Evening Star Newspaper, June 26, 1934, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Mostly cloudy, possibly showers late to- night or tomorrow; not much change in temperature; gentle shifting winds. ‘Temperatures—Highest, 91, at 3 pm. yesterday; lowest, 67, at 4 a.m. today. Full report on page A-3. “From Press to Home Within an Hour” ‘The Star’s Carrier system covers eve; city tlock and the regular edition delivered to city and suburban homes as fast as the papers are printed. Closing N.Y. Markets Pages 16,17 & 18 b No. 32,928. post_office NATIONS PREPARE T0 REBUILD FLEETS U. S. Would Lay First Bat- tleship Keel in 16 Years in 1936. BRITISH ADMIRALTY ASKS 70 CRUISERS MacDonald's Efforts to Curb Construction Seen as Vain Hope. BY CONSTANTINE BROWN. The keel to the first American battleship to be built since 1920 will be laid early in 1936, unless the next Naval Conference proves to be a sul cess. In well informed quarters it was stated that should the Naval Confer- ence fail, the five powers which signed the Washington naval agreement in 1921 will be free again to start re- placements of capital ships. These provide the replacement of one bat- tleship in 1936, two in 1937 and so on The actual replacement should have started in 1930, but at the Lon- don Naval Conference of that year it was agreed between the five signa- tories, Great Britain, the United States, Japan, France and Italy that the program should be postponed until the next conference in 1935. During this time none of the mari- time powers replaced their capital ships but two nations. France and Italy recently began construction of the 75,000 tons allotted them in 1921 in that class of vessels. Preparations Begun. It is reported that in spite of the conversations which are going on in London among the diplomatic repre- sentatives of the five powers prepara- tions are being made in every country for beginning the replacement of the obsolete ships. The life of a battleship was agreed not to exceed 20 vears. The keel of America’s latest ship of this type, the West Virginia, was laid down in 1920. The others are much older and would have been due for replacement in 1930 if the London naval agreement had not provided otherwise. Had it not been for the Washington naval agreement of 1921, when the American Navy swapped brand-new battleships for the blueprints of other countries, the American battle fleet would be more modern than any other in the world today ‘The Washington treaty provides that unless notice of its termination is given by one of the signatories the agreement should last for another two Years. But since that treaty was sub- Ject to the decisions to be reached at the conference scheduled for 1935 the replacement of battleships will begin when the London naval agreement ends This does not change the nature of the Washington treaty, since the same ratios are maintained, and will not be considered as a denunciation of that pact. It merely gives the sig- natories the right to avail themselves of the privilege to modernize their fleet by disposing of the ships which have reached the age limit and re- place them by new units. No Agreement Seen. ‘The pessimism concerning the pos- sibility of reaching an understanding at the next conference continues to shroud the London conversations, de- spite the effort of the diplomats to adopt a more cheerful tone. It is true that Ramsay MacDonald has indicated he would like to see an actual reduction at the next confer- ence instead of the upward limitation which the British Admiralty de- mands. But MacDonald has always been a partisan of downward revision of armaments and always has been defeated in this purpose by the strong stand of the British Admiralty, which is taiking national defense and the protection of the sea lanes against any combination of enemies. It is believed that today more than ever before, when the British public opinion is awake to the dangers of a new European conflict, the Admiralty, which presented demands for an in- crease of the navy, will have more to say than MacDonald, who appears to disregard at present their demands. Under the pressure of public opin- fon, which in 1930 hoped that a new era of peace and lisarmament was possible, the Admiralty yielded to MacDonald and gave up its claims for 70 cruisers, which they had demand- ed at the Geneva conference in 1927. Today the situation has been re- versed and because of the latent pos- sibilities of a new war, the Admiralty demands again 70 cruisers for the British navy. § In order to continue the conversa- tions in a less strained atmosphere, MacDonald is reported to have in- formed Ambassador at Large Norman H. Davis that these were merely tentative demands, which should not (Continued on Page 2, Column 1.) DOCK STRIKE CRISIS EXPECTED IN WEST Federal Peace Efforts Renewed. Portland's Fuel 0il Is Exhausted. By the Associated Press. SAN FRANCISCO, June 26.—Fed- eral peace efforts in the Pacific Coast maritime workers® strike were speeded here today while Portland reported an exhausted fuel oil supply and California National Guard officers ‘were ordered to prepare for an emergency. Employers’ representatives and leaders of the 27,000 allied strikers may be brought face to face as a climax to a hurried series of confer- ences. said Edward F. McGrady, As- sistant Secretary of Labor, directing the mediation attempt. Charles W. Hope, executive secre- tary of the Seattle Regional Labor Board, predicted a solution was near. Hope said McGrady has “explicit orders” from Washington and in- tends to bring the strike to an end. Entered as second class matter ost office. W, R WASHINGTON, Voluntary G. O. P. Committee Formed to Battle “Old Guard” Organization Sponsored by Prominent IF ACCORD FAILS! Leaders in Effort to “Clean House” and Regain BY JAMES MARTIN MILLER. The National Voluntary Committee of the Republican National Party has Jjust been organized here. For several weeks a number of Republican leaders in Congress have had many confer- ences planning for the formation of the Voluntary Committee to work among the rank and file of the Re- publican party throughout the Nation, It is not the intention of the Na- tional Voluntary Committee to launch a third-party movement, but rather to prevent such a movement if pos- sible. The purpose of the movement is, its proponents declare, “to get rid of the ‘old guard’ and ‘standpatism’ within the party that have for some time, in secret alliances with the high captains of finance and industry, controlled and owned the Republican organiza- tion.” In this situation the loyal Re- publicans and patriotic American men JAPAN WILL PLAY MORE ACTIVE ROLE N NAVAL PARLEY Far Eastern Affairs Seize Spotlight at London Conference. By the Associated Press, LONDON, June 26—With the Anglo-American conversations in a desultory stage, Far Eastern problems grabbed the spotlight today in the world naval situation. Word reached London that Tokio suddenly had decided to play a far more active role in the sessions pre- liminary to the 1935 conference than was expected and that two admirals are being sent here to take over the technical end of the parleys. It was understood that Tokio's eleventh-hour decision was caused chiefly by Great Britain's statement of its maximum naval case last week, together with the speech made Satur- day by Sir Bolton Meredith Eyres Monsell, first lord of the admiralty, in which he said that international dis- armament has become a dream. Russia Raises Issue. Another factor—old but most im- portant—is the question of Russia’s admission to the preliminary discus- slons and to the 1935 conference, due to the constant efforts in Moscow and Paris to bring about a British invita- tion to the Soviets. The British have not changed their policy yet—they in- sist Russia and Germany will not be invited—but diplomatic circles doubt whether Great Britain is willing to chance a fight with Prance over the point after the quarrel between Sir John Simon, British foreign secre- eign minister, at Geneva over arms matters. Russian circles here indicated that | Moscow expects Far Eastern problems to play the biggest part of the 1935 conference despite Tokio's efforts to keep political questions out of it. Increase Is Sought. While foreign quarters continue to mull over Great Britain's naval pol- icy, British circles, which have just found out about the navy's wants have begun a guessing game as to the number of new cruisers and other light craft the government seeks. Most guesses conclude, however, that Great Britain really has restated its case of the 1927 Geneva conference when it said it needed a minimum total of 70 cruisers. While some unofficial British cir- build 30 new cruisers, in case the 1935 conference breaks up without an agreement, the concensus is that the number wanted is less than 20. Nevertheless, the wants of the navy as stated do, in foreign eyes, appear to be a big increase. There were no Anglo-American con- versations today, but it was regarded likely that discussions will be sched- uled for tomorrow. The United States delegation is sit. ting back, awaiting a British move The Americans feel they know the British policy fully but since the pur- pose of the conversations has not yet been discussed in detail, the Ameri- cans can only wait until the British bring up these matters for a full discussion. SNOW FALLS IN SIERRAS MINERAL, Calif.. June 26 (#)— Snow fell in this region of the Sierra Nevada Mountains last night, where only a few hours before people were complaining of the heat. The sudden storm left 6 inches of new snow at the summit of the new Mount Lassen loop highway. tary, and Louis Barthou, French for- | Confidence. and women voters among the common people 1n the Republican party were helpless. They came to realize that they were playing with loaded dice on election .day. Declared Democratic Condition. And this same condition also be- came true of the Democratic party; the men of great wealth and the mo- nopolies have practically controlled both parties. Instances are known in which the high captains of mo- nopolies have contributed liberally to the campaigns of both parties. But the task of the National Voluntary Committee is to bring the Republican party back to the fundamental prin- ciples of Abraham Lincoln and Theo- dore Roosevelt. “It is our purpose, when possible, to co-operate in every way with the Republican National Committee and “(Continued on Page 5, Column 1.) N.R.A. CONTENDS RETURN OF EAGLE BLOGKED BY MILL Harriman Firm Charges Per- secution—Closes Plant. 653 Made Idle. By the Associated Press. George L. Berry, recently a special N. R. A. emissary in the Harriman, | Tenn., hosiery mill case, told news- | men today he had recommended to Hugh 8. Johnson that the firm not be restored its Blue Eagle until it had agreed to a 15-point program put for- ward by himself. The mill closed down yesterday, putting 653 employes out of work. Mesnwhile, Gen. Johnson received a first-hand report on the closing from his field compliance adminis- trator, A. R. Glancy, who had just returned from Harriman. Johnson was generally expected to make a statement in reply to the Har- riman company’s charges that N. R. A. was “persecuting” the concern. Berry said he believed Johnson would stand behind his recommenda- tion. Mill Demurs. Workers at the mill, Berry said, agreed to his proposal. He said the management of the mill, however, had demurred on two points. These, he said, included a return of 50 strikers to their jobs without discrimination. and the creation bf a board of mediation to seetle labor- management disputes. Berry has not visited the scene of the dispute at Harriman for several weeks. Glancy has replaced him. N. R. A. officials said Berry was | still directly In charge of the Harri- | man case, having handled it since | his trip to Tennessee several weeks ago. It was reported that he has been in frequent telphonic communi- cation with Glancy during the latter’s investigations there. Berry is a divisional administrator, but was chosen because he comes from Eastern Tennessee. Labor Board Silent. The National Labor Board had no immediate official statement. Milton Handler, the board's general counsel, declined to “dignity with a reply” the statement in the Harriman letter that he had suggested “trickery be utilized to deceive the strikers in set- tling the strike.” Labor Board officials said every agreement proposed by the board was made with the full indorsement of representatives of Harriman employes and that the board was unanimous in all its actions. The Blue Eagle was removed from the mills on recommendation of the National Labor Board which charged mill officials with alleged violation of the hosiery code by refusing to bar- gain collectively with its employes. The controversy between the mills and the N. R. A. resulted, followed the alleged discharge by the mills of employes for their union activities. Several hundred employes of the mill have been on strike for several months. They are members of the United Textile Workers' Union. PERSECUTION CHARGED. Mill Claims Justice Department Found No Violation. HARRIMAN, Tenn., June 26 (#).— The Harriman Hosiery Mills, carrying the dispute over its Blue Eagle to a climax, was shut down today and a company official charged that N. R. A. Administrator Hugh S. Johnson “set out to wreck this concern.” T. Asbury Wright, jr., attorney for the company—one of the largest to lose the Blue Eagle—made public & letter to Gen. Johnson, asserting the (Continued on Page 2, Column 4.) RAILROADING NOVICE BECOMES “KATY” HEAD AFTER 2 MONTHS By the Associated Press. NEW YORK, June 26.—Matthew S. Sloan, who two months ago was made chairman of the board of the Mis- souri-Kansas-Texas Railroad without previous experience in railroad man- agement, today also became its presi- dent. Sloan has reversed the traditional success saga of the poor boy, who, starting out as a day laborer. worked up to be president and finally chair- man of the board of a great railroad system. Sloan, at 53, retired head of the billion-dollar New York Edison Co. and its affiliates, two years ago start- ed at the last step of a railroad ca- reer—as chairman of the board of directors. So impressed were the di- rectors with his survey of the rail- - oy road and his policies during his two- month tenure that they made him also president. Sloan retired from the Edison com- pany because “he wanted to take things easy.” However, he found inactivity irksome, and when “Katy” directors, casting about for a trained business executive, offered him the chairmanship, he accepted because he had found, he said, “it's more fun to march in the procession than to stand on the sidelines.” General offices of the Katy are lo- cated in New York City, St. Louis and Dallas, Tex., but since Sloan be- came chairman of the board they have been in his private car “on the line” traveling over the system. Sloan is a native of Mobile, Ala., and a graduate of the Alabama Poly- technic Institute. . ¢ Fpening WITH SUNDAY MORNING EDITION C, PRESIDENT TALKS ON AR THURSDAY. SUBJECT SECRET Report on State of Nation Expected—Sails Sat- urday. BARS POLITICS FROM SUMMER ADDRESSES Mountain of Work Confronts Executive Before Hawaii Trip. President Roosevelt will talk to the Nation over the air at 9:30 pm. ‘Thursday, presumably to give a report the state of the Nation's affairs. He has given a few such talks since he became President. The subject of the forthcoming address was not re- vealed. Returning to Washington from a trip into New England, the President emphasized that he had no intention of injecting politics into any talks he may make upon his return across the country from the West Coast this Summer. This word was given out through a secretary, Stephen T. Early, as a re- sult of speculation on the political significance of Mr. Roosevelt’s cross- country trip this Summer during his journey from Hawaii. Will Leave Saturday. After making his talk to the Nation, Mr. Roosevelt will clear up his desk Friday and depart Saturday (mmI Annapolis on his cruise. Mr. Roosevelt worked today on Gov- | ernment business which must be dis- posed of this week. He signed some bills, including one authorizing formation of a corporation to insure more effective diversification of prison industries, “I am glad to approve this bill,” he said in a statement, “because it repre- sents a distinct advance in the progress of prison industries. tion with private industry or labor, the Government can provide increasingly useful work for those who need to learn how to work and to learn that work in itself is honorable and is a practical substitute for criminal methods of earning one’s livelihood.” To Call at Haiti. Mr. Roosevelt has a call at Port au Prince, Haitl, on his tentative program for the cruise to Hawaii. The prison bill, written by Rep- resentative Tarver, Democrat, of Geor- gla created a Prison Industries Board, composed of representatives of labor and industry, to formulate plans for industry that will not compete with private enterprise or free labor. The board is authorized to make & study of the problem and submit its recommendations to Attorney General Cummings. The special train which brought Mr. Roosevelt from his home in Hyde Park_ N. Y., where he visited over the week end, arrived at Union Station shortly after 8 am. The President had his breakfast aboard the train with Secretary of the Treasury Mor- genthau and Postmaster General Far- ley, who had been his companions on the return trip, and then motored to the White House, arriving shortly after 9 o'clock. Confronted by 200 Bills. Soon after his arrival it was an- nounced that the President would be busy studying and disposing of the nearly 200 bills enacted during the last_hours of Congress, and that he would make an effort to start the drafting of his important radio ad- dress. To make possible his departure Saturday, it will be necessary for Mr. Roosevelt to work at high pressure early and late. In addition to the many bilis he must dispose of, he has to make a number of important ap- pointments, the most notable of which are to the Stock Market Control Com- mission, the Housing Administration, the Communications Board, a new Railroad Labor Board and a commis- sion to study aviation. In addition, many political appointments are yet to be dealt out. The President also will be called upon to hold many conferences with cabinet members and his army .of field marshals engaged in carrying on the work of the recovery adminis- tration. Then, too, there are several labor disputes which will demand hi$ personal attention before he leaves. Talks With Publisher. During the morning, the President conferred with several of his close associates and then had a long talk with Col. publisher of the Chicago Daily News, who has just returned from a Euro- pean tour. This conference was followed by one with Frank Walker, chairman of the National Emergency Council, which was preliminary to an import- ant meeting in the cabinet room at 2 pm. with the members of the Emergency Council and the Executive Council. The President laid aside his labors long enough to entertain at luncheon in honor of Antonio Lopez, President- elect of Colombia, who is in Wash- ington on a “good will” visit. {MRS. THOMAS SCOTT FILES FOR DIVORCE Reno Complaint by Washington Woman Charges Husband With Cruelty. Rebekah Wilmer Scott filed suit for divorce in Reno, Nev., today against Thomas A. Scott, formerly of 1717 Nineteenth street, charging cruelty. Both Mr. and Mrs. Scott are promi- nent socially in Washington. Before her marriage in 1915 Mrs. Scott was Miss Rebekah- Wilmer, daughter of Dr. and Mrs. Willlam Holland Wilmer. ‘The couple has. two children. “Without any important competi- | the use of Federal prison labor in| Frank Knox, owner and | HE PREFE Star TUESDAY, JUNE 26, 1934—THIRTY-FOUR PAGES. ### 2 ALER Yesterday’s Circulation, 117,135 (P) Means Associated Press. LT NN\ ST L= RS THE OLD TUNE! AGACIAWILL BUILD -~ 230,000 HOME Plan Announced as U. S. Buys 0ld Office for H.0:L.C. Development of a new $2,500.000 | tual Life Insurance Co. to cover ulti- | mately the complete square bounded by New Jersey avenue, Louisiana ave- { nue, C street, First street and D street was announced today by the company { simultaneously with the formal com- | pletion of the purchase by the Gov- ernment of the company's present building at First and Indiana averue ‘The First and Indiana avenue prop- erty was sold for $1,060.000 and will house the Home Owners' Loan Cor- poration. The announcement said that work would be started immediately on the | first unit of the new Acacia Building to cost $1,000,000 and to be ready for occupancy in 20 months. The new office building will be con- structed in monumental style to cor- respond to the Senate Office Building on the other side of the Capitol Plaza, J. P. Yort, vice president of the company, said. Ultimately the building will take in the entire front- age on New Jersey avenue, Louisiana avenue and C street. This segment will be built on the southeast corner of the square, with plans arranged so that additional units can be added as the needs of the company make necessary. Other parts of the square will be occupled | by buildings constructed for business . ' POLICE TO ENFORCE LIQUOR LAWS HERE A. B. C. Board Turns Control Regulation Work Over to City Authorities. Enforcement of the District liquor control regulations today was for- mally turned over to the Metropolitan Police Department by the Alcoholic IBevemge Control Board. George W. Offutt, chairman of the board, at a conference with Police Supt. Brown, worked out the new en- forcement program. The speeial police -liquor squad, | headed by Lieut. George Little, was placed directly in charge of enforce- ment. The entire uniformed force, however, will be instructed to co-op- erate with the squad and assist in checking observance of the regula- tions. Offutt told Maj. Brown that after June 30 the control board will have only two inspectors, both of whom will devote their entire time checking license tax payments. The change in enforcement plans was made necessary by the failure of Congress to provide funds in the 1935 appropriation att for maintenance of the original inspection force set up under the District liquor control act. RAINEY BOARDS PLANE FOR FIVE-SPEECH TOUR Speaker of House, After Talk in Toronto, Will Address Four Democratic Rallies. Speaker Henry T. Ralney boarded an airplane today for a five-speech tour of three States and Canada. Four of the addresses will be before Demo- cratic rallies in Michigan, Arkansas and Oklahoma. The white-haired presiding officer of the House will deliver his first speech tonight in Toronto at the ban- quet of the Civitan International. His air jumps then were to take him to: Mackinac Island, Mich., July 3, for an address at the Democratic for Michigan and adjoining States. Eureka Springs, Ark., July 6: Hot Springs, Ark., July 7, and Tulsa, Okla., July 9. Rainey expects to reach his home in Carrollton, Ill., about July 15. JOHNSON AT WORK - N. R. A. Chief Returns to Desk After Few Days in Hospital. Hugh S. Johnson was back at his desk today after a few days at Walter Reed Hospital. The N. R. A. chief was treated for an abscess after his return last Fri- day from & speaking trip to Ten- nessee. r building “project for the Acacia Mu- | |Claims Probation And Parole Fails To Combat Crime Former Pardon Board Head Says Swift and Cer- |tain Justice Is Necessary. By the Associated Press. CHICAGO, June 26—A former chairman of the Illinois Pardon and Parole Board, addressing a Central States parole conference, today said | that probation and parole had failed in their purpose and that swift and | certain justice was necessary to com- bat crime. At the conference, attended by representatives of 11 States, Hinton G. Clabaugh said, “it appears that the pendulum of justice and mercy has swung to the extreme in favor of the criminals. Probation and parole have ‘become the two out- standing and most valuable assets of the criminal, especially the gangster and professional. “Theoretically, parole is a beautiful thing. with its sentimental appeal, but In practical operation it has failed, and crime conditions through- out the land continue to grow worse. I think neither probation nor parole should be possible in crimes of vio- lence.” George T. Scully, an Illinois parole officer, urged reciprocal action of paroles between States. ARSON, EXTORTION LADTO T7INRING Chicago Police on Track of Second “Fire Bug” Band. By the Associated Press. CHICAGO, June 26.—While 17 ac- cused members of one arson ring were in custody today the State announced it was on the track of a second al- leged ring responsible for fires that cost $1,000,000 and perhaps several lives. Stories of the several prisoners, pieced together by the prosecutogs, indicated the second band under in- vestigation was composed of a dozen or more “torch” men, insurance ad- justors and merchants. Wilbert F. Crowley, assistant State's attorney, said he would go before the Felony Court tomorrow and ask warrants against those already under arrest, charging them with arson and conspiracy and demanding high bonds. Death “Threat” Received. As the investigation of the “arson ring” proceeded a letter threatening the essassination of State’s Attorney Thomas J. Courtney and Crowley was received by a West Side physician, Dr. Dominic A. Palmisano. It read, “You must furnish us with two patients who have incurable dis- eases. “One will be designated to kill First Assistant Crowley and the other des- ignated to kill Courtney.” Dark red spots on the note looked like bloodstains and the doctor notified the investigators, Crowley, inclined to consider it the work of a crank, never- "(Continued on Page 2, Column 5) BARTON URGES TRAMMELL FAGES FINAL TEST TODAY |Florida Voters Choosing Between Senator and Claude Pepper. | By the Associated Press. | JACKSONVILLE, Fla, June 26— | Park Trammell, Florida’s junior | United States Senator and chairman of the Senate Naval Affairs Commit- tee, placed his 18-year-old record at ‘Washington before the electorate to- day for a test. The contest between Senator Tram- mell and Claude Pepper, T:llnlhnsm attorney, held the center of interest in the second Democratic primary. Nomination is equivalent to election. There were two other State-wide races, involving four candidates for two Railroad Commission places, and numerous county and State legislative contests. Tossed irto the run-off when they defeated three other candidates in the first primary June 5, Trammell and Pepper, separated by the Sen- ator's 1925-vote lead, carried their of the State. became the campaign targets. Tram- mell charged Pepper with being financed by “special interests,” and Pepper criticized the Senator’s record as being devoid of “any modern leg- islation.” Trammell, undefeated since he en- tered politics in 1900, has been mayor of Lakeland and Governor of Florida. Pepper has served a term in the State Legislature. Both are native Ala- bamans. ‘The polls close at sundown. FACTOR’S RELEASE ORDERED BY COURT Judge Delays Signature to Per- mit British Lawyers to Con- tact Washington. By the Associated Press. CHICAGO, June 26.—Judge Evan A. Evans of the United States Cir- cuit Court of Appeals today ordered the release of John Factor, wealthy speculator, from the Sycamore, Il jail, where he has been held pending the issuance of a final order for his extradition to England on charges of defrauding investors of $7.000,000. The judge delayed signing the order, however, until tomorrow, to permit counsel for the British crown to get in touch with the State Department at Washington. Judge Evans acted on the writ of habeas corpus after receiving a pe- tition presented by Factor’s wife ask- ing the release of her husband under section 654 of the extradition act, which provides that a prisoner shall be released if the Secretary of State has failed to issue the final order within 60 days after the court order. The time limit expired Saturday night. G. Gale Gilbert, attorney for Factor, then served notice on Sec- retary of State Hull and Franklin R. Overmyer, counsel for the British consul here, of his contemplated action. Attorney Overmyer argued against the granting of the writ and Factor’s attorneys directed part of their at- tack on him, maintaining that in such a proceeding the British counsel had no right to appear. ADVERTISING TO PORTRAY AND HALT WAR By the Assoclated Press. NEWARK, N. J, June 26.—Bruce Barton, advertising man, today ad- dressed the Choosing-a-Career Con- ference, designed to guide students into proper working fields, and said of the power of advertising: “Give us annually the cost of only one battleship to invest in advertising and we will keep the horror, the misery and the futility of war con- stantly before the eyes and con- sciences of the nations of the world.” On the future of the advertising business, Barton said: “Two disasters might conceivably occur. The social revolution now in progress might reach a point where industry is so regimented, quotaed and controlled that there would be very little adver~ tising. as in Italy, Austria and Ger- many. or none, as in Russia. “But advertising, essentially, is the art of persuading people to action. There will always be a field for the exercise of this art. * * * “The second danger to advertising is not that it may be destroyed by the state, but that it may destroy itseif. A farmer’s wife wrote to the editor of a magazine, ‘I still believe in adver- tising, but I don’t believe most of your advertisements.’ “Thousands of intelligent men and women feel the same way. Certain forms of advertising have first sur- prised, alienated their confidence. “I would not be completely frank if I did not add that the years since 1929 have been discouraging. Under the lash of bad business, ideals have been abandoned and standards have sunk. ® * * “Advertising ought to be a cleaner, better business in your day,” he told the students. campaigns into virtually every county ' Political records and personalities | then shocked and finally & TWO CENTS. ARMY SALES PROBE WITNESS CHARGES PROPOSAL T0 $PLIT AUTO CONTRACTS Sabine, Ford Agent, Testi- fies General Motors Rep- resentative Suggested to Divide Business 3 Ways. SABOTAGE REVEALED ON DODGE TRUCKS Sand Injected Into Crank Cases at C. C. C. Camp—Valuable Tests Accidentally Given Cars Under War Conditions—Chrys- ler Unit Complaint Withdrawn. A proposition allegedly made by a General Motors official to the effect that Chevrolet, Chrysler and Ford “get together” on Government bids and “split this business three ways” was described today before a House subcommittee by R. P. Sabine, local Ford motor agent. Sabine declared the proposal was made to him and E. C. Simonds, an- other Ford representative, at a con- ference last January at Camp Hola- bird, military testing ground for auto- mobiles, by Norman Haig, managing director of fleet sales for General Motors. Members of the House Military Affairs subcommittee announced that Haig would be given an opportunity to reply to the testimony of Sabine. The latter testified today that he refused to consider the proposition and “nothing ever came of it.” A. H. Ferraneou of the Dodge Co. was called to the witness stand im- mediately after Sabine’s testimony and asked if Chrysler had made a “split” arrangement with Chevrolet. | He replied in the negative. Reads Testimony. Representative Goss, Republican of Connecticut. read excerpts from a previous executive session, at which Sabine was questioned by Representa- tive James, Democrat. of Michigan, as to any price-fixing agreement among manufacturers. “Have any of your competitors ever made a proposition to you to fix prices?” James had uked{s-blne, “They did not exactly say ‘fix prices.’ ” the witness replied. “but Nor- man Haig said he had had his fill of selling automobiles to the Govern- ment at cost last year. In the early part of this year. he said he did not see why it would not be pessible for Chevrolet, Chrysler and Ford to get together and split this business three ways, 50 they could all make a profit out of it.” “When was that?” James asked. “It was the early part of January —the first part of this year.” “Who was present?” Three Present. “Haig, Simonds from the Fort Mo- tor Co., and myself, over at Hola- bird.” “Did they suggest what the pro- posed portions of the split would be?” Chairman Rogers inquired. “Just that we should split it three ways,” Sabine told the committee. Sabine reiterated his previous testi- ymony regarding the proposition and declared he had refused to consider it “at all.” Sabine also testified that Frank Speicher, missing witness in the grand jury investigation two months ago and mysterious figure in the governmental inquiry into War Department lobby- ing, had identified himself at one time as a representative of General Motors. Haig Denies Connection. Representative Goss told the witness that Haig, in an earlier appearance before the committee, had denied that Speicher was connected with his firm, but Sabine insisted that Speicher had made that claim. Speicher has been the object of a Nation-wide search by Department of Justice agents, who wish to question him in connection with the investigation of War Depart- ment contracts. Acts of sabotage on Dodge trucks assigned to the Civillan Conservation " (Continued on Page 2, Column 7.) ——— JAMES GETS DIVORCE FROM TILLY LOSCH Decree Nisi Is Granted in Lon- don—Complete in Six Months. By the Associated Press. LONDON, June 262~A jury hear- ing the divorce action of Edward Frank Willis James against Tilly Losch James, former Viennese dancer, today granted him a decree nisi. The divorce will not become absolute for six months. The jury held that the husband's charge of adultery had been proved. The counter charge of cruelty brought by Mrs. James was not substantiated. ‘The jury, its deliberations lasting less than an hour, held that the evi- dence established the charge that Mrs. James committed adultery with Prince Serge Obolensky, former hus- band of Alic Astor, in New York. Mrs. James’ petition for a decree of judicial separation, which she asked on charges of cruelty failed. Amusements . Navy Orders . Features ... Financial ..