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WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy, slightly colder tonight, mini- muwn temperature about 28 degrees; to- morrow probably snow; moderate winds. Temperatures—Highest, 47, at 10:45 am. today; lowest, 35, at 5:30 a.m. today. Full report on page A-4. Closing N. Y. Markets, Pages10,11&12 No. 33,109. “INMY'S PLAGE" ORDERED CLOSED BY COUNTY HEADS Prince Georges Commis- sioners Warn Policemen Ouster Will Follow Failure to Act Immediately. EFFORT TO OPEN NEW RESORT ALSO BARRED Harassment Campaign of D. C. Officials Gives Board Evidence of Type of Co-operation It Has Wanted to Carry Out Long- Evaded Issue to End Gambling Reign. Orders to prevent Jimmy La Fon- taine from conducting any further gambling operations in Prince Georges County, Md., were issued today by the county commissioners. ‘The orders, climaxing three days of harassment by District police, during which definite blows were struck against the numbers racket and the gaming yesort on Bladensburg road, were to be given to County Police Chief J. J. Crowley as a result of a meeting yesterday in the home of Commissioner Joseph H. Blandford. A majority of the commissioners an- nounced a determination not to accept “alibis” from the county police force for failure to carry out their edict. “We will not hesitate to replace any member of the present police force who fails to obey out instruc- tions,” the commissioners said after their meeting. Results Are Demanded. “We know the officers can find plenty of alibis if they do not want to do a thing. There have been alibis galore in the past. But we are not in= terested in alibis now. We recognize the responsibility is ours and cannot be dodged. We do not care who gets the credit, but we want results.” Jimmy’s place, just across the Mary- land line on Bladensburg road, closed Saturday and the county commission- ers directed that the police “keep it closed” and see to it that any other similar place which might be opened is raided immediately and forced to close. ‘These are the instructions which Perry Boswell, president of the County Board. said he would convey today to Chief Crowley. No formal written order was pro- mulgated by the board. nor was it considered necessary to meet n spe- cial session to write one, he use In 1932, when civic leaders w ‘aging one of the periodic campais . Jimmy's, an order was 7 . ing police to close gambling house. Old Order Stands. Although the commissioners re- sponsible for that order retired from office December 4, the new board expressed the opinion it still is in effect and their duty is to carry out its enforcement. “All we have to do is tell the police we want the order carried out,” said the commissioners. “Ever since we took office, we have been con- sidering what steps we should take to close Jimmy's. “We were studying several possible methods of procedure when, to our great satisfaction, Washington police began their ‘harassment’ campaign last Thursday. In view of the evi- dent intent of the Washington authorities to co-operate at this time, we concluded we should act now.” District police officials decided on the campaign of harassment because of their inability to raid “Jimmy's” themselves. Members of the vice squad and twelfth precinct were as- signed to picket the District boundary of the resort and record the tag num- bers of all cars entering the place. Patrons who came out and crossed the District line were stopped and forced to exhibit their driving permits and registration cards. Their names were jotted down for possible use be- fore the Prince Georges County grand jury. Thus far, however, no request for this data has been made by county autharities. Patrol Still or: Job. Lieut. George Little, head of the vice squad, said he would assign a patrol to the place this morning to make sure the place has not re- opened. He said there were rumors in the underworld Saturday that La Fontaine would open in another part of the county, possibly in the vicinity of Suitland, where an elaborate gam- bling casino was built a few years ago by a rival syndicate. La Fontaine was said to have bought the place to prevent competition, and Tesidents of the neighborhood said it appeared available for occupation on short notice. ‘This place is known both to Dis- trict and Maryland police and was believed to have been in the minds of the Prince Georges County Com- missioners when they directed po- lice to prevent La Fontaine from moving to another location. Spokesmen for the board empha- sized their action was based on long deliberations. “You cannot say too strongly that we intend to see that our orders are carried out,” they said. In addition to Boswell and Blandford, the board is comprised of Harry W. McNamee, Capt. Vinton D. Cockey and James B. Berry. S10us Blast on Italian Submarine. MONFALCONE, Italy, December 24 (#).—A warrant officer was killed and nipe men injured today by the explo- sion of the motor on the submarine Fretelll Bandiera, The cause of the accident was not immediately deter- wmined. The undersea boat was about to leave for Pola at the time. L] Entered as second class matter post office, Washington, D. C. New Wirephoto @h ¢ Fpening ~ Star WASHINGTON, D. C, MONDAY, DECEMBER 24, 1934—TWENTY PAGES. Service Hailed As Great Triumph of Sciencg Speedy Transmission of Pictures Com- ONCE AND FOR ALL| ~ pares With Historic Introduction of News Telegraphy. The Nation - wide wirephoto serv- ice of the Associated Press, to be in- augurated in Washington by The Eve- ning Star on January 1 will repre- sent one of the outstanding triumphs of science and engineering of the pres- ent century. Its significance is In some measure comparable to the introduction of the telegraph 90 years ago in making the whole world one vast neighborhood. The history of the development of the two is not dissimilar. Bank in 1844, when Prof. S. F. B. Morse of New York University transmitted the first telegraph message on a circuit be- tween Washington and Baltimore, he brought to the newspaper its most effective tool. Soon after the first telegraph dispatch was filed in 1846, from New York to a Washington newspaper, a group of New York pub- lishers laid the groundwork of the present Associated Press by associat- ing to collect and receive news tele- graphically without domination by privately controlled agencies. It is in line with this tradition that the great wirephoto service has been inaugurated within the same agency. But today science and e{:zineerlng move faster. The telegraph in 1884, however superior to anything that had gone before, was a very archaic instrument compared with what. it is today and it was seriously debated for a time whether the system of using reflecting mirrors to transmit messages, brought to a high state of efficiency by the PFrench during the wars of Napoleon, was not a really more promising method of transmit- ting news. Up to 1900 wthe wires could carry only i5 words a minute, which were copied in long hand. At about this time improved equipment and perfection of the typewriter made it possible to increase the speed to 256 words a minute—but at that time the Associated Press had less than 15,000 miles of leased wires and the total report for a day did not exceed 15000 words. Fourteen years later, when some of the biggest news of all time was breaking in Europe, 30 words a min- ute was considered an efficient pace (Continued on Page 2, Column 4.) JOHNSON-RICHBERG ROW SEEN AT END They Exchange Greetings and Roosevelt’s Aide Is- sues Explanation. By the Associated Press. The latest incident involving Don- ald R. Richberg and Hugh S. Johnson, centering around the projected pub- lication of a series of magazine articles by the former N. R. A. head, was reported today to have been terminated by an exchange of Christ- mas greetings Richberg, director of the National Emergency Council, precipitated the exchange by writing the Saturday Evening Post that he would hold it “legally responsible” if it published anything reflecting on his reputation. In explanation Richberg today issued the following statement: “I had not the faintest intention of restraining any freedom of the press in writing to.Gen. Johnson's publish« ers. I have been libeled frequently and also frequently have been over- praised ip the newspapers. I have never brought suit for libel and do not expect to. “I, of course, am at a loss to under- stand why a private letter to a pub- lisher should be made public. “At the same time, Ggn. Johnson telegraphed me that thepe was noth- ing personal or scurriloys in his book and wished me a merry [Christmas. “T replied to Gen. Jghnson that I could not understand the publication of a private letter or statements re- portedly attributed to [ him, because I had consistently praised his great achievements and never discredited his motives. I recipro¢ated his holi- day greetings. “I trust this will terminate the incident.” SEVEN FEARED DEAD AFTER PLANE FALLS Hope Abandoned for Passengers and Crew of Ship That Dropped in Gulf. By the Associated Press. MAZATLAN, Mexico, December 24. -~—Hope was abandoned today for the seven occupants of a commercial air- plane which fell into the Gulf of California Saturday on a flight be- tween Mazatlan and La Paz, Lower California. Two of the seven were Americans, N. Abbot, a pilot, and Noel Bullock, owner of the plane. They had been making daily trips between the two cities. Other passengers included Prof. Braulio Rodriguez, an inspector of public education here; his wife and their daughter, and Dr. Sracho, an engineer in charge of the construc- tion of steamship piers in La Pas. The other passenger was believed to be a woman, but her identity had not been established. An airplane of the Aerovias Cen- trales (Central Air Lines) reported it had sighted the airplane Saturday afternoon partly submerged in the gulf, with its passengers clinging to the wings. The pilot went to the nearest landing field and boats were put into a search, but no trace was found of the craft. —_— Australian Plane Arrives. LONDON, December 24 (#).—The first regular air mail service from Aus- tralia reached Croydon Airport today 3 minutes ahead of the 12-day sched- ule for the 12,000-mile flight. ROPER'S REPORT STRESSES UPTURN 16% Gain in Profits by 500 ' Firms Cited, Despite Some Low Spots. By the Associated Press. Secretary Roper told President Roosevelt in the Commerce Depart- ment’s annual report published today that business enjoyed a definite im- provement in the fiscal year ended last June, but that there still were some discouraging spots on the eco- nomic map. Citing increases in both domestic and foreign trade, the return to work of many unemployed and a general re\i-évnl of confidence, the Secretary said: “While evidence of the progress which has been made are Ee:grrete and numerous, the fiscal year closed with the capital goods industry still greatly depressed, private constmuction very low, unemployment large and relief demands making a steady and severe drain on the national budget. Bank Loans Low. “Further, the volume of bank loans outstanding, despite the plethora of bank credit available, remained at s very low level. Notwithstanding the lack of uniform improvement throughout the various aspects of our national life, the year as a whole brought definite gains from the low point of the depression.” The report added that although pro- duction and distribution costs ad- vanced during the year, the upward trend of activity was accompanied by an “improvement” in profits. A rep- Tesentative group of 500 companies re- ported profits approximating $1,400,- 000,000, representing an increase of about 76 per cent over the total for the preceding fiscal year. Bureau Work Reported. Another section of the report re- leased today covered the work of the Bureaus of Air Commerce, Census, Foreign and Domestic Commerce, Standards, Fisheries, Navigation and Steamboat Inspection, Shipping Board and the Patent Office, Coast and Geo- detic Survey and Lighthouse Service. Roper recommended a survey by the Fisheries Bureau of pollution of streams, a new high-voltage electrical laboratory for the Bureau of Stand- ards, early Senate ratification of tHe treaty on safety of life at sea and speeding of the work of making geolog- ical and fopographic maps of the country. _— FRANCE PLAYS SANTA TO CHILDREN OF JOBLESS Government Sponsors Yule Cele- brations in Every Large City in Country. By the Associated Press, PARIS, December 24—The French government today played Santa Claus to the children of France's 400,000 unemployed citizens. They gathered around big Christ- mas trees set up in every city in the country. In Paris, Christmas started in the morning with 10,000 children receiving gifts. Ten thousand more received their present in the afternoon. The process will be repeated tomorrow and the day after Christmas so that 60,000 children will be entertained in the capital. Each child gets bread, milk ana a bowl of hot soup, then goes to the tree for his gift package. Each bun- dle contains warm clothing, a paper hat, crackers, candy and a bar of soap. First Lady and Mrs. Rumsey Named as Outstanding W omen | (Copyright, 1034, by the Assoclated Press.) NEW ROCHELLE, N. Y., December 24 —For the second time in succession, Mrs. Franklin D. Roosevelt is at the head of Mrs. Carrie Chapman Catt's list of 10 outstanding women of the year. The Nation’s First Lady is “clearly the most outstanding woman of the year—perhaps the most outstanding this country has produced,” said the honorary president of the International ‘Women’s Suffrange Alliance, today. The others on Mrs. Catt's 1934 list are: Miss Frances Perkins. Mrs. Ruth Bryan Owen. The late Mrs. Mary Harriman Rum- sey, former chairman of the Con- sumers’ Advisory Board of the N. R. A. Mrs. Caroline O'Day, Representa- tive from New York. Mrs. Ruth Pratt, former Representa- ) § tive and member of the Republican National Committee. Mrs. fugust Belmont, for her wel- fare activity. Miss Catherine Courtney of Epg- land, for her work in behalf of world peace. Mrs. Margery Corbett Ashby of Eng- land, president of the Women's Suf- frage Alliance. Mrs. Fannie Brin of Minneapolis, president of the Council of Jewish ‘Women. “These are women who are able to work awith others on great projects,” said Mrs. Catt. “The day when women stood out alone has passed. This is the age of combined effort.” She said that in naming Mrs. Roose- velt she had considered “her happy domestic life, her uplifting influence on the whole country and her love and understanding of humanity.” * POPE PIUS URGES PEAGEPRAYERSAS WAR CRY SPREADS “Destroy Those Who Want Strife” Cited as Second Supplication. FONTIFF ADDRESSES CARDINALS IN ROME Three Masses Commemorating Birth of Christ to Be Celebrated in Private Chapel Tonight. By the Assoclated Press. VATICAN CITY, December 24— Pope Plus warned that “the clamor of war spreads ever farther” and urged the world to pray and work for peace, in his Christmas address today to the “curia” of cardinals. “We see a constant increase in warlike amms,” he said. “This is a distracting element in which the spirit seems to have no part. We are on the eve of a day when the heavens resound with the hymns of angels calling for peace on earth. “Never has a chant had son for being than today. Another Prayer. “We wish for peace. We bless peace. But if, in the future, there be some people possessed of a homicidal mania who wish to prepare for war, we shall have another prayer. “This prayer will be: ‘Destroy, oh Tord, those who wish war!® “But we prefer our first prayer.” His holiness concluded by repeating with passionate emphasis the word: “Peace! Peace! Peace!” The voice of war, said the Pentiff, is added to “all the discomfort, pain and real evil of the present crisis which is felt in all directions in private and public life.” He urged the world to invoke the comforts of the Virgin Mary in these troubles, particularly in the moment when the famous shrine at Loreto has been taken over by the Vatican under its treaty of conciliation with Italy. Rejoices Over Holy Year. The Pope said he rejoiced over the success of the holy year just past in a moment when the world was disturbed by so many conflicting currents as to suggest that the justice of God might be about to descend upon mankind. He said the Eucharistic Congresses at Buenos Aires and Melbourne were matters of consolation and expressed the desire that eucharistic congresses might develop evermore. year, he said, came at & moment when “the currents contrary to redemption were let loose—currents which after 19 centuries of tion, of the new Christian life, of Christian salvation, one might say, are renewed by the proclamation of ore rea- .. moral paganism, social paganism and | state paganism.” Fear God’s Justice. “These are horrible things,” said the Pope, “which make us truly fear some serious and formidable response of God through which the mercy of God might become his justice to awaken so many souls really sleeping again in the sleep of death.” ‘The Pope’s remarks were addressed, according to tradition, before the 20 cardinals of the “Curia” or that group of cardinals who reside in Rome. This year three of the pontiff’s most beloved advisers were gone. They were Cardinals Pletor Gasparri, Francis Ehrle and Giuseppe Mori. Tonight the Pope will avail himself of an age-old privilege accorded to every parish priest only on Christmas eve. With only a few intimates in attendance he will go to his private chapel at midnight and recite three separate masses in commemoration of the birth of the Savior. — DISTRICT GETS $715,500 FOR JANUARY RELIEF Allen Announces Fund Increased by Greater Demands for Fuel and Clothing. The District will receive $715,500 from the Federal Emergency Relief Administration to carry out its gen- eral relief program during January, Commissioner George E. Allen an- nounced today. This sum represents a small in- crease over the December allotment of approximately $702,000. Allen said the increase was occasioned by greater demands for fuel and clothing. The District's January allowance from the Federal Government for its transients’ gmzfim has not yet been made pub- c. PILOT IS FOUND DEAD IN CHARRED WRECKAGE By the Associated Press, SUNBRIGHT, Teun., December 24. —A pile of burned and twisted steel marked the end of the trail today for Russell S. Riggs, night airmail pilot, who crashed to his death on Big Pilot Mountain with a cargo of Christmas gifts. Riggs, pilot of an American Airfines ship between Cleveland, Ohio, snd Fort Worth, Tex., where he lived, cracked up. early Saturday morging. wreckage* was found Sunday Two farmers who found the wreck said that had he gone 50 feet higher he would have cleared the mountain, No 5:30 TOI'DOI'X'OW Because of the holiday there will be no 5:30 or Night Final editions ‘of The Star Tomorrow. Night Final subscribers will receive the Regular Edition. ILLEGAL FIREARM SALES GONTINUE Stronger Restrictions on Gun Ownership Urged for States. BY REX COLLIER. Legal traffic in machine guns and sawed-off shotguns destined for other than law enforcement or military uses has been completely halted by the firearms control law. ‘This does not mean that gangsters are not getting their usual supply of underworld-favored guns through il- licit channels. It does mean that roving gunmen of the Dillinger-Floyd-Nelson clan no longer are buying their weapons of mass murder in open trade, without interference of Federal law. Records of the Internal Revenue Bureau, which is charged with admin- istering the firearms regulations under revenue features of the act, disclose that not a single gun of the out- lawed type has gone into private bands legitimately since passage of the law last Spring. A total of 15,791 firearms already in possession of private owners at the time of enactment of the law have been registered with Internal Reve- nue collectors in the various States, however. Under the act these guns were not affected by the tax statute. Names Withheld. Names of the owners of the guns registered with the bureau are being withheld by the Treasury Department. While there is no prohibition in the act against publication of the names, officials hold that they are not privi- leged to disclose identity of the own- ers unless Congress specifically di- rects them to do so. It has been suggested in some quarters that publication of the list of gun registrants might have a salu- tary effect in connection with the Government's drive to curb pro- miscuous traffic in guns popular in gangland. Persons who have legiti- mate reasons for possessing such guns could have no valid ground for eb- jection to publicity, it is argued. At the Internal Revunue Bureau it is said that many of the guns reg- istered after passage of the act were antiques held by collectors. These ancient guns fall within scope of the law’s reference to short-barreled shot- guns, rifles or other guns not of the exempted pistol or revolver class. Guns Not Registered. ‘Because of the policy against pub- licity it i3 impossible to learn whether any known gangsters were brazen enough to register their ‘“Tommies” and sawed-off shotguns with the Government. This is considered as extremely undikely, however. ‘Under the gun-taxing law—a round- about method of control designed to comply with eonstitutional require- ments—the private purchaser of every machine gun, short-barreled shotgun or rifle or certain other criminal weapons, must pay a Federal tax of $200 on the sals. The tax does not apply to authorized law enforcement officers or military agencies. The law provides also for licensing of importers, dealers and pawnbrokers engaged in firearms traffic. A total of 21 of these gun merchants have been (Continued on Page 3, Column 7.) e MASKED BANDIT ROBS LIQUOR STORE OF $600 Clerk Held Up While Alone in Establishment—Police Start Search. Almost $600 in Christmas liquor sales money was obtained this morn ing by an armed bandit who held up a clerk in a liquor store at 9 L street northeast. The clerk, John Casper, 1207 Crit- tenden street, was alone at the sime. Seeing the man enter with a hand- kerchief tied over his face he started to run from behind the counter. The bandit drew a gun, waved Cas- par into a corner and opened the cash register, filling his with cash. ‘The loot included a package of about $500 which represented Saturday’'s sales. Caspar said the robber wore a gray overcoat. The man ran from the store and turned ln:g:n alley. Police were searching for fugitive. Belgian Steamer Rescued. Argentina to Ask For Pan-American Merchant Marine By the Associated Press. BUENOS AIRES, December 24.—An international merchant fleet of the American nations, flying the standard of the Pan-American Union, will be suggested by the Argentine delegation to the Pan-American commercial con- ference, which meets in Buenos Aires next March. The project, drafted by the Argen- tine Organization Committee headed by Foreign Minister Saavedra Lamas, would grant special inter-American privileges to two ships from each Na- tion which would make up the fleet under the Pan-American flag. Ships of this “Pan-American” fleet would be given freedom from port fees and other governmental charges by nations which are members of the Pan-Amer- ican Union to encourage inter-Ameri- can trade and touring. The ships would be national in character, although they could be built abroad or financed by foreign capital. At least 50 per cent of the crew, however, would be nationals of the country entering the ship. Argentina also will propose that NATION AWAITING CHRISTMAS SIGNAL Roosevelt Lights Tree at 5:10—Snow or Rain To- morrow Seen. As Washington stores close after the largest. Christmas shopping army in history and mailmen struggle with a record tidal wave of holiday mail, Presicent Roosevelt this evening offi- cially will open the Nation’s Christmas season by lighting the national com- munity Christmas tree in Lafayette square. The President is to arrive at the stand in front of the tree in Lafayette Park at 5 p.m. and 10 minutes later he will press a button which will flood the living tree with color. Radio will carry the signal to America. Tlere is & chance Washington may have a white Christmas. Snow, be- ginning early tomorrow morning, was forecast by the Weather Bureau, but the forecasters admitted they are more than a trifle doubtful about it, as the snow may change to rain. The local weather outlook depends upon & disturbance which was over Western Arkansas this morning. A minimum temperature of about 28 degrees to- night is anticipated. Roosevelt to Speak, ‘The President will voice his Christ- mas greetings to the American people in a 10-minute address which the National and Columbia networks will broadcast, beginning at 5:19 p.m. He then will return to the White House to begin a happy, quiet family ob- servance which will be duplicated in thousands of homes tonight and teo- MOITOwW. Mindful, howevey, of those other thousands who have no homes in which to celebrate, Mrs. Roosevelt to- day attended the Central Union Mis- sion party to nearly 4,000 boys and (Continued on Page 3, Column 4.) Only | Shopping Day Until Christmas SATURDAY’S Circulation, SUNDAY'S Circulation, 119,303 130,715 Some Returns Not Yet Received. *%3 Er EED O JAPANESE SEIZED IN RUSSIAN AREA Maps Found in Possession of Soldiers, Officials Charge. By the Associated Press. KHABAROVSK, U. 8. §. R, De- cember 24.—A lieutenant of the Japa- nese Army and a Manchoukuan ser- geant were under arrest today by Soviet forces for investigation of pho- tographs they allegedly took in Rus- sian territory. ‘The men were arrested yesterday at Verkne Nikoskoye on the Ussuri River at the Manchoukuan border. Soviet officers said topographical maps were found in the possession of the officer. He was quoted as saying he entered Soviet territory to look for a lost Japanese boy. Japanese officials in Tokio said there was no likelihood of serious trouble over a reported Soviet invasion of the remote Tungning district of Manchou- kue., Both the war office and the forelgn office in Tokio lacked official details of the incident, in which Soviet troops were said to have encamped in Man- chuokuan territory. (A Moscow dispatch said Tass, the official Soviet ws agency, called “purest nonsense” a report from Har- bin that a group of Soviet soldiers had entered Manchoukuan territory, erected a fortress and been surrounded by Manchoukuan troops.) ANTI-ITALIAN MOVE IN SAAR IS DENIED Rumor of Attempj: to Wreck Train Bearing Soldiers Called False. By the Assoclated Press. SAARBRUECKEN, December 24.— Rumors that an attempt had been made to wreck a train bringing Italian troops here to form part of the international army to supervise the January 13 plebiscite were denied to- day by Italian officers and officials of the League of Nations Governing Commission. Another rumor said that the Ital- ians were dissatisfied with their lodg- ings and had threatened to leave the Saar unless better ones were provided, but members of the general staff called this “nonsense.” Cheers and tears greeted the first group of expatriates from North and South America, arriving here to vote in the plebiscite. Some 25,000 persons stood for three hours here yesterday awaiting the train bearing the 450 Nazi sympathizers, among whom were 200 Chicagoans. Families separated since shortly after the World War were united. Approximately 55,000 former resi- dents of the Saar, it is estimated, will vote in the plebiscite, by which the territory will decide whether to return to Germany, unite with France or re- main under the League of Nations. Nazis are providing transportation for all former residents who are legally qualified to vote. 75 Slain Hunters Left in Wake Of Deer Season, Nearing End By the Assoclated Press. NEW YORK, December 24—The crack of high-powered rifles along the Nation's deer trails has almost died away, and at this late stage of the warfare about 75 hunters have been killed. Also, an Associated Press survey today showed, a number of deer have been slain. The figures are tentative, and will be subject to an upward revision be- cause in some States the deer-shoot- ing seasons are not yet over. The survey took no account of small game hunting accidents. As always, shotguns traffic are prone to fire long before they see the whites of the supposed deer’s eyes. . The wearing of bright red caps by deer hunters is eompulsory in several States to enable nervous shooters to distinguish between deer and fellow ‘hunters. ‘The buck law, which prohibits the killing of female deer, has a dual purpose. A conservation step, it de- mands that the hunter see the antlers of the intended victim before pulling the trigger, thus removing does and humans from the list of legitimate prey. The survey of reporting States shows the following fatalities: Pennsylvania, about 12 killed; Ver- month, 5; New Hampshire, 2; Maine, 7; New York, 17; Minnesota, 8; Wis- consin, 6 (during an open season of ; Texas, 2; 3 () Means Associated Press. TWO CENTS. INTEREST RATE CUT FOR STATE BANKS DENIED BY ECCLES Federal Reserve Board Head Answers Glass by Dis- claiming Move. INSURANCE DEPOSIT UNIT IS HELD RESPONSIBLE Virginia Senator Charges Federal Bank “Usurped” Congress’ Power in Extending Jurisdiction. By the Associated Press. A denial of Senator Carter Glass's charge that the Federal Reserve Board “usurped” the power of Con- gress in connection with a recent cut in interest rates came today from Marriner S. Eccles, new chairman of the board and prominent New Dealer, “The Federal Reserve Board acted strictly in accordance with its legal rights,” he said. In a letter that also was acrid with criticism of some New Deal “brain trusters” whom he called “sub-pro- nd “supremely wise men,” Virginia’s Democratic Senator had said the board and the Federal De- posit Insurance Corp. had exceeded authority by including non-member State banks in an order cutting max- imum interest rates on the deposits from 3 to 21 per cent. Glass, writing to Charles 8. Ham- lin, member of the Reserve Board, said Leo T. Crowley, F. D. I. C. chair- man, had disclaimed responsibility for the interest slash. The Reserve Board, Glass declared, “thus may be held to account for a proceeding which may keep out of the system hundreds of desirable State banks which will not relish having an untried corporation assume unlawful authority over their business practices.” Cut Only U. S. Rates. Eccles emphasized that the Reserve Board cut only the rates on member bank deposits,” and took no action in regard to non-member State banks. The F. D. L. C. advised him, he added, that it had acted to cut the maximum interest in the latter institution, and the Federal Reserve Board merely called attention to the F. D. I. C.’s move in a press release announcing its cut. “If Mr. Crowley said the F. D. L. C. took mo action, which I cannot be- lieve, then no action was taken with reference to non-member State banks” Eccles said. “For regard to them.” To some observers Class's state- ment seemed to foreshadow a possi- ble fight in the next Senate on con- firmation of Eccles’ appointment. Ec- cles is widely known as a “liberal,” while Glass is regarded as an exponent of more “conservative” banking thought in the Senate. Denounces Adviser. His denunciation of certain academic advisers, couched in English peppered with Latin phrases, was aimed at a recent report by Dr. Jacob Viner, for- mer economic counselor to Secretary Morgenthau. The Viner report rec- ommended that the Reserve Banks get out of the fleld of direct loans to in- dustry, and that eligibility rules for rediscount of commercial paper be relaxed. Glass said, “Every little sub-pro- fessor brought to Washington, how- ever destitute of practical business acumen, is supposed to know more in a fortnight about banking and finan- cial problems than the President of the United States, the seasoned offi- cials of the reserve system and mem- bers of Congress who for many years have been keen observers of banking practices or intimately identified with financial measures.” He said, “The sooner Washington is rid of impatient academicians whose threatening manifestoes and decrees keep business and banks alike in sus- pense, if not in consternation, the sooner and more certain will we have a complete restoration of confidence and resumption of business in every line of endeavor.” Declaring the Federal Reserve Board had ample authority to cut interest rates in member banks, Eccles re- called that it took similar action over & year ago, cutting the maximum from 4 to 3 per cent. “It was felt the board had an obli gation or duty to adjust the maximum in line with the market,” he said. PRINCESS JULIANA ENGAGEMENT DENIED German Grand Duke Claims Re- ported Betrothal of His Son Is Untrue. By the Associated Press. SCHWERIN, Germany, December 24—The Grand Duke Friedrich Pranz, IV, of Mecklenburg, phatically denied today London re. ports his son, Grand Duke Priedrich Franz V, was engaged to Crown Prin- cess Juliana of the Netherlands. “There is not a word of truth in Berlin said the engagement would be announced in January, AMSTERDAM, December 24 (#)— Reports from London that Juliana is to marry the German Grand Duke Friedrich Franz met a stony silence in official quarters to- day. Juliana 24, has been the center of engagement rumors for the last seven years. Amusements Comics . Features ce