Evening Star Newspaper, November 24, 1934, Page 1

WEATHER. (U. 8. Weather Bureau Porecast.) Feir and colder, lowest temperature about 32 degrees tonight; tomorrow fair; moderate northwest winds. Temperatures —Highest, 68, at 1 p.m. yesterday; lowest, 42, at 7 a.m. today. “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. Full report on page A-2. Closing N. Y. Markets, Pages 12 & 13 @ Entered as sec No. 33,079. ANGLO-U. S. NAVAL AGREEMENT SEEN IF PARLEYS FAL Informal Accord Forecast to Make Both Fleets Complementary. RATIO TERMINATION PREDICTED BY SAITO Tokio’s Ambassador Sounds Doom of 5—5—3 Treaty Regardless of Outcome of Talks. By the Associated Press. LONDON, November 24—In the event the present naval limitations treaty is junked, the United States probably will seek an informal ac- cord with Great Britain on a gen- eral naval policy in order to prevent a naval building race between the two powers, it was learned authoritatively today. Suck. an informal accord probably would include undertakings to keep each other fully advised of the other’s building program as well as an agree- ment to make both fleets complemen- tary. It was stated, however, that no discussions on this matter have as yet taken place, and it was expected there would be none until it would be evident there was no further hope of reaching a compromise on a naval treaty. Naval Race Feared. Meanwhile the threat of a limit- less naval building race between the three great rulers of the seas hung today over the tri-power conversa- tions as hope was virtually aban- doned for a compromise on Japan's demand for naval parity. The negotiations between the United States, Japan and Great Britain reached a crisis Yesterday when the British sided with America in declining to recognize Tokio's de- mands for outright equality. The British expressed themselves as still hopeful that some sort of a com- promise could be reached, and Admiral Isoroku Yamamoto, Japan- ese delegate, hinted in a press inter- view last night that he would “make & conciliatory move” next week. Americans Firm. The Japanese admiral made it clear, however, that any new proposal would be based on the principle of actual tonnage equality. Norman H. Davis, the American delegate, and Admiral Willlam H. Standley indicated the deadlock might send them home by Christmas. The expected breakdown could re- sult in a mere postponement of negoti- ations until chances of an agreement improve, or an unreined competitive naval building race. The American anticipate that Tokio’s official denunciation of the Washing- ton naval treaties, repeatedly forecast by Japan, would be made soon. PREDICTS DOOM OF TREATY. Baito Sounds Notice on Heels of Anglo-U. S. Unity. PHILADELPHIA, November 24 (). —A flat declaration of intention to terminate the tri-power naval treaty, signed at Washington in 1922, was Japan's answer today to an Anglo- American warning that the two Eng- lish-speaking nations will act jointly in any situation arising from Japa- nese scrapping of the pact. The treaty's doom was predicted by Hirosi Saito, Japanese Ambassa- dor to the United States, less than 24 hours after the governments of this country and Britain announced an ac- cord supporting the present 5—5—3 naval ratio. “Japan is going to give notice of her intention to terminate the Wash- ington treaty of 1922,” the Ambassa- dor declared last night in an address before the American Academy of Political and Social Sciences. Outcome Disregarded. “This will be done regardless of the developments at the preliminary conference at London.” Attacking the ratio system as “in- appropriate,” Saito said his country wants a “new formula of limitation™ based on two major points: First, parity among the three powers; and, second, “drastic reductions.” The Japanese, he continued, are willing to cut their Navy to half its| present size if England and the United States will scale down their sea-going armaments to an equal point. “Japan is earnestly interested in the diminution of the navies, so that the chance of war should be reduced and the financial burdens upon the peo- ple should be lessened,” Saito added. Protection Wanted. “The most practical and the most reasonable way of accomplishing this aim would be, to the mind of the Japanese government and people, to adopt a program under which, in re- ducing the size of the navies, none would feel a menace to its national security, This is exactly the basic idea underlying the Japanese propo- sal * oo “Japan is in favor of the total abo- lition of capital ships and aircraft carriers. * * * She is prepared to go down as far as the general situation in the world permits. * * *” CHANGE IN KEYSTONE AMENDMENTS SOUGHT By the Associated Press. WILKES-BARRE, Pa, November 24 —Legislation to permit amend- ments to the Pennsylvania State con- stitution within a one-year period is- advocated by the Executive Commit- tee of the State Tax Justice League. A resolution passed by the commit- tee last night, urges that voters be permitted to amend the law without permission of the General Assembly. The present law, it was pointed out, entails a delay of five years because two legislative sessions must approve proposed changes before a referendum is taken. Codification of ail State laws by a commission to be appointed by Gov- ernor-elect George H. Earle was also advocated. 3 > ond class matter C. post office, Washington, D. ¢ Foeni WITH SUNDAY MORNING EDITION WASHINGTON, D. C, Galapagos Mystery Veil Lifted by Sea Captain Skipper of Clipper Identifies Bodies as Those of Arthur Estampa and | Alfred Lorenz. By the Associated Press. SAN PEDRO, Calif., November 24— An explanation tending to lift the mystery veil from the deaths of two colonists on one of the barren islands of the Galapagos group was offered today even as a scientific party was on its way there intent on solving the puzzle. From descriptions radioed to the Associated Press when the bodies were found a week ago on volcanic Marchena Island, Capt. Fred Ostrem identified the victims as Arthur Es- tampa, 34, and Alfred Rudolph Lo- renz, 40. * The captain, who brought his tuna clipper into port yesterday, is well acquainted with the half dozen colo- nists who isolated themselves from the world on the islands off the coast of Ecuador. Gone for Fresh Meat. He deduced that the two had gone to the island for fresh meat, when | Estampa’s 34-foot power cruiser, the Falcon, was wrecked on the rocks. With no passing ships to see their distress signals, the two waited cer- tain death from thirst on the water- less island Ostrem said the boat was the gift of Theodore Roosevelt, jr. but in New York Roosevelt denied it. “Just off the point where the bodies were found there is a long reef jutting out to the southeast,” Capt. Ostrem said. “The Falcon must have piled up on these rocks, and Lorenz and Estampa escaped in the small skiff found near the bodies. “I knew Estampa well. He was a Norwegian. Lorenz was the deserted companion of the Baroness Eloise Bonsquet de Wagner. They became friends when Lorenz released Estampa after he had been held prisoner for three days by the baroness. She had objected to his shooting fresh meat on the island.” Wrecked on Reef. Ostrem said the pair had evidently gone in the power boat from Inde- fatigueable or Santa Cruz Island for meat to Charles Island, the only place it could be obtained, and on the way back were wrecked on the reef of Marchena Island. He suggested Estampa obtained the baby clothes found near the bodies from Mrs. Albert Wittman for his wife. This also would explain the leters written by Margaret Wittman found near the bodies, Full reconstruction of the tragedy will await a report from Capt. G. Allan Hancock, who sailed yesterday with 10 scientists aboard his cruiser Velero III, expecting to reach Mar- chena in 10 days. The party may also learn what hap- pened to the bizarre Baroness de ‘Wagner, who established herself as “empress” of Charles Island. She was reported to have disappeared from the Adam-and-Eve retreat six months ago. Only six colonists remain—the Witt- man family of four, Dr. Friederick Ritter and his mate, Frau Dore Strauch Koerwien. DAWSON CHARGES ELECTION FRAUD Defeated Fusionist Candi- date Files Recount Peti- tion in Montgomery. BY JACK ALLEN, Staff Correspondent of The Star. ROCKVILLE, Md., November 24— Connivance between the Democratic and Republican election judges in Po- tomac district was charged by Walter ‘W. Dawson, Fusion party nominee, in a petition filed in the Circuit Court here today for a recount of the votes cast in the contest for State’s attor- ney during the Montgomery County election three weeks ago. It is set forth in the petition that the Democratic judge read all of the ballots cast in the polling place at Potomac and that with the *“con- nivance and concerted effort of the Republican judge” he refused permis- sion to the challengers of the Fusion and Republican parties to examine or see whether they were properly marked or were being properly called. Claims Discrepancies. The petition filed by Dawson, who was defeated by James H. Pugh, can- didate of the Democratic party, by a margin officially announced at 46 votes, further asserts that the tally sheets of the clerks at Potomac fre- quently were not in accord and that the plurality for Pugh reported to the Board of Canvassers by the Po- tomac judges was 21 in excess of that (Continued on Page 3, Column 2.) COAST GUARD RUSHES TO AID DISABLED YACHT Vessel on Treasure Hunt in West Indies Drifts Helplessly in Gulf of Mexico. By the Associated Press MOBILE, Ala., November 24—A ship believed to be the yacht White Cloud with about 10 men aboard drifted helplessly with disabled steer- ing gear in the Gulf of Mexico today while the United States Coast Guard cutter Unalgo sped to its rescue from San Juan, Puerto Rico. The ship’s position in a call for aid was given as 550 miles northeast of St. Thomas, the Virgin Islands, in the mouth of the Gulf of Mexico. The Unalga was expected to reach the disabled vessel tonight or early to- morrow. At first reported as the schooner | White Cloud, the ship was later identi- | fied by Mrs. Alice S. Cooper of Pitts- field, Mass., as a yacht owned by her husband, G. Proctor Cooper, 3d, who | has been on a search for treasure on a West Indies island since November 3. 11 DEAD, 21 INJURED | Death Toll Mounts in Brussels World Fair Tragedy. BRUSSELS, November 24 (#).— The toll of dead in the world's fair tragedy had mounted to 11 today. | with 21 others seriously injured. ‘They were crushed yesterday in the collapse of a metal scaffolding on one of the halls of the Belgian section of the Brussels International Exposition, i under construction here. Soldiers, police and firemen worked at the debris all night and ‘were at- tempting to recover three bodies be- leved to be buried in the wreckage. BETTER BUSINESS SENTIMENT SEEN Chamber Offers Statistics on Good Prospects for Yule Trade. | By the Assoclated Press. As the Nation headed today into its period of holiday trade, the Chamber of Commerce of the United States produced statistics to show *improving business sentiment.” This and other pronouncements, leading many business men to hope the Christmas trade might be the| best since 1929, were keyed to a note | of quiet optimism. The chamber said the improving sentiment, seen in October, continued in November. It cited “a 6 per cent rise in the volume of check payments, steady retail sales, stable wholesale prices, favorable car loading reports and increasing steel production.” Less Reassurance Required. Although the chamber’'s position is that the Government should take no‘ steps to diminish business confidence | and create uncertainty, it indicated a belief that “less in the way of reassur- ance” is required now than at any time in the past several months. “In responsible modern enterprise,” the statement said, “there is such a long interval between origination of additional ,undertakings and accom- plishment, with so large outlays for labor and materials and so small a margin for profit or loss, that a feel- ing of freedom from the danger of unpredictable outside influences is necessary to released initiative. “To give this feeling in many di- rections, it will now require less in the way of reassurance than at any time since last Spring.” Like the chamber, the Commerce Department finds encouraging busi- ness factors. It is preparing for its forthcoming monthly review a state- ment reporting increased industrial production, employment, pay rolls and construction. Wide Check Use Reported. The chamber, enlarging on last month’s signs of better sentiment, said: “Such a broad index of national activity as the volume of payments by checks in the commercial and in- dustrial centers of the country is run- ning 6 per cent over the level of last year, and 20 per cent over the year before.” “From "early September,” it said, “the production of steel has advanced moderately each week, until now the level is better than for the corre- sponding part of any year since 1931, The textile industries continue to re- gain ground they lost in September.” Predicting November’s figures would show “maintenance of employment,” the chamber said the recent period has been one of “further progress in consolidation of positions from which steady advances are possible, given general conditions permitting orderly planning and execution of business operations.” SCOUTS CAPONE PAROLE SAN FRANCISCO, November 24 () —There’ll be no parole for Al Capone or the other Alcatraz Island prison “incorrigibles,” Col. Joel Moore, chief Federal prohibition officer, said yesterday. “Al Capone and others of his' like will have to serve out tneir entire terms in Alcatraz Prison—there will be no paroles recommended by my department for them,” Col. Moore declared. $1,000,000 Hunted as Recluse’s House Yields $667,000 Hoard By the Associated Press. BROOKLYN, November 24.—A treas- ure hunt was conducted through the ramshackle Herle family home today, with $667,050 elready turned up—and perhaps a million to come. . Ever since Miss Louisa Herle, 79- year-old recluse, died a month ago workmen have been hunting the wealth she acéumulated in real es- tate negotiations, with a tidy sum made in the flourishing family gro- cery store as a nucleus. Beneath the kitchen linoleum, in her living quarters and in her safe b they found relatively small sums in cash and mortgages. But the rest defied discovery. Then they came to the cellar, littered with junk and plaster. There, beneath the rubbish, $525.- 750.77 was found late yesterday in cash, bonds, mortgages, checks and bank books. It is believed that Miss Herle pos- sessed $1,500,000 at her death. The workers, seeking it at the direction of the executor of the estate, said the walls of the house will be ripped open, the floors lifted and the vents and flues explored, FRANCO-RUSSIAN MILITARY ACCORD OFFICIALLY DENIED Claim That Helped Force Huge Arms Budget Is Repudiated. ARCHIMBAUD INSISTS ‘UNDERSTANDING’ EXISTS Reporter Alters Statement Only Slightly—Laval Appears at Hurried Cabinet Meeting. By the Associated Press. PARIS, November 24.—The startling assertion that an alliance had been arranged between France and Russia met with official denial today from the ministry of foreign affairs, which said there had been no “military accord.” “All rumors relative to the existence of a Franco-Soviet military accord are without foundation,” said the min- istry. The declaration yesterday of Leon Archimbaud, reporter of the budget, that such an alliance had been ar- ranged helped force through the Chamber of Deputies a staggering budget for French national defense of some 12,700,000,000 francs ($838,- 000,000). “Understanding” Claimed. Archimbaud's friends that he had emphasized yesterday an “understanding” rather than an alli- ance or a military accord. & The implications of Archimbaud’s statement caused a cabinet meeting to be called hurriedly today. Foreign Minister Pierre Laval, fresh from his commented talks with Foreign Commissar Maxim | Litvinoff of Russia at Geneva, laid the whole European situation before President Albert Lebrun and the ministers. The cabinet then announced ap- proval of its long-delayed reply to Poland's refusal of September 27 to| join an Eastern Locarno pact, and officials reiterated that continuance of those negotiations indicated France has not yet made any accord with the Soviet. Speech Altered Slightly. Archimbaud met the suggestion of officials that he modify his yesterday’s declaration by altering it in the official journal. Instead of stating “I don’t say an alliance or military ‘accord,” he cor- rected the official report to read: “Is there between these two great nations a military treaty or simply a close union?” which gave officials small satisfaction. He left untouched his phrase “It is undeniable that this understanding exists.” Cabinet Differences Rumored. Rumors of a strong difference of opinion in the French cabinet were circulated. Archimbaud’'s announce- ment was said in Radical-Socialist circles to have been given with the knowledge of former Premier Herriot, head of the party, in order to force Laval back to Barthou's licy (‘ a close arrangement with Russia 8nd a strong attitude toward Germany. Archimbaud's declaration, which went unchallenged, was considered by Herriot's supporters as desirable both to warn Germany and to reassure his_country. The budget total passed by the BODIES OF 3 GIRLS FOUND NEAR ROAD Blood and Bruise Indicate Violent Deaths—Identity Not Yet Established. By the Associated Press. CARLISLE, Pa, November 24 —The bodies of three girls, aged about 5, 10 and 14, were found on South Moun- | tain near Pinegrove Furnace today. A fleck of blood was on the mouth of the 10-year-old girl and there was a bruise across the face of the oldest 1 one, as though she had been struck by a blunt instrument. about 20 feet off the State road, lying on a green blanket. Another green blanket covered them. There was nothing to indicate the identity of the girls. The bodies were clothed, but no hats were found. The blankets bore no markings, but each had a 2-inch purple satin hem. All three girls were golden-haired and facial resemblances indicated they might be sisters. The bodies were found by John E. Clark and Clark Jardine, care- takers of the James M. Cameron estate at Kings Cap, nearby. Coroner E. A. Haegele, District At- torney Fred J. T. Empleton and State police left for the scene, 15 miles from Carlisle. Police said they had no reports of missing children. s MISSING WELLESLEY WOMAN ENDED LIFE { Body Found in Pond Near Home. Suicide Certificate Is Issued. chamber was an increase of 1,640,000,- | 000 francs ($108,240,000) over the ex- penditures for this year. MOSCOW IS SILENT. Indicate, However, That Statement Was “Misinterpreted.” MOSCOW, November 24 (#).—Soviet officials today declined to comment on (Continued on Page 3, Column 3.) LA FOLLETTE URGES U. S. CENTRAL BANK Wisconsin Governor-elect Says Institution Would Solve “Strike of Capital.” By the Associated Press. 'PITTSBURGH, $a., November 24— Gov.-elect Philip La Follette of Wise consin says he favors a national central bank, with the “medium of exchange owned and controlled by the Government,” as a solution for the present “strike of capital.” The Progressive heir to Wisconsin's long-lived political dynasty outlined his views yesterday in a speech on “Capital or Communism” at a meet- ing of the Pittsburgh League of Wom- en Voters. Commenting that the newspapers have played up labor strikes in inch- high headlines, La_Follette charged that most of them have ignored “the worst strike of all, the strike of capital.” “No progressive wants monetary in- flation,” La Follette continued. “We do want income and inheritance taxes screwed on good and tight, with no leaks around the edges.” La Follette predicted the rise of a new third Nation-wide party, aligned on the basic issue of production for use in an economy of abundance. I Guide for Reader: I Amusements Church News Comics Features LB-12 ‘B-1-2-3-4-5-6 B-6 Radio .... Real Estate By the Associated Press. ‘NATICK, Mass., November 24.—Miss Jessie R. Adams, 62, associated with Wellesley College for 25 years and for the last nine years manager of the college information bureau, committed | suicide today by drowning in a pond about half a mile from her home. She was pronounced a suicide after a medical examiner’s investigation. Miss Adams had been missed from her home at 7 am. today. The body was found floating 300 yards off shore. She had left her home clad only in pajamas and shoes. Owing to ill health, Miss Adams was granted a leave of absence by the college last March. Miss Adams came to Wellesley Col- lege in 1909 and served as secretary to the dean until 1924, when she was placed in charge of the college infor- mation bureau. JOBS AND PAY SHOW * GAIN IN PENNSYLVANIA By the Assoclated Press. HARRISBURG, Pa., November 24.— Employment picked up 2 per cent in Pennsylvania during October, and the pay roll jump was almost triple that of the employment increase, or 5.7 per cent. The figures, based on reports from 10,500 firms, were released yesterday by the State Department of Labor and Industry. The general level of em- ployment fell 1.3 per cent’ below last October, but wage payments were up by 2.4 per cent. The- textile and clothing industry showed the highest gain. Employment was up 9.3 per cent and pay rolls 21.7 per cent. Manufacturing industries gained 2.4 in employment and 7.2 per cent in pay rolls. Non-manufacturing industries increased 1.4 in employment and 4.1 per cent on pay rolls. The Star Expedition Takes M;Jm'gllt Ride In Santa’s Sleigh Read Capt. Kleinschmidt's wire- lessed story from Santa Claus Land describing a thrilling mid- night trip through the clouds. ON PAGE 2 M Today's Star ‘The bodies were found side by side | o Star SATURDAY, NOVEMBER 24, 1934—TWENTY-SIX PAGES. L L] OL! SCOUT, | DONT KNow WHETHER. YOU'RE IN A POSITION To PAY 1T BACK! Yesterday’s Circulation, 121,823 Some Returns Not Yet Received. (P) Means Associated Pre: | i ! I Bloodshot Optic ’ | Of Glass Ordered | ; For Morning After ‘ | _ | Albuquerque Man Says! eeds Match for Good Eye. By the Associated Press DENVER, November 24 —An Albu- querque, N. Mex., man wants a blood- shot glass eve for “the morning- | | after” wear. | He wrote a Denver factory yester- day: | “Please send me the exact duplicate of the glass eye I'm sending you only | make it a little bit bloodshot. When | | T have been out with the boys the night before, my glass eye remains | nice and bright while my one good eye wakes up dull and bioodshot. I want 'em to match.” The Denver firm said the Albu- querque request is the first of its kind, | but, after experimenting a bit, ex- pects to fill it. ALATODISHISS 15 NEXT MONTH Employes Appointed for 60 Days to Go December 3 and 11. Dr. W. L. Darby, Head of! | activities of the local papers.” | Joint position they are taking will | Three hundred and five temporary employes of the Agricultural Adjust- ment Administration, appointed to 60- | ¢ay lobs during the rush of relief | | checks to the Middle West drought areas, were notified last night and today that their services will end be- tween December 3 and 11. | The notices informed the workers | they will not be reappointed and that | | their terms of appointment will not | be extended. 300 in Field to Go. At the same time, it was learned. | | approximately 300 more in field jobs | also will be dropped when the period of their appointments expire | T. Weed Harvey, business and cost administrator for the A. A. A, ex- | plained that altogether the number of such appointments will reach more | than 800 and that the last of them {probably will give up their jobs by | January 1. In addition, he said, with the year's corn-hog, cotton, wheat and other | crop reduction checks virtually out of the way, there will be a further re- duction, bringing the number to close | to 1,000 by the first of the year. Appointments for 60 Days. “These employes were put on gradu- | ally as they were needed,” Harvey ex- plained, “and their appointments were for 60 days only. We are not firing anybody, but are simply not extending or renewing the appointments when they expire. “There are 305 who will leave the ‘Washington offices between December 3 and 11, and about 30C more in the field likewise affected. But this is| not a ‘wholesale’ dismissal of em- ployes.” ‘The men and womer who are losing their jobs plan to appeal to the American Federation of Government (Continued on Page 3, Column 4.) | | | write numbers slips in the District. | ployes of the Los Angeles Railway Co. serves virtually all the city with the | effective at 2 a.m. today. | wages, a revision of working hours | CHURCHES INDORSE WAR ON NUMBERS Federation, Recalls Its Earlier Fight. Rev. Dr. W. L. Darby, president of | the Washington Federation of Churches, indorsing The Star’s cam- | paign against the numbers game, said | today: “I am heartily in favor of any plan that will assist in promoting these | efforts and bringing this nefarious | gambling racket to an end.” i The Washington Post, the Herald | and the Times have joined The Star in a plan to stop the publication of | totaled race numbers from the various tracks. All local radio stations have also enlisted. Legislative Effort Fails. Wilbur La Roe, jr., chairman of the | Committee on Civic Affairs of the Washington Federation of Churches, tried a year ago to get action against the numbers game, according to Dr. Darby. The Federation appeared be- fore the Senate committee consider- ing a bill to make the game illegal in the District. The bill passed the Sen- ate, but failed in the House. “We are greatly pleased with the Dr. Darby said, “and we hope that this prove beneficial.” With a Civic Affairs Committee made up of ministers and laymen, the| Washington Federation of Churches | intends to continue its fight against the numbers game, Dr. Darby stated. He said: “We were about the first to take this up, although that is not generally known, and we intend to| carry on, with The Star and other newspapers in the campaign.” Plan New Attempt. When Congress convenes in Janu- ary, representatives of the Washing- ton Federation of Churches will ask members of both Houses to give due| consideration to the bill prepared by | Corporation Counsel Prettyman, a proposed measure making it illegal to “The Star's campaign meets imme- diate response from members of the federation,” Dr. Darby said. LOS ANGELE'S RAILWAY VOTING ON WALKOUT| 2,500 Employes Involved in Pro- posed Strike of West Coast Transit Company. By the Associated Press. LOS ANGELES, November 24 —Em- voted on a strike proposal today as hope for adjusting their differences with their employers waned. The company, employing 2,500, | exception of the main Hollywood service. ! Meanwhile trainmen and signalmen | of the Pacific Electric Railway an- nounced indefinite postponement of | their strike which was to have become The workers are demanding higher | and recognition of their union. In 1914 By the Assoclated Press. A vanishing island, unseen since it was swallowed by the “serpent’s mouth” 20 years ago, has suddenly popped up high and dry on the coast of Trinidad to the consternation of the inhabitants of the British West Indies. Flabbergasted by the phenomenon, the American vice consul at Trini- dad forwarded a report to the State Department today describing ' the antics of the strange “jelly-like” visitor from sub-oceanic regions. The geological freak, he reported, had apparently changed into some- thing like a “well ploughed farm” and erupted on Trinidad’s shoreline like a gigantic wart on a dill pickle. “In November, 1911, this strange island rose from the sea in Erin Bay in Southern Trinidad,” the vice con- sul reported, “accompanied by ex- commotions in the sea and immense columns of smoke and flame. People thought the end of the world had come.” Island Which Dropped Into Sea Reappears at Trinidad jellylike mud from which steam! spouted, and it exuded a smell of sulphur, he said. 1 Slowly the island began disappear- ing, “washed away by the heavy seas and strong currents from the ser- pent’s mouth,” and then it was sud- denly gone, swallowed by the waters. “And now,” he reported, “the miss- ing island—pushed to the surface by another upheaval—has come ashore. For some distance inland near Erin,, a split has occurred in the earth and a large area, hiteherto much the same as the rest of the island, has taken the appearance of a well- ploughed farm. The surface is brok- en and cracked, thrown up here and sunken there, trees lean at absurd angles, and the whole appearance is that of a crazy quilt. “On the shoreline a whole new beach, about 800 feet long, has been formed by subterranean upheavals and mud pushing down to the coast and raising the beach.” An official report to the British authorities says the phenomenon fs of volcanic origin. 14 TWO CENTS. OFFICIALS SETTLE RIFT ON HOUSING AT WHITE HOUSE Ickes and Moffett Prepare Joint Statement Closing Incident. ACCORD IS REACHED IN TWO-HOUR PARLEY Business Aroused by Statement Ickes’ Plan Would Wreck Housing Act. By the Associated Press. James A. Moffett, Federal housing administrator, and Secretary Ickes framed a joint statement today de- signed to wind up the incident be- tween them over private and Federal financing of housing. Evidently at the instance of Presi- dent Roosevelt, both hastened to the White House in the forenoon to sit for almost two hours with Stephen Early, a presidential secretary. A statement was painstakingly pre- pared, presumably to be issued before the day is out. The substance was withheld meanwhile. Ickes was accompanied by Michael Straus, Public Works Administration publicity director, and actually ran through the lobby of the White House to Early's office. It was understood that Moffett's statement fast night to the effect that the carrying through of Ickes' ideas for housing construction would wreck the national housing act had aroused business throughout the country. Telephone calls and telegrams were pouring into the White House indors- ing Moffett’s stand and pledging co- operation in defeating the Ickes pro- gram as it relates to the construction I-of individual homes. Would Freeze Capital. Aroused by Secretary Ickes' sugges- tion for a vast program under which Government money would be used to build inexpensive homes and sell them to the public at interest of 3 per cent, | Moffett assailed it as disastrous. “Private capital would immediat-ly freeze up again,” he said. “and rcal estate values throughout the country would be knocked down overnight to 20 cents on the dollar of nresent values.” “There should be no Government competition with private capita! constructing homes for sale,” sisted. His statement came shortly after Ickes, attacking interpretations which he said had been placed on his marks in a press conference Thui day, hastened to declare he ‘strongly indorsed” the housing drive Moflett heads. Under this plan the Govern- ment seeks to stimulate the use of private funds for home-building cn a vast scale. Desires Private Expansion. “I reiterate,” Ickes said, my personal and official desire that private initiative expand to the limit of its ability efforts to make possible desirable housing contribution and thus further the recovery program.” “Misguided” reports had been pub- lished, he said, creating “a false im- pression that I am opposed to a re- sumption of private enterprise in the field of housing.” Ickes, regarded by many as a leader among the more “liberal” members of the administration, had said on Thursday he believed the Govern- ment could build better and cheaper homes than private capital. He men- tioned potential costs as low as $1,600 per house. “The Government,” he said, “is not looking for any extra work and re- sponsibilities, but we can't sit around indefinitely waiting for private capi- tal to come in.” Moffett, although agreeing that such things as slum clearance and subsistence homesteads might well receive Government aid, opposed competition with private enterprises “No money would be loosened and the housing act would be torn up,” he said, “building and selling houses would be putting the Government in competition with private enterprise.” Ickes Explains Stand. It was learned yesterday that Ickes earlier in the day had called Moffett to tell him he did not intend his pro- gram to conflict with the Housing Ad- ministration. . Other administration representa- tives were active by telephone in dis- cussing the situation with both men. MofTett then postponed a conference with newspaper men to give Ickes time to issue a statement explaining his stand. “The Public Works Administration Federal housing projects are under- | taken in fields in which private enter- prise has not entered,” the Ickes state- ment said. “I am familiar with and | strongly indorse the program of the Federal Housing Administration to en- courage private capital to engage in housing. This is sound policy and is not in conflict with the public works housing program already under way.” MofTett agrees with Ickes that there should be wage adjustments in the building trades in low-cost housing areas. It seems natural to me,” said Mof- fett, turning to the general question of housing and the P. W. A. program, “that if the national housing act means what it says in name, it is the intention of Congress that private en- terprise shall carry out the construc- tion work. “The flight of capital from home building was due to the flood of fore- closures that faced it. The Home Owners’ Loan Corp. was formed to stabilize the mortgage market. The moment this is done private capital will come back in. “Title 2 provides strictly for pri- vate buliding and is financed privately except for the $10,000,000 voted by Congress to start it. “As I see it, the Government can- not compete with private enterprise. No money would be loosened and the housing act would be torn up. Build- ing and selling houses would be put- ting the Government in competition ‘with private enterprise. “If the national housing act means what it says, the real housing activi- ties will come under the ack” A je