Evening Star Newspaper, July 12, 1935, Page 2

" A—2 &2 T.1. A CONII SOCALSTCFEARS Passage of Bill Permits U. S. to Wreck Private Companies. RY DAVID LAWRENCE. If the utility executives of the country have any poetry left in their souls—and they are pretty well fraz- vled after their long fight here—they will still be able to quote the famous poem of Southey, made even more famous recently by President Roose- velt when he quoted the line, “But *twas a famous victory.” The utility companies have been contending that the Roosevelt ad- ministration was about to put the Government into competition with them and ultimately to force them out of business. This has been vehe- mently denied. Now comes the ad- ministration and puts pressure on the House of Representatives and secures a victory whereby: First, the Tennessee Valley Author- ity is not required to sell electricity at cost or above, but may continue to sell it below cost indefinitely, with the American taxpayer footing the bill in the form of a Government subsidy paid for out of tax receipts. McCarl Safeguard Rejected. Second, the Tennessee Valley Au- thority is not required to submit its expenditures to the same kind of an audit as every regular establishment of the Government. This was ac- complished by rejecting the recom- mendations of Controller General Mc- Carl that the T. V. A. be required to buy materials on a bidding system and conform in other ways to Govern- ment rules. Third, | thority may build transmission lines to compete with those of private com- panies and may use its financial re-| sources to force the sale by private ! companies of their lines to the Fed- eral or State or city governments. Fourth, the Tennessee Valley Au= thority may build whatever dams or projects it may deem desirable and | conrect them into one or more power systems. Trus the Federal Government, by the terms of the House and Senate Eills about to become law, has defi- nitely entered the power business, and the socialistic demand for public cwnership has at last been fulfilled | by the New Deal. “Purely Secialistic.” It was Norman Thomas, Socialist cancidate for the presidency, who £cid the T. V. A. was the only purely ' sccialistic project of the New Deal And now Congress has removed all | Goubts on that score by the new pro- | visions granting to the T. V. A. the | right to do anything and everything necessary to conduct a power system | or systems. | The utility companies have been t:ying to prove that the Government was bent on their destruction alto- gether, but they have had no proo! of it except general charges. Now the language of the new T. V. A. law confirms their charges and makes the issue clear enough for the country | to understand. For this, the utility executives and utility investors, who own about $12,000,000,000 of securi- ties, have both houses of Congress to thank, and the administration in rarticular. T. V. A is at last in the open as a Government competitor and as a Government business for the | financing, management and operation of power generation and transmission in a vast area of the South. Reasons Explained. Just why the members of the House who, 2 few days ago, refused to accept the administration’s dictation on the | matter of a death sentence for hold- ing companies, should turn around and vote extensive authority to the T. V. A. may seem on the surface a | contradiction of view. Actually. | many members thought this was a | good chance to retrieve themselves | with the administration. Others | thought that, since the T. V. A. was | 2 going concern, it ought not be #topped at this stage. Others thought 1t would be an excellent thing to| make the T. V. A. issue clearer and see whether, having been granted all the necessary funds and authority, it would prove to be a “yardstick” for the measurement of electric power costs or just another Government adventure in the realm of high-cost operation of a private business. Other Fights in Prospect. ‘The utility men are far from grieved about the result. They think that T. V. A. will be invalidated in the courts, anyway, but they have been presented with the best argument they have had in two years. - For, if the Government can get excited about a $650,000,000 electric light bill, it might go into the food business, which in- volves an expenditure of many times that sum: the clothing business, | which is again many times the electric light bill, and there would then be a completion of th socialistic program, wherein the tax burden rises to the point of breaking down the whole economic system. Already the Presi- dent has said he would extend his fight against holding companies in the utility field to holding companies in all other lines of business. So, to sum up, the administration scored a victory on the T. V. A. act, but it will be a “victory” that will Temain for a long time in the chan- nels of public discussion till the peo- ple decide whether they want Gov- ernment entering as a competitor and ultimately as the master of all man- ner of private businesses. e NAVAL PILOT MAKES FAST {TIME ON HOP TO COAST Lieut. Comdr. Radford Flies From Bolling Field to San Diego in 11 Hours 15 Minutes. By the Associated Press. SAN DIEGO, Calif., July 12.—Lieut. Comdr. A. W. Radford, member of the Navy Bureau of Aeronautics, landed , here yesterday at 6:45 p.m. (Pacific standard time), after 11 hours 15 min- utes fiying time from Boiling Field, ‘Washington, D. C. Radford was ferry- ing a new Grumman single-seated fighter here. “Lieut. Comdr. Radford’s flight was exceptionally fast for a military plane,” Capt. J. H. Towers, com- mander of the naval air station, said. “He made four stops en route—At- lanta, Ga.; Shreveport, La.; Midland, Italo-Greek Tie Strengthened. ROME, July 12 (#).—Strengthening of the Italian-Greek collaboration was assured yesterday in & government communique which stated that Pre- mier Mussolini had received Gen. George Kondylis, Greek minister of -war, for » second audience, the Tennessee Valley Au-| What’s What Behind News In Capital Salaries Represent 50 Pct. of Expenditure in Work Relief. BY PAUL MALLON. | OST arithmetics still say that two plus two equals four, but that hasty conclusion appar- | ently was reached before the | new relief program was worked out. | The next editions will at least have | to state the problem in a different | way. If they follow the relief stand- | ards, they will have to say that, while two plus two equals four, if you sub- tract two from four you still have | the same old original two. For instance, President Roosevelt I has lately been stressing the idea that relief matter is one simply’ of num- | bers and computation. There is a | certain fixed number of people who need relief and a fixed amount of money for that purpose. You merely divide the amount of money into the number of people and you have the program—$1,140 a year per man. That answer has been given so often | that even the headline writers and copy readers over the country believe that the average payment to each man on relief is $1,140, or nearly $100 per month. The fact is the average wage pay- | ment is to be about half that, or | around $600, which is $50 per month. | | but rumors persisted that Gov. Paul | were the purpose was to allow tempers | supervises island possessions, is back- | during the investigation. THE EVENING STAR, WASHINGTON, D. $750 Will Open This Pool to Children TWO MAY RESIGN INVIRGIN ISLANDS Surprise Move by President Expected as Controversy Continues. By the Associated Press. A ‘“surprise move” by President Roosevelt to settle the deep-rooted controversy over administration of the Virgin Islands was hinted today in authoritative circles. Brewing for more than a year, the islands’ trouble pot finally boiled over into a blazing feud between Secretary Ickes and Senator Tydings, Democrat, | of Maryland, leading the President to| intervene yesterday. | No official would comment publicly, M. Pearson and T. Webber Wilson, Federal judge on the islands, would step out of their posts. No official confirmation was obtained. Session Abruptly Reocessed. Pearson and Wilson were chief characters in the Senate investigation | of Pearson's administration, which was abruptly recessed yesterday. The postponement was announced after Tydings, chairman of the investigat- ing Territories Committee, and Ickes had called at the White House. None would say why the hearings had been called off, but indications | to cool. Tydings said the sessions probably would be resumed next week. Ickes, whose Interior Department ing Pearson, a Hoover Republican ap- pointee, and has demanded the resig- nation of Judge Wilson. He accused Tydings of “whitewashing” the judge | That accusation brought fsom the Maryland Senator a suggestion that | KIDNAP “CHISELER” HELD IN NEW YORK Alleged Extortionist De- manded Cash in Abduction Cases, Hoover Says. By the Associated Press. NEW YORK, July 12.—FPederal officers held Alfred Wagner of Brook- lyn today on a charge of extortion— | the demanding of $465,000 in ransom | from the families of seven missing persons. The 38-year-old ex-conviet was a “misery chiseler” who had no part in the kidnapings and other mysterious disappearances, said J. Edgar Hoover, chief of the Federal Bureau of In- vestigation. Hoover asserted he was “particularly vicious” and “made the | arrest of the real kidnapers more difficult.” | Wagner was seized at the ransom rendezvous named in letters demand- ng $75,000 for the safe return of 82-year-old Charles D. Towt of nearby yack. Towt, a retired broker, stiil is missing. Weyerhaeuser Demand. Hoover said Wagner also had de- manded the $200,000 ransom for George Weyerhaeuser of Tacoma, Wash. Other ‘“chiseling” attempts | which Hoover charged against the paroled Sing Sing prisoner were: | For Dorothy Ann Distelhurst or; Nashville, Tenn. whose mutilated | body was found while her father was | trying vainly to reach the kidnaper in New York, $50,000. For Mrs. Berry V. Stoll of Louis- ville, Ky, freed by her kidnapers, | For William Weiss of Philadelphia, | kidnaped and slain, $50,000. | For Mrs. Ann Booth Gordon of Farmington, Conn. found drowned Mr. Roosevelt has always added as | an afterthought to his $1,140 figure | that it includes materials and labor, | | but this afterthought is not always printed. No publicity has been given out as to what the cost of materials and overhead really will amount to. If you look into that, you will find | | these are now being roughly estimated | | (unofficially) at 40 per cent for ma- | terials and 10 per cent for overhead, or 50 per cent for both The overhead will include the cost of 49 Works Progress directors, 48 Public Works directors, 48 National Emergency Council directors and their | staffs, as well as 4,000 to 5,000 work- ers now at various headquarters here. The annual cost of this set-up will be around $400,000,000. The ratio of materials cost in the | State and city programs thus far em- 1 | amined is about 30 per cent. This ratio will increase to a maxi- mum of 50 per cent when work starts | on grade crossings, P. W. A. projects, housing, roads, etc. A rough esti-| | mate of 40 per cent may be considered conservative. Thus, the actual rate of pay will| certainly get down to a point where | Senator McCarran and his lmcuwd‘,‘ screamers for prevailing wages may | become slightly displeased. An ambiguous word has led to some | misunderstanding about the current trend of business financing. An announcement was published by | the Securities Exchange Commission | recently that $320,000,000 out of f-hel $328,000,000 of corporate financing | | registered last month was new financ- ing. If that were true, it would mean that the frozen capital market has thawed, that business is raising new money to finance expansions. It would indicate a boom is on the way. Investigation discloses that what the commission means by new financ- | ing is not exactly what the word im- | plies. It includes all refunding | bonds sold in the open market. The fact that only $56,000,000 of the $328,000,000 of registrations last| month actually represented . new financing. The remainder was re- financing to take advantage of lower interest rates. This is a horse of somewhat different hue, and not ex- actly a “new” one in any sense of that blanket word. It was the master mind of New Deal publicity, Mr. Charles Michel- ! son, who leaped on his horse and spread the word among New Dealers to stay away from the University of Virginia forum on public affairs. 7 AW HA/ R Mr. Michelson is supposed to have detected the shadow of Jouett Shcuse, head of the American Liberty League, lurking on Thomas Jefferson’s campus. | At least he suspected that Mr. Shouse, through friendship with an officer of the university, had arranged to present certain anti-New Deal speakers under auspices of his league. The plot, as Mr. Michelson saw it, was to lure New Dealers down to the forum and let Mr. Shouse’s speakers gnaw at their principles, sandbag their arguments. This is the reason why so many New Dealers suddenly developed previous engagements or Summer colds after promising, or at least invited to appear. Those thus af- flicted are supposed to have included Prof. Moley, Representative Lewis of Maryland and Senator Holt. | The Federal Reserve Board mem- | bers may never get pensions because Chairman Steagall of the House Banking Committee went out to get a cup of coffee. It happened this way: Steagall was in charge of the new bank bill in the House. He inserted the provision requested by the board, granting board men pengjons of $6,500 8 year (half pay). But when this provision was under considerat'cn he developed a great thirst for a cup of Java. While he was out getting it the House eliminated the provision. It is understood that Mr. Steagall's thirst arose from the fact that Con- gressmen do not get pensions them- Selves and do not see why other offi- |HARVEY OFFERS TO AID {for a moment as a suitable person cials should have any. (Copyright. 1935.) —_— JUST ESTELLE TAYLOR Former Wife of Jack Dempsey Resumes Maiden Name. LOS ANGELES, July 12 (#).—Once again the neme is simply Estelle ‘Taylor. Superior Judge Parker Wood today granted ‘he fcrmer actress, the one- time wife of Jack Dempsey, the right to resume her maiden name:. She re- quested the change for convenience in the transaction of her business affairs, ) Ickes should “first get elected to the United States Senate” if he wishes to tell 1t “how to conduct its busines He also accused the Secretary of “de- | ceit” in issuing press releases. | Former Congress Member. Wilson is a former member of Con- | gress from Mississippi and has the | backing of Senator Harrison, an ad- | ministration leader who also comes | from that State. The judge was ap- | pointed by Attorney General Cum- ' mings and has the support of Post- master General Farley. Harrison and Senator Robinson of Arkansas, the Senate leader, accompanied Tydings to the White House yesterday. Later Harrison said he “couldn't say a thing.” | Some time ago reports were that Ickes was ready to make an issue of | his cabinet post over Pearson’s island | troubles. At a press conference yes- terday afternoon the Secretary denied 1515,000. i and he was awful sympathetic.” in the Connecticut River, $25,000. | For Jackie Kaul, New York boy who | apparently was accidentally drowned, Letters Disguised. In each case, Hoover said, Wagner carefully disguised his letters, but the Federal bureau’s crime laboratory traced them all to one author. The writer evaded traps until Wednesday, | when Wagner was seen peering from | an unused factory building in Brook- | lyn. It was there that Monroe Towt, | son of the missing man, was to have met the extortionist “I don't believe it,” said his wife. “He was always reading about kidnaps | Arrest Is Hoover's Answer. ATLANTIC CITY. N. J., July 12 (). | as the extortionist who sent ransom C.,, FRIDAY, JULY 12, 1935. HOUSE SEEN THORN IN SECURITY PLANS Vote on Senate Amendment to Exempt Private Sys- tems Is Feared. By the Associated Press. Adminisiration men expressed con- cern today lest the Roosevelt social security program be “wrecked” by a dispute over exemption of private pen- sion plans. The unused swimming pool in the Y. W. C. A. Building at 614 E street, which the association offered to the children of that neighborhood today. > Y. W. Pool for 1,500 Children In Hot Downtown Awaits $750 Star Offers $100 Toward Fund Re- —Star Staff Photo. £OLD SUITS BILL * GIEN APPROVAL quired for Restoration of Swimming House Committee Acts as Place at 614 E Street. A complete Y. W. C. A. swimming pool can be made available immedi- | ately for 1,500 children in the hot. downtown residential area around Sixth and E streets if Washiagtonians will contribute $750 for maintenance | —The arrest of Alfred Wagner, held |and life guards The Star will contribute $100 to that either he or Pearson would re- | \Ct1€rs to the kin of seven missing per- start the fund and accept donations in sign. He gave no hint, however, that | 005 Was J. Edgar Hoover’s “Exhibit | a campaign being spcnsored by the he was ready to drop his quarrel with | ; today in his attack on what he | Central Neighborhood Council of the Tydings. Soon after it became known the | President had stepped in, many un- Tms “the national scandal of the | parole system.” | Hoover, chief of the Federal Bureau Council of Special Agencies. ‘The unusued pool offered by the Y. W. C. A is in the basement at confirmed reports immediately began | Of Investigation, opened the Interna- | 614 E street and has not been filled circulating. including one that a group '40nal Police Chiefs’ convention with | for eight years. The fund sought of Democratic Senators, long at odds | 87 attack on pArple methods and will operate the pool for the three with the Secretary, would seize this Closed the convention last night bwemonths of hot weather remaining. opportunity and attempt to force Ickes | out of the cabinet. | In the House particularly members ' of Congress have complained against Ickes, saying they were not properly treated in their efforts to talk with him on public works and other matters. | To reporters asking yesterday wheth- | er he would resign, Ickes replied: | “I kind of like my job. It keeps me | interested.” MOTHER ALSO DIES IN MERCY SLAYING Fate Fulfills Last Wish of Wom- | an Who Asphyxiated Ab- normal Son. By the Associated Press. KALAMAZOO. Mich, July 12— Mrs. Paul L. Tubbs, key figure in | what police described as the “mercy” | killing of her 9-year-old abnormal son Jesse, died last night, a victim of gas axphyxiation. Mrs. Tubbs was found unconscious in her home Saturday, her son dead in her arms. The gas jets of the kitchen stove were open and a note described her despondency over the condition of the boy. Mrs. Tubbs did not regain con- sciousness after being taken to the hospital. The boy had never been able to talk, and friends of the fam- ily said she brooded over his condi- tion. In her farewell note to her hus- band, Mrs. Tubbs said “I brought him into the world and I'm going to take him out with m LONG PRESIDENCY RACE Liberal Party Candidate in 1932 Asks Senator Adopt ‘‘Anti- Usury” Theme. By the Assoclated Press. ROGERS, Ark., July 12—The “Sage of Monte Ne,” William Hope “Coin” Harvey, plans to engage in another presidential campaign—probably back- ing Senator Huey P. Long of Louisi- ana. Disclaiming ambition for personal glory, the monetary prophet of the nineties issued a formal statement interpreted as offering his active sup- port to Long in the 1936 campaign. “Roosevelt is not to be trusted to remain in office,” said the 83-year- old economist-politician. Harvey intimated he would cast his lot with Long if the Senator will adopt his “anti-usury” theme. “Usury” is a term Harvey applies to virtually all forms of interest. —_—_ Plane Photography Banned. MADRID, July 12 (#).—The Official Gazette today published a decree for- bidding private individuals from using any photographic apparatus during airplane flights over Spain. Senate. Continues A. A. A. debate. House, Takes up private bills. TOMORROW. Probably will not be in session. House, ‘Will not be in session. L] announcing Wagner, a paroled Sing, Sing convict, had been trapped in Brooklyn. The arrest, he said, was his answer | to Warden Lewis E. Lawes of Sing | Sing, who had defended the parole system against Hoover's earlier attack, ATTORNEY IS ACCUSED BY WOUNDED RZPORTER Cormack Says Miami Shooting Followed Altercation Over Recent Story. By the Associated Press. MIAMI, Fla, July 12—S8hannon Cormack, Miami Beach Tribune re- porter, who recently was shot in his cwn newspaper office, testified ves-| terday his assailant was O. B. White, | Miami attorney | Cormack’s testimony was given at & preliminary hearing for White, who | is charged with assault with intent| to kill. | The shooting, the reporter declared. resulted from an altercation which originated when White took excep- tion to a story written by Cormack about the recent mysterious killing of William Estas, roadside drink stand operator, in which White's name was mentioned. | WEAPONS FOR HONEST Maryland Adjutant General Rec- ommends Limited Arming. ATLANTIC CITY, N. J., July 12 (#).—Maj. Gen. Milton Record, adju- tant general of Maryland, recom- mended yesterday the possession of weapons by “honest citizens.” “We believe that firearms in the hands of honest citizens are not a detriment,” he told the International Association of Police Chiefs. He said gun dealers ought to be licensed and held responsible for sales, and those who wished to carry concealed ‘weapons should be required to obtain permits. The association elected Andrew J. Kavanaugh, chief of the Miami, Fla., police, as president and selected Kan- sas City for its forty-third conven- tion. JAIL GARDEN LOSS Tulsa Authorities Close Robbed by Squatters. TULSA, Okla. (#).—The city jail garden has been abandoned because of thieves. The garden, where petty offenders were put with a hoe this Spring, can't operate at a profit because “squatters” in the neighborhood steal the vege- tables, Police Chief Carr explained. He estimated the city spent $250 on the garden, harvested $5.15 worth of produce. Place Miss M. Edith Coulson, secretary of the council, said opening of the pool would fill an important gap in the lives of the children in the area bounded by the Mall, North Capitol street and Eleventh and O streets. Places of Collection. Contributors are asked by the coun- cil to send donations to its head- quarters, 1101 M street, or to The Star. Backers of the plan are anxious to raise the remaining $650 before | the Summer is too far gone to make the contemplated three or four months’ operation practical. The pool | will be opened tc swimmers witnin five to seven days after the money is | raised Miss Coulson promised. | When the Y. W. C. A. opened its | Seventeenth and K streets pool. con- tinued operation of two tanks was found to be economically impossible, 5o the one on E street was abandoned and for years has been as dry as last Summer's drought, with the pool room the receptacle for old chairs. tables and broken toys, which sre patched up for charity distribution at Christmas time. Miss Coulson said the requested 750 would clean the premises, fill | the pool, start nine showers flowing again, provide a daily scrubbing, con- | stant chemical treatment, light, heat, bathing suits and even soap and tow- els. Itemized roughly, expenses for | physical upkeep of the pool for four months would be as follows: Lighting, $90; water, $55; coal for some heating of the pool water and for hot show- ers, $90; labor and cleaning of the pool, $83; chemical treatment, involv- ing the purchase of chlorine, alum | and soda, $24. The balance would be | used to provide inexpensive jersey bathing suits, towels, soap, repairs to the pool and dressing room and probably a paid full-time supervisor. | Doctors and Nurses. Dr. Margaret Nicholson of the ! Children’s Clinic has offered to sup- INFLUENCE CHARGED I I | IN DAVIDSON WILL! | Objectors to Disposal of $500,000 | Estate File List of Particulars. By the Associated Press. CARTHAGE, N. C, July 12—Ob- jectors to the last purported will of Mrs. Elva Statler Davidson, which would give her husband the bulk of her $500,000 estate, today filed a bill of particulars in court here claiming she was subjected to undue influence at the time it was drawn. The bill charges the young woman was unduly influenced by her hus- band of a few weeks, H. Bradley Davidson, jr., formerly of Washing- ton, D. C.; that she admittedly was ill at the time and that for a con- siderable period she had been subject to “mental depression.” Nude Dancer and All France Await “Immorality” Verdict By the Associated Press. PARIS, July 12—Miss Joan Warner of Narberth, Pa.. became the woman of the hour in Frapce today, awaiting calmly court judgment as whether her nude dancing i damaging to Paris morals. The judge, coupser for both sides| and famous witnemes vied in paying tribute to Miss Wsrner's hign char- acter and refinement in speeches scin- tillating with Parisian wit. Every- body seemed to de ner friend. M. Bauverat, vice president of the National Association for the Increase of French Populstion, which biought the charges against the blond dancer, alone upbraided ier yesterday auring her court hearing. Nevertheless, tie prosecutor asked formal condemnation ot Miss Warner to uphold the iaa. Miss Warner herself testified: “Gentlemen, I serve srt and oothing else.” She was supported in her tes- timony by Paul Cuccs, famous Prench distance fiyer, and othe~ widely known persons, including writers and artists. A decision by tue vourt on Bauverat's request that Miss Warner be puaished “for the principle of the thing” is expected to be handed down next week. ply doctors and nurses for free health inspection of all pool users. Since boys and girls will not use the tank et the same time, suits for the former probably would not be required. Suits sterilized after each wearing would be supplied the girls. The American Red Cross has been asked to furnish life guards. To avoid overcrowding and confu- sion and to insure that the pool's re- sources be available only to those in the central area whose needs are pressing, hours would be assigned the various welfare groups in the region. For instance. & Salvation Army group accompanied by a supervisor, would use the pool! from 9 to 10 am. fol- lowed by a Boys' Club or Vocational School group until all such organiza- tions had been accommodated. It is planned to maintain the tank at night for groups of adults and older boys and girls. The pool is 40 feet long and 30 feet wide. When filled to the brim, 7 feet is its greatest depth and 4 feet its most shallow. When the youngest and least experienced swimmers are in | the tank, the water level can be low- | ered according to the demands of | safety. Life guards would offer free swimming instruction. WALMSLEY. ALONE, DEFES LONG RULE Leaders Desert Mayor and District Attorney Quits as Pressure Grows. By the Associa‘ed Fiess. NEW ORLEANS, July 12—Pre- sented with a formal request for his resignation by leaders of his own po- litical organization, Mayor T. Semmes Walmsley today curtly refused to quit his office and reiterated his deter- mination to continue his fight against Senator Huey P. Long alone if neces- The resignation request was sub- mitted at a secret caucus of “old regular” party leaders, a majority who had signed a round robin yesterday, and followed closely the resignation of | District Attorney Eugene Stanley, aligned with the mayor in the fight to prevent Long from grasping control of the city. After the mayor refused to resign, the caucus appointed a committee of nine ward leaders to call on Senator Long and “present an appeal to authorities of the State for the ending of all political warfare so municipal government may be per- mitted to resume its normal func- tions.” Move Taken as Surrender. The action of the “old regulars” was interpreted as signalizing the surren- der of Walmsley's organization to the Louisiana “dictator.” State Senator Charles A. Byrne, a Long supporter, was quickly sworn in to succeed Stanley. Supporters of Mayor T. Semmes Walmsley deserted him in the mean- time to make peace with Long’s State administration. Six special sessions of the Legisla- ture, directed by the Senator, wrote the end to local self government in New Orleans. The last one, completed Monday, took away Walmsley's city | patronage and stripped the city of its tax collecting authority. The session also made District Attorney Stanley's assistants and clerical help appointive by the attor- ney general. Stanley said some of his assistant district attorneys were already desert- ing him in the hope of obtaining reappointment by the attorney gen- eral. Hits "Disloyal” Workers. He said he realized he could not “hope to efficiently conduct the office in the future with assistants and an office force disloyal” to him. “By freeing myself of the respon- sibilities of the district attorney's office, I shall be able to devote my every effort to assist in restoring constitutional government in Louisi- ana, which I now pledge myself to do,” Staaley said. Oscar R. Whilden, official of the State-wide Anti-Long Square Deal Association, pledged Mayor Walmsley the “unanimous physical support” of the association, the | I Senators Discuss Inflation. By the Associated Press. The House Banking Committee to- day approved an administration bill to bar suits against the Government to collect alleged damages arising out of devaluation of the dollar Inflation possibilities of this legis- lation, high on the administration “must” list, simultaneously were being discussed by the Senate Banking Committee. Treasury experts denied that such & possibility, mentioned by commit- tee members, existed McAdoo Raises Question. Senator McAdoo. Democrat. of Cali- fornia, a former Treasury Secretary raised the question when John G. Harlan, assistant general counsel of the Treasury. said there were about $10,000.000.000 of outstanding gold clause obligations affected by a reso- lution provision which would allow holders of such obligations to ex- change them for cash Harlan contended that the resoiu-‘ | tion did not authorize the issuance of any new currency. He said the Treasury would obtain the money by the issuance of new bonds, as it has | obtained refunding money in the past. | Senator Maloney, Democrat, of | Connecticut, suggested, however, that cancellation of the right to sue for | damages might create a “buyers’ | strike” in which it would be im- | possible to float new bonds. The Treasury expert contended also that in all probability only a small part of the outstanding $10.000.000,~ 000 would be presented for cash. Persisting in his questioning. Mc- Adoo asked, however, what would happen if all $10,000.000.000 were presented and the Government could not obtain the money through the | bond market. “Both assump'ions are unreal,” J G. Laylin, another Treasury ccunsel, interjected. “It's conceivable,” McAdoo insisted, “that so many would be turned in that the bond market coulcn’t absorb the new issues. “Then just pass another act re- pudiating this promise,” Senator Ad- ams. Democrat, of Colorado, suggested sarcastically. Selling Above Par. Laylin replied it was “iuconce.vable” all the bonds would ve turned in be- cause they are ncw selling above par, and carry higher interest than new bond issues. The controversy ended there. but | Senator Steiwer, Republican, of Ore- | gon said he was concerned over the effect the resolution might have on | Government credit ord asked that | Morgenthau be calied to testify Mon- day. “The effect on credit is a thing that Congress must cecide,” McAdoo | replied. Attorney Gencral Cummings had told the House committee the United | States might susiain a potential loss of $7.000,000,000 on gold clause suits should hoiders of au the $1,000,- 000,000 in gold clause securities be able to prove damages The $7,000- 000,000 represents the difference in the gold face value oi the certificates and their present value in devalued | dollars. 45 GERMAN VETERAN GROUPS DISSOLVED Subversive Tendencies Charged to Baden Helmets by Interior Ministry. By the Associated Press. KARLSRUHE. Germany, July 12.— The ministry of the interior today dissolved 45 groups of the Baden Steel Helmets, the German veterans’ or- ganization, on charges of subversive tendencles. The dissolution order says that the local ranks of the Steel Helmets were swelled by former opponents, “under whose influence the Steel Helmet or- ganization turned into political oppo- sition to the Nazi movement, thus seriously endangering the _political unity of the German people.” e SAILORS HURT IN BLAST PARIS, July 12 (#).—Seven sailors were seriously injured today in an ex- plosion. aboard the new submarine Espoir off Toulon. The injured were taken to a hospital ashore by speed- boats. The explosion occurred in the battery room. A | Conferees have been working on the | program, attempting to straighten out | differences in the bill as passed by House and Senate. For two weeks they | have been tied up in a controversy |over the Senate amendment to ex- | empt comnaniez and workers covered by private persion plans from the | taxes to be levied for the Nation-wide iold age pension system. They met ]agnm today in an effort to work out | a settlement. Danger Seen in House, Informed Senators have forecast that the conferees will fail to agree and the dispute will have to be car- ried back to the two houses for settle- ment From the administration standpoini, however, this course pre- sents some dangers. The House has not yet voted on the ivate pensior amendment. It prob- ably would be called on to vote first and if the amendment should be ap- proved at that end of the Capitol, it woudld be in the bill to stay. Critics of the amendment contend it wouid endanger the entire program and might bring a presidential veto They argue the amendment wouid permit private companies to keep their younger employes in their private sys- tem and leave the older workers for the Government to carry. Private Plans Liberal, On the other hand, those sup- porting the amendment argue it would permit some existing private pension plans, which are more liberal than the proposed Government system, to continue in operation. They suggest that without the amendment these private systems, some of which have accumulated millions of dollars, would be junked. Then, if the Pederal plan were declared invalid, the workers would be left unprotected, these legis- lators argue. Some believe President Roosevelt | may be callec on 1o intervene to settl: the dispute. | Several other points also are still in the process of negotiation betweer the conferees for the two houses, bu leaders feel none of them presen: difficulties comparable 1o the privat. pension issue. . BRITON OFFERS DUEL TO SATISFY ITALIAS Fish Merchant Would Fig!.- Fanelli, Who Challenged Commons Member. ! By the Associated Press. LONDON, July 12—Edward Dickinson, Billingsgate fish merchan: has announced himself hot for action to turn “the fire-eating Italian.,” Capt G. A. Fanelli. “into a salamander. Revealing he has challenged the Italian challenger of his fellow-Briton. | Maj. Clement Richard Attlee, who turned down Fanelli's proposal for a duel on the ground that it was “ob- | solete and barbarous,” Dickinson said | “I believe in the freedom of speech | enough to fight for it.” | Dickinson, who describes himself a: {“just an ordinary individual” is a husky 6-footer. He spent 17 year: |in Australia, where “I learned t 'look after myself." He said Fanelli weapons. | | may choose Capt. Fanelli. former editor of = Fascist paper, challenged Maj. Attlee to a duel because of the latter's criticism of Premier Mussolini in the British Commons on the Ethiopian question. e e SWAP OF SECURITIES LIFTS R. F. C. CONTROL Jones Announces Completion of Deal in Public Utilities Securities. Corp. By the Associated Press. | NEW YORK, July 12—Jesse H | Jones, chairman of the Reconstruction | Finance Corp., announced last night | ‘he completion of a transaction where- i by the R. P. C. relinquished respo | bility for management of Public ities Securities Corp. | Representatives of the R. F. C. re- | cently elected directors in the com- | pany have resigned, he stated “We traded the notes of the Webster Securities Corp. to the Atlas Corp., for 5 per cent debentures of the Utilities | Power & Light Corp., the latter com- pany being a subsidiary of the Public Utilities Securities Corp. which in turn is a subsidiary of Webster Secu- rities Corp., it was stated. Jones stated the R. F. C. received debentures in the principal amount of the Webster notes with interest to | date, a total of $2.260,000. MELLON TO SELL BONDS Secretary Reveals Expansion of Securities Business. | PITTSBURGH. July 12 (#.—Ex- pansion of the securities underwriting | business of the Mellon Securities Corp. to a public scale was disclosed yesterday by Howard M. Johnson, secretary of Andrew W. Mellon. | Heretofore the company has han- dled securities for the Mellon family and its associated interests. It was formed two years ago, with Frank R. Denton of Pittsburgh as president. Johnson was asked if the move would involve enlargement through the country of the securities organijza- tion. He said: “We hope that great oaks may grow from little acorns.” Johnson discounted reports that Paul Mellon, the financier’s son, would head the firm. 1794 LAW ENFORCED | ‘Woman Serves 12 Hours for Using Profane Language. SUNBURY, Pa., July 12 (#)—Mrs Ada Horato of Treverton served 12 hours in jail for using profane lan- guage. Justice of the Peace A. C. Shoener had fined her 37 cents. It was the maximum penalty under the blue laws of 1794, and she re- fused to pay. 4