Evening Star Newspaper, July 6, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight and tomorrow; slightly warmer tonight; gentle westerly winds. Temperatures—Highest, 84, at 5 pm. yesterday; lowest, 65, at 5 am today. Full report on page 6. Closing N.Y. Markets, Pages 13,14&15 @h ‘WITH SUNDAY MORNING EDITION Entered as seco post office, Wa: nd class matter shington, D. C. WASHINGTON, D. G, THURSDAY, JULY 6, 1933—FORTY-FOUR PAGES. ¢ Foening Sfa The only evening paper in Washington with the Associated Press news service. * Yesterday’s Circulation, 114,016 Kk k¥ (UP) Means Associated Press. TWO CENTS. U. S. WINS FIGHT TO KEEP CONFERENCE IN SESSION: NEW POLICY ABROAD SEEN Money Topics and Tariff Are Dmppe«l. DECISION SEEN HULL VICTORY New Agenda Being Drafted for Next Session Menday. ®v the Associated Press. LONDON, July 6.—The Worldi Fconomic Conference will con-| dinue, but monetary and tarifi; gnatters will be excluded, the| Bleering Committee of the parley decided this evening. ‘ The decision came after a fu-| frious battle and was a victory for | Cordell Hull, American Secretary of State, who, on instruction from President Roosevelt, had stoutly insisted that the conclave must continue its attempt to solve pressing world problems. Couldn’t Reach Decision. France and other members of the Furopean gold bloc advocted formal conclusion for the major activities of | tha conference. The morning session of the Steering Committee lasted three hours and a half, but was unable to arrive at a decision. The evening session, however, | was comparatively brief, ending in triumph for the American position. In the meantime a Drafting Com- mittee, of which Secretary Hull was a member, had been at work on a pro- posed program of future activities for | the parley. | The conference, therefore, will con- tinue in session for the discussion of economic questions, exccpt tariffs. | The agenda for the conclave thus was | substantially modified from its original | form when the conference met June 12. | Official Communigue. An official communique issued on be- went ashore to receive an official wel- | mains foremost in his mind. In that $halif of the Steering Committee said: “Believing that the bureau (Steering Committee) is firmly convinced that the work of the conference should be carried on to all possible extent and as rapidly as possible, and in view of | recent circumstances that countries on gold find themselves obliged to that they cannot take part for the mo- | ment in any monetary questions, | “The bureau is in unanimous accord that, i | “First, every subcommittee meet as soon as possible to make up a Jist of questions on which discussion can be carried on with most useful re- | Its, | B Second, to meet as soon as reports of subcommittees have been received in order to make recommendations for the arrangements which ought to be made for the future work of the con- ference.” Program in Confusion. Exactly what work the conference can do was left in considerable confusion. The subccramittees are to study the| situation and report to the Steering sommittee on what can be accom-| pliched. ”\"hill\ according to American sources the subject of tariffs was not barred frem future discussions, members of the go'd countries delegations declared that they emphatically refused to take up | the treatment of tariffs. | The field of operation of the parley | was at any rate considerably reduced | by the Steering Commiitee’s cecision. | “In American quarters it was asserted | that despite the refusal of the gold bloc | to discuss any monetary questions, there | was a tacit understanding that the| committee on silver would continue its | work. The American delegation was sup- ported by the Canadian in the commit- tee and by a number of smallsr coun-| tries outside the committee in calling | for continuation of the parley. Had Favered Adjournment. 5 The life of the conference was save through insistence by President Roose- velt after the American delegation at London had definitely decided that ad- journment was the practicable course. But after receipt of the latest in- structions from Washington Secretary Hull swung his group against adjourn- | nt, and won. m'i?‘w;s authoritatively stated that the American delcgates meeting yesterday Yoted to accept adjournment, excepting Mr. Hull, who refrained from voting, and James M. Cox of Ohio, who was absent. "After yesterday's meeting of the dele- gation, when dissolution of the parley seemed inevitable, came a dramatic message from President Roosevelt call- ing for a fight to the finish. Under these rigid instructions Secre- tary Hull opened his fight against the | gold groups’ demand as soon as tha| Committee met this morning. His action | ~(Cortinued on Page 2, Column 6. THREE MUTINOUS CHINESE | WARSHIPS AT CANTON Seek to Negotiate Surrender, but Officials Spurn Offer Fearing Nanking Displeasure. ¢ the Associated Press. l!)HONC‘ KONG, China, July 6.—Three mutinous Chinese warships, the Haichi, Hiashen and Chaoho, from Tsingtao, arrived at the mouth of the Cantos River today and anchored there, avoia- jng Hong Kong lest they be detained. It was understood that representa- tives from the ships were sent to Cau- ton to negotiate a surrender to Canton | officials, but the latter announced they were not interested in the mutineers, whose adoption would be costly. It is reported, however, that the mutineers have been in close touch with Canton, which is said to covet the ships as compensation for the loss by desertion of the cruiser Chungshan at| Nanking last year. But fears of finan- | cial and other conseguences whicu might result from provoking the Nan- king government are understood to be operating in Canton circles. - It was alleged that the muuneeul cffered to join the Cantonese 19th Army at Amoy, 1-fused them, since it is financially de- pendent upon Nanking. ! REYKJAVIK, | They conquered wind and fog—so bad cheeks wreathed in a warm smile. |came from thousands of enthusiastic | The value of the wholesale dollar at | but thot the army|to 79. 4 housefurnishing goods, 72.8 to 73.2, and i Roosevelt Attitude On Parley Defended By Herriotin Press | By the Assoclated Press. PARIS, July 6—Former Pre- mier Herriot defended President Roosevelt's stand before the World Ecofiomic Conference in his newspaper Ere Nouvelle today. He asked the French for a better understanding with the United States and warned that “an association in which the Anglo-Saxons are not a part is insufficient to assure world TALIAN AVIATORS REST FORNEXT HOP Balbo’s Squadron Prepares at Rekyjavik for Jump to Labrador. By the Associated Press. Iceland, July 6— After winning another fight with fog, | 96 Chicago-bound Italian fiyers restsd today in anticipation of a second ocean hop to Labrador. The 24 seaplanes arrived in perfect order late yesterday from Londonderry, Northern Ireland 930 miles from here. | | | at times that they had to fly a few feet above the water. Their leader, Air Minister Italo Balbo, said he expected to stay several days before continuing the seven-lap cml.se" with a flight to Cartwright, Labrader, | 1,500 miles distant. On yesterday's flight the squadron averaged better than 130 miles an hour, | arriving at 5 pm. (1 pm., Eastern| standard time), after leaving London- derry six hours 50 minutes before. Balbo Welcomed Ashore. Thousands crowded the hills around | the landing port of Vatnagardar, near | here to greet the Italians. G:n. Balbo| | come. ! Scheduled stops after Cartwright are | at_Shediac and Montreal. i Meanwhile, Iceland proved itself an enthusiastic host to the armada. | The hearty greeting, which began as the planes alighted in the harbor, con- | bilize jts own currency ip relation to declare | tinued even more enthusiastically when | its own demestic mgllhl Ppower. Gen, Balbo arrived at the landing stage | by launch from Vatnagardar Bar and | received the civic welcome. | The official party at the decorated | should | landing stage included Premier Asgeir g9 ahead with stabilization negotiations. Asgeirsson and Mrs. Asgeirsson and the | | mayor of Reykjavik, Mrs. Jon Thor- brought nearer a solution, some Wash- laksson, together with the Italian offi- | cers who plans for the visit. | The premier held his 6-year-old daughter, who gave the air minister a bouquet Gen. Balbo bent down and kissed the youngster, his sunburnt Thousands Cheer Flyers. | ‘There were no signs of fatigue on the | commander’s face as he warmly greeted | representatives of the Icelandic state and of the Italian press. | After the grectings were concluded | the flyers and their hosts proceeded in | motor cars to Reykjavik. En route | Gen. Balbo expressed satisfaction with | the success of the cruise thus far. When the party reached a hilltop overlooking the town, hearty cheers onlookers, who had watched the pro- ceedings from the time the fleet first hove into sight. It took 24 motor boats 45 minutes to bring the aviators from their seaplanes to the shore. The Italians are staying in one of the biggest hotels in town, where rooms have been especially prepared for them. ! The Icelandic government had im-), ported Italian wines for Balbo and the other officers for the receptions to be given during their stay. Headquarters of the seaplanes is at Vatnagardar, where a special pier has | been built close by a hangar housing a repair shop. In a nearby building the | Italians installed a wireless station for communication with Rome. Finnish Maestro Dies. HELSINGFORS, Finland, July 6 (®). —Prof. Robert Kajanus, known as the grand old man of Finland's musical life, died today. He was a distinguished o Whole—sa!e Dollar Value of 1926 Hits Low Today of $1.49 Drops From $1.54 as Commodity Index Jumps 1.8 Per Cent. ‘The value of the 1926 wholesale dol- | |lar dropped from $1.54 to $1.49 today | |as the wholesale commodity index jumped from 65.1 to 66.3, or an increase of approximately 1.8 per cent during the last seven days, according to a report compiled by the Labor Department’s Bureau of Statistics. The value of the 1926 wholesale dol- lar reached its highest mark during the depression on March 4 last, when it was reported to be 68 cents above its base. The indices, computed by the bureau, are derived from price quotations of 784 commodities, weighted according to the | importance of each commodity and based on the average price for 1926 | as_100. | this time last year stcod at $1.55, ac- | cording to the report. | “During the last week gains were noted | in all but two of the major commodi- ties. The indices for chemicals and drugs slumped from 73.6 to 735, and hides and leather products were off from 83.5 to 83.3. The report shows gains were made in farm products from 65.1 to 66.3; focds, 614 to 62.6; textile products, 615 to 62.2; fuel and lighting, 63.6 to 64.3: metals and metal products, 78.9 9.2; building materials, 74.2 to 75.9; miscellaneous, 61.1 to 62.1. | the international convention for Home Subjects Put First by Roosevelt. FOREIGN TOPICS TO BE CURBED [Smaller Interest in Europe to Be New Order. By the Associated Press. Indications were seen in the Capital today that President]| Roosevelt now believes the United States, for the time being, can make better domestic progress against the depression by avoid- ing further international commit- ments. Some interpreters of political events claimed to have found many signs of a developing the- ory of American self-sufficiency. Among these, they said, were the President’s attitude toward the London Economic Conference and United States withdrawal from | the abolition of import and ex- port prohibitions and restrictions. U. S. Situation First. In silence, Mr. Roosevelt received an- nouncements of the intention to ad- journ the London Conference. He had instructed the American delegation to work to keep it going, but it was said he felt more real and lasting results could be achieved after the rest of the world sees clearly the results of the| domestic program. His final decision not to stabilize currencles now, as gold bloc nations de. manded, was no secret. The situation in the United States, it was said, re- domestic picture figures largely his plan | for a currency based on commodity | values. Meanwhile, he was represented as be- lieving that each nation should sta- Takes Up Recovery Plans. ‘When that has been achieved, the President is understood to be ready to Until the American problem has been ingtonians held, the President will con- that. A corresponding policy in the purely diplomatic field was forecast. In his program for this country, the President will concentrate on emer- gency legislation. Today, he called in | cabinet officers for a discussion of means to speed progress under the na- tional recovery act. Soon, he is to a] prove .the appointment of men who will handle the States’ portions of the $3,300,000,000 public works fund. President Smiles. President Roosevelt smiled in deep satisfaction today on receiving the news of the victory of the American delega- tion for continuance of the conference. The continuation was won without the yielding on his pcsition against the demands of the European gold bloc for | immediate currency stabilization. News of the salvation of the con. ference sped quickly through the Capital and brcught congratulations to President. “Theiwr bluff was called,” said Sen- ator Wheeler of Montana, who called at the White House during the day. He lauded the President for his firm position. The President offered no public com- ment on the turn of events. TEXAS THREATENED BY TROPICAL STORM Ships on Gulf Hasten to Sheltered Ports as Gale Moves West- ward. By the Associated Press. BROWNSVILLE, Tex., July 6—A tropical disturbance of threatening pro- portions, moving westward across the Gulf of Mexico, menaced the extreme southern tip of Texas today. Hurricane warnings had sent vessels scurrying to sheltered ports and resi- dents of some low-lying stretches along the endangered coast had evacuated. Commercial airlines were maintaing schedules through Brownsville, but their pilcts were prepared to leave without delay if the viclent winds expected were too much for hangars to withstand. The latest Weather Bureau check on the storm’s progress indicated it would strike inland somewhere ncar the mouth of the Rio Grande about noon today if it continued on its present course. SHEPARD BARCLAY SUES CULBERTSON FOR $100,000 Charges “G. M. C.” Libeled Him in Magazine Article on Con- tract Ranking. By the Associated Press. NEW YORK, July 6 — Shepard Barclay today sued Ely Culbertson for $100,000 on the ground of libel. He averred that in a recent article in his magazine Culbertson, under the pseudo- nym, “G. M. C.,” had defamed him in, criticisms of omission of Culbertson’s name from Barclay’s annual ranking of the best 10 contract players. “G. M. C..” said Barclay, “means Great Man Cul- bertson.” William J. Huske, acting for Culbert- son, who is abroad, commented that the article was not libelous, and that Barclay, in assuming to rank players, had laid his qualifications open to ques- tion. the | they got.” CHEER UP! WECAN AUTA TeEAM IN THE GAME AN BEAT THAT DEMOCRATIC SPEAKING OF SUPER STARS! BANKER KIDNAPED BUT MAKES ESCAPE Head of Atlanta Institution Safe After Abduction on Downtown Street. By the Assoctated Press. ATLANTA, July 6.—John K. Ottley. president of the First National Bank of Atlenta, was kidnaped early today on leaving home for his office, but escaped from his captors and is now safe at Suwanee, Ga. The Atlanta Journal said Mr. Ottley, in a telephone conversation with the paper at 1:05 pm., sald he was un- harmed. He told the Journal he was hailed | by a man from the sidewalk as hc slowed down to turn into Peachtree street, one of the city’s main thorcugh- fares, while on his way to the office. “Before I could ask him what he ,” Mr. Ottley was quoted as saying, “he stuck a pistol into my side and ordered me to get into the back seat.” | Another Man Takes Wheel. i “I complied with his order,” Mr. Ottley continued, “and got into the rear seat. In the meanwhile another had been here before to make | sider as secondary all things foreign to | man had walked up to the car and he‘ Simmons, cf. took the wheel. “We drove a winding route which I could not keep track of and arrived presently in some woods unfamiliar to me. “With his gun on me, one of the men then made me write a note to Mrs. Ottley, saying I had been kidnaped. | “I found later that a note had been dispatched to my home demanding a $40,000 ransom. This was how my| family learned what had happened | to_me. i “After T had written the note, one of the men was left with me and an- other went off somewhere. ~ ‘Won't Tell How He Escaped. | “I got away and made my way to| Suwanee, where I immediately got in touch with my home and office. “The men got less than $10 which I had on my person and that is su; Mr. Ottley would not discuss his| manner of escape. He said he had left for his® office about the usual hour and that it would | have been easy for any one who had | been watching his home to gauge the | proper time to intercept him. Suwanee is 30 miles north of At- lanta. GOLD BLOC ACCUSED OF ‘SHYLOCK SPIRIT’ Refusal to See Roosevelt's View- point Assailed by Officially In- spired Berlin Paper. By the Associated Press. BERLIN, July 6.—The officially in- spired Diplomatische Politische Kor- respondenz charges that the gold bloc at_the World Economic Conference is exhibiting “a shylock spirit” in refusing to see the viewpoint of President Roose- wvelt. “France, Switzerland and Holland are showing at least as intransigeant an attitude regarding the cardinal ques- tions of setting their respective houses | in order as the United States,” the paper says. | “Creditor countries belonging to the gold bloc do not want to recognize that it is unjust and immoral to demand of a debtor unqualified fulfillment of his obligations, although in terms of | goods he must produce almost double the amount due when he contracted the debt. “The American President saw the problem in a new light. The complete failure of the gold bloc upon the debt problem is the real reason for break- down of the London Conference.” BOLIVIAN OFFENSIVE IS REPORTED FAILURE Paraguayan Minister of War Says Drive on Fort Nanawa Didn’t Reach Goal. By the Associated Press. ASUNCION, Paraguay, July 6—A communique of the minister of war was given out this morning saying that a Bolivian offensive’against Fort Nanawa, in_the Gran Chaco border, had failea. The statement said ‘the enemy haa retired completely and would possibly R Bottsian uniquepreviously V] commi ique said Bolivian forces had won & distinct victory et Fort Nanawa and Fort Gondra. LS, READY TOFIGHT | Department of Justice as soon as con- | clusive evidence of the action is ob- Martin, 3b... Frisch, 2b... P. Waner, rf.. Klein, rf Hafey, of Terry, 1b. Berger, If English, Bartell, ss. . Hartnett, c. Wilson, c.... Hallahan, p.. Warneke, p.. O'Doul .. Traynor .. Hubbell, p. Cuccinello ... | OO o RO R ocooomo0000020000R0 comoOmMoO0COORNNRON O] ceoco oo praonoacd® los::afieaucanoaewu? [ I | I OAAIA‘9°=°QQQG==¢°=QQ=QF 33 2 824 xBatted for Wiison in sixth. - - | xxBatted for Warneke in seventh. xxxBatted for English in ninth. AMERICAN. AB. 5 3 S ol o ol Chapman, If. Gehringer, 2b. Rauth, rf. Gehrig, 1b. ... West, ef...... 1 [3 ol o o! Dykes, 3b Cronin, ss, R. Ferrell, c.. Gomez, p. Crowder, p. Grove, p. Averill .... | o o ©o0commoogmmoF ~OoOmomNmOORO =T | - laoee.u-n».on—.g._,o Iceeoan*aceeaeP o 31 4 92 1 xBatted for Crowder in sixth. SCORE BY INNINGS. 123466788 R National...0 0000 2000~ 2 American.. 0 1200100 x—- 4 SUMMARY. Runs batted in—Gomez, Rut . , ins batted In_-Gomez, Ruth (2), Mariin, 7 - L ome runs—Ruth. Frisc] Stolen bases—Gehringer. Sacrifices—R. Ferrell. Double plays—Gykes to Gehrig; Bartell to Frisch to Terry. Left on bases—National League. 5: Amer- ican League, 10. | Base on balls—Off Hallahan, 5; off Hub- | el Struck out—By Hallaban. 1: by Warneke, 2; n, 2 innings: off W neke, 6 in 1 innings; off Hubbell. 1 in 3 3 Got 2 in 3 innings: off mings. pitcher—Gomes; losing pitcher, Hallahan. Umpires—Messrs. Dinneen, Klem, McGowan and Rigler. BREAD PROFITEERS Cummings Weighs Complaints and Promises Quick Move on Offenders. By the Assoclated Press. Prosecution of persons profiteering in bread will be inaugurated by the tained. Attorney General Cummings said to- day he was studying complaints laid before him by Secretary of Agriculture ' Wallace that plans had been made to unduly increase the price of bread in various sections of the country. Bakers in some instances have said the jposed wheat prooessing tax was re:pgnrgthle for the contemplated in- crease. Cummings said that after going over all of the data he would issue a public statement as to his attitude and that it would be followed by action against profiteers, if any were found. Silent on Plans. He declined to indicate just what the action would be, but said it would be determined and designed to break up any practice of increasing prices more than were justified by the tax. Joining in a statement with George . Peek, chief ldn;lnlstm‘ of the farm act, Wallace sald marl agree- ments or codes of competition had been approved in no case under either the egricultural act or the industrial re- Eo S e instances anti- trust law prohibitions and not (Continued on Page 32, Columan 7.) AMERIGANS BEAT NATIONALS, 4102 Babe Ruth and Frankie Frisch Get Homers in All-Star Clash. By the Assoclated Press. CHICAGO, July 6—In the flashing pancrama cf base ball stars, the Ameri- can Leaguers defeated the National Leaguers, 4 to 2, before 49,000 specta- tors here today. The mighty Babe Ruth made a home run in the third inning to thrill the great crowd. Frankie Frisch of the | Cardinals drove a home run into the right field stands in the sixth. Before Frisch connected, Lonnie Warneke, ace of the Chicago Cub pitchers, tripled and scored on an infield out. Manager McGraw of the Nationals and Connfe Mack of the American Leaguers made frequent switches in their line-ups to give all the stars a chance. FIRST INNING. NATIONAL—Martin grounded out, Cronin to Gehrig. Prisch went out the same way. Cronin made a fine run- ning, one-handed catch of Klein's short fly. No runs. AMERICAN—Both managers shuf- fled their line-ups at the last minute. Jimmy Wilson went to catch for the Nationals and Pepper Martin went to third. Chapman was thrown out by Martin. Gehringer was the first player 0 | to reach base, drawing a walk with a | 3 and 2 count as Bill's slant zoomed in above his neck. The crowd roared as Ruth came to bat. After feeding the Bambino three straight balls, Hal- lahan got him with three straight strikes, the last one called. On the last strike Gehringer stole second. Geh- rig was out, Terry to Hallahan, who covered first. No runs. SECOND INNING. NATIONAL—Hafey's pop fly fell safe for a single back of second as Gehringer missed it after a hard run backward. Terry hit the first pitch for a single to left, Hafey stopping at second. Berger lined to Dykes, who threw to Gehrig to double Terry. Bar- tell struck out on three pitched balls, missing Gomez's curves by a wide mar- gin. No runs. AMERICAN—Simmons flied high to Berger. Dykes walked. Cronin also walked, strolling on a count of 4 to 1. The National League infield gathered about Hallahan as McGraw waved two | pitchers into action in the bull pen. Rick Ferrell flied to Klein and both runners stuck to their bases. Lefty Go- mez drew first blood by slapping a hard single to short left center, scoring Dykes. Cronin stopped at secand. Chapman forced Gomez, Bartell to Frisch. One run. THIRD INNING. NATIONAL—Dykes took J. Wilson's slow roller and threw him out. Halla- han got a big hand as he came to bat. Simmons made a fast dash to right center to get Bill's high one. Cronin went back on the grass to get Martin's ‘high pop fly. No runs. AMERICAN—Gehringer drew another walk with a 4-1 count. Ruth, with the count 1 and 1, hoisted one of Halla- han’s slants into the lower right field grandstand seats for a home run, scor- ing Gehringer ahead of him. The crowd gave the Babe a tremendous ova- tion as he doffed his cap and cantered around the bases with a wide grin on his face. Eddie Collins, coach of the Americans, did an Indian dance as Babe strutted his specialty. Gehrig drew still another walk, and Hallahan went to the showers. Out of the bull pen strode Lonnie Warneke, pride of the Chicago Cubs’ pitching staff, to replace him. Hallahan had allowed 3 runs, 2 hits and 5 walks. Simmons hit into a lightning double play, Bar- tell to Prisch to Terry. Dykes singled sharply past Martin. Cronin flied to Berger. Two runs. FOURTH INNING. NATIONALS—Alvin Crowder, right- handed star of the Washington Sena- tors, replaced Gomez on the mound for CAPITALIST TELLS PROBERS OF PROFIT INRAIL STOCK DEAL Pennroad Paid $170 a Share for Pittsburgh and West Virginia Block. KUHN, LOEB INQUIRY WILL WIND UP TODAY Senators Hear Frank E. Taplin of Cleveland Give Details of 1929 Transaction. By the Associated Press. Prank E. Taplin, Cleveland capitalist, told Senate investigators today much cf the stock he sold to Pennroad Corpora- tion in 1929 for $170 a share cost $52.50 several years earlier. ‘The stock in question was 222,930 shares cf Pittsburgh & West Virginia he sold to the Pennroad Corporation, Pennsylvania Railroad holding company, and had been accumulated over a period of years. Kuhn, Loeb & Co. advised the corporation on its financing. ‘The Pennroad Corporation paid $38,- 000,000 for the stock, at the rate of $170, when the market price was between $110 and $140. About half of the stock, or more than 67,000 shares, Taplin testified, was owned by members of his family or him- self. ‘The entire block represented 73 per cent of the outstanding stock of the Pittsburgh & West Virginia and Taplin said most of it was accumulated through a syndicate he formed in 1923. + Under examination by Ferdinand Pecora, committee counsel, the wealthy Ohioan submitted a complete list of owners of the shares he sold to the Pennroad Corporation. Some of the larger owners were: W. L. Haelinlen (Fearon & Co.), 10,370; R. S. McVeigh, 21,085; North American Coal Corporation, 30,720; W. C. Atwater, 13,650; A. B. Uhri Hearing Winds Up Today. The hearing today was to wind up the investigation of Kuhn, Loeb & Co., amli private banking in general until Fall. Previous testimony said the Penn- rcad Corperation, a holding compeny, which stockhclders had no voice in con- trolling, paid $170 a share for the stock when it was selling in the market at from $110 to $141. Others summoned today were H. H. Lee, president of the Pennroad Corpora- tion, and A. J. County, vice president of the Pennsylvania Railroad. ‘Taplin paid off the loan October 16 of that year. Taplin said he first discussed the proposed sale in 1926 separately with | W. W. Atterbury, president, and Vice President County of the Pennsylvania Railroad. He did not recall who initiated the discussions, but he said he was “in- clined to think” he did. | At that time, he said, he had con- | trol of about 200,000 shares under an | original syndicate agreement with the stockholders he named previously. ‘This agreement was dated July 20, 1923, and was closed with the sale of the stock. Sold Stock to Pennroad. ‘Turning to the stock transaction, Pecora asked Taplin if he sold the stock to the Pennroad Corporation, and the witness replied in the affirmative. “Was it your stock?” “It was under my control. partly mine.” “How much was yours?” “About one-half, meaning members of my family and the company I con- trolled.” “When did the negotiations com- mence?” “There had been discussions for two or three years.” Taplin organized the syndicate to get control of the railroad. He was pre- viously in the coal mining business. The only railroad official on the list | of stockholders, he said, was Frank Ginn, director and attorney for some of the Van Sweringen roads. “But_he is a personal friend,” Tap- lin explained, and it had nothing to do with his other railroad connections.” He said he couid not say offhand what the stock cost, but offered the syndicate books to show. Life of the syndicate expired in July, (Continued on Page 5, Column 2.) It was Balanced Budgets Asked as Price of Douglas Would Exclude States Failing to Meet Requirement. By the Associated Press. Lewis Douglas, director of the budget, proposed today that States be required to balance their budgets before the Fed- eral Government permits them to par- ticipate in the $3,300,000,000 public ‘works program. ‘The budget director, in fact, was pro- posing a cautious program all along on the public works campaign. To President Roosevelt he suggested elimination of many of the projects sub- mitted to the White House for im- mediate construction. Disturbed by prospect of a huge in- made | crease in indebtedness through the pub- Gehrig unassisted. Hafey fouled out to Dykes. No runs. AMERICANS—Rick Ferrell flied to Klein in short right. Frisch tossed out {Continued on Page 2, Column 5.) ACQUITTED OF EXTORTION General Judge Caffey Dismisses Case Against Lucian Pesco. lic works program, Douglas is urging that only projects which are absolutely sound and useful be undertaken. ‘The law gives the President power to withhold allocations of funds to States if their budgets are not balanced, and Douglas let it be known he wants this strictly enforced. Roosevelt, who also has laid down a | strict rule that the projects be neces- sary and sound, is culling over the list submitted to him by the special Public ‘Works Board and it appears likely to be_trimmed considerably. Early announcement of projects to be undertaken immediately is expected when the Président concludes his study. Alleged Communists Arrested. ALTONA, Germany, July 6 (P).— Seventy persons said to belong to a secret Communist organization, were U. S. Work Funds| OUSTING OF LORTON HEAD 1§ SOUGHT BY WELFARE BOARD Wilson Says Tawse Was Slated for Dismissal Before Food Rebellion. DECLARES FAVORITISM SHOWN TO PRISONERS Direetor Charges Inmates Were Permitted to Leave Reserva- tion in Violation of Rules. | Steps to remove A. C. Tawse as su- | perintendent of the District Referma- tory at Lorton, Va., have been taken by the Board of Public Welfare, it was re- vealed today by George S. ‘Wilson, wel- fare director of the District. Mr. Wilson's disclosure came in the midst of an investigation by Capt. M. M. Barnard, general superintendent of District penal institutions, of the re- |cent series of disturbances among the reformatory prisoners. Capt. Barnard is expected to complete his inquiry in the next few days. The move to oust Tawse, according to Wilson, antedated the food rebellion at Lorton, which started last Saturday, and subsided Sunday afternoon with the temporary furloughing of the re- formatory steward. The priscners blamed the disturbance on the poor | preparation of the food. Ordered Before Board. Wilson said the Prison Committee of the Welfare Board had been dissatis- fled for sometime with Tawse's admin- istration of the reformatory, and had made plans to replace him long before the outbreak among the prisoners. Wilson explained the board wanted Tawse to retire. Tawse, however, re- fused to sign his application for retire- ment for physical disability, but was cited nevertheless on June 29 to appear before the medical examining board of ;h;a Veterans’ Administration. Thus far has failed to me’rdlcal em‘hnp::r before the awse e no i of appearing before the med.tciaxitg:lm“e board. Moreover, said, he had poc. Tho crter: B docime o o 2B wg:‘so"m‘gfi;d clared, was given ilson physically lxfiflt to qlmthnt hTL:‘-;\extn’a‘s at Lorton, and wnless he appears before the Medical d he Eesummarlly dlsmmu‘g :grq g tion for re- fusing er of the Com- ers. ‘Wilson sald two candidates for Tawse’s post, both highly in prison work, already have been interviewed and an l;x;pommt could be'made without de- Prisoners Permitted $o Leave. ‘The chief complaint against Tawse, according to Wilson, 1s the favoritism he has shown toward certain prisoners, which naturally caused considerable re- sentment among the unfavored inmates. In several instances, he said, Tawse permitted prisoners to leave the reser- vation to come to Washington to trans- act business or see relatives who were ill. In each case, the prisoners were ac- companied by a reformatory attache, but Wilson declared such action con- stituted a violation of the rules and as a result the Welfare Board issued & special order forbidding any inmate from leaving the reservation in the fu- ture without the permission of Capt. Barnard. Two Were Bootleggers. ‘Two of the prisoners who were al- lowed to come to Washington, it was said, were notorious bootleggers. One of them was allowed to leave to visit his wife who was sick, and upon leaving his home, it was declared, upbraided a policeman for arresting a friend. Another prisoner, Mr. Wilson said, was allowed to visit Washington to transact some important business, and while in the city stopped at a bank and withdrew more than $100 which was taken form him when he returned to Lorton. Prisoners at Lorton according to Wil- son, are not permitted to carry money. All money, he explained, is taken from them and kept in possession of the re- formatory officials, and none of it can be spent without tbe approval of the authorities. Wilson said the welfare board was satisfied that Tawse was actuated solely by a desire to “do a favor” for the prisoners who have been given spe- cial privileges, but thst such humani- tarism toward the inmates was in vio- lation of the rules, and established & bad precedent toward maintaining dis- cipline at the institution. Brought Here From Richmond. Tawse was selected by Capt. Barnard as superintendent of Lorton because of his long experience in prison work. He was a specialist in prison industrial activities, and was brought to Lorton from the Virginia State Penitentiary at Richmond, where he had charge of th%_ industrial work among the inmates. a DOLLAR PRICE GAINS U. S. Currency Closes at $4.493; to the Pound. LONDON. July 6 (#).—Uncertainty regarding the outlook somewhat re- stricted operations in the foreign ex- change market today and caused irregu- lar movements of the dollar which gained 333 cents on the day. Opening at $4.50 as compared with the overnight price of $4.52%;, the dol- lar encountered a fair amount of buy- ing adnd appreciated to $4.473; to the und. Later the rate weakened to $4.51 on light offerings but recovery followed, bringing the closing price to $4.493;. General support was forthcoming for gold currencies which experienced fur- ther slight improvement. I GUIDE FOR READERS I Amusements Comics Features . Finance . Radio .. Serial Fiction . Society .. Sports i