Evening Star Newspaper, January 25, 1935, Page 2

“BABY BOND" PLAN CALLED PERILOUS Public Confidence Held Key to New Scheme of Treasury. BY DAVID LAWRENCE. “Baby bonds,” the latest investment idea of the United States Treasury, aave brought out a number of inquiries as to where the process ultimately will lead and what will be the psychologi- cal effect of the distribution of billions of non-interest bearing bonds. ! The first question asked is: What | will the public think is the difference | between non-interest bearing bonds and non-interest bearing currency? If notes can be issued by the simple | promise to pay, why can’t the printing | presses be turned on to do the same thing? ‘The answer given by the defenders of the plan would naturally be that a non-interest bearing bond is not cur- rency because it is not acceptable for debts and is not legal tender. | official | What’s What Behind News In Capital New Dealers Fail as Censors of Own News. BY PAUL MALLON. HE trouble with all these vague charges about a New Deal | censorship is that no one can | prove anything. If something is suppressed, it does not get out; at least, not often. An exception to that rule may be offered by a confidential general memo addressed to all personnel in the Interior Department and Public Works Administration, dated Novem- | ber 27, 1934, and, until now, un- published. It tells its own story, as follows: “The Secretary of the Interior is seriously concerned over the frequency | of departmental ‘news leaks,’ and has ordered that every precaution be taken to prevent the issuance of information through un- authorized channels. To this end, Interest Deducted in Advance. The “baby bonds” will differ from ! other bonds of the interest-bearing kind in the fact that the interest will| be deducted in advance and paid when the bond comes due. Thus. if a 10-| year bond, for example, is issued for | the face amount of $100 it might be | sold to a purchaser today by the Gov- | ernment for $75. The remaining $25 would be paid when the bond matures 10 years hence, so anybody who paid out $75 now would get $100 a decade hence. What difference does it make whether the interest is paid currently | or on maturity? This query will be| answered in different ways. From an | economic viewpoint, the transactions | are the same because in each case the Government pays a fixed sum for the use of the money standpoint, it means an increase in public debt and. whether bonds do or do not bear interest, any consider able increase in public debt may in the long run cast doubt on a government’s capacity to pay. As yet little has been said about | a sinking fund to pay the principal and discount on these “baby bonds.” There was no provision in the last budget for it, though doubtless this will be arranged for in due time. Currency Question Raised. But will bonds be treated as currency and sold at further discount when they get in the hands of a large number of people? the educational drive of the Govern- ment happens to develop. It may be that department stores and retail shops will accept the bonds in pay- ment for goods. It may be, also, that it there isn't a good market for them, the $100 bonds, which were bought at 75, for instance, would be sold at 972 or 73. All this is bound to raise points | in the public mind as to why some bonds sell at par, namely at 100, or more, and other bonds sell at a con- siderable discount. Banks and in- vestment houses are used to the dis: count idea, but will the average person accept the innovation as readily? Clearly, an eduecational campaign will be necessary in order to sell “baby bonds,” and if something like the Liberty Bond campaigns of war time are organized, it will be necessary for the Government to teach the peo- ple that non-interest-bearing bonds are just as good as interest-bearifig securities. Greenback Peril Seen. Will this cause the people tq ask why the Government doesn't just print greenbacks and let it go at that? This question will not be so simple to answer, for even the famous green- backs of Civil War days, which caused the American dollar to depreciate, actually had & promise of retirement and a sinking fund set up to pay them off. | Some of the orthodox financial au- | thorities are not disturbed about the | “baby bonds” because they say that any bond issued by a government which doesn't balance its budget and | by & government which cannot predict when its budget will be balanced is Jjust as objectionable from an invest- ment standpoint as if the public debt is increased beyond capacity to pay, no matter whether the bond does or does not bear interest or whether it is or is not sold at a discount. Confidence Is Key. 8o long as the public thinks the Government by its taxing power will be able to provide ultimately for the retirement of public debt and for the payment of annual interest and sink- ing-fund charges, just so long will the securities of the American Govern- ment, or any other government, for that matter, stay up. around par. Every government in world history which started out on an inflationary course was always confident in ad- vance that it could repay its borrow- ings or could honor its fiat money. Some have succeeded and others have landed at zero. It will be an interesting test of public confidence to see what the peo- ple do about buying “baby bonds” and whether, when they do buy them, they will demand a better accounting of Government finances and a better un- derstanding of what the future spend- ing policies are to be and what sound measures, if any, are being taken to promote economic recovery. (Copyright. 1035.) . “BABY BOND” VOTE SLATED FOR TODAY House Leaders to Speed Action on Treasury Issuance Measure. By the Associated Press. Yielding to the Treasury's calls for speed, House leaders decided to bring to a vote today the bill to permit issuance of $9,000,000,000 in bonds, including “baby bonds.” Speaker Byrns told newsmen “I don’t believe there’ll be any opposi- tion to this measure.” The Ways and Means Committee, in reporting the bill to the House, re- marked that the Secrétary of the ‘Treasury felt it necessary “to finance the needs of the Government in the most economical manner possible.” At present the Government has authority to issue only $28,000,000,000. It has issued all but $2,500,000,000 of that. Although nearly $12,000,000,000 have been retired, replacements may not be issued. H ‘The new measure, instead of a gross | $28,000,000,000 maximum, calls for a $25,000,000,000 revolving limit. Saying the new bill “has no effect upon the total of the debt outstand- ing,” the committee asserted the change would “permit the Secretary of the Treasury to issue securities best suited, at the time, to meet condi- tions of the market and the needs of | from $30, the Government.” From a fiscal | the non-interest-bearing | This depends on what | you are requested to co-operate in the publicity procedure indicated herein. “The Department of Interior publicity division, headed by Mr. Michael Straus, is the central clearing point for all information regarding the plans and policies of the department and its sub- divisions. Mr. A—— is assigned to your division to act in a functional capacity as the representative of Mr. Strqus’ office, and is held re= sponsible by the Secretary and Mr. Straus for whatever is published regarding the service. A similar representative of the publicity division has been assigned to each major bureau in the department. “No information is to be given out regarding the service unless it clears first through Mr. A—. * * * “All inquiries from newspaper men, magazine writers, etc., should be re- | ferred to Mr. A——, so that the in- conflict with the wishes of the Secre- tary or of the director.” The memo is not signed by Mr. Ickes, but by a bureau director, whose name may just as well be omitted. Congress Included. There is a second memo which will | be even more interesting to the pro- | scenic boulevard between Washington formation given them will not be in| . . WORKS PLAN 1S BEING DRAFTED Scenic Boulevard to Balti- more to Be Considered at Conference. A comprehensive program of public works for the District and vicinity that might be judiciously undertaken under the $4,800,000,000 measure that has just passed the House was being studied today by the National Capital Park and Planning Commission. i A special committee was named to | confer with other interested agencies to work out a co-ordinated program. This group includes Col. Daniel I. Sultan, Engineer Commissioner of the ! District, who is an ex officio member of the commission; Frederic A. Del- ano, commission chairman, and its vice chairman and executive officer, Arno B. Cammerer, director of the National Park Service. The commission desires to have a well-rounded program prepared, so this can be presented to the official who will disburse the new relief moneys. Projects Not Revealed. Thomas S. Settle, secretary of the commission, declined to reveal any of the projects that the organization is considering. Neither would be esti- mate the cost of the program on which the commission is working. Interested for a long time in a and Baltimore, the commission today decided to ask Secretary Ickes, present public works administrator, to call a meeting of various interested groups with a view to pushing the project to completion at an early date, possibly with P, W. A. funds. The route of this new highway, as worked out by ‘the commission, would be through the Agriculture Depart- ment’s new development at Beltsville Md., and Fort Meade. A large section of the land already is held either by the United States or the State of Maryland. In its request to Ickes, the commis- sion will urge that the Maryland Planning Board also act as sponsor for a meeting which would be attended by representatives of the commission, | the Maryland National Capital Park and Planning Commissicn, the Mary- | land Forestry Department, the War | Department, the Bureau of Public | Roads, the Agriculture Department and other groups having a first-hand interest in the scenic highway. Dyke Plan Studied. The commission also arranged to look at two main areas projected for a dyke as part of the flood control measures to preserve public buildings here. Engineers of the National Park Service have staked out these areas so the commissioners may more | posed Dies Congressional Investigating | Committee. It is dated December 5, 1934, and indicates that restrictions against the press also have been ap- plied to members of Congress. its own story also. as follows: | “Calls are occasionally received from various sources inquiring regarding positions, certifications, personnel mat- | reference to the Congress. Well-mean- |ing applicants for positions request members of Congress to call the indi- | viduals in this bureau who have inter- viewed them after certification. When calls of this kind are received they should be referred to my office and no information of any kind whatso- ever, for any reason, should be given. personnel matters other than by Mr. Burlew’s office. Congress, “(Signed) “WILLIAM A. F. STEPHENSON, “Chief of Operations.” Ineffective Censorship. These two memos explain the cen- sorship business fully. the Interior Department has been un- able to keep secret even these private departmental matters is proof enough | that such steps are generally inef- fective. Furthermore, the Interior De- partment will argue these moves do mot seek to effect a censorship, but only to channelize sources of information so that incorrect in- formation will not get out. You may recall this was the explana- tion for a somewhat similar order issued by Treasury Secretary Mor- genthau soon after he took office. Mr. Morgenthau later modified the order. N. R. A. Smoke Trouhles. The N. R. A. Board has been smok- ing up a lot of things in the dark while considering the cigareite code. It divided, 2 to 2, more than two weeks | ago on the question of accepting a code proposed by the industry. More recently, another secret vote was taken and the line-up was still 2 to 2. Thus hopelessly divided, the board decided to submit the dispute to the White House. yet the code strangely failed to reach the President’s desk. Much undercover pressure is be- ing exerted on one member who has been voting against the indus- try code. He may change his vote. Apparently that is why the code Jailéd to go to the White House more promptly. . One or more Senators have heard about the dispute and are just about ready to demand that the board agree or send the matter to the Executive A little-noticed decision of great iri- portance was issued by the Supreme Court last Monday. It holds against the common practice of disguising purchases of corporations by calling the purchase a reorganization, and thus avoiding taxes. The case (Greg- ory vs. Helvering) is expected to add millions in Government revenue. One utility company has a profit of $9,- 000,000 on which it avoided taxes in this way. Utilities Laws. ‘The proposed holding company leg- islation will include only utilities. The wire corporations are already under the Communications Commission, the railroads under the I. C. C, all others under the 8. E. C. Another prize order issued in the Public Works ' ‘Administration, now spending $3,000,000,000 for recovery, admonishes- employes about careless- ness in wasting pencils. It is going to be easier for Army deserters next year. The appropria- tion for chasing them is being cut ,000° to $20,000. " " (Cop¥iizht. 1035.% It tells | ters, etc. This is especially true with | My office will carefully explain that | no information can be given regarding | “Matters relating to personnel must | not under any circustances, for any ! reason, be discussed with members of | The fact that | 1 of the others—159 to 131. | compared to the total number of un- readily visualize where the dykes would go. One would be at the rear of the Navy and Munitions Buildings, while the other would be constructed in the line of Independence avenue | extended through Potomac Park. |~ The projected stadium at the end| | of East Capitol street on the banks of the Anacostia River—a develop-| ment which would include a new | home for the District National Guard —also was to be considered today | Plans for the proposed Federal Re- | serve Board Building at Twenty-first | street and Constitution avenue were | | | | | | discussed this morning with Mr. Del- | | ano by Adolph C. Miller, who is tak- ing a leading part in the plans as a member of the board. The commis- 1 sion approved a design by William Delano, New York architect, member of the commission, for creation of a ! believe suspension plaza at Twelfth street between Penn- The old Post Office Building is hin- | dering full development of the pian. WORKS-AID FIGHT TURNS TO SENATE: HOUSE PASSES BILL (Continued From Pirst Page.) of Representative Connery, Democrat, of Massachusetts to require the Gov- ernment to pay “prevailing wages” on works projects was closer than some The only amendment finally adopt- ed by the House was that by Repre- sentative Bulwinkle, Democrat, of North Carolina, which requires more detailed reports of expenditures of and obligations incurred by the ad- ministration under the act. The defeated Snell motion to re- commit the bill would have provided: No part of the appropriations could be expended for any project which would place the Government in com- petition with private business. That the funds should be appor- tioned among the States in propor- tion to the number of unemployed as employed in the United States. That preference be given projects nearest the largest number of unem- ployed. That no person desiring work on relief projects be subject to any po- litical test or qualification. That relief be administered as far als possible by State and local agen- cles. That all unobligated balances of funds be returned to the Treasury on June 30, 1936. During the earlier Democratic revolt, the insurgents had won a promise from the administration that Secretary Ickes would not administer the fund. Opponents of Bill. The 78 Representatives who voted | against final passage of the bill were: Democrats (10): Castellow, Cox, Darden, Gray of Indiana, Griswold, Peterson of Georgia, | Ramspeck, Robertson of Virginia. | Smith of Virginia and Tarver. Republicans (68): Allen, Andresen, Andrews of New York, Arends, Bacon, Blackney, Bolton of Ohio, Cavicchia, Christianson, Church, Cole of New York, Cooper, Crawford, Crowther, Culkin, Darrow, Dirksen, Ditter, Dondero, Doutrich, Eaton, Engel, Englebright, Fenerty, Focht, Gifford, Goodwin, Gwynne, Hancock of New York, Hartley, Hess, Hoffman, Hollister, Jenkins, Kimball, Kinzer, Knutson, Lehlbach, Lord, Mc- Lean, Maas, Marshall, Martin of New York, Perkins, Pittenger, Plumley, Ransley, Reed of Illinois, Reed of New York, Rich, Robsion of Kentucky, Rogers of Massachusetts, Short, Snell, Stewart, Taber, Thomas, Thurston, | Treadway, Turpin, Wadsworth, Wig- glesworth, Wilson of Pennsylvania, Wolcott, Wolfenden and Woodruff. _ EVASION TO BE FOUGHT The Securities and Exchange Com- | mission yesterday acted to prevent evasion of the securities act by stock issuers who attempt to resort to “pri- vate financing” to avoid registration with the commission. John J. Burns, commission counsel, gave an extensive opinion on the ques- tion, limiting issues which may be classified as non-public offerings. , Massachusetts, Michener, Millard of | I A—2 = THE EVENING STAR, WASHINGTON, D. C, FRIDAY, JANUARY 25, 1935. Ww ‘This Was a Highway This was a paved highway at Bellingham, Wash., until floods yesterday Copyright, A. Until Flood Hit It P. Wirephoto. center foreground & workman stands on a block of concrete at bottom of 86-foot gap into which the road dropped. sent a mountain torrent ripping through the scenic Chuckanut Drive. ot SENATE PAY CUT VOTE SEEN SOON Decision on McCarran Pro- posal for Restoration Early Next Week. The Senate will reach a decision early next week on the McCarran proposal to restore the remaining 5 per cent of the Government pay cut as of January 1. A test of strength on the quest virtually was assured when Se: McCarran, Democrat, of Nevada, filed notice in writing in the Senate late yesterday that he would movz to suspend the rules, if necessary, to offer his pay amendment when the pending deficiency measure is taken up. Precautionary Step, Senator McCarran said he does not of the rules is necessary, but he filed the advance notice as a precautionary stcp so that he will be in a position to take that step if a point of order is raised against his amendment. A two- thirds vote is required to suspend the rules. The pay question will come before the Senate without action for or against by the Appropriations Com- mittee. The Appropriations Commit- tee took final action yesterday after- noon on the deficiency resolution to which McCatran is hopeful of attach- ing the pay restoration amendment. The Nevada Senator decided, how- ever, to wait until the resolution sylvania and Constitution avenues. | reaches the Senate floor before pre- senting the pay restoration motion. It was generally understood that the committee, under its rules, would have been required to hold the amend- ment not in order. Senator McCarran believes parliamentary situation will be more favorable when the amendment is offered from the floor, and is optimis- tic over the chances of having it con- sidered without resorting to suspen- sion of the rules. If it is passed on without suspending the rules only a majority vote will be necessary, Again Before House. If the Senate places the pay restoration amendment in this de- ficlency resolution the question again will be put before the House. The resolution, which carries operating ex- penses needed immediately by the Communications Commission, the Se- curities Commission and several other agencies, has passed the House, but would go back to that body for ac- tion on Senate amendments. The Senate Appropriations Com- mittee yesterday added to the resolu- tion an item of $4,000 needed by the special commission considering the boundary dispute between the Dis- trict of Columbia and Virginia. NEWSPRINT CHANGE VISIONED IN SOUTH Publishers Plan to Utilize Experi- | ments in Use of Slash Pine Pulp. By the Associated Press. CHAPEL HILL, N. C,, January 25.— A revolution in Southern industry was predicted here yesterday by James G. Stahlman, publisher of the Nashville (Tenn.) Banner, as the result of suc- cessful experiments in the manufac- ture of newsprint from Southern slash ine. o ‘The Tennessee publisher was one of the speakers at the eleventh annual North Carolina Newspaper Institute. He said capital was now being raised for construction of a Southern paper manufacturing plant to make practical application of the results of experiments by Dr. Charles Herty of Brunswick, Ga. William D. Nugent of Media Records, Inc., New York, ascribed the prosper- | ity of America “in large measure to | newspaper advertising.” He said a survey by his firm showed that even during the lowest business ebb of recent years business firms which increased their advertising ap- propriations increased their business in equal proportion, while a great many firms which did not do likewise failed. DIVORCE SOUGHT Special Dispatch to The Star. ROCKVILLE, Md., January 25.— Mrs. Eleanor D. Dulin of Chevy Chase yesterday instituted suit in the Circuit Court here for a limited divorce from E. Milton Dulin, jr, of Washington, . charging she was deserted October 27, 1934, She also asks to be awarded the custody of the couple’s only child, Elizabeth Dawn Dulin, 3, and to be allowed maintenance and support for the child and counsel fees. The couple was married January -31, 1927. A the 25 Dead and 18,000 Marooned As Famine Sweeps Flood AreaU' S RULED UWNER By the Associated Press. MARKS, Miss, January 25.—With | at least 25 persons reported dead and approximately 18,000 others marooned, icy floodwaters raced madly with famine and disease through the rich delta lowlands in Northwest Missis- sippt today. Marks felt the brunt of the flood | seige as the overflow waters from the rain-swollen Coldwater River rose steadily in the town, which has a population of 1.200. Volunteers and a hundred convicts gave up a three-day battle to save the levees last night after the water plunged through As the water retreated from Tunica and Tate Counties it struck Sledge and Darling in Quitman County and then rushed headlong upon Marks threatening further destruction in the rich Tezllahatchie Basin below. The overflow section varies in width from 5 to 15 miles. , The damage has already been esti- mated at more than $1,500,000, while railroads expect a loss of more than $1,000.000 through washed-out tracks and damaged bridges in Mississippi and Lower Tennessee. Fear was expressed by Mayor C. P. Smith of Marks for some 5,000 in- habitants in the path of the overflow WORK RELIEF CASH - ASKED FOR ROADS |Grade Crossings Also Bid } for Share of Funds. | Gas Tax Wanted. President Roosevelt was requested to allocate “a substantial part” of the new $4,800,000,000 works relief fund for the construction of highways and elimination of grade crossings in one | of 12 resolutions adopted today at the closing session of the thirty-second | annual convention of the American Road Builders’ Association in the Wil- lard Hotel. | The association pointed out in its | resolution that experience has demon- ‘strawd highway construction is one | of the best means of providing labor | | for thousands of men over a Nation- | wide front and that the results are | of the utmost benefit to the people of the country as a whole. In another resolution the associa- tion called for direct application of all automobile registration and gaso- line tax funds to highway construction and maintenance. It was recommended that expendi- ture of all highway funds under the emergency construction act “be car- ried on in accordance with the well- recognized and prevailing system of award to private contractors.” The association took sharp issue buyers, and demanded that govern- mental purchasing agents be made sub- spect to quoted prices as private buyers. The association will adjourn after a brief final meeting of the board of directors this afternoon. SHEPARD LEAVES FOR SECOND TRIAL Third Wife Accompanies Former Army Officer Facing Poison- ing Charges. By the Assoclated Press. DENVER, January 25.—Maj. Charles clear himself of the charge that he murdered his second wife by poison, left here yesterday for Topeka, Kans., where his trial will open Monday. Maj. Shepard was accompanied by | his third wife, Mrs. Alice Watt Shep- ard, and her daughter by a former marriage, Mrs. Burr Cooper. ‘The major, since retired from the Army, was convicted five years ago of killing his wife, Zenana, 37, by admin- istration of poisop at Fort Riley, Kans. The Supreme Court of the United States, however, granted Shepard a new trial on the ground that hearsay evidence was admitted against him under guise of a dying statement. Again opposing Maj. Shepard when his second trial starts before United States District Judge Colin Neblett of New Mexico will be Miss Grace Brandon, San Antonio stenographer, for love of whom, the Government contends, Shepard poisoned his wife, o Rayon Output Rises. Ttaly’s rayon production last year was over -40 per cent greater than that of 1933. L] with the granting of code provision | exceptions in favor of governmental | ject to the same conditions with re- | A. Shepard, facing a second fight to | ! in the Quitman-Panola Basin south | of here. Many in that section have | come here or gone to Crowder. | Schools, churches, the railroad sta- | tion and box cars were pressed into service to house the refugees. There was intense suffering in Tate, Tunica, Panola and Quitman Counties | as shivering refugees trekked into the little “cotton country” towns by the hundreds and sought any available sort of shelter. Water throughout a wide section | rose to the tops of houses and trees, clutching icily at retreating refugees. Rescue boats had to send convoys ahead to break channels through the | surface-frozen waters. Relief camps were established at all high points. Dozens of persons were rought in with their hands and feet frozen. Others were unconscious. Women gave birth to babies on house- tops. Other persons, still perched in trees and on houses, developed pneumonia and influenza, and relief workers feared an epidemic. Food became scarce, as stores were almost depleted The Red Cross and other relief agencies rushed in supplies, and soup | kitchens were set up—but still many Oye L Commissioners Order Handlers to Pay $10 Annual Fee. opyright. 1 DAL DEALERS BE LIGENGED [ AII‘ | The coal business of the District is to be placed under a new form of regu- lation by an order of the District Com- missioners today requiring all dealers in coal to be licensed. This step was taken under authority of the general District license act of 1932, giving the Commissioners power to require licenses for all forms of busi- ness. Each of the 200-odd coal merchants of the District will be required shortly to apply for a license. The charge an- nually will be $10. | The new system will mean that when the Commissioners find that a dealer has been persistently giving short measure to customers they will have the power to move for revocation of the licenses or to deny the issuance of a license when renewal time ar- rives. This will place a new weapon in the hands of George M. Roberts, superintendent of weights, measures and markets, in enforcement of the | standards of proper measure. The license plan was recommended | to the Commissioners by Roberts and | bore the indorsement of Corporation | Counsel Prettyman. It also had the | indorsement of James E. Colliflower, president of the Merchants and Manu- facturers’ Association, and one of the | city's coal merchants. The license fee of $10 was fixed as | | being the cost to the District of the | necessary inspection, supervision and regulation of the coal business, 4 BARGES AND TUG MISSING IN STORM Coast Guard Cutters Are Search- ing Ocean for Vessels. By the Associated Press. NORFOLK, Va., January 25—Four barges and a tug are missing as a Te- | | sult of the storm at sea, Norfolk di-| vision headquarters of the Coast| Guard announced today. Two of the| barges are given up for lost. They are the Pattie Morrissett and the steel | barge No. 2 of the Eastern Transpor- tation Co. The tug W. J. Hooper with two other barges, it is feared, is also lost. It is possible, Coast Guard officials said, that the tug and the two barges succeeded in getting back inside Dela- ware breakwater, but little hope was expressed that they survived the storm. The cutters Sebago and Mendota | are now conducting a search for the tug and two barges. The tug and the two other barges in tow with the Pattie Morrisset have not been sighted nor heard of since then. Steel barge No. 2 is missing and fear is expressed that it is lost with Capt. Lee Reed and his two hands. Minister to Head College. MILWAUKEE, Wis,, January 25 (). —The Rev. Norman Menter, pastor of the Salem Lutheran Church at De- troit, Mich. yesterday was named president of Wartburg College at Wav- erly, Iowa. He will take office July 1. OF ELK HILLS QI Ickes Reverses Given During Hoover Administration. Secretary of the Interior Ickes de- cided yesterday the United States Government owned one of the most valuable tracts of oil land in the country, a 640-acre plot on the crest of Elk Hills in California, on which private companies have operated for more than a decade. In doing so Ickes reversed a decision given February 23, 1933 (by C. C Moore, commissioner of the General | Land Office under Secretary Wilbur during the Hoover administration Moore had decided that the section of land in question belonged to the State of California and its transferees. Moore’s ruling coincided with a deci- sion given in 1921 by former Secre- tary Albert B. Fall. Supply Worth $25,000,000. ‘The Ickes ruling served to assert the Government's claim of approxi- mately $25,000,000 worth of oil known to remain in the pool and opened the way for action to recover from private cperators the value cf about 5,550,000 barrels of oil and 57,000.000,000 cubic feet of natural gas which already has been recovered and sold. Disposition of this tract figured in the investigations which enmesh Fall in the Teapot Dome and Elk Hill: naval oil reserve lease scandal. The decision was given in a suit brought before Ickes by the United States against California, the Stand- ard Oil Co. of California, Mrs. Sydney H. Greeley, Frank J. Carman, Charles O. Fairbank, Edward L. Doheny, Thomas A. O'Donnell, the Pan-Ameri- can Petroleum Co., the Valley Natural Gas Co. and the Associated Oil Co. Senate Granted Power. Power to hear the case was con- ferred on the Secretary by a Senate resolution sponsored by the late Sen- ator Walsh of Montana and passed in 1924, Ickes announced his decision at his regular press conference after locking the doors of his office and cautioning reporters to remain until the confer- ence was completed. Department offi- cials regarded it as the most important ruling made during Ickes' administra- tion. Ickes said he had asked for Moore's resignation shortly after becoming Secretary and commented, “I thought I wouldn't take any chances.” Claimants to the tract, Ickes said, would be expected to account for oil and gas teken out anid sold. It was roughly estimated that the amount involved in this claim by the Govern- ment would be around $5,750.000. “Y. W.” LUNCH PLANNED Signorina Rossi of Rome to Speak Tomorrow at 12:30 P.M. Signorina Rossi of Rome, former Y. W. C. A. secretary of Italy and a member of the World's Council Staff in Geneva, will speak before the world fellowship luncbeon at 12:30 p.m. to- morrow in the Y. W. C. A. Mrs. Wil- liam S. Culbertson, wife of the former Ambassador to Chile, will preside. All persons interested in Y. W. C. A work and members of the association are invited. Congress in Brief By the Associated Press. TODAY. Senate. Continues World Court debate. Considers bill extending life of R.F.C. Secretary Perkins before Finance Committee on social security legisla- tion. Munitions Committee again exam- | ines C. L. Bardo. House. Takes up Treasury proposal to ex- tend bond issue limit by $9,000.000,000. Bernard M. Baruch, Hugh S. John- | son and Secretary Dern scheduled to testify before Military Committee on war profits. Ways and Means Committee con- siders e¢onomic security legislation, YESTERDAY. Senate. Adopted Vandenberg World Court reservation after limiting debate. C. L. Bardo refused Munitions Com- mittee’s demand that he waive im-| munity in testifying on ship contracts. Finance Committee heard Secretary Perkins on social security bill. House. Passed $4,880,000,000 public works- relief measure. Ways and Means Committee con- sidered social security legislation. Banking Committee heard Jesse Jones, R. F. C. chairman, on bill for extension of R. F. C. Military Committee discussed stop- ping profits during war. Decision | * WAR PROFITS BILL HELD PROTECTION Immunity From Attack Seen by Baruch as Result | of Legislation. By the Associated Press. v Bernard M. Baruck told the House Military Committee today that pende ing legislation to eliminate war profits would make the Nation “immune against attack” and “vastly increase’ America’s financial strength for war, Meanwhile, the Senate Munitions Committee questioned Clinton L. | Bardo, former president of the New | York Shipbuilding Co., about the sale of ships to the Government Economies Cause Conflict. Baruch, who headed the World War Industries Board, declared economic pressure is a likely cause of conflict and added: “Never has the world been so eme battled in that respect. Tariff quotas, |trade barriers, exchange regulatio all are really economic armaments. “In that particular the world is more heavily armed than ever in its { histor The McSwain bill under con |ation would provide for a universal |draft of human, material and indus- trial resources in war time and for freezing of prices paid by the Governe ment and by private citizens for r cessities Baruch pointed out the measure | needed certain refinements which he did not itemize, then added: “It would so greatly increase our strength for war that other nations would be obliged to follow suit as a | defense measure.” Baruch on Committee. ! Baruch, along with Hugh S. Johne ison, former N. R. A, chieftain, and | Gen. Douglas Mac2 Army chief of staff, are on a committee named | by President Roosevelt to work out {a formula to remove profiteering from He framed his indorsement of the McSwain bill thus “I look upon the actior plated in this bill as being sufficient to place this country in a position ime mune against attack. While it ree moves the war-profit motive, it has other great advantages. By keeping prices down to peace > levels and eliminating doubling and trebling | rices ncreases the gth for war, ns fole | years after enguifed.” The bill wo war in the sense { move absolutely be a prev t it all hope o inquiry Senate, | by the X al arms= ,ho noted the effect of te akers in stirring up wa aruch advocated putt on prices to prev forcing up the cc 14 FLEE INTO COLD 1 " 0 ESCAPE BLAZE One Family Forced to Leave Without Children’s Outer I Wraps. Fourteen persons were forced out into the cold early last night when fire started in the basement at 2512 Seventeenth street and spread so rape idly to the first floor that one family had to leave without their children’s outer wraps Mr. and Mrs. Robert Pearson, who occupied the loor wtih their four children, were preparing to eat dine ner when smoke started up from the furnace room. As the blaze spread up through partitions in the wall, six had to hurry from the build Mr. and Mrs. Edwin A. Berger and two children. Richard, 12, and Mary Louise, 8, who occupied the secon floor, had to leave the building hure riedly. Mrs. Nellie Cryor, wife of Joe Cryor, taxi operator, also was forced from the building and police broadcast a lookout for the husband to notify him |of the fire and that his wife was | safe with friends. Meanwhile, Richard Berger, whose father is a lawyer in the Claims Die | vision of the General Accounting Ofe fice, had telephoned for firemen. The | firemen were hampered temporarily in | fighting the blaze by the bitter cold, making it difficult to handle the hose. Next door, at 2514 Seventeenth street, little Richard Gleason, 14 months old, and his brother, Edward, 6 years old, and their grandmother were forced out by smoke. The fire burning up through the walls of the building at 2512 destroyed the clothing in closets belonging to the Pearson family. All occupants of the building spent the night at the homes of friends. e DAMAGE TO OYSTERS BELIEVED EXTENSIVE Cold Spell—Havoc Reported Similar to That of 1915. By the Associated Press. SEATTLE, January 25.—Belief that recent cold weather had caused wide- spread destruction of oysters along the Northern Pacific Coast was ex- ! pressed yesterday by Prof. Trevor Kincaid, University of Washington biologist and oyster experimenter. Kincaid said the losses probably had been heavier among the small native Olympia oysters than among the large Pacific (Japanese) oysters whose original habitat was in the icy waters lapping northern islands of the Japanese Archipelago. Recent tidewater tenfperatures of around 10 degrees above zero, coupled with the fact that ebb tides expose most of the beds to the wintry air, caused the cestruction, Kincaid added. “I 1emember similar circumstances back in the big frecze of 1915, he said. “The commercial loss was terrific.” Northern Pacific Coast P Card Party Announced. SEAT PLEASANT, Md., January 25 (Special).—A card party will be given tonight at the home of Herman H. Rudolph, 18 Chapel road here, under auspices of Strawn-Turner Post, No. 1627, Veterans of Forelgn Wars. ]