Evening Star Newspaper, September 26, 1933, Page 2

A2 sk TREASURY HEADS MUST ANSWER SUIT Woodin Among Those Or- + dered to Answer Injunction 4 n U. S. Savings Case. § (Cominued From First Page) -5 { sharply dutlind in the letter from Lyons yesterday. The deputy controller inti- matéd negotiations to reopen the bank re virtunlly at an end and a divi- nd would be paid as soon as the court would perinit. Just how this.dividend could be paid | &)uld depend on future developments, | it it was indicated the Treasury might her throw the bank into yeceivership d sell some of its assets, or, on the her hand, take steps to sell some of { # assets to another bank in order t')i ovide -the cash dividend to depos- | ifors. Whether this sale would be made the Hamilton, from which the United | Sgates Savings was dropped by motion of the Treasury during the recent trial, was not cleared up today. The letter from Deputy Controller Lyons read in part as follows “You state that the plan suggested | by this office cannot be accepted for ! the following reasons: “In the plan which we proposed, the | depositors would receive immediately upon the reopening of the bank, sixty- | five (65) per cent. and the balance ‘would be guaranteed to them by trus- teeing certain assets and adding to the trust fund all dividends declared on the stgek of the bank, and by making the \ egtire present outstanding capital stock ' of*the bank also liable for such addi- tignal amounts as may be necessary tq:pay the depesitors in full.” #In response to this statement, desire to point out: § “4a) Whether the depositors would receive 65 pergcent at the outset de- pends upon the outcome of the re- examination of the assets now in process, and upon whether the bank would be sufficiently liquid to release that portion of its assets at the pres- ent time. “(b) The balance would not be ‘guar- apteed’ under Col. Cooper’s plan by the trysteeing of the stock and of the di ds, mnasmuch as there is no cer- tainty what future value the stock would have or whether the bank would meake any profits. It appears the stock Has no value now, and that the bank operated at a loss for the years 1931 and 1932. *(c) The trusteeing of the stock by, the present stockholders would not rep- resent a contribution by the stockhold- ers, but by the depositors, who, under | Col. Cooper's pian, would be forced to restore value to the stock by taking such value from their deposit balances. We pointed out fully to you in our letter of Beptember 23 that we do not consider it equitable that the depositors be re- quired, against their will, to restore the capital structure of the bank and at the same time permit the stockholders to be relieved entirely from contemporaneous payment or contribution of actual funds to restore value to the capital stock. Proposition Restated. “You also give as a further reason| for rejecting the plan proposed in our letter of September 23: | ““Your suggestion that portion of this | money be put up at this time and the stockholders be realeased of any further responsibility both as to stock and divi- dends 1s not in accordance with Col. Cooper's desire to see that all de- positors are paid in full’ | “We did not suggest in our letter of | September 23 that the stockholders be released of responsibility, but. on th!i contrary, specifically provided that all | outstanding stock be surrendered or | canceled and that the same be re-| purchased by the stockholders in cash ‘to the extent of at least thé aggregate we | | amount which is_estimated could be|pe rj realized from enforcement of assess- ment liability.” This would require, before the plan we suggested could be- come effective. that the present stock- holders meet all obljgations now imposed by law upon them by way of assess- et liablity to the extent at least to which such assessment is collectible. and inasmuch as the plan was proposed to be consummated under section 207 of the ‘bank conservation act’ this would necessitate the participation in the plan by at least two-thirds in agount of the present stockholders. It; may be observed. however, under the: plan suggested by this office, that| althougn we stated that neither the stopk mor the dividends need be trusted, fors the reason that entirely new capi- tak stpucture would be provided, never- theless. it is obvious that there would be ‘mothing to prevent Col. Cooper or any _of the other shareholders from voluntarily transferring or placing their stapk’ and their dividends in the trust | fund for creditors in addition to paying in ;actual funds to repurchase their st “Finally you state in your letter: ““The plan proposed by Col. Cooper 1s g0 much fairer to the depositors than the - Hamilton National Bank merger plan, which the controller mot only approved, but enforced. that your pres- ent position is untenable and incom- preheénsible.’ . Radical Differences in Plans. “The. radical differences between the plan propused by Col. Cooper and the Hamilton National Bank plan are that under Col. Cooper’s plan the depositors and creditors are forced to contribute the capital structure in addition to waiving the bank to solvency, and the stockholders contribute nothing of pres- ent value, whereas under the Hamilton Bank plan, the depositors and creditors are not required to waive any of their deposits.. but receive in immediate divi- dends, which are today in process of distribution, 50 per cent of their claims as the proceeds of the sale of an exactly corresponding amount of the assets of their banks, and the stockholders of the respective banks remain liable for assessment as an additional source, in addition to the proceeds of the unsol uur.s?"‘rom which to pay the balance of the claims of the depositors and cred'tors. Whether in view of the fore- going *Col. Cooper’s plan is ‘so much fairer’ to the depositors of the United States-Baving Bank than the Hamilton Bank plap is obviously a matter con- cernt *which there has been some difference, in viewpoint. but it seems fair to point out that from the standpoint of the depositor the litigation instituted by Col. Cooper, regardless of is merits, caused the. organizers of the Hamilton Bank {o withdraw their offer to pur- chase. at ‘déllar-for-dollar value, approx- imately $900.000 of the assets of the United States Savings Bank, and neces- sitated) they ;withdrawal of the con- troller of his application for approval of such snld.ldix the fact remains, for which.Col. er must assume the re- sponslbfifl\’% but for the opposition | dqul 4p majorlty shareholder e of Col. Lo of the banl depositors and cred- itors of the United States Savings Bank would today be receiving dividends ag- gregating approximately $900,000. which would hawe heeri sufficient to pay each | of such depogitors and creditors 50 per | cent of theiri¢laims. “Our letter to-you of September 23 suggested the is of a plan which we considered would come as close to the proposal of Col. Cooper as justice and equity to the depositors and creditors would permit, and we also invited you to submit any alternative suggestions if you saw fit to do so. Your letter of Septe: 3 dees not propose any al- ternativésuggestions and we understand from you that you have no alternative suggestions, and consequently it would eppear that there are no immediate prospects for the reorganization of the United States Savings Bank. There- fore. under the circumstances. and in order to afford the depositorsfind cred- 1tors relief as soon as possible, it is our present intention to negotiate appro- priate arragements to obtain funds to pay a cash dividend to the depositors and creditors as soon as th pending litigetion will t such c.uz2 {o be wken.” l | T | bankers suspect. What’s What Behind News in Capital. “Insiders” Say McKee Boom Came From the Top Here. BY PAUL MALLON. really started in Washington, not New York. It came from the very top. No less personages than President Roosevelt and Mr. Farley themselves were behind it. That may not be confessed now. It will certainly come out later. The Postmaster General (in person) is the one who planted the first left- handed stories hinting the adminis- tration would look on McKee with favor. than that. He actually participated in long-distance telephone councils de- signed to drag the economizing former acting mayor into the race. Chance to Clean House. The inslde fact is the administra- {tion saw a perfect chance to clean out Results of the primary Tammany. a few days earlier showed the old tiger was on the ropes. It might be felled with one clean punch. Whoever would deliver the blow would get the credit. Mr. Farley is not the kind of man to let any politi cal credit lie around loose. It is good politics. The first rule of political leader- ship is to find out where the peonie are going and then jump up in frout and take them there. Tammany vio- lated that rule by trying to_force the unwelcome O'Brien across. The Tam- manyites found out their mistase very late. Offered Grover Whalen.' They have been buzzing around Far- ley hinting they might drop O'Brien and put up the N. R. A. champion, | Grover Whalen. as a peace offering Farley had other things he wanted to try first. The Democratic big boys stress one point in all their gleeful whisperings. It is that Messrs. Roosevelt and_Farley have noth- ing against Tammany Hall as such. They have many friends in the ranks. What they want to do is to provide @ more whole- some leadership for the Tam- ‘manyites. Of course. what they mean is a Roosevelt leadership. Every one wiil agree that would be more wholesome. It is up to Al Smith to figure cut where that leaves him. Dollar Plan Not New. Every one is hopping on this dollar devaluation idea as if Mr. Roosevelt had just stumblyed on it. He has been planning it since the London Confer- ence. It is the stabilization he first wm% to effectuate there and could not.”because it would have had a de- pressing influence on his domestic re- covery program. Since that time the only question inside has been when the time would pe. That angle was cleared last week when his exchange experts jound that dollar fluctuations abroad had absolutely mo effect on our domestic prices It showed them the dollar has run its full beneficicl course and stadiliza- tion could be effected at any time without interfering with the do- mestic program. Time is required to perfect inside ar- rangements for such a vast undertak- ing Foreign agreements are neces- sary, particularly with Great Britain. That is what Profs. Warren and Rogers have been doing abroad. Also, the proper psychological mo- ment must be chosen for maximum domestic_effect. Wall Street insiders have been ex- pecting an auuoncement since last Sat- urday. They realized then it might come at any time. Jones Annoys Bankers. ‘The bankers are groaning again. They cannot see why Jesse Jjones keeps harping on the idea of forcing them to issue preferred stock. They do not need more capital, or at least they think they do not. That makes them fearful of the letters Jones has been sending them lately, gently hinting they had better come into the R. F. C. and take some money for preferred stock. The explanation of Jones’ tactics probably has a root deeper than the The idea of this ad- ministration, as well as the last, has been to promote unified banking. If the Government gets preferred stock in a bank. it will ultimately have more to say about how the bank is operated. Loses Huey Long Scoop. A reporter of a New York paper was fired for drinking too much (reporters are never intoxicated). He happened to be at the Sands Point Club the night Huey Long was soiled. Huey covered with gore. Believing he might get his job back with an ex- clusive story, he telephoned the city editor who fired him. He gave all the details about the battle of Long Island. “Yow're drunk again,” said the city editor, banging down the ’phone. The scoop was lost. ‘Those who ought to know, say the current steei production figures are slightly padded. They believe opera- tions have been 3 or 4 per cent less nationally than advertised. That is not enough to make much difference. At the State Department, they be- lisve trouble follows the occupant of i the office suite on the southeast corner Vof the building. Undersecretaries Olds. Cotton, Rogers and Moley occupied the office in succession and each found it a jinx. The present occupant is As- sistant Secretary Caffery, who has re- cently had bad news about Cuba. e | M Stafe_Secretary Hull loves the topic of tariffs so much he may go to the December Pan-Americca C- 1 at Ll HE McKee mayoralty boom was Underneath he went further He saw | THE kvianiadg SLAR, WADIIINGLUN, [STUN A g N Foasasnhs aaan h ARG, Koud lKEI.I.Y |S BAP“IREI] APPRUVAI. |S SE[N Where Many Are Reported Killed by Hurricane WITHOUT STRUGGLE U. S. Agents and Memphis| Police Seize Desperado, Wife and Two Men. ber of the kidnaping gang who ex-' torted $200,000 from the oil man's family. A number of other accused g’t‘in-pen are on trial in Oklahoma Y. | | Mrs. Kelly described her brother, Ar- mond Shannon, also on trial in the kidnaping, as a “sweet boy—just 19.” “I've got nothing to say about that guy,” she told Police Chief Lee when asked about Kelly. “I don’t want to have anything more to do with him. He got me into this terrible mess.” She wore a smart black suit, with a shoulder cape trimmed with a fringe of black fur. She rolled large, bro eyes as she told of the troubles of a life with a gangster. Marked Wedding Anniversary. “Day -before yesterday was my third wedding anniversary,” she said, “and what a swell anniversary.” She said she had informed “a Mr. Kernan of the Department of Justice” that “I am going to testify for my par- | ents. “I came here to see Kelly and tell him that I was going to do this. I| :l! going back to Oklahoma City from ere She fumbled the red metal buttons on | her_suit. “No, I don't want my picture taken.” she said. adding she had never been! {'mgn-prlnted or photographed by po- ice. “Well, you are lucky,” Chief Lee said. T don’t know that I'm lucky.” she returned. “I haven't broken any laws.” “That guy you been ‘paling’ around| with has been wrecking plenty,” the | chief answered. FACE TRIAL THIS WEEK. Kellys to Be Arraigned Friday, Keenan Declares. OKLAHOMA CITY, September 26, (@) —J. Edgar Hoover, director of the | United States Bureau of Investigation advised Federal authorities here today | by telephone from Washington of the | capture in Memphis, Tenn., of George | Kelly, widely hunted as one of the| Charles F. Urschel kidnapers, and his| wife Kathryn. | Joseph B. Keenan, Assistant United States Attorney General, said the Kellys | would be brought here immediately for trial. | “We'll go to trial with them as soon as we finish with the other “efendants.) perhaps Friday of this week,” Keenan said. “Witnesses already are here.| Everything is ready. We'll start as soon | as this jury has brought in its verdict.” | Trial of the 10 other defendants in | the Urschel case was resumed today. Keenan declared yesterday he had| | received a letter from Kathryn Kelly | last Friday in which she indicated desire “to live a peaceable and honor- | able life.” The letter, Keenan said, | asked him to consult with John V. | Roberts of Enid, whom Mrs. Kelly had | | employed as an attorney for her mother. | | Mrs. Ora _Shannon. and her’ stepfather. | R. G. “Boss” Shannon, on trial for| the Urschel kidnaping. | Advised by Federal agents of Kelly's| capture, Urschel closed his downtown | | offices and told his employes they might | | attend the trial. Urschel last week re-‘ ceived a letter from Kelly, threatening | him with death. | R. H. Colvin, Federal agent in charge here, said the arrests “surely take a load off our minds." “We couldn’t af- ford to have that pee-wee running| around the country sending us a flock | cf threatening letters.” he added. | E. E. Kirkpatrick of Tulsa, the Urschel ! associate who carried the oil man's| $200.000 ransom to Kansas City and{ handed over the money, was pleased. { “I'll get a chance to look him in the | eye and identify him now,” Kirkpat- rick said. From the witness stand last week | Kirkpatrick identified Kelly from a | photograph_as the man to whom he| handed a little black satchel contain- ing the $200,000 in $20 bills. “I am just tickled to death,” said Shannon, who testified yesterday that he “still loved” Kathryn, but was con- vinced now that Kelly is a “bad man.” “My wife and boy and I are surely re- lieved,” he added. ‘The Shannons have been threatened indirectiy by Kelly during the trial He accused them of “talking too much.” B G. Brigham vice president and cashier of a bank at Kingfisher, Okla., which wae robbed on August 8, said he was eager for Kelly to be returned to Oklahoma. “I am sure it was Kelly and Bob Brady, a fellow member of the Harvey Bailey-Wilbur Underhill gang, ‘who rob- bed the bank and kidnaped me to keep the following posse from shooting,” said Brigham Authorities said Kelly might be | prosecuted on State charges of robbery | with firearms, for which the maximum penalty is death, following the kidnap trlal. Life imprisoment is the maxi- | mum penalty under the Federal kidnap {law. | The State charge would be based on | the robbery of Walter Jarrett, Okla- | homa City oil man and friend of the Urschels, who was kidnaped with Urschel from the latter's home and re- | leased after $54 was taken from him.| Bates also may be prosecuted on the same charge | | Charles F. Colcord, Oklahoma City | i capitalist who led a local movement to | raise, and personally underwrote, & reward of $15.000 for the capture. dead or alive, of the Kellys, said the cir- cumstances of the arrest would be in- vestigated to determine if payment can | be_made. “I understand now that Federal| fiicers made the arrest, aided by Mem- ¢ | phis city police cal'ed in to assist by | the Federal forces.” said Colcord. “The agents of the Department of Justice are forbidden by law to accept rewards. I do not know at this time just what is | the status of the Memphis city police.” An unreasoning fear of Kelly and Albert Bates prevented Shannon from notifying officers while Urschel was| held captive at his Paradise, Tex., farm in Julv. the middle-aged farmer testi- fied as he Tesumed the witness stand for cross-examination in the kidnaping trial. “I knew the boys (Kelly and Bates) had radios on their cars and it I told | off on them they would come back and | I would not be alive; my boy, Armon, | would not be alive, Mr. Urschel would not be alive toda Shannon in answer to a Government question The boy and Shannon's wife, Mrs. Ora L. Shannon, are codefendants in the_trial. Keenan took vp the examination where it was halted by recess after nearly s day of questioning yesterday. “On August 12, when the officers made the raid on your farm, you knew Mr. Urschel had been kidnaped. and that he had been imprisoned there. and that he had been taken to your son’s home and guarded there—you knew all, those things. didn't you?"” asked Keenan. | “Yes, sir.” Denied Knowledge of Plot. | “And didn't you deny to the officers that you knew anything about it?” “I ‘don't remember. I don't know | whether I tcld them that or not.” “Who was in charge of the guard- ing_of Mr. Urschel?” “Well, me and Armon guarded him. I can't say who was in charge.” “Weuldn't Armon, your own flesh and i | | jo | administrator, still at Walter Reed Hos- | operators who have refrained from FOR RETAIL CODE Compact Likely to Receive Presidential Favor With- in Few Days. By the Associated Press. Despite the furore raised around the ' price-control provisions of the retail | code, there were indications today the | compact might receive presidential ap- proval within a few days. With Hugh S. Johnson, the industrial pital receiving treatment for an infec- tion, other officials busied themselves with the retall code and a number of hearings. Progress was made toward settling wage rate disputes with the Alabama and West Kentucky bituminous coal signing the coal code. Hotel Hearing Continued. A hearing was continued on the pro- posed code for the hotel industry, with Pprospects for extensive revision after Willlam Green, president of the Amer- ican Federation of Labor, had declared 1t offered hotel employes little improve- ment in wages and hours. On the retail code it was not definite | whether the provisions requiring sub- stantially all retail trade sales be made at or above a minimum price represent- ing wholesale cost plus 10 per cent would be approvea by the President without modification. N. R. A’s own economists and law- yers have been studying the provision carefully and there has been manifest extreme reluctance to sanction it, espe- cially in the light of protest from con- sumer groups. which fear it may be- come a precedent for outright price fixing. Officials said today, however, they were surprised at the small .volume of objections filed since publication of the revised a 'ment last week. Actually, they said. less than one-half of 1 per cent of the communications received were protests against this pro- vision. Aimed to End Practice. Indorsement of this feature, repre- sented by the trade as being aimed primarily to end the practice of selling “loss leaders,” which are standard items sold below cost to attract cus- tomers, who may then be sold more profitable goods, has come primarily from small independent merchants. The revised code has been made pub- lic. officials said. with the deliberate idea of drawing trade reaction. favor- able and unfavorable, so sentiment of the unorganized storekeepers could be ascertained and that. following ap- proval of the code. it could not be said that any interests had been denled consideration. For the past two weeks the code has been under continuous consideration, not only at the N. R. A. but with Presi- dent Roosevelt who was represented to- day as already fully acquainted with all angles involved. ASSISTANT CASHIER WILL FACE CHARGES John Francis Cook Expected to Surrender on Embezzling Count. John Francis Cook, former assistant cashier of the United States Savings Bank, Is expected to surrender to United States Commissioner Needham C. Turnage this afternoon and accept service of a warrant charging him with embezzling $4.870.91 from the bank. United States Attorney Leo A. Rover, who has been directing a search for Cook for several weeks, said he was informed the man would surrender at 3 o'clock this afternoon. Rover said he would order his release upon the posting of $2,000 bond. Cock, who lives in Chevy Chase, Md., is charged with embezzling the money from the bank between January 17 and March 3 of this year. The warrant for his arrest was sworn to by Eugene C. Sauer, a special agent of the Justice Department’s division of investigation, and was issued by Commissioner Turn- age. Depuyty United States Marshal John J. Clarkson has the warrant and intends to serve it on Cook this after- noon. It was understood Sauer and other agents are still examining the books of the savimgs bank to determine if there is any further shortage there. \PRESIDENT STUDIES RECOVERY MOVES ON JOURNEY HOME (Continued From Pirst Page.) N. R. A. officials as widening the breach between capital and labor over the labor section of the recovery act that guarantees the’ right of workers to bargain collectively in any manner they choose without interference or coercion from employers. Green, as American Federation of Labor chieftain, only last week charged that “astonishing evasions” of the law were being practiced by big com- panies in furthering company unions. which are made up of employes ofj single plants. Replying to Henry I Harriman, president of the Chambe: of Com- merce of the United States, Green said the recovery act did not prohibit | the closed shop. s blood, have done as you told him to do?” “I guess s0,” replied Shannon. “And weren't you responsible for what he did?” “Mr. Keenan, I'm not responsible for what any man does after he's 21 years old, even if he is my boy,” the father said. Shannon then said he did not identify Urschel before the officers on the morn- ing of the raid. Keenan asked Urschel to stand. Pointing to him, the prosecutor asked, “Do you say you don't recognize that “No, sir, I didn't recognize him until he came to my cell here in Oklahcma City.” Refers to Previous Story. Referring again to the answers Shan- non gave in the habeas corpus proceed- ings in Fort Worth August 24, Keenan asked if he didn't deny telling the officers on the raid that he knew noth- ing of the Urschel kidnaping. “I don't recall the statement,” said annon. “When Bates and Kelly came back, didn’t you ask them, ‘Did you get the money?’ " Keenan_asked. “Yes, sir, and Bates said, ‘We got what we went after,’” Shannon fled. “Didn’t you know that Armon had been promised $1,500?" “Yes, sir.” “And didn't you tell them they had not treated your son right because they were going to give him only $1,500 out of the $200.000?” “I told thzm it wasn’t right because they were going to get him in the penitentiary.” “And when they got ready to leave, you went over and squeezed Mr. Ul‘lfh;};; 'htnd and told him good-by?” Alrview of Tampico, Mexico, where first unofficial estimates reported anywhere from 200 to 5,000 persons killed in the hurricane which struck there the night of September 24.gnd devastated three-fourths of the city. Review of History of Money Fixes Its Place in Modern ‘Life Traced Back to Origin, Gold Basis of “Real Money” Is Shown to Be More Than An increasing number of people in the United States are apprehen- sive of currency inflation and fear- ful of its results. Eight distinguished men, repre- senting both major political parties, have approved and sponsored a series of articles presenting their viewpoint on the money problems of the day as their contribution toward promot- | ing a clear understanding of the | monetary system in the present con- | troversy. | The series will appear in this news- | paper in 15 consecutive daily chap- | ters. The second is presented today. (Copyright. 1933, by North American News- paper Alliance, Inc.) Article II. “REAL MONEY.” What do we mean by money? According to the dictionary. money is “anything customarily used as a medium of exchange and a .Illndll‘d;f of value.” But a definition tells us little of the real nature of money. The best way to| understand its place in the scheme of things is to trace it from its early beginnings down through the various stages of its evolution until it emerges | in the forms in which we see it in our | everyday life—the 50-cent piece, the | g bkm' the check for $10 on our local nk. { For money is not an invention. It is a mechanism which has developed | through the ages in response to the natural instinct of men for a con- stantly greager variety of the good | things of life—the trading instinct. Barter Range Limited. The earliest manifestation of this instinct was barter. Civilization in the sense we know it, however, could never have developed under barter, for the possibilities of exchange were limited on_every hand. The man who had ivory to sell and needed cloth was unable to make an exchange until he found some one who not only had cloth to sell, but also was in the market for ivory. Moreover, he was handicapped by the perishability | and lack of portability of commod- | ities of exchange. That is why the earliest caravan routes were confined to the transportation of compact, ex- pensive and non-perishable things, such as spices, silks, precious stones. It was inevitable that out of this| hit-or-miss form of exchange some commodity which was desired for {tself and which was widely distribhted should find general acceptance as a medium of doing business and as a measure of value. When this stage was attained—we may call it the stage of transition from | barter to money—markets were broad- | ened measurably. The seller was no longer limifed to doirg business with | some one who wanted what he had at| the moment. He had access to all buyers within his reach, today, tomor- row. a month hence. Food First Standard. The first choice of such a common exchange unit fel neturally on foods | and ornaments. And as food was the rimary need, and cattle constituted the earliest weslth, the first “standard” unit of valua in most of the Aryan countries we4 the ox or cow. It is no accident ¢hat the word pecuniary, meansng anything referring to money, hes its origin in the Latin word pecus. ‘meaning ox or cow. Among the numerous commodities that soon came to have a fixed value | in terms of the ox was gold. A stater | (130 grains) of gold was valued at one ox. Then as time went on and that definite relationship had been thor- oughly established by custom and tra- dition, we find happening just what Sponsors of This Series NOTE — The following men have sponsored this series of 15 articles on money and inflation: Wallace Alexander, San Fran- cisco—Has extensive shipping in- terests on Pacific Coast, impor- tant as sugar factor, & director of various dl’\;:rsfl‘:rg business en- terprises; publican. Sewell Avery, Chicago—Presi- dent United States Gypsum Co., member of bank and other direc- torates; Republican. Leonard _Ayres, Cleveland— Banker and economist; Repub- lican. Newton D. Baker, Clu"fillnd": Lawyer, trust company director, Se:thary of War under Presi- dent Wilson, prominently men- tioned as Democratic candidate for President in 1932 campaign. James Bell, Minneapolis—Head of big milling interests, bank di- rector; Republican. Will L. Clayton, Houston, Tex. —Head of important cotton in- terests; Democrat. David F. Houston, New York— Former Secretary of Treasury and Secretary of Agriculture under President Wilson, former chair- man of Federal Reserve and Farm Loan Boards, president of Mutual Life Insurance Co. New York; bank director, railroad di- rector, director of various other tions. mmk C. Rand, 8t. Louis—Shoe acturer, bank and railroad director; Democrat. Convention. might logically have been expected. | The gold equivalent of the ox. because infinitely more convenient, became the accepted medium of exchange. So closely were these two commodities as- sociated in men's minds that a stater of gold actually came to be known as an “ox”. Then, slowly, the ox itself— the cattle—faded into the background, finally passing completely out of %he ' picture. Gold, by slow process of evo- lution, emerged not merely as the me- dium of exchange, but also as the standard of value. Needless to say. the evolution of money did not follow this precise course in every part of the world. Thousands of commodities have served at various times and in various places as the standard of value and the medium of excha Slowly but surely, however, this almost unconscious groping for a satisfactory form of commodity money has converged on the precious metals, sirable and necessary for that purpose. Real Money Came Slowly. | There remained one step, however, before what economists refer to as “real | money” made its appearance. One of | the requisites of “real money” is that | it be ‘“customarily received without assaying or special tests of quality or | quantity.” That was not true of the stater of gold which, along with the shekel, the mark, the pound and the tael, was strictly & unit of weight and had to be measured out at each trans- action. The transition of gold and silver from the state of “commodity money” to “real money” came with the introduction of coinage. Most historians think the birthplace of coins was Lydia, an ancient | kingdom of Asia Minor noted for its l mineral wealth, where gold and silver stamped ingots circulated as early as the ninth century B.C. Coins were pro- duced first, not by the king nor the state, but by private merchants. This period of private coinage was brought to an end when Gyges, most illustrious of all the Lydians, having amassed a for- tune as a merchant, seized the crown and at the same time claimed coinage as a royal attribute. Coinage today is | regarded as a prerogative of the state, | or a state agency, among all civilized countries. ‘The notion that gold as a basis of | money is merely & convention—a sort of | fetish—is totally fallacious. Gold has come to its place of high esteem throughout the world by natural selec- tion, a process of elimination involving the experiences of thousands of years | and of thousands of civilizations. (The third article in this series wil appear | in The Star tomorrow.) = ! CUMMINGS TO TALK OVER RADIO FORUM Financial Expert Will Discuss| Glass-Steagall Bill To- morrow Night. Walter C. Cummings, chairman of the Federal Deposit Insurance Corporation, will speak over the National Radio Forum tomorrow night from 10:30 to 11 o'clock. The Forum, which is arranged by The Washington Star and broadcast over a coast-to-coast network, will have Station WMAL as a Washington out- let instead of Station WRC for a pe- riod cof eight weeks. The program also has been shifted from Tuesday to ‘Wednesday night. Tomorrow night Mr. Cummings will discuss the insurance of bank deposits under operation of provisions of the new Glass-Steagall banking act. The Federal Deposit Insurance Corporation recently was appointed by President Roosevelt to administer the deposit in- surance clause of the act. —_ BAND CONCERT. By the United States Soldiers’ Home Band, this evening at the bandstand at 5:30 o'clock. John S. M. Zimmer- mann, leader; Anton Pointner, assist- ant leader. March, “Marching Along Tcgether,” Pola | Overture, “Childhood Days” (requested). | Peter Buys Humorous, “Three Blind Mice” , “Reminiscences of Ireland,” Godfrey Fox trot popular, “Sweetheart Darlin’ Stothart Waltz song. “Waltzing in a Dream,” You Finale, o “Our Old Vets,”. .Zimmermann ‘The Star Spangled Banner.” Priest Gets New Em. ST. LAURENT, Quebec, September 26 O this parish 1ot v years; on s way of for five years, on way to Notre Dame College, Indiana, where he will become Fathers of the Holy Cross. tendered a farewell reception by 3,000 parishioners yesterday. LOWELL ATTACKED N POSIN TRALS Representative Browning Re- veals Complaints Against U. S. Judge. By the Associated Press. BOSTON, September 26. — Written charges against Federal Judge James A. Lowell, based on his handling of the cases of two men charged with dealing in poisonous ginger extract, have been filed with the Congressional Judiciary Committee. Representative Gordon Browning of Tennessee announced here today. Browning, member of a subcommittee which came to Boston to investigate Judge Lowell’s conduct in office, said the charges had been filed by pure-food interests. Congress passed a resolution several months ago ordering the Judiciary Committee to determine whether im- peachment proceedings should be brought against Judge Lowell for his hanaling of the extradition of George | | Crawford, colored, wanted for the slay- ing of two women in Virginia. Browning, acting as spokesman for the subcommittee, said “the pure food interests complained about the manner in which Judge Lowell handled the cases of Max Relsman and Harry Gross, who were fourdd guilty in the Jamaica ginger cases in this court a few years ago. “The New Jersey people also com- plained about the small fines and sentences imposed oy Judge Lowell = the defendants.” The charges against Reisman and Gross grew out of the investigation of hundreds of cases of poisoning reported in several parts of the country. par- ticularly in the Middle West, from the drinking of Jamaica ginger. L TR TAMPICO ISOLATED AS THREE-FOURTHS OF CITY IS RAZED (Continued Prom First Page.) River, seven miles from its mouth on the Gulf of Mexico. Its poorer districts are only two or three feet above the river, but the bet- ter residential area is about 150 feet above the stream. It has had a rapid growth, partly because of oil resources. Estimates of the death toll were made at the Interior Department. A direct report from the military chief, Gen. Anselmo Macias, said the storm caused a “tremendous catastrophe.” Two Trains Disappear. “Solid and wooden houses of all kinds were wrecked,” Gen. Macias reported. “Many dead and injured. Forces under my command are affording aid to an enormous number of pecple who are asking help. For the safety of the city I have declared martial law.” 1t was officially revealed that two passenger trains and two freight trains disappeared between Cardenas and ‘Tampico. ‘Vasconcelos issued this statement: “Official information from Tampico says the cyclone caused enormous dam- age reaching proportions of a disaster, both in the number of dead and in- jured, which presently cannot be stated exactly. The material damage also is incalculabie.” President Rodriguez, who is on vaca- tion in Tehuacan. appealed to Mexi- cans to send monetary contributions for relief. A message from Charles Drayton. an airplane pilot, said Tampico authori- ties, overwhelmed less than two weeks 2go by a tropical storm that caused 50 deaths, regarded this as the worst dis- aster in the city’s history. (September hurricanes have in recent years caused thousands of deaths. Among them were Florida, 1926. 400 dead: West Indies. 1928, 920 dead: Florida. 1928, 1180: Santo Domingo, 1930. 2.000: British Honduras, 1931, 1,200; Cuba, 1933, 300 dead.) AMERICANS BELIEVED SAFE. State Department’s Records List 969 Living in District. R. S. Carey. American vice consul at Tampico, Mexico, advised the State Department today that all Americans residing in the Tampico area are be- lieved to have escaped injury from the hurricane which devastated that city. State Department records list 969 American citizens living in the Tam- Jpico district. President Roosevelt's concern over the disastrous hurricane at Tampico | was expressed in the following tele- gram today to President Rodriguez of Mexico: “I am shocked and deeply distressed to learn of the hurricane which has struck Tampico and caused such tragic loss of human life and wide destruction of property. “On behalf of the people of the United States and in my own name I wish to extend to your excellency and to the people of Mexico an expression of profound sympathy.” Vast Trade Affecled. ‘The National “Geographic Society said “a vast international trade” would be affected as a resuit of the hurricane which is “reported to have nearly laid the city of Tampico, Mexico, in ruins.” “Tampico, six miles up the Panuco. River from the Gulf..has a volume of trade greater than any other } HAMILTON BANK | THRONGED TODAY Officials Declare Deposits Still Exceed Withdrawals in All Branches. ‘The Hamilton National Bank, which opened yesterday, witn a net gain in deposits. was thronged with depositors today as officials saic that the deposits still were exceeding withdrawals. No definite figures have been made public, but at the end of the day yes- terday President Graham definitely an- nounced that reports from all seven branches and headquarters of the bank showed that receipts far exceeded with- drawals. The bank today continued with the gala spirit of the opening day with the spectacular floral displays in all lobbies and a continuation of numerous con=- gratulations from many quarters. Among the Government officials who called in person yesterday to congratu- late officials on the opening of the bank were Walter J. Cummings, executive as- sistant to the Secretary of the Treasury in charge of reopening banks: Floyd G. Awalt and Gibbs Lyons, deputy control- lers of the currency ICKES ORDERS DAY AND NIGHT SHIFTS Public Works Administrator to Hasten Expenditure of Funds Allotted. Becretary Ickes, public works admin- istrator, has ordered the inauguration of day and night shifts in the Pubiic Works Administration to hasten the ex- penditure of the $1,600,000,000 already allotted. The new schedule was to take effect today. It was explained that the pres- ent schedule of day. night and Sunday work by a single shift is exhausting the workers, and lack of adequate space prohibits enlargement of the present day force. The use of two shifts will permit the utilization cf all existing fa- cilities for hastening new public works. Col. H. M. Waite last night urged non-Federal organizations to hasten their applications, since Federal agencies were seeking additional funds and | promising to spend them immediately if obtained. WASHINGTONHAGENT DIRECTS CAPTURE OF KELLY IN MEMPHIS (Continued From First Page.) | | i similar orders to agents in charge of the St. Louis and Chicago field offices. ‘The plan was to fly agents to Memphis from three directions, the squad ar- riving first to go ahead and make the capture without waiting for the re- inforcements. Hoover was at his office all night. anxiously awaiting developments . Memphis. Late yesterday he had rc- ceived word from agents in the Sou west that positive information (i Kelly's whereabouts had been obtained from “a confidential source.” Hoover's men had been hot on Kelly's trail for several weeks, but the gunman always managed to keep about 24 hours ahead of his pursuers. The agents had al- most trapped Kelly in San Antonio a week or two ago. but Kelly fled just a few hours before the officers arrived at a certain house. From Texas, Kelly d led the Federal investigators on a crazy chase into Oklahoma and Ar- kansas and then to Chicago. Mrs. Kelly always was with him.. Finally came the information that the Kellys had gone to Memphis Sunday and were stopping at a certain place in the city. There were fears that Kelly might flee before the Federal officers caught up with him, as he had done so many times before. Hoover and several of his assistants waited through the night for the flash that would tell them of what was happening at Memphis. Finally, just before 7 o'clock this morning, Rorer telephoned. “We've got both the Kellys and two other men,” he told Hoover. “They were asleep when we arrived and sur- rendered without a fight.” Rorer then proceeded to tell how the Kellys admitted their identity, how Kelly's hair had been dyed from daik brown to a reddish hue—like Harvey Bailey's—how Mrs. Kelly's red thatch proved to be a wig covering her own hair, once black and now bleached a straw color, and how two revolve:s were found in Kelly's effects. While elated by the arrest of Kelly, Hoover pointed out an intensive man- hunt still is on for several other “bad men” of the Harvey Bailey gang. in- cluding Wilbur Underhill, Verne Milier, Richard Galatas and Bob Brady—ail wanted for the machine gun massacies of Federal and local officers in front of the Kansas City Union Station on June 17 last. STOCKHOLDERS VOTE APPROVAL OF MERGER OF TRACTION LINES (Continued Prom Pirst Page.) \ | | i | i $445,000 for 75,000,000 kilowatt-hours per annum. This is based, however, on an_expected consumption of between 60,000,000 and 90,000,000 kilowatt~ hours. If the consumption is below or above these points, there is s sliding scale arrangement for changifig the rate. Accor to another sliding scale, which is part of the contract, the price for power is made to depend upon the delivered price of coal at the power compsny’s Benning station. At the same time the power company will take over contracts now held by the Washington Railway & Electric Co. to sell power to other street rail- way systems. These clauses taken to- gether are expected to yield the power company roughly $400.000 per annum more in revenue than it now recefves. Bus Line Not Included. The merger plan does- not include the Washington Rapid Transit “Co., operating busses on Sixteenth street and elsewhere here. It is, however, contemplated that after the street rail- way merger is complete' the bus prepe erties will be bought by the new com- pany at a fair price. N After the merger is effected, the one-cent charge for transfers between street cars of the two present sys- tems will be abolished. Other reforms, such aschanging of routes of street car lines, are left to the discretion of the new company under the cone trol of the Public Utilities point of entry in the republic,” the statement added. 2 “The city ranks among the great ofi~ distributing centers of the world. In its spacious harbor is a constant parade of shipping—oil tankers, barges and huge ocean-going vessels that fly the flags of many nations. - “Tampico also thrusts into the world trade channels silver, copper. zine, bananas, vegetables, hides, skins, sare saparilla, vanilla, honey and sisal. aspect it s s charm: sz whety , a wl Mexican.” ]