Evening Star Newspaper, November 3, 1933, Page 1

WEATHER. (0. 8. Weather Bureau Forecast.) Rain tonight, probably ending tomor- row morning; colder tonight; much colder tomorrow; mcderate northwest or north winds. Temperatures—Highest, 70, at 4 p.m. vesterday: lowest, 55, at 4 a.m. to- day, ~Full report on page B-9. Closing N. Y. Markets. Pages 14,15&16 ch No. 32,693. post office, Entered as second class matter Washington, D. C. WASHINGTON, D. C, FRIDAY, NOVEMBER 3, 1933—FORTY-SIX PAGES. ¢ Fhenin ‘WITH SUNDAY MORNING EDITION a Star HUGE MARKETING PLAN 15 PROPOSED AT FARM PARLEY Provides Fixed Price for Products to Be Based on “Parity” Levels. PRE-WAR PURCHASING POWER AIM OF PROGRAM Proposal Calls for Agreement to Reduce Crops in Future to Fit Supply and Demand. By the Associated Press. A gigantic marketing agreement un- | der the farm act, covering the major farm commodities of the Middle West, | was proposed today at the conference between the administration and the Governors of five States as they sought agreement on an immediate farm price- | lifting program. | This trend in the discussion was reached after Secretary of Agriculture Wallace had reported to the White House that difficulties had arisen in the effort to work out a price-lifting | program. He said no report could be made to the President before tomorrow. Under the new suggestion before the conference an agreement would bc drawn up, under which farmers who signed would be guaranteed a fixed price for their products, to be based | on “parity” levels. Quotas Would Be Assigned. It would be designed to give the| York State Chamber of Commerce went upward by increasing the value of gold | on record tocay in strong opposition to | was in full operation today, with the products the equivalent of their pre- war purchasing power. The farmer would agree to curtail | & production_in future years as found | necessary by the Department of Agri- culture to fit the supply and demand situation for each commodity. | Individual farmers would then be assigned quotas of products which they | meeting attended by men eminent in | tion purchases would be entitled to sell at the fixed- | the financial and business affairs of the newly mined in the United States, = price level, These quotas would be based on statistics of their production | in_prior years. | Processors and distributors would be licensed to force payment of the prices and to prevent circumvention of the agreement. ‘The administration’s reaction to this proposal, advanced principally by Gov. Olson of Minnesota, Farmer-Laborite, | and given general approval by Govs. | Herring of Iowa, Berry of South Da- | kota, Langer of North Dakota and Schmedeman of Wisconsin, remained | uncertain. | | Obstacles to First Plan. | It was reported that while Secretary : . | Wallace and his aides had first listed | price-fixing as “impossible,” that they | offered numerous suggestions with a | view toward making the proposed | agreement effective. i ‘The Governors turned to the agree- ment plan after encountering numerous | legal and other obstacles to their original | program, adopted at the Des Moines Conference of Governors. | It called for an N. R. A. code for, sgriculture, under which individual farmers would be licensed and provided that prices be fixed to cover cost plus a “reasonable profit.” They sought di- | rect inflation also. ! After the conference the Governors | began a redraft of their program, hav- | ing encountered both legal obstacles and practical difficulties in the way of their original proposal. May Approve Price Fixing. | Shortly before noon, on returning from the White House, Wallace said “nothing definite” has been agreed upon. He said price fixing was still under consideration and that “thé adminis- tration would be willing to approve a progam of this type providing there was adequate production control.” He indicated, however, that: “ade- quate control” was not yet in sight, with the farm adjustment program still in | its formative stages for some of the major products of Midwest farms. One of the proposals of the Gov- ernors was that an N. R. A. code for farmers be drafted, under which mini- mum prices would be fixed. Farmers would be licensed and sales quotas fixed for each. Wallace said the attention of the Governors had been called to the Long amendment to the N. R. A. act, which specifically exempts farmers from its licensing provisions. The farm act also contains bars | against the licensing of farmers. ~ New Angle Is Studied. Encountering this legal obstacle, the | Governors then turned to consideration | of the possibility of licensing processors who buy farm products as a means of | supporting a price-fixing program. | Again, Wallace said, they learned of | serious practical obstacles. | It was reported the Governors had been informed that in the case of | wheat, as an example, more than hnl(i of this year's short crop of about 500,- | 000,000 bushels and up to 250.000,000 | bushels from other years was believed | to be already in the hands of traders and millers and out of the control of farmers. | This quantity of wheat would be more | than sufficient to supply mi ne | " (Continued on Page 2, Col ¥ G. 0. P. LIBERALS WARN AGAINST N. R. A. ATTACKST Statement at Chicago Says Peop1e1 Will Resent National Com- mittee Action. By the Associated Press. t CHICAGO, Ncvember 3.—A declara- tion that the American people would Tesent attacks by the Republican Na- | p tional Committee on the Roosevelt ad- ministration came today r;o:a the Pro- gressive Republican organization. *The attack just made by the Re- publican National Committee against the recovery problem will be resented, a statement from the Progressives said. “The utter failure of the reactionary Republicans to properly manage the country is still fresh’ the minds of “"fi.’?;"m" hich failed so recently i whic] ‘cannot wlthp grace attack the ent administration Which 15 at m making an honest attempt to do something on behalf of the people.” ‘The statement called for the Nation «to stand loyally behind .he President.” It was signéd by obert McCormick Adams, Richard W. Wolfe, and Newton Jenkins, national committeeman of the | national income.” i standard by many countries after the Employment and Pay Rolls Show Seven-Week Increase |Commodity Prices Keep Up Advance. Industrial Production Continues to Recet_le During Period. Employment and pay rolls continued i to increase, commodity prices kept up their advance and industrial production | continued to recede during September and the first three weeks in October, | according to the monthly survey of | business completed today by the Depart- | i ment of Commerce. The decline in industrial production | in October slowed down from the rate ! shown in August and September, but | distributicn indexes failed to indicate | the seasonal rise usually recorded in | spite of the continued growth of pur- | chasing power. Changes in commodity prices appear to indicate a larger increase in retail than in wholesale prices. Output of mines and factories in | September declined contrary to the rormal movement, and the adjusted | index for the month dropped about 8 | put, with decreases shown by all the per cent, or about the same rate as recorded in August. Manufacturing production declined relatively more than the mineral out- major industries except food products. The widest declines were in steel, 18 per cent; textiles, 13 per cent, and lumber, 22 per cent. The principal consumers’ goods industries, aside from textiles and food products, recorded only moderate declines and all were reported operating at a relatively high rate. Retail sales in September failed to continue the gains made in August. The increase in department store sales was smaller than the usual seasonal rise, and the adjusted index dropped 9 l|_:er cent. Sales were 3 per cent higher than a year ago and prices were 17 per cent higher. Variety chaln and chain food stores also showed only a moderate increase in value over last year. Employment and pay roli gains con- tinued to rise for the sixth successive (Continued on Page 2, Column 5.) TRADEBODY ASKS RETURN 10 GOL ‘New York Chamber Makes|Roosevelt Program in Full| First Organized Attack on Money Policy. By the Associated Press. | NEW YORK, November 3.—The New managed currency and demanded | that the United States return to a per- manent gold standard with the utmost promptness. The action was taken at a special | State and Nation. Leonor F. Loree, head of the Dela- ware & Hudson Railroad, declared that | the abandonment of the geld standard by the United States was as great a violation of trust as Germany's disre- gard of Belgium’'s neutrality in 1914. First Attack on Policy. The sentiment of the Chamber of Commerce was one of the first organized attacks on the administration’s new monetary policy, particularly the recent gold purchasing policy. At the meeting of chamber repre- sentatives, financial interests of Wall Street and much of the East were represented. Opinion of the gathering was_ definitely in opposition to any at- tempt in currency experimentation and the managed commodity dollar. | The resolution stated that the cham- ber, “taking cognizance of recent finan- | trasted with the decline in the British | out of town, Senator Wagner, cial developments, hereby affirms its conviction that a gold standard is the most satisfactory monetary system from the standpoint of the American people as a whole, and expresses the belief that as a delay in the declaration of a| definite policy will make the task more difficult, measures should be taken ‘with the utmost promptness toward the restoration of a permanent gold stand-| ard in the United States.” Seek Old Gold Dollar. An attempt was made to amend this section of the resolution for return to | the historic gold standard both in re- | gard to weight and fineness. Although the question was resolved | by proponents of the amendment into one approving or disapproving return to the old gold dollar, it was defeated on the ground that such a move would be unwise at the present time and un- der_existing financial conditions. “Most of us.” said Bayard F. Pope, | member of the Resolutions Committee, | “hope that a return to the historic gold dollar will occur ultimately. But to commit ourselves to that purpose Dow | would be unwise.” { The resolution stated that it was of | importance to business recovery “that the administration clearly and un- equivocally announce that it will not adopt an automatic commodity dollar, or a managed commodity dollar, or| similar currency experiments, but will | adopt a ‘gollcy directed toward the re- | turn to the gold standard.” Rise in Income, The resolution further recorded the belief that “a rise in commodity prices should be accompanied by a rise in To accomplish such an end, it was declared that public confidence was necessary, but that it should be a con- fidence undisturbed by future uncer- tainties or alterations of the monetary unit. Loree was applauded when he rose with a $20 note in his hand and said: “It is a curious phenomenon that when prices are rising no one feels any sympathy for the creditor. It's only when the shoe is on the other foot that we hear any great to-do. “When you get to the bottom of all this, it amounts to an effort to cheat the creditor out of what is due him. “That,” he said, waving the $20 bill, “is a mere scrap of paper. There has been violated the Government’s pledge to pay in gold just as surely as Ger- many violated its treaty with Belgium.” Roosevelt Measure Downed. A resolution urging support of Presi- dent Roosevelt’s methods of restoring the purchasing power of the Nation was_voted down. It was introduced by | A. W. Benkert, investment banker. Benkert said it was an “economic fallacy to believe that gold is a stable measure of value.” The economic recession, he declared, resulted from the return to the gold World War and discontinuance of the urchase of foreign bonds by American investors that led other nations to “bid | for the dollar.” | Copies of the resolution urging main- tenance of the gold standard will be sent at once to President Roosevelt and Secretary of the Treasury Woodin, —e. Deer Crashes Through Window. BUFFALO, N. Y., November 3 (P).— | Apparently frightened by the guns of | pheasant _hunters, a deer crashed through the plate glass window of a vacant store near the city’s outskirts Wednesday. A dozen men used & fire net to capture the animal. ‘World's Fair to Remain Open. CHICAGO, November 3 sm‘—omchu of the World’s Fair decided today to Frogressive group. hold the exposition over for 1934. i f GOLD AT HEW HH S BUYIG GRONS Operation—Metal Listed at $32.57 an Ounce. By the Associated Press. The Roosevelt plan for forcing prices | Government's agents quietly at work on} the European bullion markets and the | domestic price of the metal again reaching a new high. For Reconstruction Finance Corpora- of the metal when| price of $32.57 was announced, an increase of 21 cents since yesterday and 31 cents higher than the day's| London price, converted into dollars| at the opening exchange rate uf| $4.8413. London Figures Up. The London figure, $32.26, was the | highest since the administration’s gold | buying began nine days ago. | In actual British currency it was slightly under yesterday, when a price of 133 shillings 3 pence was reached. Today it was 1 penny under that. The weakness of the dollar, falling 215 cents overnight, was responsible for the discrepancy between the in- crease in the dollar quotation as con- currency quotation. Actual purchases abroad, which for- eign dispatches said began yesterday. were wrapped in secrecy lest speculs. tors here or in Europe seek to enrich themselves by the Government's opera- tions and possibly hinder them. All power in making the purchases! was delegated to the Federal Reserve Bank at New York, and ‘officlals here | said the only annoincements of what | fioned his compliance. is being done would be intermittent | | summaries covering the activities of & | to whether Johnson would hold Ford period of time. Money War Is Avoided. The United States has two chief | reasons, among others, for its strict secrecy about gold purchases abroad— first, to avoid spurring other nations into a monetary war and. second, to keep speculators in the dark. There are, of course, other factors behind the decision not to announce every day the price the United States would pay for bullion. Among these was the implication that officials are not too anxious to tell the rest of the world exactly what they are doing. Four banks n New York—National City, Chase National, Guaranty Trust and Bankers Trust—are to collaborate with the Federal Reserve Bank in the purchases. Administration officials here pre- ferred, however, to maintain silence about the transactions. Without com- ment, they heard of press information that_the first bullion had been bought in Paris yesterday. They intimated that they would continue to express of- ficlal ignorance of anything done by the New York Federal Reserve Bank. Stability Is Objective. ‘There were, though, & number of in- dications that coupled now with the scheme to raise the price of gold was a desire, eventually at least, to steady bui not peg the dollar-pound-franc ex- change rate. The domestic gold price, meanwhile, will be fixed every day on an increasing basis, and the new price announced. From time to time the United States will do as has Great Britain with her stabilization fund—announce how much | - foreign gold has been bought for a specified period and what it cost in total. ‘This plan, 1t was unofficially held, will have the ultimate effect of bringing up the foreign gold price regardless of the size of the purchases. Also, it was added, it will enable the United States to work toward its objective—higher- priced gold, cheaper dollars—without an open and much-publicized campaign which other nations might interpret as a desire to depreciate American cur- rency in relation to theirs. Thus, it was said, it would be easier to convince other countries that Amer- iica’s real objective was higher prices at home. WILL OF WILL R. WOOD ATTACKED BY SISTERS Pair Charge Former House Member Was of Unsound Mind When Document Was Drawn. By the Associated Press. November 3.— LAFAYETTE, Ind., Mrs. Belle W. Chancellor of Stockland, I, and Mrs. Hallle M. Morse of Ox- ford, Ind., have filed suit to break the will of their brother, Will R. Wood, former Representative. 1t is alleged Wood was of unsound mind when the will was executed May 27, 1931. at’ $475,000. Purdue University was the principal beneficlary under the terms of the will. Wood died March 7, 1933, in New York City while he was preparing for a trip abroad. CEE LUND PLAN SEIZED BY LABOR AS CLUB FOR SWOPE SCHEME Says Counter - Suggestion Shows Industry Unable to Agree on Common Move. PRINCIPLE OF ALTERNATE POLICY GETS BOARD 0. K. Clarification of N. R. A.-Ford Case Sought Here—Import Tite Hints of New Actioa: By the Associated Press. Labor claimed to have found proof today for its predictions that business could not agree to the single organiza- tion proposed in the industrial plan of Gerard Swope. Spokesmen for organized workers based this view on an announcement by Robert L. Lund, president of the Na- tional Association of Manufacturers, that “a national organization such as is envisioned by the Swope plan, set up to administer the codes with semi- governmental authority, could not log- ically handle such questions with the best results to industry and business.” Shortly after Lund issued this state- ment, Swope made public a resolution which he said had been approved by the Commerce Department’s Business Advisory and Planning Council, of which he is chairman. It said: “The members of the council have noted with gratification an improvement in industrial activity and a wider spread of employment through recent months, despite the difficulties that had to be surmounted. The council piedges its continued efforts in assisting the ad- ministration to solve the problems that are still ahead, to the end that the basic objectives of the N. R. A.—reduction in unemployment and increase in purchas- ing power—may be sooner achieved.” Trade Freedom Asked. The cougeil appended the expressed | belief, however, that business should | “remain free of governmental interfer- | ence and control” as it sought the “con- | tinuance and advancement of the Amer- ican standard of living.” There was no let-up, meanwhile, in union labor opposition to the Swope | plan. Apparently it sided at least in part with Lund, that there was no need for change now other than enlargement of the present recovery stafl. Business and labor alike wanted clari- fication today of the N. R. A’s attitude toward Henry Ford. Hugh S. Johnson, recovery administrator, had sald noth- g furthe: since several days ago that if he found Ford violating the recovery law he would submit the case te the Attorney General. Late yesterday, while Johnsonh.w‘;.s chair- man of the National Labor Board, said | there was no question but that Ford was agreeing to “collective bargaining” at his Edgewater, N. J., plant. Agrees to Give Figures, Ford already had agreed to supply wage and hour figures sought under the automobile code, the only other point on which officials had ques- however, as There remained doubt, eligible for Government contracts or whether he would leave that to a ruling by Coptroller General McCarl. Lund, in revealing the difference of opinion over the Swope plan, which exists within industry itself, indorsed resolutions adopted by an Advisory Committee of manufacturers’ national trade associations in New York this week. He criticized recent rulings re- lating to the administration of codes and said the policies of the National Labor Board tended to prevent “prompt and peaceful local settlements of in- dustrial disputes,” but he added that there was no need for change in the direction and organization of the Re- covery Administration now, further than to enlarge the present staff. Lays Uncertainty to Delay. Lund attributed uncertainty in the minds of business men largely to de- lay in framing and approving codes under the Agricultural Adjustment Ad- ministration. He advocated continuance of the practice which is essentially in effect now, under which trade bodies are| g, designated as code authorities. | Tund ' said industrial organizations ought to have the double function of | helping to administer the codes and at the same time keeping themselves free to agitate for and deal with such questions as Government economy, Gov: ernment competition with business and | taxation. | “It seems certain,” he said, “that a national organization such as is en- visioned by the Swope plan, set up to administer the codes with semi-govern- mental _authority, could not logically (Continued on Page 4, Column 1) GOVERNMENT BONDS BRING $519,312,201 New Issue on Daily Statement Is Oversubscribed by More Than Three Times. By the Assoclated Press. ‘The Government's new issue of bonds made its first appearance in the Treas- ury’s daily statement today, with an en- try showing that $519,312,201 had been sold. The offer originaliy was for $500,000,- 000 “or thereabouts.” The issue was oversubscribed by more than three times. Figures for the sale of the bonds were added into the receipts for November 1, the date of today’s statement, u% some comment on the extent of the owing into the Treasury on that date, e deficit for the year thus far. However, being borrowed money, it ; e other side of the | drafted the larger than the entire | Kent exchange for the Liberties. { RAISE FOR RETAIL MIEK DEMANDED Producers’ Association Aide| Says Increase Alone Can | Save Independents. Milk prices to the Washington con- sunfer must advance under the pro- posed milk marketing agreement for this area or small independent dairies | will be forced out of business, John Mc- Gill, jr. secretary of the Maryland and | Virginia Milk Producers’ Association, | testified today when the Senate District | Committee resumed hearings in the milk investigation. | MCcGill, the first witness, said the 3- | cent increase in price to producers pro- | posed in the code submitted to the | Agricultural Adjustment Administration would force a consumer-price rise or bankrupt small dairies. In answer to questions by Elwood H. Seal. special investigating counsel of the committee, McGill testified larger dairies were in a better position to take | care of the proposed incresse in pto- ducer prices because they are “operat- ing on & wider margin.” Costs Cited. He disclosed the production cost of milk was 29.67 cents per gallon, where- as the highest price now being paid to the dairy farmers is 28.25 cents. from which is deducted a 1-cent brokerage | fee. This price is only for class 1 milk and does not take into consideration i‘)fi{k prices paid for class 2 and class The average prices paid in the last five months to producers, according to | McGill's testimony, ranged between 22.59 cents in May, and 24.7 cents in September of this year. McGill was questioned closely by Seal as to his production figures. The in: vestigator cited a speech made by Mc. Gill on October 3 at Ashburn, Va., i which the producers’ association of ficlal declared an investigation had showed production costs at about 24 cents, but that he had said at that tine “we feel this is too low and would be harmful to our chances to obtain an | increase in the milk-marketing agree- ment.” Explains Statement. | McGill admitted having made the| statement, .but explained he did not| have at that time complete informa- tion as to production costs. Under /| questioning -by Seal, however, he said | that Montgomery County producers had submitted a production cost of about 27 cents, while those in Virginia #7er- aged about 24 cents. He said that he had not “worked yp any figures” of his own, Under questioning by Chairman King | McGill asserted he did not believe milk vrices here are too high. “What about prices in Buffalo, for instance, and other cities?” asked Sen- r King. “But it is not the same quality milk,” McGill demurred. 4 “That is simply a matter of opinion,” King retorted. Questioned further about the milk- marketing code, McGili testified he agreement without con- sultation with Government officials. “Were you bold enough to take the code to the Agricultural Department alone and without knowledge before- hand of Agricultural Adjustment Ad- ministration approval?” Chairman King asked. “You did that because Dr. King (Clyde L. King), milk arbitrator of the Agricultural Adjustment Administra- tion had approved it?” Now Denies Code Identical. “As a matter of fact,” Seal inter- jected, “it is identical with the Balti- more code which already has been approved, is it not?” “It is not.” Seal and McGill then argued the point_and finally the milk producers’ (Continued on Page 2, Column 8.) SENATOR KENDRICK SHOWS IMPROVEMENT Physicians Say Illness at First Laid to Celebral Hemorrhage Is “Uremic Coma.” By the Associated Press. SHERIDAN, Wyo., November 3.—The tenacity which has been one of the ouf .| Eight parts of the city, “From Press to Home Within an Hour” The Star’s Carrier system covers every city block and the regular edition is deiivered to city and suburban homes as fast as the papers are printed, Aeokok g . Yesterday’s Circulation, 1 UP) Means Associated 17,775 e TWO CENTS. Pre 0 I~ — . LA GUARDIAM'KEE RACE IN BALANCE, OBSERVERS CLAIM 0’Brien Admitted Poor Third, Al Smith’s Fortunes Linked to Result. TAMMANY WILL CALL IN “WARRIOR” IF DEFEATED Roosevelt to Find Solace in Victory for Any Candidate—Farley Backs Judge. e BY G. GOULD LINCOLN, NEW YORK, November 3.—New York is the finest three-ring political circus today that has been developed in a long time. The Tammany Tiger and Mayor John P. O'Brien occupy one ring, Fusion and Maj. Floriello La Guardia are giving the performance in the sec- ond. The Recovery party—a brand-new JOHN H. FAHEY. —Underwood Photo. ONE DEAD IN NINTH HAVANA' BOMBING . Disorders Continue as Men- dieta and Followers Ask Grau to Resign. By the Associated Press. HAVANA, November 3—A bomb explosion in a bakery at San Miguel and Gervasio streets today killed one person and wounded five. It was the ninth bomb explosion of a day marked by the statement of Carlos Mendieta, Nationalist leader, that he and his followers were asking the resignation of President Ramon Grau San Martin. A short time after the bakery blast another explosion in another section of the capital wounded one person. Employes of the public works de- partment found a 16-inch bomb inside their building. The burning fuse was extinguished but work was discontinued and the building was cleared while the bomb was placed in a bucket of water pending arrival of police. Mendieta, along with his revelation concerning the _ President, ~ virtually blasted the hopes of administration supporters for a coalition government. “It is not a question of cabinet port- folios, nor jobs, nor representation in the government,” said Mendieta. “The g::saon “( thxl:u Preslig‘ent Grau lacks rce of public opinion necessary to govern Cuba.” p i Own Name Proposed. “You know,” he continued, “that my name has been proposed by the revolu- tionai sectors - for the provisional In reply to a question, “Were you not actually offered the presidency?” he re- plied in the affirmative, but added, “I refused because of many considerations, among them principally the Nationalist agreement not to accept positions in any provisional government.” “In my personal opinion,” the polit- ical leader said, “none of the opposition sectors will accept a coalition pro- Mendieta then left for a conference at the residence of another political leader, Cosme De La Torriente. Other Natlonalists expressed - the opinion that “the government is dying,” adding that they were “seeking an in- jection of new blood.” The revolutionary junta named a commission of four to work out con- ciliation proposals. Bombings Renew Disorders. ‘Three bombs exploded in quick suc- cession in Havana early today, marking & resounding renewal of disorders ac- companying Cuba’s political and eco- nomic unrest. The first let go shol - night to be louowagd wlt.rl}lu{ ll::!" x;-ilfi- utes by another in midtown Havana that shattered store windows and dam- aged Angeles street. The third slightly damaged the home of & former army major, Jose Cabreras. No_one was hurt. in different Mmdb)omupmhmmnm Daniels Confers on Settlement. MEXICO, D. F., November 3 (A — Daniels conferred for an hour late yesterday with Acting For- eign Jiminez ap- ly in mnmwlu: :;c:ltlhuom for & lum settlemen Mex- iw-vnmm pected an agreement will be before the end of the year. I FAHEY HEADS William F. Stevenson Quits Post in Letter to Roosevelt. By the Associated Press. . William F. Stevenson of South Caro- | lina resigned today as chairman of the Home Loan Bank Board, and President | Roosevelt appointed John H. Fahey of | Massachusetts to the office. House, continues as a member of the board. In reorganizing the home owners’ re- lief agency, the President appointed T. D. Webb of Teniessee as vice chair- ; man. Stevenson, in a letter to the Presi- dent, suggested adoption of a rotation system for chairmen of the Home Loan Board and in line with that asked to | be_relieved of the chairmanship duties. Mr. Roosevelt, who has been reported | as desiring greater speed by the board i ortgages, readily agreed Stevenson, who was defeated for re- election in 1932, was appointed chair- man of the board by the President last Spring. Fahey and Webb also are mem- bers of the board. Stevenson’s Letter. Stevenson’s letter of resignation was dated October 26. It follows: “My Dear Mr. President: “The Federal Home Loan Banks have are operating successfully. “The Home Owners’ Loan Corpora- tion has now been fully organized on lines heretofore discussed between us. It has 257 offices in Continental United States and one in Honolulu, to which the staff has been appointed, but has not yet reached the scene. This has been” a stupendous job and it is now completed and is going on to accom- plish its purpose. | “I take the liberty of calling this to | your attention, and suggesting that it | would be most acceptable to me if you would now devolve the duties of chair- man on one of my colleagues, as it will be in line with the policy of many of the boards to rotate the chairmen, and (Continued on Page 2, Column 5. JAPAN'S TROOP MOVE HINTS SOVIET TROUBLE |Sudden Withdrawal From Demili- tarized Zone.Arouses Interest in Peiping. By the Assoclated Press. PEIPING, November 3.—With specu- lation rife regarding possible trouble between Russia and Japan in Man- churia, great interest has been aroused by Japan’s sudden complete withdrawal of troops from the demilitarized zone. ‘The Japanese began withdrawing the troops some time ago, in accordance with terms of the Tangku armistice. ‘With the sudden complete withdrawal a full Japanese division now will be made available in Northern Manchuria in case relations with the Soviets grow ‘worse. Reversing its former stiff attitude, Japan allowed Chinese police to bring artillery and machine guns into the neutral zone to fight bandits—thus con- stituting a police military body capable of controlling the area. Despite the withdrawal of troops from the so-called demilitarized zone, how- ever, China's Great Wall from Shang- haikwan - to Kopeiko, remains in the hands of the Japanese, who do not in- tend to evacuate, a Japanese military attache declared today. NINE DIE AS FIRE RAZES TENEMENT IN BROOKLYN Police Order Investigation After Finding Six Children Among Dead. NEW YORK, November 3 (#).—Nine six children, clothes. Police said the origin of the fire was reached | of suspicious eharacter and ordered an investigation. HOME LOAN BOARD Stevenson, a former member of the just passed their first anniversary, and | idea—and Joseph V. McKee, addressed &s “Judge,” are staging ap eleventhe hour race in the third. Incidentally, the G. O. P. elephant is nosing his way into the La Guardia |ring. while Postmaster General James A. Farley, political manager for the Roosevelt administration, is holding | McKee's coat. The Farley declaration for McKee in Washington last night has been very satisfactory to the McKee camp. McKee Pleased. | McKee, who not so lorig ago an- | nounced ‘that a vote for McKee was & vote for Roosevelt and a vote for La Guardia was a vote against the Presi- dent, was undeniably pleased with the statement of Mr. Farley. He made this comment today: “I am grateful for the expression of confi« dence in me on the part of Postmaster General Farley. It shows that he places me in the same class as President Roosevelt and Gov. Lehman. "In Tammany quarters there was re. sentment against Farley, particularly in view of the fact that the Democratic State Committee of which Farley is chairman adopted a resolution on mo= tion of John F. Curry declaring its support of all regular Democratic nominees. O’Brien was the regular nominee for | mayor, Party Lines Shattered. ‘The manner in which party lines have been smashed in this three- cornered race for mayor of the city is little short of brutal. Indeed. the new all lents just don't make sense. However, that makes the contest all the more interesting. | McKee and O'Brien are both Demo- crats—McKee a Democrat of the Roose- velt brand, while O'Brien is faithful to | John F. Curry, the boss of Tammany | Hall. Democratic leaders and the rank jand file of the party have divided be- tween the two. But that is not all Maj. La Guardia, who was at one time elecied to Congress &s Socialist and more recently as a Republican, has the support of a lot of Democrats, anti- ‘Tammany, too. And La Guardia, who has the aid of the Republican organiza- tion and of former Secretary of the Treasury Ogden Mills, is opposed by such stanch Republicans as former State's Attorney General Albert Ott- Tt e s e Ruth 'ratt. Smith Still Missing. There is one familiar figure, the hero of ‘a score of political contests in New York, that is missing from the fray, Alfred E. Smith. The former Governor, instead of going to Brooklyn tonight for the final Democratic rally in that county, a party that he has not missed for 17 years, went to Southampton and will not return until Monday, or until the campaign is all over but the voting. He has resisted all efforts of his old friends in Tammany and out to get him to take the stump for Mayor O'Brien and the regular Demo- cratic ticket. In his place at the rally in Brooklyn will be Senator Royal 8. Copeland. It has been reported that Al Smith was disgruntled because he was not consulted by Curry and John H. Mc- Cooey, Brooklyn Democratic leader, be= fore the Democratic ticket was named. But it is also understood that Mr. Smith does not regard Mayor O'Brien as the candidate who should have been chosen, and that anyway, he has no love for John F. Curry. While Mr. Smith is out of the pic- ture right now, he is likely to loom e in the reorganization of Demo- cratic organization—which means Tam- many—should La Guardia be elected (Continued on Page 3, Column 1.) . WHITE STAR-CUNARD AGREEMENTREPORTED New Amalgamated Company Would Finish and Operate New Giant Liner. By the Associated Press. LONDON, November 3. —Reports in British shipping circles today were that an amalgamation of the Cunard and White Star Lines by means of a new :;eo;atmz company had been agreed The shipping circles understood the proposal was under final consideration at & meeting of the directors of the two lines in London today. It was understood the main object of the new company will be to operate the new giant Cunard liner lying unfinished on the stocks at Clydebank. Already £2,000,000 (about $8,600,000 currently) have been spent on the liner, with £2,500,000 (about $12,000,000) still needed. A government loan of $5,000,- 000 has been proposed, bu’ “> sovern- ment has insisted that the White Star and the Cunard companies reach & working agreement before help is given. Guide for Readers Amusements Comics .... Features Financial Lost and Found Radio Serial Story Society . Sports .. q