Evening Star Newspaper, October 28, 1933, Page 2

A—2 %% COLLUGION ON RAIL PRICES CHARGED Eastman Calls for Cost Data or Lower Rate in Loan Warning. (Continued From First Page.) gaid counsel for the corporation had advised that the steel code would be violated if a price were quoted that was not in accordance with the base price list filed with the American Iron and Stecl Institute under the steel code. | Irvin's letter said he had authorized | the company's various subsidiaries to file with the code authority a base Dl’lCt" of $37.75 per gross ton of 2,240 pounds, | f.0b. mill, Chicago, Pittsburgh and Bir- mingham Block wrote Eastman that prices had | becn filed with the American Iron and | 30 as | for No. 2 uality only, $36.75. Roeder telegraphed Eastman ©f $37.75 per gross ton, effective October 30. had been filed with the American Iron and Steel Institute. Bethlehem's Schedule, | Paul Mackall, vice president of the Bethiehem Steel Co. gave Eastman a sche of prices ranging from $37.75 for first quality steel, $35.75 for second quality and $38.75 if all second quality steel were ordered. All of the letters and telegrams were | dated Cctober 20. | Eastman in a letter to the presidents and chairmen of the steel companies noted the uniform date and the fact that the letters stated prices would be- come effective October 30 and had been filed with the American Iron and Steel Institute. The co-ordinator also noted that only the letter from the Bethlehem Steel Co. contains a full statement of the new base prices adding that “it is ap- parent that the identity with respect to the price for first quality rails will exist as to other prices also.” Common Date Cited. Eastman charged in his letter: “The fact that these letters bear a common date; that they name an identical price for first quality rail, | 1. 0. b, mill, and this price is the odd figure of $37.75 point unmistakably to the conclusion that the letters were the Tesult of consultation and collusion. In my letter of October 3 I stated: “‘As you krnow it was the under- standing at the President’s Conference that base prices would be submitted in response to my request by the steel companies independently of each other and without collusion or consultation.’ “Clearly what has been done Is not in accord with this understanding. Moreover there is nothing in the code of fair competition which made neces- sary such a deviation from the under- standing. In confirmation of this statement it noted that the letter from the United States Steel Corporation coacludes with the following sentence: “‘If any of our competitors file a lower price than the above we will, of course, refile to meet their price.” | “Because of the evident consultation and collusion in arriving at the new and uniform base’ prices it seems clear that these are non-competitive prices, lacking the safeguard to the consumer which competition provides. Manifestly, also, the code was not intended to :sliminate competition. On the contrary, it is. by its own terms, ‘a code of fair competition.’ Safeguard to Be Taken. “In view of these circumstances and of the past history of steel rail prices in this country and what is known about them, I am authorized by the President to say that the Federal Government is unwilling to lend inoney to railroad companies for the purchase of steel rails at the new base prices which have been filed without some safeguard to the consumer and to the public inter- est to take the place of competition. ‘This substitute safeguard is an exami- nztion by Government accountants of th> books and cost records of the steel | companies. “Under the existing conditions and to avoid possible delay, the Government is willing to lend the necessary fund with- | out such examination, provided the base | price, f.ob. mill for first-quality steel rail (500 G. T. or over) is made not more than $35 per gross ton of 2,240 pounds with other prices adjusted ac- cordingly. 2 “If the steel companies are unwill- ing to make this concession, then the Government will lend the necessary funds only on condition that the steel companies shall fle new base prices the same as those now on file but with the added stipulation that if after Gov- ernment accountants have had full and free opportunity to examine the books and cost records of the steel companies the President shall find that reduc- tions in these prices are necessary make them fair the reduced price which he then names shall be the base prices to the same extent and from the same date as if they had been originally ed. Up to President’s Judgment. “In the meantime the Government will advance funds to the railroad com- panies on the basis of a price of $35 per gross ton for first quality steel rail, 1. 0. b. mill, with other prices related in the ratio of the base prices now on file and with the understanding that the Government will later advance ad- a price I ditional funds or receive refunds to ac- | the cord with such other prices not in ex- cess of those now on file, as the Presi- | dent may find to be fair. In the absence ! of a full disclosure of the facts it is' impossible to define in advance and in the abstract what may be fair, and this must be left to the judgment of the President. | “In the letter from the Bethlehem | Steel Co. reference is made to section 9 | of schedule E of the code of fair com- petition. The pertinent part of this sec- tion is as follows: “‘Except in the case of a product required by a purchaser for a specified definite contract of such purchaser with a third party at a fixed price none of the members of the code shall make any contract of sale of any product by the | What's What Behind News in Capital. Indians of Tammany Reported Scalping Mayor O’Brien. BY PAUL MALLON. HE Tammany Indians are folding up their wigwams and silently slipping out on Mayor O'Brien. Most are stealing into the a little ptronage if the independent Democrat wins. But the startling thing is that these ative Wall Street support of McKee, may not be enougn to put him over, At least thct is the striking sum- mary of the inside situation brought to the inner circle here by one cj the most astute politicians who ever phenagled an elect on. ntial report indicates the This_confide: foxy Fiorello La Guardia worked out !a winning strategy before McKee got into the race. Pledged Many Leaders. Apparently La Guardia circularized all the loose politicians and received promises of support. These were made public before Gen. Farley brought Mc- Kee out. There is one thing a politician can- not do and that is desert a man he has publicly agreed to support. he is marked for life. No one would trust him thereafter. Even Farley's prestige cannot get over that hurdle, Fiorello also is making the most of his record in the House'against pay cuts. He has promised city employes there will be no reduction in salaries. This gets him a sizable class of pro- fessional voters who never fail to reg- ister—all relatives and friends of pub- lic employes. Drift Toward McKee. The popular drift now is supposed to be in McKee's direction. Whether it will be strong enough to cut down La Guardia’s existing lead is a question. The best political prophets doubt it. The stiletto has been liberally used In past New York elections. It always creates a preliminary element of doubt. awakened on election day to find it sticking in their backs. You can never tell for sure who your friends are until the votes are counted. The election is of great national im- portance. If La Guardia wins, he will become one of the most important figures in the Republican party. In his campaign he has made peace with the conservative Republican ele- ments. That strange liaison may not last long, but it will be of impor tance everywhere as long as it lasts. Unless McKee wins, Gen. Farley probably will have to leave town. His Jjudgment, prestige and influence vitally are at stake. Gen. Johnson and George Peek have agreed to let bygones be bygones, but there is still bad blood underneath be- tween the N. R. A. and the A. A. A. The Wallace-Tugwell crowd still looks on the Johnson-Peek clan as non-con- formists. and vice versa. The situation is not so serious that it will interfere with efforts to har- monize the policies of the two outfi‘s, but it has long-range possibilities. Many insiders believe the Government serv- ice is not big enough to hold both ‘lans Indefinitely The betting seems to favor ultimate retention of the Wallace-Tugwell group. They are supposed to have the inside track at the White House. Efforts to harmonize the programs of the two outfits is a real bit of inside news. Several meetings were held secretly within the last few days. They brought no concrete results. Not Insurmountable. The task is difficult if not insur- mountable. The two plans have differ- ent fundamental theories. The N. R. A. seeks primarily to raise purchasing power by spreading work and boosting ‘wages, thus raising industrial prices. The A. A. A. primarily is trying to make the farmer's dollar purchase as much as it did before the war. Every time e N. R. A. sends industrial prices up, the job of the A. A. A. becomes thaf much more difficult. A harmonizing statement may be issued in a few days. A master of words will be needed to compose it. Prof. Warren never talks. He is the most mysterious person in the Govern- ment. He has not opened his mouth in three months for fear he migh say something. There are reports that he sleeps with a clothes pin on his lips. ‘Therefore the story does not come from him, but it is nevertheless true that he did not find out Mr. Roosevelt had adopted his gold theory until a day or two before the announcement was terms of which the shipment of such product is not required to be completed before the end of the calendar quarter year ending not mere than four months after the date of the making of such contract.’ “Apparently if contracts for the pur- chase of steel rails were made in No- vember this provision of the code would require shipment of all of the rails be- fore the end of the calendar year. Some of the railroad companies wiil not need some of the rails until some time in 1934, Arrangements must therefore be made by amendment of the code or otherwise so that it will not in such in- stances be necessary to complete ship- ments of the rails until March 31, 1934. “In my letter of October 3 I stated that certain railroads contemplating im- | portant orders make it a condition that the base price shall not exceed $35 per ton. There has been no change in this situation so far as I am aware.” ENGAGED TO SCENARIST Maureen O’Sullivan Says Farrow Gave Her Diamond. 'HOLLYWOOD, October 28 (#).—The diamond engagement ring that Maureen | O'Sullivan, Irish screen actress, is wear- ing, was given to her, she said last night, by John Farrow, Australian writer of movie scenarios. Miss O'Sullivan said they were en- gaged, but there was an obstacle to their marriage in_the Roman Catholic Church because Farrow was divorced several years ago by a San Francisco irl. . A special dispensation has been asked, Miss gsmuvm sald, P The professor was at his labors at Cornell last week when he received Mr. | Roosevelt’s summons. He had not heard from the President in such a long time, he thought his plan had been dropped. He arrived here the Friday or Saturday before the speech. Others Kept in Dark. But that is nothing compared with the ignorance of the Federal Reserve Board on the subject. It is supposed to know everything about money in ad- vance. ‘The board not only had no advance information, but it could not find out what the policy meant even after the announcement was made. Its meeting here Monday had to be adjourned so the matter could be explained. Apparently Henry Morgenthau was the only Government oficial trusted with advance knowledge of the project. ‘The same secrecy system is being kept up in announcing new gold prices. Prof. Warren whispers the price to Mr. Roosevelt, who wm;mfl it to Mr. Morgenthau, who Wl it to Mr. Jesse Jones, who makes the announce- ment to the world. Jones and his colleague, Harvey Couch, have very little advance data. MeKee camp, planning to scllD| defections, even coupled with conserv-; 1t he does | THE EvavanNd ] SATO DENIES JAPAN WILL FOLLOW REICH tAssures Davis Country Will Not Withdraw From Arms I Conference. By the Assoclated Press. GENEVA, October 28.—Ambassador | Naotake Sato today denied rumors Janan was following in Germany's foot- steps and graGuially withdrawing from | the Disarmament Conference. sador at Large, called on the Japanese representative and told him some mis- | understanding evidently had arisen re- garding Sato’s recent statement assert- ing that disarmament was primarily European question. M. Sato assured the American that | Japan had no intention of withdrawi but would adopt a e role regare Passiv ing outtanding Eu:~vean problems and then decide Japan's «.'tude. He sald the Japanese delegates 1> ment Conference would remain Geneva. Davis expressed satisfaction today at the decision to advance the date for a _aeeting of the Disarmament Confer- ence Steering Committee. Previously, it had been decided to meet November 9, but Sir Arthur Hen- derson, president, changed the plans and set the sessions up to November 3. The full conference is to meet again December 4, though the Steering Com- mittee may move to set a new date for that also, France, with a new government, is expected to pursue disarmament nego- tiations at Geneva with a view to draft- ing a convention without awaiting any German decisions. $10,000,000 SMALL PROFIT FOR WIGGIN IN STOCK DEALINGS __(Continued From Pirst Page) at He said of stock- ot the Metpotan company. they were for the benefit holders. The statement follows: “To remove any misconception as to the objects and operations of the trad- ing accounts ior the purchase and sale of Chase stock, in which Metpotan Se- curities Corporation participated, I wish to make a very brief statement: “Shortly after the consolidation of the Chase National Bank and the Metropolitan Bank in 1921, a number of large blocks of Chase:stock came on { the market. In order to protect stock- holders from the declige in prices likely to accompany t absorption, the shares were purchased by Metpotan STAR, Norman H. Davis, American Ambu-( e Disarma- ! W.isiiinuLON, \CRAWFORD JAILED ~ ON VIRGINIA SOIL Slaying Suspect Taken to Alexandria by Two Squads of Police. George Crawford, colored, was re- ‘trial for the double slaying of Mrs. Agnes Boeing Ilseey, Middleburg sports- (woman, and her maid, Mrs. Mina Buckner, January 13, 1932, Sheriff E. S. Adrian and Deputy Sherif D. H. Cooley of Loudoun Gounty brought the fugitive here from Boston early today and a few minutes later two aquads of Virginia State and Alexandria police had escorted him over the line into Virginia, terminating one of the most intense extracition battles in legal history. Trial Within Month. He was lodged in the Alexandria jail, where Commonwealth Attorney John Galleher of Leesburg said he would be kept until brought to trial. It is ex- pected the case will be heard in Lou- doun County Circuit Court not later than four or five weeks hence. Galle- | her, who has conducted the investiga- tion of the crime from the first, will serve as prosecutor and it has been ex- pected that Judge J. R. H. Alexander will préside at the trial. A motion to quash the indictments against Crawford was entered in Judge Alexander’s court two days ago. The plea was filed by Attorney Charles Houston of Washington, who contends the indictments are illegal because col- ored persons are excluded from the grand jury in Loudoun County “because of race and color.” An Associated Press dispatch from Richmond today stated Gov. Pollard had named Judge James L. McLemore of Suffolk, presiding over the Second Virginia Judicial Circuit, to hear the motion to quash the indictments against Crawford. His action was taken upon request of Judge Alexander of the Twenty- sixth Circuit, who requested that he be relieved from the duty of serving. “Inasmuch as my action in draw- ling or making up the grand jury list is to be attacked in this motion, I | feel that I should not be called upon | to pass upon its validity,” Judge Alex- ander said. The jurist said he thought the motion | should " be disposed of as early as | practicable. | i Judge Blocked Return. Since his arrest in Boston in Jan- | uary of this year and the discovery of turned to Virginia soil today to await Some very popular candidates have | and were marketed as the opportunity | his identity through fingerprint com- presented itself. lp-muns, awford's case has been “The assistance of several invest-|fought through Federal courts up to and ment and distributing houses was ob- | including the Supreme of the tained in connection with the sale of | United States which recently refused to these shares. Their ready disposition block extradition to Virginia. and the consequent increase of the| Massachusetts State authorities had number of stockholders suggested fur- | no objection to sending Crawford back, ther efforts in that direction in the but the case was appealed at once to belief that the business of the bank | Federal Judge James A. Lowell, who would grow in proportion as its good will was enhanced by enlarging the rumber of persons interested in its suc- cess. “Accordirgly, efforts were made to that end and with such success that between December 23, 1921, and Septem- ber 8, 1933, the number of stockholders 1nclreued from 2,189 to 89,196, of whom only to the six consolidations which occurred during that period. “Beginning about 1928, the public demand for bank stocks increased so rapidly that, notwithstanding almost constant and rapid increase in the mar- ket price, 1,109,655 shares were trans ferred during the year 1929 and, between December 13, 1928, and December 11, 1929, approximately 38,000 names were added to our list of which only 3,982 were the direct result of consolidations. “Notwithstanding that the market price has generally declined during the intervening 3 years and approximately 10 months, the number of shareholders has increased from 50.510 to 89.196. “Having been introduced in the man- ner above mentioned to the practice of marketing shares of the bank and Chase Corporation, Metpotan was thereafter utilized as a vehicle for the shares of those institutions, purchased and sold in the effort to increase the number of stockholders, to stabilize the market and render it as orderly as pessible. “Since 1921 Metpotan has pertici- pated in 22 trading accounts. Some were operated at a profit. some at a loss. The net result of the operations of all accounts has been a profit of less than $600,000. These accounts were not organized to advance the price of the stock and then liquidate. “On the contrary, the thought was to provide both a purchasing power and a distributing power so that the E olders might profit by the more i orderly resulting market. I bel | Were it not for the steadying effects of lieve that the Metpotan trading accoun ts Chase would have advanced in 1929 far bes yond the high price reached.” NEWLY-MINED GOLD POURS INTO MINTS AS PRICE GOES UP (Continued From First Page.) Islands, brought $2,014,100, or $734,000 more than it would have brought at the old domestic price of $20.67. The receipts at the mint for several weeks have averaged between 6,000 and 10,000 ounces daily, most of it from i small mines scattered over California | and other Western States. ! DENVER MINT BUSY. ' In,ooo,ooo in Precious Metal Received ‘Weekly With Calm Routine. DENVER, October 28 (#).—The Den- ver mint is receiving gold at the rate of $1,000,000 a week as calmly as if it were spinach. The excitement is up in the moun- tains, where droves of tors are seeking new fortunes, e ble since the Government put its gold-pur- chasing plan into effect and hiked the market price. Most_of the gold is coming by ex- press shipments in unromantic, stoutly wrapped boxes. Some comes by regis- tered mail. | Sometimes gold dust comes loose, in thick envelopes, at other times in the form of bars, retorts, placer grains, but- itons, kings or nuggets. It is melted and assayed, tagged and checked in a swift routine. “Several hundred persons every month send us shipments, some of them worth & few hundred dollars, a few worth sev- eral hundred thousands,” said Mark A. Skinner, superintendent of mints. “We .get gold from almost all the States |west of the Mississippi River, and sometimes from shippers as far away as Maine.” The superintendent does not see any indication, he said, that miners are go- ing to hold back gold, in anticipation of a better Government price. CHACO BATTLE RAGES 18.895 were directly attributable | { would not allow the return on the | ground that colored persons are not | called for jury service in Virginia. ‘This decision led to the impeachment | of Judge Lowell from the floor of the | House of Representatives here, and an imvemnmm was ordered by the House Judiciary Committee to determine if action should be taken in the case. Subsequently the Federal Circuit | Court of Appeals reversed Judge Lowell’s ruling, and an appeal by Craw- {ford’s counsel to the United States | Supreme Court resulted in that body | upholding the reversal. Arrival Briskly Handled. Crawford’s arrival at Union Station | here was briskly handled by Lieut. W.S. Thomas, Sergt. E. J. McDermott and Officers W. R. Thompson and S. L. Mc- | Willlams of the State police, and Sergt. | Lawrence Padgett of the Alexandria force. As Sheriff Adrian, the deputy {and their prisaner stepped off the train | they were guided quickly to the east end of the station plaza, where two fast scout cars and an Alexandria cruiser | awaited them. Crawford and the Loudoun County officers entered the center car with Sergt Padgett, while the four Virginia officers pulled the scout machines into position in front and back of the pris- |oner’s transport. As the convoy drew |away one of the State policeman sat | gripping a sawed-off shotgun. A few moments later the prisoner was safely lodged in Alexandria jail, where an extra guard will be maintained throughout the day and night. The four State officers who conducted Crawford to the jail also will be kept stationed in Alexandria as a precau- attempt at violence, tion against any but they will not remain at the jail, Confers With Officials. Highly elated over the success of his 10-month battle to bring Crawford back, Galleher arrived at the jail short- 1y after the prisoner and conferred with jail officials. It is understood from Mr. Galleher that the prosecution's case against mony of witnesses who say they saw him near Middleburg before the crime, and he will be linked with the actual slaying by a note later found in the |car stolen from Mrs. Ilsey the night n::h lndbuh:rs &ud‘hweu beaten to death with a bootjack, the prosecutor said. A confession of the crime Crawford made to Galleher also will comprise part of the State's evidence. In the confession the accused is said to have admitted he and another colored man went to the Iisley cottage, which was located on the rear of her estate, in- tending to rob. Crawford claimed the other man killed the two women while he was waiting as lookout at the back door. Later this confession was repu- Boeing May Be Called. Paul Boeing, the slain woman's brother, probably will be called to the stand to desc: how he found his sister's body lying in her bed room when he came over from the mansion house to have breakfast with her, and expected to testify at the trial. The State is expected to attempt to establish & double motive for the mur- ders—robbery, because money jewelry bel to Mrs. Buckner was Becauss Grawtord is supposed to. have ve known that Mrs. had sworn a warrant outhfor him in connection with HIGH SCHOOL STUDENTS DIE IN FRONT OF TRAIN Two of Trio Killed Were Members of Basket Ball Squad on LA PAZ, Bolivia, October 28 UP).—| ball ‘Warfare against Paraguay in the Arce sector of the Gran Chaco was reported rday: Dispatches said had thrown in heavy forces against Bolivian troops with enormous losses. The battle was reported continuing. Pessim was_expressed in semi- official circles about mediation con- ducted by Argentina and Brazil, » Crawford will be built around the testi- | L5 "Husband of FRENCH T . EN. HENRI GOURAUD, recently. G o 28, 1933, Wa OFFICER on Girl Decorated ORED AT PARIS CEREMONY. { war hero and military governor of Paris, decorating Lieut. Marcel Leyie with the cravate of the grand officer of the Legion of Honor during impressive ceremonies at the Invalides parade grounds, Paris, Lieut. Levie is the husband of the former Gladys Folke Smith of Washington, years old and the ceremony makes him the youngest grand officer of that famous body. D. C. He is only 37 —A. P. Photo. PUBLIC WORKS SUM MAY BE INCREASED Roosevelt Considering Boost! of $1,700,000,000 Favored by Secretary Ickes. By the Associated Press. A boost im the $3,300.000,000 public works fund is being considered by President Roosevelt, and $5,000,000,000 is the new figure mentioned in some administration quarters. Secretary Ickes, public works admin- {strator, favors the $1700,000,000 in- crease. He feels many communities may have to be turned down other- wise, so rapidly have requests for funds mounted. Amount Not Decided. But Mr. Roosevelt has not decided what additional amcunt, if any, he may ask of Congress. Pending a de- cision, he is_holding up completion of next year's fiscal program. To date, $2105,216,525 of the $3.- 300,000,000 works fund has been al- lotted to Federal projects throughout the country. About one-fourth the allotted figure has been withdrawn from the Treasury. A tentative deadline before which the present $3.300,000.000 is to be allotted has been set for January 1. Pending a decision on the amount of new public works to be sanctioned, Mr_ Roosevelt is deferring completion of his fiscal program for the ensuing year. > He expects a report next week from the special committee investigating proposed taxes on liquor in the event of repeal. However, it was said that the ad- ministration did not necessarily take the attitude that revenue needs of th> Government should be the dominatirg factor in fixing liquor taxes. ‘The House Ways and Means Com- mittee will meet November 27 to con- sider a general revision of the revenue laws, Chairman Doughton said yester- day. Representative Doughton said public hearings might be called in con- nection with the tax study, plans for which he outlined recently. Several cf the special taxes would be revoked if prohibition is repealed and there has been considerable dis- cussion of changes that might be made to prevent recurence of some of the practices that have been disclosed by recent Senate Committee investiga- tions. State Applicants Mount. A rapidly mounting number of public work applications from States, smalier politieal subdivisions and private sources for funds has convinced Ickes that many communities will have to be turned down unless the fund is| augmented. In addition, several hundred millions must yet be taken from the fund for the Federal Housing Corporation, which Ickes expects to incorporate in Delaware next week. This corporation will direct actively the erection and leasing of low-cost housing in all rts of the country. Creation of the corporation and the allocaticn of a large sum of it would | leave less than $1,000,000,000 to meet several thousand applications now at the Public Works Administration. The attitude taken by some of the President’s advisers, including Ickes, has been that, since a part of the E‘;b“c works funds is being paid for taxpayers in all parts of the coun- try, all sections should have an cppor- tunity to submit their programs rather than have some exclud by a lack of funds and still through taxation have to pay for other communities construction. U. S. GOLD JUMPS TO NEW HIGH MARK AS BRITISH DROPS (Continued From First Page.) on Wednesday it was increased to 130 shillings 91, pence. Yesterday it went to 131 2 pence. Carrying out the purchasing opera- tions, officials are watching _develop- ments in the commodity markets, for the theory behind the purchases is that they shouid rise. Economic history has, shown, proponents of the system say, that the price of gold and of commod- ities are closely related. If one rices or falls, the other adjusts itself to it. While there were differences of opin- ion as to the cause of the market trend, Mr. Roosevelt's advisers noted that wheat led a general advance yesterday. Cotton, although quiet, turned upward at the close and stocks followed the trend of the grain market. The R. P, C, which, under the plan, authorized the freshly- ing the total tnat had acquired. Denver tches told of $416,388 of new gold vered at the mint there and tremendously increased activity among the miners. A total of 8321 ounces wes received Wednesday, ac- cording to Mark Skinner. who is in charpe of the mint. In addition, 4,390 ounces were delivered Thursday. ACTS IN DOLLFUSS CASE VIENNA, October 28 (#).—A formal charge of attempted murder was filed against Rudolf Dertil, the !m weeks, at least, before the shooting Oc- tober 4, will be tried before judges— not a jury. . and non-Federal | The text of the authorized statement made yesterday on behalf of the Ford cials follows: “The Ford Motor Co. has not made any Government bids. If bids have | been made by Ford dealers it is because Government departments insist on its | being done. They have used our prod- uct before, their specifications fit it and besides the prices usually are very easy on the department’s budget. There is no money in Government bids unless some form of favoritism is practiced such as is now possible under the N.R. A “The situation at Washington, which has so greatly excited Mr. Johnson, is | a simple one. | citizen of Washington, entered his bid { at the request of Government men. His | bid was something like $200,000 lower than the others. “Johnson now proposes to charge the American taxpayer a higher price in order to give Government business to a concern that pays lower wages than the Ford Motor Co. does. More money out of the taxpayers' pocket. less money in the workingman's pocket—that is the way it will work. | A Ford dealer, who is a | Text of Ford Statement Company Says It Has Complied With Law and Charges Johnson Assumes to Talk Like Dictator and Supreme Court Combined. try that observes the Jaw. Johnson |posed of materials produced by indus- Co. in its controversy with N. R. A. offi- | now_says that a product which 5300 |N. R. A. industries help to fabricate |out of material produced under N. R. | A. conditicns shall not be sold in this | country because it carries the name | Ford, & name which stands for better | conditions than N. R. A. has dared to | stand for. “Johnson is not boycotting us. He is boycotting 5,300 American manufac- turers who co-operate with Johnson. “It would make no difference if. the | Ford Motor Co. signed a code. This company would be under attack by the enemies of independent business just the same. Talks Like a Dictator. “Not only has Johnson attempted a grave injustice upon a law-abiding American’ industry, he has also as- | sumed to talk like a dictator and the Supreme Court combined. “Failing to induce the American peo- ple to demean themselves by boycotting decent industry, he seems to have hopes of better success with the Government. Naturally, we are willing to let him go as far as he can. “As to Johnson’s statement concern- | ing our attitude toward collective bar- Have Complied With Law. “To cover his action, Johnson makes the false charge that the Ford Motor Co. has not complied with the law. We have done so in every respect. Signing !a code is not in the law. Flying the Blue Eagle is not in the law. Johnson's daily expression of opinion is not law. “The Ford Motor Co. observes the law and exceeds it in all its real re- covery features. Our product is com- | gaining, we have a record of 30 years |on the wage question and fair condi- tions. “We have not had to bargain against our men in all that time. We have al- | ways_bargained for them. We doubt | that Johnson will be able to change that situation. It is too profitable for our men. They have always been paid more than any professional bargainer would ever have the nerve to ask.” PRESIDENT PLANS - SPECULATION CURB Expected to Urge Laws for More Rigid Supervision ! of Markets. By the Associated Press. President Roosevelt apparently plans to urge legislation, in stronger terms | than he did last session, to extend Fed- eral supervision of the great securities and commodity markets. | a presidential study of the Stock and | Grain Exchanges and have indicated | | Mr. Roosevelt’s goal—a curb on violent fluctuations, especlally in commodities. Federal exchange supervision was mentioned to the last Congress by the Chief Executive. The press of recovery legislation, however, prevented it from reaching advanced stages of considera- tion. | Strong Pressure Likely. Authoritative sources now say that | not only will exchange regulation again | be recommended. but it will be accom- | panied by a detailed plan of action and | strong White House pressure. | While Mr. Roosevelt is making a per- | sonal investigation of the subject, a Spe- | cial Administration Committee under John Dickinson, Assistant Secretary of | Commerce, is preparing a report on |ways and means of supervising the | exchange. In a personal conference this week with Richard Whitney, president of the New York Stock Exchange, the Chief Executive asked for special figures on stock transactions. He wants to find how many are of an investment nature and how many purely speculative. Two Schools of Thought. Data submitted to the administration from other sources represented the Grain Exchange as 80 per cent specula- tive with 135,000,000 Busncis nvoived. Of this big block, 20 men were said to own 25,000,000 bushels. In to determine the exact im- portance of speculation in price fluctua- tions, the President is ng two schools of thought. One contends & free market is necessary to prevent vio- lent fluctuations. The other argues price ranges would be narrowed by for- bidding marginal buying and selling. NO TRACE OF DOPE FOUND IN AUTOPSY ON LAUREL HORSE (Continued From First Page.) compartment, Rapscallion was finally sent to the outside. D of early speed in the eight- showed a lot ition beyond control of his jockey, -w&lotnufllynlmfle. i McKnight horse was second i that Dr. McCarthy by the judge’s stand. Speculative price trends have spurred | GLOVE TRAPS SEVEN IClue Links Three Mail Rob- beries to Alleged Members of Touhy Gang. | By the Associated Press. A glove found in a stolen car was the “break” that led to the round-up of scven men who have been indicted for | mail robbery and the recovery of $224,- 000 of loot totalling $332,000. This was disclosed yesterday by Kil- | droy P. Aldrich, chief postal inspector, | in a report covering robberies at Sac- Lake Min; ramento, Salt ne- | apolis, The seven, all described by Aldrich | as f the notorious | gang ot | napping charge; William Barry, George | (Red) Kerr, Leon Epmeir, Silent Jim |Ryan, Willilam Sharkey and Frank McKee. Schaffer's wife, Aldrich said, alsg is wanted in connection with the Tobberies. The Minneapolis mail robbery took place January 3; the Sacramento rob- bery, February 9. and the Salt Lake City robbery, April 28. Of the Minneapolis loot, $24.372 of a | 878,417 tctal has been recovered, and official reports received by Aldrich’indi- cated that the recovery of an addi- tional $16,000 was imminent. Schaeffer, Earry, Ryan, Epmeir, Sharkey and Mc- fie:t are alleged to have participated Schaeffer, Barry and Kerr must stand | trial at Sacramento shortly in connec- tion with a robbery there of $233,411 in bonds and coupons, a small amount of Ch‘:sh and jewelry. Of this loss, $200,000 City and Tecovered. Postal inspectors worked for three months on the Sacramento case without the semblance of a clue, the chief in- spector said—and then through the glove they were able slowly to knit to- gether scattered bits of information that led to the arrest of the reputed members of the Tuohy gang. ir, Kerr and Schaeffer will be brought fo trial at Salt Lake City on charges of stealing $7,500. Francisco, Denver, St. Paul and Chi- cago divisions devoted months of pains- taking cffort to the solution of the three cases. SRR Dr. Cahill Given Post. Dr. James A. Cahill, chief surgeon at the Georgetown University Hospital, has been elected consulting surgeon at Co- lumbia Hospital for Women and Lying- in Asylum by both the medical board and the Board of Directors. He was notified of the election late yesterday. Litvinoff Appeared Il on Berlin-Bound Train, Woman Says By the Associated Press. BERLIN, N $332000 THEFTS Aldrich said inspectors of the San | FORDSNRASTAND MAY BRNG TEST Roosevelt Backs Johnson in Determination to Prosecute Violators of Act. (Continued_From_Pirst Page.l followed closely by a formal statement from the company saying: “Mr. Johnson's vocabulary has got him down again. Before assuming the airs of a dictator, he should fortify him- | self with evidence that Henry Ford has lan refused comp requirements. Suggest Code of “Fair Publicity.” “It is an act of injustice for Mr. Johnson to intimate that any refusal has been made of any proper demand on the Ford Motor Co, especially since Mr. Johnson knows that even his pal signers have not had time to fle their reports, which he charges this compeny with refusing “We suggest a code of fair publicity for Mr. Johnson's Interviews.” Informed of this Johnson indicated pleasure at the apparent implications that compliance was forthcoming, but he penciled out one more statement: “I have no intention of entering into a newspaper discussion with a Mr. Cameron. (W. J. Cameron is an as- sistant to Ford, who handles press statements for the company. His name was mentioned in one of the dispatches Johnson_saw.) “Mr. Edsel Ford told me that the Ford Motor Co. would submit to no code that required collestive bargain- ing. I have never said that I have concrete evidence of direct violation of the automobile code by that com- pany. “What T did say was that the mo- ment I did have such evidence I would not hesitate to act.” It was later in the afternoon when the company charged Johnson with at- tempting “a grave injustice upon a law- abiding American industry,” and as- serted it would be under aftack “by the enemies of independent business” even if it did sign a code. As the Ford controversy reached ® new peak, Agricultural Adjustment Af ministration officials decided to scrap some of the major provisions of N. R A’s retail code in drafting the coi panion charter for the food and gro= cery end of the industry. This re- opened old differences between the two recovery agencies and put a final de- cision up to President Roosevelt. Farm officials opposed the minimum mark-up plan on retail prices, and now are equally opposed to the retail pro- vision that selling prices “should in- clude an allowance for actual wages of store labor, to be fixed and published | from time to time by the trade author= | “Tnis was the chief provision to which farm officials objected in the new retail code. They do not want to go beyond authorizing a prohibition against sales below invoice costs. Until the codes are harmonized, a merchant selling both dry goods and food would find himself operating under | two sharply divergent price schemes. |SHERIFF GETS ORDER T0 “SHOOT TO KILL” DISTURBERS OF BODY (Continued From First Page) ce with Government | His attorney, Bernard Ades, has made a determined fight to secure the body to take to New York for a demon- stration. Calling attention “the recent exhi- | bition of the failure of the State con- stabulary” in the Princess gmne lynch- ing, Judge O'Dunne reminded the sheriff that he could summon the entire citizenship as a “posse comitatus” and that “side arms are made to shoot with, and not intended as mere official orna- i ment and decoration.” Judge O'Dunne said that “in the sup- pression of a riot you are justified in shooting to kill.” | Judge O'Dunne issued an order re- straining Ades from “interfering in any way” with the body of Euel Lee. Ades had claimed the body of Lee on the grounds that Lee had willed it to him. Ades secured a temporary order yesterday restraining the State from burying the man. At the hearing today a second paper signed by Lee, directing that Rev. E. C. Powers, penitentiary chaplain, take care of the body, was produced. vers told Judge O'Dunne that Rev. Pow Lee had given it to him Thutsday | night. WKEE IS WARNED NOT TO USE N. R. A. IN NEW YORK RACE (Continued Prom First Page.) ing of our flag to conceal the identity of the district political bosses and the tin box brigade.” The posters were produced by John J. Tichenor, editor of the New Outlook, who is La Guardia's publicity adviser. Tichenor said he obtained them at headquarters of McKee and of Ferdi- nand Pecora, candidate for district torney. They were being given came- paign workers, he declared. At McKee's headquarters it was said the circulars had been suomitted as a sample, but_the committee tefused to buy them. Hooey said he did not know whether they were authorized or being circulated privately. Campaign_charges were hurled back and forth in increasing number, the latest exchange taking place between Samuel Seabury and McKee to a chorus of “broken promises,” “hushed charges” and “falsification.” Seabury, the man who undermined James J. Walker with a legislative in- vestigation, accused McKee of hushing up “serious accusations” made against McKee by a city employe. Promised to Fight Charge. Seabury's charge centered about Prancis T. McEneny, who was remcved as chiet examiner of the Board of Al- dermen, of which McKee was cl - Seabury said that in the closing days of the city investigation McKee came to him with an afdavit, signed by Mc- | Eneny and accusing McKee of having acted for personal “gain.” Seabury said McKee promised he would fight the charges and not hush them up by reinstating McEneny. The investigator said McKee broke the promise and reinstated his accuser. McKee, hitting back at Seabury, ac- cused him of falsification and said the investigator himself had the affidavit as groundless. McKee, outlining 12 steps he would take toward efficient administration, an- nounced the first one would be to seleet havor somn B Obe Tarmany yor Jol ., O n, candidate, continued to defend his ad- ministration. Pointing to the e de- t, he called it efficient, fearless and “free from sinister influence.” —_— EX-GRID STAR JAILED SAN ANTONIO, Tex., October 28 (#), —Lieut. John Murrell of the fantry, Fort Sam H ball star at West Point, was with attack on & woman in a filed before United States er P A octapiaint, preseniad 'by Depart ment of Justice agents, asserted o tack occurred on the ervation