Evening Star Newspaper, June 28, 1933, Page 2

A2 Seked THE EVENING STAR., WASHINGTON, B.. €5 WEDNESDAY, JUNE 28, 1933, LABOR IS FIGHTING LONG MILL HOURS Higher Wages Also Sought in| Cotton Textile Code at Hearing. (Continued From First Page) the proposed minimum wages to $14/ and $15 per week, which will consti- tute a living wage and permit respect- able living and by eliminating so much thereof as limits the operation of pro- ductive machinery in the cotton textile tndustry and_substituting therefor a ! provision that productive machinery shall not be operated in the cotton | textile industry more than five days per week.” Give Cross-Examination. Johnson and Allen gave Watson the first real cross-examination of the hearing Slouching back in his chair, with one hand in his pocket and kicking the table at times for emphasis, Johnson shot queston after question on the wit- ness' proposal against limitation of machinery operation. Henry B. Kendall of Boston, presi- dent of the Kendall Co., with mills in | South Carolina, insisted “cleaners and | outside hands” should not be excluded | from the minimum wage limitation. | “As regards the night shift.” he con- tinued, “for 8 number of years I have | been fighting for the elimination of | women and minors from the night shift Gerard Swope (left). president of the At the Recovery Hearing General Electric Co.. caught by the camera IKAHN PAID NO TAX ONINCOME 3 YEARS Pecora Says Other Partners’ Payments in '30, '31 and '32 Were Small. ___(Continued From First Page.) into the services performed by Norman | H. Davis in return for fees amounting (tc $35000 in connection with the sale of the bonds That took place in 1925, when Davis {had no_connection with the Govern- {ment. He recently became America’s Ambassador at large in Europe. Pecora suddenly turned to the Chilean loans near the close of yesterday's ex- amination of Kal BARRNANS TR | 5 ETFORLLY | | U. S. Judge in New York| | | Spurns Plea for Delay Based on Hearing Results. NEW YORK. June 28 —Federal Judge William Bondy today brushed aside & plea of the defense that a delay of a i year should be granted. and set July |6 as the date for trial of Joseph W | Harriman, former head of the Harri- {man National Bank & Trust Co. | Harriman is under indictment which | charges he caused false entries to be ' made in the account books of the bank Indicted in Kahn testified Davis was paid fees| totaling $35,000 in 1925, when he was | Albert M. Austin, & former vice presi- a private citizen. in connection With a'gent of the bank, accused of aiding in $20.000.000 bond issue for the Mcrt- | the alleged crime, will go on trial with 1t seems to me that we shculd do this now, during a whispered conversation with Gen. Hugh 8. Johnson, administrator of the natlonal recovery act, at the meeting to adopt codes of fair play for the ‘Some vears ago operators of 80 per cotton industry. cent of the spindles were willing (o eliminate women and minors from the R evening shift, but the incorrigible 20 !0 many points which you did not take vith me before.” per cent blocked it. up W e 80 Per Cent Still Willing. McMahon rejoined: —Underwood Photo. NO RELIEF IS SEEN “I had no hand in making up the “T belleve the 80 per cent still are i willing to do this and it seems to me we_ are not settling this matter rightly until we face this situation courageously and frankly and end it for all time.” ‘The administrator indicated no ex- emptions would be made for specific plants if by so doing the plan for more employment would be defeated. Asked about the practice of some mill | owners operating their own villages at | their own expense instead of pnying‘ higher wages and charging for the services, Watson contended long experi- | ence had shown it was more advan- for mill operators to own the | homes themselves. Ancther significant tack was taken by Allen when he asked whether the pro- posed differential between Southern and Northern mills would not permit the “huggling” of business by the operators and perhaps closing down their North- ern plants to operate in the South. | Watscn replied that in the case of | Johnson & Johnson both their Georgia | and Massachusetts plants have been' operating at capacity for years and! :hhn it would make no difference to em. | Unlimited Machinery Use. | Urging unlimited use of machinery. he said there was nothing to prevent | code. These points were not brought | out in the negotiations before us.” | “I see” Alien commented. “These | | were additional points.” ‘ A bit later, Johnson told McMahon: “You are entitled to bring in any facts. | | But these are not adversary proceedings. | We want facts in an effort to co-| operate.” FROM HEAT WAVE “We are endeavoring to co-operate,” McMahon said. Later in the session Labor Leader Green was to present his views. Tire Man Protests. Late yestercay a protest against in- clusion of his plants under the code! was made by C. A. Stillman, vice presi- Large Portion of Nation Bak- { ing Under Fierce Rays ] of Sun. By the Associated Press. dent of the Goodyear Tire Co.. in behalf Mother nature baked a large area of gage Bank of Chile, and a subsequent issue. The services performed by Davis were not disclosed Buttenwieser took the stand as the hearing opened today to give details of his firm's participation in selling _the Chilean bonds to the American public Later. it was disclosed. the investiga- tots will place in the record names of individuals who profited from sharing in the flotation of securities managed by the private banking house of Kuhn. Loer & Co. Pecora said some individuals were in- vited to participate in these issues. sh ing in the profits they ylelded. without Itisk to themselves and in some cases i with-ut investing cash Explains Chilean Loan. Questicned first about the original Chilean finance ministry dated Decem- ber 2. 1932. saying “an enormous de- cline” in exports and the fall in com- modity prices made it impossible for the borrowing bank to resume pay- ments. “What study did you financial _condition of bank prior to underwriting $20,000,000 loans?” Pecora “We made a careful stud; welser replied. “It showed that during a 70-year rec- ord of performance, the maximum losses in any 10-year period was $40,000 “The securities in their home market sold better than the government secur- ities, and in addition we insisted on a guarantee of the government of Chile indorsed on the bonds.” Buttenwieser read a letter saying | Chilean Bank made only first mq make of the the mortgage the first ed. Butten- the gage | $20.000.000 Chilean loan in 1925. But- | tenwieser produced a letter from the Harriman. George S. Leisure, counsel for Harri- I man, in asking for a delay of a year said that the senatorial subcommittee | investigating delay in the Harriman | prosecution had prejudiced the com- | munity against Harriman in the hear- |ing 1t neld in New York Monday Senator Henry F. Ashurst of Arizona. {chalrman of "the subcommittee, and ! Senator M. M. Neely of West Virginia, | | a member of the subcommittee. by say- ing that “no one expects great intelli- | gence in Senators from Arizona and | West Virginia." | Leisure said that at a subcommittee hearing in Washington Senator Neely had said “it is not necessary to en- | courage a bank president who has | | stolen over a million dollars from his | depesitors to continue on a job so profitable.” KENNETH BUCK SEEKS NEW KIDNAPING TRIAL Attorney Takes Exception to Con- duct of McMath Case at Barnstable. By the Associated Press. WORCESTER. Mass. June 28.—At- torney Elias Burwick, counsel for Ken- neth ‘Buck, convicted kidnaper of Mar- garet McMath, today filed a motion for a new trial. The trial guilty for Kenneth, scquittal for his In his argument Leisure referred to| BENEDICT M. McNEIL 30 D. C. PROJECTS SUBMITTED FOR GOVERNMEN ____(Continued From First Page.) | reporting it had long been planned to} a large number of puplls from contigu- ous Maryland and Virginia communi- ties constitute a very large factor in making project one of pressing necessity. The ~ Commissioners declared the | necessity for replacing the old Calvert Street Bridge to be “compelling.” pcint- ing out it is inadequate in traffic ca- pacity and “deficient in strength.” Municipal Center. The second group of projects, which can be started only on 100 per cent grants by the Federal Government. is headed by the first units of the munici- pal center, to be erected, on the east side of John Marshall place, between Pennsylvania avenue and D street, which would house Municipal and Po- lice Courts, the Police and Fire Depart- ments. Bank Case M. MecNEIL. ALEXANDER —HarTis-Ewing Ph otos. == T APPROVAL | move this institution elsewhere to & | District-owned site at Muirkirk, Md. | "A new building for the Municipal | Lodging House, costing $100,000, to re- place the temporary quarters now lo- cated on the Municipal Center site. Training School Building. A building for the District Tralning School, costing $340.000, which is de- scribed as “vitally necessary.” The second unit of the Municipal | Center, to be erected on the west side of John Marshall place, which would accommodate the executive and admin- istrative offices of the District govern- ment, which will be ousted from pres- ent quarters in the District Building. For this project a request is made for $5.000,000. ‘The Michigan avenue viaduct over the Metropolitan branch of the Balti- more & Ohio Railroad, a project In requesting & grant of $4.600.000 Planned for considerable time but post- for this unit and pointing out that this | Poned to await completion of the Mon- | work could be started in one month, | FO€ street bridge, and needed to remove the District Commissioners said: dangerous grade crossing, for which “This building was authorized at a| “g“““ is asked. it ; cost of $5.400.000 in the 1932 District| For improvement or R ta appropriation act. Only about $500,000 ended with a verdict of | has been appropriated and is available | = | for prosecuting the construction. brother Cyril and a sentence of 24 to | District’s financial situation is such | school buildings, for which $2,395,000 is asked, as follows: Addition ' t 2 CAPPER PRASES RODSEVELT EFFORT ' Senator Warns Advertisers of Campaign to Defeat Recovery Program. | By the Associated Press. GRAND RAPIDS, Mich., June 28— Senator Arthur Capper told the annual | convention of the Advertising Federa- tion of America today that & wide- spread campaign aiready is under way to defeat the recovery program of Presi dent Roosevelt. The Kansas Republican, addressin: a luncheon session on the closing da. of the convention, sald that despite such a campaign “we may be sure that %muma-w business and little busi- ness—will never again be exactly the same as it was in the booming '20's.” “Of one thing we may be sure,” he said, “there will be—there already is— | sharp reaction to many of the plans and policies proposed, toes will be, tramped upon, special interests will be cramped and restricted, politics will be played, many of the high hopes now en- tertained for the establishment of social justice doubtless will end in- bitter dis- appointment.” Nevertheless, the Senator sald, he hoped for an end of the philosophy of “every man for himself and the devil take the hindmost.” “1 want to say that radical and rev- olutiovary as much of our legislation may appear to the future historian.” he said, “it was not taken as the re- sult of a whim or caprice or personal mbition. The situation called for eroic action. and I for one have no apology to offer for the support I gave to the major meesures pr by the administration. it was no time to play politics or to corsult precedent. XP we wrecked a few traditions in our effort to save a perishing Jpeople, 50 much the worse for tradition. The Kansas Senator asked for the ‘strongest support” for his measure calling for drastic penalties for - sons dlsseminating false or misl information in advertising, if it comes law. GRAYSON INDICTEfl ON TWO COUNTS IN PARK SAVINGS CASE of his own and three other major tire companies. peaking also for the Pirestone ‘Tire and Rubber Co. United States Rubber Co. and the B. F. Goodrich Co., he said all four maintained separate plants for the manufacture of cotton fabrics used in their tires but that none of the fabric was sold on the open market in competition with the cotton fabrics. He argued those companies should not be included as a part of the cotton textile industry and should not be sub- | ject to the code. Exemption Is Asked. Stillman urged specifically that if the fabric milis of the tire companies were ; : at tne | loans “on a conservative basis.” the Nation, striking particularly at the 10858 "0 b Conserialue BOVEL ) Central and Southwestern States and | cocyrities backing the $20,000.000 loan no general immediate Telief was in|to the bank, the witness added, was | sight today. | four times the value of the loan Torrid temperatures yesterday broke | . ~We placed the greatest reliance on i the government’s guarantee,” he said. records throughout the section, crops| Asked whether the guarantee or the were seared and prostrations were nu- | security was the “principal factor . | prompting the loan, the witness said: e |71t is impossible to differentiate be- In Chicago an all-time June peak Was | tween the two.' reachedwhen the mercury shot up to| an official 100.1, breaking the previous Studied Trade Statistics. maximum of 99.8 registered last June! quegtioned closely by Pecora, But- nweiser sald before underwriting the | 7. At least_seven persons died from ., the hest in Z'linots. bonds his firm studied Chile’s trade | statistics and indebtedness. he could not see where the restriction | included as a part of the cotton in- of two 40-hour production shifts would limit capacity. McMahon then read his prepared statement in which he said: “If we were free to assume that the | national industrial recovery act is in-| tended merely as the commencement of what we may term an inching along process toward a somewhat more de- sirable condition, then we might as- sume the code as offered by the cot- ton textile industry is acceptable. “We are not free to assume that. “On the contrary, it must be accepted as fact that the national industrial re- covery act is intended to create a pros- erous nation of people, who ave work from which they may earn at least a sustaining wage and from which they may derive a purchasing _power sufficient to continue all Amer- jcan industry in full and prosperous operation. Working Hours for Women. One of his objections to the code as it stands was because it contains no | limitation _upon_ werking hours for | women. He also protested exemptions | of certain classes of labor from the code. Of the proposed Southern minimum wage, McMahon said, “Surely common sense cannot accept or condone a wage | of $10 a week, and it must find abhor- Tent a learning period at no wage.” He condemned the theory that Southern workers should not be paid- as | highly as Northern. “Southern workers in the textile in- dustry have lived mére cheaply, we con- cede, than have Northern workers.” he sald. “However, so have Mexican work- ers and so have Chinese workers. We | are not here to determine how cheaply | i 198 at Phoenix. s 4 pted .| The Southwest saw temperatures as He said the figures showed Chile had bt Ahey e e from e high as 108 at Phoenix, Ariz, and 105 a “substantially favorable trade hou tion of ; striction in, the hours of operation of | i %Xlva, Okia. Welcome rains, however, ,ance” every year but three from 1900 | machinery in their plante. He said the tire fabric mills nad been operating on three 8-hour shifts a day and that if the machinery hours were reduced to 80 hours a week under the cotton code, several hundred em- ployes would be discharged. Stillman asserted that inevitable con- sequences of reduction in machinery hours in those plants would be a shortage of tire fabrics with probable increase in tire prices and loss of em- ployment for thousands of workers. Through a shortage of fabric, sald, many tire workers thrown out of employment, as one fab- ric worker could produce sufficient fabric to keep three tire workers busy. He contended that these fabric mills | actually were nothing more than de- partments of the tire-producing com- panies. F. A. Selberling of the Seiberling Rub- ber Co. was applauded when he de- manded that the independent rubber manufacturers be maintained on an equal footing with the big four repre- sented by Stiliman. Seiberiing said the independents bought their tire fabric instead of hav- ing their own mills, as did the big four, and that if the mills from which they | purchased fabric were put on a 40- hour basis while the fabric mills owned by the big four remained on a 144-hour basis it would add 25 cents a tire to their costs. Seiberling also suggested that the ef- fective date of the proposed code be postponed beyond July 17. “We are running 24 hours a daj he said. “This is because inventories fell in Kansas last night, as well as at | to 1924. Ki City, Mo., bringi harp drop | “I don't see how asy ohe in 1925 o temperstures. o8 & SOATP AT | oyl “see the worid cataclysm that! Reports told of crop damage in the | came later” Buttenwieser added. “Nat- grain belt. A. E. Anderson, Federal and | urally the fall of prices affected the he | would be | State crop statistician in Neoraska, said | trade balances of Chile.” | small grains were beyond help despite rain yesterday in Southeastern Ne- braska ’ Winona, Minn., reported a tempera- ture of 105, and Aberdeen, S. Dak., 104; Bismarck, N. Dak., 90. Humidity Adds Discomfort. There was one heat death in Minne- apolis; one in lowa; and two each in Indiana and Michigan. Two others drowned in Michigan. Detroit, with 98, suffered the hottest June 27 on record | Pittsburgh had high humidity, temper- atures of 90 and two drownings. Cleve- land 1eports told of a new record tem- perature for a June 27 of 89 at 8 pm.. last night and of damage to Northern Ohio crops from lack of rain. In New York the temperature was not high, but excessive humidity made 1 life_ uncomfortable. Baltimore saw & drop of 10 degrees from 84 to 74, following an electrical storm. Boit Kills Woman. A thunderstorm which killed one woman and injured another late yes- terday, did not bring any relief from the high temperatures with which June has paid her annual visit to Washington, and only served to heighten the humidity The forecast from the Weather Bu- Pecora pointed out the chief ex-/ ports of Chile were nitrates and copper. He asked if Kuhn, Loeb had studied | the nitrate situation. “We relled on the export business! jof Chile, part of which was nitrate,” the witness replied. l No Specific Study. | “We made no specific study of the nitrate situation.” Pecora said Kahn had testified the American investing public relied on the reputation of an issuing house, and |added he was trying to find out how {much of & study the firm had made. Asked by Chaliman Fletcher if the firm had made any study of the po- {liti.al situation in Chile, Buttenwleser | replied its legal advisor in the country had advised that the government guar- | antee was valid : | " Fletcher asked if a revolution was | | not impending at the time of the first | loan. “It was a liberal movement rather than a revoution” Buttenwieser said. A memorandum from Kuhn, Loeb | fles then was read by Pecora saying | 2 military council which had seized | | control of Chile in September. 1924, | was_overthrown in January, 1925, by another council which arranged for an | election the following July of delegates to draw up a new constitution. 25 years for Kenneth. The reasons for the petition included: Because the verdict was against the law as given to the jury by the court; Because the jury did not fully under- stand the instruction of the court when it returned for a further instruction the third time; Because the court admitted in evi- dence, over the objections and excep- tions of the defendant, an alleged con- fession, and because of newly discov- ered evidence. the prospectus or not.” the witness said. He added the prospectus said the bank cculd not have outstanding loans ex- ceeding its first mortgages. Questioning the witness about the terms on which the first $20,000,000 issue was sold to the public, Pecora de- veloped the bankers obtained it for 93 and sold it for 973%. Buttenwieser said there was an inter- est gain of one-quarter of 1 per cent, 50 the bankers had a total spread, or com- mission, of 4% per cent. ‘The originators, Buttenwieser said, were the Guaranty Co. snd Kuhn, Loeb, each 45 per cent, and Lehman Bros., 10 per cent. The originators formed a syndicate the bonds for 94!, inators a spread of 114, because one-half Paris for finding the business. Profit of $250,000. This left a total profit of $250,000 to the originator, out of which expenses were paid. ‘The originators then formed a sell- ing group_ which obtained the bonds for 96 and sold them to the public for 97% Kuhn, Loeb managed both the syndi- cate and the selling group, Butten- wieser said “Why was it necessary to organize so many intermediate groups, each taking a profit?” Pecora asked. Buttenwieser said the risk was larger then the original group wanted to carry. “It is very analogous to an insurance company that spreads its risk,” added. “We wanted to diversify the risk.” Buttenwieser's testimony disclosed | that it has been inadvisable to go ahead | tional schcol in Southeast Washington. | $300.000: for plans for a Manor Park \’rfl“ar ?undunoo}i‘uo.oog": hl?l :chot;: or colored pupils at Twenty-fourt L |street and Benning road northeast, “It will be recalled that largely due $1400,000; additional class rooms for to the wishes of Congress, tne District Roosevelt High School. $125,000, and | purchased four city blocks opposite the |repairs and improvements to play- Federal triangle. near the Capitol lgrounds and school grounds, $300,000. | grounds (for this project). At the| Replacement of obsolete heatin; same time, the Government housing plants in a number of school buildings, project, in the triangle area. involved a grant of $120,000. Funds available what amounts to forced eviction of the for such a program are so meager that District Government from the present progress has been very slow, the Com- District Building. The location of the missioners said. site and the great area purchased | New Petworth Library. called for the construction of & very| .. oo iy . | with the construction with District | funds. large building to house the municipal | aciritin i Tha ‘quality of this mm&. Georgia and Iowa avenues and Uushur | 18 determined by the very high quality structures being erected by the Federal Government itself on the triangle op-| | street, forming part of the campus of | Roosevelt High School, $125,000. Enlargement of the Central Public posite this locality. | Library Building, which would practi- % L'll‘h‘; enforced project, the nature or*i'}.‘.,’m;‘:“"" the size of this building, . every sense due to Federal de- | pipaid 1»61:‘- and aspirations playing upon the ]‘m:n;e;eg; e%lon;o house on Rhode m“nc government. For these reasons, ‘The foliowins niprovemants for Na- grnm to carry forward this project. | which at least is Federal to the extent | of the grant requested, is therefore | highly justified.” | e second item in Group 2, for | which the District lacks finances of its own, is a small mammal house for the { | of 300 or 400 retal houses, which lm._,%ooo, for which a Federal grant of $200,- | issioners s: asked. Plans could be com- | Buttenwieser said this gave the orig- | pleted and the work started within |local and in the manufacturing fleld,” |three months. The Commissioners of 1 per cent went to Louis Dreyfus of | pointed out the Zoo is operated under | Provide local employment for more than direction of the Smithsonian Institu- | tion, but is maintained out of District revenues. Other Projects. Other projects listed in the second | | group follow: ! A branch lbrary building in the, Georgetown section, for which a grant | |of $175,000 is asked. The site already has been graded and work could be | started in three months. The Commis- | sioners said this building would supply : a very urgent need for the large section | it would serve. A new District morgue, for which & grant of $105,000 is asked. The Com- missioners said this structure, “badly needed for some time,” would be lo- c:tt‘d near Gallinger Municipal Hos- pital, Additions to the Alice Deal. the Eliot and the Brown Junior High Schools, at a cost of $155000 each. These addi- | | Nort! | $853,000, w! tional Zoological Park: Completi the bird e e house, house, $200,007; & new monkey , $250.000, and a new elephant "M foiloving ollow] sewer projects total $1.719,500 in cost and which the Oou:l‘- ‘would provide “the vital element of relief of unemployment, both it being estimated these projects would 1,000 men over & period of one year. Sewer Exiension, heast boundary sewer extension, hich would eliminate a de- cided nuisance of pollution at Kingman Lake: Anacostia main interceptor ex-| tension, $231,000, to intercept crude sewage now discharged into hte Ana- costia River, and also to provide an outlet for sewage coming from the Bladensburg area; Piney Branch relief sewer, $400,000, needed to prevent floods during heavy rainstorms at Fifth and Ingrham streets and to prevent sewer overcharging and surface flooding at that point and at Seventh and Hamil- ton streets and at Arkansas avenue and Delafield place, which has caused severe property damage over a period of years. Two other sewer items are an out- fall sewer extension which must be ua%emken eventually in connection Wi any pro sewage treatment plant for the mnt, $220,500; and an (Continued From First Page.) 16, 1931, $689.32; September 19, 1932, $43.70, and January 10, 1933, $67205. It 1s cha that on four occasions Stunz gave Grayson the following ficti- tious credits: March 17, 1931, $611.32; July 25, 1931, $575; March 7, 1932, | $625, and January 11, 1933, $650. Agreement Sought. While the indictments were being re- ported, a movement got under foot to | i various trying to salvage what ti the wreck of the Park Sa | | two” committees have been sharply a$ issue. It is known that the Directors Treasury mflm&:!. while tors’ tee been sisting this move. day were Delieve hitherto undisclosd urns q clotad at the meeting. Out of 1 tionnaires returned, it was answered que ., you prefer & new bank?” and 47 an- swered “ves” Lo the question, “Do you prefer a branch bank?"” Meeting Called Tenight. Dr Atkinson has called another meet- munity. the total gross profit to the bankers on tione 'the city heads said. are in ac- reau reads “continued unsettled (which, the $20.000.000 issue now in default Was ' cord with approved plans for extension life can be maintained, nor to fix mini- | were 50 per cent below normal. There Loan Would Be Recognized. e mark Steonie | cont is was explained. means more thunder- | A petition has been started, Dr. At- $15,000. to be used to in TAW Sew- almost $1.000,000. mum wages upon that basis. | has been more buying power since Can't Buy Other Goods, | March and we are now in the hot sea- | son—tire verywl “We call attention to one more point.? e e T hers: &1 America has a vast range of industries the products of which will be entirely | shut away from these workers at the proposed minimum. These other indus- tries presently will present codes of fair practice. Their codes wili be *.cdicated upon the ability of other workers to pur- chase their output.” { McMahon contended the 40-hour week would not bring about re-employ- ment of all those normally engaged in the industry. and that such & schedule was inconsistent with the Government's public works program wherein 30 hours was fixed as a_maximum The United Textile Workers do not accept the $14 minimum wage as & permanent minimum and their leader | served notice “of our intention to ap- pear and plead for establishment of a new and higher figure as soon as we believe conditions in the industry war- rant us in making such a plea.” { Challenges Statistics. ! McMahon challenged statistics given ! by manufacturers yesterday to show 100.000 workers would be re-employed | under the 40-hour clause | “Figures of the Department of Labor indicate. contrary to the figures here- tofore submitted. that the number of | workers at present employed in the in- | dustry is approximately 347.000 said “Proponents of the suggested code | state ,that the adoption of a 40-hour | weekly schedule will permit the absorp- | tion of all those normally engaged in | the industry ! “This we contend o be inaccurate | for the reason that the United States | census figures show that during the| period from 1923 to 1928 inclusive. ap- proximately 450000 persons were en- | gaged in the industry. Shorter Week Urged. “This being true, then we contend that the adoption of a 35-hour sched- | ule will more rly vermit the re- employment of the approximately 100,- 000 unemployed It been testified that the textile industry is peculiar in that it offers work for the entire family. father, mother, son and daughter, and five workers to & family is not uncommon “That, we submit, does not argue for | the attractiveness of the industry to workers, but proves on the contrary the abject failure of the industry to permit the husband and father to earn a de- cent wage upon Which an American famiiy can be properly raised. educated and sent on its way into the future.” Green Appears Later. i | he | When McMahon concluded, Deputy | Administrator Allen said: “Mr. McMahon I must confess I am somewhat flabbergasted. “Perhaps this is not the time to dis- | cuss it, but I feel it is only fair and is herd to supply the and “We are for this textile code and want to pu* nothing in its way, but we want to leave the door open for us to make sugge:tions. The smaller man- ufacturer represents 30 per cent of the volume of output and is the customer of independent mills. It s unfair to put our mills on a 40-hour basis and leave & 44-hour basis for the big four. We're gskln' equal opportunity with the big our. “If this code is put out with 144 hours for the big four with their own fabric mills and 40 hours for the smaller man- ufacturer it will mean a 25 cent han- dicap a tire and will force the small in- dependents to operate our own mills.” Also Asks Exemption. Sylvan Gotshal, appearing as spokes- | man for the National Upholstery and Drapery Textile. Association asked ex- emption for that group from the cotton | code, contending its problems were en- tirely different from those of the cot- ton industry. The association. he said. represented 200 mills doing an annual business of $100.000.000. He said the association felt it should be a group by itself and that a code already had been drafted which | wouid be presented soc E. J. McMillan, president of the Americaz, Knitwear Association, which he said comprised 1.000 underwear man- ufacturers. also urged postponement of the eflective date of the cotton textile cod=. “We're preparing a code of our own McMillan said “We want the effective date delayed and we suggest the middle of August.” WILEY POST .PREPARES Lands at Wright Field, Dayton, to Install Additional Equip- ment. DAYTON. Ohio, June 28 (#) --Wiley Post landed at Wright Field here last | night in his airplare, the Winnie Mae, |in which he plans to make a solo flight around the world. Post. who left ‘Floyd Bennett Field at New York yesterday afternoon, came | here to have Army specialists install addtional equipment in his ship. but neither he nor officers at the field would reveal what the apparatus was. It was reported, however. that the | equipment would compass of special design Two vears ago, Post and Harold Gat- ty used the same plane to establish the present world girdling record. proper to call attention to the fact that you hayve acted as my advisor. o‘y you are calling my attention Post said he would stay here two or Field after his plane is equipped. include a wireless three days, returning to Floyd Bennett | showers, frem time to time); not much | change in temperature. ™ The woman killed by lightning yes- terday was Mrs. Lily Harley, 41, col- | ored, 1818 Gainesville street southeast, | who was attempting to close a window | at her home when struck. Her daugh- | | ter, Bernice Harley, was injured | slightly and was treated at Providence | Hospital. Damage to the house was | slight. Downpour in Anacostia. While cnly .07 of #n inch of rain was | recorded at the Weather Bureau, a! heavy downpour fell in Anacostia and in Alexandria. washing out dirt roads south and southeast of the city in many | instances. In several sections in the | Good Hope Hill area concrete pavement | buckled, and scores of trees in the southeast were damaged A bolt of lightning blew a switch from | the wall of a “weighing house” of the Potomac Electric Power Co. about & quarter of a mile from their Benning plant, but caused no damage to the plant itself nor interruption of service A drop of only 9 degrees was recorded as a result of the storm—from the day's high of 85 to 76. recorded at 8 p.m. Last night’s minimum was 71 At 10 am the mercury had climbed back to 79, and was heading upward. with a relative humidity of 86, which, Weather Bureau scientists pointed out, is extremely high for such = high temperature. CHARITY REC.IPIENTS MAY GET HALF OF PUBLIC WORKS J0BS' (Continued Fyom First Page.) attitude in relation to local subdivisions as this office will have in making appro- priations to your State. Surely the whole intent of the President’s state- ment wa: to insist upon reasonable local appropriations for unemplovment relief. If in the judgment of your Unemployment Commission, cities and counties are not doing their fair share | it is quite proper for you to hold up part or all of the funds which would otherwise be allotted them. There is certainly no reason whatever why cities and counties which can well afford to finance relief work should be financed on a 100 per cent basis by your or- ganization. Indeed. if we feel that you | are giving funds In excessive amounts to local communities, we shall have no | hesitancy whatever in taking this mat- ter up with you. Your action in these | matters will undoubtedly control fu- ture appropriations to Minnesota. My own experience has been that the most satisfactory way to get local money into the picture is to pay the {local community a certain percentage of | the total relief expenditures. I would | urge, should the matter come to an | tssue, that the State make a reasonable | offer to the local community.” | any reason why the public should not Saying_the loan was made in June before the election. Pecora asked if | | there was any way of determining the loan would be recognized by the new government. Buttenweiser said Kuhn, Loeb's Chi- lean counsel advised the firm that un- | der principles of international law such a loan would be recognized by the sub- sequent government He added the loan was recognized and principal and interest payments | were made until the default of six years later. “Doesn’t it appear” Pecora asked, “that you advised like the lawyer ad- vised the man in jail, that the govern-; ment cculd not put him there, but he said ‘Here I am in jail’ " “I do not see the analogy,’ welser said. Never As Pecora " Butten- Questioned Bonds. pursued the questioning, Buttenwieser repeated over and over that no one had ever questioned the validity of the bonds “Didn't you give some consideration to the practical ability to meet the ob- ligation apart from the legal validity?” Pecora asked. “We got the best advice we could on the legal side and the best advice we could on the economy side,” Butten- wieser replied “Did_you know whether the budget | was balanced?” “I don't think it was. I don't know buy bonds because the government has not_balanced its budget “We should not stop buying our own Government bonds just because of a deficit.” = Buttenwieser then admitted the Chilean unbalanced budget was not mentioned in prospectuses for the bonds. but insisted the trade figures were more important. Trade Balance Factor. “What bearing does the trade bal- ance have on the ability of a govern- | ment to meet its obligations? Pecora asked. “It enables & government to iraise money on its home market to meet its obligations,” Buttenwieser replied. Senator Barkley, Democrat, of Ken- tucky, observed the trade balance had little bearing on the ability of a gov- ernment to meet its external debts. pointing out the American Government was a heavy borrower abroad more than 20 years ago while it had an un- favorable trade balance and never de- faulted Buttenwieser pointed out Kuhn, Loeb | of public schools. Washington aqueduct; a project to and the Guaranty company were the .,nvert from coal burning to oil burning “wholesalers” who sold the bonds through intermediaries or selling groups. On June 25, he added. leiters were sent out to the underwriters to the risk with us.” Underwriters Shared Risk. “The underwriters shared the risk, but didn't part with a dollar?” Pecora “Yes Buttenwieser replied, After signing the contract on June 25, Buttenwieser said, the selling group group committed themselves they had definite commitments from members of the selling group?” Pecora asked. “You had succeeded in passing on the risk in 24 hours.” money.” ‘When did you get the remittance?” “July 15. That is when the distribu- tors paid us.” “What were the profits to Kuhn, Loeb?” “Qur profit was $111.207." “Was the $111,207 net or gross?” Pe- cora asked. “It was net, but doesn’t include our overhead.” the banker replied. He added the guaranty company had obtained a similar profit and Lehman a 10 per cent share. Bonds Now in Default. During sharp cross examination of Buttenwieser. the banker said the Mort- gage Bank of Chile had been indorsed by the Commerce Department in 1925, the year the first bonds were issued. A total of $90,000,000 of the bank's bonds floated in this country sre now in_default. Pecora asked Buttenweiser about the period usually fixed by underwriters as a selling period for bond issues. Buttenweiser said in the case of the Chilean bonds it was 60 days and dur- ing that time the selling group in effect took a short position. Pecora read a letter in which the selling group agreed not to offer the bonds for the period at less than the agreed upon price. “Do the prices depreciate as a general cora_asked. “Not as a general thing” Butten- wieser replied. explaining it depended upon market conditions. Pecora developed that during the 60- day life of the selling group the bonds Pecora asked if the Chilean Mort- gage Bank made loans on second as well as first mortgages &nd Butten- wies replied if it did it did not issue bonds against them. “Was the American investing public ever informed that the bank made | loans on second mortgages?” “I don't think they made many loans ' of that kind." Buttenwieser said. Pecora sald that was not the point and insisted on an answer. “I don’t know whether that went into ranged from 97% to 97'z. “Call it what you will, pegging, sup- porting or anything else,” Pecora said, “did not the operation result in keeping the price in the market at the offering price at 977 or a little above that?” “That was the actual result.” Butten- wieser replied, “but we people who bought at that price.” Pecora then brought out that during the time the underwriters supported the market the selling group had dis- posed of all the bonds to the public. “That is correct but we didn’t have rule at the end of such a period?” Pe- | e not the | the boller plan at McMillan filtration plant pumping station and to replace the direct current generators with alter- | nating current generators, for which a | grant of $82,000 is asked. This project | would save operating costs, the Commis: sloners said, and work could be started in 10 days. | Purther work in reclamation of Ana. | costia River Flats, for which a grant of $360,000 is asked. Work could be starte In 10 days. This is a part of an author- | to the local financial conditions. ‘The projects listed in group 2 would have a total cost of $5,987,000. ‘The Commissioners placed in group 3 other projects deemed worthy of con- | sideration. for which sites have been obtained, but for which plans and speci- | cations as yet have not been prepared. | The cost of projects in this list was | estimated at $15,814,500. New District Jail. | | | | | age discharging directly into the Upper Potomac River. This work could be started within six months and com- pleted within three months thereafter. EMBARGO TALK HELD WITH SIR JOHN SIMON Litvinoff, Soviet Commissar, Con- fers With British Foreign Secretary. By the Associated Press. LONDON, June 28.—Maxim Litvinoff, Soviet Russian commissar for foreign af- fairs, confeired with Foreign Secretary Sir John Simon more than an hour to- day concerning the British embargo on Soviet goods and the release of British Projects listed in group 3 were: A new District jail, for which a grant of $1,200,000 is asked. The Commis- | sioners said the old jail is inadequate in | type and capacity and that the new building would “humanize” conditions in this building. | Completion of construction of the “walled group” and other work, includ: | ing water supply, workhouse and re- | | formatory at the penal institution, Lor- | ton, Va., for which & $600,000 grant is | asked. The Commissioners said this in- stitution is now crowded and that its | general utilities were deficent and that | the requested work must be done in the | more or less near future. A new ward building for Gallinger Municipal Hospital, to cost $800.000, | and a combined heating plant for this hospital and the District Jail, to cost | $200,000. The Commissioners said this | institution is especally crowded at this time and that the new we:d building is pressingly nceded uncer present eco- nomic conditions. Even when economic conditions improve, the natural growth | of the city and other conditions would ! make this building necessary. An adult tubercuiosis sanitarium, to cost $1,000,000. The Commissioners said the present adult tuberculosis in- stitution, now in Washington, would be removed to the new tuberculosis-sani- tarium for children, now being devel- oped at Buena Vista, Md. Such a new building for adults would accommode‘c the very heavily increased demands ot the present building, now insufficient in | capacity, and which has a long waiting | list, the Commissioners said. A new | building for the Industrial Home School, to cost $600,000. The site of the present institution, located near Ob-! engineers convicted in Moscow of sabot- age and bribery last April. Col. D. J. Colville, secretary for over- seas trade, was present, as he was at the previous meeting of the two foreign ministers. “The conversations opened on Mon- day last are being carried on,” said a communique, “and it is intended to have another meeting this week.” P e ] FORMER SENATE WORKER POISONED AND SLASHED Police Say John Cochran Perkins Attempted Life While Despond- ent Over Loss of Job. Despondent because he lost his job when the Senate was organized by the | Democrats in March, John Cochran Perkins, 62-year-old former enrolling clerk in the upper house of Congress, was in a serious condition in Casualty Hospital this afternoon after police said he attempted to take his own life at his home, in the 500 block of B street northeast. Perkins was employed in the Senate until about March 15, and had been unable to obtain a position since that time. An attache of the Senate said that he had been employed there for more than five years. Perkins was treated at Casualty for poisoning and cuts about both sides of the neck, which, according to police, were inflicted by a un&ht-ed‘e Tazor. He was found in the bath room, on the servatory Circle, on Wisconsin avenue, | second floor of his home, shortly before is desired by the Office of Public Build- 'noon by his wife, Mrs, Lillan Perkins. ings r:ld P|zlbllc'r:lrh, and hyb tl:‘;l Nl"z Doctors who examined him at the hos- Department. e present bullding pital said he had lost & large amount inadequate, the Cammisisoners added, of blood. . kinson said, to apply to the controller of the eurrency for a receivership. Many signers ajready have been ob- tained for this petition, he explained. The meeting last night was in favor of the proposal for a receivership in the hands of the Treasury, but it is un- derstood the group would be strongly opposed to placing the affairs of the Park Bavings Bank in the hands of & so-called “professional recelver,” to be appointed by the court. A committee of stockholders was ap- | pointed last night to co-operate with the Directors’ Committee and with an- other committee headed by Frank J. Sobotka. These three ittees will meet tonight to study the situation. The Stockholders’ Committee consists of Eugene Casey, Mrs. Mattie Cox, Harry W. Keefe, C. M. Nash and Elmer Roberts. COBLENTZ ACQUITTED BY FREDERICK COURT Opinion Handed Down Today Cites Lack of Evidence He Knew of Imsolvency. Spectal Dispatch to The Star. FREDERICK, Md., June 328.—State Senator Emory L. Coblentz, former president of the Central Trust Co., was exonerated today of charges of accept- ing a deposit in the bank when he knew it was insolvent. The decision handed | down by Chief Judge Hammond Urner |of the PFrederick County Circuit Court declared that there was no direct evi- dence Coblentz knew of any insolvency. The bank was closed in September, 1931, as a protection against with- drawals and not because of insolvency, the opinion declared, and added that the presumption of Coblentz’s innocence Somal proht Tor himsslf at-the. evposse sonal p lor s of the bank. { MRS. CARUSO TO WED Widow of Singer Will Marry Dr. Charles Adams Holder. PARIS, June 28 (#).—Dorothy Ben- jamin Caruso, widow of Enrico Caruso, |and Dr. Charles Adams Holder plan to be married in a civil ceremony July 5. There will be no church ceremony. | Their banns were Dr, Holder is & former met three months ago. daughter and two sons.