue With Committee. Frank J. Sobotka, who is chairman of one of the three committess working | = on the question of trying to free de- positors’ funds from the Park Savings Bank, last night issued a statement tak- ing sharp issue with the committee of depositors headed by Joseph W. Thomp- son, over the question of a receivership. Sobotka is strongly in favor of a re- MARVELLA GOSCH, | Who was seriously injured when pin- ned against the rear of a “snowball’ truck by a two-truck District National Guard ~convoy. A 10-year-old boy standing beside her was crushed to death. GUARDSMEN HELD ' INTRUCK TRAGEDY Jury Blames Pair in Death of Boy Pinned Against “Snow Ball” Vehicle. Drivers of two District National Guard trucks, which pinned a boy and a girl the rear of a “snow ball” truck, crushing the former to death and seriously injuring the latter, were held for grand jury action yesterday, fol- lowing a coroner’s inquest. After a three-hour hearing of testi- mony, the jury, presided aver by Acting Coroner A. Magruder MacDonald and Deputy Coroner Christopher J. Murphy, decided both Sidney R. Dulin and Wil- liam T. Wells should be held account- able for the death of 10-year-old Joseph Borsellino, Meanwhile, Marvella Gosch, 2lso 10, the other victim of the accident, was reported in a serious con- dition in Providence Hospital. Trucks Chained Together. The mishap occurred Friday, the Na- tional Guard vehicles, lashed together with a chain, striking the rear of the “snow ball” truck, which was parked near the intersection of Third street and Maine avenue southwest. The children, who were standing near the tail gate of the “snow ball” ve- hicle, were pinned against it by the front bumper of the lead truck, driven by Dulin, Both were taken to Provi- dence, where the boy was pronounced dead a few minutes later. Dr. Murphy, who performed an autopsy, said death was due to a macerated liver and cther internal injuries. Witnesses testified the National Guard trucks were making a left turn into Maine avenue from Third street at the time of the mishap. Jury Visits the Scene. ‘The front and rear bumpers of the two vehicles were chained together so tightly, it was said, that they could not negotiate the turn, even though they ‘were m very slowly. Prior to the inquest, the jury visited the scene of the accident and saw the trucks, still 1 together in the same manner, duplicate the turn. ‘The boy lived at 525 Virginia avenue southeast, while the girl makes her home in a house-automobile now parked near the scene of the mishap. Dulin, who is 28, resides at 1609 Massachu- setts avenue southeast and Wells, who is 33, at 809 Anacostia road scoutheast. AIRPLANE DEVICES T0 BE DEMONSTRATED Automatic Parachute and Mail Pick Up to Draw Officials to Airport. Demonstrations of automatic para- chutes for airplane passengers, who may be dumped into space by the pilot in case of emergency, and of an air- mail pick-up device, which is expected to be offered to the Post Office Depart- ment as an economy measure, will be held before Federal aviation officials Tuesday afternoon at Washington- Hoover Airport. ‘The airmail pick-up device will be demonstrated at 2:30 pm, and the automatic parachute at 4:30 pm. Sec- retary of the Navy Swanson is ex- pected to head a list of Government officials, which will include Post Office Department airmail executives, officials of the Department of Commerce Aero- nautics Branch and representatives of the Army Air Corps and Navy Bureau of Aeronautics. Godfrey L. Cabot of Boston and A. W. Card will demonstrate their air- mail pick-up outfit, with Roger Wolfe Kahn, social registerite and aviation enthusiast, flying the pick-up plane. Kahn already has made a number of practice pickups at the Hoover side of the airport in preparation for the Tues- day demonstrations. The automatic parachute consists of a parachute built into the passenger seat, into which the passenger is fas- tened by the ordinary safety belt. In case of emergency the seat containing the passenger may be swung out of the airplane cabin by the pilot and dropped. An automatic rip-cord ar- rangement opens the parachute, and the passenger, still seated in his chair, descends to the ground. ‘“Spud” Man- ning. noted exhibition jumper, will be the “passenger” in the demonstration. Chicago Fair Lecture Topic. RIXEY STATION, Va, June 24 (Special).—Motion pictures and an il- lustrated lecture on the Century of Progress Exposition in Chicago will be given by the Guild of St. Mary's Epis- copal Church in the parish hall Mon- day evening. The lecture will be given by Miss Elizabeth Haney of Washing- ton, D. C., with Miss Evelyn Cannon in charge of the Committee on Arrange- ments. The proceeds are for the build- ing funds. mit! ly declined to be a mem- ber of the Sobotka committes, neverthe- less the invitation to discus Park Sa ings Bank matters co-operatively “will | still be tendered in good faith.” “I cannot conceive,” he said, “how any committce can justify a position of declining co-operative discussion with ceivership as the best next step, while the Depositors Committee is opposed to receivership pending development of its own plan, as yet undisclosed. said that despite the fact Sgpt & member of the Thompson com- our committee which is representative he Sundiny St WASHINGTON, SEVENTH STREET BANKISINGLUDED INMERGER GROUP Becomes Eishth Institution to Join Hamilton Reor- ganization. STRUCTURE ALREADY SET| Plans Also Going Forward for Re- opening Franklin on or About August 1. ‘The Hamilton National Bank, which yesterday gained the Seventh Street Savings Bank, now comprises 8 insti- tutions holding 70 per cent of the total unsecured deposts frozen in the 13 un- licensed banks of the District of Co- lumbia. ‘This figure was reached by officials of the Treasury and the Hamilton Na- tional Bank yesterday after computa- tions of the set-up of the merger. ‘The Hamilton now will have total deposits of about $11,000,000, which represent half of the tota] deposits in the merger’s eight member banks. This $11.000,000 represents 50 cents on the dollar of the depositors’ accounts in the merger, and will be made available when the new bank opens for business, now f&flmlted at not later than Au- gust 1. Assets Around $14,000,0 ‘Total assets of the Hamilton now stand at around $14,000,000, it was said. ‘The capital structure is rapidly near- ing its goal of $1,250,000. As soon as sufficient cash is in hand from the sub- scriptions to this new stock at $25 a share, the organizers cf the bank will g0 to the Treasury, probably early this week, to apply for a charter. One of the problems on which con- servators and Hamilton Bank officials will work early this week will be the nature of the ccntract to be drawn up between the conservator and the deposi- tor, to provide for freeing half of the depcsitor's money in the new bank. Edwin C. Graham, president of the proposed merger, was cut of the city over the week end, but planned to re- turn to dive into the mass of work required in the setting up of the new institution. Many Problems Remain. Many problems of organization present themselves, such as by-laws, branches of the new merger, personnel, such as officers of the bank, and the board of directors. The names of the men who will direct the bank must be ready for submission to the Treasury when the charter is requested, although they will not be officially placed in office until the stockhclders elect the directors, and the directors name the officers of the new Hamilton. The Hamilton will apply for mem- bership in the Federal Reserve System, through the Federal Reserve Bank at Richmond. As the campaign to sell the final amounts of stock was pushed forward, it was announced last night by Capt. Chester Wells of the General Subscrip- tion Committee that the Sanitary Gro- cery Co., which had subscribed to $12,500 worth of stock early in the cam- paign, yesterday subscribed to $5,000 more. This second subscription was made, Capt. Wells announced, to help the iton close up its subscription campaign more promptly, that the new bank may open, releasing deposits whicks are much needed in the business life of the Capital. Capt. Wells feels that when the more than $11,000,000 in deposits are made available they will prove a definite stimulus to trade throughout the city, helping & return to prosperity. Announces Joining Merger. Announcement that the Seventh Street Savings Bank had joined the merger was made yesterday by John D. Howard, president and conservator of the bank. The board of directors of the bank approved the proposal to join the Hamilton merger, and authorized Mr. }zuwn.rd to proceed to take the necesary steps. ‘The Seventh Street Savings Bank will operate as a branch of the Hamilton Bank, it was sald in official quarters last night. Although it is the latest bank to join the merger, it will open its doors at the same time that all other members of the merger open. ‘The Seventh Street institution has deposits of $1,166,000. The new mem- ber bank will sell a quota of about $50,000 worth of Hamilton National Bank Co. stock, at the stated price of $25 a share, of which $20 is par value and $5 for surplus. Addition of the Seventh Street Bank will not necessitate an increase in the capital structure of the Hamilton merger, above the $1,250,000, it was explained officially, as the figure of $1,250.000 had been fixed as the struc- ture for a merger of 8 out of the 13 unlicensed banks in the District. ‘When the Hamilton opens it will re- lease 50 cents on the dollar to the de- positors of the eight member banks, as follows: Federal-American National Bank & Trust C District National Bagk, Potomac Savings Bank, Wash- ington Savings Bank, Northeast Sa ings Bank, Woodridge-Langdon & Com- mercial Bank, United States Savings Bank and Seventh Street Savings Bank. The first unlicensed bank to reopen its doors was the Chevy Chase Savings Bank which was sold to Riggs National Bank, ard now is operating as a branch of Riges. Working on Franklin. Following the opening of the Hamil- ton merger, it is hoped that the Frank- lin National Bank can reopen as a re organized institution, alone, and outside of the merger. . Officials of the Franklin Bank were in extended conference late yesterday with officials of the Treasury Depart- ment on plans for reopening, and will resume their conference on Monday morning. Although the required agree- ments from depositors representing more | than three-fourths of the total deposits in the Franklin Bank have been ob- tained, there remain many technical problems, to be ironed out in the devel- opment of a plan to reopen the bank. The Treasury Department has approved in principle the reopening of the Prank. Jin Bank, and now is working in co- operation with the bank officials on a plan, which it is hoped can be com- pleted soon. The question of personnel to operate the reorganized Franklin Bank has not yet been settled. N. E. A. OFFICIAL TO TALK Special Dispatch to The Star. | | | Jobless Have Been Assem- D. C, bled at Rate of 8,440 Men Per Day. BY NELSON M. SHEPARD. EHIND the scenes of the far-- flung Civillan Conservation Corps—America’s greatest peace- time mobilization of man power —the Army has tested with amazing success its theoretical pre- paredness for war. - By efforts closely approaching war conditions, the general staff is applying to the whole tremendous task of getting 300,000 forest recruits into work camps by July 1, much of its national defense machinery for mobilizing the industries, transportation systems and man power of the Nation. With a secrecy that has left the public practically unaware of | the tense drama behind stage, the Army | is actually putting into operation for | the first time on a large scale plans | worked out on paper and improved | upon by the lessons of the World War. | How well these theories of prepared- | ness have succeeded in working out, the | statistics alone of.the C. C. C. offer | astonishing evidence. | | Approach World War Speed. Within a six-week period, at a rate of 8,440 men a day, the Army will have assembled this huge force of foresters | in widely scattered camps, at a speed approached only during the height of the World War when full machinery of the draft act was operating at its best. Never before in American history, at the outbreak of war, has so large a civilian force been mobolized so speedily, as the Army is doing now in conditioning, clothing, feeding and moving by rail and truck, this peace-time force of 300,000 men. In most respects, save for drafting men into service and supplying arms and munitions, the Army has gone about this task exactly as it had plan- ned to do in organizing for hostilities. More amazing than supplying the wants of the forestry army is the man- ner and the numbers by which men have been transported by rail across | the continent and into every conceiv- able backwoods district of the United States. A trail of 176 fast moving pas- senger trains bearing 53,210 recruits al- ready has streaked its way in long hauls to Far Western posts and camps. 241,685 Men Transported. | From May 7, when the first movement of forest recruits started from Phila- delphia, the Rail Transportation Divi- sion of the Army had carried in special trains a total of 241,685 men to Army posts up to midnight of June 15. Of that number, 162,980 recruits had been moved from posts to distant work camps, making a total movement by rail of 404,665 men in a period of five weeks. ‘This is pretty close to 15 Army divi- sions of full war strength. But Army officials will tell you that it is only a glimpse into the gigantic picture of the transportation service. Contrasted with the magnitude of the passenger move- ment, are numerous trainloads of food, | clothing and equipment. As a mere| example of one commodity, 3,600 trucks and automobiles have been shipped from factories into the fleld. | Like the 52,210 men moved from the | East to the West Coast by the middle of last week, a great proportion of these | enormous cargoes has been shipped by | fast freight across the continent. | ‘War-time plans for the mobilization | SUNDAY MORNING, JUNE 25, 1933. . |Army’s Theoretical Preparedness Plan Is Successful In Recruiting and Transporting 300,000 Forest Army Capt. Robert E. Shannon, assistant to Brig. Gen. A. E. Williams, chief of the Transportation Division of the War Department, key man of the transportation of thousands of forestry recruits to concentration camps. of rail transportation have been carried out to the letter in this overland move- ment and every train movement has clicked just as planned on paper. Execu- tives of the American Railway Assocla tion, stationed in the Quartermaster General's Department iu Washington and in each of the nine Corps Areas, saw to it that the railroads did the job according to specifications. There has not been a single slip-up, the whole demonstration being a triumph to American railroading. Gave Army Free Hand. By the authority vested in him as commander-in-chief, President Roose- velt gave the Army a free hand and {full war-time powers to execute its own plans for getting these thousands of unemployed men between the ages of 18 and 25 into forest work camps as speed- ily as possible. In truth, the President has set a goal of 301,575 men in ap- proximately 1,500 camps by July 1. Up to June 19 a total of 240,514 re- cruits were assembled in the nine corps areas, of which 74,300 still are in con- ditioning camps at Army posts. A total of 896 camps actually had been estab- lished and in operation up to that date. That the complete program will be | carried out to the letter by July 1 is | 5o certain that no War Department official gives it another thought. “The | job must be done, and it will be done,” |they say, with a confidence utterly de- vold of boasting. For the Army it is just a day's job—but what a job! That it is being accomplished with so little dislocation of its usual routine is a tribute to the Army’s efficiency and to its peace-time usefulness. No civil- jan force in this country could have tackled this mobilization and accom- plished it with such rapidity or with so little fuss and confusion. Confronted with the necessity of go- ing into the open market to purchase huge emergency supplies of every na- ture. Maj. Gen. John L. de Witt, the Quartermaster General, is lccompllsmn‘ this job through his existing personnel force, without calling into service any | of the Reserve Quartermasters. Wher- ever it is practicable to do so, he is operating on war plans for the procure- ment of food, clothing and camp equip- | ment. 1,500 Reserves in Field. Only in connection with disciplining and conditioning of recruits has it been | necessary for the Army to call upon its | | Reserve officers. _Approximately 1,500 | Reserves are in the fleld. Out of the total of 5,173 officers now engaged in C. C. C. activities, nearly 3,000 are regular line and medical officers and chaplains from the Navy and Marine , the Army has borrowed 500 others. ‘The mobilization plans of the Army, a highly decentralized preparation for war, suited to varying conditions in each corps area, and under the direct control of the high command in Wash- ington, are based on the enrollment, training and equipment of 4,000,000 ymen. They are not an inflexible group (of plans, but are being constantly changed and improved upon. They can | be utilized wholly or in part as the task imposed by the Civilian Conserva- tion Corps bears witness. When the mobilization of this for- estry Army was undertaken, definite participation by various Government departments had been agreed upon. The Labor Department was to select the men. The Interior Department was to select the camp sites. The Forestry Bureau was to supervise the work of the men, once they were in the forest camps. The Army was to do the rest. ‘Thus_the great bulk of the burden was to_fall upon the War Department. With the exception of Newton D. Baker, who came from a law office to guide the greatest military mobilization America has ever undertaken, no other Secretary of War has ever been con- fronted with such a complicated task to be lecomgxhed within six weeks’ time as has ge H. Dern. No force of comparable size was assembled under canvas during even the first month of the Civil War and not until several months after Congress declared a state of war in 1917. A man of few words and few confidences, Secretary Dern has displayed a grasp of the situation which has won for him the confidence and respect of the whole Army. Burden on Two Departments. ‘The two major operations in connec- tion with the C. C. C. have fallen upon the Adjutant General’s Department and the Quartermaster Corps, and through them, upon the corps area command- ers. The one department has had to furnish all the officer and enlisted per- sonnel, establish the men in posts and forest camps, guard their healtr and subject them to necessary discipline. The Quartermaster Corps has had to get them there, feed, shelter and supply their wants. Under the national defense act the Assistant Secretary of War, Harry H. Woodring, is charged with “supervision of the procurement of all military sup- plies and other business of the War Department pertaining thereto and the assurance of adequate provision for the mobilization of material and industrial | organizations essential to war - time needs.” As a part of these plans, the Quarter- | master and Ordnance Departments have surveyed the industrial, business and munition plans of the country and have worked out with industry gener- ally a system of co-operation by which the needs of the Army can be supplied on the shortest possible notice. In like measure the plans apply to the rail and water transportation systems. By the slashing of governmental red tape and the waiving of many peace- time practices, the ter Corps is being given practically a free rein in ordering all supplies needed for the Conservation Corps. Wherever possible supplies have been taken from surplus World War stocks. When these articles are exhausted Gen. De Witt turns to his war plans as as it is advisable to do. He takes out his list of facto- ries—jumpers, for instance—locates the (Continued on Page 2, Column 1) CITY HEADS TOFLE PUBLIC WORK LIST Three Schools and Gallinger Addition Are Expected to Be Suggested. The District Commissioners will file with the administrators of the recovery act, probably Tuesday, a list of local public works which they hope may be financed out of grants from the Federal public works fund of $3,300,000,000. District officials said yesterday it was likely the list of projects would include proposals already recommended by the Office of Public. Buildings and Public Parks, since these are District projects, although they normally would be in-| cluded in the independent offices appro- | priation. | While the Commissioners will not make public the list until they have | completed their study of proposals and | submitted the document to the Federal | administration, it is understood four | projects definitely exist and for which | partial appropriations already have been | made in the 1934 District supply bill. They are: | ‘The Woodrow Wilson High School, in | the Reno section; the Anacostia Junior High School, the Jefferson Junior High | Sehool and a contagious ward building at Gallinger Hospital. These would be under that section of the recovery bill which provides that | grants up to 30 per cent of the cost of | the projects may be made out of the | Federal fund, with the remainder com- | ing from local finances. | ‘While a number of other projects may be added to this group, it is understood most of the remainder of the long ten- tative list includes projects for which the District now lacks any appropriation and therefore would depend upon Fed- eral grants for the full costs. Items on the list being studied by the Commissioners have a total cost of ap- Proximnely $20,000,000, according to | information given out at the District Building yesterday. 1 | CHILD HEALTH CAMP REGISTERS NEARLY 50 Project Sponsored by Tuberculosis Association for Children Ex- posed to Infection. Nearly 50 boys and girls between the | age of 4 and 10 years were registere at the opening yesterday of the Chil dren’s Health Camp, Fourteenth and Upshur streets. camp is operated by the Tubercu- losis Association for children who have tuberculous infection and are not al- lowed to attend public schools. Miss Olive Ward is superintendent of the camp, which is maintained on part of the funds raised through the sale of Christmas seals. is the camp's twenty-fifth season. | _ FLORIS, Va., June 24.—Dr. Ernest R. Bryant, assistant director of publica- | tion of the National Education Asso- clation of Washington, will address the Floris Community League at a m“u:o{ July 4, at 8 pm., in the Floris Sch of the leading elements in the bank’s community and is working voluntarily with the sole aim of getting every pos- sible penny back to each depositor.” Auditorium. Following the address Mrs. Maurice K. Stroud will have charge of a pro- gram of entertainment, Many of the children enrolled at the camp come from homes where active cases of tuberculosis are known to be or have existed and where the proper conditions to combat this disease can- not be provided. At the camp they are given proper medical attention, a balanced diet, en- forced rest periods and plenty of fresh | recorded on out-of-town informaticn. | tion last Summer, when he was assist- FUGITIVE SQUAD PICKS UP BOY 45 MINUTES AFTER GETTING TIP |Four Other Men Arrested Here by Police on Request of Authorities of Other Cities. ‘The police fugitive squad yesterday climaxed a week of unusual activity, with one of the quickest “pick-ups” ever At 5 pm. a telegram was received at headquarters describing Howard H. Adams, 17, of Chapman, Ala., missing from that city and believed to have come here. Within 45 minutes De- tective Sergt. A. D. Mansfleld of the fugitive squad and Detective Sergt. Jerry Flaherty, with only the meager description supplied in the message to aid them, had located the boy and brought him to headquarters to await return to his home. The officers said the boy had run away a short time ago and was being sought by his father. Spokane Man Arrested. Earlier in the week Detective Sergts. C. H. Schreyer, R. J. Cox and Mans- field, who comprise the fugitive force here, had arrested Golden L. Welberger, 39, who is wanted in Spokane, Wash., for forgery, grand larceny and family desertion. The detectives had been searching for him since they received a circular from Lsamne six months ago and also ob- in in Welberger’s effects after he fled from Spokane was belleved to have been itaken in this city. | showed & woman standing beside a {car in front of the office of a local | newspaper and detectives in the West |for that reason believed the man had | connections here. After his arrest here, |it was learned Welberger had estab- lished himself as a successful salesman for a local concern. Three Others' Taken. ‘Three other arrests also were credited to the fugitive squad during the week. They took into custody Karl M. Keller, 38, of Amityville, N. Y., wanted in con- nection with a grand larceny case there involving $5,000; Walter Goodman, 27, coiored, sought on a murder charge in Knoxville, Tenn., and Jasper. Reddick, (19, colored, wanted for murder in Greenville, N. C. In the first quarter of this year the |ing only 197 assignments. A number arrests stood about 90 per cent. In succeeding months the squad has com- pleted 110 cases, still maintaining its high average. SPEAKER TO POINT ROOSEVELT SUCCESS Ambrose 0'Connell, Farley Assist- ant, to Tell Young Democrats Achievements. Ambrose O’Connell, special assistant to Postmaster General Farley, will trace achievements of the Roosevelt adminis- tration in a speech to the Young Demo- | t5 work out details of the maintenance | cratic Clubs of America, District of Co- | lumbia Division, tomorrow night at the Mayflower Hotel. Beginning with the emergency banking law, enacted in the record time of seven hours, which averted a drastic money famine, Mr. O'Connell will discuss the features of Mr. Roosevelt'’s legislative program so recently culminated in the industrial| recovery act. Beginning with the Chicago conven- | ant chairman and secretary to the late Senator Walsh, the permanent chair-| man, Mr. O'Connell was actively identi- fled with the Democratic presidential campaign. He is assistant treasurer of the Democratic National Committee and was personnel director and office manager of the finance division of the Democratic National Campaign Com- mittee. Some necessary changes in the by- laws will be taken up at the short busi- ness session for members, which will convene at 8 o'clock. An interesting schedule of social and political meet- ings for the Summer and early Fall has been arranged by Helen Griffin, chair-| man of the Social Committee, and Al- bert Viault, chairman of the Program Committee.” The plans will be presented to the division for approval. Homer Tatum, acting president, will preside and present the speaker. He has issued ce Georges ¢ | dragged by the 'ROAD MAINTENANCE CONFERENCE SOUGHT | Prince Georges Commissioners to Make New Effort for Parley. By a Staff Correspondent of The Star. UPPER MARLBORO, Md., June 24. —Another effort to arrange a confer- ence with the State Roads Commission of the county roads will be made at the weekly meeting of the county com- missioners, Walter M. Grimes, chair- man, said. A conference scheduled for last Thurs- day was canceled by the Roads Com- mission. Under Maryland's new road law, county roads are to be maintained from receipts of the gasoline tax instead of by direct county road levies. As Prince Georges 1932 road levy has been ex- hausted for several months and the roacs are badly in need of repair, the county commissioners are anxious to | have the State commence its mainte- nance operations as soon as possible. Most of the county roads in Southern have recently been State Roads Commis- sion, but no systematic maintenance work done. SANE FOURTH TOPIC ‘William H. Rodda to Speak in C. of C. Radio Forum. Willlam H. Rodda, chairman of the Fire Waste Contest Committee of the ‘Washington Chamber of Commerce, will speak in the chamber’s radio forum tomorrow night at 8 o'clock. Mr. Rodda will discuss safe and sane plans for observing the Fourth of July, stressing caution in the use of fireworks a special invitation to all Democrats in Washirgton to attend this meeting. d like in order to ayold injury and loss of life. » ‘The photograph |, | tugitive squad closed 216 cases, receiv- | of the cases were carried over from the | preceding quarter, but the average of | MILK DATA SEARCH :Senate Hearings Expected to | Start in July—Ice Cream Study Included. ‘The Senate subcommitiee inquiring into milk and other dairy product prices in the District %ill continue during the next two weeks to gather and compile information, through its official advisers, before holding public hearings. This was indicated yesterday after Senators King of Utah and McCarran of Nevada, subcommittee members, con- ferred in executive session with Assistant Corporation Counsel Elwood H. Seal and W. B. Watson Snyder of the Attorney General’s office. It appeared likely after the conference that would start some time in July, but the exact date has not been fixed. Senator McCarran suggested yester- day that the inquiry should include a study of the cream content of ice cream. The Senator said he regarded this as important because ice cream has become a food rather than a luxury. Entirely aside from this local dairy product inquiry, Senator King an- nounced yesterday that he intends to | regarding what he termed “unwar- ranted increases” in some commodity prices recently. This did not have reference to milk and dairy prices, nor to conditions locally, but to prices of some commodities ~ throughout the country. Senator King conferred in this con- nection yesterday with Gen. Hugh S. Johnson, tor of the national recovery act, and said he would com- municate later with the Attorney | General. He said automobile tires and | rubber goods had gone up, and also | mentioned bread prices in some cities. ! — S CARNIVAL TO FEATURE CHICAGO FAIR MODEL Local Merchants Will Have Charge of Exhibit at St. Gabriel’s Event. A Century of Progress Industrial Ex- hibit, modeled after the display at the Chicago World's Fair, is to be one of the attractions at the St. Gabriel's Church carnival from July 10 to 22, inclusive, it was announced yesterday. Local merchants will be in charge of the exhibition, having their agents dis- play the latest commodity articles. There will be no admission fee, it was said, to see this exhibit. James W. Gessford is general chair- man of the carnival, with John Molloy, Pete Hanson, John Herbert, Frank To- bin, Tom McNamara, Martin Gleason and M. M. Grieve composing the Indus- trial Exhibit Committee. 0. K. Gas Rate Cut. WINCHESTER, Va., June 24 (Spe- cial) —Members of the Common Coun- cil indicated today there would be no objection on their part to the decrease of 12 per cent in the price of gas fur- nished to consumers by the Public Utili- based confer with Attorney General Cummings| of Labor Statistics. SPORTS NEWS | PAGE B—1 IDEFINITE UPSWING, STEADY, SUSTAINED, ISUNDERWAYINU.3. Nation’s Business Apparently Up 4 Degrees of Projected 40 for Recovery. MANY INDUSTRIAL LINES SHOWING IMPROVEMENT Roosevelt, Although on Vacation, Keeping in Close Touch With Trade Developments. BY THEODORE C. WALLEN, A steady and sustained business im- provement over a broad front was indi- cated yesterday by reports from several Federal Government agencies. On the basis of President Roosevelt's attempt to raise commodity prices to approxi- mately the 1926 level, the Nation ap- peared to have moved upward more than 4 degrees of a projected 40. With the country off the gold stan- dard and resisting a European demand for stabilization of the dollar as the huge national recovery program swings into operation, the official reporting system of the Government, centering around the Federal Reserve System and the Department of Commerce, showed the following: Increase in industrial production from 60 per cent of “normal” in March ;:.8; per cent in April to 76 per cent in Pronounced increases in steel, auto- mobile, lumber, textile and shoe produc- tion, in construction contracts awarded and in freight traffic. Increase in Employment. A 3 per cent increase in em) ent in manufacturing industries p];;ym one month, bringing the total of re-em- Pployed to more than 1,000,000. increase in factory pay rolls by a large percentage to about 42 per cent of “normal.” A rise in wholesale commodity from 60.3 per cent of the 1926 average in mid-April to 64.5 per cent a week 2go. ‘Widespread results of dollar deprecia- tion, especially in the Western Canadian market, where American chemical man- ufacturers have gained a decided ad- vantage over French and German xux;}:plk;sngm in some instances shut- ou exporters from the East- eavier purci of American auto- mobiles in several foreign markets, par- ticularly Swedish and l‘s‘:vin - A return flow of $156,000,000 of cur- rency from circulation. Increases of $175,000,000 in loans and investments of Federal Reserve member banks in 90 leading cities in one month, due chiefly to growth of security loans loans at New York City World Shipping Gains. The Commerce ¥ portaticn. divien B ® e TORN WEEKS B most reassuring evi th;xtl t!il: fld‘e lt;.t;lha t\lflle(lf’flwe b view of al previous disappoint- ments, the general disposition was to be cautious about predictions and to assume a realistic_attitude about the difficulties ahead. It is felt that prema- ture ballyhoo sbout having made the tl:)r:e d&cemvelychowldlmnke all &e psy ical reaction to temporary setback. And yet the om: this view reflected cials who expressed considerable optimism. President Roosevelt, aboard his vaca- tion schooner off the Maine coast, has been kept advised of business devel ments and was represented here to highly encouraged at a time when he is refusing to stabilize the dollar in terms of foreign currencies for fear of ar- resting the price upswing in the United States, 1926 Level Is Goal. With this unprecedented -control over the economic life of the Nation, the 85| President, is understood to have set tne 192ueve1 oi; w);clfi:h commodity prices as the goal of Tecovery program. This is on the theory Lhat"mn:h a re- cavery of prices would carry with it the increased purchasing power, wide re- employment and higher wages consid- ered essential to normal American pros- DE;!:‘Y. e commodity price increase report- ed in the Federal pR.eserve bulletin was on the weekly index of the Bureau A rapid rise in the | prices of commodities traded in on or- nized exchanges raised the wholesale price level frofn 60.3 per cent to 64.5 per cent in the last complete nine weeks, up to the first of last week. ‘Wheat, cotton, wool, hides, lard, sugar, silk, rubber and non-ferrous metals figure in the price rise, and also flour, textiles and leather. Other prices showed small relative change. ‘The steel industry reported one of the sharpest gains in operating activity. Hard hit by the depression, they were operating at less than 20 per cent of capacity at one time. Today, contrary to seasonal tendency, they are reported at about 50 per cent capacity. They seldom operate at full capacity. The shoe industry had its best May on rec- ord and the textile industry its best month of May since the depression began. Commerce Depariment Summary. In the Department of Commerce summary of the business situation ap- peared the following: “Business indexes reveal continued resistance to adverse seasonal factois, and activity during the week ended June 17 was well maintained in most productive lines, according to data sembled by the survey of current bus!- ness. Steel ingot production increased for the twelfth consecutive week, and this industry is currently operating at close to 50 per cent of capacity. Aufo- moble schedules were expanded further and the weekly output was higher than receipts were higher for the week and were er than a year ago. “For the week ended June 10, most of the major indexes were higher, al- though there was a slight decline in bituminous coal production. Freight car loadings increased 56,312 cars, following the holiday week, and were the largest of the year. The week's total was 13 per cent above a year ago, compared with 14 per cent in the preceding week. The ties Co., whose price for many years the | has been $225 for the first 1,000 feet with a slightly lower rate for increased consumption, P May statistics on fmloymcni and pay rolls prove- ment, but not to the extent of —(C‘vnmaed on Page 3, Column 3.