Evening Star Newspaper, June 19, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy, preceded by light rain this aft~ ernoon and possibly early tonight; tomor- row fair, slowly rising temperature. Tem- peratures—Highest, 95, at 3:45 p.m. yes- terday; lowest, 62, at 5 a.m. today. Full report on page A-3. Closing N. Y. Markets, Pages 17, 18, 19 No. 33,286. SENATE APPROVES CLARK'S PLAN FOR PRIVATE: PENSIONS BYVOTEOF 51 T0 35 Administration Forces Meet . First Defeat on Social Se- | curity Bill—Fear Federal System Jeopardized. FINAL VOTE EXPECTED ON MEASURE TODAY Letter From A. F. of L Head Opposes Permitting Industries to Have Own Systems—Sums Must Match Government Fig- ure Under Plan. BY J. A. O'LEARY. By the decisive vote of 51 to 35, the Senate this afternoon adopted the Clark amendment to the social se- curity bill to permit cxemption from old age pension pay roll taxes of in- dustries that operate their own retire- ment plans. It was the first serious defeat the administration forces have suffered in connection with the security bill. They had urged the Senate not to adopt the amendment on the ground that it might jeopardize the success of the Federal contributory old age annuity system, if individual indus- tries could remain cut of the Fed- eral system by operating their own plans, When the bill reaches a final vote, probably late today, however, it is expected there will he a large ma- Jority in favor of its passage. Senator Clark, Democrat, of Mis- souri emphasized that his amendment Tequires companies to have a plan at least equal to or better than the Gov- | ernment plan in order to get the ex- emption, and in his closing speech he called attention to the large num- ber of private plans that already give more generous treatment than the pending bill. Barkley Hits Amendment. In a final attack on the amend- ment, Senator Barkley, Democrat, of Kentucky paraphrased the words of Abraham Lincoln by contending that the old-age pension system cannot endure “half public and half private.” Senator La Follette, Progressive, of ‘Wisconsin, another opponent of the Clark amendment, read a letter from President Green of the American Fed- eration of Labor urging defeat of the amendment. The Clark amendnient would allow companies to apply to the Social Se- curity Board for permission to op- erate their own plan of old-age retire- | ment. If the application was ap- proved, the industry would be ex- empted from the tax, amounting to 3 per cent from the employes and 3 per cent from the employer, which is car- ried in the bill to finance the Federal plan. The exempted employer would be required, however, to put into the private plan as much as he would have pald in the Federal system, Clark said. The Clark amendment developed into the main controversy after the bill was taken up in the Senate. It led to an entire day cf debate yester- day, in which supporters urged Con- gress not to sweep aside voluntary private plans that have been func- tioning for a long time. The Senate also will take up the controversial committee amendment which would sllow the Treasury to sell old-age annuity insurance tc in- dividual citizens in th» form of bonds. If this section stays in, the bill will contain three distinct forms of old- age security. Direct Grant to State. The first is the direct grant to the State to match, up to $15, whatever the State pays as a gratuity fo those already at retirement age. Tne sec- ond is the contributory pension sys- tem, to be built up for ¢hose ncw at work, by a 3 per cent tax on workers and a 3 per cent tax on their em- ployers. This is the section in which Senator Clark is seeking to preserve private pension plans. Another amendment to be disposed of this afternooa i the proposal of Benator Borah, Republican, of ldaho to increase above $15 the Federal grant for old-age gratuities in States that are unable to raise their half of a $30 payment. Under the Borah amend- ment. if a State raised $5 per indi- vidual. the Federal Government could contribute $25. The Clark private retirement amendment was cupported in toe de- Democrat, ; Tydings, Democrat, of Chsirman Harrison ot the Finance Committee, Senator Wagner of New York, sponsor of the security bill; Senator La Follette, Wisconsin Pro- gressive, and others, ————— e EFFECT OF ALCATRAZ ON PRISONERS PRAISED Banford Bates Says “Things Are Quieter” at Atlanta and Leavenworth, Banford Bates, director of the Fed- Entered as second class matter post office, Washington, D. C. Initial Abduction Execution Decreed Under Federal Act Southwest Outlaw Will Die for Kidnaping Two Officers. By the Associated Press. MUSKOGEE, Okla., June 19.—The first execution under the Lindbergh kidnaping law was decreed today by Federal Judge R. L. Williams, who sen- tenced Arthur Gooch, Texas and Ok- lahoma outlaw, to die Friday, Septem- ber 13, for kidnaping two Paris, Tex., officers last November. ‘The death penalty was recommend- ed by a Durant jury at the close of Gooch's trial on the kidnaping charge. Asked if he had anything to say be- fore sentence was passed by Judge Williams, stern jurist who criticized a jury two days after Gooch's conviction for not asking death for a bank rob- ber, Gooch replied: “I think there have been worse crimes thag mine and I don't see why 1 should hang.” Judge Williams replied: “That’s your only argument * * ¢ but other juries have been cowardly.” JAPAN ABANDONS CAMPAGN PLANS Action Follows Yielding of China on Demands and Troop Removal. (Copyright. 1935. by the Associated Press:) TIENTSIN, China, June 19.—The Japanese military was reported today to have apparently renounced any plans for armed action in China as a result of the Chinese goverment’s capitulation to far-reaching North China demands. Japanes: spokesmen inferred that China, by dismissing Sung Cheh- Yuan as governor of Chahar Prov- ince and ordering the 132d Chinese division to evacuate the province, had brought issues there “to the stage of amicable settlement.” [The correspondent of Reuters, British news agency, 1eported that even extremists among the Japanese war officers appeared satisfied—for the time being, at least—by the set- tlement ard apparently had foregone any idea ct armed activities. Operation Need Doubted. [A high government spokesman ex- pressed confidence at Tokio that the crisis would pass “without the neces- sity of military operations by the Jap- anese army in Chinase territory.”] Japan’s “Lawrence ol Manchuria,” Maj. Gen. Kenji Doihara, announced these major terms of the settlement and said & final agreement would be reached at Kalgan, near the dcene of the Changpei incident, one of North China’s sorest spots, arising from the arrest of several Japanese. Despite these harbingers of peace, the chatter of machine guns b¥pke out today in the Japanese concession, about whkich barbed-wire barriers have been thrown up by naval forces. Part of Maneuvers. Authorities announced, however, that the shooting was only part of “maneuvers” being neld by Japanese bluejackets from visiting destroyers, and that the exercises would continue for several days. In the place of the ousted Gen. Sung, the Nanking national govern- ment named Civil Commissioner Chin Teh-Chuan as acting governor of Chahar Province. STATE DEPARTMENT’ CAUTIOUS. Varying Reports Cause Cpre in Plan- ning Move. Secretary Hull said yesterday that the State Department had received no new information concerning the Sino- Japanese situation which would war- rant comment. Varying reports from Peiping, Tien- tsin, Shanghai, Tokio and London have only served to increase State De- partment caution in its approach to the question of what, if any, diplo- matic moves might be made in critical situation resulting from Japanese de- mands in the North China sector, U. S. EXPENDITURES PASS $7,000,000,000 New Peace-Time High Still Is Under Roosevelt’s Estimate for Financial Year. By the Associated Press. Federal expenditures since last July 1 have pased the $7,000,000,000 mark, representing a new peace-time high. Today’s Treasury statement, cover- ing operations through June 17, showed total expenditures of $7,000,~ 667,641, Expenditures during the comparable period last year were $6,729,318,049. It was evident, however, that Pres- ident Roosevelt’s expenditure estimate for the financial year will not be reached. His annual budget message provided for expenditures of $8,581,069,026 through June 30, 1935. _Ch ‘WITH SUNDAY MORNING EDITION ¢ Foening Star WASHINGTON, D. C, WEDNESDAY, JUNE 19, 1935—THIRTY-EIGHT PAGES. PRESIDENT FAVORS HOLDING COMPANY CLAUSE IN BILL Expresses Opinion as House Group Recommends Drastic Revision. AMENDMENT WOULD GIVE S. E. C. POWER Roosevelt Says Senate Provisions Eliminating Utilities Structure Would Avoid Evils. By the Associated Press. Approval of the controversial sec- tion of the utilities holding company bill providing for eventual elimination of holding companies not in adjoining territory was voiced today by Presi- dent Roosevelt. He spoke at a press conference al- most at the same time that a House Interstate Commerce Subcommittee recommended to the full committee a substitute measure drastically amend- ing the provision of the Senate bill for abolishing this type of holding companies. Under the amended bill, the Securi- ties and Exchange Commission in general could require each holding company system to “confine its op- erations to one integrated public utility system.” A statement issued by the subcom- mittee said that “if the commission finds that such a limitation is not necessary in the public interest, it is to require the limitation of the op- erations of the holding company system to such number of integrated public utility systems as it finds may be included in the holding company system consistently with the public interest.” The Senate-approved bill for which the subcommittee hoped to substitute | U | the prison officials announced they its version contains the controversial abolition feature but provides that final arbitrary dissolution does not have to be accomplished until 1942, Tax Provision Inserted. Another variation from the Senate measure proposed by the House group was a provision that holding com- panies, all of which must register with the commission, will have to pay, after December 31, 1937, corporation income tax on 15 per cent of any dividends received from subsidiaries or other holding companies or their sub- sidiaries. This was viewed as a concession to Representative Pettingill, Democrat, of Indiana, who has held out, through the long weeks the subcommitte wrestled with the measure, for a 2 per cent tax applying to dividends received by each company from another company in the group, with a view to discouraging pyra- mided set-ups.:” Chairman Rayburn of the full com- mittee hopes the measure may be re- ported to the House by the end of this week. There was every indication that, with President Roosevelt not hav- ing receded from his abolition stand, efforts would be made to put the so- called “death sentence” clause back in the bill. Intrastate Unaffected. In response to an inquiry at his regular press conierence, the Presi- dent emphasized that the legislation which has been iocked in the House Interstate Commerce Committee did not affect intrastate companies, such as the Public Service Corp. of New Jersey and the Niagara Hudson Co. in New York. He went on tc explain what he | termed evils which he hoped to elim- inate by the legislation. He referred (o the Associated Gas & Electric Co. and a chart represent- ing an organization of this type e said the chart would show per- haps 100 little circles at the bottom of the sheet—onerating companies. Most of these companies, he said, were preperly capitalized and making money, for instance, $7 on a $100 investment. This $7 return, ne said, then goes up in a zig-zag course on the chart through perhaps as many as 3,300 circles—representing the intermediate holding companies, thc suppiy com- panies, the financing companies and the like. On the way up, he said, this $7 is milked all along the line, so that when it gets to the top holding company, if lucky, it represented about $4. To Eliminate Firms. The objective, he emphasized, is to eliminate intermediate companies so that when the $7 gets to the top it will be somewhere near $7. Again he emphasized no objections to holding companies which represent operating companies in adjoining ter- ritory, but he asserted that when these holding comparies related to busi- nesses scattered over & wide ares, they became investment companies. In response to inquiry, Mr. Roose- velt disclosed he would not object to NOTERS SUBDLED 1S PRISON GLARDS END MINE MUTINY Convicts Surrender After Officials Brave Smoke to Reach Them. BARRICADE SET UP BY STRIKERS BROKEN k4 Rebels and Hostages Unhurt De- spite Day and Night of Under- ground Skirmishes. (Copyright. 1035, by the Assoclated Press.) LANSING, Kans, June 19.—A score of officers and guards led by ‘Warden Lacey Simpson subdued 300 rioting convicts early today in the inky darkness of the Kansas State Prison coal mine and ended a de- structive 21-hour mutiny. Soon the first lift load of mutineers, sheepish, bedraggled, came to the sur- face and they marched past a line of heavily armed prison, county and State highway officers to their cell block 60 feet away. In 35 minutes the evacuation of the 730-foot mine level, where the riot occurred, was complete, Only a half dozen guards remained below to check the damage wrought in the convicts’ rage. Termination of the day and night long mutiny was accomplished with- out injury to guards or convicts and even the 19 frightened mules kept below to haul coal cars were reported unhurt. “We had a hell of a time breaking down a door barricade. That's what took us so long.” said Simpson as he came yp at 3:30 to announce the riot was efided. Bloodshed Averted. Not only was the mutiny quelled without bloodshed to man or beast, but had made no concessions to the three demands of the rioters. “We don't owe them a nickel,” de- clared T. W. Woodward, member of the Prison Board of Administration. The more than 300 prisoners had demanded better prepared food, the discharge of Dr. David F. Parker, prison physician, and immunity for their action. The prison guards and other officers used smoke from a fire started by the convicis themselves as their chief weapon of attack. i Started in the mulé barns, the fire was. fed by hay and timbers in an effort of the rioters to drive armed guards away from the strategic gun cage near the base of the air shaf:. This would have given them control of the entire subsurface. They had food and water that had been smug- gled down a little at a time. By reversing the ventilator fans, officers turned the heavy clouds of black smoke upon the rioters and sent them scurrying in disordered groups to the far corners of the 4 miles of pitch-black corridors. Blocked by Door. Protected by gas masks, and bearing flares and electric torches fastened to their clothing, members of the attack- ing party descended without incident, but found their path blocked by a heavy double door which separated the air shaft from the main mine shaft. It had beer bolstered by iron rails E:: the car tracks and heavy tim- As it was battered down the officers saw a group of convicts walking to- ward them, their hands in the air. Others followed and the mutiny was over. The armed guards and officers pre- ceded the convicts up the small lift of the air shaft. The snain shaft elevator was incapacitated. A half dozen of the mine guards (See MUTINY, Page 5.) —_— SENATOR GLASS GETS YALE HONOR DEGREE Virginian Is Presented at Exer- cises as Dauntless Leader of Public Opinion. By the Associated Press. NEW HAVEN, Conn. June 19— Senator Carter Glass, Democrat, of Virginia, presented as “a dauntless leader of the independent force of in- telligent public opinion,” received the honorary degree of laws today from Yale University. ‘The Virginian, who served as Secre- tary of the Treasury under President Wilson, was one of the 11 persons on whom Yale conferred honorary de- grees at its 234th commencement. De- grees in course were received by 1,122 Sproul of Berkeley, Calif.; doctor of letters, Charles McLean Andrews of New Haven, Farnan professor of American history, emeritus, of Yale, and winner of the Pulitzer prize for American history, Readers’ Guide Mallon ....oaas aasnany HOPKINS APPOINTS AIDE ICKES FIRED Widening of Rift Is Seen. Roosevelt Limits P. W. A. Contributions. s By the Associated Press. Indications of a widening rift be- tween Harry L. Hopkins, the works progress administrator, and Secretary Ickes. administrator of public works, were seen by Capital observers today in the appointment by Hopkins of a man Ickes had discharged in 1933. The appointee is. Harry S. Berry of Nashville, State works progress ad- ministrator for Tennessee, who was dismissed as P. W. A. engineer for Tennessee after Ickes had asserted he made undesirable interpretations of P. W. A. plans. ' Hopkins is the key man in the new ‘work-relief program. Ickes, although a member of the important Allotment Board for distribution of the $4,000.- 000,000 fund, is regarded generally as having been given a less important place in the new work-relief set-up. Contributions Limited. The disclosure that one of his former aides had been taken on by Hopkins came shortly after President Roosevelt ordered that the maximum work-relief contribution on State and municipal P. W. A. projects should not exceed 45 per cent. It was expected in informed quar- ters that this would make it difficult to allot the entire $900,000,000 author- ized for such activities by the work- relief act. In an effort to save as much as pos- sible of his P, W. A. program, Ickes said yesterday some loans for the remaining 55 per cent would be made available from the P. W. A. revolving fund in instances where communities could not supply it from their own funds. $880 Left Per Man. President Roosevelt stated today that on the basis of present segrega- tions of the $4,000,000,000 work-relief fund there is left only about $880 per man for remaining projects, including cost of material and wages. ‘This estimate is on the assumption that the $1,800,000,000 so far segre- gated will be actually allocated and spent. pellelnwhfle Hopkins today called State progress administrators to their final meeting. The North Carolina State public works administrator, Dr. H. B. Baity, joined contractors in asserting that many useful projects could not be carried out with the average of $1,100 per worker which has been set for the bulk of the work. Insist Projects Useful. Hopkins' assistants, asserting that “simple arithmetic” was enough to thow that funds were not available for expensive projects any more than for & higher wage scale, insisted mean- while that projects would be “useful” despite their lower cost. Although the primary purpose is to put 3,500,000 now on relief rolls to work, they estimated that $1,500,000,- 000 in matérials would be required, making possible much more substan- tial projects than those under the Civil Works Administration. Requests by the Bureaus of Coast and Geodetic Survey and the Geolog- ical Survey for $807,000 to map met- ropolitan areas of Denver, - lis, St. Paul, Cleveland, Detroit and Pittsburgh were made public. PRESIDENT TO SEND SPECIAL MESSAGE Considers Plan, but Declines to\ Reveal Subject—Bank The only evening paper in Washington with the Associated Press News and Wirephoto Services. FHF ARE WE BEING VINDICATED --YOU BET Chain T elegrains Bring $3,600,000 Western Union Suit ‘Informer’ Claims Half Under Gaming Law of 1877, By the Associated Press. TRENTON, N. J, June 19.—The Western Union Telegraph Co. was sued today in Supreme Court for $3,600,000 on the ground it violated gambling laws by sending “chain” telegrams. The suit was brought by William F. Zwirner of Merchantville as a “com- mon informer” under the gambling laws of 1877. Under this law the in- former receives one-half the penalties and the county the other half. Zwirner alleged that the telegraph company on June 7 accepted 200 “chain” telegrams at Camden and that approximately 200 more were ac- cepted each day between June 8 and June 15. MOVE FOR HIGHER TAXES LAUNCHED Effort to Increase Rates by Nuisance Levy Amend- ment Forecast. By the Associated Press. Definite moves were afoot in the Senate today to boost Federal revenue by tacking higher income and other taxes to the $501,000,000 “nuisance” tax bill now before the Senate Pinance Committee. Among those advocating increased levies were Senators Connally, Demo- crat, of Texas; Long, Democrat, of | Louisiana and La Follette, Progressive, of Wisconsin. The attitude of Presi- dent Roosevelt was uncertain. Chairman Harrison, Democrat, of Mississippl, of the Senate Finance Committee, which moved to consider the “nuisance” tax measure in execu- tive session today, said he would confer soon with the President to get his views. He intimated strongly a week ago that higher taxes were in prospect. Morgenthau May Testify. Secretary Morgenthau or some other Treasury representative planned to appear before the committee. Not long ago—when the soldier bonus was being considered—Morgenthau proposed stiff inheritance taxes to foot the bill. One administration leader said privately he understood Mr. Roosevelt would like to see such inheritance tevies—estimated to return $300,000,000 to $600,000,000 a year—approved. Delay to Be Costly. One obstacle appeared. Any move to attach higher levies to the $501,- 000,000 bill would almost certainly delay its enactment beyond June 30, meaning a loss in revenue of $1,500,000 a day in “nuisance” taxes. La Follette promised today to offer an amendment calling for income tax boosts “all along the line.” Senator Long said he would propose a capital levy amendment to carry out his “share the wealth” program. Promoter Held in Theft. NEW YORK, June 19 ().—Genaro tleman, a contractor from Lexington, Ky., who charged the man with hav- ln(nolf.nhupurllunkptnvu.ludm at $800. m ? WAGNER MEASURE SPEEDED IN HOUSE as Bill Is Brought Be- fore Chamber. By the Associated Press. The Wagner labor disputes bill was placed before the House today with leaders striving to pass it before nightfall, Chairman Connery, Democrat, of | in language declaring that labor unions shall not coerce workers to join unions or to strike. Rejected by Senate. He sald he did not know from what quarter the proposed amendment would come, but he was virtually cer- before the Senate passed the bill and sent it to the House. The bill, which carries an admin- istration “must” label, would estab- tions Board, outlaw “company-dom- inated” unions and set up other legal provisions which the bill's sponsors hold necessary to safeguard the right of collective bargaining. The Labor Committee has written in provisions intended to shelter the bill under the interstate commerce clause of the Constitution. Only after administration leaders turned on the pressure did the Rules Committee clear the way yesterday for the bill to reach the floor. A number of committee members said they felt the bill still was unconstitutional. Two Amendmenis Planned. Representative Marcantonio, Re- publican, of New York, was prepared to offer two proposed amendments— one to permit agricultural workers to come within the bill's scope and the other to make the Labor Relations Board an independent Federal agency. The Senate-approved bill provided for an independent board, but the House Labor Committee voted to put it under the Labor Department, INDIANS LEADING NATS, 2-0, IN FIFTH Rain Threatens Postponement, but Play Is Resumed After 20-Minute Delay. By a Staff Correspondent of The Star. CLEVELAND, June 19.—Cleveland was leading the Nationals, 2-0, in the fifth inning of the first game of a double-header here this afternoon. Rain threatened postponement for s time, but after a 20-minute delay in the third inning play was resumed. AT GRILLED BY “G” MEN MIAMI, Fla, June 19 (#).—Three Federal agents, searching out the hid- den trail of $185,000 in stolen gems, fired questions at Charles Cali for four hours yesterday and then sent him back to his county jail cell. Cali, sentenced with Nicholas Mon- tone to serve 25 years’ imprisonment for the Miami Biltmore jewel rob- bery, seemingly Montone has the “G” men reached I patient to Talk to Darling, Visitor Resorts to Turkey Call grew weary of getting the usual run- from secretaries and sub- secretaries. So Dennison sounded the call, to the amazement of (P) Means Associated Press. Passage by Tonight Is Aim! Massachusetts, of the Labor Commit- | tee sald, however, that a fight was | developing around a proposal to write | lish a permanent National Labor Rela- | Yesterday’s Circulation, 125,939 Some Returns Not Yet Received. TWO CENTS. MITCHELL ADMITS HE LACKS DIRECT BRIBERY EVIDENCE AT SENATE PROBE Suggests Grand Jury Inquiry Into Possible Criminal Acts in Ship Subsidy Grants by U. S. CORRUPTION IS HINTED, OUSTED AIDE ASSERTS Two - Hour Testimony Before Crowd of 300 Marked by Fre- quent Demands of Probers for New Data Instead of Rehash of Already Known Facts. By the Associated Press, Ewing Y. Mitchell, ousted Assistant Secretary of Commerce, told the Sen=~ ate Commerce Committee today he had no evidence of “direct bribes” in Government ship subsidies, but sug~ gested a grand jury investigation to determine if criminal acts were ine volved in granting millions of dol= lars to private operators. After charging a long list of “ap< pearances of favoritism” by former and present administrations in cone nection with the subsidy program, he sald he would be satisfied if Joseph B. Keenan—Assistant Attorney Gen- eral to whom his charges have been referred—held there was “nothing to prosecute.” Praises Keenan's Ability. He told Senator Vandenberg, Re- publican, of Michigan, that he be- lieved Keenan was a “very efficient man and if we leave it to him we will | get efficient results.” “That would satisfy me, too,” Van- | denberg said. Keenan was sitting quietly close oy. ‘The exchange followed & repetition by Mitchell of his allegation, already made public by him in a letter to President Roosevelt, that the admin- istration had given $1,720,000 to the United States Lines under a contract for retirement of the liner Leviathan. As Mitchell left the stand after more than two hours, to return to- morrow, Senator Fletcher, Democrat, of Florida admonished: “Let's have facts, Mr. Mitchell, not inferences and mere indications.” Mitchell had said just previously he had “never charged graft directly. I have never seen any money passed, but millions in effect have been given away through these subsidies and there is indication of corruption.” Earlier, with Secretary Roper listen- ing closely, Mitchell had repeated charges of maladministration in the Commerce Department. Time and again, Senators asked him to be specific and not go over evidence which already is before Congress from previous inquiries. He said he “knew the Shipipng Board was a cesspool of corruption” before he came to Washington and hsd laid his complaints before the President. The contract entered into by Roper last March for laying up the Levia< than, he insisted, presented to in< terests headed by P. A. S. Franklin, Kermit Roosevelt and Vincent Astor, $1,720,000 as “an unearned part” of | & subsidy providing for penalties fof non-operation of the Leviathan. Charges Arouse Senators. Some of his attack drew sharp de- fense from Fletcher and Senatcl ‘White, Republican, of Maine. These Senators upheld Admiral ¥ I. Cone of the Shipping Board, a sukd ject of Mitchell's criticism. Mitchell told of a contract for opera« tion of an American West African Line, under which the operators, the Bare ber interests, received a loan and mail pay amounting to $414,000, ran the three ships three or four years, turned them back to the Government and got the “full amount” for them. “Those facts were developed by the Black Committee,” observed Chair- man Copeland. “Yes, but why doesn’t Roper do something about it?” Mitchell asked, adding such contracts should be re- ferred to the Justice Department for cancellation. “You don't charge this administra- tion with favoritism in connection with this contract do you?” asked Senator Vandenberg. “No, I do not.” Senator White observed Congress had “directed” the West African transaction. The testimony included charges that the International Mercantile Marine interests had received a “scaling down” of $5,380,000 in their Government contract to operate the Leviathan when they took over the United States Lines in 1931. Senator McNary, Republican, of Oregon, inquired whether Mitchell had “tapped any new sources” of information or if he was merely going over evidence in prior congressional inquiries. “It’s all in the reports, but has been dome about it,” nothing Mitchell replied. “I've been trying to get Secretary Roper to recapture several million dol- lars and see whether any crimes have been committed as in the Teapot Dome scandal.” While scores in the large Caucus Room listened intently, he added it was the Secretary’s duty to lay the evidence before the Attorney General. Meanwhile, at his press conference President Roosevelt said he had ap- proved the arrangement for retirement (Continued on Page 4, Column 1.) Million Left Kiwanis Club.