Evening Star Newspaper, September 4, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Rain tonight and tomorrow; cooler to- morrow and tomorrow night; gentle to moderate southeast and east winds, prob- ably becoming northeast. Temperatures —Highest, 72. at noon today; lowest, 68, at 10 p.m. yesterday. Full report, page 9. Closing N.Y.Markets,Pages 13,14 & 15 No. 33,363. Entered as second class matter post office, Washington, D. C. 400 TO 500 KILLED, H @h - WASHINGTON, D. C., WEDNESDAY, SEPTEMBER 4, 1935—THIRTY-SIX PAGES. *¥% WITH SUNDAY MORNING EDITION TOWN OF 1,200 YET IN GALE’SPATH AS DEATH TOLL MOUNTS HOURLY; NEW SQU - Train Piles Into Hurricane Horrors Described Boats Are Held Florida Ditch. Aid Rushed. MANY DROWN IN BOILING SEA Veterans W—orst Hit by Wall of Water 15 Feet High. First Photos of Stricken Area The Star today presents, through Associated Press Wire- photos, the first pictures of the damage wrought by the Florida hurricane. Pages A-4 and A-5. The Hurricane Toll. MIAMI—The Government joined with the Red Cross in rushing aid to the devastated Florida area, where estimates of the dead were between 400 and 500; heaviest loss of life on Upper and Lower Matecumbe Keys, with two of three Govern- ment camps demolished; rescue train wrecked. FRENCH REEF.—Masters of five ships prepare to begin hazardous transfer of 372 persons from liner Dixie, aground on reef and leaking from sustained battering by moun- tainous waves; passengers reported calm and in good spirits. BT. PETERSBURG.—Path of hurri- cane now northerly in Gulf; Cedar Key, with 1,200 residents, squarely in path; gales expected by west Daughters and By the Associated Press. MIAMI, Fla., September 4.—Dr. | Lasser Alexander, medical officer at Camp No. 1, Snake Creek, who was brought here suffering from numerous cuts, bruises and abrasions, told a tale of horror from the hurricane which Monday lashed the Florida Keys. “The storm started in fury at 8 pm.” Dr. Alexander said. “A lot of ‘people were washed away and others | left dead after the storm passed. Ore man I talked with counted 80 dead | probably will be from 125 to 150. | Every building was razed and at one | time the tide rose entirely over the | island. | *I was at Snake Creek Hotel, which was used as a hospital. This collapsed |about 10 p.m., with many persons | under the ruins. There were about persons at this camp, and the total | By Doctor Fscaping Wreckage 'Victims in Hospiml Include Man Who Witnessed Death of Wife, Two Grandchildren. |40 patients in this building, about | half women and children. Out of this number there were only seven men: and three or four of the women and chil- dren saved. “When the building toppled over, I was able to walk out through a hole in the wall into about three or four feet of water filled with floating timbers and debris. The wind was about 50 or 60 miles an hour and ' carried flying timbers that caused most of the casualties. “With the aid of a flashlight, I made my way in the direction of the railroad grade, which was the highest point. I reached a high bank cov- ered with grass after walking about 250 yards and being knocked down in- numerable times by flying timbers. T finally reached a rock wall about 4 i (See HORRORS, Page 3.) | BIG PLANE LANDS moval of Wounded--150 Held Dead. Early rescue parties advised Federal relief officials here today of at leact 150 storm fatalities among the World HURRIGANE TURNS SUPPLES AT Y| TONARD GEORG Rescue Party Begins Re- High Winds Forecast on rescue boats) also have lifeboats South Atlantic Coast as Gale Veers East. | By the Associated Press. | JACKSONVILLE. Fla., Septembrr 4—Gordon E. Dunn, Government coast towns: tide rising rapidly. |War veterans who were sent to the!metcoromm here, sald today the seas he: siderable”; coast reported, but there was no knowledge of conditions at Ciear- water and ‘Tarpon Springs. TALLAHASSEE —Gov. Dave Shotz orders National Guard units mebil- ized in all affected areas. HYDE PARK, N. Y.—President Roose- | velt directed that all possible Fed- eral assistance be offered. He telephoned Admiral Cary T. Gray- ton, chairman of the Red Cross, at Washington, asking that he be kept advised of developments. (Copyright, 1935, by the Associated Press \ MIAMI, Fla., September 4—With rescuers estimating the death toll at between 400 and 500, part of the ex- tent of devastation on the hurricane- swept Florida Keys was learned to- day from survivors and from expedi- tions of mercy and aid. All the forces of the Government were joined with the Red Cross in rushing supplies to the areas of death and wreckage and in evacuating the debris-littered keys. ‘The heaviest loss of life, rescuers reported, was on Upper and Lower Matecumbe Keys and in the fishing villages along Plantation Key and Key Largo. Many drowned as walls of ‘water 15 feet high swept over them. ‘Two of the three Government camps on the Matecumbe Keys, where war veterans are engaged in building a highway down the keys to Key West, were reported demolished. 400 to 500 Dead in Area. A rescue party out of Miami, led by Jack Combs, an undertaker assigned to organize identification of the dead, reported between 400 and 500 persons ‘were killed in this area. Many of those who died on Mate- cumbe Key were crushed in the col- lapse of the Snake Creek Hotel, which was being used as a hospital at the camp. Among these was Dr. E. C. Main, medical director. The word of his death was brought to the mainland by Dr. Lasser Alexander, a medical examiner at the camp who escaped death. An Associated Press correspondent 1n Miami, who flew over the devastated keys area, reported: “Below Tavernier to the Vaca Keys, in the region that bore the brunt of the tropical hurricane, almost nothing man-made remains. Nothing is whole, undamaged. “Houses are twisted piles of match- wood. Boats are piled high on dry land, shattered and twisted.” The hurricane, after raging across the keys, swerved to the north in the (See HURRICANE, Page 5.) COAST GUARDS AID SCHOONER AGROUND Edith T. of Boston, With 12 on Board, Reported in No Se- rious Danger. By the Associated Press. NEW LONDON, Conn., September 4~The 65-foot auxiliary fishing schooner Edith T. of Boston, with 12 men on board, was reported today by base 4 of the New London Coast Guard to have gone aground off Lynde FPoint, near the Saybrook Harbor. Coast Guard officials said the schooner was belleved in no serious danger and that another patrol boat would be sent to the scene shortly to sttempt to float the Edith T. at high . Miami and Key West. | A giant Pan-American Airways, | plane, laden with doctors, food and medical supplies, radioed this morning that it had landed near Plantation Key, the site of two of the constric- tion camps believed demolished by wind and wave, and would begin re- moval of the wounded. | Morton Milford, assistant to Admin- | istrator Harry Hopkins of the F. E. R. A, was advised by telephone from | relief plane had gotten through and | landed safely. Winds Delay Rescue. Earlier rescue efforts were balked by high winds, broken railway trestles, causeways and telegraph lines. *Mil- on Plantation Key. | Milford expressed the belief that no ‘Washington men were among the 650 veterans who have been building an | automobile road across the coral | islands, although Associated Press re- | ports carried the names of two Wash- U. Baker and R. Letreaux. Local officials could not identify | either man. The veterans at work |in Florida and South Carolina were | sent there after they came to Wash- ington to demonstrate for the ponus or to seek enlistment in Civilian Con- servation Corps camps. C. C. C. Aided Bureau. | local Transients Bureau and the F. | E. R. A, in furnishing transporta‘ion for the men and establishing them in camps. Several thousand of the vet- erans were sent to camps in South | Carolina. | The men on the Florida Keys were | selected for the construction work | because they were able bodied and | most of them over the C. C. C. age limit of 26 years. Their work in con- struction causeways between the low- lying keys, and roadways across ihem, was largely demolished by the storm, which hurled great waves all the way across the land. Milford dispatched an assistant, Charles B. Forbes, to Florida today (See PLANE, Page 6.) ELLIOTT ROOSEVELT QUITS TEXAS POST Resigns Young Democrats Office Which Foes Said Belonged to Native Son. By the Associated Press. DALLAS, Tex., September 4.—El- liott Roosevelt, son of the President, said today he had resigned as first vice president of the Young Demo- crats of Texas, & post his political foes had contended in bitter word battles that only a native Texan should hold. ‘The junior Roosevelt said he had relinquished the post on August 6. Two attempts had been made to have him forcibly removed from office, leaders of the movement maintaining executive committee and that he was not well versed in political and gov- ernmental affairs of Texas because of his short residence in the State. Young Roosevelt said he submitted a recommendation with the uncondi- tional resignation that some ‘“native " be selected for his position. e b | jacksonville headquarters that the | | ford was advised that the biggest loss | | of life was at the camp at Tavernier | | ingtonians in the injured list—Harry | The C. C. C. co-operated with the | property damage “con- | Southern Florida Keys {from Washing- | tropical hurricane now in the Guir no loss of life on West | ton to construct a causeway between ' of Mexico probably will hit Cedar Key soon and may be followed by “a fairiy high tide.” The storm, he said, still is of full hurricane intensity (more than 75 miles an hour winds), but probably will start diminishing as soon as it | crosses the coastline into the Florida | mainland. | tended by shifting gales far up into Georgia.” | The storm, he added, apparently is i making & “mild” recurve to the northeast. bulletin reported, “Southeast storm | warnings ordered north of Jackson- ville to New Berne, N. C.” and pre- dicted, “Increasing southeast winds on South Atlantic Coast, probably reaching gale force.” OHIO STREAMS FLOODED SECOND TIME IN MONTH Hocking River Overflows at Ath- ens and Smaller Tributaries Jump Banks. By the Associated Press. COLUMBUS, Ohio, September 4.— Flood waters went on a"new rampage today in Ohio, which last month suf- fered millions of dollars’ damage from cloudbursts and raging streams. The Hocking River reached flood stage at Athens for the first time in a year. Dozens of small streams in Athens County poured from their banks. The waters inundated the town of Mineral, Athens County, and drove 23 families from their homes during the night. The Scioto River crept to 131; feet at Chillicothe. Flood stage is 16 feet. He 3aid the storm likely “will be at- | A New Orleans Weather Bureau | ~ After Being Swung Out. 9 OTHER SHIPS AT LINER’S AID Night-Long Vigil Is Kept as Waves Batter Reef. | (Copyrisht, 1935, by the Associated Press.) | MIAMI, Fla., September 4 —Life- boats were swung over the sides of | rescue ships today. ready to be dis- patched to the aid of the stranded | liner Dixie, which pounded on French | Reef with 372 persons aboard her, but sudden squalls arose, halting the work. Attemfits at a rescue were momentarily abandoned. The report that the lifeboats were prepared for launching came in a | wireless message from W. H. Depper- | | man, a passenger on the Plataro, | United Pruit liner which lay closest to the stranded vessel. | “One boat is already swinging over | the side of the Platano,” said Dep- perman. drawing near, most of them so close you can see people aboard. Sea Breaks Around Liner. “The Dixie is now directly off our beam. The sea is atill breaking around her. The Gatun and Limon (other hanging over their sides.” The squadron of assorted craft which stood by was large enough to choke a good-sizer harbor. Since yes- terday afternoon, the ships have stood |helple.uly by the Dixie in the heavy | shark-infested waters around French Reef, about 60 miles south of Miami. Through the stormy night, the pas- sengers on the Dixie, marooned since the vessel came to grief early Tues- day morning, stood on the bridge and | peered into the blackness at the blink- ing lights of the encircling ships. The Dixie might have been in another ocean, so isolated she was by the ever-raging sea and incessant rain squalls. Some on Dixie Injured. Some of the passengers and mem- bers of the Dixie's crew were hurt, | but none seriously, Capt. E. W. Sund- | storm, veteran skipper, reported. And from an official of the Morgan Line, which operates the Dixie, came the wireless that the passengers were “calm and in good spirits” despite their agonizing wait. ‘The prolonged beating and grinding suffered by the Dixie caused a leak in | one of her fuel tanks. She was also making water in her double bottom. She was not in immediate danger, however, according to the messages of Capt. Sundstrom. Standing by, ready to launch life- | boats, were three fruit boats, Platano, Gatun and Limon; the Saukee and the Carrabassett, Coast Guard cutters; a tanker, the Reaper; the Warbler, salvage boat, and two other ships of the Morgan Line, El Occidente and El Mundo. From W. H. Epperman, a passenger on the Platano, wirelessed at 6 a.m.: “Daylight is creeping about the (See DIXIE, Page 7.) Mexican Gunboat Safe. MEXICO CITY, September 4 (#).— ‘The War Department announced to- day that the gunboat, Progreso, re- ported in press messages to have been overturned at Manzanillo during a windstorm, had arrived at Isla Mar- garita, lower California. Department officials said they believed the dis- patches referred to a launch formerly used as & gunboat. | By the Associated Press. SALT LAKE CITY, September 4.— Sir Malcolm Campbell and his Blue- bird racer were poised today for a tri- umphant return to England with a record—finally computed correctly— of 301.1292 miles an hour on land. A “silly mistake”—the words were Sir Malcolm's—kept the “human bul- let” for hours in the belief he had failed on the Bonneville salt flats {0 achieve his dream of a mile in 12 seconds. The fact he had bettered his pre- vious record of 276.816 miles an hour by more than 23 miles, as originally figured by the timers, brought only a wry face and a declaration he would have to “go through it all again.” It was far into the night before the officials of the American Automobile Association sent word hurriedly to the Campbell the lighted,” but that the news was rather in the form of an anti-climax. he had been illegally elected by the|again He at New York September 12, with “the old lady,” as he calls his racer, w::; Time Recheck Gives Campbell Credit for 301 M. P. H. Pace ward across the gleaming salt plain at 304.311 miles an hour and brought his huge racer to a safe stop despite & blown front tire. The timers first computed his south- bound mile at.295.556 miles an hour, for an average of 299.875 miles. A later check of the electrically marked tape showed the return mile was run in 12,08 seconds, instead of the 12.18 seconds—or 208.013 miles per hour— originally announced, which accounted for the increase average finally credited. Campbell indicated in an interview last night he intends to let his new mark stand at least until some one else beats it. Then he may try again. “Some one can build & better ma- chine and go faster,” he said. “What- ever you can do, I can do, and what- ever I can do, some one else can do better.” His concern, after a brief rest here, is to get back to England so Donald, his 15-year-old son, may get back to school. . LONDON, September 4 (P)—Lady Campbell, informed that her “All the other ships ar:| ¢ Foening Star CUT IT THIN HENRY. REMEMBER WHAT I'VE SAID ABOUT THRIFTY AMERICANS EVADING TAXATION ALLS HALT DIXIE REfl]UEi Demands Complete By the Associated Press. bluntly warned the League of Nations today that she could no longer dis- cuss her controversy with Ethiopia ity with Ethiopia.” This declaration, made by Baron Pompeo Aloisi, the League repre- | lowed a placating gesture by Anthony Eden, British cabinet minister. told the assembled Counell of the “Italy,” declared Aloisi, “refuses to recognize that the equality and privi- leges of League members should be given Ethiopia, which has not ful- filled her obligations. * * ¢ action so as to adopt all measures which may become necessary for the security of her colonies and for safe- guarding her interests.” Occupation Seen. to mean that Italy may resort to the military occupation of the East African Empire. Eden told the Council that conflict between Great Britain and Italy was GENEVA. September 4. —Italy| | “at the League on a footing of equal- | [sentative of Premier Mussolini, fol- | Eden | League that there could be no ques- | | tion of any political or economic con- | | flict between Great Britain and Italy. | “Italy reserves complete liberly of | Observers interpreted his statement | 7“ o _M[256G00077 ITALY REFUSES TO PERMIT LEAGUE TO HALT TROOPS Liberty in Council. | impossible, because the latter nation had promised to respect Great Britain's interests in Ethiopia “and| Great Britain is sure these interests will be respected in the future.” | Following Aloisi’s declarations, the Council session was suspended. | Dr. Ruiz Guinazu of Argentina, president of the Council, announced that the Ethiopian delegation wished | time to prepare a reply to Italy and said the time for the next meeting| would be announced later, | In the few moments between Aloist's statment and the actual suspension of the sitting, Prof. Gaston Jeze, one of the Ethiopian representatives, made a brief speech. Points to Abselution. He pointed out that the Italo- Ethiopian Conciliation Commission. | which recently completed deliberations ' in Paris, had decided that neither Italy nor Ethiopia was responsible for the border clash at Ualual last Decem- ber, in which a number of Italians | and Ethiopians were slain. “If the Ualual incident no longer | exists, what then is left? Jeze asked. “Italy has brought forth a new pre- text for her attitude. She can no longer utilize the pretext of Ualual. (See ETHIOPIA, Page 2.) W.P. A REQUESTS REACH NEW HIGH Applications Total $100,- 000,000 Daily Since Ddad- line Announcement. By the Associated Press. W. M. Cotton, chief of the project control division of W. P. A., announced today that applications for works proj- ects had jumped to approximately $100,000,000 a day before President Roosevelt set September 12 as the deadline for getting them to the Capi- tal. A “big day” formerly was $33,- 000,000, - At the same time it was disclosed that Harry L. Hopkins' organization had rejected 650 P. W. A. projects be- cause of high material costs, bringing the total public works projects turned down to more than 1,200. Against that number—rejected because they would employ too few workmen for the amount spent—there were only 57 ap- provals. As with 386 projects rejected last week, P. W. A. informed State direc- tors of Hopkins’ decision in the hope applications may be revised downward in costs. $70,000,000 for 341 Projects. The President has allotted $70,000,- 000 to cover 45 per cent of the cost of 341 projects, while funds for 173, in- volving $66,000,000, have been re- leased by the Treasury. P. W. A. fig- ures today showed this disposition of 4,000 appjications, involving $87,600,- 000, filed to date: Approved and sent to Washington, 3,200, the remainder still under study. As of August 31—580, involving (See W. P. A, Page 6.) Confederates Vote To Meet G. A. R. at Gettysburg in °38 HANSON, CONSLL, DIES OF WOUND Veteran of Diplomatic Serv- ice Was En Route to U. S. After Breakdown. By the Associated Press. The Dollar Steamship Co. informed the State Department today that George C. Hanson, consul general at Salonika, Greece, had died on board the steamship President Polk on Sep- tember 2 from self-inflicted gunshot ‘wound. Hanson, a veteran in the American foreign service, was assigned consul general at Salonika on July 22. After his arrival at that post he suffered a nervous breakdown and was return- ing to the United States for treat- ment in care of the ship's doctor. Hanson, after serving as consul gen- eral at Harbin, Manchuria, for many years, was named consul general and first secretary of the American Em- bassy in Moscow shortly after the United States recognized the Soviet government. Later he was assigned as consul general and charge d'affaires at Ad- dis Ababa, Ethiopia, but his orders were countermanded while he was en route from Washington to take over the post and he was instructed to go to Salonika instead. ‘Well Known in District. He was well known in Washington, having served one assignment here as assistant chief of the Division of Current information. The State Department, in announc- ing Hanson's death, said that “he suf- fered a mervous collapse which was diagnosed as primarily due to excess sugar in his blood.” Because of Hanson's numerous ad- ventures while serving in Chinese posts, he became known as the State Department’s ace “trouble-shooter.” Graduate of Cornell. Hanson was born in Bridgeport, Conn., in 1883 and graduated from Cornell University in 1908. He entered the diplomatic service in June, 1909, as a student interpreter in China and served successively for nearly s of a century in The only evening paper in Washington with the Associated Press News and Wirephoto Services. MONEY DIPLOMAGY HIT BY PRESIDENT Charges Violations—Britain Pledges Says Ethiopian Oil Deal No Sanctions to Be Invoked. Cancellation Proves System Outlawed. By the Associated Press. | HYDE PARK, N. Y., September 4— | President Roosevelt expressed the hope | today the cancellation of the Ethiopian | land lease would aid peace negotia- tions abroad and declared the can- cellation “another proof that since March 4, 1933, dollar diplomacy is not recognized by the American Gov- ernment.” Talking with newspaper men at the regular semi-weekly press conference, the President observed that by fo| stretch of the imagination had he or the Secretary of State been the least concerned over the possibility of the oil lease to private interests in this | country involving the United States in | the Ethiopian or Italian problem. Saw Negotiation Danger. He said that no one who knows the | administration would think that it could be involved. The only danger, | he said, would be the effect of the lease on the negotiations of the Eu- ropean powers and Ethiopia now get- ting under way at Geneva. The withdrawal of the lease 'he hoped would clear the air of those conferences. Vexing Question Settled. Cancellation of the Standard-Vac- uum Oil Co. lease in Ethiopia was an- nounced here last night by Secretary Hull and plainly solved a vexing ques- tion. Another problem remains. It was raised by Leo Y. Chertok, New York | broker, who announced a few days ago that he was holding an oil and min- eral concessipn from the Ethiopian government as security for a $1,000,- 000 loan to ba advanced by October 17. This agreement next will receive at- tention of the State Department. Meanwhile, it was learned that Chertok already has been sounding out the strength of his position by communication with officials closely concerned in the international contro- versy. It was learned that he has been in touch with Italian repre- sentatives here buf that they have been non-commital about their at- titude toward his connection with commercial interests in Ethiopia. Hull Warns Firm. Announcement of the Standard Co. lease cancellation followed a personal conference between Hull and officials of the company, in which he had told them bluntly that the agreed concession “had been the cause of great embarrassment, not only to this country but to other governments who are making strenuous and sincere ef- forts for the preservation of peace.” The Standard officials who visited the State Department were George S. ‘Walden, chairman, and H. Dundas, vice president. They conferred first with Wallace Murray, chief of the Near Eastern division, explaining that Francis Rigkett, British promoter, had meen authorized to act for them in negotiating for such concessions as that just announced. Upon being informed of the State Department’s views on the matter, Walden and Dundas communicated (See DIPLOMACY, Page 6.) Readers’ Guide Changing World - Comics - Cross-word Puzzle _ Shanghai, Chefoo, Newchwang, Tient- Washington Wayside ‘Women's !‘elqlu'u..fl-l.'t, B-10 (P Means Associated Press. Yesterday’s Circulation, 122,295 Some Returns Not Yet Recetved. TWO CENTS. URRICANE RAGES ON CUT IN EMERGENCY STAFFS PLANNED; ROOSEVELT SEES RELIE PEAK PAST Personnel of Seven Agencies Will Be Reduced Early Next Year After Check Is Made on Costs. JURISDICTION VESTED IN BUDGET BUREAU AEATVE DWW A F. E R. A Among New Deal Set-ups Facing Drastic Slashes in Number of Employes as Re- sult of Executive Order. BY J. RUSSELL YOUNG, Staff Correspondent of The Star. HYDE PARK, N. Y., September 4.— Coupling action with the personal opinion that the peak of the depres- sion emergency is past, President Roosevelt today blanketed under juris- diction of the Budget Bureau all seven remaining emergency agencies. The action was taken by means of an executive order and was announced by the President during a press con- ference in which he expressed the un- qualified opinion that the peak of the depression emergency is past. Under today's order, the third of such pronouncements the following agencies must make an accounting to the Budget Bureau in connection with all administrative expenses: Agricul- tural Adjustment Administration, Commodity Credit Corporation, Co- ordinator of Federal Transportation, Public Works Administration, Federal Emergency Relief Administration, Na- tional Recovery Administration and ‘Tennessee Valley Authority. After reading this order to the cor- respondents the President explained | that they, like all of the other 20 agencies and commissions which re- cently have been brought under the | Budget Bureau requirements, must | have their budget of expenses ready and approved by the budget director | by October 15. Complete Check Sought. ‘The President explained further, in his plan to keep his hands on the purse strings of all these emergency agencies, that after the budget esti- mates of these last seven agencies have been passed on the administra- | tion then will have a complete check on administrative expenses for all of the 20 agencies and commissions. ‘The President contends that these various emergency agencies now will be occupied principally in what he referred to as “management work,” and he has reason to know that it will not be necessary to employ the large number of clerks and others who have been working for these emergency set-ups. With the emergency peak over, the | President is convinced that these agencies now must use the best budget | methods s0 as to cut down expenses, which, first of all, means cutting dowa personnel. Mr. Roosevelt did not amplify in words his declaration that the de- | pression peak has been passed. chos- ing rather to let his action in im- posing closer check on the emergency agencies stand as proof of his con- viction. Staffs to Be Reduced. Under the President’s whip hand the director of the budget, in passing on these agency budget estimates, now will aim to eliminate overlapping of work and authority and above all get rid of employes where it is possible. He intimated that there will be con- solidations and co-ordination of emer- gency activities, all of which will help to reduce operating costs. In this connection he mentioned the fact that the Home Owners’ Loan Cor- poration, which he said has performed a great emergency service, is now gradually being transformed into a management organization. Employes will be largely concerned with seeing that houses carrying loans are kept in proper repair and watching mort- gage payments and renewals. Mr. Roosevelt was unable to give (See ROOSEVELT, Page 3.) e BANK STOCKS DROP $80 IN NEW YORK Wide-Open Break in Securities Follows Announcement of Reduced Dividends. By the Associated Press. NEW YORK, September 4.—Another wide-open break in New York City - bank stocks sent active shares $1 to $80 a share lower today, continuing the trend which began late yester- day, when two leading Institutions reduced their quarterly dividends. Central Hanover Bank & Trust Co. yielded an additional $4 a share at $101; Bankers’ Trust dropped $10.50 to $54; Guaranty lost $10 at $279 and First National, the “blue chip” bank stock, declined $80 at $1,650. Others were $1 to $7 lower. A combination of low earning ca- pacity for money and added costs of operations, due principally to gov- ernmental control measures, was be- lieved in well-informed quarters to have been the main reason behind the action of Central Hanover's directors yesterday when they reduced the quar- terly dividend from $1.50 to $1. Short- ly afterward Bankers’ Trust directors cut the quarterly payment from 75 eanntow“pg. |4