Evening Star Newspaper, October 14, 1933, Page 2

ROOSEVELT SEES THREAT TO PEACE Peoples With Imperialistic Desires Still Menace World, He Says. ~ ¥ the Associated Press. \ Peoples with “imperialistic desires for | expansion and domination” are viewed ! by President Roosevelt as the modern threat to world peace. H “It seems clear to me,” he said last night, “that it 1s only through con- stant education and the stressing of the ideals of peace that those who still seek | imperialism can be brought in line with the majority.” These statements were made by Mr. Roosevelt in an address from the White | House to the third annual Women's Conferenee on Current Problems, meeting in New York. He said the! “complete lack of a national desire for territorial expansion * * * makes the rest of the world begin to understand that the United States is opposed to war.” He added “I will go one step further in saying that the very great majority of the in- habitants of the world feel the same as we do about territoial expansion or getting rich or powerful at the expense of their neighbors.” School Quality Stressed. Mr. Roosevelt emphasized the import- ance of cutting local government costs “by good business methods and the elimination of the wrong kind of pol- ities.” but said schools must be restored to their -pre-depression —educational level “The quality of our teaching in most every State of which I have knowl- edge can be definitely and distinctly ralsed.” he taid His appeal for better teaching went to colleges throughout the count federation of women's clubs and neariy 2,000 organizations interested in edu- cation, as well as the conference. | He said he wanted to enlist the sup- port of all these interests “in the fight we are making on the depression.” | Text of Speech. } The text of the President’s speech! follows: | “I am glad to have the opportunity of greeting those who are attending the third annual Women's Conference on Current Problems | “I note that the subject of this con- ference is ‘this crisis in history,’ and this leads me to suggest that the short space of 10 minutes will scarcely allow | me to do more than congratulate you| on your courage in seeking fully to, discuss ‘this crisis in history’ in the space of two day: “May I, however. touch very briefly | on two matters which are much in my | mind—two problems which can be]| heiped by public interest and pubiic discussion? | Danger Outside of U. S. “One of them relates to the peace of the world. The danger to world peace certainly does not come from the United States of America. As a nation we are overwhelmingly against engag- ing in war. As a nation we are seek- ing no additional territory at the ex- pense of our neighbors “The United States does not seek to annex Canada or any part thereof, to' annex Mexico or any part thereof. or | to annex Cuba or any part thereof.| It is this attitude of the overwhelming | majority of our people toward their neighbors—thi8 complete lack of a na- tional desire for territorial expansion which makes the rest of the world be- gin to understand that the United States is opposed to war. “I will go one step further in saying that the very great majority of the in- habitants of ihe world feel the same as we do about ierritorial expansion or getting rich or powerful at the expense of their neighbors. It is only in the case of such people in the world as| still have imperialistic desires for ex- pansion and domination in their minds or in their hearfs that threats to world | peace lie. And. finally, it seems clear to me that it is only through constant | education and the stressing of the ideals of peace that those who still seek im-| perialism can be brought in line with | the majority. { Crisis Marks Children. ! “The other thought that I want to express to you is even more definitely along the line of education. It is true, unfortunately, that the economic de- pression has left its serious mark not only on the sclence and practice of | education, but also on the very lives of | many hundreds of thousands of chil-| dren who are destined to become our | future citizens. “Every one of us has sought to re-' duce the cost of government. Every one of us believes that the cost of go ernment. especially of local govern ment, can be reduced still further by good business methods and the elim- ination of the wrong kind of politics. “Nevertheless. with good business management and the doing away with extravagance and frills and the unnec- essary elements of our educational ractices we must at the same time. ave the definite objective in every | State and in every school district of restoring the useful functions of edu- cation at least to their pre-depression level. “We have today. for example, @ large surplus of so-called qualified teachers—men and women who even if we had full prosperity would and probably should be unable to find work in the field of education. Too Many New Teachers. i “Even today we are turning out too many new teachers each year. That is just as much an economic waste as building steel rail plants far beyond the capacity of railroads to use steei rails, It goes without saying that we should have enough teachers and not & large excess subply. “It_ goes also without saying that the quality of our teaching in almost every State of which I have knowledge can be definitely and distinctly raised. | The main point is that we need to make infinitely better the average education ! which the average child now receives, ' and that. through this education, we will instill into the coming generation a realization of the part that the coming generation must.play in work- ing out what you have called ‘this erisis in history.’ Education Recovery Factor. “This crisls can be met, but not in & day or a year, and education is a’ vital factor in the meeting of it. “I am told that tonight I speak not only to the Conference on Current Problems but to colleges and univer- sities throughout the country, many {federations of women's clubs. almost 2,000 organizations interested in edu-| cation, public and private schools and State educational associations, num- ! bering among their members many of | the educational leaders of America. “I mention this because, in closing, I want to enlist your support in the fight we are making on the depres- sion. When this fight is won your' problems will be solved. You can help your Government—Federal, State and | local—and. we in Government want your help.” Seven Cousins Enrolled. EMPORIA, Kans. (#).—Seven first cousins are enrolled this year in the College of Emporia. which each of their parents attended. -They are George W. Fullington, Eleanor - Fullington, Bob Heckman, Harold Heckman, Chase Wil- son, Elizabeth Wilson and Gerald Meek. F What’s What Behind News in Capital. N.R. A. Face Is Chang- ing As Some Leave Others Retreat BY PAUL MALLON. ROM the inside these days the! N. R. A. looks like a house that | is being vacated. Only two of the faces which came in with Gen. Johnson re- main hanging on the wall in their ac- customed places. They are Deputy Ad- ministrator Malcolm Muir and A. D. Whiteside All the others have left or have been pushed back into obscure corners. Gen. Johnson himself is giving & good | imitation of a man getting ready to jump his lease. R. F. C. Gives a Hand. Jesse Jones is encouraging bankers to form mortgage companies to help take | | the financial load off their necks. That has been done in at least two large cities, one in the Middle West and one on the Pacific Coast. It will soon be done generally. The idea is that the R. F. C. can then help finance the mort- gage companies and the position of the adjoining bank would be materially” strengthened. It is a good policy and the bankers like it. However, it is noteworthy that while | the Government is trying to abolish se-l curity affiliates it is helping to create | mortgage affiliates. Consistency is no longer considered & As soon as the story got out that Mr. Roosevelt was contemplating monetary action within a few days, the con- servative administration clique started ! broadcasting: “No, no, no.” They incpired the current series of cold water stories, predicting no action. That does not change the funda- mental situation. One thing essential to monetary action is absolute secrecy. No advance hint must be let out of the bag. The secret can best be maintained | by creating confusion. So we are having a little synthetic confusion for a while. Wall Street Not Guilty. One yarn the conservatives are pass- ing out is that all devaluation rumors come from the corner of Broad and Wall streets. That is not true, but the inference behind it is. Those who sent their dollars winging out of the country in the general mass flight will profit jrom devaluation. If we devalue 60 cents they can theoretically bring their joreign credits and forewgn gold back here at a profit ©of 40 cents on the dollar. That is deplorable, but it cannot be a governing influence in Mr. Roose- velt's decision. Other national consid- erations are far more important. The Liberty Bond refunding was ap- | parently a compromise with the accent on the last two syllables. Treasury experts worked in Secret at several late night sessions, figuring it out. They reached the conclusion that the entire six billions could not be re-| financed. The bond market could not stand it. But Congress had passed the bond resolution demanding a reduction in interest rates. Hence the idea of reducing the in- terest rate 25 per cent on one-third of the six billions. fot this year but next. That is supposed to appease those who have been yelping for reduction in interest payments. The only practical immediate effect is to tell the world that there is not going to be any issue of greenbacks and that the bond market will be protected The Russo-Japanese War may called off on account of cold weather. Guns May Boom in Spring. Our Far Eastern prophets confiden- tially believe there may be a war in the Spring, but not now. They reason that it is too cold to conduct military opera- tions in Manchuria for the present. There are two inside reasons for the sudden cockiness of the Russians. They have barricaded themselves on the European front by non-aggression pacts with all their front-door neighbors. Now they are seady to handle the barking dog at the rear Also they have rushed to completion the double tracking of the Chinese Eastern Railway. It has improved their ! military position in the Far East. The tragedy of the sugar allotment plan is like the story of the baby chicks whose mother ran away with another rooster. At least that is the way it is told by a friend of Agriculture Secre- tary Wallace. be He says the chicks (beet sugar peo- ple) were very much alone in the world and felt like orphans until along came a hippopotamus (the refiners) Wwho said: “Never mind, little chicks, I'll mother you,” whereupon he sat down cn them, 8 helpful act from which the chicks never recovered. That may not be fair to the refiners, but it certainly expresses the viewpoint of those who turned down the agree- ment. The steel-wood people lost the contract for the C. C. C. houses because Wilson Comrpton of the lumber crowd went to the Presi- dent about it. He erplained that the lumber bids for the 2d Corps Area wtre submitted under a mis- nxpreh(nmn. The bids were changed and the lumber boys got the business. Incidentally Comp- %MR“' an appointment in the Nearly all the stories on the Liberty refunding mentioned the fact that Treasury Secretary Woodin was playing the banio on the radio from Philadel- i phia the night the bond announcement was made. Incidentally Woodin's fa- vorite composition is entitled “Covered Wagon Days.” a melody built on the gold rush before the era ofSembargoes. Friends have suggested he compose a new melody on the noises he has heard in the Preasury and call it: “You take the credit and I'll take the gold.” 4 | l HE EVENING FOR VOTE RIGHT National Representation for District [ndorsed by Convention. Unanimously supporting the principle of national representation for the Dis- trict of Columbia the American Fed- eration of Labor today was pledged to work in Congress and in the State legis- lative bodies to brigg this about. A resolution, introduced by James J. Noonan of the Central Labor Union and adopted late yesterday, reaffirmed the stund of labor on this issue, declar- ing the voteless residents of the Capital “are entitled to & new deal without turther delay.” The text follows: “Resolved, by the American Federa- tion of Labor in fifty-third convention assembled in the City of Washington, D. C, October, 1933, that we again record our hearty approval of the pro- posal to amend the Constitution of the United States so as to empower the Congress to grant to the residents of the District of Columbia voting repre- sentation in the Senate and House of Representatives, the vote for President and Vice President and the same rights before the courts of the United States enjoyed by the citizens of a State That we believe these voteless and un- represented fellow Americans are en- titled to a new deal without further delay and therefore pledge the aciive and continuing support of this fed- eration to bring this about. ‘Resolved, That the officers and proper committee of this body be and they are hereby authorized and di- rected to petition Congress, and State Legislatures and take such other ac- tion as will aid in obtaining prompt and favorable action upon this most meritorious American proposal.” A. F. OF L. BEGINS MILITANT DRIVE T0 PROTECT LABOR (Continued From First Page.) an appeal to the National Labor Board “in order to avold the necessity of strike declarations.” The convention recalled that the re- covery act was only temporary, and agreed: “We believe it urgent that a per- manent license law be enacted by Con- gress before the expiration of the licensing provisions of the N. I. R A." It instructed the executive council “to_prepare and introduce in Congress a Federal license bill relating to indi- | viduals, firms and corporations engaged in _interstate business.” It refused to indorse a lianket ob- jection to night work, l:clding that complete elimination of night work was not_practicable. The convention indorsed the Fur ‘Workers' Union’s campaign against communism, rejected a proposal for a constitutional amendment calling for the retirement from business of all per- sons who have $150,000 or more, voted to ask Congress to make an investiga- tion of the transportation of strike- breakers, and directed the executive council to try to settle with Rev. Charles E. Coughlin of Detroit the question of whether he was fair to organized labor. Phone Probe Sought. It approved a resolution asking Con- | gress to investigate the American Tele- phone & Telegraph Co. and urged new laws to “prevent the so-called abuses and impositions on the public by the operations” of this company. The threatened floor dispute over | whether new workers should be put in Federal labor or craft unions was avoided when the convention sent sev- eral resolutions on that subject to the executive council for consideration. Fresh from his acquittal in New York. Senator James J. Davis of Pennsylvan! was applauded at length as he a dressed the closing session of the con- vention. President Green introduced him, call- ing the verdict of the Federal jury that freed him of charges of conducting & lottery “a justified vindication.” Dele- gates rose and applauded as he made his way to the speaker’s stand. The Pennsylvania Senator was for 10 TS secretary of labor unions. and was Sec- retary of Labor inythe Cabinets of three Presidents. ‘Warns Against Strikes. In his address Davis warned thaf “labor cannot afford to cause strikes and holidays now.” and that differences of opinion must be submerged “to stand by the President in every possible way.” He s2id the codes of ccmpetition, re- garded as “new and radical” now, will| be commonplace in a few years, and | that if the act is honestly administered, “Industry will learn to govern itself by reason.” “The recovery act,” he said, “is not an effort to put Government into busi- ness; it is an cffort to put scme honest business principles into industry.” He added that ti® licensing cause must be continued as a permanent Government weapon to force compliance with codes. ‘The coal business had been brought to the status of “a mendicant indus- try.” he said, by “cutthroat” methods that had reduced the wages of miners from $7.50 a day to $1.50. and the price of coal from $1.10 a ton to 40 cents. |INVENTORY ORDERED OF U. S. LIQUOR STOCK Justice Department Considers Pos- sibility of Selling Seized Ttems After Repeal. By the Associated Press. The Justice Department has ordered an inventory of all stocks of seized liquors, and is considering whether these can be sold after repeal. Orders have gone out that no more liquor is to be destroyed, but all such beverages held until a decision on sale can be reached. When the total is determined, the figures will be submitted to President Roosevelt together with Treasury statis- tics on stocks of liquor in the country. The inventory order also included automobiles, boats and other items seized by the Government in the en- forcement of the Volstead law. U. S. MARSHAL APPOINTED Robert L. Ailworth, Eastville, Va., Named by Roosevelt. President Roosevelt today appointed Robert L. Ailworth of East , Va., United States marshal for the eastern district of Virgidla. He succeeds George S. Pitman, resigned. L AL DEATH HALTS TRIAL NEW HAVEN, Conn., October 14 (®). —A death in the family of one of the jurors yesterday interrupted trial of the $9,000,000 suit brought in United States District Court against the Aluminum Co. of America by the Baush Machine ;I;ool Co. of Chicopee and Springfield, ass. Judge Carroll C. Hincks sdjowrned court until Monday. I3 TAR, WASHINGTO ILABOR TO FIGHT BANK GUARANTEE SYSTEM SPEEDED 800 Examiners Sorutinize Applications Coming in at 200 Daily. By the Assoclated Press. Government _financial officials are making every effort to have a maximum/ number cf operating banks within the Federal Deposit Guarantee System by the time it starts operating. January 1. ‘The Deposit Insurance Corporation is receiving applications for membership at the rate of 200 a day from the more than 8,000 State banks which are not members of the Federal Reserve Sys- tem. More than 2,700 of these have heen received. Federal Reserve member Pfixlxl]u participate in the pool automat- cally. Some 800 examiners are busy going over the books of th institutions to determine whether they are eligible. When banks are found which do not meet requirements, the plan is for the Government to lend its assistance in placing them upon an impregnaply sound basis. The office of the Controller of the Currency is busy, meanwhile, with the national banks. Its figures show that between March 16 and October 10, 674 such banks which did not open at the conclusion of the banking holiday were licensed to become operative. As un- licensed banks, their frczen deposits to- taled $1,162,307,000. $581,153,500 Released. Officials say this does not mean that amount was paid out to depositors. | They estimate that an average of about | | 50 per cent of frozen deposits becomes | |available to depositors when a bank pre- | | viously closed is licensed fro business. On | this basis. $581,153,500 was put at the disposal of depositors | On October 10, 755 national banks | with frozen deposits of $638,467.000 re- | mained closed. A total of 372 national | banks with deposits of $397.573,000 had | drawn up reorganization plans which | had been apnroved by the controller. | Before they can receive licenses to open, | however, they must meet certain condi- | tions laid down in the reorganization plans, some of which have required con- | siderable time. | In addition to the national banks. figures compiled August 22 show 1766 State banks, non-members of the Fed- eral Reserve s:stem. were closed with froze. deposits of $1,057.877,000. The controller's figures also show payments totaling $270.647.000 to de- positors in banks in receivership be- tween Maich 5 and September 23. Dur- ing that period. the R, F. C. made 666 loans to such banks totaling $68,409,600 and received $40,850.665 in repayment. On September 23, the controller’s office was directing 1.140 receiverships, with a total deposit liability of $818,012.438. | | _As outlined by President Roosevelt. | the administration's policy is to see that no bank which can be put on a sound | basis shall be permitted to close. All | the Government assistance possible will | be given to the end that closed banks | shall be reopened. i But before the Government steps in Mr. Roosevelt is anxious that the peo- | ple of the locality first do their shi | I additions to the bank’s capital are needed. they must first do their part | toward subscriptions to new issues of | | preferred stock. The R. F. C. will buy | Ilhe unsold remainder. | Home Bonds Eligible. The Home Owners’ Loan Corporation is ready to replace slow real estate mortgage assets with its readily mar- ! ketable bonds, thus improving liquidity of the bank engaging in the trans- action. The Treasury has ruled that these bonds are eligible national bank investments. Receivers, too, with court approval. have the privilege of con- verting such assets into home owners’ {loan bonds. Consideration 18 being given to the possibility of permitting conservators to do so. The® Home Owners’ Loan Corpora- tion is authorized to issue $2,000,000,000 worth of the bonds. They are tax ex- empt and the interest, though not the principal, is guaranteed by the Treas- ury. The Farm Credit Administration also is empowered to issue & like | amount of bonds for application to rural mortgages. Behind the Deposit Corporation, the | Farm Credit Administration and the Home Owners' Loan Corporation, are plans for still another Federal agency | intended to help in the bank opening activities. These. still in the formula- tive stage, contemplate the establish- ment of a corporation financed by the | Reconstruction Finance Corporation, which would become a clearing house for slow assets. Care Exercised, ! Outlining the process of placing & closed bank in operation, J.- F. T. O'Connor. Controller of the Currency. | says: “Few people appreciate the intrica- cies involved in opening a closed bank. ! A careful examination must be made of the assets and liabilities: the char- | acter of assets analyzed to establish | liquidity: losses must be determined. When these facts are found. the basis | is laid for reorganization. If the capi- tal surplus and undivided profits are wiped out, the stockholders must con- tribute up to 100 per cent of their holdings. “Efforts are made to revive the old sank or establish a new bank; new capi- tal is furnl.ih!dmg stockholders, positors and in e instances by the Reconstruction Finance Corporation. This corporation operates in three ways: Pirst, by purchase of preferred stock In the new bank; second, by loans to the new bank, and third. by loans to con- servators or receivers upon application of the controller of the currency where a bank must be liquidated and this money made available to depositors.” .. KELLY IMPRISONED, j BUT VOWS T0 ESCAPE Kidnaper Borne to Leavenworth From Oklahoma in Ar- mored Train. By the Associated Press. LEAVENWORTH, Kans., October 14. —George (Machine Gun) Kelly, con- victed kidnaper, today was behind the high walls of Leavenworth Federal Pen- itentiary, from which he declared he would soon escape. The assoclate of Harvey Bailey and Albert Bates, who preceded him to prison with similar life sentences for the $200.000 ransom abduction of Charles F. Urschel, made his boast at Kansas City. In the train yards there the armored, window-barred coach which brought him from Oklahoma City was transferred to another locomotive for the short run to the prison. Nu- merous guards were scattered through the yards and Union Station. It was in front of the Kansas City Union Station that four officers and their convict-prisoner, k Nash, were slain last June 17, as Nash was being transferred from a train to motor car to be returned to Leavenworth. “Don't wotry about me” Kelly told officers. “T'll be out of here before Christmas.” “What Christmas?” asked Harold An- derson, a Federal agent. = e Grandmother Only 32. MARSHFIELD, . (M. — The youngest grandmother in Oregon, so far s is known here, is Mrs. Peter E. Ma- thews of Marshfield. She is just 32. A girl was born this week to her daugh- ter, Mrs. Joe Baker, 18. D. C, SATURDAY, OCTOBER 14 1933 ETECTIVES are shown here with the assortment of guns, knives and blackjacks seized in early moming raids on the headquarters of the “Khaki Shirts of America” after they had been informed that the men were planning to storm a National Guard Armory in Philadelphia to arm themselves for a march on Washington, where they planned to make President Roosevelt the dict. of the country. ~—Wide World Photo. LIQUOR TAX FIXED, BUT NOT GIVEN OUT Recommendations of Advi- sory Group to Be Pre- sented Congress. By the Associated Press. The important question of how much tax should be put on liquor after re- peal of the eighteenth amendment has been decided tentatively by an inter- departmental advisory group working under direction of President Roosevelt. Recommendations of the group are to be presented to Congress when it kes up the matter of liquor taxes and tariffs. The findings of the Adminis- tration Committee bave not been dls- closed. It was saidon behalf of President Roosevelt that & major problem seen by the administration in with repeal was what to do in the period between the possible ratification by the thirty-sixi when Congress enacted legislation. The Treasury yesterday completed its | lar reports, monthly or quarterly. be | election of a permanent Central part of the prohibition report and rec- ommendations. tostated and made ready for submis- sion. All the laws which it would be called upon to administer—taxes, tariffs and industrial regulations—were mobilized into one thick sheaf of documents. Each section of each law was set down separately on a single sheet of paper, at the bottom of which was the DILLON, READ PROBE BROUGHT TO CLOSE AT WORDY SESSION (Continued From First Page.) I think the matter is much more seri- Sus than that end I think that if pub- lic confidence is to be secured, we can- not just dispense with these meetings by exchanging flowers between each other.” Cites Statement. Dilion reminded Couzens of a state- ment the former presented earlier showing that on thre whole investments | and remarked that he took a “pardon- able pride” in the summary. “You can oftentimes do something which externally looks good, and you can exhibit with pride, but sometimes you have to analyze the methods adopted to accomplish that result and you.may not be so proud of the meth- | ods as you are of the accomplishments,” Couzens asserted are in our case” shot back | Dillon. | “I expected you would be." retorted Couzens. “We never expected to penc- trate Wall Street.” I Asks Regular Reports. | In ending his appearance. Dillon re- connection | th State and the time | iterated to the committee recommenda- | tions that full publicity through regu- | required from corporations, as the best | cial practices. “I think Federal legislation to that end would be highly desirable,” he as- serted. The present securities act. Dillon said, is “confusing” to the business man and banker by not clearly de- | fining_responsibility and_liability, ex- | plaining it made “innocent™ persons in FRENCH CONSIDER VIEWS JUSTIFIED Regards Action of Germany as/ Gravest News in 20 Years. —(Continued From First Page) | in Dillon-Read inter®®s had paid well, | man delegate. sent his regrets that he would be unable to participate. Although the American delegates de- clined to comment, it was know they | felt they had conscientiously tried to keep the door open for real negotia- tions with Germany. Many delegates remarked that Italy, 1 known as “Germany’s special friend,” had rallied today to the stand adopted by the three other great powers. the United States, Prance and Great Britain. As the council went into its private session, the lobbies seethed with ani- mated discussion of Germany's bolt, | both from the Disarmament Conference and the League. | Among the items of the agenda of the private Council session the ium | Board. Mr. Wilson was in the lobbies They were to be pho- | way of remedying undesirable finan- | awaiting to be invited into the Council room, since the United States has & right to participate in the election. | Sir John 8imon of Great Britain told i the Steering Committee of the Confer- jence that “the time had passed for glossing over difficulties by vague and optimistic phrases.” Summing up the status of disarma- ment discussions to date, he declared opinion of the department’s experts on | companies responsible for errors BY he wished to give “a friendly exchange whether it would continue should the eighteenth amendment be repealed. or whether they would die automatically. With this, statistics' on stocks of liquor in_ the country and estimates of the total collections the Government might expect from various rates of tax- ation were gathered. In addition to the Treasury, it was revealed that the Tariff Commission, Commerce Department and State De- partment have drawn up similar re- ports. The next task is to correlate these in an effort to determine just what 1s to be recommended to Congress in the event of repeal and to formulate a policy for application in any possible period between repeal and congres- sional action. One particularly baffling problem was described as “the social question” of whether in the imposition of taxes favor should be shown to light wines and beer, and the drinking of distilled spirits discouraged by high rates. PRESIDENT TO DRIVE IN MARYLAND TODAY Ride Will Be Followed by Short Potomac Cruise Tomorrow and Radio Speech. President Roosevelt will taken an automobile drive “somewhere in Mary- | land” this afternoon, it was announced at the White House today. The direc- tion of the President's drive was not disclosed. It is expected he will be accompanied by Mrs. Roosevelt. ‘Tomorrow the President plans to take a ride down the Potomac River, with no particular port in view. The trip probably will be made on the Sequoia. It will just & small family party, it was said. The President will return early in the eveningagnd at 10 o'clock tomorrow night will make an eight-minute ad- dress over two Nation-wide networks in support, of the National Community Chest movement. The President will be introduced over the radio from Cleve- lsnd by Newton D. Baker, former Sec- retary of War. who is chairman of the Mcbilization for Human Needs. e KEENAN IS GUARDED AFTER NEW THREAT Atlantic City Police Assigned to Special Prosecutor—Three Warnings Reoeived. ‘By the Associated Press. ATLANTIC CITY, N. J., October 14. —Local police revealed today how they had been called upon to guard Joseph B. Keenan, special assistant to the United States Attorney QGeneral, after his life had been threatened Dbecause of his successful prosecution of the Urschel kidnapers. Keenan, who came here Thursday by sirplane to address & session of the American Prison Association in con- vention here, told local police he had received threats in three long distance telephone calls and a special delivery letter during the two days he spent in Atlantic City. Two local detectives were assigned as body guards until he left late yesterday afternoon for New York. “It is tnm{‘enm time in my 35 years of experi that I have had to call on police for protection,” police quoted the Cleveland sttorney as saying, prio: to his departure. engineers or accountants. | “There would be an active securities | market now if this matter were cleared up,” Diilon #aid, and answering & query by Couzens, added: “I think any one should be respon- | sible for misrepresentation or mal- | feasance.” Pecora Interposes. Ferdinand Pecora, committee counsel | in charge of the investigation, broke in to hold that “bankers issuing securities should assure themselves in the first | instance of their soundness by complete ! analysis and understanding of the facts, | because it is the primary duty of the bankers to satisfy themselves and to inform the public.” Couch’s name was brought into the committee's record by Pecora in pre- senting & mass of statistical data, deal- ing with the banking. stock and bond operations of Dillon. Read and associ- ates, along with customers in stock pool accoynts. The record showed Couch was loaned $300,000 on January 16, 1928, and that it was listed as unpaid up to December 31, 1931. Committee investigators said they understood it was still unpaid when Dillon, Read answered a ques- tionnaire from the committee this Summer. Collateral Disclosed. Collateral to secure the loan, the record disclosed, included “participation in the Louisana & Arkansas Railway Syndicate,” Couch’s life insurance, and | numerous shares of National Power & | Light and Electric Power & Light. | Hopson, questioned only briefly, told Pecora he was an officer or director in so many corporations he could not give the total without looking it up. When asked about one of them in particular, he said he could not remember what office he held. He was accompsnied by Patrick J. Hurley, former Secretary of War, as counsel. He said he was officer of many of | the subsidiaries of Associated Gas & Electric, numbering about 300, some of which the committee counsel wanted to look into. o Don't Seek to Evade. He said he had not tried to evade the committee. He said when the com- mittee was trying to find him, he was away and had given orders not to disturb him with business affairs. He testified, however, he had called his office almost every day. When he said he had brought com- pany records to Washington, Pecora | asked if they could be sent to New York where his staff does most of its work, but the witness was reluctant to do so. He indicated he had been told to bring the record$ to Washington, but Pecora warmly replied he had told his asso- clates he wanted them in New York. Finally Agrees. “I don’t like to pay the expense of carting them back and forth.” Hopson said. “They are a truckfu A moment lated he added: “These are private records. know why you want to look at them anyway. But they are here and you can bezinle,ooklng at them.” Finally after several conferences with his attorney, Hopson agreed to send the books to New York and promised to co- operate with the committee. T R SENTENCED BY A NOSE DETROIT (#).—"“I read recently,” remarked Judge Thomas M. Cotter to James McCourt, who was before him on a charge of intoxication, “tha good way to tell an inebriate is to have him close his eyes and try to find his nose. Let's see you try it.” “My noseé has been in the same place for confl: dently. 3 By e for 80 da; ys. 1 don't | of views” but felt that he should speak “plainly and frankly.” “A system of agreed disarmament promptly entered into and loyally car- ried out would. I believe. be of the greatest value to the world,” he said, | “but I am equaly clear that nothing is | gained by interminable discussions | which do not face the essential matters on which differences may still exist.” He sald representatives of Great Britain, after meetings with the French. Germans, Italians, Americans and some other powers, led him to be- lieve the draft of the convention pro- iposed by Great Britain “will require tc be in some respects recast.” Eight-Year Period Suggested. He said discussions indicated that | some powers wished that the period of the convention should extend from five | to perhaps eight years. | This period, 8ir John added, shouli be filled with a continuous program designed to secure: “A substantial measure of disarma- | ment actually realized and completed on the part of the heavily-armed pow- ers and, second, the achievement of | the principle of equality in the regime of security which since December has been declared the objective not only of the powers who signed the declara- tion, last December 11, but of the Disarmament " Conference itself.” He emphasized that in order to at- tain this end, it would be necessary to proceed by steps recalled in Sir Arthur Henderson's statement to the’ committee September 10. in which ne said the approach to some of the more MISS PERKINS ASKS - BACKING FORN.R. A Says Boosting of Purchasing Power Is Challenge Facing Nation. By the Associated Press. INDIANAPOLIS, October 14.—Secre- tary Perkins of the De ent of Labor sald in an address Rere last night that American industrialists who develop mass production are now being asked to find & way of developing mass consumption to balance it under N. R. A. codes. The codes are designed, she said, 50 that re-employment and higher wages may provide needed purchasing power for the internal market of the United States. Bpeaking on “the new challenge to industry,” Secretary Perkins predicted that once re-employment and restora- tion of purchasing power has been done on a broad and consistent scale over a period of many months, better times will return. “The purpose of the whole program is not only to improve tonditions of labor, but to improve them because of & recognition that the only way to build an internal market for our mass pro- duction of goods is to build up the purchasing power of the farmers and wage earners,” she sald. “That can be done so far as indus- trial workers are concerned by providing a day short enough to make it necessary to absorb into industry millions of un- employed, and by raising the wage rates of those employed to & point which makes it possible for them to purchase the product of the farmers and the products of other industries. “The challenge to industry today, and to &ll of us for that matter, is to find a way to build up the Furchumg power of the American people to balance our producing power. * * ¢ “Wage earners and farmers make up the bulk of the Nation’s purchasing power. More than two-thirds of the goods disposed of in this country are bought by those whose incomes are less than $2000 a year and the possibilities are almost limitless for further expan- sion of this market if the total volume going to wages is steadily increased. Employment, management and investors will make their income from the in- creased values. “It is the duty of those who have profited by industrial progress and in- genuity to assist those who are thinking of social justicesin providing a method whereby we may prevent another col- lapse in the future.” ANTI-CRIME SESSION TOLD OF POLITICAL LOOTING “RACKET” (Continued From Pirst Page) proved by the people,” he continued. “You have a people minded to sympa- thize with the offender. A verdict of ‘not guilty’ elicits no permanent dis- praise, but may result in praise for the lawyer who brought it about.” For this reason, Judge Kavanagh said, the criminal’s principal ally is the people. The first task to be accom- plished in the campaign against law- lessness, he pointed out, is “to make the American citizen angry at the com- mission of a crime.” The speaker also attacked the mod- ern penal system, asserting that in some States the prisons are “just big club houses “I visite done not long since.” he re- lated, “and found the food to be of the kind and quality one would expect i the best hotels. I saw the prisoners sitting in groups, some playing cards others playing dominoes.” ‘There were about 1400 prisoners in the institution, he said. and 750 radios were distributed among them. Such places of incarceration are so pleasant, he added, that many prisoners, after they are freed. “look back with regret on_their comfortable life in jail.” ‘What the prisons need, according to Judge Kavanagh, who is 74 and has been on the bench 34 years, is & thor- ough overhauling—including removal of the wardens, whom he deScribed as “faddists.” Punishment involving phy- sical pain is the greatest deterrent. he said, and, for this reason, flogging 18 justified. A short time before, the first of the conference’s committees to submit a report had recommended flog- ging for those convicted of “more seri- ous crimes.” Police Politics Scored. Police forces In varlous cities also need reorganization, he declared, add- ing: “A country is in poor shape to defend itself against the enemy when it has, in time of war, a force that is outnumbered by the enemy—a force that is undisciplined, underpaid and inefficient, and a considerable part of it in traitorous communication with the foe.” About the best thing that could be done to help restore police efficiency, he suggested, is “to divorce it com- pletely from politics.” Rules of criminal procedure also came in for severe criticism by the judge, who described the case of a murderer who was acquitted because his attorney was “too clever” to let him testify on his own behalf. If the slayer had been compelled to take the stand, Judge vanagh pointed out, the prosecutor would have questioned him regarding his criminal record, bringing out the fact he had served penitentiary sentences before, The prosecutor also would have wanted to know why the killer was carrying a imlrorum questions “‘manifestly was influenced by the present unsettled state of Europe and the ensuing dis- trusts and fears and alarms.” Need for Changes Stressed. Sir John pointed out the current un- settled state of Europe as being a fact and emphasized the need for modifyirg the draft of the convention “so that the accomplished purpose by a process of evolution is clearly established. A scheme is emerging, he said, for a consideration of the result of the ex- changes of views on the proposed eight- year convention period to begin with the transformation of continenial armies along the lines of the British draft of the convention. ‘This would be accomplished, Sir John explained, by the establishment through the medium of a permanent disarma- ment commission of an adequate sys- tem of supervision “so that the sense of security which is due to the ob- servance of the convention will afford what should provide a groundwork for the practical attainment of the twin ideas of disarmament equality.” FLIGHT RECORD SET Kingsford-Smith Arrives at Syd- ney, Australia. SYDNEY, Australia, October 14 (). —An enthusiastic of thousands ave Wing Comdr. Sir Charles Kings- ord-Smith & tumultuous greeting when | he arrived here late completing the notable flight on which he estab- ushzdm & new England-to-Australia & \ at Wyndham, Australia, Tue having flown from Engl elapsed time of 7 days, 4 minutes. Noted Engineer Dies. KENORA, Ontario, October 14 (#).— | Joseph Paul Bains, 52, an engineer of note who had directed many major nada and the United in the hours and 44 was born in Pl to Candda mf!ls. f gun at the time of the shooting, the Jurist said. “A lot of questions like that might be asked,” he continued, “but our law is too merciful to require a murderer to tell what he knows. And, mind you, it is the law of the State of Illinois— it is the foolish, absurd law of nearly everv State—that if the judge, by acci- dent, should mention that the man who, above all men could explain and give defense if there were deferise, had not dared to go on the stand, if the proses cuting attorney should, by accident, allude to this, the defendant would get & new trial.” Prof. Prank L. Sampson of the Boston University Law School, spoke in defense of criminal lawyers, some of whom had been severely criticized at earlier ses- slons. As chairman of: his State’s Special Crime Commission, he declared, he recently made a three-month study and found the entire law enforcement system inadequate. Corruption is wide~ spread among police officials, prosecut- ing attorneys and judges, he asserted, and the general feeling is that “any- thing can be fixed.” Education Plea Made. ‘The only other speaker was Miss Bes- sie Locke, executive secretary of the National Kindergarten Association, who pleaded for early training of children as a crime preventive. Mrs. Oliver Harri~ man of New York, vice chairman of the National Council of *76, which, with the United States Flag Association, ar- ranged the conference, presided. Speakers at the afternoon and morn- ing sessions were Senator Copeland of New York, chairman of the Senate com- mittee investigating racketeering; Rep- resentative Sumners of Texas, chairman resident of the American ey Bar Asso 3 R Kidnaper Death Law Signed. AUSTIN, Tex., October 14 () —Gov. Miriam A Fergison last nisht. signod ; bill ‘:Akln‘ pln.'?e capital n}!; Heretotore, the liw . thie. Brate s