Evening Star Newspaper, September 22, 1933, Page 1

WEATHER. (U. S. Weather Bureau Forecast.) Increasing cloudiness, probably followed by showers beginning late tonight or to- morrow; somewhat warmer tomorrow. Temperatures—Highest, 6 today: lowest. 55, at 6 am. Full report on page B- Closing N. Y. Markets, Pages 12,13 & 14 8, at noon today. secor Wa. Entered postoffice, 32,601 nd class matter shington, D. C. @b WASHINGTON, D. C, ¢ Foenin WITH SUNDAY MORNING EDITION o Shar FRIDAY, SEPTEMBER 22, 1933—FORTY-SIX PAGES. PROFESSORS DRAFT FORMULA 70 END TURMOIL N CUBA Grau San Martin Would Keep Presidency, With Limit Placed cn Powers. FOOD SUPPLY DWINDLING;| REVOLT RUMORS RECUR| TFivefold Opposition Goes Into Con- ference to Study Conciliation Proposal. tember 22.—Havana v professors today drew up a formula which they hoped would con- clliate the tense political situation which, it was authoritatively learned, provides that Ramon Grau San Mar- | tin remain as President, but with his powers sharply curbed The five-fold opposition to the Grau regime went into conference to study the plan as the capital, outwardly calm, expressed concern over its rapidly dwindling food supply and heard re- curring rumors of a new rebellion. The conciliation formula was said to provide for the appointment of a con- centration cabinet whose members would be responsible to an opposition junta including representatives of all political factions. Grau would not be empowered to ask the resignations of any of the cabinet members. Reply to Opposition Withheld. Grau still had not replied to opposi- tion demand that he step out of office. ! Soldiers still had trouble with rebel forces of Juan Blas Hernandez. veteran campaigner against former President Machado, in Camaguey Province. Residents of Havana checked their food supplies. tinued on strike, and estimates were made that the capital would go hungry if the strike continues another week. Representatives of the student direc- tory. leaders of the pro-government fac- tions, conferred last night and early today with Miguel Mariano Gomez, leader of the Marianistas, one of the five leading opposition groups. It was understood the students tried to persuade the former mayor of Ha- vana to relent in his insistence that Grau San Martin quit in favor of a “truly nationalist government.” There were rumblings below the sur- face. At a manifestation of 5,000 per- sons around the Presidential palace there were cheers for Grau San Mar-| tin and fights, in which one man was critically stabbed when he disagreed with another in the crowd. The first actual conflict between the government's soldier-student army and the rebels occurred at Las Cuevas, in Camaguey, and, reports said, two of Blas Hernandez's followers were killed. Several members of “the government’s forces were said to have been wounded. Fight Lasts Few Minutes. The rebel-soldier fight lasted » few minutes, and followed an unsuccessful | effort of troops to conduct a peace par- ley with Blas Hernandez. Afterward the rebels went deeper into the hills, | where soldiers could not track them. The meeting of the student direc- | tory and Gomez broke up at 3:30 am. | A student spokesman told the Asso ciated Press that “Gomez is with this| government, but is asking a formula to satisfy the leaders of political factions. | He is firm, however, in saying Grau San Martin cannot resign, as he is the only man today who offers guaranties for_the country.” The spokesman added the students had decided to send messages to gov- | ernments and students in Latin Amer- ican republics protesting against what they call an economic boycott against Cuba in the United States. “This is a part of the campaiga to | oust Grau San Martin and we 4re not allowing it,” the student declared. Meanwhile, of the four American | warships off Havana, the transport| Nitro was expected to sail shortly. The others are the cruiser Richmond 2nd the destroyers Simms and Sturtevant. Shots Fired From Auto. Ten other United States craft are in nine other Cuban ports and the battle- | ship Mississippi remained off the | northeast coast. | Shots were fired in the nignt from | an unidentified automobile on the Mo- | linos Barracks, where studenis have, been conducting their drills, Many persons were arrested through- | out Oriente Province, especially in the | Holguin section, for allegedly plannil;l]gi the | I an uprising in the interests of Menocalist group. In Havana Leonardo Cano, A. B. C. leader, and two of his friends were ar-!| Tested, as well as three policemen and | 14 soldiers. | Members of the Rotary Club contin- | ued their efforts to mediate between | the government and the opposition. | Col. Fulgencio Batista, now in com-| mand of the Cuban military, agreed to (Continued on Page 2, Column 3.) LEAGUE OF NATIONS FOR AMERICAS URGED' Salvadorean Minister's Probosal; Seen as Bid for Recog- nition by U. S. By the Assoclated Press. MEXICO CITY, September 22— Proposals for the formation of an American League of Nations and an American Court of Arbitration will b2 made at the forthcoming Pan-Ameri- can conference at Montevideo by EI Salvador, the Salvadorean Minister bere announced today. The announcement stressed the need of Hispano-American solidarity, but the Salvadorean Minister questioned, said the United States would be cluded. This was interpreted in Latin Ameri- can circles here as a bid by the gov- ernment of El Salvador for recogni- tion by the United States, which at present does not carry on relations witn the government of President Maximiliano H. Martinez. Previously it had been stated the situation resuiting frem the insistence of Washington cn upholding the treaty of 1923, under which it agreed witn Central American countries not to recognize governments gaining power through force, would materially ham- Ford May Operate On 32-Hour Week; Still Spurns Code |Auto Magnate Reported | as Ready to Match N. R. A. Terms. | By the Assoctated Press. i DETROIT, September 22.—The Ford Motor Co.. now operating on a 40-hour work week, shortly will place its em- ployes on a work week within the 35- hour-week provisions of the N. R. A. automotive code, which Henry Ford has not signed. | Details of the plan for reducing | hours for the 50,000 Ford employes— possibly as low as 32 hours a week— now being worked out by the com- any. “Mr. Ford intends to conform with the code by working his men an average of 35 hours a week,” said one Ford of- ficial today. “He does not intend to violate the N. R. A. code.” Comment in automotive circles gen- | erally is that the company is revising |ils schedules so that employes will work 64 hours every two weeks, av- eraging 32 hours a week. Pay Rate Is 50 Cents. The Ferd scale at present is 50 cents an hour for the lowest paid em- ployes, 7 cents more than the code de- | mands. Indications are the company plans to work five days one week and three the | next. on an cight-hour-day basis. | Whether there will be a change in " (Continued on Page 5, Column 5.) NAME HINDENBURG *INREICHTAG CASE Kin of Fire Suspect Claim He | Failed to See That Note Was Delivered. | By the Associated Press. LEIPZIG, Germany, September 22.— President Von Hindenburg's name was brought into the Reichstag arson t!inll s warehousemen con- |today in connection with evidence that | Marinus Van Der Lubbe, one of the de- fendants, never received from his family |in Holland a letter begging him to ac- cept the defense counsel they had ar- | ranged for him. | The family applied to President Von Hindenburg to see to it that Van Der Lubbe received this communication. A letter from the family, asserting that he never did get the communication, was read to the court. They desired that Benjaminus Wil- helmus Stomps, a Dutch lawyer, defend their son against the charge that he 'had set fire to the Reichstag in Feb- |ruary. Stomps did not get in the trial |8s_counsel, but he was on the stand Itoday as a witness. , ‘Turns Back on Lawyer. Van Der Lubbe made it clear he did not care to have his fellow countryman serve as his lawyer. The court allowed Stomps to speak to the defendant dur- ing an intermission, but Van Der Lubbe | turned his back on Stomps and refused {to_enter into a conversation. | Before the intermission, Judge Wil- | helm Buenger questioned the defendant concerning the letter from his family. “Did you get this letter?” the judge “No,” Van Der Lubbe replied. Then, after a pause, he said: “Yes.” The judge asked whether, after read- ing the letter, he had declined to accept Stomps as his counsel. “I don't want him,” the prisoner re- plied. Arthur G Hays at Trial. Arthur Garfield Hays, New York at- torney, who participated in the investi- gation into the case conducted by an international commission of lawyers in London, attended the trial for the first time. (This commission decided there was ground for grave suspicion that the Reichstag was_set afire by the Nazis themselves rather than by the Com- | munists_they accuse of the crime.) Whether Van Der Lubbe was pre- tending yesterday when he gave the impression of being a half wit occupied the Supreme Court during proceedings earlier today. Van Der Lubbe's replies were some- times incoherent and he often laughed because, he said, the trial was amusing. According to Prof. Karl Bonhoeffer, noted allenist, the 24-year-old Dutch brick mason was practically normal last March when he was examined. “It_is not impossible, however, that Van Der Lubbe's recent refusal to take nourishment brought about a state of emotional weakening which can well vent itself either in crying or laugh- ing,” the alienist testified. When Bonhoeffer examined and ob- served Van Der Lubbe last March, he said, he found no psychic disturbance and therefore was puzzled at the young man’s behavior. The alienist testified further: “Last March he gave the impression of an opinionated and positive man of ready repartee who was pl ally strong.” Police Inspector Testifies. According to Police Inspector Heisig, who first examined Van Der Lubbe at the time of his arrest while the Reichs- tag building was still burning, “we were able to talk to each other most easily.” The inspector testified further: “Van Der Lubbe not only explained very readily all that had happened, but when the protocol of the hearing was read to him he frequently interrupted | to request changes in his testimony. “Durlngnmsumg days he often sug- gested what topic might profitably be discussed ot the next examination. He seemed proud of the deed and con- sidered it necessary to awaken work “When taken to the scene of the i cendiary he knowledge of the building.” Helsig declared his investigations in Holland showed that Ve Der Lubbe was known throughout the country as a Communist. An allegation that Edmund Heines, a Nazi leader and now the police chief in | Silesia Province, was involved in the | blaze was the day’s opening subject. The state’s attorney read a telegram from Heines saying he was at Glelwitz from February 20 to March 1. The fire occurred February 27. BEER MAGNATE TO WED NEW YORK, September 22 (#).— August A. Busch, jr, vice president and general manager of Anheuser- Busch, Inc. and Mrs. Elizabeth O. | Dozier of St. Louis obtained a marriage | license today. Busch gave his age as 34 and his ad- dress as St. Louls. His first wife died in 1929. Mrs. Dozier was born 38 7ears ago in Memphis, Tenn., a daughter of John Overton. Her marriage to Iewis per the work of the Montevides meeting. D. Dozier ended in diverce September 8 at Clayton, Mo, | nons at the time Urschel was held pris- BAILEY WILL OFFER HIS DEFENSE TODAY AT URSCHEL TRIAL U. S. to Close Prosecution by Tracing Money Used as Kidr-n Ransom. DESPERADO IS LINKED DIRECTLY WITH OIL MAN Texas Farm Family, Turning State’s Evidence, Tell of Gang’s Handling of Victim. By the Assoclated Press. OKLAHOMA CITY, September 22— Prosecutors poised their last shafts of accusal today at the dozen persons on trial for conspiring in the kidnaping of Charles F. Urschel for an oil fortune in_ransom. District Attorney Herbert K. Hyde, bearing the burden of the Government's attempt to bring the life-term pro- visions of the “Lindbergh” kidnaping law to bear against those charged in the plot that cost the Oklahoman $200,000, said his remaining witnesses would complete the case by noon. Having already presented the bulk of its evidence against Harvey Bailey and Albert Bates, the outlaws, and the three | Shannons, owners of the Texas farm where Urschel was kept for more than a week last July, the Government moved today to connect seven Minne- s}mus and St. Paul men with its story of conspiracy. A handwriting expert was expected by the prosecution to bol- ster evidence of a carefully laid plot. Seven Accused Men. ‘The seven Twin Cities men—Isadore Blumenfield, Sam Kronick, Pete Valder, alias Hackett and Nelson; Clifford | Skelly, Edward (Barney) Berman, Charles Wolk and Sam Hozberg—have appeared each morning to sit in a stolid row behind their counsel, get up and stretch during recesses and file silently Efif, to their hotels at each session’s e. The Government says $5,500 of the Urschel ransom was found in their pos- session and the defense is that the men were ignorant of its origin. The Gov- emment contends the men knew well | { that the money was “hot,” and says it has nearly found evidence to prove it. James H. Mathers, counsel for Bailey, | Mtsurmne ‘jallblfiaker, said he would file | a score of motions to dismiss ch: against his client. L | Bailey Identified. n::i;-'ytew:s 1denlifl§d for the first esterday as a visitor at the County, Tex., ranch of the R. G.esl"lva‘:? oner there. However, the Government ;le.!rllg l(x)x‘ ‘:h amhr:gt to introduce evl! sul e : ‘quent Dallas, Tex., Mrs, Shannon, who with her husl and his 22-year-old son .b‘nl:'g fellow defendants with Bailey and Bates, signed a statement submitted as evidence which told of a night visit of Balley to the actual kidnapers, Bates and George (Machine Gun) Kelly. The vicious Kelly and his wife Kath- ryn still are fugitives. Attorney General Cummings, in Wash- ington, declared it was only a matter of time until Kelly would be captured. been threatened, expressed the be- lief yesterday that Kelly was in Okla- homa City, although the desperado’s | letter threatening to kill the Urschel family was mailed from Chicago. From the witness stand Gus T. Jones, head of the San Antonio Bureau of Investigation of the Department of ! Justice, and E. J. Dowd, head of the Dallas bureau, gave the details of how the Government rounded up the de- (Continued on Page 6, Column 1) . CATHEDRAL BURNS IN $1,600,000 FIRE 500 Pupils and Nuns of Valley- field Convent Are Taken to Safety. By the Assoclated Press. VALLEYFIELD, Quebec, September 22.—Fire destroyed the historic Valley- fleld Cathedral and a convent today with an estimated loss of $1,600,000. Five hundred occupants of the Con- vent of the Sisters of Jesus and Mary, pupils and nuns, were taken to safety. One fireman was injured. The destruction brought to six the number of Catholic churches burned in Quebec Province in the last 12 months, with the total losses set at $2,620,000. Firemen fought the fire four hours, but could save only the sacred host from the cathedral. A boys' academy south of the con- vent and & nearby orphanage were threatened. The orphans and convent puplls found shelter in the city. Fall- ing stones from the cathedral struck the Bishop's Palace, but caused only minor damage. Officials early today had not deter- mined how the fire started. EXECUTION AFFIRMED Earl Quinn Must Die for sln{ing School Teacher Sisters. OKLAHOMA CITY, September 22 (P).—The death sentence of Earl Quinn, ex-convict, found guilty in a second trial at Enid last March 7 for the slay- ing of Jessie and Zexia Griffith, Black- well school teacher sisters, was affirmed today by the Criminal Court of Ap- Date cf electrocution in the electric chair at the McAlester Penitent would fall about November 24. The Griffith sisters were slain on a roadside while en route to Norman after spending the Christmas holidays at home. WAREHOUSE IS BURNED Building Covering City Block Razed at Moultrie, Ga. MOULTRIE, Ga., September 22 (#).— The People’s Warehouse, covering an entire city block, was destroyed by fire here early today. Two thousand bales of cotton were burned and loss was estimated at more than $100,000. A night watchman discovered the blaze in & bale of cotton, but the fire was out of control before the fire de- partment could reach the building. ‘The warehouse was ane of the - est in the Georgia tobacco belt. After clos of the tobacco it was used for cotton storage. mum Attorney Hyde, whose family | GOTHAM PREPARES T0 HOLD EXCHANGE! Reports Say Tax Program Will Be Scrapped if Bank- ers Grant Loans. By the Associated Press. NEW YORK, September 22.—A few hours before Gov. Lehman was to meet with bankers and city officials today on | New York City's fiscal problems, word | got around that a decision might be| reached obviating the necessity of| moving the Stock Exchange to New Jersey to avoid brokerage taxes. It was being predicted that the ad- | ministration, faced with removal of the | exchange, would scrap its $4),000,000 emergency tax program if bankers will agree to advance funds for unempley- ment relief purposes. ‘The World-Telegram, taking cogni- zance of the widespread speculation, ted reliable irters as authority for the statement that under such eircum- stances the city would issue serial bonds againsi its tax arrears of $230,000,000 and thereby postpone the need of col- lection from 10 to 20 years. Previous Attempts Rebuffed. Previous attempts by the city to gain money from bankers were rebuffed. The banks pointed to the tax delinquercies and large operating expenditures as in- dicative of a collapsed city credit struc- ure. Should a loan be agreed upon or some method adopted to permit scrap- ping of the tax program, reasons for moving the exchange to New Jersey to avoid taxation would automatically be voided. To attend the meeting with Gov. Lehman and the bankers are Samuel Untermyer, city financial adviser and “father” of the tax program; Mayor O'Brien, and Controller George Mc- Aneny. | Mayor John P. O'Brien is scheduled | to act on the emergency tax bills after | a statutory hearing set for Monday | afternoon. | ‘The emergency tax program contains ' six bills de to raise approxi-| mately $40,000,000. ‘The measures would impose & 4-cent tax on stock | transfers, a 5 per cent tax on the gross incomes of brokerage houses, a 13| per cent tax on gross incomes of util- ity companies, a 5-cent tax on taxicab | rides, a 50 per cent increase in the (Continued on Page 2. Column 6.) - EASTERN RAILROADS MAY SLASH FARES New York Newspaper Reports Presidents Have Agreed to 2 and 3 Cent Cuts. By the Assoclated Press. NEW YORK, September 22— Slashes in fares on Eastern railroads were in prospect today. The New York Herald-Tribune sald presidents of Eastern roads had agreed to cut the basic fare to 2 cents a mile for round trip and 3 cents for one-way tickets and eliminate sur- charges. ‘These rates, expected to apply In all Eastern territory except New Eng- land, are subject to modification at & meeting of the presidents with rail heads from all other sections. No formal announcement was expected until after this meeting, to be held soon. The newspaper said the schedule was agreed upon at a meeting yester- day. It dooms the present basic rate of 3.6 cents a mile and marks com- pliance of the New York Central and Pennsylvania roads with demands of Western carriers for a rate that will draw passenger traffic back to the Three-Power Pact On Arms Reported Reached at Paris | France, Britain and Italy Agree; Davis Expected to Back Plan. By the Associated Press. PARIS, September 22—A complete three-power accord among _France, Great Britaln and Italy on disarma- ment and arms control was authori- tatively said to have been reached to- day, but the eguestion of penalties suu; was unfinishe Norman H. Davis, American disarma- ment representative, was expected by the French to give general support to the plan, thus making possible a four- power front at the impending Geneva Arms Conference. Davis, Foreign A meeting of Mr. Minister Joseph Paul-Boncour of France and Foreign Secretary Sir John Simon of Great Britain was arranged roxiJ ‘ts):l.s evening. rmament questions also were discussed at a luncheon at the British Er;:busy given by Lord Tyrrell, the (Continued on Page 2, Column 5.) CLUE IN LINDBERGH CASE COLLAPSES Paris Police Search Called Off When Information Proves False. PARIS, September 22—After an- nouncing that they had information of importance in solving the Lindbergh kidnaping case, Paris police officials said later today that they had been mistaken and that no search for the kidnapers was being made. Originally it had been announced that the police had learned the name of a man who had a £1,000 note identi- {\;g by the Bank of England as part of ransom money extorted from . Lindbergh last year. o (The Lindbergh ransom money was gald in United States $5, $10 l:'lyt‘l $20 | will ills, and heretofore there has been no report that British currency was in- volved. The American bills might, however, have been exchanged for Brit- ish currency and the £1,000 note later have been traced to that exchange.) ‘Three men were arrested in Antwerp, it was reported, after trying to cash the British note. It later disappeared but was recovered in a judge's waste basket. One of the prisoners later re- vealed the bill had been inclosed in an envelope addressed to the judge and mailed after the three had been sur- rounded by police. The judge thought the matter a joke and gave the envelope to & clerk who crumpled it and threw it away. Arrive in Leningrad. LENINGRAD, U. S. S. R., September fi!g"._rrclo!éd"llzd Ml;d Charles X Lind- Lve ere after from Helsingfors, l"lnhlgd. e The purpose of the trip, the colonel said, was to examine the possibility of (Continued on Page 2, Column 7.) TWO TRAINS HIT AUTO HAMMOND, Ind., September 22 (#).— An automobile was tossed between two trains today, but four Minnescta boys were thrown clear, unhurt, as the second train crushed the car to debris. The four youths were John Richard- son and Paul Ohler of St. Paul and ‘Thomas McCann and M. S. Stringer of Minneapolis. Their automobile ran through the crossing gates and was bounced by an eastbound freight into the path of a westbound freight. *7\ GIRL LIFE GUARDS SUCCESSFUL; MORE TO BE HIRED NEXT YEAR By the Associated Press. WILDWOOD, N. J., September 22— So Successful was Wildwood’s experi- girls “did their share” with male guards occasions that their services ment in hiring two girl life guards this fiying colors. S Pa. and Miss Florence Newton Philadelphia. Speaking before the Quota Club in Philadelphia last night, Mayor Doris Bradway said the experiment was “very, satisfactory” and today she ampli- Lok this mtem:g.tpzyb ledul(:flmng the a8 “highly 0 No occasion for ‘work arose on the strip of beach which they patrolled, -Mayor. lway said, but the Mayor Bradway's decision was in- fluenced largely by the report of Capt. Gerard Livezy, who is more accustomed to directing foot ball huskies than young women in his beach patrol. His com- of | ment was “very nice,” said Mrs. Brad- Forty guards patrol a 2-mile stretch of ocean front during the Summer sea- son. 1 mayor, has occupied that office for one month. She was elected commissioner 8 year ago and advanced to fill a - , her term' having four more itish Ambassador. “Among the guests | ‘The only evening paper in Washington with the Associated Press news service. Yesterday’s Circulation, 116,076 *kk AM TWO CENTS. s Associated Press. ROOSEVELT SCANS Advisors Seek Acceptable Method to Stabilize Level of Prices. | By the Associated Press. Administration economic advisers | | are giving close study to methods of | controlling dollar fluctuations to the | | end that a “constant purchasing power” | | and stabilized price levels might be achieved. The subject, it was disclosed author- itatively today, has been under con- sideration for weeks, with the managed currency system of Sweden as a prac- | tical guide, but how President Roose- | velt feels toward such an experiment | remains for him to disclose. | Administration sources have indi- cated the Executive wants a stable collar, but has yet to decide the best course to attain it. One administration economist. when asked his views, summed up his own | ]md the views of some others as fol- | ows: “To so manage the currency that the | buying power of the dollar would be | substantially stable is a desirable aim. | | The idea of a stable dollar is to prevent | fluctuations in prices that are due to fluctuations in the gold dollar. Two Main Systems. “What do we want in this country?” this authority asked. “Do we want & dollar with a constant purchasing power, or do we want a dollar with a rigid gold content which will buy 50 cents' worth one year and $2 worth two or three years later? | “We can either regulate the value of the dollar, which is its purchasing | power, or we can regulate the weight. We have been regulating the weight in the past, saying how many grains of gold there should be in the dollar. “Under this system prices have varied widely over the years. The value of gold depends upon supply and demand of the metal and its value is measured by what it will buy. When there was lots of it, as in 1849 and after the Alaska and South Africa strikes, com- modity prices were high. “The less gold there is, the dearer it becomes, which means the more it will buy and the lower the price of commodities. On the contrary, when gold is plentiful prices rise. When the demand for gold is heavy and the sup- ply shortens prices fall because gold buy more. Indices Show Trends. Government statisticians could figure out desirable price levels from indices showing commodity price trends, one authority explained, and that the aenu‘le:;t 'could be given authority by for & permanent program to set by proclamation the gold content of the dollar for any stated future perind: \‘.h!:c rpnis‘ indicated in some Wlsnho“fi or 1926 leveh_wm uld it be desirable to turn price trends upward, the gold content wpould be reduced, this economist set forth, while if lower levels were wanted, the fi?.“;%&mz - be lncruum d, reducing of mone 10{;3:-‘!13 it o de:me‘y circulation and e economist added that the step could be taken without worldheuumz and would be a domestic pro- gram, but dollar exchange in_ foreign countries would continue to fluctuate unless all monetary systems were sta- bilized along similar lines. “By handling the money, (domestic ) fuctuations due to money,” authority said. “You al- ways hear that an ‘ounce of gold is worth an ounce of gold.’ That is true; but the same ounce of gold won't buy ?::.n m;::h hgne ut;igme lu another, so you w fluczuam. value of gold actually “A managed or stable dollar, call 8 commodity dollar, a ylrd.surrk dnl]:dr and by several other names, would be based primarily upon controling the (Continued on Page 2, Column 1.) —— WATER GAZING LEADS TO SUSPECT’S ARREST Secret Service Agent Picks Up Al- leged Counterfeiter in New York Park. By the Assoclated Press. NEW _YORK, September 22—A passion for gazing into the water led to the arrest here of Manuel Albernate, 35, :v‘:o : J;h.r“d by Gov;mmmt aulh$ possessing an counter- feit money in Denver, A secret service agent, notified by Denver authorities that Albernate liked to sit and watch the water, picked him you prevent NEW MINE LABOR - PRESIDENT SPEEDS CONTRAGT AWAITS | PURCHASE OF FOOD ROOSEVELT ACTION| FOR UNEMPLOYED Soft Coal Agreement Involves | Orders $75,000,000 Pro- Wages of Hundreds gram to Absorb Surpluses of Thousands. From Glutted Markets. HELD AS GREATEST PACT IN BARGAINING HISTORY TAKES STEPS TO RELIEVE CONDITION OF FARMERS N. R. A. Key Men Are Reorgan- ized and Policy Board Is Created. Beef, Dairy and Poultry Products and Cotton Will Be Bought for Needy. By the Associated Press. ‘A single labor contract involving the wages of hundreds of thousands of | miners today needed’ only President | Roosevelt’s approval to become an ef- | By the Associated Press. President Roosevelt today speeded his program for Federal purchase of sur- plus foodstuffs and staples for the needy PLANS FOR DOLLAR fective instrument of soft coal’s N. R. A. code. Described by its signers as “the greatest in magnitude and importance that has ever been negotiated in the history of collective bargaining,” the agreement handed Hugh 8. Johnson last night set tonnage rates needed to carry out the basic minimum daily kage scale fixed in the code. Swift presidential approval was expected. Signers of Contract. J. D. A. Morrow, president of the Northern Coal Control Association, and E. C. Mahan, president of the Smoke- less Appalachian Coal Association—the wo embracing 70 per cent of the bi- tuminous coal tonnage—signed for the operators. John L. Lewis, president of the United Mine Workers of America, was the third signer. “Its sponsors‘gbeueve it marks the beginning of & new era in the task of stabilizing and modernizing the eco- nomic processes of this basic industry, the three said in a joint statement “Its sponsors in submitting it for ap- proval commend it not only to the President, but to the people of the United States.” Completion of the soft coal labo! agreement which the three signers said was accomplished with the “inspiring help of President Roosevelt,” coincidec with the disclosure of N. R. A. plans looking toward a permanent organiza- tion under which industry will regu- late itself with the least governmenta! interference. Personnel to Be Shifted. Johnson has ordered the drafting bs Thomas S. Hammond—director of thc emergency re-employment campaign— of a permanent set-up involving the shifting of personnel and also the merg- ing of as many industries as practicable | under the least possible number of master codes. In the reorganization work a mnew Policy Board was created under Ham- mond's chairmanship and was expected to provide the nucleus for the perma- | nent organization. While the recovery act ends on June 16, 1935, Johnson be- lieves Congress will extend the best features of the N. R. A. pr ogram. N. R. A’s immediate alm was to get | all industries under codes by the end of the year. press the gradual merger of Blue Eagle agreement work into code hearings. Contract Drawn Up. ‘The coal contract, carrying out the provisions of the code by setting ton- The Policy Board will} with orders to get it under way within 30 days. | He conferred with Secretary of Agri- | culture Wallace and Budgei Director Douglas, who arranged for appointment of a special committee to carry into effect the dual plan to take surpluses off the glutted markets and to feed the unemployed. Douglas arranged for the necessary funds, which are roughly estimated to be about $75,000,000. Executives Named. Secretary Wallace named Chester Davis and L. H. Bean of his depart- ment to co-operate Wwith a repr tive from the Federal Emergency lief Agency in carrying out the Roose- velt proposal to purchase surplus beef, dairy and poultry products, cotton and cotton seed. ‘Wallace also took up with the Presi- dent the problem of a long-time pro gram for reduction and control of corn and hogs. He is considering the pos- sibility of including surplus corn pur- chases in the new relief plan, but he is more interested in providing for a per- manent price-lifting plan for corn and hogs. ; | “Through his action much of the | oversupply of important foodstuffs and staples will be placed in the hands of the destitute unemployed who are living on the short shrift of public un- employment _relief,” said _the White House announcement which President | Roosevelt discussed with newspaper men. Not to Replace Present Relief. The plan, as outlined personally by the Chief Executive last night, “wil add to and not replaie items of relief already provided.” x “The President said he considered | the program arranged between the Agricultural Adjustment Administra- | tion and the Federal Emergency Relief Administration one of the most direct blows at the economic paradox which has choked farms with an abundance of farm products while many of the unemployed have gone hungry,” the White House statement said. “He has directed the departments concerned to expedite in every possible | way their combined attack on the food- ! surplus and hunger problems. | Aims at Accumulation. “While this joint effort is being made of nage rates based on the code’s basic, day rates and fixing agreements on| other details, was drawn up in negotia- | tions which followed the signing of the | farm surpluses so great that they can- not be consumed, but result only in | ruinous prices to farmers, destroying charter by the President last Monday. ‘The operators’ representatives signed the contract only in so far as employes of the operators are represented by the United Mine Workers, but the con- tract is binding on members of the as- sociations whose representatives elect to have the U. M. W. represent them. The contract will run until next March 31. An agreement was made under which representatives of the con- tracting parties will meet with N. R. A. officials next January 5 “for the purpose of determining revisions that may be desirable at t time covering wages, hours, differentials, or other require- ments of the contract and the code of fair competition for the bituminous coal industry, as well as the conditions to be set forth in a new agreement effective April 1, 1934.” Although Hammond, as executive director of the President’s emergency (Continued on Page 5, Column 1.) ROOSEVELT TO BOARD YACHT LATE TODAY Plans to Spend Week End Cruising About Lower Potomac River. President Roosevelt planned to go aboard the presidential yacht Sequoia late today to spend the week end cruis- ing about the Rappahannock and Po- tomac Rivers and Chesapeake Bay. He planned to go aboard at Fredersburg, Va., and probably will return to Wash- ington Sunday night or Monday morn- The President has succeeded in shak- ing off his cold and told callers during the forencon that he was “feeling great” He was looking forward to a real rest during his week end cruise He will be accompanied by Rear Ad- miral Cary Grayson, U. S. N, retired who was personal physician to Presi- dent Wilson and an old friend of the President. ‘To make his departure possible, the President was forced to work at high speed tils morning. He was occupied at his desk in his study on the second floor of the White House until luncheon time when he went to the Executive Office to preside over the bi-weekly cabinet session and later to receive newspaper correspondents. ‘The President arranged t;:r -{ full en- of the Veterans of Foreign Wars; Ad- mirals Lee and Taylor; George Peek, agricultural adjustment administrator. and Senator Bankhead of Alabama. GUIDE FOR READERS I -3-4 '| CHICAGO, September | purchasing power and aggravating gural | and urban distress. “In removing the surpluses from the market, carefully applied safeguards will forestall any disturbance of the regular channels of production, processing and distribution. “There are approximately 3,500,000 families now on relief rolls throughout the country. * * * The amounts of food and clothing given the destitute still are inadequate.” It was emphasized by Mr. Roosevelt in’ the personal announcement of his plan that this relief was to be in addi- tion to that already being extended by Federal, State and local authorities and was to be given particularly in (Continued on Page 5, Column 2.) — o |SCHWAB IN HOSPITAL, SUFFERING “FATIGUE” Chairman of Board of Bethlehem Steel Is Taken to New York Doctors’ Institution. By the Associated Press. NEW _YORK, September 22— Charles M. Schwab, chairman of the board of the Bethlehem Steel Corpora- tion, is a patient at Doctors’ Hospital, suffering from “fatigue.” A statement issued by the hospital sald: “Charles M. Schwab has not been well since the meeting of the Iron and Steel Institute last Spring. He is now in Doctor's Hospital under the care of Dr. S. A. Brown and Dr. H. R. Geyelin. Mr. Schwab is not seriously ill.” It is expected he will be up and about in a week or 10 days. He came to Doctors’ Hospital for quiet and rest. “He is suffering from no specific ailment, merely fatigue.” Schwab entered the hospital last week. He is 71 years old. Friends recalled today that at the meeting of the American Iron and Steel Institute, of which Schwab is chair man, last June he became faint while reading his speech and had to sit down and rest. Eugene G. Grace, president of Beth- lehem Steel, tock up the reading until Schwab had recovered and was able to finish the address. i |GRAINS FORCED DOWN FURTHER BY SELLING ‘Wheat Drops More Than 3 Cents as Change Is Reported in Inflation Plans. | By the Associated Press. 22 —Heavy selling, said to have been prompted by reports of a change in administrative plans for controlled inflation, pus! gsain prices downward again today. ‘Wheat dropped more than 3 cents a bushel, with May delivery down to 923 cents, almost a dime lower than the high point established Wednesday. The gramn pits were seething with uncertainty over inflation, noting puoe lished conflicting views of administra- tion advisers. Other news which was favorable in character, such as firmness in sterling exchange, a better in tone cotton and stocks, was ignored. about 2 cents a bushel, oats also losing Corn dropped t and ¥