Evening Star Newspaper, November 17, 1933, Page 1

“From Press to Home Within an Hour” The Star’s Carrier system covers every city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. Closing N. Y. Markets, Pages 12,13 & 14 he b 32,707. N Entered as second class matter 0. post office, Washington, D. C. WASHINGTON, D. C, FRIDAY, NOVEMBER 17, 1933—FIFTY PAGES. enin WITH SUNDAY MORNING EDITION French Gold Price Stability Claim Is Denied by Harrison LTVNOFF EXPETS STATEHENT TODAY ON REGOGNTION Answers Reporters’ Ques- PARIS, November 17.—High financial tions for First Time Since - | authorities said today that assurance - L had been given by George L. Harrison, His Arrival. governor of the New York Federal Re- serve Bank, that a stable and perma- nent price for gold soon will be fixed on SEES PRESIDENT AGAIN | the American market. | They said Harrison telephoned from AND TALKS WITH BULLITT | New vork There was much uncertainty in bank- ing circles as to whether this would affect the American dollar, since it was felt the dollar had broken away from the control of the gold price at present. NEW YORK, November 17 (#).—It was emphatically denied at the New York Federal Reserve Bank today that Paris Financiers Say He Gave Pledge of Policy Change in Phone Talk. Plans to Remain Here After Roose- velt's Departure to Wind Up “Some Business.” Associs . r. e White House after | _(Continued on Page 2, Column 8) Maxim Litvinoff told reporters he “thought there would be a statement | today” on recognition of the Soviet by this Government after 16 years of | George L. Harrison, its governor, had | abnormal relations. It was the first time since arrival of the foreign commissar that he has answered questions by newspaper men, and his attitude was a further indica- tion the elimax of the négotiations be- tween himself and the President was close at hand. Litvinoff added, however, that nnyk * TN REDCTED Pittman Tells Monetary Par-| | ley Here That President Is Studying Plan. By the Associeted Press. | Prediction that President Roosevelt | would act for the “restoration of silver” was volced today before a monetary conference here that heard also a call for inflation through the issuance of “greenbacks or currency backed by silver,” Senator Pittman, Democrat, of Ne- vada, in a statement given to a group iol Senators and economists gathered in at 15'; to 1, and the United States 15 to 1. Subsequently the United States DOLLAR REGOVERS SLIGHTLY AS GOLD PRIGE HOLDS LEVEL |Administration Keeps Rate | for Metal at $33.56 for Fourth Consecutive Day. ACTION SEEN AS EFFORT TO STOP FLUCTUATIONS Reports of Embargo Plan Denied. Sprague Silent on Rumored Offer to Resign. By the Associated Press. For the fourth successive day, the administration held the price of do- mestic newly mined gold at an un- changed level today, an action which many interpreted as increasing evidence of an effort to steady the wildly fluc- tuating dollar. The quotation announced, $33.56 an ounce, was well below the world price of the precious metal, which ranged upward from $33.84 at the opening exchange rate of $5.28 to the pound at London. The dollar at this figure was 20 cents stronger than at yesterday's London close, but it quickly weakened and ran down to $5.40, only to recover to $5.34. Embargo Rumor Denied. Rumors flew thick and fast, prom- inent among them a report, later de- | nied in Government quarters here, that the administration was preparing to clap an el on export of capital and the offering of dollars on foreign exchange, on the strength of 'hI:Ch the cular re- is buying Eold abroad at present, would not say. They P purpose behind the domestic and foreign purchases is to increase price of gold in the expectation of ces upward. ite trend However, s coincident result has been insettic the doliar and set it to | | HOLLAND RENEHS ATTACK ON PROBE Throws Overton Investigation Into Uproar for Fifth Consecutive Day. | By the Assoclated Press. NEW ORLEANS, November 17.—For the fifth consecutive day, John G. | Holland, investigator for the Special the | Senate Subcommittee inquiring into Senator John H. Overton's election, threw the session into an uproar by | mittee. During the examination of a witness by Au‘en Ellender, lnéh eC)V'Clrull’l why he had waited until today to Ap- e ook 2| B s e, G Lot down- land. been skide —obvi- The dollar had d;‘:( Jig | sired. But late yesterday it rebounded | igorously in New York, in terms of ;fir currencies, closing at $5.26 to the pound sterling as against a peak of $5.52%. Commaodities Stronger. At the same time, Wall Street took cognizance of reports that there would be Federal action of some sort to stem the export of capital through foreign exchange control, although Washington | officials denied knowledge of such steps. ! first fixed the ratio at approximately Commodities strengthened, cotton and | wheat went up, Government bonds after Uy of the | increased the value of the gold dollar, | early heavy iaies and declines stiffened Papers [Necessary in Talks, Beveral months ago, Phillips ex- plained, Ughet wformed the Depar.- ment of State he woula be unabie to continue as an and turned over ‘w ;Ju Government the embassy and its_furnishings. Phillips said it developed there were they can easily be A formula for handling the debt ques- tion presented a major difficulty in the Roosevelt-Litvinoff conversations. The Soviet had refused to recognize any obligation because of loans to the Ker- | ensky government. American loans amounted to $187,000,000, but accumu- lated inverest since pushed the total over $300,000,000. The Soviet government, however, in- dicated a willingness Lo talk about debis claims. Those filed against Russia by United States nationals amount to about $400,000,000 and include about $86,000,000 of old Czarist flotations. Russia, for her part, has an untotaled claim Archangel and Viadivostock expeditions. Understandings reached by Mr. Roose- velt and Litvinoff were believed to cover such issues as propaganda, religious worship and trade relations. In connection with trade, observers placed emphasis on the resignation of Harry F. Payer as Assistant Secretary of State to become special counsel on foreign trade to the Reconstruction Pinance Corporation. Payer is a stu dent of Soviet commercial activities. Secretafy Wallace, however, said yes terday he personally disapproved a long-term loan to Russia for the pur- chase modities if the United States retained its high tariff walls. Arms Tangle Reviewed. ‘Two other subjects reported to have reviewed by Mr. Roosevelt and the United States for the | of American agricultural com- | | making the ratio 16 to 1, which it is | now. | Price Forced Far Down. | The final demonetization legislation | against silver in various countries was | about 1873, at the same time that the | United States Government went upon | | the single gold standard. Silver, said | Benator Pittman, had been maintained | at a stable price thereafter until 1893, when the Government ceased coining standard silver dollars and silver | dropped from $1 an ounce to around 60 to 65 cents. The price remained there or thereabouts until, after the World War, the governments of Great Britain, France, Belgium and other | countries commenced to melt up their | silver colns and to dump the sfiver 50 | derived on the markets of the world. ; , in 1928, India joined in this | process, the price of silver was forced down. “There is estimated to exist in_the | world today,” continued Senator Pitt- , man, “about $12,000,000,000 in mone- tary gold and about 12,000,000,000 (Continue olumn 3 DOOMED SLAYER SAVED | | Sentence Commuted Hour Before Scheduled Execution. RALEIGH, N. C, November 17 (#).— | | Gov. Ehringhaus today commuted the death sentence of Luth McLamb, Johns- | | ton County farmer, to life imprison- ment The announcement was made an | hour before McLamb was to have been | electrocuted for the murder of George | Hudson. McLamb steadfastly maintained he | killed the man in a “drunken brawl.” | e | A story of romance and adven ture in the Canadian woods FORBIDDEN VALLEY By William Byron Mowery a little in later tradings. One bond influence, it was agreed, | was disclosure in the weekly Federal | Reserve statement that Reserve banks last week bought only $2,000,000 of the Federal securities. This contrasted with an average of $10,000,000 for the last several weeks There had been reports that the Fed- eral Reserve was buying bonds heavily to keep them up. but Wall Street was impressed to find that the recent sales had been absorbed mostly by investment purchases. COMMUNIST UPRISING Witness Says Arms Were Ordered Distributed Four Days Be- fore Reichstag Fire. By the Associated Press. Communist functionary, Otto Grothe, Building fire trial today that the Com- munist party was ready for an armed uprising in Pebruary. The fire which damaged the Reich- stag Building occurred in the night of February 27, and the prosecution charged a Communist plot lay behind the arson. Five men are now accused lives as a result. Grothe sald the Comm were held in a constant state of irm after Adolf Hitler's appointment ag chancel- | lor on January 30. Further, he testified, Communist sub- leaders ordered the distribution of arms | among the members just four days be- fore the fire. Grothe said he recalled that an ac- quaintance, another Communist named Kemper, carried fuel for the fire to the MEXICAN PLOT FOUND Revolt Against Government. ‘TAMPICO, Mexico, November 17 A manhunter, tracking an inter: Starting on Page C-7 of Today's Star, CONSPIRACY ALLEGED BERLIN, November 17.—A former | testified in the German Reichstag | of treason and are on trial for their | Agrarians Arrested Confess Plan to (). was than a year investigating.” Leaping Hnihnd shouted 1 object. rhe mmg‘m' f that ques: tion is unfair. I have not been per- mitted to come into this State for nine months to gather such testi- mony. I have never seen this witness before.” Co-operation Asked. Chairman Connally (Democrat) of Texas ordered Holland to sit down, and then said: “The committee is trying to get the truth. Mr. Holland is an empioye of this committee, but he seems to want to | dominate the committee and not to help us produce testimony. Blinded by head- lines, he has been attacking the com- mittee, particularly me and Senator Logan. He thinks he should examine | witnesses. If he is sincere, he will help | the committee. He knows, and every- body else knows, we are trying to get the truth. Some people want this in- | vestigation broken up so they can say it was a farce. of everybody on both sides.” Cheers and Boos. Mrs. Hilda Phelps Hammond, chair- man of the Women's Committee of Louisiana, which is seeking to oust both Overton and Senator Huey Long, Over- chairman to refer to the ruling made at the opening of the investigation by Senator Logan, that held that neither side would have counsel to cross-ex- | amine witnesses, as the committee | would do the examining. | The crowd broke into boos and cheers and shouts of “Throw her out!” and “Go | 2"%ad, Mrs. Hammond!” The chairman | said that her request was “not mate- rial at this time. the ruling.” The record will show ord be read, but Chairman Connally said, “Mrs. Hammond, I will not per- mit you to usurp the function of this committee. I will not permit you to use this committee as a sounding board to advertise yourself.” Logan Voices Thanks. | Then Senator Logan arose to say: | | I could not get along well without him. Regardless of what he has said about want to get through. everybody for their courtesies extended {to me. T think the committee should adopt some time for quitting. We can shouts of censure against the com- | I ask the co-operation | ton's backer, trom the Senate, asked the | Mrs, Hammond insisied that the rec- | “Mr. Holland is very helpful to me, and | me, I can work officially with him. We | I may have to | leave tonight, but I want to thank | Warmer Weather Follows Coldest Night of Season Rain Is in Prospect After Thermometer Regis- ters 17 Degrees. After the coldest night for this sea- |son in the 63-year history of the | Weather Bureau, the mercury was mounting today under a bright sun, | | with a definite end of the cold wavein | | sight. | | before sunrise, the temperature regis- | tered 17 degrees, more than 2 points | colder then the previous low record for this time of year, which was tied yes- terday. The cold failed to (Continued on Page 4, REFUSES TOARRE [YNCHNGSUSPECTS (Crisfield, Md., State’s Attor- | ney Believes Mob Would Free Them. record 5> By the Assoctated Press. c Md., November 17— State’s Attorney John B. Robins, said today that if he submitted to Attorney General William Preson Lane jrs re- quest to have nine men arrested for the Princess Anne lynching of October 18, another mob probably would take them out. “I don’t believe those men would | stay in jail,” sald Robins. “I believe a crowd would form and take them away.” The Attorney General announced last night he had forwarded the names of nine persons alleged to have been i members of the mob that lynched George Armwood, colored, and asked Robins to have them arrested and taken before a magistrate. ° “If Lane wants those men arrested. let him come down' here and arrest them,” ‘the Somerset County State’s attorney said today. In Accord With Views. “I am in full accord with the attor- ney general in wanting a full and thorough investigation, but I am op- posed to the procedure he advises. “He wants to have the nine men arrested and taken before a magistrate. If we did that, there would be lots of excitement and lots of publicity. The magistrate might feel he should order those men held on a charge of mur- out bail. “I seriously doubt that they would stay there. “I gave Lane my reasons in the let- ter he received this morning. I told (Continued on Page 5, Column 1. L Twelve Drowned in Flood. BELGRADE, Yugoslavia, November 17 P).—Twelve persons have been drowned and thousands made homeless by floods in the Lake Scutari district. Damage on the Albanian side of the area also is reported heavy. (Continued on Page 2. Column 5.) Ten Tons of Gold Shipped. VERA CRUZ, November 17 (#).—Ten tons of gold—in ba d in_colns— was shipped today aboard the liner Siboney to London by way of New York. In the same liner went 10 bars of silver for New York. {PARLEY AT WHIT President Roosevelt’s conference to- ference could not be looked upon as an act of indifference or lacking in because Mr. several days 5 g 58 {FESE i L '| do hi broad: E HOUSE HALTED | |FOR LITVINOFF TO PHONE FAMILY | ence for this pur] 3 | arrangement was for Mr. is talking from the At 6 o'clock this morning, shortly | der, and they would be put in jall with- | o Star FEDERAL CONTROL : OF MARKET URGED Goldman Proposes Drastic Regulation in Letter to Senate Investigators, | By the Assoclated Press. Creation of a Federal board to regu- | late stock exchange practices was recom- | mended today in a letter to the Senate Stock Market Committee from Henry Goldman, jr,, a member of the exchange. Goldman submitted his recommenda- {tion in a letter to Chairman Fietcher, inclosing a letter he had written the | securities which are not only legal, but fair and equitable to all concerned.” Would Have Broad Power. The board should have power, he said, the activities of stock exchanges, stock exchange firms and stock exchange | members.” 5 | here the most drastic ever proposed by a member of the exchange, were placed | before the committee today by Fletcher |at the opening of the hearing into organization of General Theaters Equip- ment, Inc. The committee chairman character- | ized them as very important, but made | | no comment on the wisdom of the pro- posal. Goldman said he was proposin; means by which the exchanges could operate “without the constant storm of | criticism from the Government and the vast public.” Sees Confidence Lost. “In my opinion,” Goldr banks, bankers and stor’ ‘d, “the anages of | the country have lost t ‘fidence of | the public and I believe _ :his confl- dence must be restored as a part of the general program of recovery. “The securities act of 1933 is the | direct outcome, in my opinion, of the acts of banks and bankers. That re- form was necessary, I agree 100 per cent, and I likewise agree that a reform of Stotk Exchange practices s also | necessary. “Men that I have contact with in my business life consider you and your com- mittee the enemies of Wall Street. I, for one, do not.” Quizzed Banks Listed. The committee made public names of 34 banks which have been subpoenaed to answer a questionnaire | showing the funds they have loaned for | market operations during the past five | | years. | The questionnaire was sent to the | banks to supplement information being | gathered by the committee through a | questionnaire to members of all stock | exchanges. Committee agents said 40 banks had been sent the questionnaire, but made public ‘only 34. They were: New York—Chase National Bank, Na- tional City Bank, Guarantee Trust Co.. Bankers' Trust Co. Central Hanover Bank & Trust Co., Bank of Manhattan Co., New York Trust Co. Chemical Bank & Trust Co., First National Bank | of New York, Irving Trust Co. Chicago—Continental Illinois National |Bank & Trust Co.; First National; Northern Trust Co. Detroit—National Bank of Detroit. Bugnme—nm Wisconsin National ank. 8an Prancisco—Bank of America Na- tional Trust & Savings Assoclation: (Continued on Page 5. Column 1.) P AT LINDBERGHS REQUEST MARINE INFORMATION Flying Couple Expected to Return Monday Via Lisbon and i | the | BRP to “supervise regulste and scrutinize | W Goldman’s recommendations, believed | 4 'CODE VIOLATIONS | tore Federal Judge Yesterday’s Circulation, 117,969 (P Means Associated Press. TWO CENTS. CAPITAL, IN LEAD, OPENS WORKS DRIVE WITH 4200 IN J0BS President’s National™ Pro- gram Changes Million From Relief to Pay Rolls. 12,000 TO GET WORK HERE WITHIN A WEEK Federal Allotment Will Include 3,000 More if Needed to Take Care of Unemployment. The civil works employment program initiated by President Roosevelt was set in motion in the District today ahead of any other section of the country. All told, 4,200 men and women, previously recelving financial assistance from the District in return for services on “made work” projects here, today were employed under civil works status. This is the first contingent in the Dis- trict engaged under the new program, Wwhich is to employ as many as 12,000 before the end of next week. The Fed- eral Civil Works other equipment needed at once on highway improvement projects. $1,000,000 for Supplies. All told, it be used for the supplies and tools and the renting of rolling equipment. Circular bids will be sent to contractors for this material. Trained foremen are to be engaged to direct the work of unskilled laborers on various work projects, Many con- struction foremen in the District serv- ice will be engaged in these as a contribution by the District. Indications are that the Federal Civil Works _Administration will _dt te (Continued on Page 6, Column 4.) TRIAL SET FOR FRIDAY Brooklyn Filling Stations Proprie- tors Released Under $1,000 Bond Each. By the Associated Pres: ! BROOKLYN, N. Y., November 11— Federal Court trial was set today for next Friday, on charges contained in what the Government declares is the first indictment brought for alleged | violations of an N. R. A. code. The case is that returned against Hercules Filling Stations, Inc., by * Federal grand jury on an indictment charging nine counts of violation of the petroleum code. The, corporation’s heads, David Lind and Moe Levine, pleaded not guilty be- Clarence G. Galston, | were released under $1,000 bond | each. Judge Galston set the trial date for November 24 The indictment was returned yester- day, six counts charging violaf of the | the and | B is expected u,goo,ooo will | of HAZEN QUTLINES Y COVERNMENT REGROUPNG LAN Considers Reducing Dono- van’s Duties—Police Prob- lems to Be Studied. COMMISSIONER ANXIOUS TO CLOSE SPEAKEASIES New Officials Besieged by Job- seekers for Posts as Depart- ment Heads. Reorganization of some of the Dis- trict departments, and a study of police problems, will be among the first official acts of the two new civilian Commissioners, Melvin C. Hazen and mu{l A“::E it was learned au- oritatively ay at the District Building. v Commissioner Hazen indicated he would center his attention as soon as possible on the office of Maj. Daniel J. Donovan, sudif and budget officer, with a view to relleving him of some of his ml’ dutles. The new s i £ E HEEh ig FBEX il ‘_E e § ce. Besides the efforts being made by job seekers for positions as dep-menh. it Commissioners l;:dl, the n"wl ve n th e TR ey | tually "all of which are under civil urme.‘ Many of tll;u nppllmn'e; hlu:: asked for personal interviews with Commissioners. Bof Scordema vl e “open door” policy of the ney administration. The & missioners, however, have let it become known that there is little hope for the | job seekers. Hazen Named President. Mr. Hazen was elected president of Ahe board by his two colleagues, Mr. Allen and Maj. Gotwals, at the first formal meeting of the board yesterday afternoon. Allen was named vice Ppresident. At the same time the two new Com- missioners Department om of n;e D{:‘mfl assessor, collector of es and auditor, the department of vehicles and traffic, the deptnmmtt of weights, measures and markegs, the office of the District veterinarian and (Continued on Page 2, Column 3.) AMERICAN FLEET REPELS eacing ‘ENEMY’ ON PACIFIC COAST Adaptability of Aircraft in War- fare Again Is Shown in