Evening Star Newspaper, August 27, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy with showers this afternoon, to- night and possibly tomorrow morning; slightly cooler tomorrow; moderate south- west winds tonight. Temperatures—high- est, 87, at 3:30 p.m. yesterday; lowest, 69, at 6 a.m. today. Full report on page A-12. Closing N.Y. Markets, Pages 16,17 & 18 Entered as second class matter post office, Washington, D. C. No. 33,355. ch WASHINGTON, "CONGRESS ENDS AS LONG BLOCKS SECURITY FUNDS; ROOSEVELT CALLS AIDES ' Filibuster Kills Appropriation . of 102Million. PLOT CHARGED | TO PRESIDENT Louisianan Says Farmers Given Double-Cross. BY G. GOULD LINCOLN. The Seventy-Fourth Corgress is gone in a whirl of strife—not to re- turn to Washington until next Jan- uary. Its first session, almost eight months long, ended at midnight last night. ‘Today the administration is casting about to see where, if possible, funds may be found to set in motion the operation of the econcmic security act | and other activities provided for in the third deficiency appropriation bill, This measure was talked to death by Senator Huey P. Long of Louisiana. It carried in all about $102,000,000, of which $76,000,000 was earmarked for | the economic security act administra. tion, with its old-age pensions and < | A.A.A.,T.V. A. Court Fights Scheduled Next Seeks Rule on Farm Program; Industry Challenges Power. (Copyright, 1935, by the Associated Press.) ‘The parade of New Deal enactmenis to the Supreme Court speeded up today. ‘The Government sought a ruling on constitutionality of the A. A. A. and private interests made ready quickly to challenge the T. V. A. Congress having adjourned, these developments bade fair to intensify dispute over whether the New Deal can be carried on within the Constitution. On all sides was a realization that the course of the 1936 campaign, and | perhaps the national destiny itself, | may be tremendously affected by the | results. Asks Hoosac Review. | The Justice Department asked the | highest court to review the case of the Hoosac Mills in Massachusetts, | under which the Boston Circuit Court | held against the A. A. A. last month. The New Orleans Circuit Court de- | cision upholding the T. V. A. was |involved in a brief prepared by For- ney Johnson, counsel for George Ash- wander and other stockholders of the Alabama Power Co. He made ready | to file it, in an attempt to have the other benefits. Long, a bitter enemy of the Presi- | dent, in his filibuster against the de- ficiency bill last night charged that the wheat farmers had been thrown overboard and that the President and Senators had entered into a conspir- acy to prevent a vote in the House on the cotton and wheat loan amendment to the deficiency bill. Deaf to All Pleas. He turned a deaf ear to all pleas and threats. Charges that he was preventing the aged and the crippled from getting the money provided for them under the economic security bill | — T. V. A. outlawed along with N. R. A, tice Department has this to say: ““This is the A. A, A. cotton process- circuit by a 2-to-1 decision, after a Government victory in the lower Dis- trict Court. agricultural adjustment act. “The filing of the petition was de- ferred awaiting the approval by the (See A” A A—T. V. A, Page 7) ran off his back like water off a| duck’s. Long held the floor against 811 comers until midnight arrived and the Vice President declared ths ses- sion at an end. The House, which in the hope that the Senate might still take action on the deficiency bl | had turned its clock back, then also adjourned. A ‘“‘compromise” agreement between the President and the cotton Senators | entered into after long conferences | yesterday, under which the cotton | farmers are to have 10 cents a pound loans on cotton instead of 9 cents and are to be paid the difference be- tween their selling price and 12 cents a pound, made possible adjournment. ‘The wheat State Senators received nothing. The proposed Government | loans of 90 cents a bushel on wheat, | carried in the Senate amendment to | the deficiency bill, were thrown into the discard. Appropriated $10,250,000,000. | The Congress In the session just| <losed has demonstrated its spending | ability—the greatest total appropria- tions and authorizations ever made in = single congressional session in peace | times. The appropriations reach the stupendous sum of $10,250,000,000. | ‘The second session of the Seventy- third Congress, the first New Deal Congress, appropriated approximately $7,500,000,000. Even when the $2,000,- | 000,000 gained by the Government through the devaluation of the gold dollar and then appropriated for the exchange stabilization fund is added to this sum, the total appropriations for that session fall considerably be- Jow those for the fiscal year 1936. Although the President has found 1t necessary to “‘compromise” here and there with Congress, as he did yes- terday on the cotton loans, he has been uniformly successful in obtaining the passage of his bills to carry forward the New Deal program. The grist of the session now closed | ‘was heavy with legislation of far- reaching import. Standing among these measures are the economic se- curity act, with its old-age pensions and insurance against unemployment; the banking act of 1935 designed to give the Government greater control over the credit facilities of the Na- tion; the public utility holding com- pany act, with its modified “death ntence” clause, and the President’s “'share-the-wealth” tax act, something new in the revenue laws of the coun. try. Neutrality Bill Jammed Through. Driven forward by the fear of America being involved in the war threatened between Italy and Ethio- fln. Congress jammed through in its (See ADJOURNMENT, Page 5. STOCK PRICES DIP IN SELLING FLURRY Heavy Liquidation Forces Lead- ers Down $1 to $3 or More a Share—Ticker Falls Behind. By the Associated Press. NEW YORK, August 27.—Heavy selling broke out on the Stock Ex- change during late trading today, sending leading industrials and other trading favorites $1 to $3 or more a share lower. - The turnover was so large that the ticker tape fell behind floor trans- actions two to five minutes on several separate occasions. Steadying ten- dencies appeared in several issues, however, before the close. Prior to the mnose dive, attributed in most quarters to technical condi- tions and to scalping by bear elements, on the theory that the good news con- cerning congressional adjournment was out, the market had displayed alter- nate periods of strength and hesitancy, but on the whole had given a fairly good account of itself up to 1 o'clock. Some of the pivotal losers included COTTON SUBSIDY A. A. A. Statement Says Loans to Enable Hold- ing of Crop. By the Associated Press The A. A. A. announced today that subsidies to be paid cotton fermers under the new loan and payment plan would be limited to 2 cents a pound. The Government agreed yesterday to lend 10 cents a pound on cotton produced this year under the control program and to guarantee producers a total return of 12 cents a pound. This was a compromise with South- ern Senators, who wanted a 12-cent loan. Chester C. Davis, the farm admin- istrator, explained today that “adjust- ment payments” to farmers under the plan will be limited to 2 cents. Clarifies Situation. Previously it was said in informed quarters that this might mean a farm- er could sell his cotton for 9 cents and receive a 3-cent subsidy, or he might sell his cotton for 6 cents and receive a 6-cent subsidy. An A. A. A. statement said: “This explanation was made to clarify any erroneous imnpression that might have been drawn from the an- nouncement of the new policy yes- terday and in response to inquiries as to whether the producers would re- ceive the difference between the zvers age price and 12 cents in the event the average price declined below the 10-cent level. Expect to Hold Crop. pay producers the difference between the average price and 12 cents is Hm- ited to 2 cents per pound, and if it should develop that prices drop be- low 10 cents—a highly improbable contingency—producers would be ex- pected to put their cotton in the loan and wait for prices to recover.” In other words, should the price go below 10 cents, farmers would be ex- pected to apply for the 10-cent-a- pound loan offered by the Govern- ment and hold their cotton until the market quotations reached that level. Further announcements were pre- dicted as fast as additional details are worked out by the Farm Adminis- tration. R. F. C. Willing to Lend. ‘Willingness to make loans on corn and wheat if the Agriculture Depart- ment favors such action was expressed today by Jesse H. Jones, chairman of the Reconstruction Finance Corp. He expressed doubt, however, that there would be any great demand for wheat loans. He said he did not know what actually would be done about corn; as the crop had not yet been made. 2ENT LIMIT SET “The Government’s commitment to | & 'Leaders Hope for Way Out of Snarl. PENSIONS HELD | BLOCKED NOW McCarl Likely to Halt Diversion of Relief Money. BY J. A. FOX. With major items in the adminis- tration program, including social se- | failure of the third deficiency bill, carrying funds to put them into ef- fect, the President called into confer- ence this afternoon congressional ileu:lers. Daniel W. Bell, acting budget | director, and J. R. McCarl, controller general, to work out a plan, if pos- | sible, of going ahead until Congress | gets back in January. | From Capitol Hill, the President | invited Senators Robinson of Arkansas, | majority leader; Byrnes of South | Carolina, Speaker Byrns of the House |and Chairman Buchanan of the ‘Hou.xe Appropriation Committee. | Prior to the meeting, arranged for 13:30 o'clock, officials were entirely Of the Hoosac Mills case, the Jus- | at & loss as to what might be done. | cept war. | The single ray of hope for obtain- | | ing any appreciable sum lay in the| as to transfer of funds. He is re- lport,ed to have indicated informally | that this avenue is blocked, and, in | provided for, this is not surprising. | i Security Grants Unlikely. | | As the conference was announced, | the Social Security Board was said in up its plans to grant aid to States this year for old-age pensions and | other parts of the social security pro- | | gram. | _ There were reports also that the apprépriation bill because of the fili- buster of Senator Long, Democrat, of | | Louisiana, was contemplating three | radio speeches, starting tomorrow, in ! which the defeat of the legislation and the results, would be discussed. | The outlook for the items covered | | in the deficiency bill today stood about as follows: Social security, $76,000,000, ques- tionable, but probably will wait. ‘The District appropriation of $125.- 000 for social security was certain to | wait. Retirement Fund Out. Other items certain to wait were: Railroad retirement, $600,000. Guffey coal bill, $200,000. Penal institutions, $1,000,000. Administration of the Bankhead cotton act, no specified fund. World power conference, $75,000. Senate investigations, $100,000. Neutrality resolution, $25,000. A $13,000,000 appropriation for soil conservation has been taken care of | under the work-relief bill. A $5,000,000 grant tor potato con- trol under the Agriculture Adjustment E Administration, it was said, might be | cared for by the A. A. A., but this was thought doubtful. There was also a chance for going | ahead with a sea food investigation | under the Pure Food Administration, | which was to cost $600,000, but this was put in the doubtful class. Expansion to Be Modified. ‘There were several appropriations for expanding activities of certain agencles, and these, it was believed, could be carried on in modified form for the time being. These included the Federal Power Commission, for which $1,125,000 was provided, and the Securities Exchange (See ROOSEVELT, Page 4.) o PLANE FLIES TO RESCUE 4 TRAPPED IN ICE FLOE Trawler Fails to Reach Men Be- lieved to Be Starving Off Greenland in Boat. By the Associated Press. COPENHAGEN, August 27—A Dan- ish seaplane was trying today to save four men marooned in an ice floe after a land expedition had failed to reach them. The plane flew from Jutland to Thorshavn en route to the vicinity of Cape Berlin in East Greenland, where the quartet were feared starving in a drifting motor boat. The four, whose plight was learned through an S O 8 sent by radio, were reported to be Leo Hansen, a motion picture man; the wireless operator at Point Walrus radio station, and two hunters. An expedition from the Norwegian trawler Buskoe, equipped with skiis and a sledge carrying food and fuel, attempted to cover the 18 miles from the boat to the victims but was un- able to force its way through the ice. By the Associated Press. BARTLESVILLE, Okla., August 27. —The Winnie Mae, the late Wiley Post’s globe-circling, stratosphere ex- ploring airplane, may forsake the skyways for its last journey. President Roosevelt has signed a bill for purchas of the machine by the Government for exhibition : . the Sears-Roebuck, U, S. Steel, Chrysler, General Motors, Consolidated Gas, North American, Case, Anaconda and pBethlehem Steel, A Smithsonian Institution, but Okla- homa pilots were reluctant to discuss flying it East. It may be shipped. L. E. Gray, Intimate friend gp! Pilots Afraid of Winnie Mae; Plane May Be Shipped Here Post, called the Winnie Mae a “one man ship,” explaining: “I believe I am the only man beside Post who ever flew the Winnie Mae. “If necessary, I would fly it to Washington, but I am not anxious to assume the responsibility.” The Winnie Mae still contains the supercharger and other stratosphere equipment, for which only Post knew the adjustments. Its general condi- tion was called “fair” The ship is stored at an airport here, ! ! The only evening paper in Washington with the Associated Press News and Wirephoto Services. curity, left in the air because of the | WITH SUNDAY MORNING EDITION ¢ Eoening Star D. C, TUESDAY, AUGUST BRITAIN T0 SEEK WORLD CENSUREOF| [TALY AS BREAKER OF PEACE TREATIES Moral Indictment, Like That of Germany, to Be Sought as Substitute for Sanc- tions Policy. |INSISTS IL DUCE’S MOVE | SHALL BE CALLED WAR N A SO LONG, OLD \\§\ IS N . di ix\\\\\ Suez Vigilance Increased, With Rome Reported Ready to Match Mediterranean Maneuvers. Italian Cabinet Is Called by Mussolini. By the Associated Press. PARIS, August 27.— Authoritative sources said this evening that a | British plan for the moral indictment {of Italy in case of aggression in | Ethiopia had been presented to | 27, 1935—THIRTY-FOUR PAGES. #%# Yesterday’s BOY,1 HOPE THE SUMMER’S WORK HASN'T HURT YOUR | Premier Pierre Laval. tute for sanctions — international | penalties to be applied against treaty- ‘ | sador Clerk of Great Britain, in an interview with Laval, said England F T E o 8 ‘f H R e or 1ax Lpasion i e heturns intervention in Ethiopia as “a Colonial , S | campaign” or as anything else ex- | . i g ! The plan was described as a substi- | breakers. | L e omanis wia ot amms- Us S. Will Not Prosecute Walker would refuse to regard armed Italian | ' Justice Department Lifts Ambassador Cerutti of Italy pre- President, irked by the failure-of thes viously had informed the Prench | ing and floor stock tax case, reversed | g4 880 000,000 work-relief act, and, Premier that Italy would appear at on July 13, 1935, in the United States | (na¢ is where McCarl enters the pic- | G€neva September 4 to plead her case | Circuit Court of Appeals for the first | tyre, for he will have the final say 882inst Ethiopia before the League of | Nations' Council. | It was understood that the British Ambassador referred to the moral “It involves the constitutionality of | view of his unvarying requirement | C€Rsure against Germany's rearma- the processing taxes imposed by the | (hat appropriations must be definitely | Ment which was delivered last Spring at Geneva by Italy, France and Great, Britaln as a model for use Premier Mussolini. Such an action would morally indict a treaty breaker in the eyes of the an authoritative quarter to have given | world without risking political and | financial sanctions. Ambassado] lerk indicated that Great hopes the Italians will '(E the 1 jop! A “the {yi-pever confer ence here 10 days ago. British Watch Mediterranean. LONDON, August 27 (#).—The Brit- | ish admiralty scanned the horizo with increased vigilance today as news reached London that the Italian bat- tle fleet had been ordered to prepare for “extensive movements.” ‘The Mediterranean has been trans- | formed into a tense zone bristling with the presence of two potentially | hostile armadas. Unheralded maneuvers reported to have been ordered by Mussolini were interpreted here as a countermove to Great Bfitain’s massing of her Mediterranean fleet within striking | distance of the Suez Canal. | Jealously eyed by Britain as the “life line” to its African colonies and by Italy as a vital artery of supply for some 250,000 soldiers in Eritrea and Italian Somaliland the Suez Canal is felt here to offer far more danger to European peace than the impending Italo-Ethiopian hostilities. Japan in Action. The whole question received im- petus from another quarter as Japan was reported to have followed Ger- many's lead in clamoring for a col- onial “place in the sun.” The Daily Herald said the Japanese government was preparing to open negotiations with Great Britain, the Netherlands and other powers “with the idea of securing immigration rights in the Far East.for some of her millions of surplus population.” The paper said that access to a number of British possessions would be sought for the Japanese surplus. These twin developments confronted Sir Samuel Hoare, foreign secretary, and Anthony Eden, minister for League of Nations affairs, who re- turned to Whitehall today to pre- pare the British strategy for the meet- ing of the Council of the League of Nations at Geneva September 4. Mussolini is expected to demand then the expulsion of Ethiopia from the League in rebuttal to the British gov- | ernment’s insistence on a showdown 15 Reported Arrested. The foreign office today awaited official information regarding the re- ported incident in Massawa, Eritrea, where 15 Indians, British subjects, were arrested by Italian authorities. | A dispatch from Aden, Arabia, said they were arrested for telegraphing their associates to ship no more mer- chandise to Massawa. British Army maneuvers, with thou- sands participating, have been car- ried out quietly in Western England in contrast to widely bally-hooed Italian mimic war on the Austrian frontier. Senator James P. Pope, Democrat, of Idaho today arranged to pay & “courtesy call” to Hoare at the for- eign office tomorrow, where he will (See ETHIOPIA, Page 3) Readers’ Guide Cross-word Puzzle Editorials _ Finance Lost and Found Sports _ A-13-14-15 ‘Washington Wayside ____A-11 Women's mtum.s!o. B-12 i Threat of Criminal Action in Courts. By the Associatél Press. | The Justice Department announced | today it will not prosecute James J Walker, self-exiled former mayor of | Government attorneys said thought the Government's slate is | now clear as far as Walker is con- cerned. | | Unless New York State charges are | pending against the former mavor, he will probably be free to return to America from England if he chooses. | The Justice Department sald a thorough study by tax experts here | and by the United States attorney in New York showed “there has not been | found sufficient evidence to prosecute | for a criminal offense.” | Walker left America under fire of | egal attack after his New York ad- ministration was investigated by the Seabury Committee and hearings were | held before Franklin D. Roosevelt, sit- | ting as Governor. Walker never was indicted. | Attorney General Cummings denied last week that New York emisseries of the celebrated playboy and wise- cracker had called on Justice officials in an attempt to settle his case out of court. | 9 OFFICIALS HELD IN WIFE SLAYING Justice of Peace and COn-! | stable Accused of Killing Mother of Three. By the Associated Press. PITTSBURGH, August 27.—Mur- der charges were filed today against James J. Westwood, justice of the peace in the suburban community of McKees Rocks, and his close friend. Constable Tim Drexler, in connection with the mysterious kiHing of West- wood's wife more than six weeks ago. | ‘They were locked in the county jail | early this morning after an alderman was routed from sleep te issue the commitments. Mrs. Martha Westwood. 38, mother of three children, was slain, as she slept,' by a killer who poked a pistol through her bed room window and fired three bullets into her head. Arrests Create Furore. The arrests caused a furore in Mc- Kees Rocks. The Westwoods are out- standing citizens and Westwood has been foremost there as a political leader. County Detective Walter Monoghan and Chief of Police Michael Matsey of McKees - Rocks made the arrests. Monoghan, long a friend of Westwood, said: “The case is solved—I'm going home and get the first real sleep in 47 days.” Matsey, asked for the motive, re- plied: “We'll charge that he (Westwood) wanted to be free from his wife so that he could play around without facing arguments and quarrels.” Once Freed on Alibi. Westwood and Drexler were ques- tioned immediately after Mrs. West- wood's death and freed on the alibi they were at a night club with two girls at the time of the shooting. The detectives announced one of the girls had admitted the two men left them for about a half hour while they were at the club. District Attorney Andrew T. Park questioned principals in the case with the aid of a ile detector several weeks Motorist Dies in Crash. KALAMAZOO, Mich,, August 27 (#).—Miles Shaw of Chicago was and three other Chicago men when the car in which they riding collided with a truck near Shaw’s car side-swiped and struck a second one DUBLIN, August 27 (#)—Former to England.” JAMES J. WALKER. Mayor James J. Walker of New York will never return to public life in the United States, he said yestercay upon his arrival with Mrs. Walker for a | holiday in the Irish Free State. “I intend to go back there soon.” he asserted, but added: “T have given up politics altogether. I have been suffering from a nervous breakdown, but am recovering now. “My wife is anxious to see Killarney, and after a quiet tour we shall return Hangman Hangs Self In Jail Cell After Murdering Children By the Associated Press, VIENNA. August 27.—Alois Fuersi, who formerly earned his living as a hangman, carrying out Jeath sentences for the gov- ernment, today hanged himself in a jail cell He had been confined there since his recent arrest for the murder of his two children. 'POLICE AGAIN FAIL T0 ARREST MAHAN Man Held in Helena Is Not Weyerhaeuser Kidnap Suspect. By the Associated Press. HELENA, Mont., August 27—Detec- tive James E. Mooney of Butte today failed to identify as William Mahan, Weyerhaeuser kidnaper, & man ar- rested here early today who bore much resemblance to the fugitive. Mooney, whose attempt to question Mahan in Butte several days after the kidnaping revealed a hoard of ransom bills in the man’s car, hurried here from Butte this morning when Helena officers picked up & man whose description tallied in many respects with that of his long-sought quarry. LOCHER IS SLATED * FOR SECURIY 108 Labor Union Head Due to Be on Unemployment Board. BY DON S. WARREN. | John Locher, head of the Central Labor Union, appeared today slated for | ! appointment as a member of the Du»“ trict Unemployment Compensation | | Board to represent employes. ‘ . ?hu of prominent business ex- | i pre being considered by the | } is§loners for appointment a: | base&f member to represent employers. | Among these are W. W. Everett, gen- | eral manager of Woodward & Lo- | throp's, a past president of the Board | | of Trade; J. Thilman Hendrick, Daniel | | 3. Callahan and John Saul, mortgage | | banker. | | The Commissioners have mot been | informed whether any of these would | accept appointment, but they have| hopes of “driifting” one with a record of success in the local business field Locher’s selection appears rather | | certain. The Commissioners will with- hold final decision and announce- | ment of appointments until President Roosevelt has signed the District un- | employment insurance law. Earlier | | today there were reports the Com- missioners were giving favorable con- sideration to Mr. Saul, but afterward it was said there was doubt if he would take the post if offered. Under the District unemployment | insurance law the board will consist | {of the three Commissioners and one | | representative each of workers and | their employes. { Locher and Saul were among & | group called to the District Building | | today by the Commissioners for con- | | ference on how to start the task of | | preparing the administration of un- employment insurance. While collection of employers' con- tributions for unemployment insur- ance is not to start until January, the | Commissioners moved today to plan 1 (See BOARD, Page 3. ROBBER IS ROBBED Victim Gets Money Back With Something Extra. DENVER, Colo, August 27 (#).— |R. E. Faubian, tram operator, never had been robbed, and it was the prin- ciple of the thing, he explained, th: caused him to act. As s would-be robber wrested a money changer containing $4¢ from him, Faubian grappled with the thug, retrieved his cash from the man's pockets and, a final check disclosed, came out a little cash ahead. The robber had had some change in his pocket. Yugosiav Minister Named. BELGRADE, Yugoslavia, August 27 (#). — Konstantin Fotitck, Yugoslav delegate to the League of Nations, to- day was named Yugoslav Minister to ‘Washington, D. C. New Lawrence Book, ‘The Mint,’ To Cost $500,000 Per Copy By the Associated Press. NEW YORK, August 27.—The highest price ever quoted on a book at publication will astound those who in- quire next Winter about “The Mint,” by Aircraftsman Ross. ‘The price is a half million dollars the copy. Aircraftsman Ross was T. E. Shaw and T. E. Lawrence and “Lawrence of Arabia.” One of the greatest pothers ever kicked up about a book attended the almost surreptitious publication of his “Seven Pillars of Wisdom™ in 1926. About 100 copies of “Seven Pillars” were printed amid s pea-soup fog of secrecy. The book is being published in a popular edition next month in the United States, incidentally, since Law- rence’s death released A. W. Lawrence, brother and literary executor of the suthor, from restrictions imposed by the fighter of Arabs. But Lawrence also left a manuscript, entitled cryptically “The Mint.” This is nearly 70,000 words long and con- tains Lawrence's after the end' of mm his experiences in the Royal Flying Corps. Its criticisms of living men, of British institutions and of the pro- fession of soldier and several other things are described by one who has seen the manuscript as so severe that publication may not be had in Eng- land for many years, if ever. The book is to be set up and printed by Doubleday, Doran & Co., in whose Garden City, N. Y., offices the manuscript now lies—in an un- identified safe. Two copies will be sent to Washington to secure copy- right; 10 coples will be kept for sale. These will be catalogued in the usual manner, with a note below that the price will be furnished on application. It is not believed that there will be any takers at $500,000. “What if some plutocrat offers to pay it?” an officlal of the company was asked. “We sell,” said he, “with astonish- ment, awe and perhaps fright.” No publica date is to be an- nounced for book. I (P Means Associated Press. | fcan | Roosevelt’s recognition of that gov- Circulation, 122,682 Bome Returns Not Yet Received. TWO CENTS. PROTEST OF ‘RED' AGTIVITY IN-0. §. FLATLY REJECTED IN SOVIET'S NOTE {Reply Follows Refusal of Moscow to Countenance Verbal Complaints of Brit- ish, Italy and Latvia. CURTAILED RELATIONS REGARDED AS LIKELY Hull Silent, but Observers See Merely Formal Policy for Fu- ture—Note Disclaims Respon- sibility for Acts of Communist Internationale. By the Associated Press. MOSCOW, August 27.—The Soviet governmeni today replied with a re- jection to the United States’ note pro- testing against activities of the Seventh Congress of the Third Communist In- ternationale. Ambassador William C. Bullitt of | the United States received a note from Under-Commissar N. N. Krestinsky, which read “Your note of August 25 contains no facts which could be regarded a a violation on the part of the Soviet government of its obligations. “On the other hand, it is un- | doubtedly nothing new for the Gov- | ernment of the United States that | the government of the Union of So- viet Socialist Republics cannot as- sume and has never assumed any ob- ligations as regards the Communist Internationale.” Krestinsky summed up by saying: “I cannot accept your protest and I am compelled to reject it.” Verbal protests by the British Italian and Latvian governments against statements by speakers in the recent seventh congress of the Third Internationale previously were “re- jected immediately” by the Soviet gov- ernment. This announcement was made to- day. The American protest was delivered Sunday. The other three governments made their protests prior to that of the United States. ‘The British protest was made Au- gust 1, when Lord Chilston, the Brit- ish Ambassador, called on Vice Com- missar N. N. Krestinsky. British Accused. Lord Chilston attacked remarks made by Georgi Dimitroff, Bulgarian Communist leader, who, in a speech before the internationale, accused the British national government of clear- ing the way for Pascism. Dimitroff said the Communists fa- vored the return of a labor govern- ment in Great Britain with the even- tual aim of establishing a Soviet re- gime there. ‘The Italian speaker, Bastisti, told the internationale that the Com- munists in Italy were working up op- position to Premier Mussolini’s mili- tary plans in Africa. Policy May Be Revised. By the Assoclated Press. ‘The Soviet rejection of the Amer- ican protest against interference in American affairs will—in the opinion of well informed observers—force the United States to review the character of its future relationship with the Soviei Union. Secretary Hull declined any com- ment today on the Soviet action pend- ing receipt of official dispatches from William C. Bullitt, the American Am- bassador, While the American note served blunt warning on Moscow of “serious consequences,” it was believed by ob- servers here that, for the time being at least, there will be no definite break in friendly relations. Expectation was, however, that re- lations between the two nations may be reduced to the bare and necessary formalities, and lack the friendly tone that has characterized Soviet-Amer- intercourse since President ernment two years ago. BAD TASTE CHARGED. Diplomats Generally Critical of Rus- sian Ambassador’s Statement. BY CONSTANTINE BROWN. ‘Washington diplomats regarded as a departure from accepted ethics and as an exhibition of poor taste Am- bassador Troyanovsky's statement of last night alluding to anti-Soviet in- terests and activities of groups in the United States. His statement follows: “I have no intention of saying any- thing about the note of protest lodged by Ambassador Bullitt with our for- eign office. A satisfactory reply will be made in Moscow by my govern. ment. “I wish to refer only to a campaign which has been conducted by some persons in this country against our government and against our form of government. “I recall the biblical injunction: “‘And why beholdest thou the mote which is in thy brother’s eye, but per- ceivest not the beam that is in thine owne eye?” “Anything said in Moscow by Amer- ican citizens about the United States (See SOVIET, Page 3.) THREE CHILDREN KILLED Eight Others Injured When Truck Topples Wall. " LONDON, August 27 (#).—Three children were killed and at least eight injured today when & truck toppled & brick wall in their school playground. It was the first day of school after the Summer vacation. A hole had been made in the wall to allow passage of trucks used in re- construction work on & school build- ing. A truck passing through the opening st.rui the wall.