Evening Star Newspaper, June 30, 1933, Page 5

THE | LUTHERANS PLACE EVENING STAR. WASHINGTON, DISMISSED ATTACHES DECLARE THEY ARE VICTIMS OF POLITICS (Continued From First Page.) D. COMPROMISE MADE ON TEXTILE WAGES AFTER CONFERENCE (Continued From First Page.) (8 S¥r S summoned back to Washington to dis- | he understood there were four basic in- ‘ leads to monopoly, it is going to be cuss the matter in & determined effort | dustries ready to come in with codes, | stopped,” he said. _ymo',',"d aceord before meeting vmh’b\n declined to name them on the| “If we see even 50 much as & ten- nson. ir | hnson. promise that they should make their |dency leaning toward monopoly or ex- ch,fl‘,’,";’:”“,f,"",‘lflfi"°',n‘,:‘:u,,‘c';‘:,‘,’:f,z’cwn announcements. It Is known that |tortion, we have a mandate under th- that the hearing would not close be- | lumber, oil, coal and steel are working |law to step in.” fore noon, Saturday. Johnson said it | toward agreements. | Replying vigorously to a question 7 FRIDAY, JUNE 30, 1933. — KURN, LOEB ASSETS) Page Ancient Aesop! Tortoise Wins Race From Erratic Hare By the Aszociated Press. CUT ALMIST HALF Balance Sheet for 1932 Given Senate Probers Shows Big Reduction. __(Continued From First Page) the Pennroad Railroad issue would have been too burdensome a charge on the corporation “Then the financial advice you gave simply boiled down to issue common stock instead of bonds or preferred stock Pecora asked. “No.” Kahn replied. “We told them not to have an underwriting, but to go ahead and take a chance and we were sure they would not get stuck.” Kahn displayed wide knowledge of details of the Pennroad organization in describing_the negotiations between his firm and Pennsylvania officials. Desirability of Expanding. He said it was emphasized in prelim- in discussions the desirability of ex- panding the Pennsylvania system and making sure strategic lines did not “fall into hands that would damage the in- terests of the Pennsylvania.” Pecora asked if there was discussion of avoiding regulation by the Interstate Commerce Commission. “I could not say.” Kahn replied, add- ing that result undoubtedly was accom- plished Kahn said the only road he remem- bered being mentioned as a_desirable irchase was the Detroit, Toledo & x which the corperation later | bought from Henry Ford. Moral Responsibility. Pecora asked if Kuhn, Loeb. when called upon for advice. would not have preferred to know what use was to be made of the money raised by the Penn- road Corporation. “If there was a moral responsibility for us, yes,” Kahn replied. adding, “we wanted our name left out and the stockholders of the Pennsylvania Rail- road to determine themselves whether they wanted to exchange equities for equitics.” quked why the Pennsylvania could not have acquired the same railroads as it did under the Pennroad Corpora- tion through its subsidiary, the Penn- sylvania Co., Kahn said the road was unwilling to part with any of its stocks held by that company and “we advised them against issuing any bonds involv. ine a fixed charge.” Pecora referred to the acquisition by the Pennsylvania Co. of the Wabash and Lehigh Valley, recently upheld by Foderal Circuit Court, despite the claim he Interstate Commerce Commission that it violated the Clayton act. Shouldn’t Have Been Burdened. Kahn said the “mere fact that they e bought made it necessary th; Pennsylvania Co. should not have been | burcened further.” Chairman Fletcher asked if the Penn- road Corporation was not formed to “escape the sort of objection” made by the Interstate Commerce Commission | to purchase of other lines. “You may be entirely right in these motives, but I don’t know whether these motives existed,” Kahn said, adding. | “We wouldn't consent to it (organizing | the Pennroad) if it involved a flxed‘ charge” | If the Pennsylvania came to us and | suggested the Pennroad issue bonds to the public, we would have said, ‘We! are sorry, but we can not consent to do that and our advice would be as it was.” Profit on Transaction. Pecora asked for the total profits of the banking firm in connection with | ")l $26.596,701,648 since the 1923 year. | nary expenditures of the Government, | BALTIMORE, June 30.—The ’ newspapers today were hailing as a contribution to scientific re- search the corroboration given Aesop at Johns Hopkins Hospital yesterday. Following the annual turtle race on the hospital grounds. the winner, Panic II, was Dpitted against & hare, described as being from the Whitney stables. True to the Aesop fable, the tortoise plugged slong and. ac- companied by shouts from the gathered throng. crossed the fin- ish line well ahead of the erratic rabbit. Panic won the right to race in this feature event by defeating Fragments, from the orthopedics stable, and Blessed Event. a last- minute entry from the obstetrics paddock. Fragments appeared to have the race in the bag. but as photographers rushed to the side- lines to snap his picture he stop- ped to pose, permitting Panic to win. FEOERAL DEFIT 5 SRR Amount Shows Reduction Under Figures for Pre- vious Fiscal Year. Ry the Associated Press. The Government spent approximately | $1.760,353,305 more than it collected in the fiscal year which ended today. There was slight comfort, perhaps, in the fact that the deficit was smaller than that shown for the 12 months which ended a year ago. : It had reached then the formidable total of $2,885,000,000, but the $1.760,- 353,305 shown today overshadowed the | deficit two years ago, which was| $903,000,000. | For all the talk of budget balancing, | speeches without number on the sub- Ject and additional taxes, the Treasury outgo has exceeded income for three ' consecutive fiscal years. ' Total Public Debt. In that period the public debt has | mounted to approximately $22,000.000,- 000, the nearest approach to the peak The high point was August 31. 1919. It compared to a pre-war debt on March | 31, 1917, of $1,282,044,346, or less than | the deficit for the present year. | The Government. however, is hopeful that it will finally bring its budget into ilne before next June 30. | While this may be done with the ordi- | many activities included in the Presi- | dent’s program will be financed by bond issues and the prospect is that the pub- | lic debt will be increased by another $3.000,000.000 if all the appropriations | authorized by Congress are spent during the 12 months. ! Amounts Collected. During the last year the Government | collected from all sources $2.068,294.508, | and spent $3,828,647,813. The general | fund receipts were greater than a year 2g0. due to the new taxes levied in the billion dollar tax bill that went into effect in June, 1932. The Reconstruc- the Pennroad Corporation. Kahn said the only fee s $1.512.- 500 for underwriting a second issue of | #tock in the corporation late in 1929. | In addition, he said, a profit of ! $2701,000 was made from options given | to it on the first issue. He explained | the option was exercised on only the first two of the four blocks. Kuhn, Loeb made $797.000 from sale of its block of stock in the first issue, Kahn added and it made $391,000 from managing the syndicate which sold the issue. Pecora called attention to & later un- | derwriting profit of $69,900, and said: | your total compensation from | to December, 1929, was nearly and one-half millions?” “Yes,” Kahn agreed. Received Commission. Pecora brought out that Kuhn. Loeb received $327.397 commission in the ac- quisition by the Pennroad Corporation of the Canton Co. and “roughly” $40.. 000 in acquisition of stock in the New York. New Haven & Hartford. H “So you realized profits of about £5.840,000 altogether>” Pecora asked. “That is approximately correct,” Kahn i gaid Saying Pennroad got $133,000,000 for | its stocks. Pecora asked if the loss to ! investors was not “a little over $100,-! ©00.000.” | “T don't believe that is quite correct,” | Kahn replied. ! “A great many investors did sell! when stocks were higher. There would be such loss if all investors held their stock to the present day.” Pecora developed testimony that Kuhn, Loeb exercised options only on the first two blocks of 125,000 Pennroad corporation shares, the first glock be- ing purchased at $16 a share when! the market price was $28.75 and the second at $17 when the market was | not_expected to be changed materially | by them. tion Finance Corporation also loaned or disbursed $1,285 in the past year. Income taxes dropped below $1,000.- 000,000 for the first time since war days | in the year ending today. They amounted to $744,144,328, as compared with $1,055,812.272 the year before. Miscellaneous internal revenue, swelled by taxes in the billion dollar bill, rose to $850,449,564, as compared with $499,- 408,399 the previous year. The returns from this source, however, were less than had been estimated by the Treas- ury. Custom duties also dropped off, amounting to $248,295,766, compared with $326,427,350 the previous year. While the final reports for the last two days of the month have not yet reached the Treasury, the results are SLIM’S “RESURRECTION” | SCHEDULED FOR TONIGHT Man Who Has Been in Grave Here for 62 Days Will Emerge From Ground. A little drama, which might be called “Up from the Tomb. or Sixty Days Later,” will be unfolded tonight with few ceremonies except the grinding of movie cameras, the glare of arc lights, and. no doubt, the cheers of the as- | sembled throng. It seems that R. L. “Slim” Jones, than whom no man, woman or child has ever been buried in a grave for a longer | period, has selected 8 o'clock tonight | as the time for his coming to earth, | {fnnissmce, reappearance or resurrec- on. H “Slim's” grave, on Bladensburg road | rear the Peace Cross, is no ordinary BUDGET AT $30,000 home.” one agent stated, “but in return they lost millions for American business for the treatment accorded us. Our Eu- absolute limit to which industry can | g0 without incurring dangerous hard- | ships.” may adjourn immediately unless devel- opments warrant further discussion. While the cotton textile code was | does not come forward within 60 di brought near its final stages, it devel- | that if the greater s | Sreater bortion of 1ndusty | monapoly begins, Johnson said: In reply to a question, Johnson said with codes, “this industrial a<ministra- | to where extortion and price-fixing a* | “I can't sit here and fell you wt 'MRS. MILLER HEADS i Elected Department Commander of Board of Education Decides| to Reduce Seminaries Un- der Merger Program. ropean friends said they would remem- ber the deal given us.” Col. Cooper Restrains Comment. Col. Willilam L. Cooper, in charge of the London office, was among the group. He used tc be director of the Foreign and Domestic Commerce Bureau prior to going abroad. Col. Cooper was named spokesman for the self-styled refugees yesterday when the Washington arrived in New York. Here he said that he deemed it wise for “the boys” to refrain from talking too much until they are sure they have lost their jobs. He stressed the fact that individual members of the party con- sidered it likely that a few would be placed in Government jobs in this country and they did not wish to jeopardize “this slender chance by talk- ing out of school.” The men said they received orders on June 14 to submit their resignation and sail immediately for this country, arriv- ing bere by July 1. At the same time they were told that the liner Washing- ton was sailing from Havre on June 22 and they said they were advised to catch that ship. The 31 who returned today are only one-third of the total who have been ordered to resign and return home on the first available vessel. Others to Follow. From all sections of the world agents will be arriving here within the next few days to submit their resignations. Of the total of 168 agents, only 68 have been assured they would keep theiz jobs. Secretary Roper said today that in- quiries reaching the department indi- cate there is an impression in some quarters that members of the forzign staff were not given advance notice of dismissals. “As a matter of fact. all of those being recalled will be paid full salaries up to and including July 31.” he said “The Government at least might have had the courtesy to let these career men of 10 or 15 years' service, quit, without firing them on such brief no- tice.” said the wife of one of the vet- eran attaches I don't care who knows it, thc Government treated their ex- perts in a way that we not only couldn't, but wouldn't, treat our foreign servants We had to pay them three months’ salary before we could leave. It was only just that we did so.” One official, it was stated. had to pav $1,000 to his landlord in order to break a five-year lease. He had to borrow money from friends on the ship in order to tip the stewards. In the returning group were four Washingtonians—Alma H. Cramer. as- sistant trade commissioner at Madrid: . C. Prick, assistant trade commis- sioner at Brussels; John T. Harding, assistant trade commissioner at Berne, ! and Paul Malone, trade commissioner at Paris. A budget of $80,000 for the ensuing fiscal year was decided upon today by | the Board of Education of the United Lutheran Church in America, meeting in _the Burlington Hotel. | The figure is the same as that of the | year now closing. but rcpresents a re- | duction of $20,000 frcm the expenditure | in the previous year. | Decision on the budget followed a | conference on the proposal to reduce | the number of Luthefan seminaries in the country through mergers. Through its executive secretary, Gould Wickey, | former president of Carthage (Ill.) Col- lege and one time pastor of the George- | town Lutheran Church here, the board will conduct other conferences on the merger proposal and make a general survey of the subject. Subject to the approval of the synods, the following mergers are contemplated: Southern Seminary at Columbia, S. to be continued. developed and su ported by Virginia, North Carolina, South Carolina, Georgia, Alabama, | Florida and Mississippi synods. Hartwick Seminary at Brooklyn, Getiysburg Seminary at Gettysburg and Philadelphia Seminary at Philadelphia, to be merged and supported by minis- | terium of Pennsylvania, United New York, East Pennsylvania, Slovak-Zion, West Pennsylvania, Susquehanna, Alle- | ghany, Pittsburgh, Maryland and West | Virginia synods. ~Susquehanna Semi- | nary, Selinsgrove, Pa., had been in- | cluded in this group, but suspended ac- tivities on June 1. Hamma Divinity Seminary, Spring- field, Ohio. and Chicago Seminary, | Maywood, Ill, to be merged and sup- ported by Ohio. Indiana. Michigan, | Dlinois and Wartburg synods. ‘Western Seminary, Freemont, Nebr.; Martin Luther Seminary, Lincoln, Nebr., | and Northwestern Seminary, Minneapo- lis, to be merged and supported by Northwest Nebraska, German-Nebraska, | Rocky Mountain, Kansas, Texas and | Towa synods. | The board's meeting probably will | close tonight. V. F. W. AUXILIARY Newly Chartered Ladies’ Organization. S 'BANKS DRAFT PLAN somar siret It might was icced de_ FOR SAVING PARLEY DESPITE GOLD CRISIS partment president of the recently | chartered District of Cilumbia Depart- | ment of the Ladies’ | Auxiliary to _the| e Veterans of For- (Continued From First Page.) eign Wars. The = S % election was held at Pythian Tem- ple. under chair- are meeting. The Steering Committee | is meeting. The gold bloc is meeting. | Verious groups are meeting. Rumors manship of Con- are skyrocketing and vanishing in all | suelo De Coe of direciions. i Sacramento, Calif., | What is apparently going to be pro- | national president. posed to the United States is a declara- Other (fficers tion embodying three points: (1) the chosen last night | desirability of maintsining the gold included Roberta | standard in the countries which still Fawcett, senior have it; (2) the desirability of early vice president; | measures for speedy general stabliza- Katherine Lawson, | tion, and (3) the desirability of imme- junior’ vice presi- diate co.operation among the central dent: Adelaide] banks to limit or check speculative fluc- Grant, treasurer: | tuation of the exchanges. Maybe— i Fase Luflbkterk ‘b'ut maybe not. chaplain; Florence Morris, ccnductress, nd Mary Dove, guard, Dorothy Lodge _ Orgy of Speculation. was appointed chief cf staff by the new | _Disgruntied opinion rapidly spreading president, Mary Guillermain was ap- | through the conference thus far has pointed historian and Lee Volkman was | done vastly more harm than good. Re- made secretary. | sentment is rising against the leaders The election meeting was attended | Who called it without a clear idea of by delegates from the seven local aux- | éither what they could do or the conse- iliaries of the Veterans of Foreign | quences of their debates on the pocket- Wars. Prior to the meeting the local | books of every person in the world. V. F. W. auxiliaries had acted as sep- | _ Such an orgy of speculation and such arate units with a nationally appcint- | fluctuations of basic currency as have ed chief of staff functioning for the |thus far accompanied the conference, District of Columbia. rarely have been seen. A | What has happened here is consid- ered to endanger the domestic policies of the United States, endanger the gold | standard in several countries and en- FORD LOSES SUIT S | danger Great Britain’s position midway Samuel Baxter Awarded $18,000 between the gold bloc and the fluctu- ating dollar. for Loss of Eye. Buyers and sellers of doliars. of Dutch | guilders, of wheat and of silver all have CHEHALIS, Wash. June 30 (P— | their agents here, watching every move Damages of 81800 (o e o tor ‘of | And reporting every rumor. The world eye were awarded Samuel Baxter of|press throws an inguisitive spotlight on Chehalis. against the Ford Motor CO. every casual handshake. Rumors run LA R %0\;1" Jury, vesterday. | |like rabbits and in passing cause cable- e i ot e s it S o sl arourkdthe SRorlc vt by a rock. In the suit he blamed the (QLdefs 1o Y o7 T SomBLTR motor company because it advertised | the windshield as being non-shatterable. | FLYING ANTS Ford attorney announced the case (Termites) 000.000 D: in Homes would be appealed. NTEED TREATME! SN G ing Unnecessary—Fres Inspecti NAME SIX DIRECTORS Mrs. C. K. Miller. An: Va Terminix Co. of Washington 1102 National Press Bldg. Phone National 3303 Kiwanis International Elects Group | From Field of Nine. = = LOS ANGELES, Jur{; :‘o #).—Six | Saturday Special candidates out of a field of nine were || b, clected to_the Board of Trustees of (| g Prime Roast of Ramb 50c Kiwanis International for two-year || poisie Chicken Dinner. terms at the closing session of ~the ||| FX S T AR George A. Sloan, president of the|oped that neither the national recov- Cotton Textile Institute, commented to ery nor the farm administrations will newspaper men: | approve trade agreements or codes of | “We are standing on the code as it | fair competition until both agencies was submitted. The code as drawn was | have indorsed them. agreed upon only after many hours of | Johnson already has a representative study end discussion, and we have not | in the office of Secretary of Agriculture altered our views.” | Wallace, and vice versa. None the less, many textile men were ' Johnson told newspaper men today REAT SCOT/ TIME FOR mit. HALF - YEARLY 2 ~ : N Cut | ) (o4 “Why run a sale now, when prices are going up”, asks one of our staff. “Save these suits, they'll be worth more in the Fall”. .. Sound advice, that — but decidedly against our fixed policy that “this season’s suvits must be sold this season”. So a SALE it shall be —with a heap of dollars cut off everything (except staples). Even our double-woven Camerons, and new middle-weight tion will heve been a failure.” Referring again to his intention to | damn well what it is.” prevent_undue rises in prices, Johnson | - sald: | codes, but that does not mean we want | prices to remain crystallized. | He added that the idea was to per- | Louisians out of $750.000 every year. : “If there is any | extortion is. but this country knc “We don't want price-fixing in Charity Racketeers Busy. “Fake” charity racketeers swindle the prices to work up naturally. | cording to Scott R. De Kins, Cham price-fixing that |cf Commerce official. IFITISN'T BOND'S SALE OF TROUSER IT STARTS TODAY —with 3 healthy price-culs our two trouser suits up to 25 good round 7% Carolina Worsteds are included. Svits you can wear now —wear all summer—and wear next Fall. Cut 2 - our two No Charge for Alterations trouser suiis up to $30 Here's where the blue pencil has done a vigoreus job! Savings up to $7.15 are nothing to sneeze at, these up-and-up days— particularly apply to the “cream” of our custom- when they grade suits. $29.75. 3 hfile ‘l;d!he !‘:lmnd. It is equipped with day. 1 all modern improvements, including & 4 s i telephone, and his friends who know hey are: (Chatles Mmm%usltfi' ; the number have lightened the tedium 5 Had Gone Short. Plenty of keen new Silver Greys, plaids, and chalk “Had your firm gone short in this stock?” Pecora asked. international convention here yester- ‘ Angeles; Harold C. Hippler, “We had traded in the stock and sold portions of the first 125,000 against the option,” Kahn replied. Pecora then pointed out Kuhn, Loeb realized over $5000,000 profit in six months time. “No one was more surprised than we.” Kahn replied. Turning to the acquisition by the Pennroad of the Pittsburgh & West Virginia, Pecora asked Kahn if he knew n. said he had met Taplin a “few Pccora said he wanted to question Taplin about the acquisition of the Pittsburgh & West Virginia by the Pennroad at $170 a share when the market price was between $110-$141. Pecora inquired into acquisition ¢f the Canton Co. of Baltimore for $596 & share plus cost and commission. Kahn said the sale was effected in July, 1929. and the late Kuhn, Loeb partner, Mortimer Schiff, took the Can- ton owners to the Pennroad to dis- cuss it. Kahn said the Canton stock was owned at the time by the Colgates of Baltimore and it was “unlikely” that it was g listed stock. Produces Client List. ‘Turning suddenly from its investiga- tion of why Kahn did not pay income taxes for the last three years, the com-| mittee yesterday produced s long list of prominent persons and corporations ‘which it was told were invited to share of his spare time by calling him up. Even perfect strangers have called to| have the distinction of having heard the voice from the tomb. ‘Within this grave “Slim” has stayed ! for 62 days. A competitor up in New + Jersey gave up long since, leaving Slim absqlutely undisputed as the champion. This is a_hot Summer. those on the list were not required to Pul up eny money. Kahn agreed this was true in some cases, but said it was “not always” the case. i Just before the hearing recessed for | the day Pecora switched to the forma- |tion of the Pennroad Corporation in 11929 by the Pennsylvania Railroad to protect itself against other roads buy- | ing up properties in its territory. | Pecora said voting trusts instead of stock were sold to the public at $15 a share, that they were now listed at 8!; and the investors had no say in the management of the corporation. Kahn said “voting trusts might be inventions of the devil” and should be eliminated “unless good reason is shown Fla.; C. S. Harley, Seattle; Claude A.| Dock. Detroit; George E. Snell, Billings, | | and Charles D. Donley, Pitts- || Mon! i burgh. why continuity of management should be secured.” BLAMES BANKERS. Chilean Publisher Says American : Financiers Hurt Chile. SANTIAGO, Edwards, banker and publisher Here is a won- derful oppor- Cotiier Ian I AIR-COOLED DINING ROOM 18th & Col. Rd. Has guaranteed Waltham move- ment in & smart stripes for the wise men who get here early! Cut 3 — vur two trouser suits up to 35 Do you admire that expensive “made-for-me” look in a suit of clothes? And has it been just a bit too costly for your pocketbook? Well, hop to it! Here's your chance to indulge —at one whale of a saving. Ten Payment Plan is more convenient than o charge account — because you pay only a little at 7% fi-o_m_ourneul& tunity to obtain a fine national- Iy known watch at a great sav- ing. wew case that will last a lifetime. Metal band to match, FREE with watch. in Kuhn, Loeb & Co. securities in re-| of E| Mercurio, today severely criticized turn for their advice and without put-| American bankers, cyh.mn‘ ’uum with ting up any cash. responsibility for the financial and eco- rles E. Mitchell, Percy A. Rocke-! nomic collapse of Chile. feller, L. F. Loree, Albert H. Wiggin,| In a signed article in his newspaper, F. H. Ecker, president of the Metropoli- | he cited the "declarations of Otto H. tan Life Insurance Co, and members| Kshn before the Senate investigating of the Kuhn, Loeb banking house, which ' committee in Washington ccncerning a time! Use it during this Sale. Pay $5 ot purchase, the balance in ten budget payments| Kahn heads, were on the list. While similar in some respects to the selected client lists of J. P. Morgan & Co., the plan operated differently, Pe- cora said as he placed the list in the record. He said the beneficiarles were asked to participate as a syndicate in one or more of 30 issues and sell them to & retailing group at a higher price. Repors asked if it were not true that I the floating of Chilean securities in the United States. In the period of fantastic abundancy Chile was flooded with offers of money, the banker-editor asserted. He de- clared that Americans floated 80 per cent of Chile's huge external debt and added that the “old international bank- ers had s mdmmt goncept of professional 7 - . Schwartz & Son RIRY 708 ¥th SC N W, # No extra charges of any kind for this service!