Evening Star Newspaper, July 2, 1935, Page 2

HOLSE NENBERS CALTIOLS ONVOTE Prefer Teller System in Utilities Fight Due to Great Pressure. BY DAVID LAWRENCE. The spotlight of national scrutiny might well be turned on what is happening in the House of Repre- sentatives with respect to the system of voting, especially as evidenced on the utility holding company bill. Normally there's a record vote on fmportant measures, but so strong were the threats of gunishment from the White House and so severe the process of political intimidation that, in voting without pressure and with- out a record of individual votes, the majority of the House showed that regulation was preferred to destruc- tion of utility holding companies. There are three kinds of voting gystems in the House —a voice vote, which is usually taken on unimpor- tant matters and can be turned into a record vote if doubt exists as to which side won; a vote by tellers, whereby members file past the Speaker's desk and are counted rapidly as they go past in groups, and a record vote, in which the roll is called and the member answers to his name by “aye” or “nay.” 'Will Press for Record Vote. The administration has been in- sisting on a record vote so as to put insurgent members ‘“on the spot.” ‘The rules of the House are such that roll-call votes can be limited. The administration promptly after yes- terday’s vote announced its inten- tion of pressing for a record vote be- fore the measure goes to ‘“con- ference.” The purpose of such a step, of course, is to inflict reprisals on any members who voted against the Presi- dent’s wishes. There are lots of ways to terrorize members. One is to refuse to allow public works funds to go to their districts. This dimin- ishes a member’s prestige and in- fluence back home. With a $4,000,- 000,000 fund to disburse in a year, especially just before election, it takes a kind of courage lacking in many politicians to refuse to stand by the executive dispenser of favors. Also a Congressman finds that if he doesn't toe the mark the administra- tion will appoint his political foes inside the party to postmasterships and other Federal jobs, and this often leads to the grooming of an ad- ministration candidate to oppose the insurgent member in the party primaries. Rumors Fill the Air. ‘The House chamber and cloak rooms have been the scene of extraordinary pressure of this kind for several days. Rumors of promises of Federal jobs and favors have been in the air and a matter of common gossip. But with- out a record vote the administration spotters cannot tell which members stood with the President on the death sentence in the holding company bill and which ones did not. Nor could the utility lobbyists tell either. For they could not know except by a roll call whether the men who had indi- cated their opposition to the death sentence would stand the same in the voting or switch. If the 216 to 148 vote against the “death sentence” clause were to be overturned by a record vote, it would mean that the members voted their convictions in the first instance, but were politically bludgeoned into voting ‘with the administration by intimida- tion and threats. But the administration has one ace in the hole. There will be five mem- bers of the Conference Committee from the House and five from the Senate. These 10 men will consider the House bill and the Senate bill. If the administration can bring pressure on at least three of the five House conferees, the Conference Committee will adopt the Senate bill, which con- tains the “death sentence” for utility holding companies. Conferees to Be Watched. ‘When the conference report is pre- sented to both houses it is usually & case of take it or leave it; that is, the members must decide whether they prefer no holding company bill at all or a bill with the “death sen- tence” in it. Obviously on such a vote many members would vote for the bill with the destructive features in it, because otherwise they would have to face the ery of political opponents that they voted against having any bill enacted to regulate holding companies. And there is, of course, a widespread senti- ment for some kind of bill to elim- 1inate evil features of holding company operations. ‘The chances are that this particular Conference Committee will be under the watchful eyes of the whole coun- try, and that the House of Repre- sentatives may take the unusual step of refusing to agree to a conference report if its own conferees gc back on the majority vote of the House. (Copyright. 1935.) U. S. INTERVENTION IN MEXICO OPPOSED House Foreign Affairs Group Gets Hull Report of Reli- gious Fight. By the Associated Press. A report by Secretary Hull on the Mexican religious situation, submitted to the House Foreign Affairs Commit- tee, was discloced on good authority yesterday to advise strongly against any kind of American interference. The committee had called a special session to consider the report today, but this was postponed until tomorrow because of pressing business in the House. It was understood the Hull report, supplemented by documents and in- formation from Ambassador Daniels at Mexico, D. F., called attention to the fact that no request for protection of American rights has come from Americans in Mexico, but only from those in the United States. Representative Fish, Republican, of New York, said Saturday he planned to introduce a resolution seeking the recall of Ambassador Daniels because of his failure to appear before the committee when requested to do so. . ——— Lodge Protests Food Supply. SPOKANE, Wash, July 2 (®).—As & protest against “insufficient food budgets,” members of the Forgotten Men’s Lodge of Spokane advised county officials yesterday they would *camp on the court house lawn” until something was done about it. The lfu}l“: claims more than §,000 mem- A What’s What Behind News In Capital Veto of Yes-Man Board’s Action Proves Too Much for Gen. Wood. BY PAUL MALLON. EN. WOOD of Sears Roebuck rode into the Roosevelt relief allotment board two months ago to the mimeographed huzzahs of the press-agent brigade. He was to be the sound business influ- ence in the $4,000,000,000 spending program. The general ducked out the side door a few days ago with the excuse that he had promised to serve only until July 1. You will never learn from him the real reason for his sudden departure. He does not talk. But any one who has sat in on the secret meetings of this allotment board knows at least part of the answer. S YES. e It is that this so-called allot- ment agency did not allot anything except a few chairs and a table for itself. In practice, it developed into a yes-board for the President and Relief Spender Hopkins. If the truth were known, most mem- bers of the board have become so exasperated that they would like to follow Gen. Wood into retirement. The meetings, called to allot millions | of dollars, usually last but 20 to 25 minutes. In advance, the works ad- ministration prepares a list of projects to be considered. When the President calls the board to order, some one usually arises and starts reading the list. Practically all are immediately approved without wasting any time on debate. ‘The customary practice apparently is for the President to look at one of the board members from time to time. Catching the cue he arises and moves approbation of the project suggested. The “ayes” always win. The “No” Angle. ‘The board members are supposed to represent the American Bankers’ Asso- clation, industry, labor, mayors of citles. However, they would not now be sobbing secretly in their beards about this procedure were it not for the fact that many of the allotments have had to be rescinded or changed. All the projects yessed by the board at the last three meetings were withdrawn later for further consideration by the Works Ad- ministration. Apparently the board has men who could stand it if they were only required to be yes men, but the strain of being yes-and-no men is almost too much. It is practically impossible for the Allotment Board to investigate and de- bate every project, because all have outside interests. The board will prob- ably be abolished or at least reor- ganized. A few Democratic members of Con- gress have become interested in pur- suing the identity of the angels of the Democratic National Committee. They have dug up data indicating that the James A McDonough of Boston who gave $10,000 is secretary to the rallroad-stock market-meat packing financier, F. H. Prince, one of the wealthiest of New Englanders. Prince is best known as author of the Prince plan of railroad consolida- tion, which has been opposed by Rail Administrator Eastman. It may be significant that Me- Donough’s contribution was given be- fore Mr. Roosevelt's wealth-taxing program was submitted to Congress. No refunds are allowed by the National Committee. J. M. Johnson’s Code. The new Assistant Commerce Sec- retary, James Monroe Johnson, called his office staff together for a private meeting after he took office. He told his workers: “This is the way I am going to work. While a policy is being Jormed I shall expect all of you to fight like hell for your respective ideas. But once I have adopted a policy any further disagreement will be insubordination—and you know what that means.” The men cheered. Note—This is essentially the same policy on which President Roosevelt ‘works. The official excuse for this new leg- islation preventing gold suits against the Government is that the President merely wanted to get the matter cleared up before Congress adjourned. New Deal authorities contend it is a routine step, but there may be more behind it than that. If you look up the figures you will find that the amount of gold bonds outstanding on which interest had ceased last May 31 was about $120,- 000,000, This includes some $20,000, 000 of old issues called prior to the Supreme Court gold decision. The largest block, however, is $100,000,000 of Libertys, called between April, 1934, and April, 1935. Apparently some people have been holding out their called gold bonds, forfeiting the interest, in hopes of ultimately getting full gold value. The new legislation will make such action futile, Miss Perkins’ Wrath. Secretary Perkins rarely discloses the full extent of her wrath. But she found occasion for 4 50 per cent ex- position recently on the telephone with Gen. Johnson. It seems Miss Perkins did mot learn that her right-hand man (Assistant Secretary McGrady) was to help Johnson on New York relief until she read it in the news- papers. Calling Johnson on the telephone, she informed him in language he best understands that he could not raid her depariment that way. The matter was settled when Miss Perkins agreed to let McGrady select some efficient labor assistants for Johnson. That is all he will do, de- spite wide publicity to the contrary. (Copyright, 1935.) A THE EVENING STAR, WASHINGTON, Jobs Insurance Bill Changes Urged by District Officials Hold Measure Should Not Go Beyond National Act, Citing Stability—Ask Removal of Pay Roll Tax. When the Senate District Commit- tee meets before the end of the week to act on the local social security program it will have before it a strong appeal from the District Commis- sioners to change those features of the House unemployment insurance bill which go far beyond the system in the national act and in the laws of the States that have acted up to this time. Chairman King may arrange a meeting for tomorrow, but it is more likely to be later in the week after the conferees have reached a final agreement on the terms of the na- tional security measure, Changes Are Itemized. In their letters to the Senate com- mittee, the Commissioners itemized the changes they advocate in the House unemployment bill, which in- clude: To strike out the contribution from taxpayers generally of an amount equal to 1 per cent of the pay roll of the employers affected by the act, which would amount to $1,500,000 a year; to make the period of benefit payments 16 weeks instead of 26 weeks; impose the employers’ pay roll tax gradually at 1 per cent the first year, 2 per cent the second year and 3 per cent thereafter, as in the na- tional bill, instead of starting imme- diately at 3 per cent; require the Fed- eral Government, as well as the Dis- trict government, to contribute to cover those part-time employes who do not come under the civil service retirement law; place control of the unemployment plan under a local, in- stead of a Federal, board; restore au- thority for the board to reduce as low as 1!, per cent the tax of an em- ployer with a good record for keeping men steadily employed; to have benefit payments start after two years, in- stead of one year, and several less important changes. A subcommittee composed of Sena- tors Copeland of New York and Capper of Kansas has been working on the bill in preparation for the District Commitiee meeting. Not Place to Experiment. After pointing out that the national security program is in itself a “highly experimental venture,” the Commis- sioners emphasized that Washington is | not a satisfactory place to conduct an | unemployment insurance plan that goes even further than the national standards. The District, they said, is | not an industrial center, and in those local concerns affected by the bill employment is “comparatively stable.” | The purpose of the House in calling for a contribution from District tax- payers generally of $1,500,000 a year was to allow 26 weeks of insurance payments. The Commissioners re- minded the Senate that if the States adhere to the standard of 16 weeks | suggested in the national bill, the longer period allowed in the District would cause workers to come to tnis| city seeking employment to get the; advantage of this longer period. In urging that the Federal Gov- ernment contribute as an employer for its workers not under the retirement law, the letter points out that there are now on the District relief rolls many persons who formerly were casual laborers in the Federal Govern- ment. The Commissioners also denied that the enlargement of the unemploy- ment fund by District tax contribu- tion would reduce in future the relief load, because a large number of those on relief are domestic and others who would not come under the unemploy- ment insurance plan normally. More Liberal Benefits. “In its present form, H. R. 7167 is more liberal in its benefits to em- ployes and correspondingly more harsh toward employers than is the national legislation. We believe this to be inadvisable for three reasons: “l. The National legislation itself is a highly experimenial venture in American soclology and economics. Some of its provisions are revolution- ary in their effects upon industrial and business life. The success for which we hope in the venture must come slowly, by a process over the years as we gradually work into the new order. It seems to us to be ill advised to risk the breakdown of & vital reform by making its initial terms too severe on the one hand and too liberal on the other. Is is for this reason that the national act imposes the tax in a gradation of 1, 2 and 3 per cent in three succeeding years. We believe it very unwise to depart trom that sound principle. If every State could do what it propesed in H. R. 7167, ie., impose the 3 per cent tax at once, this wise provision of the social security act would be nullified and destroyed. “2. It seems sound policy for the whole country to move forward to- gether, on a unified system, rather than to create, by ill asserted legisla- tion, spotting conditions of employ- ment, some localities having one sys- tem and some another, It would seem to use best that all jurisdictions should follow carefully the Federal plan. Conditions Far From Typical. “3. The argument for the diver- gency from the national act is that an experiment station is wanted in which to try out these ideas which differ from the national plan. We do not believe that the District would afford satisfactory material for such an experiment. Employment condi- tions here are far from typical of the country as a whole. We have no industries here, except minor ones. Employers in the District who will come under the act are, in the main, public utilities, hotels, department stores, small local concerns such as laundries, ice cream manufacturers, etc. Employment in these concerns in Washington is comparatively stable.- Violent fluctuations in em- ployment conditions are rare. The relations between employers and em- ployes are on & high plane. So, as an experimental locale, the District is not likely to furnish the data upon which valuable conclusions can be promised. No material could be gathered here which would be of the highest value in an industrial, an agricultural, a mining, or a maritime community. For all these reasons, as we have suggested, we urge that the local bill be patterned after the na- tional act. Oppose Pay Roll Tax. “We propose among the amend- ments outlined above that the pro- posed contributions of the District government, equal to 1 per cent of all pay rolls, be stricken. We urge this for several reasons. “1. A matter of finance. The Dis- trict has not this million and a half unless it be for a pQwerfully com- pelling reason. It is said that this expenditure will affect an expendi- ture otherwise necessary for relief. But we do not believe that to be the case in the District; it may be so in an industrial center. We believe that at least 70 per cent of our people on relief were not formerly employed by concerns having four or more em- ployes, or were not formerly regularly employed. In other words, our un- employed are largely from domestic servants and casual labor. The insur- ance offered by this legislation would not touch this large class, now on our relief rolls. So in time of depression the protection of these funds would not affect the demand for relief. “2. The effect of this District con- tribution is to increase the period of benefit payments from 16 weeks to 26 weeks. The Federal act contem- plates only 16 weeks. Unless many of the States extend this period we be- lieve that it is extremely unwise to in- crease it in the District. The effects of doing so would be to attract to the District many thousands of persons of the class who desire to work a minimum length of time for the maximum of pay while not working. In other words, it would tend to make the District a haven employed as wish to be unemployed. Such a result would vastly increase the District's relief burden and might 50 increase the supply of labor as to cause decreases in the number of em- ployes steadily and regularly employed. State Measures Cited. “3. None of the five States which have this type of insurance require a governmental contribution, and no bill, so far as we can learn, has been proposed in any State to require such a contribution. We believe it very unwise to put the District entirely out of line, not only with the Federal act, but with all the States. “4. A minor, but nevertheless sound, reason is that it seems unfair to use District tax money to pay unemploy- ment benefits to non-residents of the District. It is proper that employers’ contributions should be used to pay benefits to their employes, no matter where the beneficiaries be resident. | But when you come to deal with tax money, a different consideration arises. The expenditure of tax funds is by custom limited to the area from which the tax is derived. “We propose, among the amend- ments mentioned above, that the ad- ministration of this law be in local, rather than in Federal, hands. It is a basic belief of this board that the executive authority in the District should be in the hands of those offi- cials appointed by the President, with the consent of the Senate, for that purpose. There is already too much diffusion and dissipation of executive authority in the District. We there- fore oppose a further increase in this confusion. After all, these are local funds, it is a local problem, the em- ployers are local concerns. We be- lieve that a local board should admin- ister this local law. Ask Federal Contribution. “We also propose, among the amend- ments mentioned above, that the Dis- trict Government contribute as an employer only in respect to such of its employes as are not now covered by the retirement act and that the Federal Government similarly con- tribute as an employer in the District. ‘We have on our relief rolls many per- sons formerly employed as casual la- bor by the Federal Government. Such rart-time employes as are covered by the retirement act are usually in stable employment, and are protected by the 3 per cent currently collected under that act. “For many and obvious reasons we do not attempt to discuss the many basic problems involved in the na- tional act. We wish you also to un- derstand that, by this report, we do not assume responsibility for the pro- visions, the construction or the phrase- ology of H. R. 7167, the local bill. Our comments and proposed amendments are addressed solely and exclusively to the two purposes of bringing the local act, taking it as it is now writ- ten, into conformity with the social security act, giving the local law a local administration, and the other respects specifically mentioned above. GIRL-WIFE KILLS MATE Kisses Slain Man She Shot in Jealous Tantrum. BOWLING GREEN, Ky, July 2 (@) —Bernice Goad, 17, placed a tear- ful kiss yesterday on the face of her slain husband, William Goaed, 21, whom she married when she was 14. Saturday night, witnesses told police, she shot him through the heart in a jealous tantrum. Held on a murder charge, she was permitted to view the body before it was taken to West- moreland, Tenn., for burial, but was denied her request to attend the Senate. Debates bill giving Interstate Com- merce Commission control over rail- road rates affecting seaports. Banking committee prepares to ap- prove omnibus bank bill. House. Considers utilities bill amendments. ‘TOMORROW. Senate, May take up new banking bill. Territories Committee holds further hearing on Virgin Island investigation. Meeting of conferees on social se- curity bill, House: ‘Will not be in session. I funeral. —_— CANTOR HITS COUGHLIN Tells B’nai B'rith Priest Has Not “an Atom of Sincerity.” LOS ANGELES, July 2 (P).—Beliet that Father Charles E. Coughlin, De- troit’s broadcasting priest, “has not an atom of sincerity in his entire system,” was yesterday by Eddie Can- tor, motion picture comedian, in an address to 1,000 delegates to the B'nai B'rith Convention here. “Pree speech is & beautiful thing,” Cantor declared, “but through the radio we are permitting many like him (Father Coughlin) to address mil- lions.” Jewish delegates from eight Western States and British Columbia heard Cantor speak. 14 LY for such un-| D. C., TUESDAY, JULY 2, 1935. ]APAN PR[]V“K'NG Die Trying to Save Father FRICTION, SAY REDS Militarists Are Accused of Seeking Complications on Frontier. By the Associated Press. MOSCOW, July 2.—~The official press charged today that incidents along the Soviet frontier in the Far East have been provoked deliberately by Japanese militarists to stir Russian forces to countermeasures and thus bring on grave complications. A note of protest concerning the whole series of alleged violations of Soviet territory by Japanese and Man- chukuan troops and gunboats during the last two months was delivered yes- terday to Tokio. “These incidents may be explained only in the sense that there is a def- inite plan by Japanese militarists to create complications on the frontier,” asserted the Communist party organ, Pravda. Responsibility on Japan. “The responsibility for these cun- ning attacks and invasion of our ter- ritory by Japanese troops and murder of our frontier guards—intended to cause serious conflicts between the U. 8. S. R. and Japan—rests ex- clusively on the Japanese government.” Four frontier guards were declared in the Soviet protest to have been killed by invaders. The note warned Japan that a continuation of the incidents “may have very serious con- sequences in the relations of the U. 8. S. R. and Japan and on peace in the Far East.” Soivet troops have been holding themselves in check so as not to play into the hands of the Japanese, the press said, but Pravda added: “The Japanese and Manchukuans must realize that we have sufficient forces in the Far East to exterminate all these provocateur bands if we so desire.” Soviet Waters Penetrated. Manchukuan gunboats have been penetrating Soviet waters along the Amur River with the deliberate pur- pose of setting a precedent for regu- lar navigation of the Soviet inland waterway, the paper charged. “The Soviet government and public opinion do not intend to permit the frontier to be a continued object of attack.” The protest was presented in Tokio by Ambassador Constantin Yureneff. He asserted: “Taking into consideration these violations of the Soviet frontier by Japanese and Manchukuan authori- ties, which may bring very serious consequences in the relations between the U. 8. S. R. and Japan and to the cause of peace in the Far East, the government of the U. 8. S. R. has instructed me to present a determined protest.” Trespasses Are Charged. An official announcement of the protest disclosed a long series of al- leged trespasses on Soviet ground by both Manchukuan ships and soldiers. It said that there were several in- stances of Soviet frontier guards be- ing fired upon and suffering fatalities. The specific charges of incidents during the last few months included a declaration that two Manchukuan gunboats penetrated the Soviet branch of the Amur River, and, training their guns on Soviet frontier cutters, dis- obeyed their orders to halt. Manchukuan military detachments were alleged to have ambushed Soviet guards on patrol in Soviet territory May 1, killing two guards. Another guard was said to have been killed by machine gun fire from the Manchu- kuan banks of the Amur May 6. The protest charged that another guard was killed June 3 and his body carried off to Manchukuo. On June 16, the note set forth, the Soviet village of Papiha was bom- barded from the Manchukuan side of the Amur. Manchukuan boats also were alleged to have been approach- ing the city of Khabarovsk, using Soviet waterways. TOKIO PRESS STIRRED. Officials Little Concerned Over Note, However. TOKIO, July 2 (#)—The strong tone of Soviet Russia's latest protest to Japan, alleging Japanese troop violations of Soviet territory, evoked sensational headlines: in the Tokio press today, but officials professed little concern. Vernacular newspapers stressed the sternness of the protest. Nichi Nichi called it “threatening,” emphasizing a “reference to grave consequences.” Officials asserted that such a phrase was absent from the note in the Rus- sian language which Ambassador Con- stantin Yureneff handed to Foreign Minister Koki Hirota last night. GOTHAM RACKET PROBE ORGANIZED BY DEWEY Former U. 8. District Attorney Expects Task to Require 2 Years and $500,000. By the Assoclated Press. NEW YORK, July 2.—Organization of an investigation unit intended to purge New York City of vice and racketeering was started today by ‘Thomas E. Dewey, 33, a former United States district attorney. Dewey, who took the reins in the clean-up drive from District Attor- ney William C. Dodge, was named by that official yesterday at the behest of Gov. Herbert H. Lehman, who gave Dodge the alternative of being super- seded by the attorney general. Dewey told friends he expects the task to require as much as two years of his undivided time and an ap- propriation of about $500,000, The Governor set July 29 as the date for convening an extraordinary session of the grand jury, before which the in- quiry will be carried on. TRIBUTE TO COOLIDGE ORDERED BY ROOSEVELT By the Assoclated Press. BOSTON, July 2.—President Roose- velt last night ordered a wreath placed on the grave of former President Cal- vin Coolidge in Plymouth, Vt., on ‘Thursday, Independence day and the 63d anniversary of the former Presi- dent’s birth, Maj. Gen. Fox Connor, commandant of the 1st Corps Army Area, to whom the President made his request, desig- nated Capt. Bartholomew R. Degraff, Regular Army Infantry officer on duty as instructor of the Vermont National Guard at Rutland, as the President’s representative. The wreath will be sent from the White House, r | 55, Boston realty broker and sports- Copyright, A. P. Wirephoto. Upper: Richard Ames, 23 (left), and his younger brother Harry, 20, sons of the socially prominent Robert R. Ames, 52-year-old yachtsman, who were drowned yesterday 600 miles off the coast of Newfoundland in a vain attempt to save their father, washed overboard during a storm. Below: The racing yacht Hamrah, which the sportsman and his sons were sailing in a race from Newport to Norway when the tragedy % occurred. YACHTSMAN, TWO SONS LOST AT SEA Robert Ames Washed Over- board and Boys Die in Rescue Attempt. By the Associated Press. SYDNEY, Nova Scotia, July 2— Three young survivors of an Atlantic gale that cost the lives of their com- panions—a Boston yachtsman and his two sons, who sought to save him— took refuge in port today, still suffer- ing from their experiences. Their 54-foot ketch, Hamrah, her rigging and sails damaged, rode safe- ly off the Royal Cape Breton Yacht | Club, but her 21-year-old navigator, Charles Tillinghast of Providence, R. 1., said it might be several days before they could put to sea again. ‘Tillinghast and his two companions, Roger Weed, 25, and Sheldon Ware, 19, both of Boston, brought their cTip- pled craft into Sydney harbor yester- day and reported that Robert Ames, man, had been washed overboard by a mountainous wave. His sons, Rich- ard, 23, and Harry, 20, were lost in a vain atempt to rescue him. Encounter Heavy Seas. ‘The Hamrah, one of seven yachts that left Newport, R. I, June 8 ina trans-Atlantic race to Bergen, Nor- way, was about 600 miles east of New- foundland when she encountered & northeast gale on June 19. Heavy seas almost swamped the little craft, the youthful yachtsmen said, and a huge wave swept Ames, the owner, off the deck. “His eldest son, Richard, a strong swimmer, went to his father’s rescue after the yacht had been swung back,” said Weed, “and had come up close to where the owner of the vessel was seen foundering in the water. “But a line he was carrying in his hand fell from his grasp, so we threw over a life preserver to the elder Ames, which he managed to secure and was thus able to keep afloat. “A small tender kept on deck for emergencies was unlashed and lowered into the sea by the younger Ames, Harry, who vigorously rowed to where his father and brother were. Gale Nearly Wrecks Boat. “Meanwhile, the terrific onslaught of the gale provided difficulties for the rest of us. On the second jibe the boom broke and the gaff jaws parted. ‘The mizzen had to be hoisted then. “While we worked to repair the damaged rigging the ketch was blown away from the three struggling yachtsmen.” Weed said the damaged boom wrecked their main rigging and that they were forced to cut away the mainsail. By the time they headed back toward the three men, however, they no longer could be seen. For hours the survivors searched the storm-lashed sea, but when dark- ness set in they said they knew there was no hope for their shipmates. Patching up the damaged ketch suf- ficiently to keep her on a course, the trio turned back toward the Cape Breton coast the next day. Mrs. Ames sailed for England June 22 unaware of the deaths of her hus- band and two sons, whom she planned to welcome at the end of their journey. - HOAX OF CUPID STIRS POLICE OF 5 STATES Search for Daughter Ends When Telegram Brings News of Wedding. MAMARONECK, N. Y., July 2 (P .— TREASURY DEFICIT 1§ §3.075.357. %3 Fiscal Year Opens Less in Red Than at Beginning of Last Period. By the Associated Press. ‘The Treasury’s deficit for the fiscal ALASKAN COLONY QUIETED BY CARR Relief “Trouble - Shooter” Fires Commissary Head, Halts Building. 3y the Associated Press. PALMER, Alaska, July 2.—Although he refused to talk at length Eugene Carr, Federal relief administrator “trouble - shooter,” indicated here to- day his actions had quieted Mata- nuska colonists’ complaints. The farmers are organizing a dele- gation to meet Carr formally, as he investigates complained-of conditions, but his informal moves shortly after arrival yesterday had already done much to halt agitation and com- plaints. Carr was sent here after com- plaints resulted in a United States Senate resolution asking a report on conditions. Commissary Head Ousted. First he dismissed Commissary Manager Warters and give him 24 hours to leave. Colonists had com- plained that they were charged An- chorage retail prices plus freight costs. A more equitable rate of Seat- tle prices plus freight has been worked out. Warters sold his household goods and prepared to move out. Carr's next act was to halt the construction of log cabins, on the ground they were being built from the top down, instead of starting with a foundation. The former Midwestern farmers then Invited Carz to attend their weekly assembly, but he said he wasn't commenting publicly, just yet. The colonists were elated by his activity. Carr was conferring with project officials again today. Slow Construction Hit. Major complaints have been com- missary supply costs and the slow construction of homes and public buildings in the Government-spon- sored relief project. Arrival of skilled construction help was expected to speed the erection of long cabins, and the school and com- munity center here. Original complaints, sent to Wash- ington, were signed by 40 or 50 of the 200 families of colonists who were brought here from impoverished Mid- western farm lands. After the matter was broached in Congress and Carr was dispatched here from the States, only six of the families voluntarily asked to be sent back to the States. ONE SLAIN AS FOUR TRY PRISON BREAK | Reformatory Guards Seek Lone Inmate Eluding Shot- gun Slugs. By the Associated Press. PENDLETON, Ind., July 2—Slue | from a sawed-off shotgun killed one year ending last Sunday was $3,575,- youth and injured another perhaps 357,963.61. | fatally as four prisoners tried to escap The figure, covering the second full | from the Indiana State Reformatory year of the New Deal Administration, | here early today. compares with a deficit of $3,989,496,- 035.42 in the previous fiscal period. It is considerably less than the $4,- 869,418,338 deficit estimated in the President’s budget message to Con- gress last Spring. Receipts during the year totaled 115,554,049.53 in the previous year. They exceeded budget estimates of $3,711,650,688. lished a new peace-time total of $7,375,825,165.57, including $3,654,- 590,530.81 of “emergency” spending. This compared with $7,105,050,084.95 in the previous fiscal period, which included emergency spending totaling $4.004,135,550.81. Total expenditures of $8,581,069,026 had been estimated in the President’s budget. Of this amount, it was cal- culated that $5,259,802,852 would be disbursed for recovery and relief, The gross public debt increased during the year from $27,053,141,414.48 to $28,700,892,624.53 at the close of business June 29. That date this year marked the end of the fiscal year 1935. Morgenthau Comments. In a statement supplementing for- Secretary Morgenthau, the Treasury pointed out the net balance in the general fund on June 30, 1935, was $1.841,000,000. & decrease of $741,000,- 000 in the year. ‘The Government held net assets in the form of obligations which on May 31, 1935, aggregated about $4,307,000,- 000, the proceeds of which when re- paid may be used to retire the public debt. Public debt retirements of $573,000,- 000 were made from the sinking fund and other miscellaneous sources dur- ing the year, as required by law. These reductions were, however, more than offset by new borrowings. Money market conditions during the year permited the issue of new debt at low rates of interest, the depart- ment said. Although the public debt increased by $1,648,000,000, the com- puted annual interest charge decreased more than $90,000,000. The average price the Treasury is paying for money at present is less than 2.70 per cent. PHILLIES BENCH W_ARMER IN 1913 GETS COURT SEAT By the Assoclated Press. TOPEKA, July 2—Hugo T. Wedell, who quit the Phillies and organized base ball in 1913 because he didn't like to sit on the bench, gladly ac- cepted a seat on another bench yes- terday—that of the Kansas Supreme Court. Wedell was appointed to the court by Gov. Alf M. Landon to fill a va- cancy caused by the resignation Sat- urday of Chief Justice William A. Johnson, dean of American appellate court jurists. The new justice played in the Ne- braska State League and the Tri- State League of Pennsylvania, Dela- ware and New Jersey before his un- satisfactory tryout with Philadelphia. He returned to study law at the Uni- Love found a way for Miss Mary Pa- lone, 19, yesterday, but such & devious one that the police of five States were looking for cupid as a kidnaper. Earlier in the day & man came to the home of the girl’s mother and, flashing & badge, said he wanted to question the young woman concerning her elopement last year which ended discovered her and this evening received a telegram from Norwalk, Oflnn..ltyinlflntfllnl had just been married. versity of Kansas. After his graduation he went to Chanute, Kans, where he practiced law and became successively county attorney and city attorney. Mauretania Sails to Doom. SOUTHAMPTON, England, July 2 (#).—To the strains of a band playing “Auld Lang Syne” and as a large crowd waved farewell, the Mauretania, once proud queen of the seas, sailed yesterday on her last voyage—io & scrap heap at Rosyth. ¢ $3,800,467,201.96, compared with $3,- | Expenditures in the year estab- | mal announcement of the figures by | ©One of the quartet fled through the gunfire to freedom; the fourth cringe behind a wall, where guards found | him within 20 minutes. None of the four was armed, Supt | A. F. Miles said. | _Simon Dyer was the prisoner killed, | Robert McAllister was gravely wouncd- ed and Robert Sanders was recaptured. More than a score of guards, aug- | mented by officers from surrounding | towns, spread into the country near the reformatory at daylight under | orders to “beat the bushes” for Darrell l Paul Jones, suspected ringleader of the attempted break, believed to be wounded. It was the largest break ever at- tempted at the reformatory here, Supt. Miles said. The institution was built in 1922 to accommodate youthful prise oners convicted of less serious crimes. Guard Ralph Wright, who from his post in a high tower discovered the break as the quartet scaled a 6-foot fire wall atop the administration building, stopped the rush of three of them. He fired from a distance of 20 | yards after they disregarded his shouted warnings to halt. Wright said he believed one shot struck Jones. The first blast from the | guard’s riot gun knocked Dyer off the wall. McAllister tumbled 6 feet to the roof of the building, shot in the back | and shoulders and bleeding internally. Sanders dropped behind the fire wall, but Jones dashed on over the | roof, dropped to the ground and ran, PHILIP BRUNO CONVICTED IN 4 ELECTION SLAYINGS Found Guilty of Manslaughter, Mercy Recommended—Five Kinsmen Acquitted. By the Associated Press. POTTSVILLE, Pa,, July 2—A jury of nine men and three women late yesterday convicted Philip Bruno of manslaughter in each of four slayings in the Kelayres election eve mase sacre. Five of his kinsmen on trial with him were acquitted. The jury recoms- mended mercy for Bruno. Frank Bruno, member of the fam- ily and one of its counsel, moved for & new trial for Philip. No date was set for argument. The Commonwealth had asked first- degree murder verdicts. The trial was the third in the slayings, five in all, which climaxed & bitter political feud in the mining village of Kelayres. The seven de- fendants, including Joseph Bruno, have been tried for four of the deaths and indictment in the death of William Forke remains against each. MARION TALLEY DENIES REPORTS OF SEPARATION Singer, in Hollywood, Says Hus- band Will Rejoin Her There Within a Month. By the Associated Press. HOLLYWOOD, July 2.—A reunion between Marion Talley, opera singer, and her hushand, Adolph Eckstrom, musician, will take place here “within s month,” she said yesterday, em- phatically denying reports of a sep- aration. Miss Talley, here for film work, said conflicting professional engagements forced her to part from Eckstrom two weeks after their marriage last March 23. She said he would join her as soon as he is able,