Evening Star Newspaper, July 1, 1933, Page 2

A-2 =22 PROBERS 10 TRAE | SOURE OF STORK Frank E. Taplin Called to Ex- plain Sale to Pennroad at Huge Profit. (Continued From First Page) o | Banking House had a number of small special stock issues in which clients were invited to participate at cost. Names of the clients were not revealed. Taplin was asked to appear Thurs- . along with H. H. Lee, president of Penuroad. and A. J. County, vice | president of the Pennsylvania Railroad | and an officer of Pennroad. | The Pennroad's list of preferred buy- | ers, revealed vesterday. contained the names of individuals who, like Kuhn, Toeb and stockholders of the Pennsyl- vania Railroad. were permitted to buy bloc! of Pennroad stock at $15 when the market price was $25 and above. Bought Directly. Among those permitted ‘o buy direct- Iy from Penn:oad the cost price were Eugene G. Grace, 1200 shares: H. E. Lewis. 1.200: John T. Dorrance, 6.000; Drexel & Co.. Philadelphia af- filiate of J. P. Morgan & Co. 6,000; Philadelphia National Co., 3,000, | Pecora placed the list in the record | Al reading a letter from Pennroad to Kuhn, Loeb as permission to ! withhold stock allotted to the bankers | in order to satisfy the special clients. | flered to the persons on our list a little less than 24.000 shares as an allotment on a subscrip- tion of 92.788." the letter said. “The majority on the list from whom we have heard have accepted our allot- ment. There are probably 10 objectors, one of whom threatens suit; one or two others indicate that they sold the stock in anticipation of receiving it, and, of course, will lose money in ful- filling their contracts. | “Mr. County (A. J. County) has said he has received comments from sev- eral people who are supposed to be friends of ours, on the list, which leads him to believe that if we do not fulfill our original contract with these people we will never hear the last of it.” THE EVENING STAR, \\Z\SH’TNGTO\' GIFT TO BE INCORPORATED IN WALLS. ' Appian Stone for Cathedral i dral, now nearing completion in the Capital. with an ornately carved | stone taken from the Appian Way, over which Paul of Tarsus once | passed. the Roman “queen of roads” The gift will be incorporated in the Cathedral walls. Left to right, Ambassador Russo and Bishop James Edward Freeman, receiving the gift. --Star Staff Photo. ! UGUSTO RUSSO. Italian Ambassador, presents the Washington Cathe- VINES, ADVANCES RELEASEQF BRITISH | | T0 QUARTERFINALS ~ ENGINEERS SEEN Bid for Good Will. 'Beats Prenn of Germany at Raising of English and Soviet | Asked to explain the preferred list, Lee said it was a list of men “to whom I had offered stock in event all offered under the original issue of over 5,000.- 000 was not taken by stockholders of the Pennsylvania. H~ agreed with Pecora that the names were suggested by directors of the Penn- sylvania and was an attempt to estab- lish good will Asked why some had threatened suit, Ye~ said they were afraid “we would not _carry out our offer.” “Were there any suits?” asked Chair- man Fletcher. “No." Lee replied. He added that the stock offered to stockholders of the Pennsylvania at the time was ‘not moving with very great celerity” and Pennroad wanted.to be sure that all the stock was dis- tributed. Pecora questioned Lee at length about the purchase of 222,900 shares of stock in the Pittsburgh & West Virginia from Taplin for almost $38.000,000. The witness said he eould not remem. ber who Taplin's associates were and did not recall the market price of the stock at the time. A little"later he sald it-was around $140 when his company pald $170 for it. Lee said he had consented to the purchase because his corporation wanted eontrol of the line %3 Per Cent of Stock. He said the purchase represented 73 per cent of the stock, and Pecora asked him why it was not confined to 51 per cent when the price was so far sbove the market pri “The company was in good shape and the stock was paying dividends,™ Lee sald. “Weren't those factors represented in the market price.” “I don’t know.” Lee testified Taplin had been lent 950.000 by the corporation in June and that the negotiations for the pur- chase of the stock from him started about that time. He said he could not recall whether the loan was made to permit Taplin to purchase the stock for sale to Penn- road The loan was paid off when the cor- poration paid Taplin the first install- ment on its purchase of stock. Lee testified negotiations with Taplin were handled by county. Lee said he could not recall details surrounding acquisition by Pennroad of over 400,000 shares of Seaboard Air Line. Pecora brought out that a vear after this acquisition the Seaboard went into receivership and said four or five years fore the sale of stock earnings of the road had been declining steadily. Lee said that before the acquisition, the Seaboard had changed its financial “set-up” with the approval of the In- terstate Commerce Commission. Pecora Complains. He said Pennroad planned originally only to buy 125000 shares through a syndicate managed by Dillon, Read & Co.. but there was a break in the market and the company was unable to sell to stockhoiders. Pecora expressed dissatisfaction at Lee's failure to reply to many questions and at one point Senator Barkley, Dem ocrat, of Kentucky asked him if he wer onl gure head” in the Pennroad. “T have always considered myself the real president.” Lee replied. Lee agreed with Pecora that the cor- poration had made a “mistake” in pay. ing $5.000 for a membership in the Bloomfield Country Club of Detroit held by President Franklin of the Detroit, Wimbledon in Presence of ! King and Queen. Trade Embargoes Also Expected Soon. By the Assoriated Press. | By the Associated Press. | WIMBLEDON, England, July 1.—| LONDON, July 1.—TIt was understood " Ellsworth Vines, the American tennis in well informed quarters today that the ace, came through to the quarter-finals release of British engineers imprisoned of the all-English singles championship | in Moscow, and the raising of the Brit- | today with a straight-set conquest of ish and Soviet trade embargoes, will in | Dr. Daniel Prenn of Germany, 6—3, all probability be announced tonight. | 6--2, 6—4, befors a packed gallery, m-‘img‘he report that the Anglo-Rusian 4 erences, resulting from the arrest pred é'r‘:"f;:‘: :l:: 3“:;:‘ Australian | 204 Al Of Ui cngineess, hud been composed, followed a visit made by the | Davis Cup team, advanced to the quar- | Rusian Ambassador, Jean Maisky, o | ter-finals with & straight-set triumph | poreign Secretary Sir John Simon. In | over A. C. Stedman of New Zealand, (he last few days Sir John had several 61, 6—4, 6—2. interviews with Maxim Litvinoff, Soviet Mie. Alathice. Wika: commissar_for foreign affairs. ! "It was learned later, however, that The French woman star, Mme. Rene some further points for discussion had Muthicu. had little trouble disposing of risen between Sir John Simon and Mr. Miss Katherine Stammers, former Eng- | Maisky and that another meeting may lish girl champion, 6—4, 6—0. and ad- be necessary. | vanced to the quarter-finals. | Pive British electrical engineers were ! | The tournament atiract-d another | found guilty of espionage and sabotage | capacity crowd this afternoon, under | in Moscow April 18. Three of them | & briliiant sun. Several women fainted | were expelled from the country and two | in the crush and were attended by |received prison sentences. L. C. Thorn- | | ambulance men and nurses |ton was ordered to serve three years | | Already in the quarter-finals, &8 & (and W. L. MacDonald two years. result of victories yesterday, were Les-‘ In retalistion the British government ter Stoefen, tall Los Angeles blond, who | declared an embargo on Russian trade | defeated H. G. N. Lee of England, 5—7, | and Russia similarly shut out British | 2—6. 7—5. 7—5. 6—3; G. P. Hughes | goods. | of England, who eliminated CUff Sut-|" Maxim Latvinoff, Soviet commissar ter of New Orleans. 9—7, 7—5. 6--3: | for foreign affairs, and Sir John Simon, Roderich Menzel of Czechoslovakia and | British foreign secretary, have been dis- Jiro Satoh of Japan. | cussing means of restoring trade rela- | The situation in_women's singles, | tions in conversations at the British | where Mrs. Helen Wills Moody is a|foreign office. Mr. Litvinoff is in Lon- | | standout_choice for the title, was the | don in connection with the Wond Eco- | same. Mrs. Moody trounced Mme. | nomic Conference. | lvia Henrotin of France. 6—3, 6—0. | terday, to enter the quarter-finals; along with Lucia Valerio of Italy and | Lolette Payot of Switzerland. | Three Woman's Matches. ! FOR BEER TO MEET' Three other places were to be de-| cided with two Americans, Helen Jacobs of Berkeley, Calif Dorothy Andrus " A : Burke of Stamford, Conn, clashing in Holding of Session Now an Official one match. The others pitted: Betty i | Nuthall against Margaret Scriven in| Certainty, as Pollard an sll-English affair, and Mrs Ph\'lhs( Mudford King of England against Hilda Plans Call. Krahwinkel of Germany. | Stoefen and Sutter were to play a second-round doubles match against the Belgian Davis Cup combination of L. de Borman and A. la Croix, and Mrs. Moody and Hughes were to team up against W. A. R. Collins and Miss | O. L. Webb in the third round of mixed ! doubles. By the Associated Press. RICHMOND, Va., July 1—A special | “beer” session of the Virginia General | Assembly was made an official certainty today as applications for an extraordi- nary session by two-thirds of both branches of the legislature were placed on the desk of Gov. Pollard. The chief executive said the formal call would be issued early next week QUEZON MAY JOIN | | from promoters of the special session | | who has urged all members of the As- | sembly to apply for the call, and pledge themselves to confine the session to ac- tion on beer, sitting up repeal machin- ery and necessary public works legis- lation. i The Governor said previously he would call for convention on August 10. LEE TURNER IS HELD | IN LINDBERGH CASE| President of Filipino Senate En- | livens Fight Over In- | dependence. By the Associated Press. MANILA, P. I, July 1.—A possibility | that Manuel Quezon, president of the Philippine Senate, might throw his in- fluence into the campaign for outright rejection of the independence act yes- | days VIRGINIA ASSEMBLY % Toledo & Ironton, which road was ac quired by the Pennroad. Records priced the membership at around $250. “What benefit did the shareholders | Le erday enlivened his break with the ; champions of the law. ‘majority of the members of the slature are ready to repudiate the i Department of Justice and New Jersey Officials Don't Know B oess Lot remhea. ~That wis al e e unconatbnally ndones Connection. . A T e ing he law.” sai ezon. “I am mistake on our part, 1t should have| confident the country will stand by been bought by the D T. & It @+ by| their constitutional spokesmen, the | o 'Why should it have been boug Y | Legislature, as against the mission, BY the Associated Press. any one but Franklin himself?” asked Flef er s the usual practice of corpora- tions.” Lee said. The Kuhn, Loeb profit exhibit showed the firm netted $13.373.480 from bonds during 1927-31 totaling $1.637.502.000. and $3.2: 2 from stock issues totaling 5.305.001 shares. Net profits for the firm from stock and bond issues managed by cthers in the same five-year period were about $2,500.000. +o 1ssues in Default. Another exhibit showed bond issues now in default which Kuhn, Locb man- aged, totalling 15. The «2t included issues in default at any time during the Sve-year period. They totalled approxi- mately $250,000.000 and except for $90.- 000.000 in Chilean Bank Bonds and $31.000.000 in moving picture company ities, were railroad jssues. Still another ners of Kuun, Loeb -were directors or ontcers of 42 domestic and 12 British companies during the five-year period and were directors in- the following banks and trust companies: The Manhattan Co., Chase National | Bank, Chemical Bank & Trust Co. Equitable Trust Co.. International Ac- ceptance Bank and United States Mort- gage & Trust Co. Pecora also filed a list of 35 pools, syndicates and joint accounts in which Kuhn, Loeb participated during the five years. Profits ran from $250 to $566.409, the latter on common stock of Chemical National Associates,” Inc., in August, 1929. Another list named officers of banks and corporations. who were extended idual loans by Kuhn, Loeb from to 1931. list included . Henry. T Le pn;?dem of Pennroad; Willlant*J, Mor= exulbit disclosed part- b | which was created only by said Legis- | CHICAGO. July 1.—Two detectives | | 1ature to act for it and which ignores | have arrested Lee Turner, reputed gang- | | its_instructions.” ster from East St. Louis, on the under- |~ Meanwhile, the act's champions— |standing he was wanted in connection | | Senator Sergio Osmena and Speaker of | With the kidnaping of Charles Augustus the House Manuel Roxas—were greeted | Lindbergh, jr. by a crowd at Iloilo, which their sup- Department of Justice men, however, porters estimated at 20.000. These two" said, following Turner's arrest yester- | | leaders of the independence mission to | day. that he was wanted only for a Wachington are campaigning through- | violation of the Dyer act. New Jersey out the island for popular support of | State police likewise said they had no independence terms offered by Congress. | record of Turner being wanted in con- | . — nection with the Lindbergh case. The | JUDGE RECOVERS FOWLS | police said they would turn the prisoner | | .. OKLAHOMA City, July 1 (#).—Judge | over to the Federal authorities today. | | Will Chappell of the Criminal Court of | Bureau of Investigation for violation of | | Appeals, & chicken fancier and some- | the national motor vehicle theft act, | thing of a detective, speedily recovered | according to the bureau's latest “fugi- 32 of his 33 stolen chickens yesterday. |tives wanted” bulletin. | He and Deputy Sheriff Ross Pierce| The notice makes no mention of the {went to Edmond, 12 miles north, and | Lindbergh case, and Justice officials an the rounds of the produce houses, | today declined to comment on this | sevking the chickens, which Judge Chap- | angle. i pell described as “pets.” Finally. in one| In the bulletin recently distributed pen, a-flock of chickens came clucking | to police departments of the country | around the judge and one perched on | Turner's home was given as St. Louis, his finger. Mo.; his age as 36 years and his occu- ““They're mine,” he exclaimed, and the | pation as chauffeur. He has three | deputy agreed. “aliases,” George M. Clark, George M. Gibson and W. L. Scott. ‘The automobile theft is said to have | been committed in St. Louis. File Bankruptcy Petition. Lee Turner, arrested in Chicago yes- terday, is wanted by the United States | ‘ ris, vice president of Youngstown Sheet {and Tube: John W. Platten, president | of the United States Mortgage & Trust Co.. New York; H. Hobart Porter, di- | rector of the same; Samuel Rea, for- | mer president, Pennsylvania Railroad; ST. LOUIS, July 1 (#)—A volun-| | Walter N. Rothschild, director Title | tary bankruptcy petition was filed here | | Guaranty & Trust Co., New York; | yesterday. by the Wolff-Wilson Drug | Charles " B. Seger, director National | Co., operator of 10 St. Louis stores. | Bank of Commerce. New York; E. R. No schedule of liabilities or assets | Tatnall, director Franklin ‘'Puel Co., | was filed with the ‘petition. The com- | ‘Philadelphia; Willlam H. Williams, di- | pany has been in business for 47 years. rector United States Mortgage & Trust, | Several years ago control was pur- d Adolph Zukor, pregident, Paramgunt,|.chased . by_the . drug interesty 2 o Lasky (- Stmay s Siatiasiis i BATTLE FOR GOLD URGED BY SCHACHT Reichsbank Head Backs Bloc in Fight at Economic Parley. By the Associated Press. BERLIN, July 1.—A united front of gold standard countries against the United States and Great Britain was urged by implication today by Dr. Hjalmar Schacht, president of the Ger- man Reichsbank, in explaining to news- paper men the bank's recent transfer arrangements, “I fully understard” said Dr. Schacht, “why countries like Holland and Switzerland which take a large share of our exports, yet which have remained on the gold standard are chagrined that the Reichsbank treats them no better than England and the United States which are dumping their | | foreign exchange and hurting German exports. Must Export Goods. “I do not think it fair that those who hamper our exports by underbid- ding us through devaluated currencies should be repaid under the same con- | ditions as gold parity countries, which take exports off our hands. “I suggest that gold countries, like | France, Holland and Switzerland, think seriously about this and help Germany in her fight to keep her gold parity and improve her exports.” Dr. Schacht painted a gloomy picture regarding the possibility of Germany's meeting given the chance to increase her ex- ports. “I see the darkest future unless we can export,” he asserted. “By a series of almost superhuman | and artificial measures, we have re- mained on a gold parity, though we have no gold. knowing that abandon- ment of the gold parity means sinking | into an abyss. “Our creditors, however, must realize at last we can pay only in exports.” Urges Internal Economies. The Reichsbank yesterday announced the modification of Germany's transfer | moratorium as a result of concessions made by creditors whereby service of the Dawes.loan is completely trans- ferred, while of the Young loan the interest only is so treated. The transfer moratorium was modi- fled in the application to all debts con- tracted bcfore July, 1931. The Reichs- bank anticipated the ability to transfer 50 per cent of the interest payments falling due in the next six months, but will pay amortization into the conver- | sion office Dr. Schacht said Germany fully agreed with the American attitude at the World Economic Conference, name- ly. that there is no use making inter- national agreements unless national economies are first put in order. For this reason. he said, the Reichsbank took fate into its own hands. Sarcastically he added that “since Germany is the largest debtor in the world. owing 20,000,000,000 marks, we assumed the economic conference would show a certain interest in the inter- national debt problem, but hitherto this subject has not even been touched upon in London.” HOT WEATHER HERE TO CONTINUE, WITH RELIEF NOT IN SIGHT ___(Continued From First Page) yesterday's high mark, but still was described as abnormal in conjunction with such 2 high temperature. Sunday may be a little cooler, and thunder- showers are probable, Twelve days in June saw the ther- mometer register above 90 degrees, the Weather Bureau Observatory said this morning. Only once since the bureau has kept records have more “above 90" Vs been recorded in the city. In 1923 there were 13 of them. The only when 12 have been recorded ‘The nor average tem- perature for June is 72.2 degrees. Last month’s average was 74.7. Two deaths from heat prostration and five from drowning while secking heat relief were recorded during the month Those prestrated yesterday were Jo- seph Green, 40. colored, 1227 Seventh other year street; Charles Wilson, 23, colored, no | address, and Jackie Pearson, 18, of Vienna, Va. None was seriously af- fected Heat records tumbled all over the | | country yesterday, the Associated Press reported. Chicago closed its books on the hottest June in weather history, with a mean for the month of 76.2, nine above normal. In the Southwest a scorching sun sent the mercury up to as high as 113 at Phillipsburg, Kans.; 108 at Alva, Okla., and 103 at Wichita Falls, Tex. Crops were badly burned in dry-land farming sections. Many Missouri and Kansas towns reported it was the warmest June on record, with rainfall far below normal. During the day and night widely sep. arated localities were subjected to heavy | windstorms—Northern Indiana, South- western Ohio, Nebraska and Pennsyl- vania. High winds were blamed - for three deaths in Pennsylvania. Five others were killed by lightning in Pennsylvania during severe electrical | storms. Considerable property damage also resulted. Detroit reported two deaths from the | heat; Cleveland, four, with three drown- ings, while Pittsburgh’s figure mounted to five as the temperature touched 92. All June records for heat were broken in Pittsburgh, with a total of nine pros- tration deaths and 27 drownings. No relief was in sight. Cooling thundershowers broke the hot spell temporarily at least in New York City last night, and the metropolis enjoyed a temperature of 73. CAFE PATRON SLAIN WALLINGTON, N July 1 (#).— Michael Nagacki, 37, a contractor, was shot and killed early today by one of three vouths who held up a cafe. Nagacki, lined up along the bar with several others, dashed out the door and on the street. One of the trio followed and fired three shots, one of which went through Nagacki's heart. —_— Shirt Company Boosts Wages. ST. LOUIS, July 1 (A.—A 10 per cent salary increase to 380 employes, effective yesterday, has been announced here by the New Era Shirt Co. During recent poor business years the concern had cut salaries about 25 per cent. Traditions of Public Life Which should be Which should be M:rs. Franklin will discuss these questions in an interesting article in the Society Section of The Sunlay Staf-_i July 2 - her_indebtedness unless she 1s | D. C, SATURDAY, JULY 1, 1933 BOARDMAN INJURY + ¢ MAY PROVE FATAL; TURNER LEADS RACE __(Continued From First Page.) world non-stop distance record ‘The distance covered by the flyers in that flight was estimated to be 5,039.5 miles | and they made the flight in 49 hours and 20 minutes at an average speed of 102 miles an hour. Boardman is 35 years old and has | been flying for 12 years. | ~ Boardman suffered injuries to his head and back. He was still uncon- | scious when removed to the City Hos- pital. ! | The aviator, in taking off, was up about 25 feet when his plane struck a | cross wind and got out of control. Miss Amelia Earhart, who had Taking Part in the National Air Races planned to make no stop until she reached Wichita, ran short of gaso- line and landed here at 845 am. to refuel. She tock off 20 minutes later and said she might make another stop at Amarillo or Albuquerque. She com- plained strong headwinds had held down her speed. ST. LOUIS, July 1 () —James | Wedell of Patterson, La. flying in the transcontinental -air race from New York to Los Angeles, landed at Lam- bert-St. Louis Field at 7:54 am. (Cen- e - 4 Upper: Two woman and four man charge of Floyd Bennet Airport, Long fivers pose with Maj. J. Nelson Kelly, in Island. a few hours before their hop-off | in a race to the National Air Races at Los Angeles for cash prizes and the hono: { of establishing a new westward transcontinental record. Seated, left to right: Ruth tral standard time) togay and left 6 Nichols, Maj. Kelly and Emelia Earhart Putnam. Standing, left to right: Russell minutes later after refueling. SIX LEAVE NEW YORK. | Boardman, Lee Gehlbach, Coi. Roscoe Turner and Russell Thaw. Lower: Largest and smallest planes in air meet. "lbo\'e. will fly the “bug.” as the small plane has been dubbed, in the races which It has a Menasco C-4 motor in its little nose and start today in Los Angeles. —A. P. Photo. Arthur C. Chester, shown | Amelia Earhart First to Take Off jn 2 Wing spread of just 16 feet, in comparison to the fact that it will cut through $12.500 Air Race. NEW YORK, July 1 (#)—Five male | specdsters of the air and one woman— Miss Amelia Earhart—sbot away from Floyd Bennett Field early today in a $12.500 race to Los Angeles. | Miss Earhart, the wife of George Pal- | mer Putnam, publisher, got away first | in her red plane. She smiled, posed | briefly for the cameras. and was off in | a flash at 2:48 am., Eastern standard time. Soon afterward the men hit the same Western air trail, traveling fast. They | are: Col. Roscoe Turner of Los An- | geles, who holds the East-West record | of 12 hours 33 minutes; Russell Board- man of Springfleld, Mass.; Russell Thaw of New York, and Lee Gehlbach and James Wedell of Patterson, La. Turner hopped at 3-49. Gehlbach at 4:42. Wedell ut 3:47: Thaw at 4:53, and Boardnian at 5:25. | Prizes for New Record. | ‘The prizes were offered in connkc- tion with the sixth annual National Air Races, opening today at Los Angeles. Winners will be determined by com- | parison of elapsed time. A seventh con- tender. Miss Ruth Nichols, she would get off tonight. { male contenders. divided into purses of $9.000 and $1.000. The $9,000 is to be split among the fiyers according to the | order in which they finish. The $1.000 | will go to any cne who breaks the East- West record of 12 hours and 33 min- utes, which Col. Turner established last November. | Prizes of $2500 are offered in the women's divislon, but if either Miss Earhart or Miss Nichols should beat the time of the men, she would share in the $9,000. | equipped with more powerful motors. | Miss Earhart insisted. however, that {she would not only try to beat the men but the record. She planned to stop only at Wichita. | Follow Transport Route | | Los Angeles is 2460 miles away from | New York by the shortest air route, but | the racers did not expect to follow it | | because the regular transport routes offer more facilitie, for refueling. Un- der the rules, the flyers may land wher- | ever they wish to take on gasoline. | They were expected to travel at least 2500 miles and perhaps considerably | more. The male fiyers have engines develop- | ing 700 to 800 horsepower. Miss Nichols' | | ship 1s powered with a 450-horsepower | motor, while Miss Earhart's is rated at 500 Mayor John P. O'Brien greeted Board- | man, Turner and Thaw at City Hall yesterday, wished them ‘“godspeed and a happy landing,” and gave them salu- the air at more than 200 miles per hour. | States Army Air Corps bomber with a wing-spread of 93 feet —Wide World Photo. | Parked above it is & huge United OUSTED WORKERS LOOK TO ROOSEVELT TO REGAIN JOBS __ (Continued From First Page) Government, and the Post Office De- partment has been awaiting such an order before fixing the furlough scale for its departmental force. Elsewhere, however, administrative officers generally have gone ahead and | arranged a program they felt would conform to their needs as they now see | them, with the result that the principal uniformity that has been obtained is removal of employes with husbands and wives in the Government, or those with 30 years’ or more service. In some cases, married workers have been kept, be- cause, it was said, of special qualifica- tions. Notices Going Out Today. Meanwhile, today, two deparuments— Interior and Agriculture, which are and other forms of retrenchment. Interior, it was said that notices were going out today, and that by Monday, a complete statement was expected to be available. The major changes there will come the 15th. In the Geological Survey alone, 10 distinguished geologists are being re- | “tr;d and about 140 other workers cut off. Agriculture is getting in reports from rious bureaus and these also are ex- pected to be compiled early next week. A “lot” of married workers were cut off at Agriculture yesterday, it was said, and there were also retirements. Fur- loughs also are being used and 150 of two months are known to have been put into effect. Blow Heaviest in Field. In all, there will be & “subst curtailment” of activities it plained, but the blow will fall heaviest on the field force of 26.000. In the de- tantial partmental service, the staff numbers | about 5.000. In an effort to save approximately 200 men and women out of the 380 going on indefinite furloughs at the Bureau of Standards, Dr. Lyman J. Briggs, the director, said late yesterday he had asked funds from the public works pro- gram, for testing materials, a class of works which, it was explained, will be | demanded. The bureau, in the past, has tested the materials used in practically all public works. tations to carry to the mayor of Los| AiSedali arrived at Floya Bennett Pieia | “JAKE THE BARBER” KIDNAPED BY GANG; only last night after flying 1,800 miles during the day. He started from Pat- terson, La. yesterday, but when he reached Atlanta trouble developed. He flew back to Patterson, got another ship and sped to New York. NATIONAL RACES OPEN. | Pilots Hope to Set New Speed Marks in Los Angeles Meet. LOS ANGELES, July 1 (#).—The progress of a year in the speed of flying machines unfolds here for four days, beginning today, as the sixth annual competition of the National Air Races gets under way. | Some 25 pilots at the throttles of tiny, super-speed creations will take their flying power houses across country and around pylons to show how much faster man can fly this year than last and to gain as much as they can of $50,000 in cash prives. overlooked? rigidly observed? g; {f | D. Roosevelt FRIEND IS RELEASED (Continued From First Page.) pected, would stand ready to establish contact with the gang. Mrs. Factor and Mrs. Epstein mar- veled at their own escape from the ter- rorists, for they were wearing - jewelry they valued at thousands -of dollars. But the kidnapers apparently were in- tent on kidnaping Factor alone, and evidently were familiar with the fact that Factor was a regular patron of the Dells, a dance resort on Dempster road a few miles west of Evanston. Ten armed guards had been established re- cently at the place. Factor's career, begun humbly as the son of Polish parents living in London, has swept from a barber's chair in a loop shop here to high finance. When mining stocks marketed through his “Broad Street Press, Ltd.” among Eng- lish investors turned out to be virtually worthless, he was accused of manipu- lating the stocks into a profit of $7,000,000. . ‘The British sought to extradite him from America on the charge of receiv- ing money he knew to have been ob- tained fraudulently, and for many months his attorneys have battled up to the Supreme Court, where the case now rests, the question whether the charge is an extraditable offense. Mean- while he has settled for $1,300,000 a civil suit by the alleged British losers which tied up & trust fund he had es- tablished for his wife and son. D. C. Girls Attend Conference. Two Washington girls, Juliet C. Du- laney, 2445 California street, and Rose F. Hyde, 2219 California street, are at- nding thg thirty-second : Northfield, Conference this week. The [ N tel {CONFERENCE WAITS | IN VAIN FOR WORD FROM ROOSEVELT _ (Contirued From First Page) would be holding a club over specu- lators. Others thought the bank might actu- ally engage in some buying and selling of dollars in order to exert a steadying influence. | Informed American circles, however, expressed the view the Reserve bank would not move far in actual stabilizing dealings. Central banks are understood to have been in agreement to smooth out cur- rencies since George Harrison, governor of the New York Federal Reserve Bank, left for New York more than a week ago. At that time authoritative quar- ters explained that the plan was only for preventing sharp fluctuations and not for presctving even a relatively fixed ratio. American quarters here also are un- certain as to how far the New York Reserve Bank would go in interpreta- tion of “speculative transaction: Some financial quarters doubtsd that the mere prevention of individuals from taking speculative positions in currency would stop fluctuation sufficiently to obviate fresh flurries of fear among gold standard nations. Flight From Dollar. They thought that control must be exercised over suspected speculative operations as well Important forces causing sudden drops in the dollar are believed in financial circles here to include sales of American securities and transfer of funds into other currencies, together with the disinclination of American firms and individuals having receipts in foreign countries to convert them into depreciating dollars. | Thus a flight from the dollar evi dently progresses through security | transactions, and the normal demand for dollars disappears. Japan, New Zealand and Venezuela | today accepted the truce on tariff |changes. The latter two expressly re- | served the right to cancel the agree. | ment after August 31, with a mont | notice. FRANCE TO STAY IN PARLEY | Cabinet Approves Bonnet's Defense of Franc and Gold Standard. PARIS, July 1 (®)—France intends to remain at the World Economic Con- | ference and fight for the gold slmdll‘di regardless of the gold group’s reported | threat to walk out, it was declared after today's cabinet meeting. 7 ‘The ministry enthusiastically ap- proved the action in London of Georges Bonnet, French finance minister and head of the gold bloc. Camille Chautemps, minister of in- terior, said at the conclusion of the meeting that “adjournment of the ‘World Economic Conference is not fore- seen.” He added that France was hope- ful President Roosevelt would approve the currency resolution prepared for him by the conference leaders. ‘The cabinet also approved M. Bomn- net’s plan to launch a loan to replenish the nearly empty treasury. plan entails the issuance of 10- year bonds, which will be offered to buyers on_ better terms because of the unfavorable market which in April caused Prance to borrow from England instead of domestically. BOND SALE DELAYED Litigation Holds Up $8,000,000 Is- sue in Minnesota. CHICAGO, July 1 (#).—Issuance of | $8,000,000 in bonds of the Rural Credits yesterday. ‘The bonds were signed and executed by Minnesota officials and turned over to the State Board of Investments by | the Rural Credits Bureau. They were placed in the hands of W. H. Lamson, secretary of the board of investments. Lamson said he would retain the bonds pending outcome of litigation started in District Court there to prevent their issuance. Carleton D. Beh Co. of Des Moines, investment brokers, had arranged to purchase the issue, but it was decided to defer the sale until after the liti- | Bureau of Minnesota was completed | BELIEVED DETROM ; BANK WAS SOLVENT i(:ounsei for First National Testifies That Was Opinion | of Ogden Mills. By the Associated Press. DETROIT, July 1—The statement | of one witness that fbrmer Secretary of | the Treasury Ogden, L. Mills believed | the closed Pirst National Bank-Detroit | to be solvent, and of another that the | former Treasury head)sent a New York | banker here to discuss plans for reor- | ganization, last night went into the | records of the one-man Detroit bank | fury. | Similarly, a plan was nevealed in mo- | tion for reopening the Finst National—a | plan which, according to James O. Mur- | fin, director and attorney for the bank, | would enable payment “at\once” of 100 | cents on the dollar to all depositors. To | date the depositors have received 40 | per cent. It was Murfin who told the grand | Jury, holding public hearings into the closing of two local national banks, that Mills informed him in a Washington conference the Pirst National was solv- ent and should not have been closed. The conference. he said. came five days after the Michigan bank holidmy began. Charges Plot Against Ford. Ernest C. Kanzler, chairman of the | Executive Committee of the closed | Guardian National Bank of Commerce, and a brother-in-law of Edsel Ferd, testified it was at Secretary Mills’ re- | quest that George W. Davison, chairman of the board of the Central Hanover Bank & Trust Co. of New York, came here a few days after the bank holiday was declared. Davison, he said, offered to take over the two national banks if their assets were written down to 22 cents on the dollar. The plan, they said. was refused. Previous witnesses, including Herbery R. Wilkin, general manager of the | Guardian group, of which the Guardian | National Bank of Commerce was the principal unit. testified Davison | here to further a “Wall Street plot® | against Henry Ford. William F. Co nolly, receiver for the Detroit mnna | Co.. of which the Pirst National waj the principal unit, has testified he bes | lieved the plot against Ford aply .sideswipe” in a Nation-wide plan New York banks to force the Q:nllfll chain banking system on the Unif States, by restricting credit the country. Says Bank Was Solvent. Murfin, a former circuit ju he conferred with Mills af :’hf'f;qa‘e’.‘; of Detroit bankers who wished to find out the Treasury Department plans 1n regard to the closed bancs. “I tol m that his agent. A. Leyburn, then chief examinee for the | seventh ' Federal reserve district, had declared the First National insolvent said Murfin. “Mills said he had no right to do that. Your bank was so0l- '\'enh Had it been insolvent it would | have been my duty to have put in & | Teceiver. I only had the right to say whether or not it was insolvent.” |~ Attorney General Patrick H. O'Brien yesterday afternoon received an ac- | knowledgement of his telegram to Pres- | ident Roosevelt asking him to compel Federal officials to testify in the grand Jury investigation. | _The telegram, signed by Stephen | Early, assistant secretary to the Presi- i dent, stated: “Telegram received. Will be laid before the President immediately upon his return. Will advise later re- garding your request for an appoint- ment. Am sending copies of your m sage to the Secretary of the Treasury 50 FOREST WORKERS " HUNTED AFTER RAID ON STORE IN VIRGINIA ___ (Continued From First Page.) tire stock of men's trousers, shirts, overalls. women's shoes, men's shoes and hose was strewn about the place and | some of it taken. Pending an inventory, | he said, he could not make an accurate estimate of his loss but believed that it would be more than $100. Irvin said the men responsible for the looting had driven away before he | discovered his loss. | Sheriff Sheets said he was informed | that one of the trucks was bound for the Roancke section of the State, an- | other for the Petersburg section and the third for the section near Wash- | ington. Roanoke Group Accused. | _Upon his arrival at the scene. the | sheriff said, he found the Petersburg | detachment still there and searched their baggage, finding nothing. He was told by members of this group, he said, that the looting was done by the group headed for the Roanoke section. Sheets telephoned to Sheriff Charles R. Fawley | of Rockingham County and the latter had all roads watched, but without result. Irvin, Sheets said, communicated | with officials at the reforestation camp | and was told to have the men locked up if he could locate them Overalls are a part of the regular ‘unlron'n of the campers and the men had all they needed. But more over= alls were missed than anything else, | THREE SENT TO PRISON. | Forest Camp Youths Sentenced in Idaho. BOISE. Idaho, July 1 (#)—Three Conservation Corps youths from New Jersey were sentenced to six months tq five years in the Idaho State Peniten< tiary after pleading guilty to burglary of a Placerville pool hall. The three are Danny Gania Orange, John Sheer of Weehawken ane Joseph Fisher of Montclair. ‘They told District Judge C. F'. Kolesch | that others of the camp had returned from the pool hall with little brass mugs | and they sought some as souvenirs. One Sunday afternoon they broke in, took mugs and added eandy to their Joot. U. S. ENTRY QUESTIONED Paymaster of Escobar Revolutione ary Forces Delayed at El Paso. EL PASO, Tex, July 1 (#).—Salvae dor Ateca, paymaster of the Escobar revolutionary forces during the 1929 uprising in Mexico, entered the United States yesterday for the firsv time since he left New York for Spain as ag exile after the collapse of the revolus tion. Ateca was paroled to the Fl1 Pasq Chamber of Comunerce pending an ap- peal to the Unitéd States Departmeny of Labor from & yuling of immigration officials that ‘he is mot privileged to enter the United States because of lack of sufficient residence in Mexico. Officers here ruled Ateca must re- | main in Mexico two years after return- ing from a foreign country before he can seek entrance privileges into the United States. Held in $17,000 Swindle. NEW YORK, July 1 (P)—Henry | Packard, 38 years old, appeared in the | line-up at police headquarters today charged with participation in the lar- ceny of $17.000 in a stock transaction in Cincinnati, Ohio. Police said Pack- ard, with others, swindled Ida M.. Hale both of Cincinnati of $17.000 in a stocl desl on December 14, 103. w