Evening Star Newspaper, August 17, 1933, Page 1

WEATHER. 9. 8. Weather Buresu Porecast.) Partly cloudy, possibly local showers tonight and tomorrow: not much change in temperature; southwest winds. ‘Temperatures—Highest, p.m. yesterday; lowest, 67, at 4 a.m. today. Full report on page A-9. Closing N. Y. Markets, Pages11,12&13 82, at 1:45 No. 32,615. post office, Entered as second class matter Washington, D. C. ch WASHINGTON, D. C, ¢ Foeni WITH SUNDAY MORNING EDITION PRINCIPLES FOR 0L CODE AGREED UPON; BY LA CHEFSN WHTE HOUSE TAL Fundamentals Are Quickly Determined in Parley About Roosevelt Desk—Johnson and Ickes See Harmony. CONFERENCE IS CALLED FOR INDUSTRY TODAY Trade Chieftains Seek Blue Eagle Secretary Perkins Workers Returned t Secretary of Labor Perkins announced today that approximately 400,000 fac- | tory workers returned to jobs in July |and that the purchasing power of all workers in manufacturing plants had increased about $29,000,000 in weekly | wages in July, compared with March. | Miss Perkins based the statement on the indices of her department’s Bureau of Statistics, showing a 39.2 per cent increase in earnings during that period. She would not estimate the number of workers now unemployed, explaining | no official figures were available. The | American Federation of Labor estimates | 11,000,000 workers were jobless as of | July 1, a decrease of 1,500,000 since | March. 39.2 Per Cent Increase in Earnings. Employment and Pay Gains Reported Throughout Nation Announces 400,000 0 Jobs in July, With earnings continued to increase on the same average of that from March to July, industrial wage earnings would average approximately $390,000,000 for the 12-month period ending March 1, 934, She said 630 manufacturing establish- ments in 69 industries reported in- creases in wage rates during the period of from June 15 to July 15, aflecting 202,371 workers, and averaging 10.7 per cent. These increases represent volun- tary raises in practically all instances, as the National Recovery Administra- tion codes did not become effective until after July 15, she pointea out. The number of establishments report- ing wage decreases continued to de- cline, she said, only 1,824 workers be- ing affected in the 38 establishments THURSDAY, AUGUST 17, 1933— REPEAL REFEREDA ANDBEERURGED POLLARD MESSACE Asks Legislature to Name Board to Study Liquor Control. END OF 18TH AMENDMENT IS SEEN BY DECEMBER 1 Executive Warns Against Passage of Regulatory Act Without Popular Expression. reporting wage cuts. The cabinet official said the increase of 7.9 per cent in pay roll earnings, as (Continued on Page 2, Column 4.) Miss Perkins said if the trend of Banner for Steel, Automobiles and Coal in Representations to Officials of Government's Recov- | ery Administration in Capital. By the Associated Press. Principles to govern oil's N. R. A. eode were quickly determined to- day in a conference around Presi- dent Roosevelt’s desk while indus- | trial officials expressed the desire to float the recovery banner over steel, automobiles and coal. “We reached an agreement for principles on the oil code,” Hugh S. Johnson, trator, said after a lengthy White House conference. Secretary Ickes, proponent of close Govern- ment regulation, smiled assent. “I think the code will get 100 per cent support from the oil men,” Johnson added, and at his office immediately placed the latest developments before gath- ered oil chieftains. He saw them for a few minutes and then sum- moned them for a conference at | 4:30 pm. Conferences Moved Up. Meanwhile, the strenuous Blue Eagle camrpaign moved up from next Tuesday to tomorrow conferences between re- covery officials and bituminous coal operators who submitted codes. It was the administration desire to bring warring bitumincus factions under one general code. - A modified code for automobiles, containing for the first time an addi- tion to the recovery act’s collective bargaining provision for labor was issued at headquarters preparatcry to tomorrow's hearing. The language stated that “employers may continue the open shop policy under which the selection, retention and advancement of employes will be on the basis of individual merit with- out regard to their affiliation or non- affiliation with any labor or other or- ganization.” 3 A Organized labor immediately assailed this provision, contending it the law and that the law could not be offended by any code. Steel Parleys Continue. Conferences continued on statistics relating to hours and wages in the steel industry. Johnson and his deputy, Ken- Teth M. Simpson, were too busy with oil to give steel much time today, but Johnson expressed optimism for an early sgreement for the steel industry. “I think we will have something on that in a day or so.” he said. Hearings were being held on codes for the optical and hats and robes in- dustries and conferences were on &t recovery headquarters with boot and shoe representatives. At the Agricul- ture Department, tobacco _interests were working on a code for submission to_Johnson. O In accordance with their undersiand- ing with President Roosevelt, Ickes and Johnson went to work on the prepara- tion of a written statement of their oil views. Indications were that strong ma- chinery for Federal supervision over prices and production was being written into the oil code by N. R. A. and In- terior Department collaborators on the Dbasis of agreement on principles reached at the White House conference. Code Ready Soon. After Johnson and Ickes were told by the President to put into written form their ideas for the oil code, Ickes said he would be ready in a couple of hours. Johnson was uncertain whe he could complete the job today. but both men were agreed that an oil code probably would be in effect soon. Neither Ickes nor Johnson would re- veal who would administer the new charter for the oil industry. The President is anxious for a code to be put into effect for this industry before he departs over the week end r Hyde Park, N. Y. ro'l'he) change in the automobile code, which officials _indicated represented the views of Johnson, was the first modification of the “collective bargain- ing” labor clause of the industrial act which has been written in in co-opera- tion with the N. R. A. The law as written ~(Continued on Page 2. Column 5.) ESCAPES ASSASSIN Former Bulgarian Leader Not Hurt by Two Bombs. SOFIA, Bulgaria, August 17 (#).— An unsuccessful attempt was made to- day to assassinate Alexander Tzankoff, former president of the Council of Dep- uties and originator of the coup d'etat which overthrew the regime of Pre- mier Alexander Stambouliski in 1923. Tzankoff, who is spending a vacation in Southern Bulgaria, was not hurt by two bombs thrown at him. One of his bodyguards was injured. GUIDE FOR READERS Amusements . Finance Radio . Society Sports . Comics Features .. Serial Story recovery adminis- MEDIATORS SEEK TO SETTLE STRIKES [Whalen Hopes for Truce in| Garment Industry—Packers in West Raise Pay. MENOGAL'S RETURN AWATED BY CIB Exiles Expected to Play Big, Role in Reconstruction of Island. | By the Associated Press. Mediators, some of them backed by | the N. R. A, sought today to settle, strikes in such widely differing occu- | pations as needle work and fruit p&ck-‘ ing. | A major industrial conflict tore the Eastern garment business at the height I of its peak season. Union leaders an- | " nounced that 60,000 dressmakers in | New York, New Jersey, Connecticut and By the Associated Press. HAVANA, August 17.—Cuba awaited today the return from exile of former President Mario G. Menocal and Col. Carlos Mendieta and wondered what | |part they will play in reconstruction | plans of the new provisional govern- ment. Qualified observers professed to see a possibility that the two famous lead- ers againsi the government regime of Gerardo Machado might ride back into favor, take an important role in Presi- violated | Pennsylvania answered a strike call yesterday in a fight against “sweatshop conditions.” ! issues born of last week's revolution. Grover A. Whalen. N. R. A. chief for | Col. Mendieta, one time congressman | New York, was authorized to mediate, | and newspaper editor, who first took up | and called a meeting for noon today. |arms in 1906 and since has been linked | He hoped for at least a temporary set- | with revolutionary activities, went to | tlement pending adoption of & code for Florida on February 18, remarking that the industry. | “liberty is crushed in Cuba.” Fruit Wages Increased. 1 Denies Political Aspirations. Strikes in several fruit and vegetable | Gen. Menocal has been in the United areas of the Pacific Coast occupied States more than a year, during which the attention of authorities seeking nor- | time he has directed activities of a malcy. The California Packing Corpora- | revolutionary junta. As early as Feb- tion announced wages would be m-truuy he declared the time was at creased from 17! to 25 cents an hour. 'hand for the revolution that came last Strikers at corporation ranches at At- |Saturday, when Machado and several |'water and Tuttle, Calif., had demanded | followers, in their turn, became exiles. cents | However, Menocal denies having po-| In Philadelphia more than 2,000 hos- |litical aspirations, despite the acclaim fery workers paraded yesterday at the given him when the Conservative party, Cambria Hosiery Mills, where a strike | the only group not submerged in the is in progress, and later announced that Machado overthrow, voted to depart | the mill had ceased operations. |from a policy of co-operation last Charges of violence came from scat- | month. | tered localities. Two sticks of dynamite | Also expected is the return of Tol. . were hurled. police saia, at the home Aurelio Hevia, former secretary of war of a Philadelphia cleaning and dyeing and of the interior department, who, | plant owner, whose employes have been | like many another, has served prison |on strike. In New York, several men |terms for revolutionary activity, and pushed into a dress firm, turned off | Sergio Carbo, newspaper editor, who, in | electric power and are said to have | May, was charged with inspiring a re- | dent De Cespedes’ administration, and help solve the political and economic | cuffed the owner. bellion in Oriente Province Miguel Mariano Gomez, former mayor | of Havana, is also expected to arrive soon. He reputedly is in line for the Industry Paralyzed. l The International Ladies' Garment | | for | same as In North Carolina. was recom- ther | Workers Union announced that the | | dressmakers strike had paralyzed the industry in the area centering around New York. The union described the wa'kout as “one of the greatest on record in the history of the industry.” The National Dress Manufacturers’ | Asscciation, a_jobbers’ organization. has (Continued on Page 2. Column 1) BRIEF RALLY LIFTS ' STOCKS AND STAPLES Shares Take Cu¢' From Grains Ris- ing After Early Drop—Dollar Eases Abroad. By the Associated Press. NEW YORK, August 17.—Stocks and | staples spurted today in a rather buoyant, but brief, rally, which recalled | the soaring price movements of several weeks ago. Grains, at Chicago, dropped sharply at the opening of trading, but, liquida- | tion apparently having run most of its | course, there was quick turn-about in | which early declines were replaced with | | substantial gains. Cotton leaped forward | for an_advance of around $1 a bale. The share market was quick to take | its cue from the commodity contingents | and leading issues in fast trading, quickly ran up $1 to around $5 & share. Bonds “were equally responsive. | The dollar eased a bit in foreign ex- | change dealings. | The sdck rally lasted about 20 | minutes and the more active share | gainers relinquished portions of their | sharp advances when grains turned ir- | | regular at Chicago and stepped back | from their peak levels. chieftainship of the Havana central district Machado Secretary Leaves. The return of the old leaders is viewed with additional interest because of the insistence of the A B C Secret Society that it will no longer follow old leaders. Meanwhile, as exlles returned or pre- pared to come back to a fatherland that has seen many changes in the last few days, others, of an opposite faith, prepared to leave. Ramiro Guerra, Machado's secretary, | and two others left for New York. It " (Continued on Page 4, Column 2) WHEAT AND COTTON TAX MAY BE RAISED Wallace Considers Action to Halt| Price Declines and Give Benefits to Farmers. Secretary of Agriculture Wallace told newspaper men today there was a pros- pect of additional processing taxes on | wheat and cotton if the price of the products continued to decline. ‘The processing tax 1s a levy paid by the manufacturer or processor of wheat | and cotton, which in turn goes to the farmer in benefit payments for his agreement to cut production. In the case of wheat, the present tax | 1s 30 cents a bushel and on cotton it is 4.2 cents a lint pound. The Secretary would not indicate at what point additional processing taxes would be levied, but said if they were applied that benefits would “eventually” get back to the farmer. proviced tor e | M RS. ROOSEVELT URGES PROPER EDUCATION A4S BOY CRIMES CURE | By the Associated Press. Latest tables showing 19-year-olds ‘-topDed the lists of arrests for serious | offenses in the first six months of 1933 brought suggested solutions to- day from a number of persons espe- | cially alive to the problem. | The Justice Department’s report showed that from January to June it examined 159,493 finger-print records of arrests Individuals aged 19 out- numbered all others. The 19-year-olds exceeded 18-year- olds by only 10 per cent in total ar- rests, but their offenses were graver. Age 19 exceeded age 18 by 74 per cent in homicide, 37 per cent in carrying weapons, 34 per cent in assault and 27 per cent in robbery. Mrs. Franklin D. Roosevelt’s analy- sis was that youthful crime has risen largely be-ause the adventures of crim- ina! life have been icealized. | “The right kind of education has to | come back!” was her solution. i “The youthful crime trend is not { | | useful outlet. Partly it's because boys who have finished school can't get jobs But it can’t be blamed upon the depression Good times, as well as bad, have contributed.” The President’s wife mentioned cases that had come to her personal atten- tion in prosperous years. “Many things in our civilization to- | day tend to make it easier to commit crime,” she ruefully commented. J. W. B. Smith, fresh from racket- eering investigations in Illinois, as aide to Joseph B. Kennan, head of the anti- racketeering drive, said if young ctim- inals “think they can “WE{ all they have to do is look at the last 15 kid- napings, and see how perfectly foolish that idea is.” He added: “Mr. Keenan deprecated the honor bestowed on the gangster in movie films. Serious attention should be paid to that part of the problem.” Miss Alida C. Bowler, juvenile de- linquency expert of the Children’s Bu- reau, deprecated the lack of scientific study of the question and said “the actual {ae®s developed by such a study | new It has been going on for years. Many things have contributed. Partly it's love of adventure, not turned to 4 Would grigest the best methods of at tackind U5 probem” | pay, but with mileage of 5 cents. | tional repeal and adoption | that ! prohibition and a control act, and in | 'BROOKLYN MANAGER 'ANDLOPEZSUSPENDED | Carey Fined $50 Also for Run-in | Hope that tomorrow would bring an end By the Associated Press. RICHMOND, Va., August 17.— | Stressing the belief that national prohi- bition would be repealed by December 1, Gov. John Garland Pollard urged today in his message to the extraordi- nary session of the Virginia General Assembly the legalization of 3.2 beer. In addition he requested the legisla- tors to provide referenda on repeal of fORTY-SIX PAGES. ny Star F¥¥ us. ‘WE DO OUR PART Yesterday’s Circulation, 111,742 =5 TWO CENTS. (P) Means Associated Press. RECOVERY? | was FOR IT YEARS BEFORE. HUGH TooK OVER THE NRA JoB ! the national and State prohibition acts on October 3, and also asked that a commission be named to study and re- | port to the regular session of the As- | sembly in January on the liquor con- | trol bill as a substitute for the State prohibition act. | Gov. Pollard also appealed to the State Legislature to amend that sec- tion of the budget bill requiring him to reduce expenses to meet revenues,| thereby preserving a balanced budget, | 5o that reductions would be limited to 30 per cent, the cut already made. May Prevent Deficit. “I make this recommendation in the | belief that a prospective deficit for the | current year can be absorbed in the! next budget and that interest of the State as a whole would be better pro- moted by this procedure than by mak- | ing further reduction in appropriations the current year,” the Governor i | | | said. As to 3.2 per cent beer, the Governor ! recommended that it be sold openly by persons whose good moral character should be determined by the court granting a license: that $500 bond be required for observance of law, with localities allowed to impose additional restrictions: that breweries be pro- hibited from owning or becoming inter- ested financially in retail sale of beer, and that sale to persons under 18 years of age be prohibited. An excise tax of 10 cents per gal lon, or 1 cent per 12-ounce bottle, the | mended for beer. He urged a license | tax of $100 for breweries, $50 for | wholesalers and $5 for retailers of beer, ! with localities allowed to impose ad- | ditional license of not more than $2,000 | for breweries, $1000 for wholesalers n or retailers in c elsewhere. Ul Recommends October 3. | A referendum on repeal of the eight- eenth amendment, October 3, at Qfi,m! not less than nine nor more than 30 | delegates would be elected at large to meet in convention and cast the vote of Virginia, was given the Governor's approval. He suggested that candi- | dates file notice with the secretary of the commonwealth, stating whether they were for or against repeal, and that names to be placed on the ballot be selected by a commission composed of the Governor, lieutenant governor, speaker of the house and one Demo- crat and one Republican, to be selected by three named officials. Details of election, he said, would be set out in a bill to be introduced. | He reccmmended three, instead of five | election officials, to serve at $2 per day, | and appropriation of not more than $500 to defray expenses of convention, in which delegates would serve without The Governor said he believed Na- | tional prohibition would be repealed by | | December 1, and that there would un- doubtedly be a demain for a substitute for the State prohibition act. He said he dreaded the interim between Na- | of State but that a new house lected this Fall and | he felt such act should be | drafted by a body fresh from the | people. He said he despaired of get- | ting the four-fifths majority needed to | make the control act immediately ef- | fective, unless the legislators have a | mandate from the people. Pursuant to this view he urged that the people on October 3 be given their choice between contjnuance of State rontrol act, would be the event of State repeal, to say whether the State system should be a | dispensary 8r private license meas: ure, in either case preventing the sa- loon and permitting local option. Such a referendum would be a guide (Continued on Page 2, Column 8.) With Umpire in Game With Pittsburgh. By the Associated Press. NEW YORK, August 17.—Manager Max Carey and Catcher Al Lopez of the Brooklyn Dedgers today were sus- pended for three days by President John Heydler of the National Base Ball League for their run-in with Um- pire Ted McGrew in the second game of the double-header with the Pitts- burgh Pirates at Ebbets Field yester- day. Carey also was fined $50. In announcing the suspension, Heyd- ler said the fine was imposed because Carey pushed McGrew. ‘The incident occurred when McGrew called Floyd Vaughan, Pirate short- stop, safe at home, when Lopez tho he had tagged him. The Brooklyn catcher rushed at the umpire, throwing his mask and glove in the air, and Carey joined him. Both were banished from the game. Welsh Strike End Seen. SWANSEA, Wales, August 17 (#).— to the Welsh anthracite miners’ strike was seen today when a union delegates’ meeting decided to recommend negotia- tions for a settlement with the owners. The strike has been Monday, mmdflw‘ HuGH JoSo Nx\‘ NN >\\\\\ A ¢ DECLARES HOOVER ASKED “POLITICAL LOAN STATEMENT Couzens Says He Was Re- quested to Announce Ap- proval of Dawes Grant. N NN N N\ N \ DENIES HE PREVENTED | AID FOR DETROIT BANK L Says Little Fellows Were Left Holding the Bag in More Than 1,000 Closings, By the Associated Press DETROIT, August 17.—Senator James Couzens, Republican, of Michigan, tes- tifying before the Detroit bank inves- tigating jury today, said he had been asked by then President Hoover during the last political campaign to issue “for political purposes,” a statement ap- proving of the loan of $90,000,000 to the Chicago bank of which Charles G. Dawes was head. “The Nation was shocked when it KIDNAP MANHUNT INWISCONGIN ENDS | Chicago Police Return From| Resort Area; Factor Guarded Against Reprisal. By the Associated Pre CHICAGO, August 17—A concerted drive to round up kidnapers that began with mobilization of 300 police at sub- urban La Grange apparently had ended today. Back from Southern Wisconsin came 50 heavily armed detectives, with word that they had searched dozens of known gangster hideaways in the Summer re- sort_district and found them deserted Although police officials declined to comment_ officially, opinions were ex- pressed that leaders of the Touhy gang and members of an alleged kidnaping syndicate from the Southwestern sec- tion of the Nation had fled the eountry. Reports were current that Chicago po- lice had asked for several airports to be watched to prevent fleeing desperadoes from reaching Mexico by airplane. Factor Heavily Guarded. Meanwhile, a heavy police guard was | maintained over John Factor, millionaire | market plunger, against possible ven- geance for his involuntary part in the unsuccessful effort to trap his kidnapers. A death threat telephoned to Factor, who already reportedly has yielded more than $100,000 to kidnapers who seized first his son, Jerome, and then himself, brought the police detail to }l’:is door and a bitter complaint from im | was reluctant to assist the po- lice,” Factor said, referring to the foiled entrapment plans. “Now that they've failed, I'm left out on a limb, considered by my kidnapers to have broken my word to pay off the balance of the ransom and to shield them.” Local Police Out of Hunt. While Factor, palpably frightened in his hotel apartment by the turn of events after the failure of 300 police, alded by airplanes and elaborate plan- ning to nab his kidnapers, protested po- lice “horned in” on the final pay off, the Wisconsin search proceeded With- out aid from local authorities. The squads swept through a dozen resort towns, spurred by belief their quarries, lost at La Grange, might seek refuge there, and hopes that additional suspects in the kidnapings of William Hamm. jr, St. Paul brewer. and Chafles Urschell, Oklahoma City oil millionaire, might be apprehended. Hamm has said he was taken by his captors to that territory, and Federal agents, it was learned, for several weeks have been investigating through- out the region. It has Summer homes of many Chicagoans, and gangsters have been going there of late with in- creasing frequency. Know Ransom Collectors. Though chagrined over the fiasco which attended elaborate plans to nab | the kidnapers, Chief of Detectives Wil-| liam Schoemaker said his men dis- guised as the cab driver and telegraph messenger who handed over a bogus mission finds it appropriate, to acquire | ransom package to the suspects recog- | nized them as gangsters. He refused | to reveal their identities. | The pair fled it was learned with| about $100 in marked money from | Factor, one getting & lift from a farmer out of the territory in which the small army of officers were hunting them and the other losing himself in the thick woods. [Earlier reports said the kid-| napers obtained $500. i Sergt. Michael Naughton of the police airplane “detail which directed the en-| trapment plans said a last-minute change of instructions on the part of (Continued on Page 5, Column 3.) SHERWOOD’S SILENCE IS UPHELD IN COURT Walker Confidant Justified in Re- fusing to Answer Tax Queries, Judge Rules. By the Associated Press. NEW YORK, August 17.—Russell T. Sherwood, confidant of former Mayor | James J. Walker, today was upheld by Federal Judge Robert P. Patterson in his refusal to answer before a Federal grand jury questions which United States Attorney George Z. Medalie said “were put to him in an inquiry con- cerning an alleged willful evasion of the payment of income taxes by one James J. Walker.” Questions which Sherwood was charged with refusing to answer, read | in the court room, related to possible | conversations and other communications | 6n the part of Sherwood with Walker, | any persons resenting him, and | others, during Sherwood’s 21 months’ | absence from the city and its environs. | To each of them, it was charged, Sherwood declined to make answer on | the ground that to do so might tend to degrade or incriminate him. | Browns. of the St. Louis club and canceled the | KR Sam Gray Bought By Nats, but Sent Back to St. Louis Griffith’s Enthusiasm for | Hurler Is Cooled by | Sore Arm. By a Staff Correspondent of The Star. CHICAGO, August 17.—Samuel David | Gray, veteran right-hand pitcher, be- | came a member of the Washington ball club today. but only for a few minutes, then he bounced right back to the St Louis Browns, from which outfit he had been purchased. Shortly before noon President Clark Griffith, here with his league-leading Nationals, proudly announced he had procured Gray from the Browns by the waiver route and that the 33-year-old hurler, who has been around the big show nearly 10 years, would join his new club here tomorrow. “He'll be a great help to us as a relief pitcher,” Griffith explained. “We have needed somebody to share with Jack Russell the burden of relief pitching and Gray is just the man to do it.” And so on for a few thousand words the Washington president ex- tolled the pitching virtues of his new purchase. Joe Cronin, the boy manager, sitting by, was greatly impressed. He could not wait for Gray to arrive to have a talk with him. Joe jumped up phore Sam down in St. Louis right now,” he said. He did, and came back with this report: “Sam says he has a sore arm and can do no pitching.” Then and there Gray bounced back to the Griffith immediately got hold deal. OCK ISLAND SYSTEM MERGER Commission Stipulates Line Must Buy Wichita North- western if Directed. By the Assoclated Press. The Interstate Commerce Commi: sion today conditionally authorized the Chicago, Rock Island & Pacific Railway and 11 subsidiary corporations to merge | into one corporation for ownership, management, and operations. The system, which has mileage of more than 8,000 in 14 States, was permitted | | to carry out the merger on condition it | set up a proper method of accounting under the transaction, upon which the commission is now working. It also will be required, if the com- the Wichita Northwestern Railway. James E Gorman, president of .the system, said the primary purpose of the merger was to give the Rock Island the power to secure its bonds by direct lien upon all the properties. Gorman informed the commission that bankers had advised the road uni- fication would greatly improve the credit of the Rock Island and permit its bonds to be marketed more easily and at better prices. Economy Permitted. It also was proposed as an economy move. Such merging, the commission said, would conserve the time of offi- cers, dispense with corporate meetings and eliminate records, reports and other | incidents of maintenance of separate corporate organizations. The corporate changes involved in the merger, the commission added, do not involve the payment of a consid- eration in the usual sense of that term. “The Rock Island,” it said, “proposes (Continued on Page 2, Column 6.) “TN, leaked out from some source unknown to me that Dawes, former president of the R. F. C, had got a loan from the R. F. C. of $90,000,000.” Couzens said. “Of course, the party that was out of power capitalized on that.” SALE OF D. G DAIRY &c 2o s | the Senate to appoint a committee of [five to investigate all loans made in secrecy. You must remember Dawes got his loan in June for a new bank. He was not going to put $90,000,000 lin an old bank and have the wise ones | withdraw their money, but was going | to give all depositors an equal chance to withdraw their money. Mr. Hoover, the Senator said, “want- ed the statement for political pur- poses.” The request, he said, came in a telephone call from the White House. The Michigan Senator said that, while . ./ his statement of approval was not Determination to discover whether. formally issued, he did approve the there is monopolistic control of the Dawes loan. milk business in the Washington and Baltimore area by the National Dairy | Couzens startled the court r th . ! e! ‘oom Wil Products Corporation, and if so, whetheT | tne taternent that as_early as last it gained this control by issuing watered November, three months before the stock, and whether the distributing con- | banks closed, Federal officials had ap- cern acquired by that corporation had | Prised officers of the First National Bank, Detroit, that “the solvency of made enormous profits either as & Ie- | their institution was a matter of qyups- sult of charging the consumers too tion.” He declined to reveal the source much or paying the milk producers too | Of his information. saying it was confi- little was announced today by Senator g;n;‘nael éfiier“é’m“&t”% ;:;Jsm:-r?omg: King, chairman of the Senate District said, made the criticisms. Committee conducting the milk investi-| _In the course of his testimony gation. :fig:zflscdc‘;;a;;& (hact_dun.flgh the Na- This declaration was made during an been - over 1000 banks that cloed examination of Albert D. Graham, Where ‘smart money’ had withdrawn | chairman of the board of the First tS deposits after R. F. C. loans had .| been made—and the little fellows wh National Bank of Baltimore, who engi- were not in the know were lcou h:ld? neered the sale of the Western Mary- ing the bag.” land and Fairfield Dairies in Baltimore . Did that happen in Detroit?” asked and the Chevy Chase Dairy in Wash-| 1o ? ington to the National Dairy Products| ~NO.but it happened in Mount Clem- Corporation, which now distributes | ¢0S: Mich.” said the Senator, “and I practically 90 per cent of the mlik sup-, Want to say that this is the most out- plied in Baltimore and more than 60 [ageous thing I ever heard. The First per cent of the milk sold in Washing- | National crew went out to the Citizens® ton. Mr. Graham had sgid his bank | SVings Bank. if I have the name | had received as brokers' ‘commissions | Ti8ht. paid themselves $900,000. and | for putting through the deal practically | left the depositors with 10 cents on the $100.000 in stock of the holding cor- | dollar, holding the bank. * = = » poration. Of this amount, $60,000 was| A lot of things happened in banks for sale of the Baltimore Consolidated fOF Which no criminal prosccution can | Dairies, and $39,000 for the sale of the | P brought. T venture to say that in { Chevy Chase Dairy on a stock-payment all probability in Mount Clemens there Senator King Determined to Learn if Monopolistic Control Exists. Startling Data Presented. basis. Bought on Business Basi Answering the gesture of Chairman King in_throwing down the gauntlet, Joseph E. Davies. counsel for the Na- tional Dairies and former chairman of | the Pederal Trade Commission, stated that I dairies’ properties acquired by bought at arm’s length, bought on a strictly business basis. which did not mean any increase in the price of milk to the consumers or decrease in the price paid to the producers; bought after most careful appraisal: bought with the prospect of effecting economies by consolidation.” Mr. Davies told the Investigating Com- mittee that the “National Dairy Prod- ucts Co. has nothing to conceal. The Department of Justice and the Federal Trade Commission already have most | of the facts and figures.” Seeks Method of Payment. Senator King interrupted to say that witnesses was to determine whether the price paid for the acquired dairies “was !1in real money or in watered stock, and | | whether the vendor had properties of | real value or whether the assets had | been purchased from profits.” Mr. Davis replied that most of the | purchased assets represented “a plowing {back into earnings of those concerns | over a long period of years. What was paid for was real value, and the pay- ment made was real value. The trans- action was carried through by business | able.” | Senator King announced as his ulti- matum that he would do his utmost to | determine _“whether _the _distributors (Continued on Page 2, Column 3.) I — SWASTIKA CAUSES RIOT Crowd Mills About Emblem Dis- played on Canadian Hill. TORONTO, August 17 (#).—After a large swastika had been displayed on the side of a hill here last night a ‘crowd estimated at 10,000 milled about Willowvale Park and several hundred youths clashed. Order was restored by police reserves, but only after a number had been in- Jjured, not seriously. And thereby hangs BEGINNING IN NE “My Hollywood Diary™ By E. de S. Melcher The Star's Dramatic Critic ‘Who is now exploring the West Coast Movieland. “Garbo did not meet me at the station, but a story. Read it in XT T T I ' ¢ the National Dairies Corporation “were | his interest in examining the sworn | men who were shrewd, Scotch and | | was no basis for criminal prosecution | But if civilization is to exist and rely | only on criminal law and not on morals and ethics, we might as well give up. The ethics of banks here and outside ;‘guld {‘ml be prosecuted. but some of | the acts were as vicious and s | as could be.” Ramecl | Obtained List of Loans. Couzens said he went to e R. F. C. and obtained a complete tl?st ;0! all the loans made, asking for com- | plete information on the Dawes loan | "I did not see the collateral because | that was in the Federal Reserve banks and in Chicago,” he said. “The Senate had not given the committee- money to go there or to hire appraisers. The com- mittee decided to take the appraisal of |the R. F. C. examiners. All of them came Lefore me and testified that the collateral was valued at $120,000,000." | JIn a brief discussion of the policy of the R. F. C. that followed, the Sena- tor said he was in close contact with conditions during the eight months be- tween June, 1932, and February of this year, pointing out that all during this time “the banking situation in the United States had been getting worse.” Couzens declared Wilson W. Mills, former chairman of the board of the First National Bank, Detroit—the country’s largest closed bank—did not “tell all he knows.” “Mills did not tell of the millions in default by employes and officers,” he | said, “and of the loans to favored ones. If he had, the court would have been advised to an entirely different picture.” Of Henry Ford's participation in events preceding the State holiday, he said the motor manufacturer had been asked to enter a joint guarantee with him that the Government would suffer no loss if a $45.000,000 loan were granted for the trust company, but Ford refused. The refusal, he said, presumably was because “Ford was an- noyed at the suggestion that he involve himself further” in the trust company. He said he believed George P. Davison, chairman of the board of the Central Hanover Bank & Trust Co.. who came to Detroit shortly after the holiday, “took Mills up a high hili, promised him the world, said he would head a big New York bank if it was created | here, and then dropped him.” He charged Mills with attempting to kill the pian of Henry Ford to form two new banks which would have taken over the assets of the closed First National and the Guardian National Bank of Commerce. because he was “not on the Ford list of directors.” Denies Blocking Loan. The Michigan Senator's testimony concerning the Dawes loan came as a digression in his discussion of the bank- ing situation in Detroit, of which he had read a chronological history of | events, in which he had a part, and which led up to the declaration of a bank holiday in the State, the begin- ning of the National crisis. Couzens, said by previous witnesses to have | blocked a $45,000,000 R. F. C. loan for ithe Union Guardian Trust Co., which it was testified would have prevented the State-wide policy, denied any such move. He said the R. F. C. was will- ing to approve a loan of $37,700,000, which was the largest it could make under Federal law. in the face of as- sets offered. He said he told President Hoover at the time he would “denounce the (larger) loan from the housetops” if 1t were made, but said every R. F. C. official and several other Government (Continued on Page 2, Column 4 - b2