Evening Star Newspaper, July 2, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) ‘Mostly cloudy tonight and tomorrow; little change in temperature; gentle east- erly winds. Temperatures—Highest, 86, at 3:30 p.m. yesterday; lowest, 69, at 5 a.m. today. Full report on page A- Closing N. Y. Markets, Pages 17, 18, 19 No. 33,299. HOLDING COMPANY MEASURE PASSED IN HOUSE WITHOUT “DEATH SENTENCE" 323-81 Vote Sends Bill Back to Senate — Conference Planned in Effort to Meet White House Objections. USE OF RELIEF AS CLUB CHARGED BY BREWSTER Maine Republican Declares He Was Threatened With Loss of | “Quoddy” Job if He Continuedi to Oppose President’s Plan, and Hoeppel Makes Similar Claim. BY G. GOULD LINCOLN. The House today passed the public | utility holding company bill without | the “death sentence” clause by a vote | of 323 to 81, The bill now goes back to the Sen- ate. That body must either accept the House amendment to the Senate bill or send the bill to conference. It is expected that a conference will be asked. In that conference strenuous efforts will be made to| whip the bill into shape satisfactory to the President. Immediately after the final vote, Representative Brewster, Republican, of Maine, took the floor of the House and declared that he had been threat- ened with the loss of the Passama- quoddy Dam project if he voted against the “death senfence.” Rankin Is Skeptical. When Brewster finished, Repre- sentative Keller of Illinois shouted: *I don't believe it.” Representative Rankin of Missis-! sippi obtaining recognition. declared | he knew nothing of the charge made | by Brewster and added: “If the threat was made, it was not with the consent of the President.” Rankin added that Brewster's vote had been helpful to the power trust. The President suffered another de- feat today at the hands of the House when by a record vote of 257 to 147 that body voted to substitute the House | bill, which does not carry the “death sentence” clause, for the Senate bill, which is preferred by the President. Wheeler Threatens Bill. Threats have been made by Senator | Wheeler of Montana, chairman of the | Interstate Commerce Committee of the Senate, that unless the House | finally agrees to the “‘death sentence” | clause, the bill will be permitted to | die in Congress. If such a course were followed it would mean no hold- | ing company legislation at this ses- i sion of Congress. | Whether the President would prefer to have no legislation or to accept the bill as written by the House and ad- | Justed in conference remains to be seen, In his statement to the House, Brewster said: | “During the ccnsideration of the ‘death sentence’ clause in the holding company bill Thomas G. Corcoran, co- | author with Ben Benjamin D. Cohen | of the bill, came to me in the lobby | of the Capitol and stated to me with what he termed ‘brutal frankness’ that if I should vote against the ‘death sentence’ for public utility holding companies he would find it necessary to stop construction on the Passama- quoddy Dam in my district. Calls Suggestion Repugnant. “Such a suggestion from such a source is repugnant to every instinct of decency in legislation and proper regard for our constitutional oath of office. “During the past two months Mr. Corcoran has been the personal repre- &entative of the President in clearing up the details incident to starting | construction at Passamaquoddy and | only this last week ccastruction really commenced with the arrival at East- port of Maj. Flemming, who is to have charge of the project. “I do not believe the President ‘would countenance any such course if he were fully informed. This state- ment on the floor of the House seems “(Continued on Pi NATIONALS LEADING S0X, 3-0, IN FOURTH Bluege's Double and Manush’s Triple Feature Three-Run Rally in Third. By a Staff Correspondent of The Star. BOSTON, July 2.—A double by Bluege and a triple by Manush fea- tured a 3-run rally by the Griffs in the third inning and Boston was trailing the Nationals at the end of the fourth, 3 to 0. Ed Linke was pitching effectively for the Griffs. Walberg was on the mound for the Red Sox. Readers’ Guide Page. ....B-18 .B-13 .B-13 Amusements . Comics Cross-word Puzzle Editorials Finance .. Lost and Found .. Mallon Radio . Serial Story Service Orders Short Story .. Society .. A-13-14-15-16 Vital Statistics ..A-5 ‘Washington Wayside ...B-10 Women'’s Features ...B-11-12 [ 5. Entered as second class matter post office, Washington, D. C. Ch WASHINGTON, D. C, TUESDAY, JULY 2, 1935—THIRTY-EIGHT PAGES. Fist Fight Marks Inauguration Of Senate Probe of Pearson Former Aide to Governor and Reporter Clash Over Charges. Encounter Takes Place in Lobby of Senate Office Building. By the Associated Press. A fist fight in the lobby of the Sen- ate Office Building today mnlggunted the Senate investigation of " malad- ministration charges agalnst Gov. Paul M. Pearson of the Virgin Islands. The combatants were ideatified by Gov. Pearson as Paul Yates, former administrative assistant to Pearson, and Robert S. Allen, Washington col- umnist and newspaper man. They were taken to the Senate guard room by Capitol police. No charges were placed against them. Witnesses said Yates had a black eye after tangling with Allen outside | the Senate caucus room, where the| hearings began “Allen was the one who introduced | Yates to me when he first came to the islands.” said Gov. Pearson. “Allen has been boiling with rage ever since because of some of the things Yates| did while under my administration.” | Secretary Ickes was present at the! opening session. together with com- ! PAUL YATES. —Unflerwog(t& Underwood. mittee members, headed by Senator Tydings, Democrat, of Maryland. Dr. Ernest Gruening. chlef of the Division | of Islands and Territories in the In- terior Departrent, also was there. Allen is associated with Gov. Pear- son’s son, Drew Pearson, in writing a Washington newspaper column. At the outset, refused a request of Secretary Ickes that he be permitted to start the testi- | mony with a lengthy statement. The somewhat discomfifled Interior Depart- (See’ PEARSON, Page 3.) HOMERS DEFEAT NATIONALS, &5 Dahigren, Miller and Werber | Get Circuit Blows for Red Sox. BY FRANCIS E. STAN. BOSTON, July 2—Home runs by Dahigren, Miller and Werber helped | the Boston Red Sox to victory over | the Nationals here this afternoon in | the second game of a series, The score was 6 to 5. FIRST INNING. WASHINGTON—BIluege struck out. Stone walked. Myer flied to Johnson. Melillo threw out Manush. No runs. BOSTON—Linke tossed out Melillo. Almada walked. Johnson hit into a double play, Bluege to Myer to Kuhel. No runs. Washington, 0; Boston, 0. SECOND _INNING. WASHINGTON—Travis lined to Melillo. Schulte fouled to R. Ferrell. Bolton was easy for Walberg and| Dahlgren. No runs. | BOSTON—Cronin singled to right. | Travis threw out Miller, Cronin taking | second. R. Ferrell walked. Werberl sent a high fly to Manush. Dahigren | forced R. Ferrell, Travis to Myer, No | runs. Washington, 0; Boston, 0. THIRD INNING. WASHINGTON — Kuhel walked. Linke sacrificed and was safe at first when Walberg let his bunt roll through his legs, Kuhel taking sec- ond. Bluege doubled off the left- field fence, scoring Kuhel, and Linke also scored and Bluege went to third when Almada’s throw to third hit Linke in the back and rolled to the grandstand. . Melillo threw out Stone, Bluege holding third. Myer hit to Melillo and Bluege was trapped be- tween third and home and run down, Melillo to R. Ferrell to Werber, Myer going all the way to second on the play. Manush tripled to right cen- ter, scoring Myer. Cronin threw out Travis. Three runs. BOSTON—Walberg fanned. Bluege went into left field for Melillo's fly. Bluege threw out Almada. No runs. Washington, 3; Boston, 0. FOURTH INNING. WASHINGTON—Werber threw out Schulte. Bolton flied to Johnson. Kuhel flied to Miller. No runs. BOSTON—Johnson walked. Cro- nin drove into a double play, Travis to Myer and Kuhel. Miller flied to Schulte. No runs. Washington, 3; Boston, 0. FIFTH INNING. WASHINGTON—Werber threw out Linke. Bluege flied to Almada. Stone singled to right. Myer singled to right, sending Stone to third. It was the twenty-first consecutive game in which Myer has hit safely. Manush tripled to righi, scoring Stone and Myer. Travis fouled to R. Ferrell. Two runs. BOSTON—Travis threw out R. Fer- rell. Werber went out the same way. Dahlgren hit a home run over the left-field fence. Bishop batted for Walkerg and was called out on strikes. ©One run. Washington, 5; Boston, 1. SIXTH INNING. ‘WASHINGTON—Hockette went in to pitch for Boston. Schulte walked. Bolton drove into a double play, Me- lillo to Cronin to Dahlgren. Kuhel fanned. No runs. BOSTON—Melillo grounded to Tra- vis, who threw him out. Bluege went into left field for Almada’s fly. John- son was safe on Bluege’s fumble. Cro- nin forced Johnson, Travis to Myer. No runs. ‘Washington, 5: Boston, 1. SEVENTH INNING. WASHINGTON — Linke was safe when Cronin threw his grounder wild to first. Bluege attempted to sacri- fice, but forced Linke, R. Ferrell to Cronin. Stone beat out a hit to Werber, who made a great stop but could not get the runner at first, Bluege moving to second. Myer popped to Werber. Hockette tossed out Ma- nush. No runs. - BOSTON—Miller hit a home run over the left-center-field wall. R. Fer- rell singled to left. Werber also hit a home run over the left-field fence, scoring behind R. Ferrell. Jack Rus- sell replaced Linke on the mound for Washington. Dahlgren walked. Hock- ette sacrificed, Russell to Myer, who covered first. Melillo dropped a sin- gle in short right, Dahigren going to third, Myer threw out Almads, Dahl- J BLAME IN KILLING LAID ON HILL-BILLY Moonshiner Quails in Court as State Official Says He Shot Policeman. BULLETIN. LEESBURG. Va., July 2.—After old Tom Quesenberry startled the court at 2:20 p.m. today by enter- ing a plea of guilty to first degree murder and throwing himseif on the mercy of the court. Judge Alexander sentenced him to 20 years in the penitentiary on the recommendation of Prosecuting Attorney Galleher. BY BLAIR BOLLES, Staff Correspondent of The Star. LEESBURG, Va., July 2—O0ld Tom Quesenberry, the Dead-Eye Dick of Virginia's hills, fidgeted in his chair in the court hcuse here today when | Clyde Saunders, supervisor of the State Alcoholic Beverage Control Board, said fired the shot which killed Clarence McClary, Alexandria policeman, the | night of March 17. Saunders was smoothly dressed and groomed, in marked contrast to the three witnesses who preceded him on the stand, and told a graphic story of the events which led to Quesenberry’s | arrest and his indictment on a charge of first-degree murder. Saunders was a member of a huge | posse which combed the thickly wooded still, studded hills seven miles from here the day after George G. Kirkpatrick, revenue agent and tradi- tional enemy of the hill billy “moon” makers, was shot in the breast by a still operator ambushed behind a stack of barrels. Certain of Identity. After an all-night search the lead- ers of the posse gathered behind a barn, Saunders said. Three hundred yards away the searchers quarry was firing occasional shots. “Could you identify the man firing the shots?” asked John Galleher, spe- | cial prosecutor for the case. “Yes, it was Tom Quesenberry.” ‘The members of the posse were all armed with service revolvers except Policeman Hawes of Alexandria, who had a rifle, Saunders continued: “McClary took the rifie because Hawes was winded from running up and down hills; he started to fire three or four shots at Quesenberry, who was behind a tree. “Quesenberry moved behind a big rock. With him was a little white dog which followed him everywhere; McClary stepped out from behind the | barn into the open, I heard three shots from behind the rock; at the third shot McClary grabbed his side and hollered: “He's got me, get him.” Saunders’ chin quavered and his eyes dimmed with tears as he spoke of finding the bullet wound in McClary's abdomen and the sudden death of his friend. One-eyed Tom squirmed in his chair as Saunders spoke. This was the first testimony offered directly bearing on the shooting of McClary. Paul Alex- ander, deputy sheriff of Loudoun County; Kirkpatrick and J. P. Kerlin, sheriff of Prince William County, all of whom were in the man hunt, con- nected Quesenberry with the shooting of the revenue agent but had nothing to offer about the murder of McClary. As the trial opened, Quesenberry wept as he heard his counsel describe him to the jury which may send him to the chair as a “kindly, mild-man- nered, soft-spoken Virginian.” ‘The mountaineer, convicted slayer (See_TRIAL, page 4.) gren scoring the tying run while Me- lillo stopped at second. Johnson’s fly fell safe between Bluege, Manush and Schulte for a single and Melillo scored. Cronin flied to Myer in short right. Five runs. Washington, 5: Boston, 6, EIGHTH INNING. WASHINGTON—Melillo threw -out Travis. Schulte flied to Miller. Hockette tossed oit Bolton. No runs. BOSTON—Travis threw out Miller. Bluege and Kuhel retired R. Ferrell. Werber walked. Dahlgren lined to Travis. No runs. Washington, 5; Boston, 6. NINTH INNING. ‘WASHINGTON — Cooke went. to right field for Boston. Kuhel was called out on strikes. Sington batted for Russell and sent a long fly to Cooke. Werber threw out Bluege. No runs. Washington, 5; Boston, 6. Chairman Tydings | the Bible-spouting moonshiner | ¢ Foenin WITH SUNDAY MORNING EDITION REVISED BANKING BILL IS APPROVED BY COMMITTEE Morgenthau and Eccles Hint Administration May Desire Further Changes. MEASURE MAY REACH FLOOR TOMORROW Little Disagreement in Senate Seen in Speedy Action on Credit Control. By the Associated Press. Without a record vote, the Senate Banking Committee today gave speedy approval to the revised administration banking bill placing control of credit in a committee of seven Reserve Beard members and five representatives of the 12 Reserve banks. This action came soon after Secre- tary Morgenthau and Gov. Eccles of the Federal Reserve Board, leaving a conference at the White House, had told newsmen they would have some suggestions to make to the committee regarding the legislation if they were indicated to observers that the admin- istration desires changes in the re- vised bill. Chairman Glass. Democrat, of Vir- ginia of the Senate subcommittee which changed the banking bill ma- terially from the form in which it passed the House, was authorized to report the bill to the Senate floor dur- ing the day. Chairman Fletcher, Democrat, of Florida of the full com- mittee said it might be taken up on the floor tomorrow. Little Disagreement Seen. The speed with which the full com- mittee acted—after less than two full days' consideration—was regarded as an indication there would be little dis- agreement among committeemen in the Senate debate. A hot contest had been predicted several weeks ago. The full committee made only & few slight changes in the subcom- mittee draft. the most important pro- viding for regional selection of the five Reserve bank representatives on the Open Market Committee. Under the amendment one representative would be chosen annually from the follow- ing four bank regions: 1. Boston, New York and Phila- delphia. 2. Cleveland, Chicago and St. Louis. 3. Richmond, Atlanta and Dallas. 4. Minneapolis, Kansas City and San Prancisco. Chairman Fletcher of the full com- mittee termed the bill “quite reason- able” and a “fair compromise.” He said it was “better than I expected.” Glass Is Happy. The veteran Senator Glass was hap- | Py over his handiwork. | “It is a darn sight better bill than the House passed.” he remarked to | newspaper men as he sat atop a com- | mittee table. “It's all right with me if that's what they want,” observed Secretary | Morgenthau, who would go off the Reserve Board in three months under the new bill. Glass denied the bil would eliminate existing prohibition against banks en- gaging in both a security and deposit business. He said it would relax the bars slightly “without subjecting banks in the capital market to the blanket, drastic prohibition” of - the banking act of 1933. The new measure would: Reorganize the Reserve Board. As against the existing eight-man board, including two ex-officio members, it would consist of seven members, all appointed to 14-year terms. Not more one political pdrty. The Open Market Committee, which would determine policies with regard to buying or selling of Gov- ernment securities, would consist of the seven-man board and five repre- sentatives of the Reserve banks, the latter to be selected by the Reserve bank directors. Under the House bill, the Reserve Board would have the entire say as to open market operations. Open Market Policies. The committee policies on open market operations would be manda- tory on the 12 Reserve banks, but the committee could exempt some of the banks from certain operations if it chose. Buying of Government bonds by the Reserve banks would be lim- ited to strictly open market trans- actions, with purchases direct from the Treasury barred. Further slashing broad powers in the House bill, the Senate measure re- moves the provisions allowing mem- ber banks to make loans on “sound assets” rather than certain specified commercial paper, the question of soundness being left to the board. The present law was retained in this respect. As for rediscount rates, they would still be initiated by the Reserve banks subject to board approval as under present law. But the banks would be required to initiate rates at least every two weeks, though not neces- sarily to change them. By a vote of not less than five of the seven baard members, the board could act to prevent “injurious expan- sion or contraction” of credit by doubling the existing Reserve require- ments against deposits. REECE REPORTED SEIZED Florida Officers Take Suspect at Tourist Camp. NASHVILLE, Tenn., July 2 (®.—A man identified as Joseph I. Reece, former State commissioner of insur- ance, who is under charges of larceny and embezzlement, is being detained in Tampa, Fla., for Tennessee authori~ ties, officials here were informed. ‘The announcement said Reece, who failed to appear to hear scheduled Supreme Court decisions on two ap- peals from convictions, was taken into custody at a tourist camp. Reece, a one-time college dean, faces prison sentences of 3 to 10 years for larceny and three to six years for embezsiement. 4 given an opportunity to do so. This | than four members could be from any | q Staf THE IDEA!--YOURE A BAD,BAD BOY To MAKE SO MUCH NOISE WHILE I'M 7 2, PLAYING THE NEIGHBOR'S KID IS TOO NOISY! The only evening paper in Washington with the Associated Press News and Wirephoto Services. % 3k &4 UP) Means Associated P Commissions. By the Associated Press. Charles Curtis, Vice President in the Hoover administration, today de- clared for a change in the Repuolican national chairmanship. | “They are not gett.ng to work soon enough,” he said in an interview. | “I think there ought to be a new chairman.” He did not mention Henry P. Fietch- er by name. Fletcher is the rresent chairman of the party s national com- mittee. He is regarded as the selec- | tion of former President Herbert Hoover, titular leader of the party. | Teo Many Commissions. | “There are plenty of issues,” Curtis said. “The ‘save the Constitution’ proposition is verv important. And I think there are too many boards and | commissions.” | He referred to a speech he made in Topeka, Kans, August 18 1932,/ attacking “bureaucracy” and con-, tinued: “If the Republicans got in. they would reduce the taxes. That: what I think of the Roosevelt tax pro- gram. Remember, the Republicans | reduced taxes when Andrew Mellon was Secretary of ine Treasury. They could be reduced again if they got rid of these boards and commissions.” | G. O. P. Sentiment Grows. | Curtis added toat there are “at least a dozen” men in the Reputlican party who can deteat President Roose- | velt in 1936. He did not name them. “Sentiment for the Republican party has grown more in the last six or seven weeks than in the year be- fore,” Curtis asserted. “The party in power, through its tax program, appears to me to be try- ing to take the mind of the country off the fact that the Supreme Court (See CURTIS, Page 3.) NewG. 0. P. Chairman Is Urged By Curtis, Hitting | ol Plenty of Issues Seen in Constitution and | | uy Inactiv CHARLES CURTIS. HENRY P. FLETCHER. REV. A. A OLEARY TAKES G. U. HELM Washingtonian Succeeds Dr. Coleman Nevils as President. From the obscurity of a professor- ship in philosophy, Rev. Arthur A.! O'Leary, S. J, 48-year-old Jesuit priest, today was promoted to the | presidency of Georgetown University | and chairman of its board of regents, | becoming the first Washingtonian in | 146 years to head the oldest educa- | tional institution in the National ! Capital. He succeeds Dr. Coleman Nevils, S. J., nationally known educator and churchman, for whom the Jesuit order had broken a precedent by retaining in the presidency a year beyond the traditional six-year term. No George- town president has ever been re-ap- pointed to succeed himself. Dr. Nevils expects to receive a new assignment elsewhere tomorrow, when he will leave for a brief vacation in his former home in Philadelphia. He previously had served as university chancellor, college dean and regent of the School of Foreign Service during 16 years on the Hilltop faculty. In Georgetown circles the new pres- ident, Father O'Leary, was being ac- claimed by alumni as “the local boy who made good.” For 23 years on the college faculty, he had waited pa- tiently for opportunity to knock at his door. It came unexpectedly last Sep- tember when Dr. Nevils secured his temporary appointment as acting rec- tor when the Georgetown president departed for Tokio as delegate to the International Red Cross convention. During the three or four month pe- riod, Father O’Leary “made good” in a way that merited attention at pro- vincial headquarters in New York City. When the time arrived to select a new president for Georgetown, old- est Catholic school in the United States, his name was submitted to the general of the Jesuits in Rome, who recognized in the quiet teacher of philosophy new executive material of a high order. The transfer of office was made with customary informality after Dr. Nevils had announced to the members of the religious community and wired the regents of the appointment of his successor. His own departure at (S8ee O'LEARY, Page 8.) L) A 1., STARS WIN AT WIMBLEDON Mrs. Moody and Helen Ja- cobs Move to Semi-Finals. Dot Round Loses. By the Associated Press. ‘WIMBLEDON, July 2.—Mrs. Helen Wills Moody defeated the formidable French player, Mme, Rene Mathieu, in the all-England tennis tourna- ment today in the quarter finals, 6—3, 6—0, and will meet Joan Hartigan, Australia, in the semi- finals. Helen Jacobs, winner of the Amer- ican championship the past three years, also won her match with Mile. Jadwiga Jedrzejowska of Poland, 6—1, 9—7. Miss Dorothy Round, the defending champion at Wimbledon, was elim- inated from the championships when she lost her quarter final match to Joan Hartigan, 4—6, 6—4, 6—3. Miss Hartigan scored the biggest upset of the tournament. Using nothing but fierce drives from the baseline, Mrs. Moody ran up & lead of 5—1 in games in the first set before the French matron rallied. The Cali- fornia star displayed her old-time ac- curacy and power with both the fore- hand and backhand. bringing repeated applause as she maneuvered Mme. Mathieu out of position and passed her with stinging drives to the corners. Katherine Stammers, another prom- inent British player, was eliminated by Hilda Krahwinkel Sperling of Ger- many, 7—5, 7—5. Miss Jacobs’ steady chopping proved too much for the stout Polish star, who whaled the ball hard, but with in- sufficient accuracy. The American titleholder's service appeared much improved over 1934 and she got & sub- stantial quota of aces. Her opponent in the penultimste round will be Fraulein Sperling. Beck to Be Hitler's Guest. WARSAW, July 2 ().—Authorita- tive sources said today that Joseph Beck, foreign minister of Poland, will go to Berlin shortly for a reception by Reichsfuehrer Hitler at the invitation of the German government. Beck will be accompanied by his wife and will visit & spa following his official busi- ness, | TEMPEST MARKS DVORCE HEARNG 'Palmisano Orders Meeting | to Adjourn, but Others | Adopt D. C. Bill. BY JAMES E. CHINN. | Another hearing by the Judiciary | Subcommittee of the House District Committee today on the troublesome bill to liberalize the District's divorce | laws wound up in unprecedented fash- | jon, leaving its fate in a maze of doubt. | In the first place, Representative Palmisano, Democrat, of Maryland, | chairman of the subcommittee, | | abruptly called an adjournment and | stalked out of the meeting in protest against what he described as the at- tempts of two of his colleagues—Rep- | resentatives Carpenter, Democrat, of | Kansas and Brewster, Republican, of Maine—to “railroad” the bill out of | the subcommittee. | Cries of “I appeal” and “a point of order.” were ringing in Palmisano’s ears as he disappeared out of the | door, and when he failed to return | Carpenter and Brewster decided to | order a favorable report on the bill | But whether their action will stand furnishes a neat parliamentary ques- | | tion, which probably will be decided at the next meeting of the full Dis- | | trict Committee when Carpenter and | Brewster make an effort to report the | measure. Yesterday’s Circulation, 124,867 Some Returns Not Yet Received. ress. TWO CENTS. CITY 1S ALLOTIED 501743 FOR NEW WORKS PROGRAN Board Seeks to Avoid Delay by Asking President’s Approval Now. TOTAL OF 142 MILLION SOUGHT FOR COUNTRY Allen’s Proposals for Highway and Sewer Improvements Would Cover $1,500,000. ‘The President had before him to- day a recommendation from the Fed- eral Allotment Board for the imme- diate grant to the District, three States and New York City of $142,- 245875 for a prompt start of works projects requiring little or no cost for material. The District’s allotment out of this sum was listed at $2,017,043, of which $58,000 would be allowed for admin- istrative expense. Other portions of the proposed allotment would be $78,657.310 for New York City, of which $2,350,000 would be allowed for administration: Alabama, $10,196.346 with $305.000 for administration: Georgia, $10,256,600 with $300,000 for administration, and Indiana, $37.- 052973 with $1,110,000 for adminis- tration. The move was interpreted in some quarters as a means of getting the new works program into operation to avoid delays necessitated by engi- neering checks of applications for funds for projects having consider- able costs for material. $1,500.060 in Projects. Commissioner Allen, works admin- istrator for tne District, already has filed with Federal officials projects calling for the use of more than $1.- 500,000. The first group of proposals was for a serics of highway and sewer system improvements. Since then city departments have proposed many | additional programs to Allen. He and other officials in charge of the Dis trict program today were in New York attending a regional conference of works executives. There was no word at the District Building, therefore, as to just how the near two-million-dol- lar fund would be spent, but the set- up indicated a continuation of pro- grams similar to that operated in the past under the emergency works pro- gram. Under this new “stop-gap” low-cost works operation there would be a limi- tation of sperding not more than $812 | per person each year. The District has begn informed that under the | regular works program its limitation would be $900 per vear per man. By | that calculation the first allotment would put about 2,400 to work. The reduction was calculated apparently on the theory that under the substi- tuted temporary program much less money would be required for purchase of material. | Dillatory Tactics Charged. | | The trouble started at the very outset of the hearing when Palmisano | | walked into the committee room nndi | found Carpenter and Brewster, two | | strong supporters of the more liberal- | | ized divorce bill waiting. Palmisano. incidentally, had previously been charged by Carpenter with dillatory tactics in handling the bill, and he sensed a two-to-one vote against him “If you are going to try and railroad | this bill I want to know it,” he de- clared. The only answer was a motion by | Carpenter to limit the discussion to| 35 mmutes. after which a vote would be taken on the question of reporting the measure favorably. The motion | was adopted because Carpenter and | Brewster voted for it. and the other three members of the subcommittee were absent But at the conclusion of the 35- minute discussion Palmisano played his trump card. Mrs. Elizabeth Sul- livan, active District civic worker, was on the witness stand when Brewster made & move to interrupt her testi- mony. “You're not going to railroad this thing in this method,” Palmisano re-| iterated. “The committee is ad- journed.” | the recommendations of The tentative schedule for wages provided $45 a month for common labor and ranged up to $70 for skilled workmen. District relief rolls contain the names of about 16,000 who could be employed. Five thousand are classed es unemployables. Programs Ready. Federal officials who made public the Allot- ments Board could not explain why the three States, the District and New York City were selected as recipients of the proposed substitute grant. Some who have been following the program, however, advanced the theory that in the case of Alabama and Indiana, those States some time ago said they had programs all ready and hoped to put men to work at once. For the District, Allen has been hoping for speed in starting the new works operations. In other quarters there was the ex- planation of protests against the months of delay in starting the new works program since Congress passed the $4,880,000,000 appropriation, FRANCE TO REGUCE VETERANS’ PENSIONS Motion Declared Not Made. Carpenter protested that a motion to adjourn had not been made. “I have followed the rules,” replied | Palmisano. “You gentlemen can do| as you please. I have already said| the committee is adjourned.” | “I appeal from that decision,” shouted Carpenter, but by that time Paimisano was going through the door. Carpenter and Brewster then went into a huddle, and a minute or two later both announced they had reached a decision to report favorably the liberalized divorce bill that passed the Senate several months ago as a substi- tute for a similar measure that Carpenter sponsored in the House. Even after Carpenter’s attention had been called to the parliamentary (See DIVORCE, Page 7.) B e — MONETARY REFORM URGED FOR CHINA Silver Price Rise Blamed for Market Stagnation and Bank Failures. By the Assoctated Press. NANKING, July 2.—The Sllver Committee of the nationalist govern- ment's industries ministry announced today a conclusion that China’s eco- nomic salvation can be effected only through changes in the nation’s mon- etary structure. In a report, the committee -pointed out that the rising price of world sil- ver brought on market stagnation throughout China and reduced sharply the Chinese demand for world goods. The report asserted one of the most serious results of higher silver prices has been a countrywide decline in price level, causing unemployment, wage reductions, bank failures and Cabinet Approves Proposal Ex- pected to Cut $726,000,000 National Deficit. By the Associated Press. PARIS, July 2.—The government planned today to readjust the pen- sions of all World War veterans ex- cept those actually wounded at the front, as part of its campaign to cut the 11,000,000,000 franc ($726,000,000) national deficit. The cabinet approved a project submitted by Henri Maupoil, minister of pensions, which is expected to save more than one billion francs annually. However, the issuance of the decree will be postponed until July 16, two days after Bastile day, when huge Leftist demonstrations are scheduled. It was feared that publication of the terms of the decree before that time might possibly lead to violence. Vacations of all higher function- aries in government departments were suspended in order to speed comple- tion of the financial redressement program. PAID VACATIONS GIVEN 3,000 in Factory and Stores Are Granted Two Weeks. CLEVELAND, July 2 (#).—~Richman Brothers, clothing manufacturers, ane nounced today that all factory eme ployes will receive a two weeks’ vacae tion with pay beginning tomorrow evening. The concern said its retail store em« ployes will arrange their vacations by “staggering” their holidays, thus keep- ing the stores open for business. ‘The vacation-with-pay plan affects a total of 3,000 workers, the company said. Richman Brothers gave all em= ployes a Christmas-New Year week’s vacation with pay in 1034,