Evening Star Newspaper, June 28, 1933, Page 1

» WEATHER. (U. 8. Weather Bureau Forecast.) Partly cloudy, possibly local showers and thunderstorms tonight and tomor- row; not much change in temperature; gentle, variable winds. Temperatures— Highest, 85, at 3 p.m. yesterday; lowest, 71, at 3 a.m. today. Closing N. Y. Markets, Pages11,12&13 Full report on page 4. ch WITH SUNDAY MORNING EDITION ¢ Foening Star. “From Press to Home Within an Hour” The Star’s Carrier system covers every city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. Yesterday’s Circulation, 115,370 Ple——— No. 32,565. post office, Entered as second class matter Washington, D, 'C. WASHINGTON, D. C, WEDNESDAY, JUNE 28 19 33—THIRTY-FOUR PAGES. FHX () Means Associated Srm— TWO CENTS. Press. U. 5. AGAIN REJECTS STABILIZING PLAN AS PARLEY WAITS FOR MOLEY TO ACT British and American Groups Hold Private Meeting and Plan Joint Program to As- sure Success of Parley. ROOSEVELT’S MESSENGER IS FEELING OUT SITUATION Gold Bloc Continues to Bring Pres- sure for Some Kind of Stabiliza- tion, but England Stands Pat. Dutch and Estonian Situations Cause Additional Anxiety. LONDON, June 28 (®.—Fresh overtures to the United States to stabilize the dollar with the British pound and the French franc were understood authori- tatively today to have been re- Jected. The Americans were under- stood to have explained again ‘Washington’s position that sta- bilization is impossible for the present until the American price-raising experiment has been tested. The British, it was said, still are steering a middle course, hesitating about hitching up to the Americans or to the gold bloc nations. By the Assoclated Press. LONDON, June 28.—The World | Economic Conference radiated the impression this morning that it | was waiting on the pleasure of As- sistant Secretary of State Ray- mond Moley, who popularly was supposed to be bringing from his cnief in Washington medicine to cure many ills of the great as- semblage. The lobbies were throbbing with steady talk of the man who has been heralded in the press as a| mysterious but all-knowing “head of President Roosevelt’s brain trust.” . Few men have entered London with such great expectations on their advent. Feeling Out Situation. The report that Mr. Moley was vis- | fting the conference headquarters at| noon for a conference with Prime Min- | ister Ramsay MacDonald, chairman of the parley, and Secretary of State Cor- dell Hull, chairman of the American delegation, sent a thrill through the building. ! Prof. Moley did not appear, however, and the British premier said he had no appointment. The Assistant Secretary was busy from early morning hours conferring with his colleagues in the American group and feeling out the situation. Many delegates antic'pated that some | of his views might be made known in a private meeting of the Conference | Bureau which Mr. MacDonald called for late in the afternoon. Mr. Moley had concrete proposals | or suggestions for removing some of the many controveries which are blocking the progress of the conference, they were_carefully guarded. Whatever he “(Continued on Page 4, Column 2.) DECISION ON HUGENBERG IS HELD IN ABEYANCE Von Hindenburg to Await Arrival of Hitler to Discuss Com- plex Questions. the Assoclated Press. War Department Economy Scheme Saves All Jobs Civil Service Commission “Advises” Employes Against “Extra” Work. Adopting a personnel policy, viewed as the most liberal yet developed in a | Government establishment, the War | Department, it was made known today, does not plan to drop any of the 3,- 958 departmental workers for reasons of economy only; will not arbitrarily; retire 30-year workers, and plans to use measured furloughs to effect what- ever retrenchment is necessary. Whatever dismissals may be required —and it was said Secretary Dern hopes the number would be limited—would apply to the 48,559 civilian employes outside Washington. Provided requests | for public works funds are granted. it | was believed that a majority of the dis- (Continued on Page 6, Column 2 FRANG IS DOOMED, EXPERTS DECLARE France Will Either Abandon Gold or Cheapen Its Currency. By the Associated Press. PARIS, June 28.—Financial experts said today that the battle of the franc | 15 lost, and it is only a question of time until France will be obliged to de- valorize. Telephone conversations between Pre- mier Daladier and Finance Minister Bonnet, who is at the London confer- ence, are said to have revealed that hope has been abandoned of Great Britain's stabilizing with Europe. Economic forces either will push France off gold or compel the cheapen- ing of the franc, probably a fourth or a fifth, to meet dollar competition, financial experts said. “It is wiser to act now,” declared a source conversant with the views of the government, “but the public must be educated.” Nothing except the “miracle” of high dollar stabilization can save the franc, it was said, because diminution, of for- eign trade will henceforth be acceler- ated as tax receipts diminish and the budget deficit grows, compelling the government to inflate to get money, as the treasury already is almost empty. If Parliament and the people the devaloriza were awake to " tion cculd be effected soon with less suffer- ing, it was said. But the country is so thoroughly imbued with the idea of maintaining gold to make the franc safe that the government would be im- m ly overthrown if its value were changed now. Marcel Regnier, reporter for the Finance Committee, yesterday warned the Senate of the “gravity” of the French financial situation. Former Premier Joseph Caillaux predicted a “collapse of the public finances” if an additional burden were imposed through a too large ald to agriculture. FURLOUGHS TO CUT DISMISSALS BY D. C.| Commissioners Announce Retire- ments and “Marriage Clause” Also Will Ease Situation. Adoption of furloughs will avoid dis- | missal of all but a comparatively limited number of District employes in order | to meet reduced appropriations, the | District Commissioners anncunced this | afternoon. | _ The Commissioners were closeted with | Maj. Daniel J. Donovan, auditor, and | | other members of the District Personnel ! | Board, in a lengthy session tcday, but were unable to complete decisions on | the vast number of individual cases | affected by the economy measures. | | . The Commissioners will meet again | tomorrow, it was announced, to act finally on the Personnel Board report. | Two departments where dismissals | will be necessary are the building in- spectors’ office and the municipal archi- | | tect’s office. Through adoption of rota- | | tive furloughs, retirement of some em- | | ployes having 30 vears of service, resig- | | nation of other employes caught in the | “marriage clause,” and through aboli- | tion of vacant positiors. general dis- | HOURS AND WAGES FOUGHT BY LABOR INTEXTILE: CODE Concentrate on $14 Minimum Pay in Cotton-Weaving Plants of U. S. INDUSTRY HELD WILLING TO BAR CHILD WORKERS “Stretch-Out” System Study Also Ordered for Possible Elimina- tion by Agreement. By the Assoctated Press. Organized labor, having already :asted victory on important points of the competition code formulated by the cotton textile industry, concentrated today on demand for a $14 weekly min- imum wage. The case reached the open with Thomas F. McMahon, president of the United Textile Workers of America, making the .recommendation at the second day of hearings under the in- dustrial control act at the Commerce Department. Addressing Gen. Hugh S. Johnson, administrator of the law, and now and again turning to the plentiful audience, the labor executive also advocated that hours of labor in the industry be re- stricted to 35 and that there be no| differential in the minimum wage ac- corded for Northern and Southern mills. $10 and $11 Minimums. The code as drafted provides for min- imum wages of $11 a week for Northern mills, $10 a week for Southern mills, and a 40-hour week with machinery operation restricted to two shifts daily. McMahon was the first labor repre- sentative to appear, but labor interests already had gained two important points. Yesterday the “stretch-out system™ was injected into the discussion and Johnson named a committee to study the advisability of banning the prac- tice, and today T. M. Marchant, pres- ident of the American Association of Cotton Manu‘acturers, announced for the industry that it was willing to have elimination of child labor included in the code. Under the “stretch-out sys- tem,” one worker may be required to attend a larger number of machines than labor thinks desirable. After Marchant's statement, W. L. Allen, deputy administrator of the law, who was presiding, asked: “Do I understand then that you will submit a properly drafted provision dealing with child labor for the code?” “We will, sir,” replied George Sloan, president of the Cotton Textile Institute. Differs With Code. Thereupon, F. C. Dumaine of the Amoskeag Manufacturing Co. of New Hampshire was introduced as one of the textile spokesmen who differed with the code prepared by a majority of the industry. “I believe there shculd be one national! work scale of 48 hours,” he said, while agéeelng with “general features” of the e. William Green, president of the Amer- ican Federation of Labor, has advocated 30 hours a week limitation, or 32 at the most. Take Exceptions to Code. Russell E. Watson of Johnson & Johnson, a corporation eng&ged in the production of surgical supplies at New Brunswick, N. J., spoke for his concern and its two subsidiaries, the Chicopee Manufacturing Corporation of Gaines- ville, Ga., and the Chicopee Manufac- turing Co. of Chicopee Falls, Mass. The Georgia mill has 59,000 spindles and 1,475 looms, and employs 670 peo- ple, while the Massachusetts mill has 47,000 spindles, 980 looms and employs 650 people. “About 75 per cent of the product of the Georgia mill and the Massachusetts mill are consumed by Johnson & John- son in the manufacture of surgical dressings, hospital supplies and sanitary napkins,” Watson said. “We favor the adoption of the code of fair competition as submitted to the administrator for the cotton textile in- dustry in all its particulars except: “We take the position that the pro- posed minimum wage of §11 per week for the Northern section and $10 per week for the Southern sections for 40 hours of labor is substantially too low. Higher Minimum Wage. “We insist that a minimum wage of $15 per week should be established for EUDECK, East Prussia, June 28.— | missal of employes to cut salary costs |the Northern section and $14 per week President von Hindenburg's decision on the resignation of Dr. Alfred Hugen- berg, minister of economics and agri- culture. will be held in abeyance until Charcellor Hi can come to Neudeck to discuss the complex questions result- ing from the withdrawal of the Na- tlonalist leader and the dissolution of his party This was taken in political circles w\ wean that the president will not sign nberg’s discharge until who is to succeed him Chancellor Hitler’s further political program is CHARITY RECIPIE HALF OF PUBLIC WORKS JOBS| Hopkins Urges on Cabinet Supplying Labor—Another Meeting Tomorrow. By ‘he Associated Press Harry L. Hopkins, Federal relicf ad- ministrator, today urged upon the cabi- net board in charge of public works that half the jobs to be created by the $3.300,000.000 fund be given persons on charity relief rolls ‘The board will discuss the proposition again in a session tomorrow, along with | definite percentage of relief funds spent . how best to utilize employment agencies in supplying men for the work. Prank Persons, director of the new F.deral Employment Service, outlined several plans to the board Secretary of Interior Ickes said the will be avoided in most of the depart- ments, the Commissioners reported. ITALIANS DELAYED Bad Weather Prevents Take-Off | of 25 Seaplanes. ORBETELLO, June 28 (#)— | Ttaly. ponement of the start of 25 seaplanes | | for the Century of Progress Exposition | at Chicago. NTS MAY GEET* Board His Suggestions for | elsewhere,” for the Southern section. “We will acquiesce in any length of working shift which the administrator finds to be in the public interest, with- out any limitation in the operation of machinery. We also take the position that all employes should receive this minimum wage, except learners during apprenticeship.” The second major objection named by Watson was against any limitation he | Bad weather again today caused post- | On the operation of machinery, which the code proposed to put at two shifts of 40 hours each. He explained his Georgia_ plant was working 144 hours per week on two and one-half shifts a dav and the Massachusetts plant two 6-hour shifts and one 12-hour shift, five days a week ‘Limitation of machinery operation will throw out of employment in these two mills nearly 500 people presently employed. who will have to seek work Watson said No Children in Plant. “We have never employed any wo- men on night work and have never worked children under 18 years of age | Hopkins suggested that 50 per cent of the labor should come from relief rolls and the other from among unem- ployed persons now self-sustaining Ickes said: “The board wants to re- lieve relief rolls so far as consistent w"xh the rights of those not on relief rolls.” | State relief administrations may re- quire that cities and counties supply a within their boundaries. Hopkins 5o ruled today in answering a question of Frank M. Rarig, jr., of 8t. 5';”‘ Minnesota, State director of re- ef. “The Minnesota Board of Control,” board intended no action to prevent Rarig wrote, “greatly desires to obtain reforestation workers from applying for | {fom you a statement in writing as to public works jobs. | what extent it may go in requiring the There has been as yet no discussion | 1ocal political subdivisions to finance of hours of labor and wage scales. their own relief needs to the extent of Preference in consideration of ap- | their resources.” Plications for public works funds, Ickes | “It seems to me,” Hopkins replied, sald. will be given by the board to | -that you should have about the same public works as private works. (Continued on Page 2, Column 1 and will not do so, regardless of the fact that we may be permitted to do !so_under the proposed code.” | Watson modified his prepared state- ment in view of the earlier announce- ment child labor would be banned. He argued also that curtailment of machinery operation would substan- tlally increase production costs “We urge.” he said. “that the pro- posed code be amended by increasing (Continued on Page 2. Column 1) { L |GUlDE FOR READERS Page. Amusements A-10 Comics .. Features . Finance . Radio .. Serial Fiction. Society ... Sports .. il THERE SEEMS To HAVE BEEN A CHANGE AT WASHINGTON BUT THESE LOOK LIKE THE SAME OLD ACTORS ! ")) )i\\‘\:\\ b %, &y, N, N N\ \\\\\ « N\ R ¢ i\ LOAN APPLICATIONS MADE: AVAILABLE Blanks for Share in Huge Emergency Fund Ready for Circulation. As the Cabinet Advisory Board pre- pared today to discuss the hours of work and dollars in pay for the men to be employed on public works projects, the national recovery administration | began circulating the first application blanks for loans from the $3,300,000,000 | emergency appropriation. The blanks call for a wealth of in- formstion on which the administration can base judgment in its desire to speed up distribution of funds and to | put unemployed back in jobs. The applications available at the Of- fice of Public Works Administrator Donald H. Sawyer were rushed through, eliminating all delay possible to achieve the purpose of the act, it was said. Interest Not Yet Fixed. Officials said they were to be used in submitting for approval non-Federal ublic projects for which aid is sought. glwyer instructed tnat filled-out appli- cations be sent to State administrators as soon as they are appointed. These { administrators are to check the quali- | fications of the offered projects against ing them here. It was stated that the rate of inter- est on any such Federal loans would be announced later. Fairly general specifications for n Federal projects are required in the original application. Descriptions of the work must be included, when con- struction can actually start, how long | it will take to complete and the place of the project in any large plan of building which would cause more work. Officials said that information is sought on the estimated total cost, the financial status of the applicant, the necessity of the project as well as the general classes of labor and construction personnel to benefit and the extent in man hours of employment. Consider Pay Rates. In regard to working hours and pay scales, it was made known today that the Cabinet Board would have before it a suggestion by Hugh S. Johnson, industrial control administrator, for a 32-hour week and a 45-cents-an-hour rate. Up for decision also will be whether workers should be taken from the reforestation camps to help with the construction Officials said they were studying to- day a list of projects aggregating ap- proximately $500,000,000, submitted by the Reconstruction Finance Corpora- tion, from which the more meritorious works will be suggested to President Roosevelt, and then sent to State ad- ministrators for consideration. i _ The plan of turning the applications for Federal financing of non-Federal projects back to the State administra- tors for recommendations will be fol- lowed, for the present, as part of the program to decentralize distribution of the fund, avoiding congestion here. | Applications Received. | n- man of the Cabinet Board, in charge of the public works program, informed newspaper men prior to the conference that “we will have to decide whether or not we will draw on sources other than the running the risk of depleting the Con- servation Camps and having to fill them | up again at more expense.” He said he did not believe it likely that the board would act on the pro- posed $135,000,000 housing program rec- ommended to it last week by the Army, and referred by the board to a sub- committee. Approximately 550 applications States, cities, counties and other agen- cies not connected with the Federal Government have been received thus far by the Public Works Administration, it was said. the law’s requirements before forward- | Secretary of the Interior Ickes, chalr- | Civilian Conservation Corps| for labor, or take them as they come,| of | KAHN PAID NO INCOME TAX - IN YEARS 1930, °31 AND °32 By the Associated Press. Ferdinand Pecora, counsel of the Sen- ate Banking Committce, said today his :e\'ldence showed Otto H. Kahn, senior | partner of the Kuhn, Loeb & Co., paid no income tax in 1930, 1931 or 1932. Pecora told newspaper men he also expected to submit evidence that the | total income tax payments of the firm's other partners in those years was “neg- | ligible.” | The disclosures were expected by in- | vestigators to give further impetus to | the drive for changes in the tax laws. | Evidence recently was received that | partners of J. P. Morgan & Co. paid no income taxes in 1931 or 1932 and only | $48,000 in 1930. Supported Bond Market. Shortly before two Kuhn, Loeb part- ners declared originators of a $20,000,- 000 Chilean bond issue supported the | market for the period covering their | sale to the public. | " This had followed testimony that the | originators, including Kuhn, Loeb, made |a net profit of $247,000 on the sale of | the bonds, now in default, on which JPecora Says He’ll Show Evidence Other| Partners’ Payments in Those Periods Were “Negligible.” | the risk was passed on to others within 24 hours. The witnesses, Otto H. Kahn and Benjamin J. Buttenwieser, shied away from the term “pegging the market | but said “supporting or aiding the mar- ket” was a more accurate description of the operation. They said their firm made $111,207 through marketing the bonds. Others profiting were the Guaranty Co. and Lehman Bros. | Earlier, Buttenwieser firm had not put in the prospectus on which it sold the bonds information that Chile had an unbalanced budget. | He insisted, however, the budget figures were not as important as the country’s favorable trade balance. Buttenwieser pointed out his firm had not mentioned the budget question in later prospectuses when the Chilean budget was balanced. “Don’t you think the American pub- lic was entitled to know what you knew—that the Chilean budget had not tbeen balanced for a number of years?” | Pecora asked. | . Buttenwieser xeplied, “the ]trlde figures were more important.” | _Pecora plans to inquire further ! (Continued on Page 2, Column 4.) TWO MORE STATES N WETPARAE West Virginia and California | Bring Repeal Total to i Third of Union. One-third of the 48 States have now voted to strike the eighteenth amend- ment from the Constitution. West Virginia and Califcrnia made the score 16 to 0 in favor of repeal when their voters returned majorities | yesterday for the twenty-first amend- | ment, which aims to delete the eighteenth. In West Virginia, a border State, which had been dry for 20 years, the margin of the repeal victory was about 79,000, with approximately three-fcurths | of the ballots counted. | 3 t0 1 in California. | california, which had wiped its own prohibition law from the books last year. was giving repeal a lead of about 3 to 1 as tabulations poured in today. Repealists must win 20 more States to delete prohibition from the Consti- tution. The States which have voted to ratify, besides West Virginia_and_California, (Continued on Page 5, Column 1.) on Return Here. The District commissionerships “will be the first order of business” which Postmaster General Farley will take up | with President Roosevelt on his return to the Capital. The Postmaster General today gave | this assurance to newspaper men with | a laugh, these appointments now having | hung fire four months after seeming on a couple of occasions to be only a mat- ter of hours away. ] Which should be Which should be Mrs. Franklin | Traditions of Public Life will discuss these questions in an interesting article in the Society Section of The Sunday Star July 2 overlooked? rigidly observed? D. Roosevelt D. C. HEADS TO BE NAMED President to Act on Commissioners | Intyre, a secretary to the President, | came back with Mr. Davis aboard the RODSEVELTHEARS REPORT BY DAV President, Fog-Bound at Lakemans Bay, Rules Out Nova Scotia Trip. By the Associated Press. LAKEMANS BAY, Roque Island, | Me., June 28 —President Roosevelt, held here three days by fog, received from Norman H. Davis, American Ambassa- dor at large in Europe, latest reports on the Geneva Disarmament Confer- ence and the general situation in | Europe. It was the President's first personal contact with the outside world since he sailed the Amberjack II into this port Sunday night. . Davis came here a day late as a re- sult of the fog. A cutter from the destroyer Ellis reached the destroyer Bernadou, 7 miles out at sea, early | this morning and brought him to the | Amberjack II at 11 o'clock. The Bernadou had to creep cau- tiously along the rockbound, fog-laden | coast line yesterday. She anchored last night off Libby Islands, 7 miles at sea, and this morning Lieut. Blue of the Ellis poked his way through the fog and rocks to get to her and return to the Roosevelt fleet here. Laughing ! and unshaven, the President joshed with newspaper men this morning about the fog. He'll Stick It Out. “It won't last more than eight 7t he cheerfully advised. aRvica | _“Are you going to stick it out?” he was_asked. “Oh, sure, this is great,” he replied. "I really think there is a chance for a let-up this afternoon,” he added. “There is a wind and it seems to be sradually getting around from the east o the south. That will do the trick.” Dressed in a couple of sweaters and 1 loose-brimmed sailor hat, Mr. Roose- elt chatted freely with his fog-bound | mates as he pulled back to anchor from | a_surprise trip this umorning to the | Ellis for water. This disappearance thriller for a while. No one saw the ! Amberjack pull out. Newspaper men Just thought the fog was that much ' thicker. Some lynx-eyed individual . finally decided he had gone. Launches were put out and investigation revealed | | the dinghy of the Amberjack but no Amberjack. 1 Nova Scotia Trip Out. Poking along to the edge of the harbor, the newspaper craft crossed the Amberjack with the President at the wheel returning from the Ellis. | _Mr. Roosevelt arranged to send John ahead to Campobello Island for a visit with his mother for the day before de- parting for his Summer's work in a polo school where John has a job. James Roosevelt and Marvin H. Mc- was a hlg; testified his | 30D, C. PROJECTS GRAYSON ARE OUTLINED FOR FEDERAL APPROVL 1$22,716,500 Improvements | Would Include Hospitals, Schools and Libraries. RECOVERY ACT AID WOULD | PROVIDE FOR MANY JOBS Public Works Plans Emphasize How Development of Washing- ton Has Been Delayed. INDICTED ON TWO COUNTS IN PARK SAVINGS CASE Ex-Treasury Official Accused of Warning Bank of Ex- aminers’ Trips. FALSE DEPOSIT ENTRIES AS PAYMENT CHARGED Three Others Also Are Named by Jury—Employes and Customer of Mount Vernon Bank Indicted. The District Government today asked the Federal administrator of public works to approve grants amounting to $22.716,500 out of the $3,300.000,000 na- tional recovery act appropriation for a list of more than 30 needed District projects which otherwise cannot be car- ried forward. The long list forwarded to Col. Don- ald Sawyer, public works administrator, after the District Commissioners this morning placed their stamp of approval on the proposals. revealed graphically how the development of Washington has been delayed by economic conditions and by drastic cuts in the 1934 District appropriation. . Many Improvements. ‘The projects outlined in the request for Federal funds include hospitals, schools, branch libraries, two units of the new municipal center, development of which was ordered by Congress sev- eral years ago; a new jail, a new morgue, additional buildings for Na- tional Zoological Park, extension of the sewer system and a new fire engine house. This list of requests does not include highway improvement programs which may be carried forward at once under an allotment of $1918,400 which the District Commissioners have been noti- | fied will be made to the District out of i the £400,000,000 in the recovery act ap- propriation for road work. The projects requested will give in- creased employment opportunities in | very large measure to Washington's ! destitute and thereby relieve the Dis- | trict of much of the growing burden of | emergency relief. p Three Classes. The program proposed by | trict Commissioners is in three classes. | The first would come under the recov- ery act provision for grants by the Federal Government up to 30 per cent |of the cost of projects, the remainder to come from local finances. The sec- ond calls for 100 per cent grants for other projects which may be started at once and the third group for projects for which the Distrigt lacks funds, but which could be rted within six months if finances are provided out of the national act. The first group is rather limited, since the District government has but little | money available, comparatively speak- ing, for developments not included in the District appropriation act. This group includes a conta $150,000 is asked. The District now has available for this building an appro- priation cf $250,000. this list is the Anacostia Junior High School, for which the District asks $120,000, the District now having avail- able $225,000. The next item is the Woodrow Wilson High School, in the Reno section, for which $330,000 is asked, the District now having an authorization of $475,000. The other item in this group is the Calvert Street Bridge over Rock Creek, for which $360,000 is asked. If the Bureau of the Budget approves the District will have available to start this bridge $575,000, out cf the District’s own gaso- line tax surplus. Under the 30-70 provision of-the na- tional recovery act, therefore, the Dis- trict would be limited to projects having costs totaling $960,000 in grants com- ing from the Federal act. Declared Pressing Need. In asking approval of the contagious sioners told Col. Sawyer: “The need for this structure is very pressing in taking care of the appropriate cases in the National Capital. The very heavy need is largely due to the special situation resting in the National Capital by reason of the fact that private hospitals will not take cases for which this hospital is intended.” As to the Anacostia Junior High | School, which the Commissioners de- clared is badly needed, it was pointed out this project has been postponed be-- cause the needed appropriation was not included in the 1934 District appropria- tion bill. It would be the first junior high school in this community. In urging approval of the grant for the Woodrow Wilson Senior High | School, the Commissioners pointed out gious | disease ward for Gallinger Municipal | Hospital, for which a Federal grant of | the The second on | ward hospital building, the Commis- | John Cooke Grayson, former chief clerk in the chief national bank ex- aminer’s office for this Federal Reserve | district, was one of four men indicted by the District grand jury today in con- | nection with the wrecking of the Park | Savings Bank. Grayson is a brother |of Admiral Cary T. Grayson, White House physician during the Wilson ad- ministration and director of the Roose- velt inaugural ceremonies last March. The grand jurors also indicted three employes and one customer of the Mount Vernon Savings Bank in connec- usole:ngvnh a shortage of approximately $5.600. Grayson is charged with informing Robert S. Stunz, former vice president of the Park Bank, when the Federal bank examiners were prepared to visit his institution. In return, it is charged, Stunz accepted overdrafts from Gray- son and credited the latter's account with approximately $4,000 he never de- posited. Took All of Blame. Stunz committed suicide last March, leaving a note in which he said he alone was responsible for the short- age at the bank. An investigation by | the Department of Justice disclosed that this shortage aggregated $1,700,000. Grayson, who is 65 years old, is said he is able to return to this city. The other three indicted in connec- . Clayton, both bank employes, and Samuel Borden, & customer. s Monroe is named in two indictments. The first charges him with embezzle- ment and grand larceny of $1,100. In the other he is named jointly with Borden. They are said to have obtained $2,345 by kiting checks. Pive such checks allegedly were put through the Speich and Clayton are charged in one indictment with the larceny and embezzlement of $2,181. Bordon appeared in court this after- noon and was released on $1,000 bond. Indicted on Two Counts. ‘Two separate indictments were re- turned against Grayson, one charging him with conspiracy to commit a crime against the United States, namely lar- ceny and embezzlement. The other charges conspiracy to defraud the United States by informing Stunz when the bank examiners were coming to the bank. It is alleged Stunz, aided by this information, was able to conceal the shortage from the examipers for four years. The second indictment sets forth seven instances between January 1, 1929, and January 30, 1933, when Stunz allegedly was “tipped off” by Grayson that the examiners were an their way to the bank. The first indictment charges that on seven occasions Grayson cashed over- drafts on his account. They were as follows: August 6, 1927, $29; December 16, 1927, $686.82; August 15, 1929, $57.63; September 19, 1930, $71; March " (Continued on Page 2, Column 6.) (Continued on Page 2, Column 8.) AS VERSAILLES By the Associated Press. BERLIN, June 28.—All Germany went into mourning today in protest against the treaty of Versailles, signed 14 years ago by representatives of the allied pow- ers and Germany. ‘The new regime of Chancellor Hitler, which moved closer to complete dom- ination of the national scene with the‘ dissolution of the Nationalist party and its affiliates, is responsible for the first observance of the anniversary. Flags were flown at half-staff from churches, public buildings and homes. Demonstrations were planned all over| the country, and the Berlin Protestant Cathedral announced a special prayer service on the theme, “God Liberate Us.” All newspapers devoted editorials to the pact. Chancellor Hitler's Voelkischer Beo- bachter asserted: ‘“‘We now realize that we were misguided through President Wilson’s 14 points, extended to Ger- Bernadou. If the fog lets up late today or to- night, Skipper Roosevelt hopes to cruise about Grand Manan Island before into his Campobello destination. The trip wiNov: &cotia is out. many as a bait for accepting the terms of this devastating truce.” Public opinion supporting today’s dem- onstratons was aroused last week, when newuupen unanimously decried the aviation inequality imposed at Versailles and d on the n(u of e i GERMANY GOES INTO MOURNING TREATY PROTEST New Chancellor Hitler Regime Responsible for Doleful Observance of Anniversary of Pact. ported visit to Berlin of foreign air- planes, that Germany be given the right of self-protection. While the protests held the center of the stage today, developments in the political and church flields aroused great interest. Among them were: Dissolution of the national front of the Nationalists and affiliated orraniza- tions, leaving the Catholic Center party 'fhfd only political group outside the Nazi old. Confirmation of reports that Dr. Al- fred Hugenberg, Nationalist leader and minister of agriculture and economics in the Hitler cabinet, had submitted his resignation. Banning of the Stattspartel, formerly the Democratic I}nny from representa- tion in national and Prussian parlia- ments, because members alegedly pooled interests in the latest election with the social Democrats, prescribed last week. 1933-34 budget Cabinet approval of estimates, balanced at 5,900,000,000 marks (currently $1,746,400,000). The declaration by Capt. Hermann G . Prussian premier and Hitler leader, that the Landeskirchen, Bodelschwinch his approvai,