Evening Star Newspaper, June 26, 1934, Page 2

A—2 *x% POLITIGS FEARED INR.F.C. LENDING Blue Eagle Boycott May Re- sult in Dictation of New Policy. BY DAVID LAWRENCE. There’s an old saying that “money talks.” Well, it is beginning to talk very influentially, now that the Re- construction Finance Corporation has decided to include considerations other than adequate security and credit in the awarding of loans to industries and firms which cannot get credit at the banks. Although Congress did not specify it, the R. F. C. has decided it will not lend any money except to firms or businesses which have the Blue Eagle. The original national industrial re- covery act did not contain any pro- vision for a Government boycott of any kind. Indeed, the very words of the act forbade any discrimination. Yet, the Blue Eagle campaign was started by executive order, and now the R. F. C, which has done a marvelous job in handling credits thus far, finds itself tied hand and foot by the executive order which created the Blue Eagle. Executive Legislation. When Congress passed the law giv- ing authority for Government money to be loaned to industry, there was no consideration given to anything else but credit requirements. The ad- dition of the Blue Eagle factor is just a piece of legislation by an executive organization, which was not contemplated by Congress, As a practical matter, of course, very few companies in America are not entitled to the Blue Eagle, so it is doubtful whether the R. F. C.’s stipulation will work any hardship. But the principle back of the regula- tion is significant. If the R. F. C. can insist that a borrower comply with the N. R. A’s ideas, it could subject the borrower to other con- ditions which might amount to sup- port of other new deal policies. It is a short step from requiring compliance with the N. R. A. to insisting upon approval of the new deal as a whole, and that could mean a political influence in the disburse- ment of funds. Already the opponents of the new deal are charging poli- tics has had much to do with the allocation of Government funds. Under Treasury Fire. ‘The administration has taken cog- nizance of such charges in prosecut- ing those who tried to arrange for| Telief funds on the basis of po- litical effiliation and those who tried to influence mortgage exchanges un- der the Home Owners’ Loan Corpora- tion in the same way. The collec- tion of campaign funds by politically appointed officials of the Govern- ment has come under fire by the Treasury, but the removed Detroit official continues as Democratic na- tional committeeman, fully recog- nized by Postmaster General Farley on all matters of patronage in Michi- gan. The potentialities of the Govern- ment as a lending agency are rather extensive as they may relate to party politics. -~ Applications for loans prob- ably will assisted by political lead- ers in varijus parts of the country. The R. F. C. itself forbids the pay- ment of any bonus or commission to anybody for services in obtaining an R. P. C. loan, but the political lead- ers generally will Jook upon the latest regulation of the R. F. C. with respect to the Blue Eagle as meaning some- thing else besides credit considera- tions are involved. May Get Preference. Hence, the applicant who says his | support of the new deal has been un- qualified and that he has complied with the N. R. A, places himsel{ in a position to ask that, with the lim- ited amount of funds available, pref- erence be given him rather than some lukewarm supporter or member of the opposition party. Officials of the R. F. C. naturally deny any such intention. Their stip- ulation that money can be loaned only to those flying the Blue Eagle, they say, is in accordance with the executive order of the President and. whatever the President’s policy is, the R. F. C. must obey. Mr. Roosevelt, however, made the original stipulation, with reference to the award of Government contracts on public works projects, at a time when support of the N. R. A. was considered a paramount issue, espe- cially since the idea did not originate until after Congress adjourned in 1933. Now, however, there has been time for Congress to ratify the Blue Eagle boycott if it chose. Indeed, prominent Senators have said publicy they did not think it was a violation of the national industrial recovery act in any sense to ignore the Blue Eagle The R. F. C’s latest rule indicates the lending of money is regarded as a governmental favor rather than the disbursement of funds on adequate credit security—a precedent of far- reaching implications. (Copyright. 1934)) NATIONS PREPARE TO REBUILD FLEETS IF ACCORD FAILS (Continued From First Page.) be taken too serfously in this country. In well informed quarters, however, this declaration of MacDonald is taken lightly. The British Admiralty, it is stated, s bound to ask for an increase of the navy because of its old stand on the “two-power standard” which requires Britain to have as many ships as the combined forces of the two principal European maritime powers, Italy and France. In the last three years, both these powers have been active and the naval race between Italy and France seems to have only begun. The ratio allowed Great Britain at the last conference, barely met the two-power standard and in order to avoid any unpleasant surprise, Mac- Donald obtained, at the bidding of the Admiralty, the insertion ot the “escalator clause” in the treaty which permits Britain to increase its ton- nage should Italy and France exceed the construction of a certain number of ships. This has happened now and the British admirals are more deter- mined than in 1927 to provide Great Britain with a “two-power standard” navy. It is because of this situation that in many querters the wisdom of hold- ing another naval conference is being questioned. These conferences should have as a principal purpose the scaling down of the existing naval forces. If they accomplish the * opposite effect, to increase the present mavae! strength of the conferees, as appears to be the case under the present circumstances there can be no reason for holding them. They only increase the po- litical tension between nationms, it is stated. l What’s What Behind News In Capital They Were Only Fool- ing on War Debts Pay in Goods. BY PAUL MALLON. R. HULL was only fooling| recently when he invited the British debts in,6 goods instead of money. It is true that the State Secretary is a Sunday school man and does not know much about poker. But his deficiency in that respect is more than made up by President Roosevelt. They got their heads together on the latest debt step, basing it on what is known in both diplomatic and poker | circles as “calling the bluff” of the British. As a matter of fact, the only way in which this whole inner war debt situation differs from the average high-class poker game is that, in playing war debts, nobody pays. honor of winning is the only stake. Consequently, no negotiations are imminent for payment in goods, money or cigar store coupons and none is likely for a while. Messrs. Roosevelt and Hull did not | really believe there would be. The truth is their private economic ad- visers told them before they wrote the note that it would be virtually impossible to work out a transfer of goods at this time. There is one simple insurmount- able reason. It is that the British government has no goods of its own. To pay us in goods it would have to buy them from private producers. But at what price? If she bought tin at the fixed world price and transferred it to us without a profit, she might as well transfer the money. If she tried to make a profit on the transaction, the price at which we would receive the tin | would make it too high. We might better buy the tin from the private | producers ourselves. Either way, there would be no sense to the transaction. The only reason the Roosevelt-Hull poker team invited payment in goods is because the British bBad insisted they could not transfer money. Messrs. Roosevelt and Hull did not | intend that their call of that bluff should be taken as seriously as it was. | The newspapers picked that news | idea out of a single sentence in the body of the Hull note and made headlines out of it. Mr. Roosevelt was that his spokesmen newsmen they were the suggestion. The White House hinted that it was not by any means an important feature of the note. so perturbed suggested to over-playing There are economists in the State | Department who believe that within a year or two, when world trade rela | tions get somewhere near normal, transfers may be worked out on the basis of paying goods. It is, of course, ridiculous to zmnk that any sul tial portion of the debts could bma that way, or any other. You can, however, readily see where the existing situation leaves the debt issue. It is just where it was—on the poker | table. Too Much Borah? Of all the Progressives, Senator Borah has been most skeptical of the | new deal. He even shies away from going to the White House whenever possible and has refused to get tied up with the administration even in the indirect way other Progressive Repub- licans have been tied up. For that reascn Mr. Roosevelt perked up when he saw Borah among a group of Senators at the White House a few | days age when the silver bill was I signed. The President beamed his best beam ! at Borah and said: “Senator, we will get you yet.” Borah returned the President’s smile, saying. “I think you've had too much of me | That terse exchange was the frothy whitecap of a strong conflict of po- litical undercurrents. Mr. Borah has not announced it yet. but he is going to hie himself to the hustings during the Summer. He will speak a few pieces about the N. R. A . A. A A, et al, and when Mr. Borah speaks his piece it will be in the man- ner of a new-deal valedictory. He has far more invitations than he will be able to fill, but he will fill enough of them to make a loud national noise. His speeches will not be under the auspices of the Republican National Committee. He is almost as skeptical of the lads in control there as he is of the new dealers. It will be bad news to the admin- istration, already dissatisfled with its political situation in the farm belt. “Shoot-to-Kill” Protest. The Justice Department took a strong private lacing from the moral- ists when it issued its “shoot-to-kill” orders against Dillinger weeks ago. Protests piled in on the department. That is the real reason it went to the other extreme this time and elim- inated the “dead-or-alive” clause from the Dillinger reward. The result could be disastrous. Of- ficars might try to capture Dillinger alive so as to get the reward. That would play into Dillinger's hands, be- cause his #ame always has been to shoot first and ask questions later. The next thing would be for the Government to pass out butterfly nets to 1ts agents so they will not soil Dil- linger’s mustache when they get him. Never fear. The “dead-or-alive” clause was eliminated only for the benefit of the moralists. The man who kills Dillinger will get the reward, and no questions asked. You can cancel the statement re- cently made in this column that the light of publicity killed bill No. S-2817. It killed that bill all right, but the crafty Congressmen found another way of getting private loans for them- selves from the Government. They slipped an obscure clause into the housing bill at the last minute. The trick was not discovered until some of Mr. Roosevelt’s ad- visers went through the housing bill and found that the principles o7 the dead bill S-2817 had been incorporated in it, In fact, they * to pay the war/ The | THE EVENING STAR, 1 | MY WALKER'S AIDE 1S ACCUSED Former Brooklyn Park Head Said to Have Banked More Than $1,000,000. By the Associated Press. BROOKLYN, N. Y, June 26— Pension demands of James J. Browne, former Brooklyn park commissioner, have been met by the city with charges that in 14 years he banked $1,071,713.89, although his salary from the city during the period totaled only $96,804.94. The charges were contained in an affidavit filled in Supreme Court yes- terday by Commissioner of Accounts Paul Blanshard and included allega- tions of “Misfeasance, malfeasance and nonfeasance while in office.” Browne, an_appointee of former Mayor James J. Walker, also was ac- | cused of “incompetency, misconduct and unlawful acts,” while serving as park commissioner, as a result of which, the affidavit charged, “the city of New York and the United States Government have suffered ir- | reparable damage and loss of several hundred thousand dollars.” The afiidavit claimed that of the ‘total deposited in nine accounts, $609,- 752,71 was “partially accounted for,” leaving $465,666.20 “still unexplained.” Blanshard asserted Browne also held real estate, stock bonds and mort- | gages worth about $200,000. Justice James A. Dunne, after hear- ing oral arguments, gave Browne until | Friday to file an answer. Counsel for Browne denied all the charges. Blanshard's affidavit was filed in answer to Browne's application for an order directing the city to pay him an annual pension of $2,663.08. e DOLLFUSS PLANS - MUSSOLINI VISIT Invitation to Austrian Chan- | cellor Extended Before Hitler Meeting. By the Associated Press. ROME, June 26.—Premier Dollfuss | of Austria will make a “family” visit to Premier Mussolini of Italy at the end of July. They will go to Riccione on the Adriatic, where Mussolini and his family will spend a vacation. Il Duce has invited Frau Dollfuss and the chancellor’s two children to accompany | the Austrian leader to the meeting there. Chancellor Dollfuss will remain only two or three days, but his family will stay at Riccione longer. The spot is a famous Summer resort for Aus- trians. High authorities said that Musso- Iini's invitation to the Austrian chan- cellor was extended some days before Il Duce met Chancellor Hitler of Germany at Venice two weeks ago. Therefore. they said. the Mussolini- Dollfuss conference will not be in con- sequence of the meeting at Venice. It is understood, however. that Doll- fuss wishes some personal clarifica- tion of the Venice conversations with reference to Austria. Hitherto, the Austrian government has been in- formed of the Hitler conference through its diplomatic representatives in Italy. The diplomats were told by the Italian government that Mussolini and Hitler “were in accord that, on the basis of the independence of Aus- tria, tranquillity should be restored to that country.” Informed circles expect that Doll- fuss will ask Mussolini for informa- tion on the five-point program which | Hitler was said to have proposed for Austria. Included in the five points are supposed to be requests for new elections and the withdrawal of Italian influence in Austria. ENVOY TO NICARAGUA 'DENIES ‘PLOT’ RUMOR Lane Says He “Neither Approved Nor Instigated” Assassi- nation of Sandino. By the Associated Press. The State Department today issued a formal statement by Arthur Bliss | I3ne, American Minister to Nicara- ‘gun. denying rumors that he ap- | proved or instigated the assassination of Gen. Augusto Cesar Sandino, Nica- | raguan insurgent leader, near Ma- nagua, last February 21. Lane said “unfounded and mali- cious rumors have been circulated, | both in Nicaragua and elsewhere, to the effect that certain acts commit- ted in Nicaragua in February last, were approved and instigated by me. | “Until now I have felt that these | rumors should not be dignified by a denial report on my part,” he added. “During the past week, however, these rumors have been circulated | with increased intensity and have apparently created an impression in | some quarters that I was endeavoring i to influence political developments in | Nicaragua. “I desire to state in the most cate- gorical manner that these rumors and any such impression are absolutely false. “Since the inauguration of Presi- | dent Roosevelt, the Government of {the United States has dedicated it- | self to the policy of the good neighbor ;and the manner in which that policy | has been carried out is well known |and well recognized throughout this continent. | “Consequently, neither the Govern- ment of the United States nor its representative in Nicaragua has inter- | fered directly or indirectly in the political affairs of Nicaragua.” Allen Visits Chicago. Commissioner George E. Allen leit Washington yesterday for a brief va- cation in Chicago, where he will visit the Century of Progress. He is ex- pected back at his desk Monday. had been ezpanded. Under S-2817 the criminal code would have been amended so Congressmen could borrow only from the H. O. L. C. and the F. C. A. Under the hous- ing provision they can borrow from any governmental agency. The trick has the makings of a first-class scandal in it because of the influence exerted by Congressmen over appraisers and employes in some of the Government bureaus from which they propose to borrow. (Copyrisht 1934.) o L e HeartFsSewed Up And Victim Lives After Stabbing Doctors From Many Sec- tions Keep in Touch With Case. By the Associated Press. LANCASTER, :Pa., June 26—The medical profession, keenly interested, kept touch by telephone as George Hampton, 41, continued to improve after an operation in which his heart was lifted from its place, stitched to close a stab wound, and replaced. Hampton, stabbed in the heart Sunday night, was “slightly im- proved” last night, hospital officials said. They disclosed that physicians from many points were keeping in touch with developments in the un- usual case by telephone. The stab wound is alleged to have been inflicted by Hampton's house- keeper, who is in jall. N.R A SAYSMILL FORCED CLOSING Divisional Chief Contends Executives Rejected 15- Point Program. (Continued Prom First Page.) company was convinced he intended to wreck it “through boycotting and every other means at your disposal.” “We would like to know,” the letter further said, “if the Blue Eagle is the property of the law-abiding citizen of the United States or if it is a play- thing to be held over the heads of honorable and decent employers as a cudgel to browbeat and bulldoze them into surrendering their consti- tutional rights for the benefit of out- side agitators whose only purpose is to exploit labor for their own personal gain.” 653 Lose Jobs. Closing of the plant by the com- pany yesterday threw 653 persons out of work. Mayor J. D. D’Armond said he “supposed the Government will have to put the 653 workers who lost their jobs on relief.” Wright said a copy of the letter was being sent to President Roosevelt. N. R. A withheld comment in Washington until Gen. Johnson re- turns to his desk from Walter Reed day. The company's Blue Eagle was taken away by the N. R. A. in April. It was alleged that the company had violated the hosiery code in refusing to bargain collectively with its em- ployes. When the Blue Eagle was recalled, 69 merchants of Harriman turned in their Blue Eagles, to leave them in the Government's care until the fac- tory returned to the good graces of N. R. A Since then, some of these Blue Eagles have been restored. Divided on N. R. A, are opposed to the mill closing down. Some of the people here are opposed to the N. R. A; others are not.” He sald the Government has been feed- ing the strikers. In his letter, Wright said Johnson had been advised by the Department of Justice that its investigation showed the company was not guilty of violating the law or the code. The text of Wright's letter to John- son follows: “Dear sir: “On April 20 by your order as ad- ministrator of N. R. A, the Harriman Hosiery Mills was deprived of the use of the Blue Eagle. Your action was based upon the recommendation of the National Labor Board, which was dominated and controlled by the American Federation of Labor. Out of the six members who sat at our hearing, three—William Green, John L. Lewis and George Berry—being presidents of national labor unions, Rev. Father Francis Haas, avowed la- bor union supporter; Leo Wolman, consumer member, and only one, Pierre du Pont, representing industry. Speculate on Intentions. “The only conjecture of guilt that this prejudiced board could assume was that the company ‘entered nego- tiations in bad faith with the definite intention not to make any agreements with the representatives of its em- ployes’ This board could not find where we had done anything wrong, but their accusation of ‘bad faith’ in- dicates they suspect us of ‘thinking wrong.’ This is purely ‘mind reading’ on the part of the National Labor Board, but is being used to destroy a concern of more than 20 years of fair and successful operation and the sav- mgs of two generations of loyal and wrue American citizens, “The above conjecture was based solely on a disorderly mess of un- sworn, illegal, incompetent testimony, and passed upon by a prejudiced board which has shamefully abused the confidence reposed in its mem- bership, and which has made of itself an agency for the unfonization of in- dustry. Such conjecture is not worthy of any consideration. You condemned Clarence Darrow for re- porting on such testimoney, yet you acted upon that type. Trickery Suggested. “In our opinion the National Labor Board is not qualified to judge ‘bad faith! Their general counsel in a meeting with mill officials suggested that trickery be utilized to deceive the strikers in settling the strike. This scheme was also suggested by the director of compliance. “We were advised by those two gentlemen to make the strikers be- lieve we were going to take them back and then take a few. and that this sort of cheap trickery would satisfy those two branches of the ‘new deal.’ “Even your own secretary, in dis- cussing ways and means of settling the strike, advised us to take back 50 strikers, work them for a week or 10 days and then let them out. “You personally told us to dis- charge present loyal employes and employ strikers in their places. Your personal representative (A. R. Glancy), who left here today, would not restore the Blue Eagle unless we signed a written instrument requiring us to discharge present loyal employes and replace them with strikers, Cite Legal Ruling, “We would like to know if the Blue Eagle is the property of the law- abiding citizen of the United States, or if it is a plaything to be held over the heads of honorable and decent employers as a cudgel to browbeat and bulldoze them into surrendering their constitutional rights for the benefit of outside agitators whose only purpose is to exploit labor for their own personal gain. “You haye been advised in writing by the Department of Justice that ‘ WASHINGTON, Hospital. He was expected.back to- | The 72-year-old mayor said: “We| D. C, TUESDAY, MENDIETA LOSES SUPPORTOFAB.C. Makeshift Cabinet Rules Cuba as Nationals Gain Strength. By the Associated Press. HAVANA, June 26.—A makeshift cabinet directed Cuba's government today, following the withdrawal of four members when the A. B. C. Political Society divorced itself from President Carlos Mendieta. Four secretaries are carrying double portfolios. The definite A. B. C. withdrawal gave Mendieta’s own party, the Na- tionalist, an overwhelming majority in the cabinet with 8 of the 10 posts. Some political quarters expressed belief the outcome of the cabinet crisis gave Mendieta more strength, as “now he can govern with the N: tionalist program without the dr: back from differences of opinion, al- ways seen in concentration gqyern- ments.” The entire cabinet resigned yester- day, but all but four were reappointed within a few hours. The action was taken to give Mendieta a “free hand” in reforming the cabinet. A. B. C. secretaries quitting were Joaquin Saenz, treasury; Carlos Sal- adrigas, justice; Emeterio Santo Venia, secretary to Mendieta, and Jorge Manach, public instruction. Mendieta carried on negotiations today to re- place them. —_— ARSON, EXTORTION LAID TO 17 IN RING BY CHICAGO POLICE (Continued From First Page.) theless ordered aides to examine the letter for clues to the sender. An investigation of a recent at- tempt to extort $2,000 from Harry Welch, a Toleda, Ohio, merchant, led to the disclosures of the activities of the arson ring, which also allegedly made a business of abducting and ex- torting money from its own customers after they had collected their fire in- surance. ‘Welch, who was kidnaped 11 days ago, told police he was branded by hot irons and forced to call his mother in Toledo, requesting that the $2,000 be sent to Chicago. Instead she called an attorney, who notified Chicago officials. The result was a search for Rudolph Pisani. Pisani, was captured with Valentine Notaryl and John Brown in the act, police said, of setting fire to a build- ing last Priday night. Pisani’s mother, Mrs. Elsie Pisani, was also apprehended. Prosecutors said she admitted driving her husband, Romol, and her son on many arson “jobs” but denied she knew anything about the torturing of Welch. Confess Starting 23 Fires. Officers said insurance companies had been defrauded of $1,000,000 by the gang, and that some of its mem- bers had confessed starting 23 fires. The State's attorney’s office said the inquiry had been extended to de- termine if the accused persons were to blame for other fires in which three firemen perished. The fees the gang charged mer- chants ran as high as 10 per cent, the officers said. adding that they sus- pected the gang of starting more than 100 fires, and they had one con- fession of a $250,000 blaze whichi oc- gg;ed in Chicago's Loop district in GOLD RUSH IS ON of Prospectors Stake Claims in Central Oregon. BEND, Oreg, June 26 (#).— Campfires of prospectors blazed last night on the banks of Central Ore- gon’s “Lost River,” a waterless chan- nel populated overnight by scores of | gold seekers lured by tales that a mil- lion-dollar claim had been staked. News circulated that placer gold 1bhad been found in the bed of the ancient river which winds across the high desert for some 50 miles. Over the week end some 1,000 people visited the isolated Hampton Butte region | Last night scores remained to guard newly staked claims. Prospectors said M. Riddell, a retired Government engineer, sank a shaft through dirt drift and found gold in the bottom of the buried river. In proof of his find Riddell has gold to display and believes his 20-acre claim will yield more than a million collars, prospectors reported. | “PORK BARREL” LOSES { Doumergue Defeats Move 'French Chamber. PARIS, June 26 (#).—A movement of some deputies to put the proposed 10,000.000,000-franc public works pro- gram on a “pork barrel” basis was plocked yesterday by Premier Gaston Doumergue. ‘The premier won an easy vote of confidence—405 to 105—on a proposal that he map out the works program for “national benefit” and present it to the Chamber of Deputies in Oc- tober. Scores in they have completed their investiga- tion and find that we are not guilty of violating the law or the code, and they find nothing in this case to Jjustify prosecution. Have you no re- gard for this unprejudiced, non- political unbiased legal branch of the Government? “For several months, we have pleaded and reasoned with the vari- ous departments handling our case. We are now convinced the facts and justice play no part whatever in the consideration of a matter of this kind. We are convinced that through boycotting and every other means at your disposal, you have set out to wreck this concern. No small con- cern can withstand all the agencies of the Government when they are employed for this purpose. We are, therefore, closing this plant today per attached copy of notice to employes. Recall Rights. “The Constitution of the United States guarantees that no citizen shall be deprived of life, liberty or prop- erty without a just, fair and impartial trial. You well know that by an ad- “By T. ASBURY WRIGHT, JR. “Vice President and Attorney.” JUNE 26, 1934. Dillinger Seeker Finds U. S. Agency . Is Without Horses By the Assoclated Press. Eyes alight with the prospect of capturing John Dillinger and 2 $10,000 reward, he approached J. Edgar Hoover, director of investigation. “I learned to shoot under Buffalo Bill” the hard-bitten son of the West said, “all I need is a horse.” Hoover had to tell him that the department has no horses. ‘BRITON CARDS 140 10 LEAD GOLFERS Young Professional Seven Strokes Ahead of Smith, Nearest American. By the Associated Press, SANDWICH, England, June 26— Bert Gadd, a 25-year-old professional from Quinton, blazed the Royal St. Georges course in 69 today for a two-round total of 140 to swing into the lead in the 36-hole qualifying round for the British open golf cham- plonship which begins on St. Georges tomorrow. Gadd toured the Royal Cinque Ports links—the other quali- flying course—in 71 yesterday. He was 8 strokes ahead of the leading American invader. Gadd, 1933 French open titleholder and British team player against Scotland and Ireland last year, started his second qualifying round in mid- afternoon by shooting St. Georges in 3 under par. He dislodged Henry Cotton, yesterday’s leader, with a 66 James Adams and Percy Alliss, who were involved in a three-day tie for the leadership with 141 each. ‘Tied for third place with 143s were Syd Fairweather, British pro; E. F. Storey, British amateur Walker Cup player, and Angel de la Tore, five times former Spanish open king. Scores Lowest in History. Jack McLean, the Scottish and Irish amateur champion, was the last player to finish and he posted a 76 for a total of 152, becoming the 101st player with 152 or better. The quali- fying fold for the championship E(nper is limited to the first 100 and es. The qualifying scores this year were the lowest in the history of the open championship, according to experts. Last year at St. Andrews 158 sufficed while two years at Princes 157 rated a championship berth. Macdonald Smith, with a 36-hole aggregate of 148, led the invaders from the United States into the title grind. Smith got off to a brilliant start over St. Georges today, negoti- ating the first nine holes in 32 and then encountered hard luck to take an inward 41 for a 73. He scored a 75 over Cinque yesterday. Denny Shute of Philadelphia, the defending champion, returned to form to post a l-under-par 73 at Cinque for a two-round total of 149. Shute's chances of qualifying, much less re- peating his 1933 playoff triumph, were considered slim yesterday when he took a blundering 76. But he had his wood shots and putter under better control today and easily got inside the qualifying fold limited to the first 100 and ties. Sarazen, Kirkwood Safe. Gene Sarazen, 1932 champion and betting odds favorite, and Joe Kirk- wood, the trick-shot performer, quali- fied with 150's. Sarazen, playing St. Georges, continued to have trouble with his putter and wasn't able to attached to him yesterday. Robert Sweeney, & former New Yorker attending Oxford University, chipped in a subpar 69 for an aggre- gate of 145 and a tie for fourth place with Harry Padgham, crack British pro. Padgham did St. Georges in 71 today. Other low scorers included Fair- weather and Storey, who had 71 and 70, respectively, at St. Georges, and Bill Laidlaw. another British pro, who shot the same course in 71 for a two- round sum of 144 and third place. FRANCIS P. DAILY, 42, NEWSMAN, EXPIRES World War Veteran Was Con- nected With Papers Here Many Years. Francis P. (Pete) Daily, 42, well known Washington newspaper man, died today at a veterans’ hospital in Oteen. N. C., according to word re- ceived here. Mr. Daily, a World War veteran, had been ill for some time with tuberculosis and about six weeks ago he was removed to the North Carolina hospiial. He served with the 28th Division during the war. A native of Philadelphia, he came to Washington with his parents when a boy and was educated here. He had worked on nearly all the Washington newspapers, serving in various capacities in the editorial and sports departments and composing room. Mr. Daily “broke in” with The Star, writing for the sports department on “space.” He left The Star about 1910, and for several years alternated be- tween the Times and the Herald, be- ;:gllnlnx city editor of the Herald in 4. He later was employed by the Post, where he was assistant city editor, sports writer and copy reader, and subsequently went to work for the United States Daily. His last newspaper connection here was with the Herald, where he was attached to the copy desk. He is survived by his widow, Mrs. Clarita Daily, and a daughter, who live at Woodbury, N. J. AMERICAN MISSIONARY SLAIN BY COMMUNISTS By the Associated Press. HONGKONG, June 26.—The Do- minican Mission today received word from Santuo that Rev. Father Urban Another missionary, Rev. Father Bravo, who was captured by the Com- shake off the “three-putt jinx” that | FOURL. . TENNIS STARS SURVIVE Wiliiams, Cafitain of Davis Cup Group, Loses to English Ace. By the Assoclated Press. WIMBLEDON, England, June 26. —America’s four Davis Cup players today advanced safely through the second round of the Wimbledon ten- nis championships, George M. Lott, jr., springing something of an upset by defeating Italy’s Davis Cup ace, Gilorgio de Stefani, 3—6, 6—3, 6—4, 6—4. Frank Shields, Sidney B. Wood, jr., and Lester Stoefen all won easy vic- tories over well known opponents. The only American casualty in the men’s singles was Richard Norris (Dick) Williams, 42-year-old captain of the team, who fell before Fred Perry, the English cup ace, 6—2, 6—2, 6—0. Shields defeated Pierre Landry of France, 6—4, 6—4, 6—0; Wood had a nice practice against Max Ellmer of Switzerland, testing out his ground strokes and still winning, 6—4, 5—7, 6—0, 7—5, and Stoefen overpowered John S. Ollif, British internationalist, 6—1, 6—2, 6—2. Sarah Palfrey Wins. Sarah Palfrey of Boston, who was the heroine of the American defense of the Wightman Cup, started her bid for the women’s singles crown with a 6—4, 6—1 victory over the unranked English girl, R. Smith. Williams started out aggressively against Perry, but the 42-year-old American lacked the speed to cope with his rival, although he scored fre- quently with sharply-angled drives or volleys for placements. Once the acrobatic Briton got his forehand working smoothly, however, there was no chance even for Williams to lift a set. Willlams obviously did not take matters too seriously and punctuated his play with a running fire of co{?- ment, applauding Perry's best shots! Josephine Cruickshank of Santa Ana, Calif., the sixth ranking Amer- ican woman player, scratched her entry from the singles, thereby leav- ing Helen Jacobs, the United States champion, and Miss Palfrey, No. 4 on the ranking list, as the chief con- tenders from acress the Atlantic. Helen Wills Moody, last year's win- ner, is not defending the title. She is here as a spectator. Betty Nuthall Loses. Eileen Bennett Whittingstall sprang something of a surprise by rallying to defeat her British rival, Betty Nut- hall, 2—6, 6—3, 6—4, in one of the day's feature matches. Miss Nuthall, who is ranked third to Mrs. Whitting- stall's sixth on the English list, lost a lead in the second set and was outplayed thereafter. ‘Wood appeared to be experimenting with his ground strokes against Ell- mer, who made the mistake of play- ing to Wood's backhand through much of the match as Sidney has| one of the best games on the off side of any player in the world. Jack Crawford, playing steadily, advanced to the third round by de- feating one of the ranking Germans, Hans Henkel 6—2, 63, 6—4 Setting the pace in the women's singles, Margaret (Peggy) Scriven, British star and holder of the French hard court title, disposed of a country- woman, Miss G. K. Osborne, 6—1, 6—2. Dorothy Round, No. 1 British over Joan | 6—2. 6—0. Ridley of England, ARMY SALES PROBE TOLD OF OFFER TO (Continued Prom First Page.) | Corps also were inquired into today | by the subcommittee. Col. P. B. Miller, motor procure- ment chief of the quartermaster gen- eral’s office, read an official War De- partment letter telling of the injec- tion of sand into the oil reservoirs of a dozen Dodge trucks at a C. C. C. camp near Fort Riley, Kans. The sabotage discovery induced the War Department to withdraw a com- plaint against the Fargo Corporation, Chrysler subsidiary, that the motors of the C. C. C. trucks had been im- properly assembled at the factory. Trucks Generally Abused. When the motors, upon breaking down, were examined by mechanics, it was found an abrasive substance, later identified by analysts at Kansas State College as “sharp crystalline sand,” had been poured into the oil reservoirs. Col. Miller, in response to questions, also said trucks assigned to the C .C. C. camps had been generally abused. He made two of these “abuses” as brltnz high speed and use of improper oil. However, Col. Miller said, the rough treatment accorded motor trucks in the camps had given the Army a valuable test of the durability of various types of motor trucks under conditions simulating war-time use. { The evidence before the committee did not show whether the perpetra- player, scored with unexpected ease | SPLIT BUSINESS| CODES WIN CREDIT FOR BETTER ‘ADS' Washington Business Bu- reau Holds Annual Meeting. N. R. A. codes have reflected a de- cline in advertising inaccuracies and have improved trade practices during the past year, Louis Rothschild, di- rector of the Washington Better Busi- ness Bureau, told members of the organization at their annual meeting in the Raleigh Hotel yesterday. Although there was an increase in merchandising and advertising in- vestigations by the bureau, the in- crease does not mean that advertising has degenerated, he said. “To the contrary,” he added, “the percentage of inaccuracy during the past year has been surprisingly low. There has been evidenced a conscientious desire of the great majority of advertisers not only to avoid misstatement but also to prevent any complaint for code violation.” The bureau has been designated the investigating agent for the District retail code authority and also for the local jewelry code authority, Liquor Ads Inaccurate. A new development in bureau work during the year has been investiga- tion of liquor advertising, Rothschild said, and a volume of this type of advertisitg was found inaccurate and misleading. The errors varied from actual misstatement of contents of bottles to advertising specials at low prices and failing to have the merchandise available to customers. The bureau has the co-operation of the Alcoholic Beverage Control Board in correcting these evils, and has recommended to the District of Columbia Commissioners that false advertising be ground for cancellation of a liquor license. The securities act, which became law this year, has had the effect of materially decreasing the number of new security offerings and “fear of its effect has undoubtedly caused some questionable promoters to with- hold offerings of securities which would come within the provisions of that statute,” Rothschild said. Trustees Elected. Rothschild singled out two codes having provisions directly protecting investors—the real estate brokerage code and the investment banking code. Twenty-nine members of the Board of Trustees of the bureau were re- elected, and four new names added at the meeting yesterday. The new members are: H. Lawrence Choate, E. M. Graham, Norman Kal and Dewey Zirkin. Members re-elected: F. G. Addison, jr.; Edward C. Baltz, H. T. Bisselle, Y. E. Booker, Henry N. Brawner, B. B. Burgunder, A. C. Case John H. Davis, Joshua Evans, jr.; M. G. Gibbs, Ralph L. Goldsmith, Gerald D. Gros- ner, James W. Hardey, Prank R. Jel- lefl. Sylvan King, Louis Levay, H. H. Levi, R. B. H. Lyon, Lanier P. Mc- Lachlen, Vernon G. Owen, C. H. Pope, Herbert J. Rich, L. E. Rubel, H. L. Rust, John Saul, C. Melvin Sharpe, E. P. H. Siddons, W. W. Spaid, Arthur J. Sundlun and Harry E. Ullman Officers will be chosen at the next meeting, Chairman Addison an- pounced. _— NOT IN REC Continental EIVERSHIP | Moters Corporation Reference Erroneously Made. An Associated Press dispatch yes- terday in regard to the Reconstruc- tion Finance Corporation deciding to make no more large industrial Joans erroneously referred to the Continen- tal Motor Co. as in receivership. The Continental Motors Corporation is not in receivership. prices since Ford Motors has been barred, can in any sense of the word be sustained. “I would like to state on behalf of General Motors that, as soon as it was learned Ford would no longer be a competitor, orders were issued by the executive vice president that no division of the corporation would take advantage of that situation. Any statement made to the effect the Chevrolet Motor Co. or General Motors Corporation have increased prices since the Ford Motor Co. was ineligible to bid by reason of not | having furnished a certificate to the effect that they were complying with | the N. R. A,, is without foundation in | fact and undoubtedly was made with a view to prejudicing the minds of the committee against General Mo- | tors Corporation.” Bash Opposes Ban. Maj. Gen. Louis H. Bash, quarter- master general, agreed with the sug- gestion of Representative Goss. Re- publican, of Connecticut that the N. R. A. ruling and the order of Assist- ant Secretary of War Woodring, re= quiring the anti-lobbying certificate, have affected competition. “Do you feel it would be better if there were a larger field of competi- tors?” Goss asked. “Absolutely,” Gen. Bash replied. Goss pointed out that under these restrictions only Chevrolet can re- ceive a contract in the light-truck field, and the situation which permits only one firm to bid was a bad one, “The committee has put its finger on a potentially dangerous situation,” Gen. Bash commented. *“I don't like tors of the sabotage acts had bees apprehended. i Lobbying Brings Ban. The testimony regar sabota; | was brought out after &‘ commltg had heard Col. Miller testify that ex- periments in C. C. C. camps had shown a certain type of light Dodge truck does not stand up as well as other makes under hard usage. The Army has refused to award con. tracts to any Chrysler products be- cause the Fargo Co. the committee said, has a contract on a contingent fee basis with a man employed to solicit War Department business. The Army requires each bidder to swear no one has been employed for lobby- ing purposes. J. B. Woodside, former assistant to Controller General McCarl and now Wi manager of fleet sales for the General Motors Corporation notified the committee by letter that charges that his had taken advantage of the disbarment of Ford under the N. R. A. ruling were without foundation. Charges Prejudice. ‘Woodside declared the charges “un- doubtedly were made with a view to prejudicing the minds of the com- mittee against General Motors.” He cited a number of recent bids to show Chevrolet had under bid other manu- facturers, despite the fact Ford was removed from competition. " “It cannot be seen” Woodside’ letter said, “how the charge that has been made to the effect that other motor companies are increasing their it, as I'm in favor of competition.” Assistant Secretary of War Wood- ring told newpaper 1aen he is willing to rescind the anti-lobbying clause in motor contracts, at least temporarily, if the committee requests it and it the move is shown to be in the public in- terest. “I am strongly in favor of competi- tive bidding,” Woodring said. “The more bidders there are on Army con- tracts, the better it will suit me. I have no desire to limit bids on con- tracts to one or two bidders, and if the committee is of the opinion the present regulations limit bidding, I will be glad to follow their wishes. “I issued the order requiring the signing of these affidavits so that all firms coming to the War Department would come with clean hands. If cir- cumstances now are different than they were when the order was issued and the committee feels it is in the best interest of all concerned, I will be glad to consider lifting the affidavit requirement, temporarily at least.” Questioned About Lobby. Col. B. F. Miller, motor procure- ment chief in the quartermaster gen- eral's office, was questioned by the ccmmittee yesterday as to the possi- bility of a motor car manufacturers lobby in Washington. Col. Miller said most of the manu- facturers have representatives here, but he would not term them lobby- ists. Some of the car representatives have entertained Government officers, he said, and officers have been offered discounts on automobiles purchased for thelr private use, ‘ |