Evening Star Newspaper, September 24, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Local showers this afternoon or night and tomorrow; slightly warmer today; gentle southerly winds. Temperatures— Highest, 82, at 3 p.m. yesterday; lowest, 52, at 6 am. yesterday. Full report on page A-14. — e dE=| _— () Means Associated Press. No. 1,488—No. 32,653. EFFORTS ARE MADE T0 FREE AMERIGAN PARTY BESIEGED BY GUBAN STRIKERS Negotiations Begun as 16, Including Britons, Prepare to Seek Haven on U. S. Destroyer Off Orienta. 3 WOMEN, 5 CHILDREN VIRTUAL PRISONERS Food Supplies Short—Threat to Cut Of Water—Matanzas Out- break, Believed Planned as Is- land-Wide Move, Comes to Quick End—Crisis Looms in Havana. By the Associated Press. HAVANA, September 23.—The American destroyer Hamilton stood off the north coast of Ori- ente Province tonight, ready to receive on board 16 Americans and Britons held prisoners of striking Cuban workers, but their removal to safety was held in abeyance pending *negotiations with the strikers. Representatives of the sugar mill owner planned to leave Havana by airplane to participate in the negotiations. Three women and five children were among those reported held prisoners by strikers, with food running short and no milk for the young ones. Affairs in Havana seemed to be moving toward a new crisis with threat of famine in the capital, spread of disease, and financial difficulties hemming the adminis- tration of Ramon Grau San Mar- tin on all sides. Food Survey Started. A rebellious movement in Matanzas Province fell today, apparently of its own weight, and the army supporting the admunistration turned its attention to Havana's possible food shortage, which resulted from a strike of ware- housemen, still unsettled. The army started a survey of all the foodstuffs on Havana docks. ‘The American destroyer moved into position as near as possible to the be- seiged sugar mill when it became known that food supplies were running short. Beslegers had threatened to cut off the ‘water mains leading to the homes of the foreigners. The mills are about a mile and a half from the coast line. They are owned by American interests, including groups representer by Percy Rockefeller and Vincent Astor. Reliable reports said United States officials were treating with the strikers. Down the island, in Camaguey Prov- ince, Juan Blas Hernandez continued his revolt, reports reaching here say- ing he had engaged government soldiers in a skirmish near Jatibonico. Ten rebels, including three of Blas Hernan- dez’ sons, were taken prisoner, the re- ports added, and two soldiers were wounded by machine gun fire. Matanzas’ Rebels Disperse. ‘The outbreak in Matanzas Province, led by Isidro Rodriguez and others, came to a quick end when the rebels decided to abandon their activities and return to their homes. The Matanzas movement was believed the result of a miscarriage of plans for a simultaneous outbreak throughout the island. ‘The foodstuffs on the docks in Havana have been tied up because the con- signees were reported financially unable (Continued on Page 2, Column 4.) LINDBERGHS TO VISIT MOSCOW IN FEW DAYS Whether They Will Travel by Plane or Train Has Not Been Determined. By the Assoclated Press. LENINGRAD, U. S. 3. R., September 23—It was understood tonight that Col. and Mrs. Charles A. Lindbergh have decided definitely to visit Moscow within the next few days, but whether they would travel by plane or train was not yet determined. ‘They were honored guests tonight at a banquet at the Astoria Hotel, with high officials of military and civil avia- tion as the hosts and more than 100 in attendance. ‘The couple spent most of the day visiting the Hermitage Art Gallery and the museums and palaces at Peterhof, the former Summer home of the Czar. It was believed the colonel might have difficulty in landing in the nar- row Moscow River with his own sea- plane, and there was a possibility he | by might make the trip to Moscow in & Soviet land plane. Entered as second class matter post office, Washington, D. C. Ouster of O’Brien From Ticket Seen In Farley’s Moves Latter Meets New York Leaders, Drops Hint of Change in Ballot. By the Assoclated Press. NEW YORK, September 23.—Post- master General James A. Farley to- night stepped into discussions over an independent Democratic mayoralty cmdldnu,’ giving rise to reports he might ask”Tammany Hall to withdraw Mayor John P. O'Brien from the race. Farley, who arranged conferences with party leaders on his return late in the day from Bridgeport, Conn., was being quoted in well informed circles as remarking that the city's political picture would be changed completely within the next week. Whether this meant a substitution of Mayor O'Brien, the entrance of a third ~(Continued on Page 2, Column 2.) - BOYCOTT BY LABOR OF GERMAN 0005 IS SEEN BY GREEN Predicts Retaliation by A. F. of L. for Hitler’s Crushing * of Union Movement. By the Associated Press. A boycott of German products by American labor was held probable yes- terday by William Green in a statement describing the Hitler rule as “mediaeval, revolting and sickening.” Saying “the terrorism in Germany has gone to wilder and wilder extremes and has resulted in open war on the trade union movement and the torture, exile and even death of many trade union leaders,” the president of the American Federation of Labor added: “American labor is becoming con- vinced that something more than pro- test is needed in dealing with the Nazis; we are being forced to the conclusion that a boycott is the only thing that will bring home to the German tyrants the abhorrence in which their rule is held by the rest of the world.” Sees Labor Crushed. Green said he had “first-hand reports from American observers who have vis- ited Germany and who have brought back direct and indisputable evidence of torture and of the complete crush- ing of the German labor movement by the Hitler Nazi dictatorship.” “I believe this evidence will be laid openly before our convention,” he - tinued, adding the annual meet; the federation is to be held in Wash- ington on October 2. “The Executive Council may make recommendations,” he explained. “but whether the council decides to do that or to leave the question to the judgment of the convention without recommenda- tion, it may be taken for granted that there will be resolutions demanding & boycott, such as labor in several other Nations has declared. “Since Hitler seized power in Ger- many,” Green continued, “American labor, in common with labor elsewhere, has watched the Nazi movement with growing concern. Up to now, American labor has made no move to join official- ly in the boycott of German goods now under way by European trade unionists. Individuals on Boycott. “However, many individual trade unionists have undoubtedly been refus- ing to buy German products, especially in the larger centers, where the boy- (Continued on Page 2, Column 5.) SETTLE PLANS NEW STRATOSPHERE HOP Che WASHINGTON, D. C, Flight Will Start From Century of Progress Grounds in 10 Days. By the Associated Press. CHICAGO, September 23. — Lieut. Comdr. G. W, Settle will make a new attempt to reach the stratosphere, probably within 10 days, it was an- nounced tonight. ‘The flight will start from the Century of Progress grounds, and will be made in the same balloon and gondola in which the pilot’s unsuccessful attempt was made several months ago. The bag has been repaired and- the defec- tive valve which caused the balloon to drop down within a few minutes after its take-off last time has been replaced. Four hundred holes, cut in the fabric by souvenir hunters after the first take- off, have been patched, backers of the flight said. Lieut. Comdr. Settle will take along a collection of fruit flies to determine what, if any, effect the cosmic rays have on their geriealogy. it was disclosed yesterday at Mount Pleasant, Mich., 'W. Howard Perkins, engineer for the manufacturer of the metal gondola in which Settle will ride. HARRIS QUITS AS TIGER PILOT BECAUSE TEAM FAILED TO CLIMB By the Associated Press. DETROIT, September 23.—Explain- ing that he felt somebody else shculd have a chance to see what could be done with the Detroit Tigers, Stanley . (“Bucky”) Harris today submit! his resignation to Frank J. Navin, the ager’ day’s game with the St. Louls Mzflntth“hehndbeenun.bumpcr- suade Harris to change his mind. Harris said he was resigning because he felt it only fair to Navin that he step aside and give some one else an opportunity to direct the team. “Per- he can do better,” said Harris, ferring to his successor, who Navin said he had not yet selected. “I am not going to sit around and 00000 T0 BENEFIT AS HAMILTON BANK OPENS TOMORROW Boost to Recovery in Wash- ington Assured in Free- ing $8,000,000. ORGANIZERS ARE LAUDED IN GRANTING OF CHARTER Only Last-Minute Legal Transfers Remain in Merger of Seven Institutions. BY HAROLD B. ROGERS. Formally organized yesterday, the Hamilton National Bank will throw open for business the doors of its eight banking houses at 8:30 a.m. tomorrow. Last-minute legal transfers are to be accomplished just before the bank opens, but these are all in readiness and remain only to be executed. ‘The new institution makes available about $8,000,000 to 100,000 depositors of the sever' member banks, unlicensed since the bank holiday early in March. One important phase of the merger remains to be cleared up tomorrow by the Treasury Department, in the ap- pointment of new men to replace four conservators who have been taken over by the Hamilton National Bank. ° Commended by Controller. Controller of the Currency J. F. T. O’Connor in issuing a charter for the bank yesterday commended the organ- izers of the bank, expressed admiration for the patience of the depositors and congratulated the Capital on “this mag- rificent institution.” Edwin C. Graham, president of the merger, received the charter and ex- pressed appreciation for what the Treasury had done. Mr. Graham said last night he believed the freeing of deposits and offering of new bank facilities would spur recovery here in ‘Washington. Heavy armored trucks rumbled up to the front doors of the Hamilton yes- terday, bringing millions of dollars in cash from the Treasury Department so the bank could be ready for business. Depositors Notified. All depositors in the Hamilton have been officially notified by letter, and have been given either temporary or permanent pass books the amount of their deposits. These Ham- ilton deposits represent 50 per cent of the deposits of these persons in the seven member banks of the merger. In case a person has subscribed for stock in the new Hamilton bank, how- ever, the cost of the stock at $25 a share is to be deducted from the amount shown on his passbook. Many checkbooks already have been issued by the Hamilton. All bnnklg houses are fully equipped not only wi checkbooks, but all necessary facilities to operate the bank. The bank has ample cash to pay every depositor in full, but officials feel that total deposits of the bank will increase, instead of decrease, as depositors resume the use of bank facilities of which they have been deprived. Funds Generally Transferred. Most of the depositors in the seven member banks already have trans- ferred their funds to the Hamilton Na- tionl Bank. But, it was explained, some proofs of claim have not as yet been filed. Although the merger available 50 per cent of the funds of (Continued on Page 5, Column 2.) THREE MEN TRAPPED IN MINE ARE SAVED Found Shn-di_ng ‘;n_Wlhr Up to Shoulders—Two Others Res- cued From Cave-In. By the Associated Press. HAZLETON, Pa. September 28— Three miners, entombed by tons of earth dropped in a shaft of a Glen Al- den Coal Co. mine at nearby Tesckow, tonight were rescued unharmed though standing in water up to their shoulders. ‘The miners were trapped when a pil- lar they were blasting suddenly col- lapsed, cutting off their escape through the only gangway leading to the sur- face. After rescue crews had bored a hole through tons of debris, Rev. Felix Le- vuda, a priest, crawled through the small opening. He spied the men some distance away. They shouted the water was about 8 feet deep and none of them could swim. Other miners meanwhile went belpw three through the deep An similar rescue was made at other Pottsville. A roof cave-in at an aban- buried Charles tely, | corporai city about & month ago. A hearing the dispossess sched- Would Jail Red Listeners. - FRANKFURT-ON-THE-MAIN, Jer- g WITH DAILY EVENING EDITION CITIES INSOLVENT, MAYORS DEMAND BANKRUFTCY RIGHT Conference Says Congress Is Sole Hope—Ickes De- nies Red Tape. By the Associated Press. CHICAGO, September 23.—Declaring hundreds of American cities are hope- lessly insolvent, the United States con- ference of mayors tonight called upon Congress for laws making it possible for them to go through bankruptcy. Many cities have interest obligations cannot meet, the 80 mayors agreed in a are u:m:t- Tuptey long ago. “There are in the United States at 1t in the Hurts Solvent Citles. “The fact that these cities are in de- Btates are unable to enact necessary remedial legislation, and action by the is necessary if these hopeless inselvent units are ever to be restored to a solvent condition.” The resolution urged passage of the adjustment bill, sponsored the last Congress by Representative Wilcox of . Among the chief executives who passage of the resolution was Mayor John W. Smith of De- . He declared bankruptcy to be only ouf E other resolutions the mayors ex- certificates from cities. Earlier toda; had heard Secre! (Continued on Page 2, Column 1.) NEW EXCHANGE WORK IS ORDERED HALTED Previous Lessee Fights Dispossess Order, Claiming Valgyable Rights Impinged. ‘By the Assoclated Press. HOBOKEN, N. J., September 23— Work on the alteration of the Centre Market building for the New Jersey Stock Exchange was ordered halted tonight by Vice Chancellor John J. An order to, show cause was signed by the vice chancellor at the behest of the City Centre lon, pres- ent lessee of the building. The order, directed against the City of Newark and the New Jersey Stock Exchange, e tion were _instituted by case also is = to come before District . McMahon next Tues- tion still is the righ ‘Wolff, attorney for the corporation, who alleges that his clients own valu- able property rights and their lease and that they have a $50,- 000 posted as a guarantee of their in | directed the kidnaping plot. the | day sign Bets Left in Hat Vanish With “Red” As Friend Sleeps By the Associated Press. SEATTLE, September 23.—Ed Nelson, lumberman, and an ac- quaintance named “Red,” were afraid they would be rcbbed while asleep. They argued about it and made a bet. “Red” bet $100 they would be robbed and Nelson wa- gered the same amount they would not. Each put $100 in a hat, climbed under the covers and went to sleep. “Red left with the money dur- ing the night, Nelson told police. BAILEY AND BATES RELEASE REFUSED Seven Other Demurrers in Case Denied—One Defend- ant Freed by Judge. By the Assoclated Press. OKLAHOMA CITY, Okla., September e | 23.—Unprecedented rulings by Federal Judge Edgar S. Vaught today swept aside demurrers of nine defendants in the Charles F. Urschel kidnaping con- spiracy trial, won freedom for one man and a deferred judgment for two others. Harvey Bailey and Albert Bates re- ceived no consideration from the judge, who overruled their defense motions ‘without comment. Bailey, e a0d-priion Dreaker. is aleged 1o pave Bates and George (Machine Gun) Kelly, the lat- ter still a fugitive, were named in Gov- ernment testimony as the actual kid- napee arles Wolk, one of seven defend- ants from Minneapolis and St. Paul, was ordered released. Isadore Blumen- feld and Peter Valder will learn Mon- day m« whether they must leave their cases to the jury. Money Traced to Four. ‘The four others—Barney Berman, Clifford Skelly, glm Kronick and sm: Kozberg—were given no encouragemen by the judge, who declared that they may not have known they were han- dling Urschel money, but that they knew they had “hot” money in their Star SUNDAY MORNING, SEPTEMBER 24, 1933—104 PAGES. * TAKTO BE PLACED ON LEGAL LIQUOR CALSIG CONCERN Legislators Fear High Levies Would Decrease Antici- pated Revenues. BY G. GOULD LINCOLN. How much tax can legal liquor bear before excessive prices will turn many people to bootleggers again? Crudely, that is the question which is causing concern for Senator Pat Har- rison of Mississippi, chairman of the Senate Finance Committee, and other members of the National Legislature. If the. price of legal liquor becdimes too high, its consumption will fall off. ‘The revenue, which is expected to wipe out in part the deficit in the Treasury, permit the repeal of some of the taxes and pay for the public works program, will decline, indeed, under those condi- tions. ‘The problem of the Federal liquor tax has become all the more acute because some of the States, intrigued by the fact that the eighteenth amendment is soon to be repealed and needing more revenue themselves, are beginning to levy taxes on the manufacture of hiquor. Already New York State has imposed a tax of §1 a gallon on the production of liquor. The Kentucky ture is considering a tax of 50 cents a gallon on production and there is a heated argument over a proposal to lay an additionl tax on ;‘}:l:eky stocks now in the Blue Grass Taxes Will Boost Price. It is quite clear that if the States where whisky is made all tax the liquor produced within their borders, the State taxes plus the Pederal tax will shove the price of legal whisky higher and higher. Before national prohibition, the Fed- eral Government alone laid proauction taxes on liquor. The States contented themselves with taxing the distribution of liquor, through license systems. The estimates of big returns to the Federal Government from liquor after the re- peal of the eighteenth amendment Iailed to take into consiGeration what the States might do in this matter of a tax on production. Senator Harrison is considering the advisability of putting through a law and | which would apply the principle ‘The prosecution traced $1,800 $500 of the $200,000 paid for Urschel’s release to these four Citles de- Judge Vaught turn e down the ples a1 lown e pl of an attorney for R. G. (Boss) Shan- non, his wife, Ora, and son, Armon Shannon, that they were coerced under the death threats by Bates and (Continued on Page 12, Column 2.) INSANE INDIANS’ MOVE TO CAPITAL IS FOUGHT Federal Officials Restrained From Transfer of South Dakota Group to St. Elizabeth’s By the Associated Press. SIOUX FALLS, 8. Dak, Slelgl;mber 23.—Federal Judge James D. t to- restraining or- ed & temporary der halting action of the Pederal Indian | from liquor adopted by the Federal Government in dealing with estate or inheritance taxes. Under this , the Fed- eral Government would collegt all the tax on liquor production and then AC one e intss. Coolidge admi At one ‘ime in the e n- istration it looked as Ihouxg‘t.he com- bined State and Federal income taxes might reach the point of confiscation. Mr. lidge evolved the plan of com- bining the two, having the Federal Government collect the tax, and then m the total proportionately with the Tax Experts to Make Study. Under the proposal now advanced, an effort to determine just how great a tax liquor can bear, and return to the Gov- ernment the maximum amount of rev- enue, will be worked out by the tax rts will bear in “From Press to Home Within the Hour” The Star is delivered every evening and Sunday morning to city and suburban homes by The Star’s exclusive carrier serv- ice. Phone National 5000 to start delivery. FIVE CENTS IN WASHINGTON AND SUBURBS TEN CENTS ELSEWHERE PRICE-LIFTING DRIVE PUSHED AS PRESIDENT ¢ CALLS CREDIT PARLEY Means of Turning Millions Into Trade Channels to Be Worked : Out With Advisers Tonight. THOMAS WARNS CONGRESS WANTS “RATIONAL INFLATION” AT ONCE Steps to Reduce Rates of Interest to Borrowers and Depositors Urged by Lonergan. By the Associated Press. President Roosevelt has summoned his financial leaders to work out plans to assure the credit of his reinvigorated price-lifting drive that now is focused on lagging agriculture. Release of millions of dollars in closed banks and a pumping into trade channels of other idle millions now on deposit in banks was described yesterday as the main objective of the parley which has been set for tonight. By moves last week and others still in contemplation the admin- istration is stirring sagging farm prices to new activity. Cotton and wheat advanced yesterday with the announcement that the Govern- ment stood ready to loan on minimum prices in agriculture com~ modities. President Counting on Bankers. Mr. Roosevelt has said he wanted farm prices to catch up with industrial prices in the upward swing promoted by the N. R. A. camae paign. He is relying on the promise of Federal backing to stimulate the bankers to extend'the needed credit to support the expansion drive. Immediate inflation of currency has not been indicated, but this weapon is in the hands of the President if he requires it. Secretary of the Treasury Woodin . heads th called int Greenback Inflation Tm tonight by Mr. Foosevelt. . Others Plan Is Out, Says Roosevelt Adviser| By the Associated Press. At least one method of deflation was declared to have no part in the ad- ministration’s present plans last night by an official who participates in all| President Roosevelt's financial discus- sions. ‘This, he said, is the plan under which the Treasury would isswe United States notes, and use them to buy in Government bonds, the latter to be held as backing for the new currency. Such a course was authorized by the Thomas amendment to the extent of $3.000,000,000. It was said_authoritatively also that the Federal Reserve 'm has no present intention of increasing its rate of purchasing Government securities. ‘This method of expanding credit was described as having proved a distinct disappointment. Gold Content View Undisclosed. ‘The elimination of the greenback plan would leave the administration with one principal approach to the con- stantly agitated inflation question—tha of reducing the gold content of the dollar—and the officlal in question understood to have been invited are the heads of the Federal Reserve Board, the Reconstruction Finance Corpora- tion, the Bank Deposit Insurance Cor« poration, the Farm Credit Administra- tion and Lewis Douglas, director of l.h%t:)udlet e administration proposals of last week to lend up to 10 cents a pound on cotton held by producers and to sgcl;:m suomrpzluus‘ smothering numer- odity prices are jarded b Mr. Roosevelt “p forms of rx:x‘ihum 4 Further Steps Indicated. There have been indications he was willing to go further in this price-lif- ing direction if necessary, with the hope it would not be necessary to expand Meanwhile, he is iwhile, sure that making structure has the full sup- certain uire: ® be eugible.m 'ments of call first upon local communi- bring non-member banks lme for the qeposit insurance. nm communities cannot go all the way the Government will purchase capital mhm solvent banks to make them liquidit, He wi would give no indication whatsoever as | closed to President Roosevelt’s attitude to- ward it. ‘These subjects, particularly the in- tensive camj to increase bank credits, are to be discussed thoroughly tonight at the White House confer- ence to be attended by almost all Mr. Roosevelt's financial advisers. ‘The greenbacks-for-bonds plan was the subject of heated argument when the Thomas amendment was before Congress. It was roundly denounced | by some Republicans. Senator Glass of Virginia, the veteran Democratic congressional authority on banking and currency legislation, while opposed to the amendment, declared this phase the least objectionable part of it. t has been suggested that currency thus issued be disseminated in connec- tion with bond issues intended to finance the huge public works program, a course that received hearty backin, from some congressional exponents infiation. ‘Would Maintain Balance. The gold reduction clause, in oper- ation, is in some quarters linked with the much discussed and many-named “commodity dollar.” Under this plan the dollar’s gold value would be cut in the same proportion as the general price level fallen since some par- ticular date to be arbitrarily selected as & normal period, possibly 1926. Rising prices thereafter would bring proportionate additions to the gold con- tent and price decl' .es further pi ropor- tionate cuts, the object being to strike and maintain a balance between prices and purchasing power. The Thomas amendment authorized Thomas Resumes Campaign, Before leaving the Capital Tuesds; afternoon for a week in lg:w York, &h: President wants to make certain vast credit and financial machine of the Government is fully co-ordinated to support the industrial and agricultural nf:ptn i th administ rom e tration’s price-lifting program, Senator Thomas, Democrat, Oklahoma, resumed last night his campaign for inflation in a formal statement summing up the rea- sons for his recent telegraphic poll of on that subject. “Sentiment of the country, as re- flected members of the Senate and House,” Thomas said, lon. “It is apparent that if the President does not use his monetary powers, mem- bers of Congress will be held account« able by their constituents.” ‘Thomas said that of the replies he had received, 96 per cent of the House members and more than 75 per cent of the Senators “are in favor of the (Continued on Page 4, Column 5.) (Continued on Page 4, Column 3.) DE WITT GIVEN CHANCE TO PROVE: production on a 65-35 (Continued on Page 2, Column 8.) = GIRL'S BODY FOUND |z WRAPPED IN BLANKET |ii: will in |and Samuel A. Murder by Blows on Head Is Theory; Spot Also Scene of Frank’s Slaying Discovery. By the Assoclated Press. Is Inflation a Peri THE QUESTION OF TODAY Fel b B E ng Eg i Z g E | E § . i i i ] 3] E i i i IF C. C. C. KITS 53?0 i 5 B.§ gEn i i gk 1 ] : i £ 52 it - Eégé 55 ¥ i B R g i EE T 4 : 2 ] i g 3 . b a§§ i COST TOO MUCH )