Evening Star Newspaper, May 13, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy, probably occasional showers to- night and tomorrow; not much change in temperature, Temperatures—Highest, 78, at 5 p.m. yesterday; lowest, 54, at 3 a.m. today. Full report on page A-4. The only evening in Washington wit aper the Associated Press News and Wirephoto Services. ¢ Foeni Closing N.Y.Markets, Pages 13,14 & 15 No. 33,249. Entered as second class matter post office, Washington, D. b WASHINGTON, D. C., WITH SUNDAY MORNING EDITION o Star MONDAY, MAY 13, 1935—THIRTY-SIX PAGES. FHF SATURDAY'S 123,395 Circulation, SUNDAY'S Circulation, Some Returns Not Yet Received 133,940 TWO CENTS. SWORN STATEMENT OFFERED BY LONG AGCUSES FARLEY Meetings Concerning U. S. Business Manipulations Charged by Weman. GIFT OF VALUABLE STAMPS IS CLAIMED Calls Between Watts of James Stewart & Co., Inc., and Party Head Are Reported. BY G. GOULD LINCOLN. Senator Huey P. Long of Louisiana, attacking Postmaster General James A. Farley in the Senate today, sub- mitted a sworn statement by Helen Humphreys of St. Albans, Long Island, N. Y., charging that Harry D. Watts of the firm of James Stewart & Co., Inc., had been in contact with Farley on “a wide range of matters having to do with the manipulating of Gov- ernment business and grants and con- tracts.” Among the matters dealt with in the sworn statement and about which Watts sis aid to have talked with Farley were the following: “How insurance premiums in which Farley was interested should be given to one J. L. Nolan; the awarding and placing of orders for marble on the Federal Office Building in New York; the making of arrangements for meet- ing of Farley and Watts while Farley was in New YorK; for giving of certain materials to various concerns in which Farley disclosed interest and concern; for $303.000 to be given to the Raisler Heating Co., in which Farley indicated his interest, which Watts indicated had been done.” Stamp Conversations Charged. The sworn statement of Helen Hum- phries declared that there had been conversations relative to valuable stamps being given by Farley to Watts. Later that there were pay station calls from Farley to Watts that the matter was in serious shape. It asserted that stamps had been given to one Ran- dolph Cook with the Pennsylvania Railroad Co. for business to be had from the railroad to the Stewart Co. 1¢ also asserted that Watts finally was informed that the stamps had been | deposited in a bank as security for a Joan. | The statement further added that Farley had managed to grab all the | papers and correspondence between Ickes, Green and Glavis and that | Farley desired Watts to come over | to his New York office to go over | the matter. ‘In her statement Helen Humphreys said she had various detailed proof | of such matters and others to submit and other witnesses whose names | she can give to prove these matters. She said that the entire files of the, Stewart Co. were “taken out and mostly destroyed and a new filing system installed on advance notice that investigation would likely soon occur.” “Contact” Manager. The Humphreys statement was dated April 23, 1935. At the ouiset of her statement Helen Humphreys said that Harry D. Watts had been taken into the employ of James Stewart & Co., Inc., some years ago. He served as contact manager for the purpose of securing new business, and after about a year he was made vice president at a salary of about $12,000. She said that about the time of the election in 1932, Waits began to make demands on A. M. and James C. Stewart on accounts of contacts he said he had with James A. Farley. Watts, she said, demanded $25,000 @ year, with a share in profits. In the course of his demands, the statement said, Watts exhibited a telegram, *either sent through Farley in person or through Farley’s brother-in-law, Harry Finnegan,” offering Watts a po- sition to serve as an assistant in the Treasury Department to control the Jetting of public contracts. The state- ment added that if Watts were not given the promotion he asked he would control the Government’s business in favor of other concerns. . At the outset of his attack the Louisiana Senator characterized the Postmaster General as a “manipu- lating factor to a diabolical plot.” He charged Farley with having double-crossed, with having distrib- uted sheets of postage stamps worth thousands of dollars not only to his friends, but to “people who were being solicited to give business” to concerns in which Farley was interested. “He was caught with the wool in his teeth,” said Long. The attack on Postmaster General Farley was delivered by Long in support of his resolution calling for an investigation of the public acts and activities of the Postmaster General. This reso- lution was reported adversely some time ago from the Committee on Post Offices and Post Roads. | | ska, his widow, . Long on Friday was able to get (Continued on Page 7, Column 2.) Vanguard of 3,000 Farmers Arrives to Battle for A. A. A. U. S. Chamber of on Processing Commerce Attack Tax Declared Responsible for “March.” A vanguard of the 3,000 farmers converging on Washington to urge retention of the processing tax today declared the attitude of big business prompted decision to hold the mass meeting. Denunciation of the tax and the A. A. A. program by the United States Chamber of Commerce convention two weeks ago aroused the planters to come to their Capital to express their own views in contradiction of indus- try’s stand, Sam Lassen, leader of 51 South Dakota farmers sald. “The Chamber of Commerce prob- ably hurried us up more than any- body,” he stated. “The farmers’ objective is to get cost of production. We do it under the A. A. A. “Industrialists have been limiting their production to the country’s needs for years, but we’'ve been fools enough to pay for the privilege of producing more than anybody wants. “We're sick of it, and we're going to fight for this program.” An earlier train brought 42 farm- ers from Ohio. and in cars and busses others came in from Texas, Alabama, Florida and North Carolina. On their way from cotton, wheat, corn-hog and beet sugar States were hundreds of others. Seven special trains will roll into Washington to- morrow morning. A 45-car Pullman train from St. Louis will carry 615 from Texas. The train will be parked in Eckington yards. Secretary of Agriculture Wallace will address the group at Constitution Hall in the morning, and Adminis- trator Davis will talk to them at the Department of Lebor auditorium in the afternoon. President Roosevelt: will be asked by Senator Bankhead to greet them. Master mind of the movement is Clifford H. Day of Texas. He wrote farmers all over the country to move on to Washington to give their side of the picture. Radio speeches and exhortations from Chester Davis, A. A. A. chief, aroused the agriculturists. They borrowed money from banks and passed the hat among their neigh- bors to pay for the trip. As soon as the movement got under way county agents and local A. A. A. Production Control Committees co- operated with the men to organize the movement, although Davis declares (Continued on Page 2, Column 4.) POLAND MOURNING PILSUDSKTS DEATH Fresh Concern for Peace in Europe Is Felt by Diplomats. By the Associated Press. WARSAW, May 13.— National mourning today was proclaimed for Marshal Joseph Pilsudski, Poland’s dictator, whose death last night gave diplomats fresh cause for concern over the outlook for peace in Eastern Europe. ‘While officials and press joined in paying tribute to the man foremost in the work of building the post-war Poland, the diplomats expressed in- tense interest in the question of the iron-willed marshal’s successor. Upon that, they said, may deter- mine the future of the peace pact system which France is attempting to promote as well as Germany's future attitude toward France’s progrant. May Decide Future Course. It may also decide, they said, whether Poland henceforth will cast her lot with France and Russia or continue along the lines of German rapprochement which Pilsudski him- self marked out. Meanwhile, Mme. Alexandra Pilsud- was in a serious con- dition after suffering from a heart attack. Physicians described the widow’s condition as ‘“unsatisfactory.” The marshal's long illness, it was said, badly affected her own health. Physicians said she had been without sleep since Friday and had suffered an overstrain of her nerves and heart, which caused her collapse after the marshal’s death. She was deeply shat- tered by her husband’s death, whom she venerated She joined the Socialist movement in 1905 during the first struggles against Russian oppression and was the marshal’s close collaborator. Government and opposition press alike expressed the opinion that the loss of Pilsudski would'lessen factional strife, thus helping unite the nation. An order of the day issued to the Polish Army, Pilsudski’s own handi- work, instructed that all “flags and banners be solemnly covered with crepe.” Brig. Gen. Tadeusz Kas- przycki, named acting minister of war to succeed Pilsudski, signed the order. Church, army and war office rep- resentatives conferred this morning, afterward expressing the belief Pil- sudski could not be buried before the end of the week because of the great public demand to view his body. Requiem Mass for Family. A requiem mass was held today for members ot the Pilsudski family and the marshal's closest collaborators, and later Cardinal Kakowski and Msgr. Francesco Marmaggi, the papal nuncio, expressed their condolences to Mme. Pilsudska. The cardinal also requested all Catholics in Poland to unite in prayers for the dead mar- shal. Beginning tomorrow there will be continued prayers in all churches. Capt. Casimir Lapecki, the late (Continued on Page 3, Column 2.) Flandin Leaves Hospital. PARIS, May 13 (#).—Premier Pierre-Etienne Flandin, sufficiently recovered from injuries suffered in an automobile accident to leave the hospital, returned to the premier’s residence today. He is expected to preside over Wednesday's cabinet session. Scarlet Fever Sends Annapolis Trade With Middies to Street By the Associated Press. ANNAPOLIS, Md, May 13.—The Navy's reluctance to expose midship- men to three cases of scarlet fever in this city has imparted a quaint, Old World charm to the business district. Sidewalk cafes and tailor's shops have come into being by special per- mission of the City Council. Trade in soft drinks and June week uni- forms is carried on with the midship- men in the fresh, healthy open air. The academy regulations prevent the midshipmen or other academy personnel from entering homes or public places. No scarlet fever has developed in the academy, and only 17 cases have been reported county in May, as against 20 last month. Authorities, however, did not wish to expose the midshipmen with the June week exercises and the Summer practice cruise so near at hand. Thus the blue-garbed young gen- 4 3 tlemen from the academy could be seen yesterday seated with their “drags” or girl friends, ard relatives in front of restaurants and soft drink Pplaces. Midshipmen are not allowed to ride in automobiles and as they could not enter homes, they spent their time yesterday roaming over the city and countryside. ‘They sauntered about or spent their time in porch swings, chairs cr gardens. Many of the first classmen who graduate in June ere buying their officers’ uniforms. As they could not enter the tailor shops the tailors came to their doorways and with pins and tapes carried out their work and negotiations. every store had its doorway trade, the mid- shipmen stopping outside and call- ing in what they desired. [} HOLDING COMPANY BILL 15 APPROVED Senate Committee Acts Over Protest of Two Who Quit Session. By the Assoclated Press. The Senate Interstate Commerce Committee today reported favorably the revised bill to abolish and regulate public utility holding companies over the protest of two members who, in high dudgeon, stalked out of the com- mittee session. The committee, sitting in executive session, first voted 13 to 1 to report it out, but later two more Senators came in and the vote grew to 14 to 2. Immediately after the vote was taken, however, Senator Hastings, Re- publican of Delaware, and Dieterich, Democrat of Illinois, bitter foes of the section to abolish holding companies by 1942 unless they operate geograph- ically integrated units, arose from the hearing and walked out. Wanted More Study Time. It was indicated from committee sources they protested hotly at not having longer time to study the revised measure, which had been amended in committee. Among its new provisions was one authorizing the Securities Commis- sion to study investment trusts and investment companies to determine what influence they have over com- panies whose securities they hold. Such trusts were described as being large holders of public utility securi- ties. The committee acted after less than an hour of deliberation over the revised measure, which it had con- sidered during a week of executive sessions, Some Systems Exempted. While permitting continued exist- ence to geographically integrated holding company systems, the bill au- thorized the commission to require that not later than January 1, 1940, “each registered holding company, and each subsidiary company thereof, be reorganized or dissolved whenever the Securities Commission finds that the corporate structure or continued ex- istence of such company unduly or :mnecelss::]y complicates the struc- ure of the holding com; stem of which it is a ptgu't. orp:nny!ai‘lyly or inequitably distributes voting power among the holders of securities, or is detrimental t» the proper functioning of a single geographically and eco- nomically integrated public utility system.” By 1942, the measure provided, all holding companies must be dissolved unless the commission finds “that the continuance of the holding company relation is necessary under the applic- able state or foreign law, for the operation of a geographically and eco- nomicaly integrated public utility sys- tem serving an economic region in a single State or extending into two or more continuous Stat - Signt countey = tes or into for _Companies Given Option. Holding companies were given the option of submitting at any time after January 1, 1936, a plan for dissolving themselves or for divesting themselves of control of subsidiary units, under :‘r‘::mlgl:n :qvt.uhble to holders of se- , but under Fe court luperv:.sh lon. yea The bill provides that registered holding companies should not here- after acquire interests outside the public utility fleldi—with the excep- tion of bonds of certain governmental units—but leaves them free to con- tinue in possession of such outside interests as they now hold. The bill carried also all its previous provisions for putting the Federal Power Comission in supervisory juris- diction over operating companies. Readers’ Guide Page, Amusements ...........B-20 @omics ......c.........B-16 Cross-word Puzzle Editorials .. Finance -13-14-15 Lost and Found ..........A-9 Paul Mallon .A-2 Radio .... .B-19 Serial Story .B-11 Short Story .............B-9 Society ..... ...B-2-3-4 Sports ..... .A-10-11-12 Washington Wayside.....A-6 Women'’s Features....B-14-15 » MOSCOW THRONGS HAIL LAVAL'S VISIT Death of Pilsudski Fails to Dampen Ardor of Rus- sian Greeting. GERMANY AND POLAND HELD CHIEF OBSTACLES Extension of Franco-Soviet Treaty to Eastern Europe Pushed Despite Opposition. By the Assoclated Press. MOSCOW, May 13.—After receiv- ing one of the most enthusiastic re- ceptions ever given any visiting dip- lomat, Foreign Minister Pierre Laval of France today began exploring the possibilities of extending the new Franco-Soviet co-operation to other countries of Eastern Europe. He met Foreign Commissar Maxim Litvinoff at the foreign office this afternoon for formal discussion of plans for putting into effect, if need be, the Franco-Russian mutual as- sistance pact recently signed. After the conference, which lasted 90 minutes, authoritative sources said Laval and Litvinoff discussed the pos- sibilities of building up some security system through supplementing the Franco-Soviet accord with an Eastern European pact of non-aggression, con- sultation and non-assistance to an aggression. This idea and matters having to do with other acute problems of the present international situation were studied. Laval Reports on Poland. Present at the conference were Nicolai Krestinsky, Soviet vice com- missar of foreign affairs; Viadimir Potemkin, Russian Ambassador to Paris; Charles Alphande, French Am- bassador to Moscow; Alexis Leger, sec- retary general of the French foreign office, and M. Richard, chief of staff of the French foreign office. In reporting on his conversations at Warsaw, Laval, it was understood, in- dicated his belieef Poland would not be averse to amplifying and extending the existing system of non-aggression pacts, including the Germano-Polish and the Russo-Polish. It was recalled, furthermore, that Germany indicated to the Italo- Anglo-French conferees at Stresa her willingness to participate in an East- ern European non-aggression accord even with nations having mutual assistance agreements among them- selves. An atmosphere of official regret at | the death of Marshal Joseph Piisudski of Poland marked the start of the conversations, although it failed to dampen the enthusiasm of Moscow’s welcome to Laval. Polish Situation Studied. ‘The two statesmen were expected to examine the possible effects of Pilsudki’s death on the European situ- ation. There was no indication this would alter Poland’s stand sgainst joining any mutual assistance system not including Germany. Crowds lined the streets for a mile leading to the railway station and applauded as the Frenchman was driven by. . Germany’s and Poland’s unfriendli- ness to the mutual assistance idea is regarded in official circles here as the principal obstacle to such a de- velopment. “So long as Germany and Poland object to collective security arrange- ments,” a spokesman said, “the Franco-Soviet pact is the most effec- tive security guarantee obtainable, but we would welcome an extension of the system to other nations.” Peace Policy Pledged. (While en route to Moscow from Warsaw last night, Laval told the Associated Press France's peace ef- forts were “not directed against any- ly. (“To the contrary, they call for the collaboration of ell nations of good (Continued on Page 3, Column 1.) TWO RULINGS DELAYED Supreme Court Fails to Pass on Farm Moratorium Aect. The Supreme Court adjourned to- day without passing upon the con- stitutionality of the Frazier-Lemke farm mortgage moratorium act or the validity of N. R. A. as challenged in the New York poultry case. It meets agaip next Monday. Doctors Shut Off Baby’s Esophagus So Lungs Function Dperation Opens ‘Mouth’ in Abdomen to Get Food to Stomach. By the Associated Press. PHILADELPHIA, May 17.—A mix- up between the stomach and lungs of 10-day-old Donald Gottschall—all be- cause his esophagus didn’t get straight- ened out as it should—has been righted and doctors say his condition is “sat- isfactory” after the operation they performed. Physicians explained that instead of leading to the stomach, the esoph- agus ended halfway there in a blind sac. This, they said, was because the and lung diverticulum, LEGISLATIVE BILL THOUSANDS WIRE ROOSEVELT PLEA FORPATMAN BILL Senate Leaders Expect Veto, However, and Pre- pare to Sustain It. Insurgents Can’t Leave the Democrats if the Democrats Keep Close on Their Trail. Compulsory Insurance on Taxis Is Urged by Dissenting Judge Court of Appeals Holds Fireman Who Lost Leg Cannot Sue—Justice Hitz Condemns Conditions Here. A strongly worded dissenting opin- joa recommending compulsory lia- bility insurance, especially for taxi- cabs, accompanied a decision of the District Court of Appeals today which held that Fireman Robert Simon can- not sue the City Cab Co. to recover | damages for the loss of a leg when{ struck by a taxicab in October, 1932. | Disagreeing with the majority of | the court, Associate Justice Willlam Hitz contended the fireman is en- titled to sue and recommended the adoption of compulsory liability in- surance requirements and a change in the legal theory now barring suits of this nature. The fireman was struck by the cab while attending a fire on Tenth street and his leg was so badly crushed when caught between the cab and the fire engine that it had to be amputated. James Hall Semmes, jr., driver of the cab, admitted he was looking in another direction and did not see Simon until after he had struck him. The cab company, through Attorneys Alvin L. Newmyer and David L. Bress, admitted ownership of the taxicab, but contended its only contract of employment was with Semmes’ father. It was shown the father drove the cab during the day, the sbn, also a licensed hacker, frequently taking it out at night, sometimes with (Continued on Page 5, Column 1.) DEBATED BY HOUSE Last Big Supply Measure of Season $2,500,000 Under Budget Figure. The last of the big regular supply | bills for the Government, the legisla- tive appropriation bill, carrying $20,- 335,965, an increase of $1,884,934 | which is a decrease of $2,590,140 from the estimate submitted by the Budget Bureau, was reported to the House today and immediately taken up for | consideration with unlimited genersl:‘ debate. It is estimated by the leaders | that this bill will take up the time of the House for the greater part of this week. The bill carries appropriations to bring salaries in the legislative estab- lishments up to a 100 per cent basis as before the passage of economy legis- lation. The bill provides for the support of the Senate, House of Representatives, Capitol police, Joint Committee on Printing, Joint Committee on Internal Revenue Taxation, the offices of legis- lative counsel, architect of the Capitol, the Botanic Gardens, the Library of Congress and the Government Print- ing Office. Salary Restoration. ‘The appropriations for 1935 were made on the basis of 90 per cent of basic salaries and the budget esti- mates for the fiscal year 1936 were submitted on the basis of 100 per cent salaries. Chairman Ludlow of the subcom- mittee in charge of the bill explained that the increase of $1,884934 is a net increase totaling smaller increases and decreases throughout the various services. A total of $1,380,000 was necessary to restore pay to the 100 per cent level. Chairman Ludlow especially empha- sizes a “gratifying improvement in the Botanic Gardens during the past year.” He explained that there had been reductions in the force of em- ployes at the gardens totaling $5,820. Botanic Garden Report. Representative Ludlow said “the collections in the new conservatory are well displayed and have been in- creased by several important addi- tions. The amount allowed will con- tinue to make provisions for new pur- chases and to supplement them. Provi- sion is made to enable the director to exchange plant material with other botanic gerdens, institutions, munici- pal parks and gardens. This authority will permit surplus material in this garden to be exchanged for valuable materials which is surplus in other places. The public interest in the Bo- tanic Gardens is constantly increas- special plumbing renewal in the Sen- ate wing, $14,000 fog, steel shelving the central portiom for the House document room, and $2,700 for new street lights in the grounds. In order to eliminate confusion re- garding the underground garage in the parkway between the Capitol and Union Station, with a commercial establishment of the same name, the title has been changed from “Capitol " to “Legislative Garage.” 1 i BARBARA HUTTON GRANTED DIVORCE Heiress Freed From Prince | in 10-Minute Secret Hear- ing at Reno. By the Associated Press. RENO, Nev., May 13.—Escorted by the Washoe County sheriff and the | chief of police of Reno, Princess Bar- bara Hutton Mdivani went to court today and won a divorce from the dashing Prince Alexis Mdivani in a 10-minute private trial. Dressed in a smart black sports dress trimmed in white and wearing a small black hat the princess en- tered a rear door of the court build- ing by way of the ramshackle Washoe County Garage and Jail Building to avoid a crowd of curious. She hurried into the court and up the narrow flight of stairs in the rear of the building without pausing to speak. After the hearing was completed a court bailiff ordered the halls of the court house cleared. Remarriage Rumored. The princess left the building by the same route—through the Jail Building and into Attorney George B. Thatcher’s car, which was parked in the garage. She drove hurriedly away to the Thatcher residence. Granting of the decree left her free for a possible marriage to the hand- some Danish nobleman, Count Kurt Haugwitz-Reventlow, who was report- ed to be either already in Reno or speeding here by train. Thatcher, when questioned before tlge trial, denied reports Count Haug- witz-Reventlow was in Nevada or at nearby Lake Tahoe, Calif. Reports have been current here the princess and the Danish nobleman plan to wed either today or tomorrow. Tells of Cruelty. The princess told her story of the “extreme cruelty” allegedly inflicted upon her by her polo-playing prince privately, in the drab surroundings of a world-famous court room. All would-be spectators were barred as the 67-year-old presiding jurist, District Judge Thomas F. Moran, or- dered the hearing to begin. The two- year marriage was ended in a few minutes. WORLD BANK HEAD ASKS STABILIZATION Last Fraser Report on Basel In- stitution Voices Note of Optimism. BASEL, Switzerland, May 13.—A new call for stabilization of the world’s leading currencies was sound- ed by Leon Fraser today in his last PARTY RO PERLS LR A EXTENSN House Leaders Want Two- | Year Plan, but Senate Chiefs Favor 10 Months. By the Assoctated Press. | The outlook for new N. R. A. legis- | ferences between Democratic leaders on the opposite sides of Capitol Hill Party chieftains In the House ap- peared determined to fight for the two-year extension favored by Presi- dent Roosevelt. Senate Democrats, however, planned |to press for action this week on & resolution by Senator Clark, Democras, of Missouri, which would give the Blue Eagle only 10 months more of life. In the face of threats by some Senators to let N. R. A. die June 16 if House leaders persist in standing by the President on this issue, Chair- man Doughton, Democrat, of North Carolina, of the House Ways and | Means Committee made it plain he | had not changed his mind. Backs President Emphatically. “I'm for what the President wants, and I've had no indication that he wants anything less than a two-year “I be- | extension,” he told reporters feels the same way.” Meanwhile, the 10-month extension recommended by the Senate Finance Committee drew support from the Liberty League. In a statement issued yesterday the league said: “After more than two years of ex- | perimentation, it is time to find out | whether many of the projects and policies adopted can stand the test of constitutionality in the Supreme Court. “The Clark resolution makes it prac- it will not be necessary to start this long and tedious process all over again. Sees Trickery in Richberg Shiit. “The administration bill, on the contrary, might make it possible, even should the present law be invalidated, to harass the American people with unwarranted and bureaucratic inter- ference for a considerable period in the future.” The statement contended the N. R. A. extension bill, first introduced at the request of Donald R. Richoverg, head of N. R. A. Governing Board, had “all the earmarks of a trickery attempt to avoid” a Supreme Court decision by shifting the administra- tion’s legal foundation. Richberg has reached an under- standing with Democrats of the House and Ways Committee and is drafting a new bill which would extend N. R. A. two years but trim the Blue Eagle's wings in & manner somewhat similar to the Clark resolution. ASTRONOMER SINKING Dr. Edwin Frost “Very Low” After Operation. CHICAGO, May 13 (#).—Physicians attending Dr. Edwin B. Frost, famous blind astronomer, at Billings Memo- rial Hospital, reported his condition today as “very low.” Dr. Frost 68- year-old director emeritus of Yerkes Observatory, underwent an operation a week ago for the removal of gall stones. By the Assoclated Press. Details of how Andrew W. Mellon arranged secretly to buy five famous paintings from the Russian Hermitage collection for $3,247,695 were given today at an Income Tax Appeals Board hearing. 5 Mellon, seeking a tax rebate of $139,000, claims the pictures were bought for the “A. W. Mellon Charita- ble and Educational Trust.” M. Knoedler & Co., New York art annual report as president of the | dealers, made the purchases. Charles Bank for Internationsl Settlements.| R, Henschel, president of the firm, The American banker was - | testified that Mellon advanced $6,- succeed: ed in the presidency by Dr. Leonardus | 654,000 in 1930 and 1931 through an Beyen, of Rotterdam, usual al- of the Netherlands, with | agreement whereby the former cab- general manager | inet member had his pick of the old masters Knoedler lation was complicated today by dif-| lieve the Ways and Means Committee | tically certain that there will be such | a test and that in the event of a de- | cision adverse to the administration | INFLATION OPPOSITION EXPECTED IN MESSAGE Friends Say President Cannot Re- treat From Stand Already Taken on Bonus Issue. By the Associated Press. ‘Twenty-three thousand telegrams— favoring the Patman cash bonus bill by 8 to 1—were on President Roose- velt’s desk today when he returned from a week end fishing trip. Nevertheless, White House attaches looked for the President to return the measure to Congress with a veto soon after it reaches him, probably tomor- row. On Capitol Hill, where the expecta- tion is that Mr. Roosevelt will include a stand against inflation among his | arguments for not approving the new money bill, congressional leaders be- | lieved they had a narrow margin of | votes in the Senate by which a veto | could be upheld. Stephen Early, a presidential secre- tary, estimated that the deluge of telegrams were 8 to 1 for the bonus. In addition, he said, there were be- tween 2,000 and 3,000 letters on the | subject. It was said at the White House that Mr. Roosevelt did not discuss the bonus with congressional leaders dur- ing his week end visit to the Wood- mont Rod and Gun Club in the Blue Ridge Mountains. Seen Holding Firm. Some of those who were with Mr. Roosevelt and who did not wish to be quoted by name, held that it would | be impossible for the President to re- | treat from a stand already taken; that is, that bonus money would go |to those who had jobs, as well as | the unemployed, while the administra- tion’s program was designed to take care of the needy first. Conferees forecast that after stress- | ing that argument the President would | contend that while the bonus might | be paid in new money without actual | damage, the experience of history was that initial steps toward outright in- flation always have led to disaster. While talk of possible compromises or substitues for the Patman bonus would not down in some congres- sional circles, one of yesterday's con- ferees in the presidential party said that any discussion of compromises must wait until after Congress had acted on the President’s veto. The chamber in which post-veto interest would center is the Senate. Roosevelt leaders there are saying they can count on 35 votes—three more than they require to stop a move to upset a veto. As for the House, leaders conceded that more than the necessary two-thirds of legislators there would vote to override the veto. Coughlin’s Appeal. Backers of the bonus drive con- tinued their efforts to put the Pat- man bill across. Father Charles E. Coughlin, in his radio address last night, appealed to the President to sign the bill. Attacking the bond- issue method of financing as against the Patman new currency method, he said: “I cannot believe that you would demand that the taxpayers pay $1,- | 900,000,000 bonus to the bankers sim- ply because the soldier is entitled to be paid $2,400,000,000. I cannot be- lieve that you will prevent the soldier | from receiving his just dollar of dues simply because the banker is not to receive his unjust 81 cents of the bonus.” Senator Thomas, Democrat of Ok- lahoma, leader of the Senate Pat- manites, planned to withdraw, prob- ably tomorrow, the motion by which he has kept the bill bottled .1p in the Senate while its backers sougnt to line up support. That will speed it to the White House. Before the President and the con- gressional leaders returned from their week end trip to the Woodmont Rod and Gun Club on the Maryland-West Virginia border, Representative Pat- man, Democrat, of Texas, author of the bill, had said some legislators felt certain leaders had urged the Presi- dent to suggest a new compromise. e SHIPYARDS SHUT DOWN 4,000 Men Walk Out When Con- tract Negotiations Fail. CAMDEN, N. J, May 13 (A—A complete shutdown of the New York Shipbuilding Co. operations was claimed by the Industrial Union of Marine and Shipyard Workers today as some 4,000 men walked out on strike. The strike was called when efforts at renewal of the workers’ contract failed. Mellon’s $3,247,695 Secret Art Purchase Bared at Tax Hearing a profitable resale to others of pic- tures which Mellon rejected.. Pictures for which the Soviet government wanted too high a price were not purchased. For the five pictures, Henschel said, the Soviet government was paid 595,- 000 British pounds and the Knoedler firm received a 12 per cent commis- sion of 73,250 pounds. The purchase of the pictures, made after two years of negotiations in Berlin and New York, and involving several ship-to-shore telephone con- versations were kept secret, Henschel said, because Soviet officials “didn't want the general puolic to know of the sale.” Carman H. Messmore, vice presi- dent of the Knoedler Co., and Hen- schel both asserted that Mellon paid only a fair value. A