Evening Star Newspaper, June 18, 1935, Page 2

A—2 ‘wx : THE EVENING STAR, WASHINGTO! PAY AND POLITICS IMPERIL PROGRAM Flaws Discovered in Plan| to Put Jobless on Work Projects. BY DAVID LAWRENCE. It is necessary to record the sad truth that the so-called wm'kd'enerl program has collapsed. Two months ago Congress author- ized the expenditure of $4,000,000,000, being told that it didn't know how to spend public money for relief and that the Executive alone knew what to do. Many members of Congress objected that this was the function of the legis- lative body, but public opinion rather sided with the Presdent, on the theory | that if $4,000,000,000 were going to be | spent, Mr. Roosevelt could do a bet- | ter job than 531 members of the Sen- | ate and the House. | But as it turns out, Mr. Roosevelt had plans that were imprdbtical and now are being abandoned because they could not possibly put 3,500,000 men to | work. The amazing thing is that it | ook two months to divide $4,000,000,- 000 by 3,500,000 to find out that the expenditure per man could not possibly exceed an average of about $1,140 | each. Business Looks On. At the very first meeting a few weeks ago, when all the theorists in the New Deal were gathered together with their fantastic plans and projects, a couple of hard-headed business men who were present quietly noted the fact that hardly any project had been discussed which didn’t involve a cost of at least $5,000 per man. But then, shard-headed business men are re-| garded around here as a species to be | used for purposes of political con- | demnation and not for co-operation. Now the President himself frankly | concedes that many of the projects | submitted by his own departments and by the States and municipalities for made work are in excess of $1,200 | a man. He doesn't reveal how much | of this condition is due to the way the labor leaders have forced the pay- | ment of prevailing wages on relief projects and how much is due to the impractical character of the projects | themselves. But the biggest flaw in the whole $4,000,000,000 fund is the very thing which it avoided if Congress delegated it all to the Executive. It is the way the political influence has been developing | as virtually the major factor. Scarce- ly a day goes by that the President isn’t in conference with various Sen- | ators or Representatives from a given | area with reference to the allocation | ©f funds. | Club Tactics Inferred. It is reported that Mr. Roosevelt appears very sympathetic to congres- | sional influence and that when once | the discussion of the projects is con- | cluded, the President quite naturally discusses pending legislation. So that whether Mr. Roosevelt intends it or not, the inferences are being drawn | on Capitol Hill that the $4,000.000,000 fund is being used to persuade mem- bers of Congress to vote for the Pres- ident’s legislative program. Sometimes the political aspect is| not as crude as that described in the foregoing paragreph. Many a Sen- mtor doesn't care about the details| of the projects allotted to his State €0 long as he has a voice in the appointment of the “works progress administraters.” There is to be one for each State. | 1f e Senator behaves, that is, if he | eats out of the presidential hand, he will be given the privilege of con- trolling his own man as works prog- | vess administrator. All of the 48 administrators now have been ap- pointed. It is considered advisable to wait and see how the members of Congress perform before approving projects of these State administrators. Another sign of the times is the almost enthusiastic way that Harry Hopkins talks about the folks on Capitol Hill, how well he gets along with them, etc. It appears that Capitol Hill and the Work-Relief Ad- ministration are working hand in hand. Little Money Allocated. But it is significant that very little | money has actually been disbursed. | Except for a few projects, too, which the President considers he is morally | obligated to approve, amounting to | what he calls a drop in the bucket, 2 mere $150,000,000 or thereabouts, the remainder of the big fund has not been allocated. Among those | things where Mr. Roosevelt feels he has a moral obligation is a $40,- 000,000 project to harness the tides in the Bay of Fundy, a project which, | it appears, was a moral obligation in | last year's congressional and guber- | natorial election in the State of Maine. Gov. Brann promised his constituency | that, if elected, he would get the| project approved, and, though it has | been turned down by Government engineers again and egain, it is going through, nevertheless, because of the | moral obligation which the President | feels his administration has under- | taken. | Direct relief, of course, is proceed- ing as usual and is caring for the un- emplOyed through Federal and State machinery. But direct relief is not likely to cost the Government more than about a billion dollars a year, #0, if public opinion were to insist that the rest of the program be scrapped ‘unless Congress can specify a method of allocating the funds that the peo- ple can approve, there would be no distress in the interim. Election Gets Nearer. Actually, the expenditure of $4,000,- 000,000 at the very time preparations are being made for the presidential and congressional campaign cannot but lead to serious issues in 1936 con- cerning the proper use of public funds, the wasting of taxpayers’ money to influence political logrolling on Cap- itol Hill and the efficacy of all the ballyhoo about finding jobs for the 10,000,000 still unemployed. The tragedy is that, if the Govern- ment ownership and Socialist groups in the New Deal could be sidetracked, recovery would come through natural means of private spending and there wouldn’t be any need for the direct relief funds or the billions for so- called “work relief.” (Copyright, 1935.) ————— U. S. VISIT PLAN DENIED LONDON, June 18 (#)—Govern- ment sources stated today that pub- lished reports that Ramsay MacDon- ald, lord president of the Council and former prime minister, was con- templating visiting the United States on a diplomatic mission were entirely without foundation. It was further stated that the gov- ‘ernment ‘does not consider that ques- ‘tions involving the United States and ‘Great Britaln had hed a point l was believed would be | What’s What Behind News In Capital Guffey Bill Test of N.R. A. Ruling—Backed by Coal Interests. BY PAUL MALLON. T IS more or less an open secret that the Justice Department law- yers generally consider the Guf- fey-Snyder coal bill to be uncon- stitutional. This may be denied now because the White House is pushing the bill energetically in Congress. But around the department, the right-hand men of Attorney General Cummings are freely saying, off the record, that the bill is illegal on three points Its price-fixing features are definitely monopolistic; its tax pro- vision is coercive and not for the pur- pose of raising revenue; and any way, the Supreme Court already has held that coal mining is not interstate commerce. This situation has stirred up con- siderable speculation as to why Presi- dent Roosevelt chose to get behind a bill which his lawyers consider to be of doubtful legality. The story most widely accepted by those in the know is that the President bas seized this issue as a vehicle to carry home his opposition to the Su- .preme Court decision on N. R. A It is a rather deep story but a plaus- ible one, and the only explanation for the enigmatic situation surrounding { the bill Reaction Not Pleasing. The truth is the public reaction to | the N. R. A. decision was not what | the administration desired. President | Roosevelt’s friends blame it on the fact that the country failed to under- |stand the issue. Constitutional ques- tions are always involved and not widely understood. The sick chicken case was not one which could be | dramatized easily before the country. Coal affords a broader opportun- ity. Nearly every one thinks the bill is meritorious. A majority of coal operators, as represented by pro- duction tonnage, want it. The miners are threatening to strike unless it is passed. The only people strongly against it are the large coal consumers (railroads, utilities) who fear higher prices. Non-union operators also oppose it because it gives more power to the United Mine Workers. The National Coal Association, rep- resenting the industry, has taken no stand on it, being neither for it nor against it. operators, except the Mellon crowd, are for it. Everyone on the inside of the sit- uation agrees that a swift court test of the bill is certain. The highest mine worker authorities say they take that for granted. So does the coal association. They all expect that it will be taken to the Supreme Court next Winter in plenty of time for a decision before the 1936 presidential campaign opens. That the court will throw out the bill also is taken for granted by a | majority of authorities. In the Coro- nado case the court said (page 25): “Coal mining is not interstate com- | merce and the power of Congress does not extend to its regulation as such.” It added that if Congress deems cer- tain “recurring practices” likely to obstruct, restrain or burden the indus- | 1 | supervision and restraint. Taxes Would Force Code. | But the Guffey-Snyder bill goes | further. | returns 99 per cent of the tax to those operators who join up under a code. ly to force the operators in under a code. The New Dealers have been play- ing around coyly with the problem of international currency stabili- zation lately. It is known to have been the topic of recent White House conferences. A very significant paragraph on the subject appeared in a memo recently given out by the Commerce Depart- ment, It was not written offhand by a departmental clerk, but was care- fully worked out by officials and may be taken as a direct hint of New Deal thought on the subject. It follows: “It is generally agreed among world statesmen, scholars and business men that action should be taken to bring the currencies of the leading countries into some definite form of equilibrium. Until the relationship of international currencies has been established upon a basis inspiring more confidence than the present improvised system of clearing transactions between nations * * * jt is reasonable to assume that the total volume of world trade will not expand appreciably in the coming months, Moreover, if the gold bloc should be forced to give ground, ex- cept in accordance with international agreement, world trade would un- doubtedly receive another serious set- back.” Britain’s Attitude Revealed. Unofficial feelers sent out by the New Deal have developed the fact that Britain does not want to stabilize. She considers the dollar undervalued. We consider the pound overvalued. Also, money has become more deeply involved with the tariff and war debt questions. Trying to settle all those things involves a stupendous task, for which the world is not yet ready, if the financial authorities among the New Dealers understand the situation correctly. These things will be settled some day, but not just yet. Here’s an amusing one on *he Russo- Japanese tension along the Siberian A few days ago, the Suviets t _Where any such could be useful. Virtually all the northern | | try, it may subject them to national | It taxes all operators and | ‘The purpose of the tax is mere- | NICE PLANS FIGHT T0 GET BAY SPAN Maryland Governor to Come Here Tomorrow for Talk With Ickes. By the Associated Press. BALTIMORE, June 18.—Taking issue with estimates made in Wash- ington over the number of men who would be employed in building the proposed Chesapeake Bay bridge, Gov. Harry W. Nice today announced he will go to the -capital tomorrow to discuss the project with Secretary of the Interior Harold L. Ickes. ‘The order of President Roosevelt in directing that projects to be financed from the $4,00¢,000,000 public works fund, will be accepted only if the tota: outlay on ‘labor is enough to bring about an average of $1,200 a year for each laborer, indicated that the plan for the bay bridge would be scrapped. Gov. Nice said today he is not dis- couraged by the report that most of the $10,000,000 outlay for the span would go to materials, machine hire and similar items rather than to em- ployment. Washington officials have estimated that not more than 3,000 men would be given jobs on the bridge, indicating that most of the money would be spent for materials. Denying that only 3,000 men would be given work, Gov. Nice said that “during all our hearings on the sub- ject, I was informed that about 6,000 men would be given jobs—about 3,000 of them direct jobs and about 3,000 men indirectly. “I am going to Washington tomor- row to talk the whole thing over with Mr. Ickes. I haven't abandoned hope by any means. I'm going to see if we can’t find a solution to the prob- lem—so that the bridge can be | financed out of the works funds.” Indicating that the construction of the bridge depends entirely on the granting of Federal funds, the Gov- ernor said: “Maryland can't build the bridge by | itself. We simply haven't got the | | money. If the project is left entirely‘ up to Maryland, without Federal funds, then the bridge won't be built.” PLANS BELIEVED HALTED. Plans to finance the Chesapeake Bay Bridge out of the $4,880,000.000 | | Federal work-relief fund were be- | lieved definitely halted today as a re- | sult of President Roosevelt's explana- tion of methods of expending and ad- ministering the money. In his conference with State works progress administrators yesterday, Mr. Roosevelt emphasized the fund would be spread to care for 3,500,000 esti- mated unemployed, and that the maxi- mum salary to be paid a worker under the program would be $1,200. HOLT, 30 TOMORROW, WILL DEMAND SEAT | West Virginia Senator-Elect to { Present Self for Post to Which He Was Chosen. By the Associated Press, ‘ Publicized almost as much as the| | first natal fete of the Dionne quin-| | tuplets, the thirtieth birthday of Sena- | tor-elect Rush D. Holt, Democrat, of | West Virginia, will arrive tomorrow. | With it, unless something unexpected | happens, will come a seat in the Senate for Holt. When the Senate convenes he will be present to claim the seat to which he was elected last November. He has deferred taking it until attaining the | minimum age of 30 set by the Consti- | tution. | A discussion of the constitutional question raised by former Senator Hat- fleld, Republican, of West Virginia D. C. TUESDAY, JUNE 18, 1935. Mitchell Conducts Day-by-Day |SHIPPINGINVOLVED Commerce Department Expose about the Commerce Department. l BY BLAIR BOLLES. N THE second installment of what promises to become a daily series on “Why I Left Public Office,” Ewing Y. Mitchell, deposed As- | sistant Secretary of Commerce, today told the press of the long-time efforts of Secretary Roper to have him trans- ferred to another job. At a private press conference in a room on the mezzanine floor of the Ambassador Hotel, which he has rented just for this purpose, Mitchell related that he was first offered - post with the R. F. C. and then urged to become port-of-entry com- missioner for New York at $8,000, a job which was later given to a man satisfied with $3,200 for the work involved. As a last resort, it was suggested Mitchell become Minister to Rumania. Despite the fact all these jobs were easier than being Assistant Secretary and carried the same salary, he said, was ousted by President Roosevelt Saturday. “I am going to stay here a long time now,” he said. To make his campaign to “clean up the Commerce Department from the outside” more effective, he has ar- ranged da‘ly press conferences in the hotel room. The conferences are broadcast, and augmented by type- written statements which are care- fully released one to each newspaper man after his identity is checked against a prepared list. Wondering at the offer of so many Mitchell refused to change until he | Ewing Y. Mitchell, erstwhile Assistant Secretary of Commerce, is shown here at the second of what promises to be a series of daily press conferences, in which he plans to tell, in driblets, “all that he knows” —A. P. Photo. jobs to & man who in 34 years of po- litice? activity never “.eld public office until 1933, Mitchell said today he | asked Roper why he did ot seem to fit in the Department of Commerce. Roper’s reply, Mitchell declared, was limited to this: “You are just not a leader of men.” Mitchell said he hotly replied in these words: 2 “Mr. Secretary, I can't lead those hard-boiled Republican bureau chiefs when you agree with everything they do.” When it was suggested that Roper Mitchell replied: “Sure, he was going to give me a job. That's'the easiest thing he does is invent jobs.” Mitchell is undetermined now whether he will support the Presi- dent next year. “That all depends on who runs against him,” he said. “Of course, I don't blame this situation in the Commerce Department on him. , He can't know everything that is going on. The President is doing the very | best he can under adverse circum- | stances.” | He admitted he suspected he was | being shadowed and that his telephone wires had been tapped. “Are you having the shadowed?” he was asked, “Oh, no, if they want to shadow | me, it’s all right. I don't care. They shadow isn't much to learn about me.” Mitchell promised he would reveal everything he knew in driblets. WALLAGE DENIES PAPER TAXLOOMS Letter to Publishers Dis- avows Newsprint Levy in challenging Holt's right to a place is expected in the Senate, but Holt| supporters assert a poll has shown| | that he is sure 2 be seated. Some of | the Senators opposing Holt also con- | cede he will win the seat. | The Senator's father, Dr. M. S. | Holt of Weston, W. Va. a Socialist | and former mayor of that town; his mether, other members of his family and a large group of friends will be | in the gallery to see him present himself. {DISPLAY BROUGHT HERE FOR GREAT SMOKY PARK Miniature Airship Built Around Auto Trailer Makes Tour of Eastern U. 8. A 40-foot miniature airship, built around an automobile trailer, is visit- ing Washington today to publicize the Great Smoky Mountain National Park and the resorts and scenic attractions of Western North Carolina. The trailer, now making a tour of the East- ern United States, is sponsored by the Chambers of Commerce of 34 North Carolina cities and towns. The trailer is covered with zeppelin cloth and contains a display room for pictures of the mountain park and the products of native mountain craftsmen. The trailer is parked on Pennsylvania avenue between Twelfth and Thirteenth streets and is open for public inspection. Free literature dealing with the park and resorts is being distriputed. The exhibit is to leave Washington tonight for Balti- more and Northern Cities. _ Movie Receipts Recover. Attendance at motion picture the- aters in Uruguay is back to the 1930 Debates social security bill Ocean Mail Committee charges ship subsidies led to “saturnalia.” House: Considers A. A. A. amendments. TOMORROW. Senate: » May debate seating of Senator-elect Holt, West Virginia Democrat, who Sought by A. A. A. By the Associated Press. Secretary Wallace, in a letter to all | members of the American Newspaper | Publishers’ Association, has asserted that the proposed A. A. A. amend- ments do not contain any authoriza- tion for a processing tax on news- print. The farm act legislation, now be- sion, he added, either to regulate ad- vertising or to interfere with the use of private brands on food labels. The Secretary’s letter, dated June 15, was not made public at the Department of Agriculture. In it, however, Wallace said a bulletin issued by the American Newspaper Publishers’ Association “indicates” led to believe” that the A. A. A. amendments “would harm newspaper advertising and would also increase { prices of newsprint paper.” If members of the A. N. P, A. de- sired them, he said, he would have no objection to amendments spe- cifically to exempt newsprint from a processing tax and to specify that nothing in the act should be con- strued as giving any authority to regulate advertising. The purpose of the proposed amend- ments, he wrote, “is to bring further increase in the purchasing power of agriculture, and the only effect of the amendments upon newspaper ad- vertisingewould be to assure continu- ance of the increased newspaper ad- vertising lineage, which already has resulted from increased farm buying in the past two years.” —s FOUR FEDERAL UNITS ASK $318,546 TOTAL Library of Congress Seeks $57,380 to Help Index Publi- cations. Application was made today for a total of $318,546 for projects of the Library of Congress, General Land Office, Bureau of Standards and the Securities and Exchange Commission, to be spent in the District of Columbia, with a portion going to New York City. The application was made to the division of applications and informa- tion of the works program. The Library of Congress asked for $57.380; the Land Office, $44,860; the Bureau of Standards, $50,000, and the Securities and Exchange Commission, $166,306. The Library of Congress asked for its fund to care for checking, collating, will be 30, the constitutional age for Senators, tomorrow. Finance Committee holds executive meeting on several bills. Banking and Currency Subcommit- tee meets in executive session on printed books and pamphlets, 1,100,000 maps and charts, 1,100,000 musical compositions, 500,000 prints and mil- of uscripts. fore the House, contains no permis- | that some of its officials have “been | NEW BILL READY INT.V.A.INPASSE Drastic Concessions Made to Foes of Proposed Expansion Plan. By the Associated Press. A new Tennessee Valley Authority bill carrying drastic concessions was completed today by a special House | Military Affairs Subcommittee in an | effort to break a protracted deadlock over proposed expansion of the ad- ministration’s huge Tennessee Valley | program. The new draft was prepared by Chairman McSwain and Representa- tives Montet, Democrat, of Louisiana, and Schaefer, Democrat, of Illinois, for introduction today. The compromise plan would keep T. V. A's bond issuing capacity at the present $50,000,000. A Senate- | approved measure, which the com- | mittee tabled a month ago by a 13- to-12 vote, proposed to raise the amount to $100,000,000. In addition the compromise would: Place T. V. A. under the strict auditing of the General Accounting Office after January 1, 1936. Provide that the Authority cannot acquire private utility properties with- out first attempting to agree on a “satisfactory price.” After such an attempt condemnation proceedings could be instituted. Specify that after July 1, 1938, the agency shall not sell any surplus power or chemicals below cost of production. Require T. V. A, to make frequent reports on all phases of its operations to Congress and also to the Federal Power Commission and State utility agencies. 3 Permit T. V. A. hereafter to pass on all plans for dams and appur- tenant works for flood control and navigation on the Tennessee River and its tributaries. TWO-THIRDS COURT VOTE IS MOVED BY NORRIS By the Associated Press. Striking at five-to-four decisions by the, Supreme Court, Senator Norris, Republican, of Nebraska yesterday in- troduced in the Senate a constitu- tional amendment to prevent that tribunal from ruling congressional acts unconstitutional except by more than two-thirds majority and where ac- tions have been brought within six seemed anxious to take care of him, | | won't find out much, because there IN MITCHELL ROW Merchant Maring Policy " Linked to Charges by Ousted Official. BY G. GOULD LINCOLN. merce, the operation of the United States Shipping Board Bu- reau under the direction of Secre- tary Roper, raise the following issue: 1s the United States Government intent upon building up a privately owned and operated American mer- chant marine? Mr. Mitchell has laid particular emphasis on what has been done with the Leviathan in his attacks upon Secretary Roper and others in the Department of Commerce. A great deal probably will be heard of the lay- ing up of this vessel before the vari- ous investigations now being made into the Mitchell charges have been Insists Penalties Due. Mitchell insists that the failure of the United States Lines to live up to a contract to keep the Leviathan in commission for five years, after recelving a Government subsidy of $3,000,000, should have brought about the imposition of the penalties pro- vided under the contract. These penalties would have compelled the company to pay to the Government upward of $2,000,000 and would have turned all the ships over to the Gov- ernment. It was shown that the shipping company was losing $500,000 a year on the operation of the Leviathan. Further, the company urged its wil- lingness to build a new ship to take the old Leviathan’s place. Secretary Roper, having recommended to the President and to Congress new ship subsidy legislation, held up a suggest- ed loan to the company to help with the construction of a new vessel, at least until Congress should have acted or failed to act on the new shipping bill at the present session. In the meantime a contract was entered into with the company permitting the lay- ing up of the Leviathan with the agreement that $500,000, the loss for one of the two remaining years of the contract to operate that vessel, should be paid to the Government. Millions Spent on Marine Policy. ‘The contention is made that to have done what Mitchell says should have been done—compel the comany to operate at a loss or to suffer the heavy penalties carried in the contract— would have been to hamstring this shipping company, operating under the American flag. The Government has been at pains to spend millions of dollars since the World War in its effort to encourage a permanent overseas American merchant marine. In its effort to foster the merchant marine, the new contract with the United States Lines regarding the Leviathan was entered into. Assistant Secretary ¢f Commerce, the United States Shipping Board Bureau came under his direction, along with the Bureau of Air Commerce and | the Steamboat Inspection Service. He | was relieved of the supervision of the Shipping Board Bureau, however and it was placed directly under Secre- tary Roper. The report is to the effect that when Henry H. Heimann ‘was appointed director of this bureau he was unwilling to tske the place if the bureau was to be under the supervision of Mitchell. Anyway. Hei- mann became dircctor and the bureau was taken away from Mitcheil. Hei- mann is said w nhave made a good record as director and to have col- Jected for the Government some $800,- 000 from shipping companies to which the Government was entitled. Mitchell Early Roosevelt Man. Mitchell was disgruntled because the Shipping Board Bureau was taken from his direction, it is said. One of the chief charges made against him | appears to have been that he was of an inquisitorial turn rather than an administrator and that he was cis- rupting the service. When President Roosevelt was a | candidate for tas Democratic presi- | dential nomination, Mitchell was early | aboard the bandwagcn. He assured the President and Chairman James A. Farley of the Democratic National Committee and Secretary Roper that e would work to deliver the Missouri delegation to Rooseve't at the national convention. After former Senator James A. Reed had bad a compli- mentary vote at the convention. the delegation did swing to Rooseveit. Some of the delegates, however, in- sist that they had Roosevelt for a second choice from the start acd that Mitchell had notning to do with the delivery of the vote. After President Roosevelt had been inaugurated Mitchell turned up in Washington. His desire, it is said, was to be appointed to a foreign post in the diplomatic corps. Mr. Farley, however, could not or did not find a place for him. Finally Secretary Roper took him on as an Assistant Secretary in the Commerce Depart- ment. And, from all accounts, there has been considerable grief over that action. Charges No Surprise. The Mitchell charges against the Department of Commerce and its operation did not come as a surprise to a number of persons in Washington. They had been talked about for some time in informed circles. Missourians here, acquainted with the political record of Mr. Mitchell, say they are not at all surprised that he has fallen out with the Roosevelt administration. He has always claimed to be a Progressive and it was as such that he supported Roosevelt in 1932. At one time or another Mitchell has fallen out with many of the Demo- cratic leaders in his own State. The list includes the late Scnator William J. Stone, who in 1896 managed the campaign of “Silver Dick” Bland for the Democratic nomination. Bland was Mitchell's brother-in- lsw. Mitchell had trouble with the late Speaker Champ Clark and is not now on good terms with Champ Clark’s son, Senator Bennett Clark. He has a feud, too, it is said, with former Senator Reed. Attention was called today to the fact that Mitchell did not confine his attack to the Department of Com- merce, where he had been serving, but said “it is unfortunate, but none the Earlier in Mr. Mitchell's service as | Girl Entering Car Killed by Charge of Broken Power Line By the Associated Press. BROOKLINE, Mass., June 18. —Jeanette Gow, daughter of Col. Charles E. Gow, forme:r post- master of Boston and widely known engineer, was electrocuted early today as she stepped into her automobile. A broken electric light wire had dropped near the car, police said, and the gurrent reached the ve- hicle through a puddle of water. FAR EAST CRISIS RELIEF REPORTED Japanese Announce Stage of Amicable Negotiation Is Reached. (Copyright. 1935, by the Associated Press.) TIENTSIN, China, June 18 —Japa- nese military officials announced to- night that the Sino-Japanese crisis in North China had “reached a stage of amicable negotiation.” Maj. Gen. Kenji Doihara, director of the Special Service Division of the Japanese Kwantung Army, announced that the Changpei incident, involving | the arrest of several Japanese, had been settled, mainly through the dis- missal of Gen. Sung Cheh-Yuan, gov- ernor of Chahar Province. Tientsin Forces Cut. Meanwhile the veteran Japanese troops of the Tientsin garrison de- parted for Tangku, reducing the local forces to their normal strength of about 800. Chinese troops also continued to | withdraw in great numbers. Tokio’s continental war officers as- serted, however, that their forces are in their heavy concentra- | tion along the Great Wall as a “pre- cautionary measure.” Japanese sources, denying reports | that they planned “drastic action,” ex- pressed belief that thz Changpei inci- | dent—the arrest of three Japanese secret service men—would be settled | peacefully. Setilement Desire Seen. “Sung Cheh-Yuan (removed today as Governor of China’s Chahar Prov- ince) appears sincerely anxious to settle the incident through concili tion,” said Lieut. Col. Y. Ishii, chief | of staff of Japan’s Tientsin garrison. (A dispatch from Changchun to | Rengo, Japanese news agency, re-| ported that Japan's Kwantung army | had agreed to settlement of the inci- dent, with Chinese acceptance of | Japanese demands for an apology and punishment of responsible offi- cials.) The Japanese forces withdrew from Tientsin, having completed their one- year tour of duty in North China and | been replaced by fresh men. They were cheered loudly by local Japanese | as they marched away to entrain for ‘Tangku. Of the Chinese troops. the govern- ment division in Peipirg started to | move out of the province, although another division at Pacting had not yet been transferred tc the South. The army of Gen. Yu Hsueh-Chung is | expected to be evacuated before June 26. Japanese Watch Movement. The Japanese militarv watched the Chinese troop operations closely, three airplanes flying freely over the prov- ince from Tientsin. A new step toward closer contact between North China and the Japa- nese-sponsored empire of Manchukuo was taken simultaneously with an- nouncement that telephone service will be inaugurated July 1 between Tientsin, Peiping, Mukden and Dairen. Japanese military leaders, mean- while, expressed concern over the ex- tended absence from North China of Gen. Yo Ying-Chin, Chinese war min- ister, who was conferring at Nanking with Nationalist government officials. In the event of any untoward in- cidents here, the Japanese said, they | would have no one with whom to negotiate. Both Factions Silent. Although Japanese advices from Changchun said the Changpei inci- dent had been settled, both Chinese and Japanese sources here declined to comment on the situation. Vernacular newspapers asserted that, although this incident may have been settled, “Chahar matters as & whole are not settled as Japanese demands for settlement of general questions there have not yet been an- swered by the Chinese.” The newspapers said further Sino- Japanese negotiations would be re- quired for settlement of the issues. Japanese sources here and at Pei- ping said they had received no infor- mation concerning Japanese advices that shooting skirmishes had occurred on the Jehol-Chahar frontier. BANDIT RAID REPORTED. 400 Chinese Rob Gold Field, Japanese Advices State. TOKIO, June 18 (#)—The Harbin correspondent of Rengo (Japanese) News Agency reported today that 400 “Chinese bandits” had made a daring raid on the Tayuchang gold field, belonging to the Manchuria Gold Mine Co, near Ningkuta, and had escaped with gold valued at 20,000 | yuan ($8,000). | A.B.C. BOARD HEARS GINGHAM CLUB CASE Imported Waitresses Blamed by Childs for Alleged Liquor Law Violation. ‘The confusion of Shrine week and the unfamiliarity with District regu- lations of waitresses imported from New York were advanced today by representatives of the Gingham Club, operated by the Childs Restaurant Co. on Pennsylvania avenue, in answering a charge before the Alcoholic Bever- age Control Board that liquor was sold to an intoxacted man. RESCUE OF FRANC CAUSES COMMENT § U. S. Action Seen as Pos- sible Move for World Cur- rency Stabilization. By the Associated Press. Possibilities of world-wide cur- rency stabilization became the sub- ject of renewed comment today as students of international finance di- gested the news that the United States Treasury had come to the aid of France and its beleagured franc during the past month. The nature of the transaction was carefully guarded—except for the fact that a “great many millions” were in- volved—but its implications became an immediate topic of speculation. Averted Monetary Crisis. Yesterday at Basel, Switzerland, Jean Tannery, governor of the Bank of France has so graciously said of France, announced publicly that Secretary Morgenthau’s “broad under- standing of the situation” -and his supplying of American dollars, had averted a monetary crisis in that country late last month. Morgenthau, questioned at his press conference, termed his action simply cne of “common decency between na- tions” and said he would rest his case on “what the president of the Bank about me.” He reiterated, however, that the Treasury is adhering to its old pol- icy of operating on a “24-hour basis as far as monetary policy is con- cerned.” “We try to meet the situation as | best we can each day,” he said. Bank Exhausts Aid. Morgenthau disclosed that the Treasury had stepped into the French breach after the Guaranty Trust Co. of Paris had exhausted its aid in keeping the exchange rate in France from getting out of hand. The operation was reported in some ,cu’cle.s to have consisted simply of America supplying dollars to France with which to buy francs, being paid for the dollars in gold. Morgenthau disclosed that immediately after the operation he had advised Chairman Pittman, Democrat, of Nevada, of the small Foreign Relations Committee of the Senate, as well as the minor- ity leader, Senator McNary, Repub- lican, of Oregon, both of whom, he | said, approved the action. HABEAS CORPUS WRIT IS GRANTED MOONEY California Supreme Court Recog- nizes Perjury Claim of Life Prisoner. By the Associated Press. SAN FRANCISCO, June 18.—Tom Mooney's long battle for freedom en- tered a different legal channel today after his cry of “perjury” had been accorded judicial recognition for the first time. ‘The California State Supreme Court yesterday granted a writ of habeas corpus, which had been sought by Mooney in a petition charging his conviction of the 1916 San Francisco Preparedness day bombing was ac- complished through perjured testi- mony. Issuance of the writ was hailed by | George T. Davis of his counsel as a “notable victory.” He said the deci- sion threw the case wide open. Davis declared the burden of proof was shifted by the Supreme Court's action from Mooney's shoulders to those of State’s Attorney General U. S, Webb, who is expected to resist this tatest move in the former iron mold- er’s long fight for freedom. ‘The writ, made returnable June 27, directed Warden James J. Holohan of San Quentin Prison, where Mooney is serving a life term, to show cause why the gray-haired convict should not | be released. SEEKS LOWER TARIFFS Fairfax Man Urges Farmers to | Use Processing Tax to Gain Cut. ATLANTA, June 18 (#).—A sug- gestion that farmers of the South use the processing tax as a means of forc- ing tariff reductions was made last night by Francis P. Miller of Pair- fax, Va., secretary of the Foreign Policy Association, in an address be- fore the Southern Institute of Inter- national Relations. “The hundred-year-old struggle of the agricultural South for a balanced economy with American industry is on the verge of being won,” Miller said, “if the farmers capitalize the advantages they have gained under the A. A. A. program.” TRAFFIC TIPS by the NATIONAL SAFETY COUNCIL Parking Sins. Parking accidents furnish an im- portant contribution to the motor ve- hicle death and injury toll. Also care- less parking gums up the traffic flow and adds to the confusion on our highways. Here are the most com- mon sins of the careless parker: 1. In his usual hurry, he parks too far from the curb. On narrow streets such action invites hes and just about spoils one lane traffic. 2. Quite often, at night, he turns off his lights, increasing the danger of collision. 3. Frequestly he double-parks, which is unfair and in most communities, forbidden. 4. He parks too close to intersec- tlons, obstructing the vision of both motorists and pedestrians. 5. He gets .ut on the left-hand side curb side of his car.