Evening Star Newspaper, September 6, 1933, Page 2

A—2 *% —_— AWALT TESTIFIES N COOPER'S SUIT Deputy Controller Says Dif- ferent Rules Applied in Bank Emergency. During the banking emergency the office of the controller of the currency applied different rules to open and closed banks in evaluating their secur- ities, F. G. Awalt, deputy controller, testified today in the District Supreme Court_during_proceedings instituted by Col. Wade Cooper, president of the United States Savings Bank, to prevent inclusion of his institution in the Ham- lton National Bank merger. Awalt, who was acting controller during the emergency, said all bond de- preciation was written off in the exam- ination of closed banks looking to their reorganization, while going banks were allowed to carry bonds at their book value rather than at the price they would bring in open market. Under questioning by W. Bissell Thomas. attorney for Col. Cooper, he said this procedure was adopted be- cause the controller wanted to make sure that closed banks were absolutely sound before permitting a reopening. The hearing this morning was on a petition of an injunction filed by Col. Cooper. If it is denied, the court will consider for ratification contracts for sale of the prime assets of the eight member banks of the Hamilton merger to the Hamilton. Mr. Awalt followed on the stand J. F. T. O'Connor, Controller of the Cur- rency. Prime Assets Pledged. Explaining why the controller would not allow the reopening of the United States Savings Bank, Mr. Awalt said the bank, by borrowing to the utmost of its capacity, could not have obtained funds to pay more than 25 per cent of its deposits. When the bank holiday was declared March 6, Mr. Awalt said, the United States Savings was borrow- ing half a million dollars from the Re- construction Finance Corporation and had pledged as collateral most of its prime assets, “We took into consideration in de- clding whether a bank should reopen,” Mr. Awalt said, “its condition as shown by the last examination, general knowl- edge of the condition of the Wink and our knowledge of what the bank could borrow in an emergency.” The question facing the controller, Awalt said, was how much more the United States Savings could borrow. It had only a 10 per cent liquidity, he ex- plained, which could possibly have been Taised to 25 per cent by borrowing $300,000 additional from the R. F. C. In addition, he explained, the bank had been on a restricted payment basis since February 28, had had runs on it and there was considerable doubt in the mind of the controller that its capital structure was intact, since information had been received that the United States Savings sustained losses in the Commercial National and also had de- its in two Baltimore banks and one ashington bank which, it was known, would not reopen. Throughout his testimony Awalt pleaded repeatedly to Justice Jennings Balley that the questions proposed were not relevant to the charge that the controller had abused his discretion in refusing to allow the reopening of the United States Savings after the bank holiday, and had forced it into the Hamilton merger in order to make that project a practical possibility. Savings Needed for Merger. Awalt expressed the opinion that it ‘would be impossible to go through with the merger of the new Hamilton Bank unless the United States Savings Bank were part of the merger. He saild he previously had been of the opinion that the new bank could be formed without this bank, but that he had recently learned that depositors in the United States Savings Bank had subscribed for $51,000 or $53,000 of the capital of the new bank. It would be impossible, open the few bank withou unless it could be forthcoming from somewhere else. Awalt revealed that of the $1,250,000 capitalization of the new bank $900,000 had been put up by depositors in the eight clcsed banks and the balance, or $350,000, had come from cash subscrip- tions from persons not depositors. O’Connor Called. Controller O'Connor was the first tness. wit s Called by Attorney Thomas, O'Con- nor said he had taken no personal part in formation of the proposed new national bank, but had assigned the work to subordinates and discussed the matter with them. He recalled having seen Col. Cooper twice and remembered that at one time Col. Cooper had gone “generally” into the question of reorganizing the United States Savings Bank but did not recall that any details had been discussed. On cross-examination later by Roger ‘Whiteford, attorney for Edwin C. Gra- ham, designated president of the new bank and one of the defendants, O'Con- nor sald Cooper’s plan involved the re- lease of the liability of the stockholders to the depositors of the bank. It had been shown previously that Cooper owns 56 per cent of the stock of the $51,000 Sabscribed. ._In answer to questions by Thomas, ©’'Connor said depositors of the United States Savings Bank had subscribed $51,000, representing 5 or 6 per cent of their deposits, to stock in the new bank. \ in order to show there was no compul- sion for depositors to subscribe up to the 10 per cent suggested by promoters of the new bank. He said he had never asked any one to subscribe to stock in the new bank and that if any of his subordinates had or if they had employed salesmen for the purpose, it was done without his knowledge or consent. He said the first rights considered by his office in reorganizing banks were those of depositors and that last con- sideration was always given for stock- holders, who usually tried to dodge their JMability through waiver. ~ Mr. Thomas asked him if Col. Cooper had told him the Washington Mechanics Bank had offered to pay 75 per cent of the deposit liability of the United States Savings Bank as a purchase rice for the bank and that Cooper d refused because he sald he could pay all of his depositors 100 per cent eventually and 65 per cent at once. O'Connor’s answer was that Cooper never told him that. ‘There was considerable questioning and discussion as to what would hap- pen to a tor in one of the merged banks who refused to accep an account in the new Hamilton Bank and whether he would have to walt until six months after the new bank mufenbefmhecouldget&()per cent of his tor of his said, to b sum deposits from the conserva- bank. Sees Payments Delayed. ‘Thomas maintained that a depositor who refused to accept & new account would be made to wait, whereas George . Barse, counsel for the Treasury, held =that the conservator could pay ' Bim immediztes: y. Justice Jennings Balley, presiding, yuled that the answer was a question of interpretation of the words of the contract and sald the lawyers could argue that point at a later time. O'Connor _testified that except for the June 30 statement of deposits he had given the public no information 88 to the assets of any of the closed banks between the time he took office May 18, 1933, and today. Asked if he knew whether any depositor in a closed Washington banking house could tell what the value of his deposit in a closed bank was, Mr. O'Connor said that was a question he-could net angwer, b § a What’s What Behind News in Capital. Cost of the New* Deal Hidden by Maze of Figures BY I’_AUL MALLON. OU never hear much about what the new deal is costing. One reason is that exact figures are not available. The double entry budget system has the statisticians dizzy. It keeps even the dealers from knowing day to day how they stand in dollars and cents. The most intelligent totaling on the subject was obtained by an ambitious veporter at the Treasury Department. | He speat days collecting inside estimates and juggling them. His deduction was that the expenses contemplated for this year run around seven billion dollars. ! Budgets Total $7,161,000,000. You can arrive at that figure by tak- ing the ordinary budget as g starter if you can find it. It is around $2,773,- 000,000. The emergency budget includes $3,300,000,000 for public works and $1.088,000,000 for various relief agencies through the R. F. C. The total of those two emergency items is $4,388,000,000. Regular and emergency budgets together make $7.161,000,000. No one will agree with those figures because there are a lot of ifs and buts mixed in with them. In a general way, however, they may be accepted as a fair estimate of this year's proj But when you get dewn to actual cash out of the till so far, you find very little has been spent. Roosevelt Spends Less. Strange as it seems, Mr. Roosevelt actually spent less up to August 30 than Mr. Hoover had at that point in the last fiscal year. Mr. Hoover's total was $843.000,000 and Mr. Roosevelt's $580,- 000,000 tor the first one-sixth of the fiscal yepr. LikewRe, Mr. Roosevelt’s emergency relief program so far has cost less than Mr. Hoover’s. The total Roosevelt out- lay fgr emergencies up to August 30 was $214,000,000. The main items in rounds are: . F. C.. $107,000,000; public works, $46,000,000; C. C. C, $43,000,000, and Farmers, $15,000,000. Last year Mr. Hoover had spent $262,000,000 through the R. F. C. ‘The secret of Mr. Roosevelt’s ability to spend more and yet spend less is economy. His adjusted service certificate payments to August 30 were $50.000,000 instead of Mr. Hoover's $100,000,000. Also the postal deficit is around $3,000, instead of Mr. Hoover's $15,000,000. But the public debt has mounted from $20,000,000,000 at this time last year to_$23,000,000,000 now. It will be plenty more before we get through the year. N. R. A. Costs $330,000. The N. R. A. cost only $330,000 up to August 30. Authority spent $64,000. What the farm relief method is cost- ing is a debateable subject. Different items are strewn all over the balance sheet. The listed emergency expense is around $15,000,000, of which $7,500,000 went to the Farm Credit Administration and $7,112,000 to the Agricultural Ad- justment Administration. In addition, the credit administration was allotted $30,000,000 out of the general budget. From the present looks of the bal- ance sheet, the ordinary budget will show a surplus this year. It will be a substantial surplus if business im- provement continues. That surplus will be amplified when the Treas- ury cashes in on dollar devalua- tion. The influx of liquor taxes around December 15 may permit some of the bad existing taxes to be modified be- fore the congressional elections next year. The boys will let the public debt carry the hod. ‘That will arouse a lot of criticism from Mr. Roosevelt's opponents. They will call it trick bookkeeping and it is. However, no one here has a suggestion how it could be done differently. Plans to Pay Later On. You cannot spend four billions and out of the depleted pockets of the tax- payers now. They haven't that much to_be taken. ‘What all these figures boil down to is this: Mr. Roosevelt is carrying a modest budget for regular Government ex- penses. - He has economized on it strongly. . He hopes to spend twice as much for recovery outside the budget. He, will get the money by mew financ- ing. Very little of it has been needed so far, because the ma= chinery had to be set up first. He probably will not spend as much as planned, but whatever he spends will be added to the public debt. He plans to pay off the debt in years of plenty. State Secretary Hull chose the two easlest marks to start his tariff cam- paign. Brazil and Colombia send us coffee. We usually get what we want out of them in the line of tariffs by threatening to put a duty on coffee. Argentina will be harder. She sends us nothing but beef and wants our tariff reduced. Every time that subject is mentioned, howls pour in from the cattle districts of the West. Also Great Britain is straining to cop the Argen- tine market. That makes our exports to_Argentina highly competitive. If Hull is able to do anything about Argentina, he is & Houdini. If any one cares to know it, the reg- ular budget last year was $3,614,000,000, with only the Reconstruction Finance Doml;lflm in the “emergency” class outside. Current figures on wetail buying are much better than had been expected. They are not conclusive, but they hint The Tennessee Valley |, more for emergency relief and take it | disords THE EVENING STAR SWANSON ORDERED DIRECT TO HAVANA Naval Secretary Boards Cruiser, Due to Reach Cuba on Friday. (Continued From Pirst Page.) orders to go to Cuba. The Washington units left by train from Union Station | shortly after 9 o’clock. The present junta which has taken over the government of the Cuban Re- public cannot be described as a reliable administration whose word can be trusted that it will see itself to the pro- tection of the non-Cuban nationals. It is hoped that it will succeed in preserv- ing order, but this Government wants to avoid at any price any surprise such as an uprising which might cost the lives of American or other nationals in Cuba. It is true that there are a few intel- lectuals in the junta, but they have not the power or the apility of controlling the army, which, being led by non-com- missioned officers, might easily get out of hand. . This morning’s conversation between Ambassador Welles and Secr Hull ylelded no important additional infor- mation as to state of affairs in Cuba. Welles Reports Quiet. Welles reported that all was quiet in Havana this morning but that news posed | from the provinces indicated intense restlessness and excesses foreboding nothing good. Whether the quiet in Havana was a lull before the storm is difficult to say. The assurances given by the juta that law and order will be preserved are accepted with a certain amount of skepticism. They do not know themselves what the leaderless army might do at any moment. What makes the situation still more complicated is the fact that there are reliable indications that the new flare- up has assisted if not engineered by certal foreign powers which have an interest in embroiling the re- lations of the United States with the Latin American republics, especially at the present moment when the Monte- video conference appears likely to be successful. During the rebellion against Machado the Latin American republics had been flooded with propaganda denouncing the alleged intention of the United States to intervene in Cuba. Independence Loss Seen. The Latin Americans were warned that they were likely to lose their po- litical independence should they reach reciprocal economic agreements with the United States. The famous slogan, “Buy from those who buy from you,” being endangered by the contemplated American policy of a new deal to our Latin American neighbors, a new slogan was adopted and that was that “American trade follows the flag." These powers hoped that the anti- Machado rebellion would force an American intervention in Cuba and were ready to exploit such a move for all it was worth, purposely forgetting that the relations between the United States and Cuba were on an entirely different basis from those with the other Latin American countries. ‘These powers made, however, a fatal error in over-advertising America's in- tervention in Cuba with the result that their propaganda fell fiat when not a Sm%lee American ssilor or Marine had landed in Cuba. Revolt a Counter-Move. It is said from seliable sources that in order to offset the unfavorable effect of this propaganda, certain powers which had strengthened America’s posi- tlon instead of weakening it, engineered the new soldiers’ and students' re- bellion in Havana. The move was 50 carefully planned and so exactly timed that it is inconceivable, even if no other proofs had been avallable, to imagine that non-commissioned officers and highly strung impetuous students should be able to plan and execute such a revolution withput the astute aid of cool thinking men. ‘The administration purposely ignores such reports because America’s policy in Cuba will be dictated exclusively by developments. If the junta is capable of maintaining law and order, there is no reason why the American Govern- ment should intervene. U. 8. Ready for Action. But if the leaderless army gets com- pletely out of hand and serious excesses are committed in Cuba against Ameri- cans or other foreigners, there is ho doubt this country will intervene with such strength as to crush quickly any ‘The ition of the United States to- ward Cuba is regulated by the Platt amendment, which has been incorpor- ated in the Cuban constitution and which provides that at the discretion of the United States Government, Ameri- can armed forces may be sent to Cuba to re-establish and maintain law and order. Furthermore, by the treaty of Paris of 1901, the American Government has undertaken certain obligations former- ly ingumbent on the Spanish govern- ment for the protection of the nation- als of other powers living in Cuba. Consequently both, under the Platt amendment and under the treaty of Paris, United States can be ealled to intérvene when the situation be- comes chaotic through lack of an or- nized ent to guarantee the of American and for- rder. gal governm life and property eign nationals. Junta Instability Worrles. Although the administration is try- ing its best to avold an intervention in Cuba, there is every indication that it fears that such a move cannot be avoided because of the combination of an bolstered theit 3 was decided upon to create a clear and frank understand- ing among the neighbor republics of the Western Hemisphere as to condi- tions of Cuba resulting from the coup of yesterday and the attitude of the mMA.mzrh:l.n"!r Government ,toward the It was understood to have been made emphatically clear to the Latin Amer- ican governments that the United that increased prices have not fright- | in ened away customers. That is the big thing now. STATE 'S DEPT | | State Department glee over the M« resignation has not subsided yet. caused more behind-the-scenes joy there than any resignation in history. Democratic oley | If there is one department ernm Later Secretary fery joined in the White House conference on Cuba. They had been in communi- cation during the with Am- bassador Welles and Representatives of Latin American countries. do with ental personnel, bu his intrusion there was resented by department in both Repul tions for years. in the Gov- ent which needs Rooseveltizing, WASHINGTON, T) C., WEDNESDAY, SEPTEMBER 6, 1933. Scenes of ‘the Binghamton Express Train ‘Catastrophe Recent Wrecks Many Casualties in Railway Disasters in Four Years. By the Associated Press. March 20, Parry Sound. Ontario; 20 killed. July 18, 1929.—Stratton, Col., river; 10 dead. August 18, 1929 —Henrietta, Okla., train runs into cpen switch; 13 dead. November 30, 1929.—Onley, Va., ex- cursion train wrecked; 9 dead. August 2, 1930—Near McNeal, Ark., freight train collision; 8 killed. August 31, 1930 —Osage Hills, Mo., passenger train wrecked; 6 killed. August 16, 1931.—Rome-Vienna ex- press crashed into freight; 12 dead. January 2 collision; 50 dead. September 14, 1932 —Algeria, Fnreigni Legion troop train wrecked; 55 killed. August 29, 1933.—Tucumcari, N. Mex., wreck caused by storm; 8 dead. U. S, AIDE OF IDLE HELD INADEQUATE Administrator Hopkins Says Drop in Funds Exceeds Drop in Demand. By the Associated Press. Harry L. Hopkins, Pederal emergency relief administrator, today told a press conference the “whole picture of the unemployment situation from top to bottom shows inadequate relief.” Releasing figures showing a drop of 8.2 per cent in the number of families depending on public relief and a de- cline of 10.8 per cent in the amount of money spent in July compared with June, Hopkins said this megnt “the people in need are not living cff the fat of the land through relief.” Much Money Seen Needed. He added the Government was puttiny up from 55 to 60 per cent of reliei money now and “if the ‘adequacy busi- ness’ is stepped up as it should be it's going to cost us a lot more money.” He believed, however, that the Fed- eral fund of $500,000,000, of which more than $150,000,000 already has been granted to the States, probably would last until May. He did not say whether a further appropriation would be sought. July relief expenditures, including Federal, State and local, amounted to $59,000,000, compared with $66,000,000 the preceding month. The number of families aided was 3,464,000 against 3,779,000. Hopkins ascribed the drop in money spent to both inadequate funds in the States and cities and the lowering of relief costs in Summer months. —Sugar Beet Fields. Hopkins said he would give further attention soon to the situation in the Western sugar beet flelds, where he said an “unconscionable number of workers :oe:g on relief and working in the fields, “This shows that earnings cannot support them,” he said. ‘“We are going to have some more meetings right away to see what can be dcne.” The table made public by Hopkins showed New York spent more than any other State for relief in July, with $11,- 228,641. Wyoming spent the least—$31, 211. Pennsylvania led in the number of families helped, 387,257, and Nevada had the smallest number, 1,703. ‘The amount given each family was highest in Rhode Island, $23.54. The lowest was in Mississippi, $3.96. GEORGIA RAINS HEAVY IN WAKE OF HIGH WIND By the Associated Press. | ATLANTA, September 6.—Heavy rains on the Georgia coast came from the storm which today was reported by the ‘Weather Bureau between Savannah and Macon. The storm came into Georgia from the West Indies, after passing through parts of Florida. Its center moved very slowly during the past 24 hours. Light rains extended into Alabama and Ten- nessee. Rainfall was heaviest near the coast, Savannah reporting 6.50 inches during the past 24 hours. Augusta had 1.26 inches, Macon 132 and 112, ‘Temperatures were moderately low in Northern Georgia this morning. ‘The Weather Bureau storm to move up along the Coast more rapidly today. CONDEMNS REDS, NAZIS September 6.— the Atlantic u::fl the government take steps against the two groups wt prevent fuflih;zr d‘:fl““te’d v'; to nt a projected law design outr:w them. 1929.—Head-on collision | of two express trains at Drocourt, near | Pull-| man car falls through bridge into 1932.—Moscow, Russia, | ! of the milk train locomotive from the Below: A general view of the wreckage. crashed into the wooden car on the speedy train. It was here that a majority of the lives were lost. rear. At left, a view of tl LEADERSIREVOLT STRVE FOR ORDER Inush Organization to Keep- Above, right: A rear end view of the steel car which crushed its way into a wooden car ahead, under the impact The photograph was made a short time after a milk train plunged into the Atlantic Express, en route from Chicago to New York, at Binghamton, N. Y. Fourteen persons were killed, 100 | injured, a majority of them passengers in the wooden car. | crumpled wooden shell had been withdrawn from the end of the steel passenger coach which ripped into it for a depth of 30 feet. One of the priests who administered to the dying may be seen in the left foreground. The crushed end of the steel car shown in the background is the one which he remains of the death car after its —A. P. Photos. ARRESTS LIKELY INWRECK; 14 DEAD Nearly 100 Injured in Crash on Erie Road at Bing- hamton. (Continued From, First Page.) | Graves, it was said that “no one here has authority to talk.” | Normal traffic conditions were re- | stored before dawn, when the splinter- ed debris of a wooden coach was re- moved and derailed steel cars were hoisted back on their wheels. All of the major casualties were in the wooden car which was coupled between steel coaches. It split apart as the milk train swept around a curve and plowed into the motionless New York bound pas- senger train. Two steel cars on the rear were hurled against the wooden coach. These -steel coaches were de- railed. None of the cars ahead of the death car left the tracks and the engine of the milk train remained on its drivers. Engineer Questioned. The three-sided investigation seeks to find out why the milk train engineer did not know of the stalled passenger train ahead, or, if he did know, why he didn't stop. A flagman had been sent out from the rear of the fiyer. Engineer M. H. King of Elmira was at the throttle of the heavy milk train rushing down from Hornell with milk from metropolitan New York. He said: g didn’t see the signal light in time stop.” Silent Grove, where the accident took gl:‘::le, is about three miles from Bing- ton. The tracks follow the Sus- quehanna River, which is below and about 50 yards from the right of way. A State highway parallels the tracks on the north. Many motorists were passing when the collision occurred. Many of those killed and injured were returning from the Chicago Century of Progress Exposition and from the long week end Labor day holiday. List of Casualties. The dead were: employed in engineering artment of Erie at Hornell; crushed chest. Donald Burns, Susquehanna, em- vloyked in Erie coach shop, fractured neck. Harry Westfall, 44, Susquehanna, Erie yardmaster, fractured skull . Eli Stanaken, Susquehanna, telegra- pher, shock, internal hemorrhage. M. C. McCollom, Susquehanna, frac- tured neck. Mrs. 1;;( Keane, Susquehanna, frac- 3 e, Susquehanns, mother of Mrs. Keane, fractured skull. Comfort, Susquehanna, fractured neck. R. Vavrozski, Brooklyn, fractured skull. Mrs. Anna Muse, Passaic, N. J. Muriel Muse, 13, her daughter. ‘William Derigo, & gardener, who wit- the wreck, gave a vivid account Harry Lannon, 38, Susquehanna, Pa., | stop. He muttered something and kept on going. Then I heard the milk train coming and saw its light shooting ahead down the track. The brakeman had a | red lantern in his hand. He began| running like mad in the direction of | | the milk train, waving his red lantern | and I think a white one. I got off the | track to watch. “I didn't hear any squealing of brakes—you know they squeal like mur- | der when a train is stopping—and I| | said, ‘He doesn't see him.’ I began to | run as fast as I could away from u’le‘ track. The next thing I knew there was an awful «crash, like a mountain falling down. I ran back to the pas- senger train then. Part of the cars were piled up, like a heap of kindling | wood. I could hear people screaming | in agony, crying for help and yelling | other people’s names. | “I began to pull people out of the wreckage. One little boy was scream- | ing for his mother. I don't know how | many I pulled out. I haven't been able | to sleep & wink since, and I guess it'll | be a long while before I want to. I| can't get this thing out of mind. It was awful.” | “Like Falling Mountain.” “It was like a mountain had fallen on the train,” related David Robinson, colored, of Jersey City, veteran of many years in the Pullman service. Robinson was in the wooden combi- nation chair and diner, which was tele- scoped by the rear steel car. “I was carrying a cup of coffee down the aisle when I was sent sprawling half the length of the car,” Robinson said. “For a long time I didn't know what had happened. When I finally regained my senses, I looked up and saw that the car was nearly split apart, a mass of broken glass and timber. “My first thought was of the only other person in the car (a_passenger, M. C. Yoder of Endicott). I called to him and found he was not hurt. Then some one came and took us out.” Mother Dead; Boy Escapes. Arthur Teskey, 12 years old, escaped the fate of his mother, Mrs. Arthur Teskey of Susquehanna, Pa., one of the 14 killed, by being in the wash room of a steel car. “I had gone to the wash room for 8 drink of water with another boy whose name I do not know,” the grief- stricken lad said. “There was a ter- rific crash, then pefsons screaming and yelling. We were locked in. The im- pact had jammed the door tight. “We were there for what seemed ages when some rescuers heard our cries and knocked down the door with an ax. A water tank fell and narrowly missed hitting us, but otherwise we didn't get urt.” “All of a sudden everything turned black,” was the description of a Mrs. Horrigan of Susquehanna, who suffered a wrenched, neck. “There was a violent shaking, the lights went out and for & long time all was darkness. It was terrible. Al around out of the darkness came of the injured. Then I realized had been a wreck. cries there L C. C. PROBE UNDER WAY. Three Investigators Are Sent to Wreek Scent. By the Associated Press. ‘Three Interstate Commerce Commis: sion investigators set to work today to determine full responsibility for the dis- near Bj , N. Y., 3 George V. Lovering, chief of the com- mission’s accident investigating division, and 8. D. Ashford, signal engineer, were was no Federal law against this, but that the commission had recommended annually for years that steel cars be used exclusively as a safety measure. The latest record of the Interstate Commerce Commission listed 89 wooden ccnstruction passenger coaches for the Erie d. ‘The record, as of last December 31, also showed the road as operating in passenger traffic five “combination pas- senger cars” ant one car classed under the type “other passenger train cars.” The Erie, on that date, operated 359 steel coaches and 181 steel underframe coaches. ‘The same record showed 82 wooden construction coaches for the Pennsyl- vania, with two additional combina- tion passenger cars and six baggage and express cars. That line used on that date, 2,501 steel construction coaches and no steel underframe coaches. The New York Central was listed for no wooden coaches, six wooden com- bination passenger cars and six wooden baggage and express cars. Its passenger equipment included 1951 steel coaches and 256 steel underframe coaches. ENGINEER SAW SIGNALS. | Knew Track Was Not Clear, Erie Viee President Declares. CLEVELAND, Ohio, September 6 (#). —Vice President R. E. Woodruff of the Erie Railroad said the engineer of the milk train which plowed last night into a waiting passenger flyer near Binghamton, N. Y., was aware that he did not have a clear track. Erle officials made no direct refer- ence in their ent on the wooden coach sandwi in Dbetween steel coaches, but asserted that the passen- ger train was equipped with “all steel under frame.” “Eastbound passenger train No. 8" ‘Woodruff said, “consisting of eight bag- gage, mail, express, coaches and parlor cars, all steel under frame, was stopped by an automatic signal because of a stock train just ahead clearing the main track. * * * “The - rear marker lights on the standing passenger train could be seen for a mile. The msmmm fl::xl‘nh: pas- senger train was out . The air brakes on the milk train were in good working order. “The engineer of the milk train had admitted seeing the signals of the standing passenger train and the flag- man of the passenger train and cannot explain the accident. “This is the first train accident on the Erie Railroad in which lost their lives in 14 years.” ‘Woodruff said H. J. Bordwell, general manager of the Erie's Eastern division, was on the scene of the wreck continp- ing the road’s investigation and super- vising operat CLOSER RELATIONS WITH LEAGUE SEEN AMERICAN POLICY (Continued From First Page.) diplomats and delegates back and forth between Washington and Geneva and other capitals several times a year. ‘There is already & permanent American diplomatic representation at Geneva, but it is headed by merely a consul-general, v'lhzren most other ‘The possibility .of appointing perma- nent American Ambassadors to the League to look after Amercan inter- ests at Geneva is being studied, it is DAVIS DISCUSSES ARMS. U. 8. Envoy Confers With Sir John e e 6 (#).—Ameri- Control of Unstable Mili- tary Elements. (Continued Prom First Page.) an organization in the new revolution, apparently was not hostile. Policies Enunciated. It was a junta of five professional men that took charge today of the sec- ond revolution-born governnient Cuba has had in less than a month. This “Executive Commission for pro- visional government,” named after the rank and file of Cuban defense forces had driven out President de Cespedes and his cabinet. will rule until an act- ual revolutionary regime is establishe< Tts members met this morning to out- line their policies, to seek the return of order, to demand recognition by other nations of the new administration and to formulate plans for electing & con- stitutional assembly. An earlier manifesto announced the revolutionary movement, comprising ¢q- listed soldiers and sajlors and civilia.y: of various factions, led by the students® organization, will fight “for revolution- ary vindications” upon “pure principles of national sovereignty.” Economic Revival Sought. These “vindications” were outlined in the proclamation as economic recon- struction, trial of “delinquents” of the former government, recognition of T national debts, formation of adeguate courts, reorganization of national services for an early Teturn to normalcy and measures for creating a new Cuba “founded on the firm basis of law and the most modern concept of democracy.” In Havana Harbor was the United States destroyer McFarland, sent hur- riedly from Key West. The destroyer Sturtevant was at Santiago, where a moeb killed four men reputedly members of the strong-arm squad of Gerardo Machado, whose government fell on August 12 andegave way to the short- lived administration of Dr. de Cespedes. Other Warships on Way. ‘Two other warships, the cruiser Rich- mond and the destroyer Bainbridge, were due today or tomorrow from American bases, also with the an- nounced purpose of protecting Amer- ican interests. The attitude of the old guard politi- cal parties toward the emergence of the junta in a swift and ccmparatively peaceful coup had not been defined, but qualified observers predicted an early move at conciliation. Thus, an army top sergeant, who is known as one of Cuba’s best court stenci ers — square - jawed, loud- voiced Fulgencio Batista—became com- mander_of the army and five civilians became the heads of the government. They are Jose Irizarri, 40-year-old lawyer, Guillermo Portela, 48, a pro- fessor of penal law in Havana Univer- sity, who is the nominal president be- fore the diplomatic corps; Ramon Grau San Martin, 45, professor of anatomy; Porfirio Franca, 45, & banker, and Sergio Carbo, 39-year-old editor who headed the unsyccessful Gibara revolt in 1931. ‘Welles Meets Leaders. United States Ambassador Sumner ‘Welles, meanwhile, was in close touch with developments. Before De Cespedes | and the cabinet resigned he conferred | with the outgoing and incoming leaders, and remained at the embassy until a late hour Soldiers patrolled the city under or- ders to maintain order at all costs. On: private said the presence of the war- ship in the harbor induced the army, without commissioned officers since the “show its mettle.” also served to lessen the en- thusiasm with which younger radicals received news of the rebe! X ing the movement, Batista, one of its leaders, said: “The steps taken were the result of plans of civilian leaders and every one of us expects to return to in the permit our replacement by officers of the army, who have not stained their uniforms by unworthy acts against the people of Cuba.” Denies Red Tendencies. He added that there were no com- munistic tendencies in the armed forces and that such will not be tolerated. Dr. de Cespedes was hurriedly sum- moned from an inspection tour of dis- tricts hit by a recent hurricane. When the Revolutionary Commission visited him to ask his resignation he said: “I have faithfully fulfilled the pro- gram of the revolution of the people. Now it h‘!‘u ‘tn}_:e for others to assume Meanwhile a split was expected b some in the ranks of the A.<B. C. ucra{ Supotier T large part of De Cerpedes ge des. Younger members of the group joined the new revolutionary movement, and |:unu members criticized what they called a Fascist trend in the A. B. C. Angel Hernandez became pro- visional chief of staff of the navy. He sald presence of the American destroyer did not mean intervention. ‘Welles Friction Denied. During the night members of the Havana University faculty, labor lead- ers, Nationalist, party chieftains and others called at the Presidential Palace to pay their respects to the new regime. Carbo today declared that “rumors of friction between the new governmen: lnud thATzwm or Welles l’re untrue” an “the presence of American battleships in Cuban waters does not mean a threat to Cuban sover- eignity—the United States took the l»u:ge action Aulm‘yls." & meeting early today the junta approved a resolution t‘ll.I?.l'L\mtmgj ad- ministrative departments thus: Port- follos of state and justice, Portela; interior, communications, war and navy, Carbo; treasury, Franca; education and sanitation, Grau San . Martin; pubhc warrrk“a. agriculture and commerce, Iri- a1 id, will remain in charge their sal of respective departments. GIRL TAKES POISON Attempts Suicide When Sisters Get New Dresses. BALTIMORE, September 6 — When her two sisters were given new dresses Monday night, 14-year-old Cath- erine Kaschak began to cry. A moment pol L W. He expects to thh:uxtlfldmumfin(mr: turn of Premier MacDonald from Scot- It was learned at the Davis head: that United States support of scheme will 3