Evening Star Newspaper, July 6, 1933, Page 17

10 APPROVE USE OF GAS TAXFUNDS Permission to Use $1,500,- 000 After Careful Study of Plan Indicated. TALKS WITH ROOSEVELT ON R0AD-BRIDGE WORK Assumes Open Mind on Spending Surplus Gas Taxes, but Prefers to “Go Slow” at Present. The Budget Bureau “very likely” will approve the proposal of the District Commissioners to spend $1,500,000 of surplus gasoline taxes on highway and bridge projects, after a careful study of the plan, Budget Director Douglas in- dicated today following a long con- Jerence with President Roosevelt. The Commissioners’ proposal was discussed at some length at the White House, along with other public works problems, it was karned. Douglas made it plain after his talk with the President that his disapproval of the gasoline tax expenditure as ex- pressed in a letter to the Commissioners was not final, but merely a temporary postponement unti! further study could be made as to the merits of the plan. Prefers to “Go Slow.” Mr, Douglas gave assurance he has an open mind regarding the spending of the surplus gasoline tax money, but for the present he preferred to “go slow” and to determine “just where we are heading in spending the public money on public works.” Mr. Douglas indicated that after he has had an opportunity to study the public works program further it may be likely he will approve the Commis- sioners’ request the next time they make it. “Congress gave me auth upon the expenditure of of the gas tax money,” Director Douglas said explaining his position. “The District Commissioners wrote me a let- ter several weeks ago outlining their pan to expend this sum and asking my approval. I replied at the time that I could not then approve the proposal because I wanted to wait and see what was going to happen under all of this publiz works program. “The Dist Commissioners recom- mended proj in Washington total $22007,000, but bfore I gave my ap- Troval to any of this I want to see where are going. I firmly believe that we should proce~d slowly and with < derable th t before lavishly spcond the public’s money” Letter to Commissioners. Director Douglas’ letter to the Com- cners, received last Friday, which | not made public at that time,! ¥ to pass 1,500,000 | | m reads ~I have received the communication of your budget officer, Maj. D. J. Dono- van, dated June 23, recommending my approval of certain items of expendi- ture to be made out of the gasoline tax fund, as provided in the District of Columbia appropriation act for 1934, in the aggregate of $1,500,000. “The discretion éntrusted to me by this act is very distinetly circumscribed by the provision that such expenditures shall be in aid of relief of unemploy- ment. Both the terms of the act, and statements made in debate on the floor of the House of Representatives, con- firm me in the opinion that the needs of unemployment relief must be given | prime, if not exclusive, consideration in | making my decision. “Since this appropriation act was dis- cussed in the committees of Congress Mhere has been approved the national industrial recovery act; which, among jother things, makes a large provision (for grants for the building of roads, under which I understand about $2,- 000,000 is to be allotted to the District of Columbia. In addition, the mnews- papers report that the Public Works Administration is to be requested to make other allocations for expenditures jwithin the District of Columbia in aid ‘of relief to unemployment. Part of National Program. “The program to relieve unemploy- fment must, necessarily, be national in iscope. I do not believe that I could iproperly exercise the discretion vested *in me without considering the require- ments of the District of Columbia in the light of the national program. “Having in view all these considera- tions, I must advise you that I feel that I must be guided very largely by the opinion of the public works admin- istration. Until that administration has studied the national situation and formulated its plan, and particularly until we have more light upon the whole of the expenditures which are to be made within the District of Co- lumbia, I do not feel that I can prop- y_pass upon your recommendation. There is contained in your letter & statement that the funds appropriated to the District of Columbia for direct relief will be exhausted by February 1, and that there will be further require- ments after this date. T would be re- miss in my duty if I let this statement pass unnoticed. I must suggest to you, therefore, the consideration whether the administration of this fund, as such ad- ministration appears to be contemplated from the terms of your letter, agrees with the provisions of the anti-de- ficiency act. D. C. CLERK IS LET OUT AFTER LOSING HIS HOME Member of Well Known Colored Family Left Without Any Salary Due to Economy Program. Losing his home last month because galary reductions prevented him from keeping up the payments, Marc Terrell, colored clerk of the office of recorder of deeds, this month is without any salary because he was among those Cismissed under the economy program in the District of Columbia government. Terrell is a member of a colored family which _enjoyed distinction through Judge Robert Terrell of the Municipal Court, and Mrs. Mary Church Terrell, once a .member of the District of Columbia School Board. His wife, Mrs. Ethel Webb Terrell, is a public school teacher and while he had expressed fears for the security of her position, it was explained at the Frank- lin School Administration Building this morning that her dismissal “is not con- templated. Terrell is 31 years old and a native of Birmingham, ‘Ala. Since he has been in the District service, he says, his efficiency rating has been 90 per cent H's dismissal is one of 15 under inves- tigation by the Civil Service Board of Feview with a view to determining the ccuses and methods by which he was service, separated from the | | | ther Man Likewise Says Hot Spell May Come From North Pole. eal i | i i | \ BY THOMAS R. HENRY. COLD wave may come from the Equator and a hot wave from the North Pole. ‘This paradox offers the sim- ‘A plest explanation for the un- precedented cold spell early this weex, according to United States Weather : Bureau meteorologists. Search of the records has failed to show any strictly comparable weather phenomenon. A cold spell ordinarily is due to a moving “high”—a mass of cold, heavy 2ir which iorms over the Arctic Basin and pushes southward, usually over fairly well defined routes. The forma- tion of the high can be detected. But on Sunday, according to Charles L. Mitchell, Weather Bureau forecaster, there was only an extremely slight high pressure area reported over Hudson Bay, while “lows” were reported over the Canadian stations of Chesterfield Inlet and Churchill, which are key points for the weather in this part of the country. This indicated strongly that there was no reserve of cold, heavy air piled up in the polar region, and hence none to make its way southward. Yet there followed one of the most extraordinary cold spells on record. Where did the cold come from? For some time, Mr. Mitchell ex- | plained, some meteorologists have held that the real source of cold is the Equator, or rather the stratosphere over the Equator. The stratosphere is the atmospheric level about 10 miles above the surface of the earth, above which the temperature ceases to decline with increasing height. It was the region reached by the Picard balloon ascen- sion, and what happens there is usually unknown. It is known, however, that the strato- sphere is higher over the Equator than over the Polar regions and conse- quently is colder. The theory is that in such a prenomenon as the one early this week, when the Arctic regions ap- lparem,ly have no cold to spare, this WASHINGTON, uator CHARLES L. MITCHELL. —Underwood Photo. cold is supplied by highs moving north- ward 10 miles or more above the earth’s surface, sinking to lower levels, and then coming southward along the established routes. Because of the relative inaccessibility of the stratosphere, Mr. Mitchell ex- Elni.ned, it is impossible to test this ypothesis. Such a test with numerous and continuous pilot balloon observa- tions would be extraordinarily ex- pensive and would have to be con- ducted on an internatiopal scale. For the present what is happening in the Stratosphere must remain an unknown factor in weather predicting. Another unprecedented bit of weather phenomena is the present Caribbean hurricane which yesterday was on its way westward, apparently toward the coast of Texas or Northern Mexico. Examination of the maps shows that the low pressure area, or cyclone, re- off the coast of Venezuela farther hurritane cyclones usually develop in the Eastern Caribbean considerably to the northward. DENTFY SUSPE N BANK ROBBERY Witnesses Confront Man Held in $7,600 Hold-up at Police Line-up. Spencer Walden, said to be a fourth man in the $7,600 hold-up of the of the Washington Mechanics Savings Bank three months ago, was positively identified by witnesses at a secret police participants in that affair, it was said by Inspector Frank S. W. Burke, chief of detectives, today. has confessed to being a participant in the $9,000 robbery of the Georgia ave- nue branch of the bank in June, 1932, and in the $14,000 hold-up and robbery of the branch at Ninth and East Cap- itol streets in January of 1932. A line-up is to be held tomorrow to enable witnesses to identify Walden in connection with the two other banl robberies in which he is said to have admitted participating. Walden, about 30 years old, is lodged in a precinct here. He was brought frem Philadelphia about a week ago, but his arrest has been veiled in secrecy because detectives did not want it pub- lished until they had investigated vari- ous other phases of bank jobs here. Abraham Reefer and Max Zove, two other members of a group to which Walden is said to have belonged, for- feited $10,000 bond each in District Supreme Ccurt here yesterday through their failure to appear, although they are now serving prison sentences in Pennsylvania following their apprehen- sion in Philadelphia. John Cahill, another alleged member of the group, is under $10,000 bond. Meanwhile a fifth man is being sought. e HISTORIC SILVER STOLEN DURING OWNER’S ABSENCE A set of flat silver and a number of trays and goblets handed down from generation to generation among de- scendants of Gen. Uriah Forrest of Washington’s staff have been stolen from the home of the Colonial soldier’s great-great-granddaughter Miss Georgia F. Green, 3122 Q street. ‘The robbery was discovered yester- day when Miss Green returned from a brief holiday trip. A burglar had gained entrance by clipping a screen from a window. The home was ran- sacked and a number of other articles taken, including a quantity of antique jewelry. In addition to knives, forks and spoons, the burglar took several trays and goblets. In all, 75 pieces were in- cluded in the loot. The silver, Miss Green said, had been in almost daily use since Revolutionary days. A description of the missing articles was furnished police. PLAN RIVER EXCURSION Members of the District of Columbia Division, Young Democrats’ Club of the Potomac River tomorrow night on the steamship City of Washington. The members are to gather at the Wilson Line dock and leave at 8:30 o'clock. The affair is one of the list to be arranged by Mrs. Helen Grffin, chair- man of the Social Committee. Assist- ing her are Mrs. Thelma Ross, secre- tary to Senator Kendrick of Wyoming; Miss Lyda Mae Francis, Miss Helen Hylton, Miss Rita Cannon, Ralph Law- rence, Winfield S. Magill and Bradford | Ross. Eighth and G streets southeast branch | line-up Saturday night as one of the | Inspector Burke said Walden also | American, will make an excursion down | J. GRAND JURY SWORN James Arthur Gibson Named to Head Panel During Summer Term. After being sworn in by Justice Peyton Gordon of the District Su- | preme Court today the new District grand jury elected James Arthur Gib- | son, 4710 Fifteenth street, to serve as its foreman during the Summer term. Other members of the jury are: Walter E. Button, 2408 Nérth Capi- tol street; Julia A. Cain, 1323 Hem- lock street; Vernon E. Chappell, 4913 Forty-third street; John F. Claybourne, | 1000 Pennsylvania avenue southeast; Horace M. Craven, 3604 Van Ness street; Theodore Dietrich, 2027 Ben- k | ning road northeast; K. C. Everett, | 919 L street; Robert W. Fuller, 2333 Ashmead place; William C. Gray, 2707 | Adams Mill road; Mabel F. Herrell, | 2716 Thirty-fourth strect; H. C. Ins- coe, 235 Twelfth street southeast. Joseph R. Johnson, | street southeast; 3619 Thirteenth street; Mrs. Ruth Ann Langley, 5432 Thirty-second street; | Paul D. H. Leman, 4604 New Hampshire |avenue; - William L. Radcliffe, | Klingle road; Mrs. Mary E. Redding, 4425 Ninth street; James F. Salkeld, 3017 Cortland place; Cassie L. Suther- land, the Chastleton; Ruth M. Turner, 2226 Otis place northeast; Fannie Kolb, 3620 Connecticut avenue; Mrs. Madeline C. Beckwith, 1903 Fourth street, and Harry Sherwood, 1832 Biltmore street. Marriage Licenses. Walter Christ. Soldiers' Home, and Dor- othy Sauitierl, ‘21, Capitol Helghts, Md.; V. C. 8. Briges. Hyattsville, Md., and Henry L. Sousaren, Mary G. , 1462 Newton st.; Godey, . Moran. Burrows, jr., 2 L. Bolki 3802 Yuma st., Rev. J. % Edmund §. and Hil 345 Wisconsin W. Va, 9 1ith st . W. Best, 1. Charles! Olivia M. 'Atheérton, 25, Rev. A. OWS. . 1345 2nd st. and Ruby , 1336 11th st.; Rev. F. A. Ciyz. James W. Keeso, 33, Marine Barracks. and Edna G. Piaisted 21, Wateriown, Mass.; ) Rcy. J_'H. Dunham. Roy H. Bovard. Walter Reed Hospiti and E. C. Ossenbach, 19, Readini Rev. Frank L. Miller. Floyd E. Johnson. 31, lotte. N. C., 34,2330 Park pl. . West Amelia * Hobb: : Rev. L. 1. McD Farmsvil ton, an 419 = e Point, Vi 5. Newport le. le. Va., and ame address; Rev. Howard F. Downs. Jecob Bernsiein. 50. Baltimore. and Maude Kite, 39, Syria, Va.; Rev. Nathan Cayton. Edward L. Cinis, Baltimore, and Mar- garet E: Jackson, Capitol Heizhts, Md., ds, 18, Suitland, Md:; 1. 'and P. I. Covington. 20, a.; Rev. J. E. Biges. .'and ‘Mildred E. Mapes. 26, ; Rev. J. L. Cole . L. Cole. and Anna F. Brad- ichmond, Va Rev. . “W.” Henderson. 05 Champlain st and Laura Cole: 433 Corcoran s Rev. K. W. Roy. Albert J. Burke. 24. 503 Que st., and Fannie Starks, 26, 423 Franklin st Rev. J. T. <. Broo) James Brooks, 51 Girard st., and M. E. Lewter, 19, 1023 Columbia rd.; Rev. J. M. King. . N." Cox. 711 13th . and Lucille” Wo 22, 1120 X Rev. N. J. TE. P. H. ‘Wiggins, 29. 208 Massachusetts av: and Hattie N."Ryles, 19, 1620 Swann sf M. H. Randoiph. 941 O st. and Ethel K st.: Rev. A. J. Tylei . same address; Rev. of it: 3 , 21, e: . both of ~Ri 3. McCartne: 27, st. n. odson, 3rd Moo! garet Evans, 27. ones. {HORSES USED BY INDIAN SCOUTS SUFFER 15 PER CENT REDUCTION Controller General Rules That Daily Allowance of Mounts Be Cut From 40 to 34 Cents. Lo, the poor Indian is a little lower. Controller General McCarl today ruled that the Indian scouts at Fort Hua- chuca, Arizona, must suffer the 15 per cent economy act cut in the 40-cent daily allowance for the use of their horses, bringing this item of Govern- g;ent e;pemumm for transportation to cents. McCari’s decision came in response to quety from the chief of finance-of the | ¢ , who advised that the April de- | Army, duction of $1.80 had been made—just in case—and asked if the scouts should be reimbursed. But horses and men are all the same in the controller general’s books, and McCarl said no refund was due. The scouts, presumbaly, have the privilege of walking off the 6 cents’ worth if the horses object to the reduc- tion, but the contr: general’s de- cision didn't go into The Fa DOUGLAS EXPECTED iOrigin of Recent Cold Wave May Have Been at Eq sponsible for this hurricane originated | south than any hithertc -known. The | FOREMAN ELECTED 772 Eleventh | Edward C. Knouse, | 3140 | D. C, BANK DEPOSITORS WILL BE TOLD HOW TOCOLLECT MONEY 75,000 to Get Merger Letters With Opening Likely on August 1. FORM GIVES DETAILS FOR PRESENTING CLAIMS Conservators of Eight Member Banks Busy Getting Statements of Accounts Ready. Letters were being prepared today to inform the 75,000 depogitors in the new Hamilton National Bank merger ias to the method they must use to get their money when the bank opens, prob- ably August 1. The form for these letters will be the same for each of the eight member banks of the merger and was under- Stood to be in the final stages of prepa- ration today. Legal experts of the Treasury De- partment were completing the form of this letter, and as soon as it is ap- proved, it will be forwarded direct to the eight conservators in charge of the member banks of the merger. The conservators then will send them out to all their depositors. Details of the letter and the instruc- tions which it will contain were not available today, but it was understood that with the letter there will be sent to each depositor a Yorm for proving | the depositor’s claim. This form will contain complete instructions as to what the depositor must do to get his money. It is believed the plan will be for the depositor to file this form, duly certi- fied, at his old bank. When he does this, it will open the way for him to get 50 cents on the dollar of his de- posits in the new Hamilton Bank. Five Sites to be Abandoned. In view of the fact that five of the banking houses are to be abandoned, the depositors will be informed how thev can arrange to get their money from a new Hamilton branch. The old banking houses to be abandoned will not pay out any money. These places will be used only for proving claims of depositors and include the District Na- tional Bank headquarters and its two branches, located at Connecticut avenue and K street and Ninth street and New York avenue; the branch of the Federal American National Bank & Trust Co., Washington Savings Bank. The nine places where money will be available are the Federal American headquarters, and its three branches, in Brookland, at Du- pont Circle and at Pennsylvania avenue and Twentieth street; the Potomac Sav- ings Bank, the Northeast Savings Bank, the Wcodridge-Langdon Savings and Commercial Bank, the Seventh Strect Savings Bank and the United States Savings Bank. % Conservators of the eight member banks today were busily directing the | clerical work preliminary to getting the statements ready for depositors. Ex- actly how the depositors will be in- formed of the amount available was not disclosed prior to the final approval of }the official letter and the official form, |but it was believed that this letter, {vhich each depositor scon will receive | direct frem his conservator, will con- tain the figures showing his account. | | Where depositors have more than one account, arrangements are being made to consolidate the report so the depos- itor will be informed officially as to what he has in his checking account, his savings account, his Christmas sav- ings account or on certificate of deposit. The task of getting out these leters, of course, will be tremendous, even after the conservators receive the nec- | essary form. It was expected this form | would likely reach the conservators to- mOrrow. Loans Reorganized. Meantime, the member banks of the { merger are reorganizing their loans with the Reconstruction Finance Cor- poration so as to provide for their quick assets being turned over to the Hamilton National Bank to provide for payment of the 50 cents on the dollar. Progress also was reported today in the plan of the Franklin National Bank to reopen alone outside the merger, al- though the final preparation of its plan to reopen has been admittedly slow. This bank has had in hand for some time the necessary amount of depositors’ agreements from depositors represent- ing more than three-fourths of the deposits in the bank. But many other details of the reorganization of this bank have been slowing up the pro- cedure of reopening, so that it was im- possible today to predict just when this bank would reopen. The Treasufy De- partment has promised it will reopen alone as soon as it can be properly prepared. concerning personnel. At the Park Savings Bank four dif- ferent committees are studying the probiem presented by the tangled affairs where Robert S. Stunz, the vice presi- dent, committed suicide, leaving a shortage of about $1,700,000. An im- portant statement is expected with the next 24 hours from the so-called De- positors’ Committee, headed by J. W. Thompson. This committee has been working on a plan, the details of which are not disclosed as yet, but which they hope to put into operation to gain a much larger percentage for the deposi- tors than would be possible through a receivership. There is a sharp differ- ence of opinion between this committee and the three other committees at the Park Bank over the question of a Treasury Department receivership, the Thempson Committee being stoutly op- posed to the Government appointing a receiver under the direction of the con- troller of the currency. Badges Are Planned For D. C. Police After Retirement Retiring policemen will con- tinue to wear duplicates of the badges they had during their gervice, 1f plans of Inspector W. G. Stott, head of the Police- men’s Retiring Association, go through. The badges will show on their faces that the holder has been retired, and engraved on the back will be an inscription to indicate service performed. chlcasa. New York and mfl; more policemen already present retiring officers with similar badges. Inspector Stott said such badges would be presented all members of the association who already have retired as well as those who ratire in the future. Maj. E. W. Brown, suj tend- ent of police, has the plan. eni BUNDAY MORNING EDITION at Fifteenth and H streets, and the| Among the difficult questions facing ' this bank are understood to be those | !Po]ice Car Parked For Several Days Too Near Fire Plug Machine of Detective Is Ticketed—Maj. Brown Orders Inquiry. It took Maj. Ernest W. Brown and Inspector L. I. H. Edwards, superin- tencent and assistant superintendent, respectively, of the Metropolitan Police Department, to discover that a car which had been parked by a fire plug near headquarters for several days was a police car. It had been ticketed—the slip showed beneath the windshield wiper—but re- mained in the spot, where it was seen both Sunday and Monday by the major and the inspector. It had a smashed fender, too, they noted. ‘They took the number. It was found to be a police car which had been issued to Detective Frank M. Alligood of the automobile squad. Alligood ex- plained he left the car for his partner, Detective J. E. Kenney, and it appears Kenney didn’t get it. Alligood went on leave of absence after leaving the car, and Monday Kenney was sent out of town on police duty. And thus starts another Police De- partment “investigation.” Inspector William G. Stott, in charge of department property, expects to have a report, together with his recom- mendation in matter, ready to-| morrow. | RELIEF FUND SHARE | FOR GOUNTY ISCUT {Prince Georges to Receive Only $1,000 After Slashes by State Auditors. By a 8tafl Correspondent of The Star. UPPER MARLBORO, Md., July 6.— Prince Georges County will recelve sev- eral hundred dollars less than it ex- pected from the Federal Government for unemployment relief, the County Welfare Board learned yesterday a few hours before State officials were assured that Federal aid would be forthcoming for whatever relief needs cannot be met in Maryland by private charity or tax tunds. At a hurriedly arranged conference with Gov. Ritchie last night, Harry L. Hopkins, Federal relief administrator, disclosed that he has two $250,000 Fed- eral appropriations at his disposal. One of these is to be expended to ald States on a basis of $1 for every $3 in public funds that have been spent for relief. From the other Mr. Hopkins may extend aid at his discretion. “Mr. Hopkins says he is going to recognize the situation in States, such |ag Maryland, where very little public i money has been used for relief and see | that they are not unfairly discriminated | against,” Gov. Ritchie said after the | conference. “To do that he is going to | | use his second $250,000.000 fund.” Allowance Cut to $1,000. Placing their blic relief expendi- tures at $4,800 during the first three months of this year, Prince Georges County Welfare Board last week sought | $1,600 from the matching fund. State auditors who reviewed the county’s re- quest, however, found that the $4,800 included some money spent for out- | pensioners and made cuts which re-| ‘d;xc%% the county’s allowance to about + $1,000. Inasmuch as the Federal Government |is insisting that its funds be handled | by trained social workers, the $1,000 |would be further curtailed to pay a | trained worker, leaving very little for relief. As Mrs. W. L. Preston, secre- |tary of the County Welfare Board, be- an registering unemployed who will seek to earn some of this money on | work-relief projects to be sponsored by the board, members of that body were perplexed by the problem of find- ing additional funds to carry out its program. Until it learns more accu- rately how much money will be at its ! disposal, the board will not complete details of its work-relief projects. News that the county, along with the rest of the State, may share in the $250,000,000 fund to be distributed at Mr. Hopkins' discretion was welcomed i by the board and is expected to result ' in a request for an allotment in addi- tion to the $1,000 expected from the matching fund. After last night's meeting with the ' Governor Mr. Hopkins said the next step | would be “a meeting of minds” to de- termine what the aggregate needs of the State would be and how they should be apportioned between private charity, State, county and municipal tax funds and Pederal relief grants. Deals Only With States. ‘The Federal relief administrator em- phasized that he did not intend to con- cern himself with the internal affairs of States. He said he would deal only with States and that it was no concern of the Federal Government how the State governments distributed Federal relief grants among their political sub- divisions. He declared, however, he intended to ! see that adequate relief standards were maintained within States. If any com- munity is found to be “slowly starving the unemployed,” he said he would withhold Federal aid. Miss Anita J. Faatz, State supervisor of social welfare, who attended the con- ference between Mr. Hopkins and the Governor, said she would begin at once to collect data for estimates of relief 1 needs throughout Maryland for the next nine months. INJURED GIRL IMPROVES AFTER LEG IS AMPUTATED Her left leg amputated above the knee, Blanche Israel, 20-year-old Green- | wood, S. C., girl, who jumped from a fifth-floor window at the Ambassador Hotel, was fighting valiantly for life to- day at Emergency Hospital. The am- putation was performed late yesterday by Dr. Thomas Bradley. Her right leg, fractured and crushed, also may have to be amputated as her condition continues critical. Meanwhile, Ernest Morgan Headrick, |’ {Chesapeake Bay Bivalves Found to Attach Themselves 45, of Knoxville, Tenn., who registered at the hotel as the husband of Miss B S Ro ntion was requesf e e&‘e Knoxville Juvenile Detective Sergt. George Darnall said he would take Headrick into Po- lice Court tomorrow for commitment on a fugitive warrant to await arrival of papers from Knoxville. GIRL’S EYE REMOVED A fight physicians at Emergency Hospital to save the right eye of 13- ld Rose Mary Lamb, 710 Virginia ey M;rred ‘Tuesday an exploding firecracker, was lost last night when it became neces- sary to remove it. ‘The girl was injured while on the Monument lot, where she had gone to witness the fireworks display, when some own person threw the fire- sracker which exploded jn her face, _, | q Star THURSDAY, JULY 6, 1933. REVEALS BIG JOBS ON SMALL CAPITAL Cities Service Subsidiary Did $6,659,405 Worth of Work on $10,000, Witness Says. TRADE COMMISSION TOLD OF CONSTRUCTION UNIT Andrew W. Wilcox, Examiner, Says $4,484,671 Plant Was Sold for $10,844,583. By the Associated Press. The Federal Trade Commission was told today by one of its examiners that the Lakeside Construction Co. had done $6,659,405 worth of work for subsidiaries of its parent company, Cities Service, on a capitalization of $10,000. The hearing before the commission, part of a general inquiry into the capi- tal structure and method of rate mak- ing by utility companies, centered on a construction job by the Lakeside con- cern for the Public Service Co. of Colo- rado, one of the Cities Service subsi- diaries. Andrew W. Wilcox, the examiner and accountant for the commission, testi- fied that this project. known as the Val- mont Plant—near Boulder, Colo.—cost the Lakeside Construction Co. $4,484,- 671, but that the cost to the Public Service Co. of Colorado was $10,844,583. “The officers and directors of the Lakeside Construction Co.,” Wilcox tes- tified, “are employes of Henry L. Doherty,” dominant in Cities Service. All of the expenses, including or- ganization and qualification in various States, taxes and directors’ fees, Wil- cox said, “are -capitalized in turnover of completed construction s U Control Capital Stock. “The amount of profit realized and the fees collect:d accrued to the credit of the Cities Service Co. by virtue of its contrcl of the construction com- pany through ownership of $10,000 capital stock “The total amount of cash profit realized by the Cities Service Co. through the Lakeside Construction Co. was $2.213,201, and it also received $2,500,000 par value of common stock of the Public Service Co. of Colorado, a wholly-owned susidiary.” The agreement between the Lakeside and the Colorado companies for the Valmont project, Wilcox said, “resulted in a write-up of the fixed capital ac- counts of the Public Service Co. of Colorado amounting to $5,629.005." “This figure,” Wilcox continued, “represents the difference between $10.- 125,000, recorded in its (Colorado com- pany) fixed capital accounts as thz purchase price of the completed plant. and $4,485944 as the final reccrded cost of the construction.” Counsel Denies Profit. A formal statement handed to news- paper men by Robert Burns, counsel for the Lakeshire Construction Co., said: “No profit was reflected on the books of Cities Service Co. as a result of this transaction. “Whatever claimed write-up resulted from the construction of the Valmont plant was more than offset by write- downs and other similar items which ‘occurred in property, taken as a whole. “A large part of the so-called profit consisted of common stock issued by the Public Service Co. of Colorado which did not represent any cash cost to the Colorado company nor profit to Cities Service Co., since the latter already owned 100 per cent of the common stock of the Colorado company.” The Lakeside Co., Wilcox said, was organized in Delaware in 1923 and li- censed to operate in Colorado, New York, New Jersey and Tennessee. Among the construction projects done for Doherty affiliates in States other than Colorado, Wilcox testified, were a $398,309 project for the Republic Light, Heat & Power Co. and a $137,939 project for the Niagara Falls Gas & Electric Co., both in New York State, and a $759,912 construction job for the Crew Levick Co. in New Jersey. MARINE RESERVES BAND SEEKS YOUNG PLAYERS A call for aspiring young musicians to fill the vacancies on tne 6th Marine Reserve Brigade Band has been issued | by First Lieut. Leon Brusiloff, brigade bandmaster. A number of vacancies exist, especi- ally for musicians with experience on woodwind instruments such as bassoons and clarinets, and on brass instruments such as tubas, trumpets, trombones, PFrench horns and baritones. It was announced that musicians with special talent will be coached by pro-| fessional members of the band. Appli- cants should be between the ages of 18 and 27, and can communicate for addi- tional information with Lieut. Brusiloff at 716 Thirteenth street or through brigade headquarters, 458 Indiana ave- nue. ‘The 6th Brigade will go to camp this year from August 6 to 16 and a final recruiting meeting will be held on the night of July 12. - Soldier Hurt in Fall. Suffering from a compound fracture of the left leg and an injury to his mouth, Christopher Nestor, 47, a soldier detailed at Army War College, taken to Emergency Hospital about 12:15 a.m. , from Four-and-a-half and streets southwest and given first aid. Later he was taken to Walter Reed Hos- pital. Nestor told police he received the injuries as a result of an accidental fall on the pavement. the | 4 Sl R JOHN THOMAS, Carpenter, whose charges that work- men have been forced to sign pay rolls | for more than they get on a District Building project, have brought an in- vestigation by the District government. —Star Staff Photo. CUBANREBELS AR CONELATIN LA Menocal Declares U. S. Move Under Constitution Is Unacceptable. L | By the Associated Press. MIAMI, Fla, July 6.—American mediation in Cuba’s international af- fairs presents “unsurpassable barriers to our effective co-operation,” former President Mario G. Menocal said in & statement yesterday at the home he has occupied here since he was exiled from his country. ‘The Cuban political group which he heads will take no part in the medi- | ation, he said, “because, with due re- | spect to the good Will of the initiators, we understand that the ends toward | which this mediation strives, and the procedure taken to carry it out, consti- tute unsurpassable barriers to our ef- fective co-operation.” Scores Constitution. “It has been stated,” Gen. Menocal | continued, “that the consutution now | illegally in jorce in Cuba must be the sole basis upon which the solution of the existing political strife must pe | founded. This is inadmissible for us because this constitutional solution re- | of the present regime and ignores or forgets the fundamental and well knows: claim of the opposition. “It is impossible to admit that the present system may give life, without b{;ndl&g“it withmir'f‘&wn vices, to an- | other may or totally sub- | stitute it. And u.nfortuynstely, Lhi fact | of ignoring such a difficulty neither di- | minishes nor solves it.” | “We have never denied our efforts |and co-operation to the possibilities of | a definite and sincere settlement in the knowledge that bringing to an end the | present illegal regime would restore | Cuba to a peaceful and civilized life. | _“With that same spirit of understand- |ing and co-operation we have consid- ered the offer of mediation made by the United States Ambassador to Cuba. Expresses Regret. | “And, much to our regret, we have de- cided to take no part in it, because * * * the ends toward which this | mediation strives * * * constitute | unsurpassable barriers to our effective co-operation. * * * “In regards to the procedure followed. it is important to state that it could not | have been more fatal to the opposition. The repeated refusal of recognition of the Cuban junta in New York caused its dissolution and in consequence the return of the opposition forces to the state of anarchy, personalism and con- fusion that was so strongly criticized by the same ones who now directly or in- directly have brought about jts-end.” [CROSBY GOING SHORTLY FOR TWO-MONTH LEAVE Commissioner Doesn’t Expect to Return—Permitted to Go Be- fore Successor Is Named. With the sanction of the White House, Maj. Gen. Herbert B. Crosby, | Police Commissioner, will leave Wash- ington Monday or Tuesday for a two- month vacation with the belief in mind he will not have to return to his official duties here. Gen. Crosby this morning sent Lieut. Ira Keck, his personal assistant, to the ‘White House to ask permission to leave his Commissioner job now without awaiting the naming of his successor. The permission was granted, Keck was informed, by a White House official. Gen. Crosby tendered his resigna- tion to President Roosevelt on March 6 and during the ensuing four months has been anxiously awaiting a word ‘which would release him from his Com- missioner post. He has since been M | named president of the National Bank o(m Fort Sam Houston, at San Antonio, Gen. Crosby did not take a vaca- | tion last year and as yet has had none this year. {ACCIDENTAL SLAG DISCHARGE MAY BENEFIT OYSTER INDUSTRY to Blast Furnace By-Products. The accidental discharge info the themselves to the slag which was in- lost while Chesapeake Bay of a portion of a‘8dvertently cargo of slag en route from a Baltimore manufgcturing plant may possibly lead r profitable uw{-uon of this blast furnace by-product and assist in the culture of oysters, the Commerce ent’s Bureau of Fisheries said y. Slag is in tities in lag is produced in large quant tions during normal times. a by-product, certain uses have been found for slag, including road construction and the manufact: ure | Ji of building blocks. ‘Thé Maryland Conservation Depart- ment has recently discovered that §oung pave peadily sttached industries, provea's deterent o an usual . qyster culture, heretofore and quires necessarily the legal -recognition | PAGE B—1 HEARING IS URGED INPROBE OF WAGES ONSCHOOL PROJECT Carpenters Charge Contrac- tor Is Paying Less Than Legal Scale. BRIDE RECOMMENDS ACTION TO D. C. HEADS Declares Firm Must Show Cause Why Contract Should Not Be Revoked. Corporation Counsel William W. Bride today recommended to the Dis- trict Commissioners a public hearing in the wage dispute between the Cata- lano Construction Co. and certain of its employes so as to bring to light evidence as to whether the company has been paying less than the wage scséle provided under the Bacon-Davis act. Mr. Bride said that if the fact was established he would recommend that the contract be declared forfeited and the work done by some other con- tractor, The Commissicners have not yet acted upon the recommendation, but it is understood that it will be ap- proved and that the hearing will be held either Tuesday or Wednesday of next week. Will Conduct Inquiry. Between now and that time Mr. Bride will direct an intensive investiga- tion based on three written complaints already filed at his office, alleging that the construction company has paid its employes less than the prevailing rates of wages. The complaints are also under investigation by the Department of Labor’s Bureau of Conciliation. At the Labor Department today, it Wwas said that these matters had already | been called to the attention of the Dis- | trict authorities and that the Labor | Department would expect the Commis- | sioners to pursue a vigorous investiga- {tion into the complaints. The depart- 1 ment itself, it was said, would not take a direct hand unless the Commissioners hillu to do so. r. Bride said that in the public hearing the contractor would bepsum- moned to show cause why the contract should not be taken away from him on the allegations of violating the wage scale law and that the burden of proof would then be upon him to show that the law had, in fact, not been violated. Additional Complaints. ‘Two additional complaints against the company, which were unearthed in the corporation counsel's office today as that office began its investigation into charges made vesterday that the con- cern was paying less than the legal scale of wages to its carpenters. These complaints were filed June 19 by two men who said they were hired as _carpenters, but that the company endeavored to pay them off as carpen- ter's helpers. The scale for the former employment is $1 an hour and for the latter 50 cents. The men said that when they protested they were fired. It also developed that a group of representatives of union labor conferred with Corporation Counsel Bride last Thursday and complained about the labor practices on the vocational school job. At that time, it was learned, Mr. Bride planned an immediate investi- gation, but owing to a misunderstand- ing between the corporation counscl’s office and the office of the inspector of claims the inquiry was postponed. Paid $1 Rate and Fired. The complaint filed yesterday by j John Thomas, formerly a carpenter on this job, was to the effect that h: was hired as a carpenter at the dollar-an- hour rate, but that the construction company endeavored to pay him off at 60 cents an hour. He said when be protested he was paid the dollar rate and then fired. He also charged the carpenters now on the job had signed cards for $1 an hour, but were being paid only 60 cents. Another carpenter, now on the job, told a Star reporter that in sevia weeks of work as a carpenter at the dollar rate he had never received more than 60 cents an hour and sometimes as low as 50 cents. He said he would lose his job should it be discovered that he had furnished the information. The construction company, through Al Klingenberg, its representative on the job, emphatically denied the men :;x:‘e being paid less than the legal e. The contract for construction of the school contains a clause giving the Dis- trict power to terminate the contract by written notice should it be found by the District Commissioners “that any laborer or mechanic employed by the contractor or any subcontractor on the public work covered by thi: tract has been or is being paid a rate of wages less than the preveiling rate of wages as aforesaid.” Demand Copy of Pay Roll. This clause has been inserted in all building contracts since passage of the Bacon-Davis act providing for pay- ments at prevailing wage scales in 1931. It has never been invoked on any job up to date, although there have been complaints in at least 20 cases that men were being paid less than the prevailing scale. In at least two of the cases the contractors admitted the short payment and make good the dif- ference to the workers. Shortly after the Bacon-Davis act became law the Commissioners an- nounced their intention of requiring all contractors to furnish copies of their pay rolls certified on oath to be true and correct. It was learned today this policy has never been put into prac- tice on any contract since the Bacon- Davis act was . Harold W. Baker, District director of construction, however, late yesterday filed with the Catalano Construction Co. a request for such a certified pay roll, It had not been received at the District Suild- ing up to noon. Corporation Counsel Bride said that under a ruling handed down May 4 of this year by Controller General McCarl the Commissioners would not be al- lowed to keep out of the contract price enough money to pay claims of work- men who had been paid less than the prevailing rate even if they should be able to prove their claims in court and obtain judgment. Should they be able to do this their only remedy construction company. Inspector Must Explain. Harold W. Baker, District director of construction, said today that he would call on Roland Nichols, an inspector employed by the municipal architect’s office, to explain the circumstances that two of Nichols’ brothers are employes of the contractor on the school job which Nichols, as a District inspector, is called” upon to supervise. He said he would take no action until after Nichols has stated his side of the cas2, but that he expected to recommend to Nichols that either he or his brothers give up Sheir Jobs,