Evening Star Newspaper, April 15, 1935, Page 1

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WEATHER. (U. S. Weather Bureau Forecast.) Fair and considerably colder with low- est temperature about 32 degrees tonight. Tomorrow_fair, colder; fresh northwest winds. Temperatures—Highest, 65, at noon today; lowest, 42, at 6 ain. today. Full report on page A-11. Closing N. Y. Markets,Pages 17,18&19 No. 33,221 Entered as second class matter post office, Washington, D. C. Ch WASHINGTON, D. C, MONDAY, APRIL 15 1935—FORTY-FOUR PAGES. ¢ Foen ‘WITH SUNDAY MORNING EDITION & n o Star The only evening in Washington wit aper the Associated Press News and Wirephoto Services. SUNDAY'S Circulation, SATURDAY'S 196 155 Circulation, 136,841 Some Returns Mot Yet Received. L1 L3 (#) Means Associated Press. TWO CENTS. FRANCE TO ASK LEAGUE TO ‘CONDEMN’ GERMANY; ASSASSIN PLOT IS NIPPED < LAVAL, BENES, TITULESCU REPORTED MARKED TO DIE Geneva Police Reveal Pair Jailed at Marseille as Terrorists—Switzer- land Guards Frontiers. Treaty Breach Penalties Sought. MEMORANDUM GIVEN COUNCIL Reich Is Accused of Destroying Arms Talk. (Copyright, 1935, by the Associated Press.) GENEVA, April 15.—Pierre Laval, foreign minister of France, was said in French quarters to have ready for the League of Nations Council séssion today a recommendation for the “con- demnation” of Germany and a request that the League consider economic penalties against nations which, in the future, violate treaties. As the members of the Council as- sembled for the extraordinary session, called by France because of Reichs- fuehrer Hitler's announcement that Germany had rearmed, indications were seen that France would have difficulties in obtaining a unanimous vote of the international delegates if they considered the terms of France's condemnation of Germany too strong. Memorandum Vigorous. The French submitted a vigorously worded memorandum which charged that Germany had compromised ne- gotiations for the limitation of arma- ment and had threatened “the whole idea of international relations.” Before he entered the Council ses- sion, a high British official announced Great Britain was determined not to abandon her drive for an interna- tional agreement on the limitation of armaments. The private session got under way at 3:42 pm. The French document character- ized the German military moves as “the culmination of long and method- ical labors pursued in secret.” The action, it said, “has deliberately de- stroyed one of the bases” of Ger- many’s collaboration wtih the League of Nations. Negotiattons Compromised. “By so doing it has seriously com- promised the success of international negotiations cn limitation of arma- ments pursued under the auspices of the League of Nations and on the basis of article 8 of the League cov- enant,” the memorandum continued. “Germany has sought to provide a unilateral solution for an interna- tional problem. For the method of negotiations she has substituted a method of fait accompli. “Her decisions, incompatible as they are with any system of reduc- tion of armaments, have raised a problem of general rearmament, in all its gravity, for Europe as a whole. “It is the Council’s duty to pro- nounce upon the responsibility for a situation thus created and upon the consequences it entails. It is likewise the Council’s duty to state the con- clusions that must be drawn, for pur- poses of their treaty policy, by those governments which still desire to maintain and consolidate European security. “There is a more important question that must be raised: For, in a Europe in which the method of unilaterally denouncing international engagements became general, there would soon be no room for any policy but one, force. Security System Sought. “No negotiation is possible if, while conversations are proceeding, one of the parties can arbitrarily possess himself of that which was the subject of the conversations; nor can there be any negotiations of service if its results, whatever they may be, can be destroyed at the will of one of the contracting parties. That is equiv- alent to abolishing the whole idea of international relations. “The effort of pacific nations is directed towards the establishment of a comprehensive system of collective security among states through the conclusion of pacts of non-aggression, consultations and mutual assistance. “Is it worthwhile to continue with those efforts, if it is to be agreed that the repudiation® of contractual undertaking, however solemnly en- tered into, involves no consequences other than that of moral reprobation; if a country runs no risk of releasing itself from its obligations, and if a treaty-breaking state is to be en- couraged by impunity to commit fur- ther breaches?” Without asking that the League take any specific action against Ger- many, the memorandum _expressed (Continued on Page 4, Column 5.) TENSENESS FOLLOWS ANTI-GERMAN CLASH W'indom of Homes and Shops at Gdynia, Poland, Shattered by Stones. By the Associated Press. BERLIN, April 15.—Reports from Gdynia, Poland, said today there was tenseness following violent anti-Ger- man demonstrations yesterday by the Poles in nearby Wejherowo, a city of 13,000 in Pomorze. It was reported & mob threw cob- blestones through the windows of all German homes and business houses. The riots were sald to have started Saturday and to have reached their climax Sunday night, when a yelling throng invaded the streets and threat- By the Associated Press. GENEVA. April 15.—Local police today revealed @ plot to assassinate three noted European statesmen and disclosed, despite denials in Marseille, that two suspected Italian men and a woman had been “detained” in Marseille. The statesmen plotted against, said police here, were Pierre Laval, foreign minister of France; Dr. Eduard Benes, foreign minister of Czechoslovakia, and Nicholas Titulescu, foreign min- ister of Rumania. Police described the terrorists as anarchists. They said the alleged anarchist plot was directed against Benes and Titu- lescu on the ground they were be- lieved hostile to revision of peace treaties. Frontiers Are Guarded. Authorities sent out a general alarm throughout Switzerland and to the German, Austrian and French frontiers to prevent the entrance of all suspected anarchists. Police protection for the statesmen gathering for the League of Nations Council sessions was strengthened be- cause of the reports that terrorists were coming to Geneva. Geneva police received reports that attempts would be made on the lives of certain statesmen either at Stresa or_Geneva. Extraordinary precautions immedi- ately were taken in reinforcing the ordinarily strong police protection at the League headquarters and at the hotels where the various delegates are staying. Statesmen Are Guarded. It is known that anti-Fascist Italians living here tried to reach Stresa while Premier Mussolini was conferring with the French and Brit- ish statesmen there, but that they were prevented from crossing the border. In view of the alarming reports, the visiting statesmen are being ac- companied by detectives wherever they go. Since the assassination last year of King Alexander of Yugoslavia and Louis Barthou, the French foreign minister, at Marseille, the League of Nations has been studying the prob- lem of international co-operation for the suppression of terrorists. The police who said terrorists were trying to reach Geneva would not say definitely from where they started. TWO REPORTED HELD. Confessions Said to Have Been Made in Marseille. LONDON, April 15 (#).—The Geneva correspondent of the Ex- change Telegraph Co. reported today “(Continued on Page 4, Column 4) DOHERTY TERMED HOTEL FINANGIER {Builder Fails to Answer if Magnate Is “Real Owner of Shoreham.” Henry L. Doherty, wealthy utilities magnate, was revealed today as the man who advanced the $300,000 used in refinancing the Shoreham Hotel. This fact was developed by the special House committee investigat- ing mortgage refinancing through Ed- ward F. Colladay, local attorney, who served on the committee handling the reorganizations. “Isn't it a fact, then,” Colladay was asked, “that Mr. Doherty is the real owner of the Shoreham Hotel?” “I can’t answer that,” he replied. Colladay told the committee that Harry M. Bralove, local builder, ob- tained the money from Doherty. Bralove now owns the legal title to the hotel and the committee has ques- tioned the circumstances of obtain- ing it. His title, however, is subject to all outstanding obligations. Bralove to Be Recalled. Representative O'Malley of Wiscon- sin announced Bralove will be recalled +0 explain the circumstances under which he obtained the money from Doherty. Representative Dirksen of Ilrois elicited from Colladay the fact that noteholders were not informed of an early contract with Bralove re- lating to the reorganization. Colla- day said they were not informed of it because the committee was facing “hLostile _ interests represented by Gecrge E. Sullivan” and didn't want these men to find out about it. The committee brought out that the noteholders could have acquired complete title to the hotel by pay- ing claims aggregating approximately $561,000. Colladay said this was not done beczuse the committee didn't have and couldn’t get the money. He said he considered the Shoreham reorgani- zation one of the finest in the country, and expressed the belief the note- holders eventually will get 100 cents on the dollar for their notes. Prosecution Held Barred. Halsey-Stuart & Co. can not be prosecuted now for the sale of Ward- man bonds, termed ‘“criminal,” be- cause the statute of limitations has run on their acts, a special House Committee investigating mortgage re- financing was told. This was taken to mean that threats of criminal prosecutions made last week will not be carried out. The witness, A. G. Ingalls, an investigator for the committee, charged there was criminality in the sale of the Ward- man securities, but that the formation and operation of the Protective Com- mittee for the bond holders was “legal under our system.” Representaiive Culkin of New York suggested that the alleged criminal LEADERS BATITLE LIBERAL SECURITY | Democratic Whips Line Up Forces to Defeat Amendments. By the Associated Press. As the House resumed debate today on the social security bill, Democratic leaders put the party whips at work in an effort to make sure the ad- ministration's measure would not be riddled by amendments. Speaker Byrns conferred with Rep- resentative Boland of Pennsylvania, the Democratic whip, and his 15 re- gional assistants, urging them to be sure that supporters of the bill stayed on the floor so they could beat down the Townsend and Lundeen old-age plans and other liberalizing amend- ments. Afterward at his press conference Byrns remarked: “I think we can beat all the amend- ments.” “Is that what the whips said?” “Yes,” he replied. Sees Little Difficulty. “We might have a little difficulty over that proposal to increase the Federal Government's contribution to- ward an old-age pension from a maxi- mum of $15 to $20 or $25,” he added. “but I don’t think they'll even put that over.” Some members of the Ways and Means Committee had discussed ac- cepting such an amendment. It was generally agreed that an amendment increasing the maximum Federal aid would mean little, since the size of the Federal contribution depends pri- marily upon State payments for old- age pensions. Many States are not in a position to pay big pensions, legislators feel. In the 28 States which do now have old-age pensions the average monthly payment is $16.48. Few Being Paid. Also, these States are paying pen- sions to only about 180,000 persons out of the estimated 1,000,000 over 65 who are dependent upon relief. The administration’s bill would require less strict State limitations upon those who could get pensions, greatly in- creasing the number. Arizona, for instance, now pays pen- sions only to persons who have lived in‘the State 35 years—1,974 who get average pensions of $9.01 a month. The administration’s bill would not grant Federal aid to any State which required that persons must have lived in a State more than five out of the last nine years. Substitutes Ready. ‘Two old-age pension plans are be- fore the House now and others of drastically different nature are being talked up as substitutes. The first two, included in the ad- mlsmtion'a social security hill, are e 1. A plan under which the Federal Government would donate on a 50-50 (Continued on Page 2, Column 3.) By the Associated Press. CLARE, Mich,, April 15.—~John Gil- lespie, millionaire and former police commissioner of Detroit ended 11 days of hiding today when he heard the ened the German population, whose members barricaded themselves in their homes. These reports said a city official led the demonstration after address- ing an anti-German meeting in which violent protests were heard against the “unloyal German minority.” It was said the Poles shouted “Down with the Germans!” and “Throw the voice of his son, John Philip Gil- lesple, 24. “I can hide from everybody else,” he said, “but not Jack.” Unshaven and dressed in wood- man’s clothes, Gillespie said he had spent much of the time since he vanished from his Detroit hotel room April 4, after a quarrel with Gov. dogs_out!” Police stopped the demonstrations. There were no reports of casualties. A 4 Frank D: Fitzgerald, in wandering through the woods. Gillespie had been traced to the 4 (Continued on Page 4, Column 1.) Hiding, Millionaire Yields On Hearing Voice of Son ranch house near here of Tony Achard, & former State Senator and close friend. He showed himself when his son, & member of the search- ing party, called out to him. “I left Detroit because I wanted to pull myself together and preven myself from doing anything hasty,” Gillespie said, adding that he had not yet overcome this feeling. “That is why I have not gone back to Detroit and don't know when I will.” Gillesple’s disappearance followed a heated conference with the Governor, after Fitzgerald had instructed George F. Carroll, Detroit manager for the Liquor Control Commission, to keep Gillespie out of the office there, P W AREADASES . SPEADMORE Real Difficulty So Far Is That $3,700,000,000 Is Not Enough, Ickes Says. By the Associated Press. PHILADELPHIA, April 15.—Harold L. Ickes, Secretary of the Interior and public works administrator, defended Federal spending today with the decla- ration, “It is more important in these times to preserve the morale of the people than it is to balance a set of books.” From the same platform where Lewis W. Douglas, former director of the United States budget, last month warned of a possible dictatorship as the ultimate result of continued Gov- ernment _expenditures, Ickes told Wharton School students of the Uni- versity of Pennsylvania that the public works program grew from “the cowardice of private capital and its refusal to come out from under the bed.” Answering Douglas, the cabinet officer denied that danger of dictator- ship exists and likened Federal spend- ing to the indebtedness incurred by business in capital expenditures. Cash Source Held Unimportant. “The reservoir of money in the country must be tapped for life blood to infuse into the veins of industry in order to combat the pernicious anemia from which it has been suffering,” he said. “There are two sources through which this life blood can be obtained; one is private capitalism and the other is the Federal Treasury. If one source is clogged, then, if the patient is to be saved, the other outlet must be resorted to. “After all, in theory, does it make a great deal of difference which faucet is turned on in order to get this money into circulation? It is the same money regardless of its depository. It is the wealth of America, the accumulation of the brawn of the workmen of America, as well as the brains of the captialists of America.” Many Loans Repaid. Continuing, Secretary Ickes said: “Mr. Douglas must know, but he did not tell you, that many of our projects arz self-liquidating; that more than a billion dollars will be returned to the Government with in- terest, and that the Government is protected by collateral on approxi- mately three-fonrihs of the reimburs- able amount. “Nor did he make known to you that already P. W. A. has sold ap- proximately $75,000,000 worth of bonds taken by it to secure advances on construction projects, at a profit to the Government of more than a mil- lion dollars.” Ickes said that in view of the record it is “absurd” to say P. W. A. has been a failure, because it has not taken men off relief rolls and put them on pay rolls. More Spending Planned. “The real difficulty has been that not enough money has gone into the Federal P. W. A. program. You can- not do the work of $15,000,000,000 a year with $3,700,000,000 spread over two years. Some people either ex- pected too much or they cannot forego even a poor oppdttunity to criticize. “Lacking divine power, the adminis- trator could not perform a loves-and- fishes miracle. “Fortunately, Congress has just made an appropriation for the con- tinuation of the public works pro- gram. The country may be assured that we are not turning backwards. We are not even halting in our tracks. We are driving straight forward, our hands on the plow, following, the fur- row that we hope and believe will turn the soil for such a harvest as will add to the peace, prosperity and happiness of the people.” RANSOM NOTE SECOND Father of Perrot Boy Missing 12 Days, Hears From Kidnapers. CHICAGO, April 15 (®.—The Herald and Examiner said today that Max Perrot, father of 4-year-old Rich- ard Perrot, received a second message Saturday night demanding ransom for the return of his missing son. Neither police nor Perrot would comment on reports a second note demanded $150 for return of the child and that the father spent a night of fruitless waiting in Hum- boldt Park for the writer of the note while 25 plain clothesmen were se- creted nearby. ‘The search for the boy entered its twelfth day with police-trained dogs pressed into service, > LOOKS SERIOUS 'WHEN CH\LDREN GET THE BEST OF EAGLES! ‘F ederal Attorney Hit by Supreme Court in Opinion 'Conspiracy Judgment of; Court of Appeals Is Set Aside. By the Associated Press. In a scathing denunciation of a United States attorney in New York, | the Supreme Court asserted today that | the function of the prosecution is not | to win a case, but to see that “justice | shall be done.” These statements were made by the court in setting aside the conviction and year-and-a-day sentence of Harry Berger of Brooklyn, N. Y., on charges | of conspiracy to counterfeit notes of | the Dallas and Chicago Federal Re- serve Banks. Berger was tried in the Federal Dis- trict Court for Eastern New York, and the conviction was upheld by the Sec- ond Circuit Court of Appeals. ‘Without mentioning the name of the prosecuting officer, the court said he was “guilty of misconduct” and “overstepped the bounds of that pro- priety and fairness which should characterize the conduct of such an (Continued on Page 4, Column 1.) DAR CANDIDATES CIVE STATEMENTS Exchange Follows Appear- ance of Mrs. Pouch’s Name on Blue Slip Ticket. Contest between the two candidates for president general of the Daugh- | ters of the American Revolution in- tensified today with fresh campaign statements, as the hundreds of dele- gates and alternates prepared to open in Constitution Hall tonight with| elaborate ceremony their forty-fourth continental congress. Attorney General Homer 8. Cum- mings and Mrs. Russell William Magna. president general, will be the principal speakers tonight as the or- ganization plunges into an entire week of business and social cctivity. Mrs. William A. Becker of Summit, N. J., and Dr. Flora Myers Gillentine of Arkansas and Tennessee, rival can- didates for the highest honor in the gift of the great women's society, president general,” issued statements from their campaign headquarters early today, reiterating the high lights of their separate contentions. A difference of opinion also cropped out over the appearance of the name of Mrs. William H. Pouch of New York, who is Mrs. Becker's candidate for organizing secretary general, on a “blue slip” memorandum sent out by Mrs. Gillentine. Protests to Mrs. Gillentine. Mrs. Pouch objected to the appear- ance of her name on Mrs. Gillentine’s blue slip ticket of the Gillentine can- didates. She wrote a letter to Mrs. Gillentine in which she said the in- cident had caused her embarrassment because she was Mrs. Becker’s candi- date. Mrs. Pouch further issued a formal statement, in which she said: “Neither Mrs. Gillentine nor any person authorized by her has ever ap- proached me for permission to use my name on any literature. It is my honor to be included on the ticket of Mrs. Becker, whose loyal supporter I am. Mrs. Becker and my sister’s can- didates have my undivided support and I trust that my friends will give Mrs. Becker and her candidates this same allegiance.” In reply, Mrs. Gillentine wrote a letter to Mrs. Pouch, saying Mrs. Gillentine had never claimed Mrs, Pouch as a candidate on the Gillen- tine ticket. Cites Lack of Opposition. “The fact that your candidacy is not ,” wrote Mrs. Gillentine, “should not be a cause for embarrass- ment. It must be obvious that inclu~ sion of your name on a memorandum, showing you to be unopposed, merely states the fact and should not be taken as listing of your name as our associate candidate. “I have not solicited your support nor have I thought it necessary to inform you that we would not oppose your election, or to request your con- sent to our decision. There is no point in any of your fellow candidates directing criticism in the premises for you have had nothing whatever to do (Continued on Page 3, Column 1) ] T9COUNTRIES SIGN CULTURAL TREATY Pan-American Pact Guards Monuments in Case of Conflict, By the Associated Press. The “essential unity of interest” of the nations of North and South | America was stressed today by Presi- dent Roosevelt in sealing a pact ren- dering inviolable the cultural monu- ments of the Americas in case of conflict. The treaty was signed at the White House by representatives of the United States and 18 Latin-American countries, Surrounded by diplomats and offi- clals, the President termed the sign- ing as “a step forward in the preser- vation of the cultural achievements of this hemisphere,” and in effect in- vited the other countries of the world to join in it by adding: “In opening this pact to the ad- herence of the nations of the world we are endeavoring to make of uni- versal application one of the princi- ples vital to the preservation of mod- ern civilization.” He characterized the instrument as “but one of the many expressions of that basic doctrine of continental re- sponsibility and continental solidarity which means so much to the present and to the future of the American republics.” “Let us again dedicate ourselves to the task of translating into deeds the essential unity of interest of the nations of this continent. Let us also bring renewed allegiance to those high principles of international co-oper- | ation and helpfulness, which, I feel assured, will be a great contribution to civilization by the Americas.” Dr. Ricardo J. Alfaro, Minister of Panama, who signed for that country, responded to the President by assert- ing: “After the protection accorded by ‘nternational agreement to humani- tarian activities such as the Red Cross, civilization has undertaken the protection of human culture.” Secretary Wallace signed the treaty for the United States with the repre- sentatives at Washington of the re- publics of Bolivia, Brazil, Chile, Costa Rica, Cuba, Santo Domingo, Ecuador, El Salvador, Guatemala, Haiti, Hon- duras, Mexico, Nicaragua, Panama, Uruguay, Peru, Colombia and Vene- zuela. Culminates 30 Years’ Work. The treaty, a memorial to Nicholas Roerich of New York, renowned scholar and scientist, who worked for 30 years for its adoption, will spread to both continents a principle set up when the North and South during the Civil War agreed not to harm Mount Vernon, the home of George ‘Washington. The treaty also brings into existence a new flag, a sister to the Red Cross banner, which in the future will mark as inviolable all buildings which fly it. This new emblem consists of a triple crimson sphere within a crim- son circle upon a vhite background. Within the 19 countries lie early Spanish cathedrals and Maya ruins and many of the ancient monuments associated with Columbus and the other discoveries in the New World. The signing of the treaty coincided with the celebration of “Pan-Ameri- can day.” Flags of all pan-American nations were flown from the Pan- American Building here in honor of the occasion. Debt 141 Years 0ld. COLUMBIA, S. C., April 15 (#).— Speaking of war debts, South Caro- lina is still paying for the Revolution. The obligation consists of a $19,418 balance due on bonds issued in 1794 to help pay for the cost of the war in South Carolina. NEW . R A, TEST CASE IS ACGCEPTED BY SUPREMECOURT Arguments in New York Poultry Controversy to Be Made May 2. LOWER TRIBUNAL HELD PRINCIPALLY FOR U. S.| Retail Dry Goods Association Offi- cer Urges Extension—Modifi- cations Recommended. By the Assoclated Press. ‘The Supreme Court agreed today to pass on the constitutionality of the national industrial recovery act. A final decision in a New York poul- try case, selected by the Government as ideal for the purpose, is expected before the present term of court ends late in May or early in June. Argu- ments will be heard un May 2. A previous case—against William E. | Belcher, Alabama lumber dealer—was | dropped by the Government after it | reached the Supreme Court, on the| ground it was not a satisfactory test. The lower Federal Court had held the recovery act and the lumber code invalid. In the poultry controversy, the Cir- cuit Court of Appeals in New York decided principally in favor of the Government, U. S. and Firm Appeal. The appeal was filed by the Gov- ernment and by the A. L. A. Schech- ter Poultry Corp., the Schechter Live | Poultry Market and individuals of the | two firms convicted of violating the live poultry code. The court’s determination to review the case was made as the Senate Finance Committee entered the last week of its investigation into N. R. A. prior to framing a law extending the recovery unit. Retailers doing a business of $4.-| 000,000,000 annually asked Congress | meanwhile to continue N. R. A, but with some modifications. As the Senate Finance Committee started its final week of hearings on the recovery law, Irving C. Fox, rep- resenting the National Retail Dry Goods Association, urged extension of | the recovery law. Hits Price Prop. Fox said, however, that the admin- istration of N. R. A. had gone far afield from the aim of Congress and | that its “Full value had not been realized” because of price fixing and trade practice provisions. = The maintenance of high prices has been “a wall in the path of the res- toration of business,” Fox testified. As an example of what he con- sidered going too far in the codes, Fox cited a pending code for the optical retail industry which would | specify the kind of elevators that should be used by those in the busi- ness. Speaker Says Codes Futile. A. P. Haake, speaking for the Na- tional Association of Furniture Manu- facturers, said the industry “would like to see N. R. A. discontinued.” He said the industry had “come to the conclusion that N. R. A. and the codes are futile, that it is not possible to accomplish the purposes desired through the machinery that has been or can be set up.” Leon Johnson, a retail grocer of Shreveport, La., told the committee “not a grocery firm can operate suc- cessfully under the code.” 'F.E.R. A. HEAD BACKS | 'OHIO RELIEF CHARGES Stillman Discloses “Deplorable” Irregularities in Trumbull County Set-Up. By the Associated Press. COLUMBUS, Ohio, April 15.—Gov. Martin L. Davey’s charges of waste and inefficiency in administration of rehief in Ohio received support today in a report of C. C. Stillman disclosing “startling information” regarding a “deplorable” condition in Trumbull County. The Federal relief administrator for Ohio made public a report on a two- month investigation, charging gross irregularities in the Trumbull County rehef set-up. Stillman said, however, the situation is being remedied: ‘The report charged: ‘That county relief employes appar- ently entered claims for automobile mileage from their homes to the of- fice; that automobiles of three em- ployes were painted in a work project paid for with relief funds: that there was a reported shortage of 400 dresses; that although $1,000 was reported spent for blankets, no reports that the blankets were distributed could be found; that $11,406 was spent to re- habilitate the rellef office at Warren, when an F. E. R. A. engineer estimated the cost at approximately $3,600, and that tolls were missing on work projects. Victim of 2 Hold-Ups in Court As He Pulls Gun for Protection A victim of two hold-ups during the last 10 months, Ralph D. Finch, driver and collector for a local ice cream manufacturing company, found himself in Police Court today on a charge of carrying a concealed weapon because he attempted to thwart what he thought was going to be his third robbery. In one of the earlier robberies he was shot through the ear. Finch's arraignment todsy resulted from a slight collision of his cart with one occupied by two colored men Sat- lairday afternoon on Eighth street. ‘The two men jumped out of their car and ran toward him, he told officials in the District attorney’s office, and, y | believing he was about to be robbed, he drew a gun. He was arrested a short time later. Finch stated that not only had he been twice held up, but at the time of the collision on Saturday he was in possession of $2,000 which he had collected during the day. Assistant District Attorney David A. Hart told Finch there was nothing to do but charge him with carrying a concealed weapon, since he had | not obtained a permit for the gun. Finch entered a not guilty piea and | demanded a jury trial when arraigned in Police Court before Judge Ralph CRASHDURING WAR SEEN BY BARUCH IN “FLYNN PLAN' Senate Arms Probers Told Profit Scalping Would Ruin Country. COMMITTEE TO Quiz BEN SMITH ON DEAL Seek to Determine if He Had “In- side Information” of Ship- building Program. By the Assoclated Press. Bernard M. Baruch today assai'"i the “Flynn plan” advanced by the Senate Munitions Committee to tak< the profits out of war. He said it would “abolish the present economic system in war.” John T. Flynn, writer on economic subjects and adviser to the committee, has drawn a plan to limit industrial profits during war to 3 per cent and individual incomes to $10,000. Cap- tains of industry would be under Army discipline, and could be sent to the trenches if they “failed to co- operate.” Called a plan to “pay as you fight,” the program was attacked by Baruch in these words: “It is clear that business and in- dustry is in large part activated by the spending and investment of in- come and that if a war Government takes all of income, it will not have to worry about paying for the war. It will not be there to pay for it. Either its conquerors or the commune will have that problem.” McSwain Plan Has House 0. K. Baruch, a New York financier who headed President Wilson's World War Industries Board, has proposed a plan of his own to recapture excess war profits, and his ideas were drawn upcn in the drafting of the McSwain bill, which has passed the House. Baruch heads President Roosevelt's commitiee studying the question of war profits. In his statement sent to the com- mittee today, Baruch expressed ree sentment over “slanders” he said wer directed at members of th dustries Board. He decried “insi tions” that members of the board “were there to advance their private interests.” “I am willing to let the whole rece ord speak for itself,” he said His statement was received as the Munitions Committee prepared to question Ben Smith, Wall Street oper- ator, as to his share in a transaction said to have put the control of New York Shipbuilding Corp. into new hands shortly before a $238,000.000 naval building program was launched early in the Roosevelt administration. Bought Half Interest, Previous testimony to the commite tee was that Smith and Tom Bragg, another operator, acquired a 50 per cent interest in the corporation. while the Cord Corp. acquired the balance. Committee investigators said they sought to determine whether Smith had any “inside information” ebout the shipbuilding program. Of the Flynn plan Baruch said: “Plainly, the result would not merely to skim off the war. It is, with insigni ception, to abolish the present eco- nomic system in war. “I am not debating here whether the profit motive is right or wrong. I am only insisting that we recognize reality end what is here proposed. And, I am saying that the advent of modern war and threatened national destruction, when the fate of the peo- ple, as at no other time, depends on the efficient operation at high speed pressure, of its industrial system, is not the moment to select to switch from the fundamental base of our economic system to a new and wholly experimental system which was never adopted at any time in the world’s history in peace or war without an immediate result of collapse and ruin.” Redefines Own Plan. Baruch redefined his own plan. In “simplest terms,” he said, it propesed: “To make it unlawful to raise prices in any war from the day of declara- tion (or thereabout) except as may be permitted by the President and to penalize both seller and buyer for in- fraction. * * * This puts a ceiling over the price structure, but permits fluctuations downward as freely as before. No price is fixed. Nothing is frozen.” “To take, by special taxes, 100 per cent of all profits and income in war above the average of the preceding three years of peace. This skims off every cent of profit due to war.” “At the same time, to increase the regular individual and corporate in- come tax to the absolute point of diminishing returns. This takes all cther available revenue that can be taken without slowing or stopping the flow of munitions to the front.” No Profit Increase Seen. Emphatically Baruch denied that his plan would foster increased war profits—as Flynn asserted. “It is my deliberate and considered judgment,” Baruch said, “that the Flynn plan would insure an exag- gerated inflation far greater than if there were no plan at all, paralyze war production and render this Nation practically helpless against a major attack by any enemy possessing an economic and industrial system fairly comparable with our own. “Much as it may be descried, the cold fact remains that ours is an economy activated by profits. A cer- tain return on money is necessary to make our industrial system work.” Guide for Readers Amusements Comics .. Short Story . Society .. Given, | 9 Sports . Vy:men’s Features .....C-4-6

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