Evening Star Newspaper, October 17, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair, colder tonight; tomorrow partly cloudy; moderate west win_t,!:. , &% lowest, 63, at 6:00 am. ‘Temperatures—Highest, p.m. yesterday; today. Full report on page B-5. Closing N. Y. Markets, Pages13,14&15 No. 32,676. C. T Entered as second class matter post office, Washington, D. ¢ Foenin ‘WITH SUNDAY MORNING EDITION o Star WASHINGTON, ‘D. C, TUESDAY, OCTOBER 17, 1933—THIRTY-EIGHT PAGES. DALADIER SCORES REICH FOR DEPARTING LEAGUE; HITLERITES STAN ® f Questions Good Faith of Hitler. DEPUTIES TENSE AS HE SPEAKS Action Just When‘i Plan Was Ready Assailed. By the Associated Press. PARIS, October 17.—Premier | Edouard Daladier, calm but grim, | today answered Chancellor Adolf | Hitler of Germany by questioning | the Reich’s reasons for withdraw- ing from the Disarmament Con-| ference. 3 The premier arose in a tense crowded Chamber of Deputies and slowly demanded from the ros- trum: “If Germany is ready to de- stroy all armaments, why do they withdraw from the conference just when we drafted a plan?” | The premier was so preoccupied | that by mistake he took the stairs | leading to the President’s higher fesk. The Chamber laughed at this, relieving the strain. Ready to Talk Arms. M Daladier talked back to Hitler in | his very opening phrase. | He referred to “the grave events of | the past days, Germany's withdrawal from the League of Nations and Ger- | many’s withdrawal from the Arms Con- ference,” and then announced that France again was ready to talk dis- armament at Geneva October 26. The premier told the Chamber the government would make the economic plan a matter of confidence. Replying to the German chancellor, | the premier said: “We are not deaf to any proposals, but neither are we blind to any act. “If one seeks an agreement, Why begin with a rupture? Why not accept | an honest disarmament plan? | “If Germany is ready to destroy her ! arms down to the last rifie and to| the last machine gun, why not accept a plan which could assure an effective | disarmament?” | The premier continued: “France is | resolved to give an example of calm- ness and coolness, the more so becfiusel she knows she is able to defend her territory and her liberty.” Daladier’s Position Strengthened. | An ill wind in the eyes of many men and nations, Germany's withdrawal from the League and the Arms Con- | ference nevertheless may go down as the one that blew Premier Daladier a lot of good. That's how political observers were | disposed to look at it today. ‘Almost overnight, motivated by a “rally-'round-the-flag” spirit, born of | public reaction to German's stand. the Daladier government found itself more | nearly secure than it had felt in months | Hence, instead of going into congress | with a desperate fight for support on | his hands, the premier glowed at the| swiftly moving developments which found him in a much strengthened po- | sition. | ‘As he prepared to deliver the present program before the Chamber of Depu: ties, therefore, he could reflect con- | siderably increased optimism in regard | to his proposed legislation to: Balance the budget, put the franc on a sound basis and lower living costs | —a program on which the premier had announced he'd stake the life of his| government. HITLER CALI PARLEYS. Summons Nazi Leaders for Series of Talks on Policy. BERLIN, October 17 (#)—Chancel- | Jor Adolf Hitler summoned important Nazi leaders for a series of conferences today at which they will lay a policy | for the coming weeks. District chiefs, the heads of propa- ganda departments and floor leaders of all Nazi state diet factions as well as| the 10 most prominent Nazis in each district will participate. MOVE CALLED “ILL-JUDGED.” Neville Chamberlain Regrets German | Withdrawal From League. 1 NOTTINGHAM, England, October 17 | (®).—Germany's withdrawal from the World Disarmament Conference and the League of Nations was “precipitate and ill-judged,” in the opinion of | Neville Chamberlain. i Nevertheless, added Chamberlain, British chancellor of the Exchequer, *no news is ever so good or so bad @s it seems at first * * * " That, he told a cheering throng here, was to be his attitude toward the mat- ter until he could gain time to give it “most deliberate consideration.” sSaying ‘“nothing could have con- tributed more” to a restoration of inter- national trade than “adoption of a dis- armament convention such as that pro- .” he declared: “We must, therefore, deeply regret the action of the German government last Saturday.” REPLIES TO VON VN'EUBA’I'H. Simon Denies Inaccuracy in Reporting Germany's Stand. LONDON, October 17 (#).—Sir John Simon, British foreign secretary, ar- rived home today from Geneva with the declaration that he “should indeed be sorry if there were any difference on & matter of fact with Baron von Neu- rath.” (This statement was in reference to the speech yesterday of Konstantin von Neurath, German foreign minister, in which he charged Great Britain with ting Germany's arms stand.) “My fellow ccuntrymen,” Sir John (Continued on Page 5, Column 1) Scores Germany PREMIER DALADIER. HANDS-OFF POLICY IN EUROPE URGED Citizens Wire and Write President, Some Even Ask- ing Recall of Davis. BY CONSTANTINE BROWN. Batches of telegrams from all parts of the country have been received at the White House since Sunday, protest- ing against any inmixture of the United States in European affairs. The news that Ambassador Norman Arms Conference might entangle us in the European imbroglie, arouses hun- dreds of thousands of Americans who expressed forcefully their opinion by wiring and writing direct to President Roosevelt. Some Urge Davis® Recall Some of the writers urged the recall of Ambassador Davis; others merely drew the President's attention to the fact that the American people did not care to get mixed up with nations which have not found it necessary to honor their debts to the United States. A number of the telegrams and letters pointed out the fact that at the very moment when allegedly promising American support to the former allies at Geneva, the British debt delegation was doing its utmost to chisel as much as possible of the billions that country owed the American people for the last | war. 1t was partially under the influence of that avalanche of wires and letters that the President decided that it would be wise for the American Ambassador at large at Geneva to restate in un- equivocal language the position of this administration regarding European affairs which has been defined by the | President as one of a good neighbor, but with no entanglements. Davis to Remain Neutral. After Mr. Davis’ statement last night in Geneva, the impression which has been created in Europe since last Sat- urday that America would stand by the other European powers to help them work out their political difficulties, has been completely dispelled. Mr. Davis intends to remain on the shores of the Lake of Geneva while, the other powers are preparing to hold a political conference somewhere else. He will stand by as an observer, ready to bring in his optimistic personality | any time after that conference termi- nates successfully and the Disarmament Conference can be resumed in a clearer atmosphere. But, until then, he will maintain an attitude of strict neu- trality. — GRAF SETS RECORD Flight to Brazil Made in 72 Hours | and 40 Minutes. PERNAMBUCO, Brazl, October 17 (P)—The Graf Zeppelin arrived here {at 8:10 am. today, setting a record of 72 hours and 40 minutes from Fried- richshafen, Germany. A capacity load of passengers was carried, The Zep- pelin will leave tomorrow for Rio De Janeiro where a start will be made Thursday on a flight to Chicago. , QRemain Calm in Face of Criticism. AIM TO ABIDE N BY TREATIES| ™\\\} Kellogg, ‘Locarno Pact Adherence Indicated. By Radio to The Btar. BERLIN, Germany, October 17.—Germany stood its ground today as international opinion hardened against the Reich fol- lowing the disarmament deadlock. Waves of comment in Paris, France; Geneva, Switzerland, and London, England, are lashing Eu- ropean politics into a froth, but Berlin is calm. Three main developments seem to be indicated today. They are: 1. Germany intends to abide by the Briand-Kellogg peace pact, the Locarno treaty and the four- power pact. None of these instru- ments has been denounced. It is true the Locarno treaty only came into effect when Germany en- tered the League of Nations, but Germany’s withdrawal from the League now does not invalidate BYJINS, | $OMEBODY 'S NG To ?(EEL T FIRM |+ R W \ N Virtually District Group Hospitalization |[:KES S[[KS [}URB Assured at Low Cost 75 Cents Per Month May Be All Requiredi to Underwrite Su bscriber-Patient’s Care Three Weeks in Year. Group hospitalization for Washing- ton is virtually assured. according to | it, according to legal opinion here. Joseph H. Himes, chairman of the Com- | The Locarno treaty pledges | Great Britain to come to Ger- | many’s aid in case of invasion by France. Similarly the four-power ‘H, Davis' efforts at Geneva to save the | pact is valid and outside the | framework of the League. 2. In a speech to the foreign press last night, German foreign minister, Baron Constantin von Neurath, went even further than his chancellor, Adolf Hitler, and propaganda minister, Dr. Paul Joseph Goebbels, in hinting that Germany would take independent meas- ures in order to achieve equality of arms rights. > No Notice Sent League. | 8. Not yet has Germany sent official | notice to Geneva of its withdrawal from | the League. This is curlous in view of the extreme promptitude with which i notice was given to Arthur Henderson, its president, of withdrawal from the Disarmament Conference. The message of formal resignation from the League | may come at any moment, but no ex- | planation is given here for the delay | except the statement that the matter | of an official notice is not important. It is Roted, too, that Germany's with- |drawal from the League can only Juridically take place after two years. Practically this does not mean much if Germany quits. But Germany has two long years, it should not be for- gotten, in which it might at any time rescind its original withdrawal. From the viewpoint of domestic politics, Hitler’s challenge to the rest of Europe continues to be regarded both as a necessity and as a triumph. The Nazis can do anything they want to do within Germany. But they curiously lack success in foreign policy. Now they have it, in German eyes. Moreover, by acting when he did, Hitler snatched “victory” from the very jaws of defeat. Instead of being snubbed by Geneva, Hitler chose to snub the | rest of the world. This serves to in- crease the domestic prestige of the Nazis at a time when they need prestige very badly. Talk of Monarchist Sentiment. Some big steps in international affairs are becoming imperative to rally the | enthusiasm of the government's follow- jers and to deflect attention from in- ternal difficulties. There is some talk in inside circles that the Nazis were hustled into their international bomb- shell by allegedly growing monarchist " (Continued on Page 5, Column 7.) EEme e | CITES PEACE GUARANTEE Swanson Holds “Treaty Navy Sec- ond to None” Is Insurance. BREMERTON, Wash,, October 17 (#).—The United States’ best guarantee of peace, in the opinion of Claude A. Swanson, Secretary of the Navy, “is a treaty Navy second to none.” Secretary inspected the Puget Navy Yard yesterday. The Sound GERMANS WARNED, AS TWO ARE SENTENCED FOR ASSAULT By the Assoclated Press. BERLIN, Octcber 17.—The Prussian ministry of the interior today renewed its strict instructions for German citl- zens to abstain from molesting for- eigners. The orders came a short time after two storm troopers who assaulted Ro- land Velz, a native of Meriden, Conn., when he failed to salute the Nazi em- blem, were sentenced to six months.in jall on charges of assault and battery. | The hearing was held in a so-called speed court. .3 “Foreign citizens must in every way possible be given public protection.” said the interior minister's instruction. “Should police intervention be neces- sary, special tact, cautiousness and courtesy must be used.” Hold Hospitality Is Sacred. The ministry also instructed au- thorities throughout the Reich to make contact with the local Nazi party and the leaders of the storm troops and steel helmets to impress upon them and the membership that it is the self- evident duty of the true Nazi to re- gard hospitality as sacred. The communique asserted the mo- lestations of the foreigners was due to Marxist and Communist provocateurs. State’s Attorney von Haacke of the ministry of justice acted as prosecutor. the six months penalty and the court agreed. “Well, that's getting action,” happily exclaimed a high American embassy official on learning of the verdict. The official, who was intimately ac- great progress. point in the treatment of as- sailants of foreigners. Both Were Storm Troopers. “The cour} acted speedily and sternly, a storm trooper.” However, it developed that both as- sailants were storm troopers—Paul Eckardt, by ession & glass blower, and Fried Wi a chauffeur. Both testified they were greatly ex- cited when according to their ideas Velz acted as though he had contempt for the swastika, the Nazi flag. In connection with the case, it was considered noteworthy that both Pre- siding Justice Koch and the prosecut- ing attorney are men who from Pre- vious discussions with Americans fully understand the gravity of Secretary of State Hull's apprehensions. (Secretary Hull through the Amer- ican embassy here recently called at- tention of the German foreign office to molestations of Americans and urged prosecution.) In placing the case in the hands of these men government apparently e amserian withes for punisbument m T or of assaflants. | | | Toll. i | mittee on Group Hospitalization, who. announced today that nine hospitals | had formally accepted the plan. These are Central Dispensary and | Emergency Hospital, Columbia Hospital for Women, Episcopal Eye, Ear and Throat Hospital, Garfield Memorial Hospital, George Washington University Hospital, Georgetown University Hos- pital, National Homeopathic Hospital, Providence Hospital and Sibley Memo- rial Hospital. Mr. Himes expects group hospitaliza- tion to be put into operation about De- cember 1. In the meantime. a repre- sentative comanittee of hospital officials, physicians and loyers will be incor- | ments for putting the plan into effect. porated and make definite arrange- Under the plan, all employed persons subscribing a sum, perhaps as low as 75 cents a month, would be entitled to three weeks' care in any of the hos- pitals co-operating in the movement. Group hospitalization, Mr. Himesl explained, is designed for the em- ployed group, the so-called middle | class, which cannot or does not main- tain a budget for hospital expenses. | The plan is fundamentally an insur- | ance for hospital care. The corporation to be set up to op- erate the plan will be non-profit mak- ing. It will be composed of a commit- tee of nine, including Mr. Himes, who expects to name the other eight mem- bers before the end of the week. One of the members, Mr. Himes said, will be closely associated with the hos- pitals, another will be one who is iden- ed on Page 2, Column 5.) (Cont! PRESIDENT URGED 10 AID EX-WORKERS, Reinstatement .League Asks Dismissed Employes Be Given Preference. President Roosevelt today was peti-| tioned by the Civil Service Reinstate- | ment League to force compliance with his instructions that dismissed or fur- loughed Federal employes with Civil| Service status be given preference in| filling new positions in the Federal | agencies. This petition was brought to the White House by a delegation represent- ing the league headed by Shelley Kras- now. The others in the delegation were Elise H. Snider and Eleanor Nelson. Did Not See President. The delegation did not see the Presi- dent himself, but explained the pur- poses of the league to Marvin H. Mc-} Intyre, one of the President’s secre- taries, and left the petition with nim to be turned over to the President. After declaring the President's in- structions that dismissed or furloughed employes with Civil Service status be given preference in filling positions were not being carried out by the employment offices in the various de ents and agencies, the petition declared that the Federal Government has “disobeyed both the letter and spirit of its own economy act, by the dismissal of em- ployes, by maintaining in certain cases t00 low scale of wages, in other cases by allowing employes to work overtime in- stead of employing new ones.” Urge Written Orders. In conclusion, the petition urged the President to issue a written executive order to all Federal agencies instructing them to give preference to former em- ployes with Civil Service status. “This is requested,” the petition set 15 | forth, “as a first step toward the rein- statement of all dismissed Civil Ser- vice employes and toward making the! ‘new deal’ an actuality to your own em- ployes by returning them to the pay 1t was stated also In the petition that even though one of the assailants was | there was “a woeful lack of statistics™ concerning what has been done in the matter of dismissals, furloughs and re- employment since the enforcement of the economy act. After assuring the delegation the pe- tition would be given careful attention, Secretary McIntyre ted that the delegation return to ‘White House within a few days for an answer. Guide for Readers Amusements Comics Features Financial . Serial Story . ports .. Radio | PROTECTORS AWAIT SEN'I'ENCE. MRS, KELLY OFFERS §15,000 FOR ESCAPE Jailer Declares She Promised Sum if He Would Permit Her to Go Free. By the Associated Press. OKLAHOMA CITY, October 17.—| County Jailer E. E. Herron said today that Kathryn Kelly promised him | $15000 if he would permit her to| escape late yesterday just before she| was taken from the jall to a train en! route to Federal prison. Herron| promptly rejected the offer. “Let me call a number, take me a block away and a man will pay you $15,000,” he sald Mrs. Kelly offered. Cass Coleman Pleads Guilty and Testi- fies Against Will Casey. SAN ANGELO, Tex.. October 17 (#).— Cass Coleman and Will Casey, cotton farmers, today awaited sentencing by Federal Judge William H. Atwell for harboring George (Machine Gun) Kelly and his wife, Kathryn, convicted kidnapers of Charles F. Urschel. Coleman pleaded guilty and testified for the Government against Casey, who was convicted last night within an hour after the jury received the case. ‘The maximum penalty possible would be two years' imprisonment and a fine of $10,000. Government agents dug up $73,250 of the Urschel $200,000 ransom in s cotton fleld on Coleman’s farm. Cole- man claimed he helped Kelly bury the money only because of fear for his life. MRS. SHANNON IMPRISONED. Taken to: Shelby County Farm, While Baughter is Sent Elsewhere. MEMPHIS, Tenn., October 17 (#).— Mrs. R. G. Shannen and Kathryn Kelly, both under life sentence for the Charles F. Urschel kidnaping. arrived here in custody of Federal officers to- day. Mrs. Shannon was taken imme- diately to the Shelby County Penal Farm where she will be held as a Gov- ernment prisoner. ‘The two women arrived on a train from Oklahoma City shortly before 7 am., as one group of officers escorted Mrs. Shannon to the penal farm here, another group took Mrs. Kelly to a second station where they boarded a train, presumably for Cincinnati. Mrs. Kelly cried at the station as she was separated from her mother. At the Shelby Prison Farm it was said Mrs. Shannon likely will be as- signed to the sew! room. Prisoners at the in- ng make all the clothes worn stitution. Mrs. Kelly's stopover here was her second visit to Memphis recently. She and her husband, George (Machine Gun) Kelly, were captured in & bunga- low hideout here, September 26. Bomb Fires Man’s Shoes. PHILADELPHIA, October 17 (#).— Bombs hurled through a window of a cleaning and establishment in South Pmiladelphia today set fire to the :Il;ce and burned Louis Stein, a 50 severely he required hos- | gram by . Police said the bomb, construction, released acid ON OUTPUTOFOL Will Curtail Shipments States Where Specified Cuts Are Not Made. in By the Associated Press. Secretary Ickes also said he would act November 1 to stop oil overproduc- tion by curtailing shipments from those States which have not cut pro- duction to the amounts allocated. In a statement released at his press conference, he said he would move under the powers granted him by the oll code to “prevent disruption of the program by a small majority of the industry which has not reduced pro- duction sufficiently.” The action was taken as part of the Secretary's pro- gram to perfect the price structure an- nounced yesterday. “Immediate steps will be taken to ad- just current crude production to the allowables effective September 8 and October 1,” the Secretary said. Should Be Adjusted Now. “Sufficient time has elapsed for the industry to adjust itself to the new rate of operations and full consideration has been given to the difficuties of conform- ing promptly with the prescribed allo- cations. “A proper balance of supply and de- mand is essential to stabilization of the petroleum industry under the oil code.” “The industry and the public expect production allowables to be rigidly en- forced and I shall take every step nec- essary to that end,” Ickes declared. “I am confident that a vast majority of the units in the industry as well as all State regulatory bodies, will co- operate fully in this effort. Will Cut Shipments. “To prevent a disruption of the pro- a small majority. the an- nouncement is made now that on No- vember 1, 1933, the authority vested in me to curtail shipments in interstate commerce will be exercised with re- spect to such States as have not cut ac- tual production since September 8 down to the permissable quotas. “T should regret the necessity for tak- ing this step, but I deem it essential to preserve the stability of the industry as a whole. and to safeguard the rights of those States and those producers who have complied with the allocations. “The several State regulatory bodies that assign quotas to the respective fields. leases and companies have the power to control offending units. “I hope they will take immediate ac- tion against those who are producing in excess of their local quotas in order to prevent production from exceeding the State quotas.” Price Schedule Fixed. An elaborate schedule of minimum oil prices today launched the Govern- ment on its first N. R. A. price-fixing effort. Secretary Ickes, oil administrator, ordered the minimum levels which be- come effective December 1. - Some oil sources immediately forecast gasoline prices one to two cents higher. In approving the recommendations of the industry’s Planning and Co-ordina- tion Committee, Ickes said “competitive abuses have created an emergency which threatens the stability of the interstate market for petroleum and the products thereof.” He added: “Their continuance and further spread wiil make it impossible to fulfill the pur- poses of the N. R. A. and the code of fair competition for the petroleum in- dustry.” ‘Will Hear Objectors. Ickes saild objectors will be given & hearing, The base level for 36 gravity mid- continent crude, in which class falls the bulk of the domestic production, was set at $1.11 a barrel, while the prices F¥» The only evening paper . in Washington with Augcilted Press news service. Yesterday’s Circulation, 116,308 (P) Means Associated 620000 WORKERS RETURNED 7O J0BS DURING SEPTEMBER 17 Industrial and Business Groups Report Increases to Labor Bureau. MANUFACTURING PLANTS HIRE 200,000 OF NUMBER Gains in Pay Rolls in Groups Sur- veyed Indicate $10,000,000 Jump Over August. ‘The Labor Department reported today that more than 620,000 workers returned to their jobs during September in the 17 industrial and business groups re- porting to its Bureau of Labor Sta- tistics. Secretary Perkins said more than 200.000 workers found employment in manufacturing industries and-a slightly larger number in retail establishments. ‘The seasonal increase in canning ac- counted for 70,000. Gains in the wholesale trade were shown. Building construction industries indi- cated more than 20,000 workers were added. | The employment increase in Sep- tember was 3.2 over August, with an index of 739. In September, 1932, the index was 585, which was an in- crease of 4.5 per cent over the pre- vious month. “This increase in employment of nearly two-thirds of a million per- sons,” said Miss Perkins, “does not represent the total number of persons who were returned to employment in all branches of industry. Railroads Show Increases. “The industries surveyed each month by the Bureau of Labor Statistics nor- mally employ about 20,000,000 of the 49,000,000 of gainful workers of the country. “Reports of the Interstate Commerce Commission show an increase of 16,000 workers on class 1 railroads between August and September. Data available for public road con- struction show a gain of approximately 35,000 workers between the last day of August and the last day of September and agriculture normally employs more ‘workers in September than in August. “Only a very small portion of the more than $300,000,000 which has been let in contracts by the Public Works | Administration _to _date had _been (Continued on Page 2, Column 3) TRANSIT C0. PLANS ‘FREE TRANSFERS Hanna Promises System Em- bracing All Points in District. A universal free transfer system, by |wh1ch any rider may travel the ve- | hicles of the Capital Transit Co. from | any point in the District to any other | point, was promised by President John | H. Hanna today “as a measure of our intent” in the figst statement of policy of the new company which will go into operation December 1. Mr. Hanna's statement came at the opening meeting of the Advertising Club of Washington, which had as its guests the Board of Directors and officers of the new company and a large array of District government officials. He said the pla nhad been tentatively discussed with the Public Utilitles Com- mission this morning. The only limita- tions which will be placed on the trans- fer, he said, were that it should be good for only an hour or an hour and a half after issuance, and that it should not be good for a return journey back to the point of origin. New Equipment Planned. Mr. Hanna said that the company limited its announcement of plans to those which it knows definitely it will put into practice, so as not to make any promises to the public which it may not be able to keep. Other plans, now under considera- tion, he listed as purchase of new equipment, rerouting of lines, and ex- lneflmem.s with zone fares or lower fares for limited periods of the day. On none of these points, however, he said, have studies progressed to the point where a definite announcement ‘can be made. Purchase of new street cars cannot be expected for about a year, he said. That is because of ex- periments in developing a new type of car, on which the industry has spent already approximately $500,000, will take that much longer. No experiments with zone or other cut-rate fares will be tried until the company is satisfied that it will not entail a financial sacri- fice. he warned. ‘The merged company, he said, will have between 2,500 and 3,000 employes. “We_propose,” he added, “to continue (Continued on Page 2, Column 7.) RATEENERTESNITNINERESARAAT! Exciting People! “Bargain (Continued on Page 2, Column 3.) RRENINEREEENRNSESTETRIRTRLEY; Exciting Story! in Love” BY JANE DIXON Begins in Tomorrow's Star H . illlll mmlunwuum; ¥ ~ « fk TWO CENTS. QUIZ SHOWS WIGGIN GETS $100000 YEAR ALTHOUGH RETIRED Former Chase. National Bank Chairman Questioned for More Than Hour. Press. VOTED LARGE ANNUITY FOR PREVIOUS WORK Pecora Begins Issuing Subpoenas for Members of New York Stock Exchange. By the Associated Press. Evidence that Albert H. Wiggin, former chairman of the Chase National Bank, is paid $100,000 a year as & retired officer was submitted today to Senate investigators. The banker agreed that before he retired last January the Executive Committee voted him an annual salary of $100,000 for life. Questioning by Ferdinand Pecora, as counsel for the inquiry, reached this phase after an hour of testimony that developed foundation for the long- pending inquiry into the powerful bank and its affiliate, the Chase Securities Corporation. Wiggin testified he owned 67,000 shares of the bank stock in May and his entire family holding, inciuding his own, was 117,000 shares. Read Without Comment. The pension resolution was read into the record by Pecora without comment from members of the committee. The banker slowly stroked his chin with his right hand as the counsel read documents asserting the money would be paid “to discharge in some measure the obligation of the bank” to him. The resolution also said that in re- turn Wiggin would always be available to supply advice to the bank officers. Responding readily to questions in the Senate caucus room, the banker had recounted the growth of the bank’s de- posits from $54,000,000 in 1904 to $2,~ 000,000,000 in 1930. 9 e identified John D. Rockefeller, ir. as the largest stockholder, but did not dl.spc:ose hi; boldings. s cora brought out through Wiggin that the affiliate corpomtm%gn}ud in 1917—did not issue securities until it “yielded to the times” in 1928. 5 Per Cent Default. Of the more than $6,000,000,000 securities handied, the witness said, La pe;cer;uge of -default was 5.68. lew years ago stock certifical in the Chase Bank and the Ch.lllt? Securities Corporation were made of a slnsgele tx:’iececot paper. nator Couzens. Republican, of Michigan, asserted the organization of the securities corporation permitted the bank to buy stock ownership of corporations which it could not do die "ty e created the device,” he said. T'm not charging that you did. b’\‘xic you could indirectly, through the secur- ities corporation, control a corporation which the bank could not do directly.” po?nlggwhfle bfhnrman Fletcher ap- a subcommittee v R;w% loans. b et letcher said the appointment of committee was authoefid by l:heo s:g: ate at the last session and had no par- ticular significance at this time. Members of the subcommittee, of which Fletcher will be chairman, are rsleg;w:sn dAd;m.s, D;mocrn. of Colo- 3 'ownsend, Republ Delaware, and Couzens. EusioatrR oL Larger Audience Present. Despite heavy rain, reports of impor= tant testimony drew a larger ludiepx?tr:l than has attended any of the Fall hear- :x;g‘xfil:)ur ::le cal:’cusmmom was far from as it was dur orga: i, g the J. P. M n Among those attending was Josepl P. Tumulty, formerly mrgtary to Pr!six: dent Wilson, but he soon leff. Only one or two women were in the crowd. Before the hearing started Pecora said he had directed his New York staff to serve subpoenas at once on six or seven of the most active members of the New York Exchange to compel them to furnish their records. He planned to announce the names after being notified the subpoenas had been served. action was taken, Pecora said, :}s‘.;gnfull g{ xlthe refusal of the 8x- e to submit a questionnair him to its members. i In time, he said, subpoenas would be served on all the 1,375 exchange members. Wiggin Outlines Career. Wiggin began his testimony by say- ing he had retired as an officer %f fi{c bank last January. With permission, he briefly outlined his career from notes on a small sheet of paper. Assuming responsibility for direction of the bank, Wiggin said, “we made mistakes,” but added, “We can't look 933 with the eves of 1929.” 'm still confident our policy in 1930 and 1931, when we weren't so cruel as (Continued on Page 3, Column 5.) LOAN TO MANCHURIAN RAILWAY IS DENIED Authoritative French Source Brands Reports of Billion-Franc Ad- vance as Absurd. By the Associated Press. TOKIO, October 17.—An authorita- tive French source close to the negotia- tions today pronounced reports that tha Association Nationale d’Expansion Eco« nomique of Paris had loaned 1,000,000,« 000 francs to the South Manchurian Railway as absurd. A representative of the association is now in Manchuria investigating markets and investment ties, but thus far no results have been announced. (An announcement in Tokio July 39 said & Pranco-Japanese association had been formed to make investments in the new state of Manchukuo.) Tokio Denies Loan. DAIREN, Manchuria, October 17