Evening Star Newspaper, March 10, 1935, Page 13

DISTILLERS' CODE CHANGES LIKELY : Choate to Ask Revisions to Start Plants in Newly Wet States. By the Associated Press . X Important changes in the distillers’ code will be proposed by Joseph H. Choate, jr.. director of the Federal | hol Control Administration, at a | e | he lives in a fairy book world. * hearing here March 22. Thegamendmcnw are intended to permit operation of distilleries in . States which recently have approved the repeal amendment, including West Virginia, Wyoming, Maine, South Da- kota and Arkansas. Many protests have been heard by . the F. A. C. A. from corn and wheat : belts, because States which recently . ts did not have distil- | iy l%f;a'l 1:.191: gdA said almost all | freshman in college, or the cub re-| House. * leries. . the industry now is located east of * the Mississippi River. ' The changes would permit Choate to issue permits to all qualified appli- cants. They also would permit expansion of the distilling industry into present dry States as they make liquor legal. These are Alabama, Georgia, Kansas, Mississippi, North Carolina, North Dakota, New Hampshire, Oklahoma, Tennessee and Texas. Leg- {slatures in several of these States now are acting on liquor measures. The distilling industry now is cen- tralized in Illinois, Kentucky, Penn- sylvania and Maryland, with some “ activity in Indiana. Today 486 F. A. C. A. permits had been issued. although 55 of these per- * mit holders had no plants and 69 were to warehouses. THE SUNDAY STAR. WASHI) Taming Congress Plebes *Big Shots” at Home Prove “Popguns” on Capitol Hill When They Try to Break Into Limelight. Discretion Has Reward. BY JAMES E. CHIL !Spenker, is s:ldhtomh‘:vemm an el; " y ' fective way to ha e new an m;rngbetrheor fgl:;xxl::ku h.o n‘l';'igashr;:?‘" 'SO-C'!lled “‘bumptious upstarts.” “Uncle He is an outstanding figure. He is|Joe” particularly disliked a “baby’ invited to all elite social affairs, He member who attempted to steal the is called upon to speak at all im- |limelight. And the new member who portant civic and political functions.|did was almost certain to head in The bands play wherever he goes. The U;:‘_ :g?;me direction—into political ool children sing his praises and Ol g sr:(l:u?z}rsmml their gsons Fo try and| Such a victim of “Uncle Joe's™ follow in his footsteps. In other words,| Wrath was almost certain to find him- self assigned to some unimportant * kK X committee, or else to a committee But in Washington, it's a different | that never had a reason to meet. story. His social standing gives way L ] to the Senator, the cabinet officer and| There’s another angle, however, to the diplomat. He's just another Con- | this business of being a r'nember of gressman. He's what the late Senator Congress—the new member’s own. im- Caraway of Arkansas described as a pression and his problems. It's just “popgun.” | as hard for a newcomer to determine In the House itself. the new mem- what his constituents want as it is ber ranks in the same class with the | to get properly acclimated in the porter on a newspaper. He isn't| One day a new member’s face car- hazed exactly in the traditional eol-‘ ries an infectious smile because his lege style, but he is supposed, accord- | constituents have praised him. The ing to best House etiquette, to sit, next day there's a frown because he listen and learn. has done something wrong. A bouquet * k% *x one day becomes a brickbat the next. he's been mixing around trying to learn; trying to do a good job. Frank- ly, however, he admits ‘he’s still in a daze. Quinn just doesn't understand the strange quirks in the human mind. He hadn't been in Congress long when a constituent wrote and urged him to have his son appointed to the Naval Academy. “That would have been all right,” | he said, “except the boy had never seen a river. The ocean to him was just a blue spot on the map. What kind of a sailor do you think he would make?” Even worse, Quinn said, was a re- quest from a Pennsylvania Quaker, whose scruples against war were well known, for an appointment for his son | at West Point. The next thing that shook Quinn's equilibrium was a request from a man in Western Pennsvlvania for infor- mation of the culture of English wal- nuts. “I've lived in Pennsylvania for years,” he said, “and I know that English walnuts cannot be raised in the western part of the State because of climatic conditions.” * X % % Then there’s the case of a woman who wrote for information on the care of infants, and at the same time suggested that Quinn devote his time n{:d energy to birth-control legisla- tion. And a man in his district, who had failed to pay his gas and electric bills for many months, demanded that Quinn use his influence to have Con- gress provide a heavier tax on utility corporations. But the blow that Quinn will never GTON, D. C. MARCH 10, 1935—PART ONE. INSULL DRAMATIC | DENYING CHARGES Answers Embezzlement Ac- cusation With Statement He Acted Honorably. By the Associated Press. CHICAGO, March 9—Samuel In- | sull, star witness in his own trial on | charges of embezzling $66,000, capped two and a half hours of dramatic tes- | timony today with a ringing denial of | guilt. The fallen utilities emperor told | his whole story—his rise from poverty to power and his decline to asserted penury. He admitted that as chair- man of the Middle West Utilities Co. he had approved withdrawal of the money from the concern's treasury to bolster the stock market account of his brother, Martin. Conscience Is Clear. i “Did you have any consciousness of | guilt?” inquired Defense Counsel Floyd Thompson. The white-haired defendant made this vigorous reply: “None whatever, and I have none today.” wreck the refinancing plans for the | companies.” The witness related how he had PAINTINGS BY GATES | oo and w5000 s mocercy| SHOWN AT LIBRARY were rushed to the brokers. | Would Repeat Act. Collection of Water Colors Is Put “I did it for the benefit of the stock- R holders,” he declared. “I would do it| on Exhibit—Branches Also again under the same circumstances.” 4 Of his own empire’s collapse, the Have Displays. witness said: “It left me penniless,” he told the jury. “I disposed of my insurance. My wife signed over her dower rights. ‘That left her practically penniless, Prosecutors will subject Insull to cross-examination Monday. Both sides expected the case to go to the jury Monday night. PLACED ON PROBATION Howard K. Baker Admitted Ring- studies. ing False Alarm. During the month the Northeastern Howard K. Baker, 30, 1700 block | Branch Library will continue to show Twentleth street, who admitted two | paintings by Rowland Lyon, local| weeks ago he had turned in a false| artist, whose work is described as of fire alarm at Connecticut avenue and | “exceptional distinction.” Garnet | S street while returning home from | Jex, illustrator and painter of land-| a party, was given a suspended sen- | scapes, is showing his work at the| tence and placed on probation for a|Southeastern Branch. | year by Judge Isaac R. Hitt in Police| Pastels by Gene Hawley and litho- Court yesterday. | graphs of Theodore White are on ex- At the time of his arraignment, | hibition at the Eastern High School A collection of water colors by Rob- ert Gates has been placed, on exhibit at the central building of the Public| Library, Eighth and K streets, for the remainder of the month, it is an- nounced by Dr. George F. Bowerman, librarian. Dr. Bowerman also an- nounced several other art exhibits at| library branches. | The Gates exhibit includes land-| scapes of Virginia, the Carolinas and | Connecticut, along with some animal Baker was told by Judge Hitt to re- branch. Beginning .March 18, turn “with plenty of money.” " the mechanical drawing so- A—13 clety of Central High School, will ex- hibit the work of its members at the | Mount Pleasant Branch Library, TWO D. C. STUDENTS WIN BEAUX ARTS MENTION William M. O'Neil and Raleigh T. Daniel Honored for Work on Problem Set. Two Washingtonians were among the five students of the Ctholic Uni- versity Department of Architecture to win mention by the Beaux Arts Insti- tute of Design of New York for their work on an architectural problem set by the institute in a Nation-wide con- | test. They are William M. O'Neil, son of Mr. and Mrs. John O'Neil, 214 Bighth street southwest, and Raleigh T. Dan- iel, son of Mr. and Mrs. Thomas C. Daniel, 3229 Idaho avenue. John E. Dundin, Hartford, Conn., & senior at the university, and John J. Brady, a post-graduate student, re- ceived first mention. Another senior, Sebastian Passanesi, Middletown, Conn., also was recognized. The problem set for architectural schools throughout the country was an “open air museum” for a river park in a large city. The new member who jumps to the floor at every opportunity during his| first term is regarded by the veterans as bumptious. He is talked about in the cloak rooms, the committee| rooms and the corridors. His politi- cal enemies characterize him as a “headline hunter.” Indeed, there's a story about a cer-| who, a few days after his introduc- tion in the House, vainly sought to make his maiden speech. Finally, he was allowed 15 minutes. Every min- ute of the time was devoted to eulogy | Brandy permits to- | of himself—what a great man he was, | taled 163: 8 were for brandy and other | what he had done for his country, + tvpes; 190, whisky, rum and gin, with | and why he was elected to Congress. . about 60 of these exclusive whisky As a result, some of the members | : plants. * CHEST HEAD PRAISES © K. OF C. AID IN WORK The Knights . given high praise as a fas e f Community Chests | e i es: TG Y r | was the minority leader, rising rap- throughout the country in a lette just received by former Judge Michael M. Doyle. chairman of the Knights of | Catholic | . Columbus Moblization for Action in the Washington-Maryland * arca, from Frederick R. Kellogg, na- '+ tional president of the Community . Chests and Councils, Inc. Community Chests and Councils is * the national association of chests and . other groups conducting annual fed- + erated campaigns for community wel- . fare and relief work and formerly was headed by Newton D. Baker. % “The Knights of Columbus has . been one of the groups to which a great many chests have turned for T general support,” Kellogg said. “The « membership of the Knights of Colum- | bus has made a real contribution to - the growing success of the Com- . munity Chest movement.” Consider the COS EFORE you ask how much glasses cost, think how much it may cost to do without them. the lumbus were | Tennessee in the House from th o ycnm;m the | Fifty-ninth to the Seventieth Con-‘ who know him, said if he was drown- ing, he would ask for a headline! instead of a lifeline. L R New members who are wise have| taken a page from the experience 01[ Finis J. Garrett, who represented | inclusive. For three sessions he | idly in congressional ranks Yeaquse he was regarded as an astute and smart politician. Garrett gained that reputation be- cause he sat through-one entire ses- sion without making a speech. He was “seen and not heard.” He just sat in his chair, listened to the de- bate—oftentimes monotonous and irk- some—but said nothing. One day Speaker Champ Clark called a group of his lieuténants aside and said: “That fellow Garrett has got some- thing.” It wasn't long before Garrett be-| gan to receive important committee assignments, which ultimately led him to the minority leadership. R | “Uncle Joe” Cannon, when he was| AILING eyesight has cost many a job and caused many an accident. Why take these chances when dependable optical service is rendered here at guch moderate prices? White Gold Filled Glasses Complete $6.85 Above all you want accuracy in your glasses, and when vou are fitted here vou get it—regardless of any single vision required Optical Dept.—Street Floor. 1860 781 & €:STREETS Including * Haircut Shampoo Fingerwave -a $10.50 Combination Head’s up for Spring! Take ad- vantage of this special and get your hair ready for your new hat ami' breezes to blow (you know how curls help them!) today in the 3c/¢flzc,‘ nguly éfl[‘m FOURTH FLOOR LANSBURGH'S 7th, 8th, and E Sts. 58.50 price paid. These glasses made with white lenses in Eve Examination Included Staff of Licensed Optometrists 1935 LANSBURGH'S NA-9800 for Call for appointment And so the new member spends many sleepless nights until he becomes cal- lous to criticism and tries to use his own judgment. * % % % Take, for instance, the problems of Representative Quinn, a Democrat from Braddock, Pa., and a first- termer. It was Quinn who defeated | tain young man from a nearby State, | the popular J. Clyde Kelly in the Democratic landslide in Pennsylvania in the last election. Ever since Quinn came to Congress It was this claim of honorable in- tention, with the interests of the stockholders and the welfare of the foundering Insull ship uppermost in the mind of the trouble-beset cap- tain, that Insull advanced last Fall, when he won acquittal on Federal - mail fraud charges. : . “Martin told me he was in danger otato Prices ngll. | of having his brokerage account sold New potatoes are being sold in| out,” he said. “I told him that if the Yorkshire, England, at 25 cents a' account were sold out it would cause pound. | a general run on Insull securities and forget while he is in Congress is this: “The day after I voted for the President’s $4,800,000,000 relief bill,” he said, “I got a letter from my bank | bawling me out for overdrawing my | account.” | 7th, 8th and E Sts. Spring Planting Salel Sniff deep! That's Spring planting air! Here at Lansburgh’s we're ready with all the makin’s for gorgeous gardens—come lickety- splick to pick out yours! Rose Expert Will Be Here! Mr. Emil Dannegar An expert from the nursery where Lansburgh’s rose bushes are developed—he can answer all your questions about these roses. Take advantage of this very unusual opportunity to get rose dope straight from the man who started them a-growing! Mr. Dannegar will be here hetween 10 and 4 o’clock Monday only. LANSBURGH'S—SHRUBBERY—SIXTH FLOOR. Everblooming Roses 49c Autamn Calendonia Hollywood Mrs. Pierre Du Pont Everblooming Climbers 3 35¢ $100 Climbing Columbia Climbing Mrs. A. Ward Climbing Lady Hillingdon Climbing Red Radiance Sou V. de CL Pernet Climbing Sunburst Flowering Shrubs Fronen Tihe } 45c¢ Al i Golden Apple—Stayman Winesaps Apple—TYellow Transparent ‘rabapple Hyslop Bartlett ears Seckel Cherry—Black Tartarian c:e"y—g:filno!nl:’.. erry—' deorea New Patented Roses Countess Vandal. ‘Souvenir New Dawn Climbing. .$1.50 Blaze Climbing Rose..$1.50 Senior ..iesseieaneees.5¢ Everblooming Roses 35c¢ 3for$1 Jeanna Hill Kajserin Augu: Uprichard Vietoria i Killarne: Brilliant Lady Ashtown Lady Hillingdon La France American Legion Betty Columbia Dame Edith Helen e, Mrs. E. P. Thom Opbelia President Herbert Hoover Radiance. d Rad ista Wel Edith Nellie Perkins E. G. Hill Eioile de France Etoile de Holland Francis Seott Key Grass An Tevlits Hoosier Beauty McGredy Miss Rowena Thom Mme. Butterfly Mme. Edward Herri Sunburst Talisman White Killarney Willowmere Climbing Roses 35c 3 for $1 Climbing American Beauty Climbing Dr. W. Van Fleet Climbing Gardenia Climbing Paul's Scarlet Climbing Primrose Climbing Silver Moon June Roses 35¢c e 3 for S1 American Beauty Austrian Copper Frau Karl Druschki Magna Charta Persian Yellow Soleil d’'Or Hardy Flowering Shrubs Abelia Grandifiora 3 5 c o Double Pink Flowered Almond Crepe Myrtle Mock Orange French Pussy Willow 3 for $1.00 Weigelia “Eva Rathke” Hardy Flowering Shrubs 25¢ Red Leaf Japanese Barberry Hydrangea Paniculata Butterfly Bush randifiora Caly us Floridus B Eed iod Desweed lowering Quince Deutzia, Pride of Rochester F thia Spectabilis Althea Rose of Sharon Hydrangea Arborescens Grandifiora h Honeysuckle ea Anthony Waterea mon Snow! Weigelia “Rosea” PERENNIALS, 6 for $1 Columbine Astilbe Peach Blossom Canterbury Bells ardy Chrys- hemums Lupines Oriental Poppy ‘eonies Hardy Phlox Hardy Pinks Paintsd Daises Sweet William 3 S Red Hot Poker Feather 12 tn 18 inch California Privet 25 for 89¢ $3.35 per 100 12 to 18 inch Ba Hedge 10 for 59¢ $5 per 100 A Statement by Mexican Eagle Oil Company, Ltd. (COMPANIA, MEXICANA DE PETROLEO “EL AGUILA,” S. A.) On Its Mexican Situation Created by the Suit of Commercial Petroleum Company N in.form?l meeting of the shareholders of the Mexican Eagle was held Friday in London. Geoffrey Perry, London solicitor to the Bataafsche lfet.roleum ;\Inuchappii, managers of the company, occupied the chair. A no. tice convening the meeting having been read, the chairman said, “As London gollcn!or to the Bataafsche Petroleum Maatschappij, your company’s manager, in connection with this matter I am asked briefly to explain the position in whnch_the company finds itself in consequence of the suit regarding Amatlan Lot Number 113, mentioned in the notice convening this informa! meeting. THE FACTS ARE AS FOLLOWS: “In the year 1912 one Cullinan leased from one Morelos the oil rights of a plot of land in the Amatlan District and this lease was transferred to your company in that same year. “Morelos, the lesser of the land, had bought it in 1901 from one Zamors. This Zamora had in- herited the property on the death of his father in 1899, and usual in such cases, the properties were distributed among all the heirs by mutual consent, which was an immemorial custom. and this division was eventually confirmed by all the parties concerned in & notarial document in 1907. “Apparently the whole of the difficulties in which the company now finds itself derive from the Ihu ;hn when Zamora, the father, died intestate in 1899, formal judicial proceedings were not fol- owed. “The case built up by the company’s opponents is nothing more nor less than an attempt to take -;Iunug: of this lack of formal intestate proceedings which was far from unusual in these outlying places. “Zamora, Cullinan and vour company remained in peaceful possession of this property from 1901 to 1925, a period of time which, your company is advised, is considerably longer than that required by Mexican law to give complete title, and it is hardly necess y to say that rovalties were duly paid by vour company to the lessor, Morelos. on all of the oil extracted from this property. _“In 1919 a claimant srose against the heirs in the person of Agustin Martinez, who represented himself to be the illegitimate son of an alleged daughter of the Zamora who died in 1899, but no claim was made against your company until 1925. The Martinez claim was fostered by an unscru- pulous group who based their case on the lack of formal intestate proczedings. and thev commenced proceedings in one of the local courts and eventually succeeded in fetting a decree declaring Agus- tin Martinez sole heir through his mother. whose legitimacy has not been and never can be proved, to the estate of Zamora, who had died in 1899. “It must be pointed out that mot only the notarial document confirming the distribution of the properties of Zamora :mong his heirs but also the eventual lease of Amatlan Lot Number 113 by the Mexican Eagle were both ratified by Guillermo Martinez as the legal guardian of Agustin Martinez who claims to be his son and who was then a minor. “The next step was tife formation in 1925 of a company called “Montero Reyes v Silva,” which 1 will call Company ‘A, for the purpose of obtaining compensation from vour company for oil taken out of this property. “Company ‘A’ then proceeded to put forward a claim for compensation by your company and that claim your company naturally rejected. hut to settle the matter theyv agreed that the claim should be submitted to judicial arbitration. which procedure is specially provided for under Mexican law. Company ‘A’ agreed and an arbitrator was appointed in 1927. “Notwithstanding their agreement to this judicial arbitration. Company ? when they saw it likely to £o against them, took steps to go behind their agreement to arbitrate. as follows: In concert with others they incorporated & comoany known as the Compania Petrolera Comer- cial, for the purpost of acquiring the rights which Company ‘A’ claim sgainst your company. but they did not transfer these rights to the Petrolera Company direct. Company “A" first trans- ferred these rights to a dummy who immediately in hi rn transferred them to the Petrolera Company for 3,000 Pesos. The object of these transfers first to the dummy and by the dummy to the Petrolera Company was to avoid the effect of the notice which your company immediately served upon the Petrolera Company, of the existence of the arbitration agreement. “While the arbitration between your Company and Company ‘A’ was still proceeding. the Petrolera Company commenced proceedings before the Third Civil Court of the Federal District of Mexico against your Company, claiming restitution of the oil extracted from Amatlan Lot Number 113, or payment of its equivalent value. which they estimated at 20.000,000 pesos plus interest. They also did all they could to stop or delay the arbitration proceedings, even resorting to threats, intimids and physical violence against the erbitrator. They failed, however, and in January, 1931, the arbitrator made an award in favour of your Company, declaring that Company ‘A’ had ne rights to the Amatlan property, and he instructed that the Petrolera Company, as successor to Company ‘A,’ be notified of that award. “The next step was that vour Company applied to the Civil Courts to enforce the award. The Petrolera Company appeared in these proceedings, putting forward two grounds on which they claimed that the award should not he enforced: that the award had not been made within the proper time and, second, that they were not parties to the arbitration. On the first point, the Supreme Court in Mexico, in May, 1933, decided in favor of vour Companv with the result that the decision of the award was again returned to the lower court for enforcement. “This left the door open to further appeal by the Petrolers Company on the sceond point. name- Iv. that thev were not parties to the arbitration agreement, and in November, 1934, the Supreme Court decided this point in favor of the Petrolera Company. “Concurrently with these arbitration proceedings, action by the Petrolera Company against your Company was continued and the Petrolera Company finally succeeded in September, 1934, in ob- taining in the Tribunal Superior a jud¢ment in their favor for the full amount of 20,000,000 pesos. Against this jud¢ment your Company has appealed to the Supreme Court in Mexico, but in order to be able to secure a stay of execution they were compelled to provide an irrevocable bond. “After considerable delay the Tribunal Superior accepted bond from the Banco de Mexico for an appeal to the Supreme Court, and arranfements were made whereby vour Companv gave counter bond to the Banco de Mexico, secured by sterling deposited to the amount of approximately £2,000,000 in the Midland Bank in London to the credit of the Banco de Mexico. “Thereupon, the Petrolera Company appeared before the Supreme Court objecting that the Banco de Mexico were not authorized to give such a bond and claiming that the judgment was therefore immediately payable. The objection by the Petrolera Company to the Banco de Mexico as bond- giver was overruled by the Supreme Court, but the Court held that the counter security to be given the Bank must be in the form of property in Mexico. I would point out that apart from the deposit in London, the bondgiver, namely, the Banco de Mexico, is in Mexico and has assets suf- ficient to implement its bond. The law, however, provides that where a bond is given by a bank, the counter bond must be provided, which must be spproved bv the Banking Commission. The Su- preme Court, however, ruled that s counter bond must be constituted within the Federal District of Mexico. “Your Company was informed by cable on the 22nd of February that the Minister of Hacienda re- fused to accept any counter bond other than gold deposited in the Banco de Mexico in Mexico City, claiming that in no other way can the order of the Court be complied with. The gold de- posit demanded is the equivalent of the amount of the claim plus accrued legal interest at 9% per annum, plus exchange cover, and amounts roughly to £2.000,000 sterling. discussed with the Mexican suthorities almost every conceivable method of providi counter bond for the Banco de Mexico which would avoid the risks inherent in the actual ship- ment of this enormous amount of gold to Mexico Cil Alternatives put forward by your man- agers included, first, the possibility of another substantial bank in Mexico providing the counter bond for the B: de Mexico against a sterling deposit to their credit in London or New York; second, the po: ty that other interests with substantial assets in Mexico far exceeding the amount at stake, should give counter bond against a deposit to their credit outside Mexico by your company: third, the deposit of gold to the credit of the Banco de Mexico in the Federsl Reserve Bank in New York or the Bank of England in London; fourth, the transfer of silver to the Banco de Mexico in Mexico City; fifth, the deposit of gold to the credit of the Banco de Mexico in the Bank of Internatianal Settlements at Basle. “None of these alternatives has proved scceptable to the Minister, who refuses anything but the deposit of gold in the Banco de Mexico in Mexico City. “The presentation and discussion of these different alternatives by your representatives in Mex- ico with the Mexican authorities has entailed continuous telephone and cable communication with your Managers, who feel that every alternative to the shipment of gold has been explored as thor. oughly as possible in the short time available. “Although the exact time wi which the counter bond must be furnished in & form satisfac- tory to the Mexican authoriti s not been definitely stipulated by the court, your Managers are informed that probabfy only a little more time is left and a final decision should be taken imme- diately. Your Managers wish me specially to emphasize that having taken the best legal advice pos- sible in Mexico, thev are absolutely satisfied as to the justice of your Company’s case. “Your Managers feel that they cannot take the grave decision whether to ship or not to ship this enormous quantity of gold to Mexico without bringing the facts to the notice of the share. holders. “In the short time at their disposal it has been impossible to summon s meeting of the share. holders in sccordance with the company’s constitution. They feel therefore that the only thing they can do is to summon this informal meeting in order to give you this report so that you could sp- point an advisory committee of three shareholders to cooperate with them in dealing with the present emergency.” A number of the shareholders spoke in support of the steps taken by the Man- agers and their proposal to appoint a committee of three shareholders to co- operate with the Managers. A committee consisting of Maurice Hely Hutche ison, representing the Association of Investment Trusts; Arthur Floyd, of the London Stock Exchange, and William Kirkpatrick, Member of Parliament, was unanimously elected. The proceedings then terminated. London, March 9, 1938.