Evening Star Newspaper, August 18, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Local showers and and possibly tomorrow morning; slightly cooler tomorrow; moderate scuthwest winds, shiiting to_west tomorrow. Temperatures—High terday; lowest, 71, at Full report on Page A-9. Closing N. Y. Markets, Pages11,12&13 thunderstorms tonight 84, at 3:30 p.m. yes- m. today. ch Entered post offi No. 32,616, “Wa Washington, D. nd class matter Tl WASHINGTON, CRIVINAL OFFENSE LA 10 DETROI BANK Y COUZENS Tells Prober Union Guardian Jockeyed Children’s Fund Out of $200,000. DEPOSITS TAKEN DESPITE INSOLVENCY, HE ALLEGES Says Examiners’ Poor Judgment Will Cause Loss of Millions in First National Loans. By the Associated Press. DETROIT, August 18.—Senator James Couzens, Republican, of Mich- igan, today unleashed bitter criticism of Detroit banking methods preceding the Michigan bank holiday, demanded an investigation of one bank transac- tion with a view to criminal proceed- mgs, and charged in another statement that “poor judgment of Federal bank examiners” will cause a loss of many millions in loans made by the closed Pirst National Bank of Detroit. Testifying for the second day be- fore the one-man grand jury investigat- ing the closing of the First National id the Guardian National Bank of mmerce,-the senior Michigan Senator declared that while the condition of Detroit banks may have been known to the Government, it was considered a question of judgment by Federal of- ficials whether to “wait for prosperity to return or insist on the letter of the law and close the banks.” That, he said, was “not an easy question to an- swer " ““At hearings before the Senate Bank- ing and Currency Committee the con- troller himself testified that he had not enforced the law because he was waiting, hoping there would be a re- covery,” said Couzens. Investigation Asked. Lashing out at banking methods in Detroit, the Senator flatly asserted that “I know of no other city in the whole world where there was such an orgy of pyramiding of corporations and the fixing of fictitious values and earnings.” | He charged the Union Guardian Trust Co., the impending closing of which has been given as the reason for the declaration of Michigan's banking holiday February 14, had “jockeyed the childre $200,000,” and asked Prosecutor Harry S. Toy to investigate with a view to criminal proceedings. The children’s fund, established in 1928 by the Sen- ator, has an endowment of $10,000,000, the income of which is to be spent solely for crippled children of the State. | The trust company, said the Sehator, sold the fund $300,000 worth of “par- ticipation certificates” on real estate mortgages, but pleaded a tem- porary stringency of funds when pay- ment became due and asked the fund management to take “certificates of de- posit” instead. Criminal Offense Charged. He said the certificates had no col- lateral security behind them and anly $100,000 was cashed by the fund. The remainder, he said, was not obtained before the trust company closed and he said he counted the $200,000 “as prac- | tically a total loss.” “Why,” exclaimed the Senator, “the | Union Guardian Trust Co. accepted de- | posits for 20 days after its officials knew | it was insolvent. It is my understand- ing that that is a_criminal offense.” Turning to the First National Bank, Detroit, Couzens read from a memo which he said had been taken from the bank’s books, and declared on the day the bank closed its books showed more than $6,000,000 loaned directly to di- rectors; loans of more than $2,600,000 on which directors had signed as in- dorsers; loans totalirg more than $1.400,000 to employes, and loans total- ing more than $11400,000 to corpora- tions in which directors of the bank were_interested. “The total of these loans—$22.190,000 —will be lost to a very great extent, due to the poor judgment of Federal bank examiners,” he said. Reviews Treasury Policy. Discussing the Government's policy toward banks, Couzens said: “All during the depression the ad- ministration was in the hands of the Republicans. _All during that time it was under the contrcl of my good friend Mr. Mellon and Ogden L. Mills." “Did you say your ‘good friend Mr. |~ doped.” Mellon?’ ” asked the prosecutor, smiling. | “I said it with a smile.” replied Sena- tor Couzers. “They were dictating the policy of the Treasury Department. Al fund of Michigan out of | Young Roosevelt Tries Bull Fighting On Spanish Farm | |President’s Son Does | Cape Work With Small Animal Near Seville. | By the Associated Press. SEVILLE, Spain, August 18.—Frank- lin D. Roosevelt, jr., son of the Ameri- can President, visited a bull farm near here today where he tried his hand at cape work with & small bull Young Rooseve't, A J. Drexel Paul, jr., of Philadelphia, and United States | Consul Richard Ford were guests at | the bull farm of Romuldo Arias de la | Reina, where the Bullfighters Laine {and Lafarque gave exhibitions with young bulls. They demonstrated the technique to the President’s son. Franklin was dressed in an Anda- lusian costume with a wide hat and cap, loaned him by his host. This was his birthday and at luncheon celebra- tion, Senor Arias toasted the President of the United States in Manzanilla wine, the classic Andalusian manner. Later Gypsy singers and dancers enter- tained the party. Franklin was given the stuffed head of a fighting bull by his host. The youth demonstrated his riding abllity jon a blooded Andalusian horse. He decided to remain until tomorrow to see the famous Miura bull farm. Then he will go to Huelva to visit the port of Palos. where Christopher Co- lumbus starteéd on his voyage of discov- ery to America. On Sunday young Rogeevelt will visit Gibraltar before re- TEN ARE INDICTED - INDOPING HORSES {Three Others Plead Guilty| and Are Sentenced in Racing Scandal. By the Associated Press. CHICAGO, August 18.—Ten race horse owners, managers, trainers and employes were indicted by the Federal grand jury today on charges that they violated narcotic laws in “doping” | horses. | Among the principal defendants were A. A Baroni, described as an owner of race horses; Jack Howard, manager for stable owned by his wife, and Ben- amin Creech, also manager for a| | stable owned by his wife. | The indictments followed investiga- | tions at Chicago race tracks by Federal | Government agents. Three minor de- | fendants in the case have pleaded guilty jand were sentenced to penitentiary terms on charges that they violated the Harrison anti-narcotic act by supplying “dope” to owners and trainers. Included in the list of those indicted is Hal Price Headley, Lexington, Ky., turfman, snd his exercise boy, Marvin | Hardin; Dr. Nelson Edward Southard, | Louisville, a veterinarian, and Ivan H. Parke, former noted jockey, now a trainer. i The indictments resulted from a na- tional race track investigation which culminated in a raid at the fashionable | Arlington Park track cn July 20. Bonds for each of the 10 defendants were set at $5,000. Arrested After Raid. | Dr. Southard, Parke and Charles Mitchell, an exercise boy for Jack Howard's stable, were arrested after | the Arlington Park raid. Bench war- rants probably will be issued today by Federal District Judge George T. Page. | The evidence in the case was| gathered by Ralph M. Oyler, former chief of the narcotic division in Chi- cago. He conducted an investigation which led Federal operatives to most of the principal race tracks, discovered | the wholesale “do%ing" of horses, some- | times to make them run faster and sometimes to make them jog along like plow animals. Howard and Mitchell were charged | with having drugs constantly in their | possession from last February 17 until | the July 20 raid, when they were seized. Horses Declared Doped. The indictment charged that many well known race horses, including Mar- mion, Louie Dear, Islam, Adelaide A, Spud, Ebony Lady and many others were The charge was made that Mitchell administered drugs to Marmion | on July 4 at Arlington Park 45 minutes | before_the race; that Louie Dear was “doped” at Arlington July 5; Islam on the time they were violating the law |July 5. the same horse on July 12, and in Tespect to their attitude toward na- | tional banks. Senator Carter Glass was | holding subcommittee hearings in 1932 and got testimony from former Con- troller Pole and Awalt, his deputy, that many banks were insolvent, but were not closed because that would have wrecked the communities. 3 i “This outraged Glass, who is a very | able and honest man. I will read | " (Continued on Page 2, Column 8.) FILIPINO PLEBISCITE AGREED ON AT CAUCUS Expense Question Raises Doubts of Referendum on Independ- ence Act, However. By the Associated Press. MANILA, August 18 —Manuel Quezon’s majority group, controling the Legisla- ture, agreed at a caucus today on 8 vote by plebiscite on the Philippine independence act, the pleas of the Sen- ate President overcoming opposition to such a plan. But whether the voting. which is planned for October, a month before the Legislature’s session ends, will be held is problematical because of the expense involved and questions of legality. EYE The secretary of justice has been asked to rule on the legality questions. Legislators agreed informally that if the insular auditor disapproved of the ted expense of $500,000, the ture itself would then have to decide the independence question. The sct provides for either ratification by | the Legislature or by | _-biscite. Quezon told supporiers that if the legislature decided the question he would be bound to reject it, since he elected on & platform of imme- Man@ce and therefore & necessary. | Louie Dear again on July 28. | At Hialeah Park, Miami, Fla, the Government charged that Adelaide A | was “doped” on February 17; Ebony Lady on February 27; Spud, February | 26, and Ebony Lady on March 8. DE MUYTER MAY RACE Belgian Balloonist to Compete at Chicago if Craft Is Ready. BRUSSELS, August 18 (#)—Ernest de Muyter, Belgian balloonist, has changed his mind and is prepared to compete in the James Gordon Bennett Cup races in Chicago if he can either get an American balloon or have his old Belgica overhauled. In the event that he does not com- pete it is unlikely that he will accept an invitation to go to Chicago to lecture. U. 5. WILL PURCHASE| 5000000 HOGS 10 AID NEEDY PERSONS Secretary Wallace Outlines Program to Increase Prices of Swine. $55,000,007 TAX LEVY TO BE MADE FOR COSTS Pork Value May Jump 30 Per Cent—Corn Acreage Reduc- tion Declared Essential. By the Associated Press. CHICAGO, August 18.—Secretary of Agriculture Wallace today outlined the | Government’s emergency hog program for buying 5,000,000 swine, employing meat packers to process them, and dis- tributing the meat to the needy. In an address at the Century of Progress Exposition, he said the pro- gram will be ready to go into effect in a few days and that he expects it to boost purchasing power in the corn belt substantially. The plan should increase prices of swine, possibly 25 to 30 per cent, he asserted, and at the same time provide relief to farmers heavily stocked with, swine but with short feed supplies due | to drought. $4 Bonus to Be Paid. The program calls for purchase of 4,000,000 pigs weighing 25 to 100 pounds at from 6 to 94 cents & pound, and 1,000,000 sows soon to farrow, weighing a minimum of 275 pounds, at market | prices on the day marketed plus a bonus of $4. The purchases are to be com- plete by about October 1. They will be made “by specified processors” for the Department of Agriculture. The meat will be turned over to the Federal Emergency Relief Administration for distribution. Wallace estimated the cost of the program at up to $55,000,000 to be met | by a processing tax on hogs which “ui go into effect after September 30. The | tax rate and effective date will be fixed | later, he said, estimating that the levy, ~(Continued on Page 4, Column 1.) HEURICH BREWERY | THREATENED BY FIRE Spectacular Blaze, Doing Little Damage, Started by Torches in Basement. A small but spectacular blaze broke out early this afternoon in the Heurich Brewery, Twenty-sixth and D streets, bringing firemen from all parts of the downtown section and attracting a large | crowd. Using a powder fire extinguisher the second time in eight years, firemen ex- tinguished the flames almost as quick- Iy as they had started. Two alarms were sounded. Christian Heurich, 91-year-old own- er of the brewery, summoned by em- ployes, hastened to the plant, but the | firemen had worked so quickly that the | fire was out when he arrived. The fire broke out in the boiler room in the basement, where acetylenc | torches were being used to cut out| ipes. Oil from one of the pipes| ormed a puddle on the floor and sparks | from the torches ignited it. The flames shot up in spectacular fashion and large clouds of dense black smoke flowed up from the building. Employes of the brewery continued at their work while the fire was in progress. LUTHER SAYS HITLER | IS FIGHTING DESPAIR, Compares German Leadership With That Undertaken Here by Roosevelt. By the Associated Press. NEW YORK, August 18.—Dr. Hlm“ Luther, German Ambassador to the United States, said on his arrival from Europe today that the objective of the new German government is to “bravely establish itself with its own help instead of giving itself up to further despair.” Dr. Luther said he had spent six weeks in his country making close ex- amination of conditions there and had witnessed a_“complete_transformation.” He said Chancellor Hitler was carry- ing through his program for economic and social regeneration with much the same leadership and courage which President Roosevelt is displaying here, and that he hoped, in returning to his post in Washington, “to deepen and in- crease the mutual understanding be- tween these two nations which are so resolutely striving to master their own destiny.” i As evidence of his nation’s aid in furthering international peace, he pointed to the part Germany played in the recent London Economic Confer- ence. WELLES TO RETIRE Chatterton—Davis i | | —meets 'em all—and many —Arliss—Crawford—West —Francis—Barthelmess! E. de S. Melcher The Star’s Dramatic Critic and he tells you all about them in his more, too, E. de 8. Melcher WITH SUNDAY MORNING EDITION Y ey D. FRIDAY, AUGUST 18, 1933—TWENTY-SIX PAGES. THAT S IT! | HAD ONE OF THOSE JOLTS MORE THAN TWENTY YEARS AGO FROM CUBAN POST Expected to Be Succeeded by Caffery and Devote Time to Latin America. BY CONSTANTINE BROWN. Ambasasdor Sumner Welles is ex-| pected to return to Washington within | the next few weeks, as soon as the sit- uation in Cuba 1s definitely stabilized. He will take back his old position as Assistant Secretary of State in charge of Latin American affairs, while Jeffer- son Caflery, the present Assistant Sec- retary of State, will be sent as Ambas- sador to Cuba. Mr. Welles will be more than Assistant Secretary. He will prepare for the Montevideo conference to be held next December and it will be up to him to lay the groundwork in such a manner that this conference will not have the same fate as the London Economic Con- ference. It is undoubtedly a difficult task, but Ambassador Welles has proved his mettle; furthermore the diversity of interests are exclusively economic; that is to say, they can be easily ironed out with a certain amount of good will on both sides. There is not the slightest possibility of running into highly politi- cal controversies, as was the case In London. It will be purely & question of friendly bargaining. Hull to Be Chairmam. Secretary Cordell Hull, it is stated, will be the chairman of the American delegation, with Welles as his first lieu- tenant. Much is expected to come of the co-operation between these two men. Secretary Hull is & theorist, a strong advocate of tariff reductions, and hopes that his ideas which were foiled in London can be successfully applied to Latin America. Welles is a practical diplomat, who has shown a keen sense of realities. He will complete with his p}r]:c;.icnl ideas the lofty ideals of his chief. The success of Welles’ mission to Cuba is being greatly appreciated throughout Latin America. He has demonstrated to the republics, always suspicious of the ultimate aims of the United States, that all that this country wants is to live as “good neighbor” with the sister republics of the other continent. And for this purpose America is willing to | lend her friendly support every time | one of these countries is in trouble. ‘The reciprocal tariff conversations | were resumed today at the State De- partment when the Colombian Minis- ter, Dr. Fabio Lozano, called on As- sistant Secretary Caffery to begin nego- tiations for a reciprocal tariff between Colombia and the United States. Colombia is exporting into this coun- try platinum, coffee and bananas. None of these articles is subject to duty, con- sequently it would appear that the Co- lombian government does not need to enter upon a tariff agreement. Reduced Rates Discussed. Yet the Colombian government has suggested to the United States an agree- ment whereby a certain number of American products should be exported to Colombia at a reduced rate. The American experts have submitted a st | ot of such articles, which contains flour, lumber, textiles, office furniture, type- writers, auomobiles and a number of elecrical and farm appliances. Colombia already has a number of trade agreements with the leading Eu- ropeon nations, such as Great Britain, Canada, France, Italy and Germany. ‘The American Government is willing that Colombia should give our products the same treatment as provided under the most-favored-nation clause, but it selected the above-mentioned articles because it is thought they could successfully compete with similar prod- ucts of other nations. Colombia, how- ever, intimated, on her own volition, (Continued on Page 2, Column 4.) R P A GERMANS ARE WARNED TO CUT GRAIN CROPS Government May Refuse Support to Farmers Unless Reductions Are Made. By the Associated Press. BERLIN, August 18—An article in the Landpost, the Nazi agricultural or- gan, indicated today that the govern- ment is determined to cease supporting farmers next year if they do not reduce their grain production. ‘The paper admonished the farmers to cut production, which at present is more than sufficient to meet consumption, and wamned that the government cannot be expected to pay for overproduction by artificially increasing prices. Lindberghs Go Sightseeing. REYKJAVIK, Iceland, August 18 (). —While awaiting the arrival of the supply ship for their northern air- mapping four, Col. and Mrs. Charles | A) A. Lindbergh today spent their time sightseeing. e | special funds $81,727.25. The beer tax Churches Included ‘Under Blue Eagle Of Recovery Plan By the Associated Press. Churches are held by National Recovery Administration officials to be within the scope of the recovery act if they employ three or more persons, it Was repo: unofficially today. A church, the administration is described as holding, has the same status as any business con- cern hiring three or more em- question originated in Brooklyn, “City of Churches” and raised several points, which because of the recent and infor- mal form of submission of the question, were yet to be ex- plained by the administration. Among the questions were: “Would a church be required to display the Blue Eagle emblem?” “Would the boycott uFmposecl for industry be applied if the church did not come in under the N. R. A.?” and “Would an industrial code be necessary for the churches of the Nation?” T DECUNE. N DITRE TAKES Collection in 1933 $34,139,- 666, With Most of Items Showing Decrease. Taxes collected by the District of | Columbia declimed $2,713981.33 in the | past fiscal year as compared With 1932, | according to the annual report of Col-| lector of Taxes Chatham Towers, sub- | mitted to the Commissioners today. Collections last year amounted to $34,- 139,666.53. Although most of the items of collec- tion showed decreases, there were a few | increases registered. The gasoline tax| yielded $56,036.58 more than in the| previous year; insurances taxes were up; $83,687.40; interest $12,346.91; and trust for the short part of the fiscal year which is in the report, yielded $30,- 036.58. Realty Taxes Decrease. Collections of real estate taxes showed | a decrease of $418,180.27; tangible ger-l sonal taxes $163,023.19; intangible per-| sonal, $655,219; public utilities, $184,- 366.01, and motor vehicle taxes, $105,- 646.74. When the collector closed his books last June 30 there was owing to the District in real estate taxes $5,267,675.08, some of it taxes as far back as 1877. Most of it, however ($3,856,055.02) was on last year's levy. Taxpayers also owed the District $2,931,143.72 in tangible personal prop- taxes and $1,054,23460 in intangi- ble property taxes. Beer Tax Force Asked. Tax Assessor William P. Richards, in his annual report filed yesterday, rec- ommended the provisioh of funds to allow him to employ a 1 for the im- B:-mon of beer taxes, h has proved, said, a great strain am his office. He wants to hire a suj , four clerks and a typist as soon as possible. When the beer act was passed, the Commis- sioners refused a congressional proffer of $25,000 for personal services to be used in its administratioft. For the first time in Seven years as- sessments on land in the District showed a decline last fiscal year from $554,072,- 273 to $544,033911. Assessments for improvements, however, increased from $672,619,069 to $685,325,655, more than offsetting the drop in land values. The realty tax levy increased from $20,853,- 955 to $20,899,112, Personal Property Levy Falls. Owing to shrinking values of stocks, bonds and property generally, the per- sonal property levy fell $992,555.31 to $5,138,786.59. Reduced prices on auto- mobiles and decreased purchasing of new automobile replacéments showed up in a drop in the avergge tax per car from $4.60 to $3.27, although the gaso- line tax levy rose from $1,992,709.51 to $2,084,131.63. e GRANTED DIVORCE SEEE 2 s “Queen of Diamonds¥ and Count De Parceri Get Decree. PARIS, August 18, (P).—Mabel Boll de Parceri, known “the Queen of Diamonds,” and wfl de Parcerl of New Yorl ud‘lvuud P were 18.1}‘:{1. She mmade several in Europe with les Levine, ¢ Foening Sfar Ll () Means Associated OPEN SHOP Ford Absent as tions Will IS ASKED BY Steel, Coal and Oil By the Associated Press. industry’s open-shop declaration hearings on the code today, togeth TWO MINES CLOSED BY FORCED STRIKES Anthracite Workers Seek to Divide Work Among Collieries. By the Associated Press. HAZELTON, Pa., August 18.—Four- | teen hundred miners went on strike at two anthracite collieries today in re- sponse to the appeal of men without jobs who demand “we all work or no- body works.” A motorcade wound around the road to Cranberry Colliery of the Lehigh Navi- gation Coal Co., conferred with miners’ leaders and a short time later, A. Wal- bridge, superintendent. announced that his men had gone out on a “forced” strike. l;lmer's chief said about 800 men quit A short time later, the motorcade moved on to Mahoney City, where a mass meeting will be held this after- noon and further mines will be picketed, the miners said. Earlier today, 600 miners of the Taska-Willlams Alliance Pit were re- crulted to the cause of the idle workers. | ‘The miners are demanding that work time be divided equally among the col- lieries of the Lehigh Navigation Coal Co., but officials told the miners yes- terday that this plan is out of the question at present, because some orders specify that can be obtained only from certain mines. Today’s demonstrations were orderly, but State police sent to the scene yes- terday by Gov. Pinchot remained on | guard. RIVER COURSE CHOSEN FOR HARMSWORTH RACE ‘Will Give British Challenger Bet- | ter Show Against Gar Wood Than Rougher Lake Waters. By the Associated Press. DETROIT, August 18.—The course in the St. Clair River, above Algonac, Mich., has been definitely decided upon for the running of the Harmsworth Trophy race between Gar Wood and Hubert Scott-Paine, British challenger. Announcement of the selection of the St. Clair River course was contained in a telegram received this morning from J. Lee Barrett, secretary of the Yachtsmen’s Association of America, from Quebec. Barrett apparently had conferred with Scott-Paine who arrived at Montreal yesterdsy with his chal- lenging craft, Miss Britain ITI. ‘The Harmsworth races are scheduled for September 2, 4 and 5. The course, a 7 nautical mile ellipse, will haye two 3-mile straightaways, the outside straightaway fringing the in. ternational boundsry line between the United States and Canada. In the sheltered waters of the St. Clair River Hubert Scott-Paine’s small challenger is expected to have ter chance against the huge mahogany- hulled Miss America X than in the rougher seas of Lake St. Clair, where last year’s race was held. FOUR SHIPS AGROUND One American Tanker in Group. 0il Jettisoned to Lighten Vessels. MEXICO, D. F., August 18 (#).—Four oil tankers were aground near Tampico early today because of an increase in the flow of the Panuco River. One of them was the W. H. Libby of American registry, en route to the United States. Cargoes of oil worth several thousand dollars were pumped out in an effort to lighten the ships and refloat them. ing the code, Hugh 8. Johnson, |and asserted: | favor of a manufacturer, whether jl"’re.fl'dent Will Get Oil Agreement Today Despite Objections By the Associated Press. +Indications that the great oil indus- try's trade code would go to President Roosevelt with few changes were given today by Hugh S. Johnson, the recovery administrator, after strong criticisms of it had been lodged with him by petro- leum leaders. In his press conference, Johnson said the submission of the code to the indus- try by the N. R. A. and administration “was not a high-handed proposition, be- cause these people have had every Johnson indicated some slight revi- |sions might be made in the program before he sent it to the White House, Ibut indicated it would definitely go to the President today. Plans One Change. One change he said he would make | was in answer to a request from E. O. | Thompson, member of the Texas Rail- | road Commission, that the production i control section saying that the Federal Government shall allocate production to a State be made to provide instead that it “recommend” the production quota. Johnson explained this was merely a technical change, so it would be a recommended step “rather than i posing the will of the Government, but smilingly adding it would in no wise affect the provision giving the Federal Gevernment full authority to prevent shipment out of a State of more than the production allotted it by the Government. ‘The production control section, which stipulates the Government shall exer- cise its power over interstate commerce to prevent the “pouring out of un- manageable oil that nearly ruined a great industry,” Johnson said, “is based on the most constitutional provision of any law.” Have to Float in Own Oil. “The only penalty for the States that exceed their quota is that they will hl‘V‘I: to float in their own oil,” Johnson sal He expressed the view that if oil pro- lated adequately the question (Continued on Page 5, Column 3.) ROOSEVELT TO SEND HAL SEVIER TO CHILE Asks South American Government for Approval, Which Is Expected. of By the Associated Press. President Roosevelt is going to name Hal Sevier of Corpus Christi, Tex., to be Ambassador to Chile. ‘The approval of the Chilean govern- ment for his appointment has been asked and a favorable reply was antici- pated here. Mrs. Sevier is also prominent in Texas, where she has been custodian of the Alamo at San Antonio. Both were active in the presidential cam- paign last year. Sevier has served in the Texas Leg- islature and is a former newspaper publisher. He will replace William S. Culbertson. BUSINESS ADVANCE OF SUMMER SHOWS NO SIGNS OF LETTING UP By the Associated Press. NEW YORK, August 18 —Passing of the Midsummer season without ap- prednble‘ slowing qf the progress of recovery in business, said the Dun & Bradstreet, Inc., Trade Review today, makes the possibility of any sizable Tecession more remote with each pass- ing week. At the same time, the Review pointed out that “the delay in perféeting codes of fair competition is exefing a re- tardative influence on the rate of ac- tivity in a number of industries.” “With each succeeding week,” con- tinued the Review, * and more of the small industrial centers throughout showing for employment, which during the brief period of four and a half months re- vealed gains seven times larger than ;,l’wg;e set down for the same period of “Analyses of the industrial indices reveal a larger number of recessions from the Midsummer peak than a week ago. The lines on many of the charts that had been rounded off gradually since the latter part of July are now beginning to say, although the majority of these are above the position occupied in 1932 and 1931, and in , are nearly parallel of the gen- 1930 trend. “It is not solely the fear of price level of all consumers, who have converted these | of into long-deferred essential require- ‘ments.” { We are going to execute this law as we find it. execute it without exception and without fear and without favor.” chance to represent any possible views.” | duction in Texas alone could be regu- | us, Yesterday’s Circulation, 112,308 TWO CENTS. AND PAY Press. RATES IN AUTO CODE DRAW FIRE AT ONCE Hearing Opens, but Johnson Warns No Excep- Be Made. 30-HOUR WEEK, 60-CENT BASE GREEN AT START Occupy Efforts of N. R. A—Clean-Up Sought Before Roosevelt Goes. An administration demand for elimination of the automobile was presented at the outset of er with a plain-spoken warning to the entire business that the recovery law will be administered “with- out fear and without favor” for any manufacturer, great or small. While Henry Ford continued to remain aloof from jhose support- recovery administrator, expressed | regret that the entire industry was not represented. He recited the expected benefits to the manufacturer who displays the Blue Eagle “Certain it is that in the administration of this law and in the placing of the insignia of co-operation on the products and the merchandise of every manufacturer no exception can be made in he is large or whether he is small. We are going to Meaning Made Obvious. Although Johnson did not mention | Ford by name, his meaning was unmis- takable, as the Detroit manufacturer has persistently resisted all efforts to obtain his approval of the code sub- mitted by the Natiofal Automobile Chamber of Commerce. i The open-shop declaration, which was | inserted in the code after the customary provision guaranteeing the right of labor to bargain collectively through repre- sentatives of its own choosing without interference from employers was at- tacked by Donald Richberg, counsel for the Recovery Administration, as unde- sirable. ‘William Green, president of the Amer- ican Federation of Labor, denounced the proposed wages of 40 to 43 cents per hour, and the proposed maximum hours | of 48 per week, with a 35-hour average, |as too little compensation and too long week, with wages of 60 cents per hour. | periods of labor. He asked a 30-houf 1 Sees Point Misconstrued. | _The open shop paragraph provide: “the employers in the industry may continue the open shop policy,” and as lending itself on. He said it might be widely construed as a declaration of re on the part {of the manufacturers to comply with the provisions of the recovery law. Alvan Macauley, president of the chamber and president of the Packard Motor Car Co., presented a brief argu- ment in favor of the code and this was supplemented by Donaldson Brown, chairman of the board of General Mo- | tors. Deputy Administrator R. W. Lea presided. berg to a general Other Codes Studied. Meanwhile, steel, coal and oil also absorbed the efforts of the Recovery Administration to bring these huge ine | dustries into N. R. A. membership be- | fore tomorrow night, when President Roosevelt is scheduled to leave for Hyde Park, N. Y. At his press conference today, Gen. Johnson again made it clear that, while “I haven't even thought yet of the disciplinary powers in the recovery law,” they were put in there to be used if necessary and would be if the oc- casion arose. Federal licensing could be applied under the law. The recovery chieftain said he still planned to take the production-curbing, price-supervising oil code to President Roosevelt today, but was ready to cor- rect any mistakes pointed out by oil men during the morning in numerous complaints filed with him. Such cor- rections in the charter, he indicated, would be only minor changes after a night of “proofreading” by the industry Steel Agreement to Come. Johnson said steel men had not, up to the present time, reached a final agreement among themselves, adding that wages and working hours were the stumbling points. Conferences with both steel and coal men were on Johnson's schedule. “Are you going to put a code before the coal people today?” Johnson was asked regarding his meeting with this industry. “I hope they'll put one before me," he replied with a laugh, but left no doubt that both the steel and coal ne- gotiations were due for a swift climax Ford Silence Unbroken. Officials still had no word today as to the attitude of Ford with respect to the automobile code. Ford is not a member of the National Automo- bile Chamber of Commerce, which drafted and presented the code, and, although his representatives sat in at n&: drafting. he has been publicly silent since. All officials said they had no word from him and did not know whether he would seek to continue his traditional independent operations or enter into the hearing at the last moment. The full text of Johnson's remarks at the outset of the automobile hearing follows: “As we draw to a close the Presi- dent’s re-employment program, which has moved far ahead of any expec- tations, and which is resulting in cov- ering this country, from one end to the other, with blue eagles, this hearing is special agreement was made within the automobile industry on the subject of the President’s re-employment pro- gram, and because with the adoption of a code which I hope for with great rapidity, this great industry will have complied with the President’s request and aligned itself with the great move- ment that is going on throughout this (Continued on Page 5, Column 1.) i ' |GUIDE FOR READERSl Page veos.B-12 ..A-11-12-13 .B-9 Amusements . Finance Radio . Society . Sports Comics . Features .