Evening Star Newspaper, July 3, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair and continued cool tonight; to- morrow fair, with slowly rising tempera- ture; diminishing northeast Temperatures—Highest, 88, ai rda) 58, at 8 am. today. Page A-T. ; lowest, Full report on Closing N.Y. Markets, Pages 10,11 & 12 ‘winds. 3 pm. No. 32,570. Entered as second class matter post office, . Washington, D. C. Conferees Told to Table Minor Problem. MESSAGE SEEN RAP AT FRANCE Frank Note Urges Balanced Budgets and Economy. By the Associated Press. LONDON, July 3.—Ramsay MacDonald as president of the World Economic Conference de- cided this evening after a meet- ing of British authorities with representatives of the European gold bloc to summan a meeting of the bureau tomorrow to determine the future of the parley in view of President Roosevelt's rejection of currency stabilization. From the highest British quar- ters came the statement that there was no question of the con- ference having collapsed. The British are determined that the assemblage shall finish its work, but it was admitted that the conference may have to hurry and that short cuts may have to be taken. Gold Bloc May Bolt. President Roosevelt’s dramatic re- fusal to have anything to do with sup- porting the old-fashioned gold stand- ard resulted in the European gold bloc’s taking definite steps to make good their threat to desert the parley unless it sailed under a flag of gold. In gold bloc quarters it was stated that some delegations at least expected immediate orders from their govern- ments to return home, leaving only a few minor secretaries at London. Should the entire gold group, con- sisting of Prance, Belgium, Holland, Italy and Switzerland abandon the con- ference it would virtually be paralyzed. Reproof to France Seen. President Roosevelt’s statement was interpreted by experts in high confer- ence quarters, not only as a flat notifi- cation that the United States is not Interested in restoring the old-fashioned gold standard, which France and her continental allies have been trying to force him to support, but as a scarcely veiled reproof to France. Experts expressed the opinion the American Chief Executive had in mind In France’s unbalanced budget and huge expenditures for military and naval purposes, as well as uncollected domes- tic taxes when he sald: “When the world works out concerted policies in the majority of nations to produce bal- anced budgets and living within their means, then we can properly discuss a better distribution of the world's gold and silver supply, to act as a reserve base for National currencies.” In many conference circles the Pres- ident’s statement was taken to mean in substance: “We do not give a row of beans about gold at this juncture. Other nations may stay on gold or abandon it to suit themselves, but we are not lending our support to the maintenance of old- fashioned European gold standards at this time.” The first move on behalf of the gold countries was made through Switzer- land. Walter Stucki, chief Swiss delegate, asked for and obtained adjournment until Thursday of an important draft- ing committee of the Economic Com- mission on the ground that no further work could be accomplished until gold bloc delegations should receive fresh in- structions from their governments. A similar motion was expected in other committees this afternoon, and, if accepted, it would mean that a large g:rt of the conference activities would suspel nded. Well informed persons close to the representatives of gold countries said this adjournment of committees was merely the entering wedge and antici- pated activities would not be resumed. The Swiss delegation was understood to be expecting orders tonight or to- morrow from Berne directing it to re- turn home, leaving only a few secre- taries on the job. Other members of the gold group are contemplating a similar move. U. S. Delegation Silent. In the meantime the American dele- gation remained discreetly silent, feel- ing that the President had said all that was necessary in his statement which set the already disturbed confer- ence by the ears. There was some disposition in Ameri- can quarters to think that France and other countries still on the gold stand- ard were bluffing, but this group grimly asserted that it meant business. Prime Minister MacDonald, chairman of the international assemblage, and the British delegation were working fran- tically to achieve & compromise and save the life of the parley. Spokesmen for the gold states indi- cated that they would continue “to play (Continued on Page 2, Column 1.) PR i e e MANEUVERS ARE FATAL Seven Japanese Soldiers Die and Hundreds Sent to Hospitals. TOKIO, July 3 (#).—Seven soldiers died, 30 were dangerously prostrated and more than 100 others sent to hos- pitals over th> week end—victims of the Japanese army's customarily severe training methods in the most rigorous ‘weather. ‘They were felled during maneuvers of the first division on the plains at the foot of Mount Fuji in temperature of 90 Pahrenhelt, accompanied by @h +«WITH SUNDAY MORNING EDITION ¢ Foening Sfar. WASHINGTON, D. C, MONDAY, JULY 3, 1933—TWENTY PAGES.¥*** Warning by Roosevelt President Tells Delegates to Forget Minor Problem of Exchange and Ge: Real Econo: By the Assoclated Press. LONDON, July 3.—The text of President Roosevelt’s message to the World Economic Conference today follows: I would regard it as a catastrophe amounting to a world tragedy if the great conference of nations called to bring about a more real and permanent financial stability and a greater prosperity to the masses of all nations should in advance of any serious effort to consider these broader problems allow itself to be diverted by the proposal of purely artificial and temporary experiment affecting the monetary exchange of a few nations only. Such action, such diversion, shows a singular lack of proportion and failure to remember the larger pur- poses for which the Economic Con- t Down to Work on mic Issues. ference originally was called to- ether. I do not relish the thought that insistence on such action should be made the excuse for continuance of the basic economic errors that underlie so much of the present world-wide depression. Reduced Costs Important. The world will not long be lulled by the specious policy of achieving a temporary and probably an &rti- ficial stability in foreign exchange onlthe part of a few large countries only. ‘The sound internal economic sys- tem of a nation is a greater factor in its well being than the price of its currency in changing terms of cur- rencies of other- nations. It is for this reason that reduced (Continued on Page 2, Column 2.) COMMODITY DOLLAR SEEN BY PARLEY Roosevelt Statement Held as Making Silver Position Now Untenable. By the Assoclated Press. LONDON, July 3.—The American delegation interpreted President Roose- velt's declaration today on gold as mak- ing the Pittman resolution, calling for return to the gold standard with the part optional use of silver, now un- tenable and was reliably reported to be considering a substitute for this measure. A number of members of the Amer- ican group interpreted the President's statement, that “the United States seeks a kind of dollar which a generation hence will have the same purchasing and debt-paying power as the dollar value we hope to attain in the near future,” as & flat declaration of a com- modity or compensated dollar, along the general lines advocated by Prof. Irving Fisher. Pittman’s Resolution. The Pittman resolution said “gold should be re-established as an inter- national measure of exchange values,” but proposed alterations in the use of the yellow metal—namely, reduction of the minimum central bank reserves from the usual 40 per cent to 25 per cent and the optional use of one-third silver in the place of gold. In the light of the new statement from the American President, however, important delegation quarters felt this formula to be too rigid and believed that a new declaration was necessary. ‘The delegation was not yet clear, however, whether President Roosevelt favored varying the number of grains of gold in the dollar as necessary to flatten out fluctuations in the whole- sale price index, along the lines of the Fisher plan, or some other program. If the interpretation in important American quarters here of the Presi- dent’s statement is correct, it would mean that for the first time a major country had entered definitely upon a managed currency with the avowed ob- jective of keeping the price level stable. Great Britain has kept a more or less stable price level through currency management since leaving the gold standard nearly two years ago, but has not committed herself to such a pro- gram, announcing rather her imften- tion to return eventually to the gold standard. Sweden, however, has been defiriitely experimenting with a managed cur- rency along the lines of altering its value from time to time to check ad- vances or declines in the price index. Merely Pegs Currency. STOCKS IN UPTURN AS DOLLAR SLUMPS Commodities Also Rise, With Further Decline in Amer- ican Currency. By the Associated Press. NEW YORK, July 3.—Speculative markets, particularly stocks and wheat, soared today as the dollar dropped. President Roosevelt’s emphatic “no” to European overtures for stabilization was accompanied by heavy buying on the country’s two major exchanges— the New York Stock Exchange and the Chicago Board of Trade. American currency tumbled heavily, being quoted at new lows in terms of ropean Rte o t tely 17 a turnover o ly 1- 000,000 shares, stmnm $1 to more than $8." Wheat, in an early clos- ing at Chicago, finished with gains of 3% to 41 cents a bushel. Other grains were strong, too, although their ad- vances were smaller. Buying Orders Heavy. ‘With the President giving precedence to his domestic price-raising program, traders dumped huge purchasing orders into the markets. The advance gained enormous momentum, particularly on the Stock Exchange; where the quota- tion-distributing machinery was . se- verely taxed. Heavy dollar depreciation brought & quotation of $4.46 for the British pound sterling, 8 maximum gain of more than 12 cents, which was later reduced, al- though the rate remained well above Saturday’s final figure. French francs, Swiss francs, the belga and Dutch guild- ers rose buoyantly, the last-named get- ting nearly 2 cents higher. Rail shares boomed, closely followed by steels, chemicals, farm equipments and other industrials. Utilities were somewhat quieter. In important banking circles here, the President’s note to the London Eco- nomic Conference was well received. Bankers sald the statement had made clear the position of the United States with regard to the currency question which had been surrounded by consid- erable confusion and contradictory com- ment. On the stock market United States Steel preferred crossed par, or $100 a share, for the first time since early 1932, while New York Central zipped above $50. Cotton, after an early rise of about $2 a bale to new highs, closed with net gains of 55 cents to $1.15. The advance in shares meant new highs for most of the leaders. On the curb and bond markets gains were wide and general. Closing Quotations. The stock ticker finished its day’s work at 3:18 p.m., with final prices the Since Sweden went off gold, and | highs. having a relatively small currency, she has been able to achieve this end by merely pegging her currency with the French franc and other gold currencies and from time to time changing the ratio, thus giving the effect of a chang- in, d content. {’r%‘;l. Gustave Cassel, famed Swedish managed economist and advocate of & currency, feels that the experiment has been a success to date, but acknowledges the inability of all countries to work in the same way, since there must be something which to peg the currency. Closing quotations for some of the favorites follow: Pennsylvania Railroad, $36.75, up $3.62; Baltimore & Ohio, $32.50, up $4.25; Bethlehem Steel, $46, up $3.50; Case, $95.25, up $4.75; Seats, Roebuck, $43.25, up $2.87; Consolidated Gas of New York, $60.37, up $2.50; American Can, $95.25, up $2.25; U. S. Steel, $62.37, up $2.50; U. S. Steel preferred, $101.50, up $3.25; Delaware & Hudson, $91, up $8.12; New York Central, $51.75, up $7.37; Union Pacific, $131.75, up $10.75; Santa Fe, $73, up $4.50; American Tele- phone, $131.25, up $1.75. HEAVY RAIN HITS HAGERSTOWN AREA WITH DAMAGING EFFECTS Highways, Bridges, Crops and Homes Suffer Losses Placed at Several Hundred Thousand Dollars. Special Dispatch to The Star. inches of rain ha fallen here at 8 dred thousand dollars. ‘The National Highway at Bolivar, 15 miles east of here, was still blocked to- day, where a concrete bridge, spanned a small stream was carried away d the height of the storm last nl.i‘ht, caus ‘b(;t(: of $10,000. State police guarded approaches durin, to Wllhln‘tmm via L‘m and Pred- | e S ber of head of live stock were drowned when the Catoctin River overflowed. A washout along the Western Mary- land Railroad near Gettysburg sent a crew from this city. At wrecks, swept into the C. & O. 1 | empty before the rain, was overflowing mfl:em this mrnmgl’ e persons NAarrowl their lives when the chm of | Domestic Price Raising Heads U. S. Aims. HULL SUBMITS LIST AT LONDON Accords Imperiling Recovery at Home Are Barred. By the Associated Pr’l LONDON, July 3.—Come what may, Americans at the World Economic Conference believe there must be no international agreement which might hamper recovery at home. ¥ This was the first point of g tentative statement Secretary of State Cordell Hull had drawn up today in reply to a gold bloc de- mand for stability in the inter- national monetary field. It was echoed by other Ameri- cans, one of whom asserted that President Roosevelt’s refusal to accede to a declaration of the European gold standard nations, led by France, “ends the tinkering | here with American currency.” Another, Senator James M. Couzens, in a speech maintained that the American people could rest assured the delegation would permit nothing that would im- pede the domestic price-raising program. Submitted to MacDonald. Advance reports of Secretary Hull's explanation of the President's rejection of the currency declaration were un- derstood to have convinced the gold countries—France, Italy, Holland, Swit- | zerland and Belgium—that the gulf be- tween them and the United States, par- ticularly, cannot be bridged. As Secretary of State, and not as (Continued on Page 2, Column 7.) SOVIET DEAL STIRS RECORNITION TALK Roosevelt Advisers’ Desire for Such Action Is Being Cited. By the Assoclated Press. The Roosevelt administration’s first attempt to tap the great Soviet Russian market intensified talk today about whether more friendly relations might lead to American recognition of the land of communism. ’ ‘There were no official indications that that was in the offing. But the inter- ested reminded that while the President never has spoken publicly on the sub- Jject he has a number of close advisors who strongly urge recognition. The transaction between the United States and the U. S. S. R. was just about as direct as it could be between two nations without diplomatic connections. Loans Authorized. the Reconstruction Pinance Cor- poration authorized a series of loans— said unofficially to total around $4,000,- 000—to American exporters. The money will be used to buy 60,000 to 80,000 bales of American cotton for shipmemt to Russia. But the rest of the story is that the loans will be secured by notes of the Amtorg Trading Co. and uncondition- ally guaranteed by the State Bank of the Soviet. Amtorg is owned by the U. 8. 8. R. and was organized by the new Russia to carry on its business in a f:unery ‘where it had no official stand- 2. These loans will be for one year and, like the $50,000,000 advanced to China by the Reconstruction Corporation for the purchase of wheat and cotton, will bear 5 per cent interest. Some cotton, said the announcement by Chairman Jesse Jones of the corporation, likely " nen ‘Xiplfdnfinm]"whm will put , pul down in cash 30 per cent of the pur- chase . Whether the purchase price will be the market price on the day of delivery was not included in the first announcement. More Aid Expected.- It also was stated by reliable sources that further loans were being consid- ered to finance exportation of other commodities to Russia. Wheat was mentioned, although the Soviet is one of the world's Mgmbe-t producers. Particular signi was _attached here to the fact that the deal was an- nounced after Raymond Moley, Assist- ant Secretary of State and No. 1 man of the famed “brain trust,” had talked at London with Maxim Litvinoff, So- viet foreign commissar. Moley arrived in London only & few delegation from their President. Before Moley left the United States Litvinoff to be negotiating for credit buy machinery. | | PUZZLE—FIND THE INCOME TAX PAYER! cif (P Means Associated “From Press to Home Within an Hour” The Star’s Carrier system covers eve: block and the regular edmonl;y.s delivered to city and suburban homes as fast as the papers are printed. Circula =l¢wi;_.y’l u-'. 111,155, 120,793. TWO CENTS. Press. ———————————3 HIT BY ROOSEVELT, GOLD BLOC MAY QUIT MEETING TO FIX PARLEY’S FUTURE CALLED TOMORROW BY M’'DONALD AS COMMITTEES SUSPEND WORK TURNER FAVORED INAIR SPEED TEST Winner of Transcontinental Race Hopes to Make 340 Miles Per Hour. By the Assoclated Press. LOS ANGELES, July 3.—Pighting for $7,800 in cash prises, racing pilots at the National Air Races here take to the skies today in what probably will prove to be the swiftest display of flying in the history of the aerial classic. Chief among the events on the day's program will be the contest over a 3- kilometer straightaway course, aimed at establishing a new world speed record for land planes. Maj. James H. Doo- little set the present record of 294 miles per hour at the races in Cleveland last year. Sideline observers were confident at least one plane, the high-powered ship of Col. Roscoe Turner, winner of this year’s transcontinental speed dash from New York, in which he set a new rec- ord of 11 hours 30 minutes, would crack 300 miles an hour, long the objective of airplane engineers. Hopes for 340 Miles Per Hour. “She should do 340 milés an hour,” Turner said. ‘Competing_against Turner will be his old rival, Jimmie Wedel, the New Orleans ace and builder of Turner's ship. He had hoped to bring here a plane in which he was fiown at 360 miles per hour, in unofficial tests, but in ferrying the craft to New York for the cross-country race, in which he took second place, trouble developed at Atlanta and he was forced to return to Louisiana and get another ship. The plane he will use today is the same in which he flew in the transcon- tinental race. Gordon Israel of St. Louis is another entrant, although his ship will be con- siderably slower than those of Turner and Wedell. There are five prizes to be awarded out of the $2,500 purse. Turner Big Money Winner. At nightfall yesterday, Turner siill was the big money winner of the races, having pulled down $5,050 in the cross- country event. ‘Wedell had swelled his bank account by $3,375, taking $2,250 in the New York-Los Angeles dash and $1,125 in the closed course event yesterday for high-powered planes in which he also made the fastest speed yet clocked on the course, averaging 207 miles per hour, and turning up 270 miles per hour on one of the 10 laps in the 50- mile event. Ruth Nichols, who, with Amelia Ear. hart managed to accumulate enough hard luck on their transcontinental trips for a dozen flyers, was forced to land yesterday at Wichita by motor trouble. She was expected at the Muni- cipal Airport late today. Miss Earhart landed here yesterday after Sat night in Wichita. “I never had so much happen on 8 transcontinental flight,” explained the woman who flew the Atlantic alone. “The hatch of my plane blew off in a rainstorm and I had to land in Ari- zona to fix it.” Miss Nichols, prominent in Rye, N. Y., society, lost her chance to get in on even the $2,500 posted for the cross- country dash for women, as did Miss Earhart. LEAVES FOR AIR RACES. Ruth Nichols Hops Off After Repairs at Wichita. WICHITA, Kans, July 3 (#)—Miss Ruth Nichols, who was forced out of the transcontinental air race yester- day by engine'trouble and a faulty gear, took off at 7:47 am. to- es. ed on her plane over- The Rye, N. Y, aviatrix, ex- to stop at Albuquerque, N. Mex., 2 0 B-2 Perfect Black Rose Reported Produced ’ By German Grower By the Associated Press. SANGERHAUSEN, Germany, July 3.—The Sangerhausen Ro- sarium claims to have produced | a perfect black rose after years or experimenting. The rosarium, said to be the largest in the world, has an ex- hibition of 400,000 roses of 900 varieties. ORNSON TO DRAY SILARY OF S50 [Only 130 Positions to Be Filled at Present in Indus- trial Control Section. ‘The tremendous task of pulling buy- ing power out of its downward spiral and shooting it up to a healthy busi- ness state will earn for Brig. Gen. Hugh |S. Johnson, administrator of the in- dustrial control section of the national recovery administration, a salary of $15,000 a year, less $2,500 economy re- | duction, it was learned authoritatively today. An administration leader said the to- tal cost of the administration of Fed- eral control of industry would be $3,000,000 for the two-year emergency period. The fund will be allocated out jof the $3,300,000,000 emergency appro- priation. 130 Industrial Jobs. It becama known today that the - cial cabinet beard also has held :g:t only 130 positions would be necessary in the industrial control section for the time being. Sixty of these will be filled by deputy administrators, counsels. statisticians and other executives at salaries not to exceed $6,000 a year. Officials explained that as this emer- gency work spreads it will be necessary to take on more employes, but for the time being they thought a staff of 130 would be ample to handle the situa- tion smoothly. No inducement in the way of salaries is being held out by the administration in its effort to get the best talent pos- sible, it was explained. It was learned that should a man capable of earning approximately $50,000 be asked to take a position on Johnson's staff, he will be asked to make & sacrifice in the way of salary for the duration of the ad- ministration, officials said. Boerd’s Expenses Paid. The expenses of members of the va- rious special advisory boards of the administration during the time they are in conference here, are to be paid :ly‘t'he wc;vemménz. ummd.l will not e o0 seoc e hT af ng to the The special cabinet board met a few 4go to determine the salary scale, With the exmfinn of the administra- tor, it was today, the board de- ade‘% o‘go graduate mw.c:lhe llrom $1,400 ,000, according e im) of the position, officials said. R Johnson’s salary will be on_the same (Continued on Page 2, Column 7.) BIG AREA NEARBY RAVAGED BY STORM Clearer, Warmer Weather Is Forecast—Hagerstown District Hard Hit. | Clearing weather and sunny skies |were promised Washington for the| fourth of July by the Weather Bureau &wday after high winds and two heavy! | downpours of rain had scattered dam- | age through a large section, including Maryland and Virginia, yesterday and | had given President Roosevelt a rough ' trip up the Chesapeake on his return| |to Washington. | The damage in Washington was| slight. Hardest hit in the storm area | was Hagerstown and the Middleton Val- | |ley section In Prederick County, Md.| ‘:‘rk:ir; damage 'l;:ly ruzé ldl ll]llgh as sev- | undred Ousan( estimated. e The weather will continue cool to- | night and tomorrow will be fair with | rising temperatures. The wind, which, | whipping in from the northeast in the Chesapeake Bay area, brought with it | forebodings of more trouble, will die | down, the Weather Bureau said, having already reached its highest peak. This gt a weather freak, | make its influence felt in this area by afternoon, and the weather will quiet down and remain quiet through the | holidays. The deaths of two colored children |at Luray, Va., were the only fatalities attending the storm, as far as is known. Lightning struck the home of Eliza | Page there and killed two of her chil- | dren, Edward, 12, and Marle, 6. A (Continued on Page 2, Column 4. FOUR PERSONS HURT AS CAR OVERTURNS Two Frederick Girls and Fort Myer Soldiers Victims on Slippery Road Near Rockville. By & Staff Correspondent of The Star. 3 ., July 3.—Four motorists were injured when an auto- mobile in which they were riding skid- ded on the wet surface of the Frederick- Rockville Pike and overturned near here P krna 3. B . Beard, 20, driver of the car, m?:k Blrhnul:ufler'.ofl. both of Fred- , were en nearby hospitals !unn'?rltment i eir companions, Millard Lease, 21, and Archie C. Meade, 20, soldiers sta- tioned at Fort Myer, Va., escaped with minor cuts and bruises and were given first ald treatment by Dr. Esther F. Kuhn of Rockville. Dr. Kuhn admin- istered first-aid treatment to all fout, and Miss Huffer was removed to George- town University Hospital, where she was treated for shock and bruises. Miss Beard recelved severe leg injuries and was taken to Montgomery County Gen- eral Hospital at Sandy Spring. TO CONFER By the Associated Press. ANNAPOLIS, Md., July 3.—Members of President Roosevelt’s cabinet today braved the choppy waters of Annapolis Roads to board the cruiser Indianapolis at 12:45 pm. (Eastern standard time) ;:olr a special meeting with the Chief ve, Mr. Roosevelt was aboard the trim BRAVE ROUGH WATERS OF BAY WITH PRESIDENT “I am willing to die for the Presi- dent,” observed Secretary Ickes as he scanned the rolling sea, “but I won't get seasick for him.” But after assurances from Capt. Robert White of the Destroyer Ellis, the Secretary of the Interior and the other doubtful officials ventured aboard the sub-chaser and set out. ‘The anchored in Chesapeake Bay off the Naval Academy at'8:30 a.m., far. ahead of schedule on its speed trial run FEDERAL PAY AT TOBEETENDEDBY PRECUTVE ORDR 15 Per Cent Reduction Will Be Continued for 6 Months From June 30. PRESIDENT, ON CRUISER, MEETS WITH CABINET Further Dismissals and Possibility of Re-employment in New Set-ups Discussed. Government employes throughout the country who, since April 1, have been receiving 15 per cent reduction in pay, need not look for any relief from their cut before the first of next year. President Roosevelt has decided, after receiving the findings of the Labor De- partment regarding the comparative living costs, that the latter have not increased sufficiently to warrant a re- duction in the pay cut and an executive order extending this cut for six months from June 30 will follow shortly as a matter of routine business. This vitally important decision, along with a number of other important mat- ters relating directly to the personnel of the Federal Government, was dis- cussed today aboard the crusier Indian- apolis, riding at anchor in Annapolis Roads during a conference between the President and members of his cabinet. Re-employment Studied. According to representatives of the President at the White House, the ques- tion of further dismissals and separa- tions from the Government. and the possibility of re-employment in the new groups of activities now being set up, was one of the principal topics being discussed at this conference aboard i) ship. In addition, the President was repre- sented as being anxious to check up with his official family on just what has been going on in their various de- partments, and particularly with those members of the cabinet associated di- rectly with the building up of the ma- chinery to put in motion the national recovery and public works agencies., Re- garding these two emergency activities, the President was represented as wish- ing to discuss with his assistants the selection of State administrators and the salaries to be paid the various lieu- tenants selected to carry on these two powerful agencies for rehabilitation of industry and employment. Meeting With President. Those who met with the President included Secretaries Roper and Ickes, chairmen of the Industrial Recovery Board and the Public Works Board, respectively; Secretaries Swanson of the |Navy, Dern of War, Wallace of Agri- culture, and Attorney General Cum- mings. Henry L. Roosevelt, Assistant Secretary of the Navy, was also present. The absence of acting Secretary Phillips of the State Department bore out reports that the unusual gathering would not concern itself with the Lon- don Economic Conference. It probably was the first time that a cabinet meet- ing was ever held at sea. According to the economy act, which brought about the 15 per cent pay cut effective April 1 last, this was to remain in effect until June 30, when it was to be determined whether the cost of liv- ing throughout the country had in- creased sufficiently to warrant any re- duction in the pay cut. The act speci- fled that the Labor Department was to make the study of living costs based on the costs as of June 30, 1928. s study was recently concluded by the Labor Department, and the findings communicated to the President while on his New England vacation cruise, and after studying the findings the Presi- dent gave them his stamp of approval, which was equivalent to ord & continuation of the pay cut for six months, at which time the President will determine whether the cost of liv- ing has increased sufficiently for a re- duction. Definite Policy Awaited. It is hoped by many that the Presi- dent will shortly announce a definite policy regarding the re-employment the employes who have found them- ves jobless since the last day of the fiscal year as a result of the rigid re- trenchment, in the new Government agencles now being organized. At the White House no opinion as to what may be looked for in the way of a statement from the President on this subject could be obtained. It is said that the President is anxious to see that justice is done, and that every one ;flabemnedu{drlyuhm o so. The cabinet session aboard the In- dianapolis topped off a two-week vaca- tion of the sun-tanned execuiive. The the cruiser on her way here came only thim ‘nmtl:fimw?t:' the meeting had nothing o the strugg Lon- don Economic Conference. i Mr Roosevelt has told London that the gold bloc fight for stabilization of the currency is to win first, the true levels of all national currencies. the vacation-rested, Cabinet Members Wait Hour at Annapolis Before |, i Boarding Sub Chaser to Go to Cruiser. o