Evening Star Newspaper, November 26, 1935, Page 2

BRITISH LIBERALS - SELECT SINCLAR Clement R. Attlee Is Chosen <y Labor Chiefs as Par- liament Forms. By the Associated Press. LONDON, November 26—Clement Richard Attlee was elected parlia- mentary leader today by the British Labor party. Sir Archibald Sinclair was elected Jeader of the Liberals, replacing Sir Herbert Samuel, defeated in the elec- tions. The successful candidates in Great ‘Britain's elections had trooped to Westminster for the first meeting of the new House of Commons, prelim- inary to the state opening of Parlia- ment, December 3. “Phey had two tasks to perform—to “elect a speaker and to be sworn in and sign the roll of members of Parliament. French Suspicion Grows. 'While the new house, with its ‘heavy government majority, assem- Bled for the first time, & growing suspicion of French motives in ob- taining postponement of an oil em- bargo ageinst Italy became apparent in opposition circles. ““Some sections of the British press reflected this tendency in outspoken articles declaring Premier Laval's Jeasons for seeking the delay could Mol be taken very seriously. . “Laval once again has come to the 2id of Mussolini,” asserted the Zaborite Herald of the postponement bt the League of Nations Sanctions Committee meeting, originally called for Friday, to discuss addition of an ©il embargo to sanctions against JFrench premier has fought—or rather ‘maneuvered—consistently to prevent, minimize or at any rate to delay 81 actions taken by the League against e aggressor.” Internal Crisis “Excuse.” "'he News Chronicle conceded that the critical domestic situation in France gave Laval an “excuse” for his request to delay indefinitely the Sanctions Committee meeting, but #aid: . “He has so frequently shown his tostility to the League that his mo- Yives arouse considerable suspicion in Yondon.” Some British quarters suggested the ‘postponement of the Sanctions Com- mittee of 18’s dicussion of an oil embargo was likely to be short. . They expressed belief the British cabinet might discuss possibilities of ‘extending sanctions against Italy, for ts invasion of Ethiopia, at a meet- g called for tomorrow. The House of Commons was ex- Ected generally to re-elect Capt. ward Fitzroy as its speaker, a post he has held since 1928. + Then Prime Minister Stanley Bald- Win, his ‘ministers and members of Parliament were to begin the two- day swedring-in ceremony, after which they would be qualified to re- reive their salaries and parliamentary “privileges. e — MRS. HARRIETT JOHNSON DIES AT AGE OF 99 Former Resident of Washington Succumbs at Her Home in Massachusetts. Mrs. Harrlett M. Johnson, former ‘Washington resident, who celebrated her 99th birthday anniversary last April, died yesterday at her home in JIpswich, Mass. She was the mother of Mrs. Amy Johnson Haggerty, wife of Rev. Willlam A. Haggerty, pastor of the Rosedale Methodist Episcopal Church of Washington. The daughter of Uriah Copp, whose ancestors fought in the Revolution, Mrs. Johnson was born at Lebanon, Me., April 19, 1836. She married John A. Johnson, a Massachusetts shoe manufacturer, in 1857. Her husband died 25 years ago. Surviving are a son, J. Henry John- son; two daughters, Mrs. Haggerty and Miss Ida B. Johnson; two grand- children, and five great-grandchildren. Funeral services will be held tomor- row in Ipswich. Burial will be in the Highland Cemetery there. SHIP REPORTED SINKING SAN PEDRO, Calif., November 26 4#) —The whaler California, with 40 Dlen aboard, reported today it was slklng near Santa Barbara Island, miles off the Southern California &dast. ““Coast Guard cutters Itasca and Hermes were sent to the whaler’s ‘Teported position. A “Vessel leaking badly. Al pumps going full force, but water gaining,” one message from the whaler said. Irvin S. Cobb Says: I’m Thinking of Asking Poll to Find Out WhoIAm. SANTA MONICA, Calif., November 26.—Social note: Went to party. Among those present, the Fredric Marshes, the Bud Leightons, the Johnnie Robinsons, Gloria Swanson, Hugh Walpole, Herbert Marshall, Constance Collier, Frank Lloyd. To be an evening devoted to intellectual discussion of literature, drama, the In other words, while I have What’s What Behind News In Capital Britain, France and Italy Seen Dividing Ethiopia. BY FAUL MALLON. SHRED of high suspicion has developed here lately that Britain, France and Italy may get together eventually' by carving up Ethiopia in comparatively equal parts. It may sound strange now, but more then one top official senses this as the possible outcome of the very noble diplomatic conflict now raging. Bri- tain could use a slice of the dark meat around Lake Tana and the Nile headwaters. Mussolini already has his hands on the white meat. A couple of drumsticks of territory ad- joining what France now holds would undoubtedly make her statesmen ap- preciate the practical side of brotherly love among nations. ‘The realization of this on high here may have a barely noticeable influ- ence on Mr. Hull's semi-weekly eco- nomic threats aganist nations now in- volved in the so-called wax. Diplomatic novices can see what Mr. Hull is up to. He wants to give moral force to Britain's League sanc- tions without actually stepping over the line. That is why he issues state- ments every few days threatening this or that step if cotton exports increase, or what not. The severest critics of the New Deal here are not against that. But both they and the Secretary of State ap- parently have come to realize it is a risky business. Mr. Hull cannot af- ford to get too far out on the League limb, in a position where Britain and France could saw it off on him, by declaring an Ethiopian dividend among themselves. Consequently, there is every rea- son to expect that Mr. Hull's words may continue to be much more ferocious than his actions. Japan Has Alibi, The Japanese alibi now is that the Communists are becoming menacing, not only in North China, but in Japan itself. At least that is the official word spread among the hoity-toity here in | explanation of Japan’s sudden grab at |North China. It is an interesting | story and possibly half true. ‘The Japanese say they have infor- | mation that the Soviets are supply- ing Chinese Red armies with arms {and money. This did not worry them | as long as the Red armies kept south of the Yangtze. But recently the crimson Chinese have been entrench- ing themselves in North China, par- ticularly Senshi, Shansi and Suiyan Provinces, three of the five provinces involved in the “autonomy” move- ment. Likewise, it would be hard to exag- gerate the fear with which Japanese imperialists view any Communist tend- encies among their own low-paid Nip- ponese workers. Our diplomats did not know it until recently, but Moscow tried to line up London when the Japanese went into Manchuria. The Soviets are supposed to have made repeated suggestions to Japanese imperialism once and for all. Britain was not interested. At that time, the Soviets warned the British that Japan eventually would threaten British interests in China. Spokesmen supposed to know the Red viewpoint are saying now that Moscow is through mak- ing overtures to Britain for co-op- eration in the Orient, intends to let Britain haul its own chestnuts now. All of which may explain why Un- dersecretary Phillips is supposed to have bought earmuffs in preparation for his coming trip to London, Incidentally, Gen. Pershing is sup- posed to be among those lately exer- cised and disturbed about the extent of ultra-radical and Communist ef- forts in this country. He has become so interested in the subject that he is having the facts and figures checked over. You may hear from his shortly. May Temper Eccles’ Statement. A few unimportant words may he spoken shortly by New Dealers to off- set the booming possibilities behind F. R. B. Chairman Eccles’ recent stock market statement. The matter has been under discussion backstage for several days. All admit that what Eccles said was not credit. Also, it has been unofficially that the F. R. B. not, or at least would not, do a thing about it. But when Mr. Eccles chose to so, officially, it seemed that he trying to lend encouragement to strong market. He was. But his crowd will also make certain that the reac- tion is not too strong. Supreme Court followers have no- ticed the old right and left wing (Copyright, 1035.) —_— DRIVER FEELS “JINXED” DES MOINES, Iowa, November 26 (#)—James Reddish, 19, has volun- Britain that they join in smashing | THE EVENING STAR, WASHINGTON, D. O, TUESDAY, NOVEMBER 2, 1035, SCHISM IN LABOR FACES ROOSEVELT Lewis’ Drive to Dictate In- dustrial Set-Up May - Affect Election. BY DAVID LAWRENCE. The long-expected break in the ranks of American labor has come. It may profoundly influence the course of economic recovery. It may affect the fortunes of President Roosevelt in the coming campaign for re-elec- tion. It may have a host of other effects, such as on labor legislation and social policy. For it is the beginning of a struggle which will either wind up with Gov- ernment control and domination of labor unions or domination of Con- gress and the presidency by a labor dictatorship. The counsel of careful, reasoning, temperate, well-poised men like Wil liam Green and Matthew Woll has failed to keep John Lewis, head of the miners’ union, from staking every- thing on an ambition to put the industrial union idea into the Ameri- can Federation of Labor at all costs, irrespective of the opposition mani- fested by the craft unions. To the layman the differences and advantages involved in a craft union or an industrial union may not be apparent. Labor experts may debate at length on the respective merits of each. Industrial unions are composed of all the workers in a given industry, whether they are skilled or not and regardless of their crafts. This has been called a vertical set-up. The so-called crafts unions are horizontal and cut across different industries and companies, so that all are members of the same craft. Craft Unions Have Sway. Today the A. F. of L. is dominated by the craft unions, but a substantial minority is determined to change the nature and make-up of the Executive | Council of the A. F. of L., using the industrial union as the unit of mem- bership in that council. Naturally, the officers of the crafts unions, both in the top groups and in the various locals scattered through- out the country, see themselves wiped out of the picture and do not like it. The employers are divided in their views as to the wisdom or unwisdom of industrial unions. They would lean toward that system which insured re- sponsibility of leadership and sanctity of contract and a minimum of disturb- ance through strikes. Employers, therefore, will be in- terested onlookers as well as victims of the fighting. It will take the form of aggressive membership campaigns. Already, John Lewis has gathered to his side a number of union officials and they have set aside a fund from their own treasuries to carry on the pattle. Aligned with Mr. Lewis are the heads of the clothing workers, ladies’ garments workers, textile work- ers, oil field, gas and refinery workers, nine, mill and smelter workers, mil- Jinery workers and typographical unions. Auto Industry First Front, ‘The first skirmish is going on in the automobile industry, where Mr. Lewis and his cohorts have started to develop an industrial union, arguing that Mr. Green's tactics and craft union policies have failed to budge the aloofness of the empioye organi- zations that exist in the various in- dividual companies. Since the strike weapon is an inevitable counterpart of the strategy of membership get- ting, the prospects of trouble in the auto fleld at a time when the in- dustry is moving ahead so splendid- |ly cannot but force opinion among the workers to resist efforts on the part of the industrial union agitators to bring them into new union quar- rels. If the effect of the schism is to open wide the eyes of the people to the dangers of labor bureaucracy, it may result in legislation imposing greater and greater responsibilities on iabor unions, perhaps even Federal or State incorporation. This would not be to the liking of Mr. Green and his group any more than to Mr. Lewis. But it is the price that may have to be paid if union labor's quarrel be- comes an impediment to recovery and re-employment. So far as politics is concerned, 3 Roosevelt will suffer from the divisi in the ranks of labor. John Lewis as been in high favor with the Presi- dent, who regards him as a strong- minded leader. Mr. Lewis has al- ready begun to pay back the debt he owes Mr. Roosevelt for his espousal of the Guffey coal law. In Ken- tucky, for instance, John Lewis took the stump recently, and, it is under- stood, claims his full share of credit for the 95,000 Democratic majority in that State at a moment when the other States were voting Republican. Guffey Act Aids Lewis. The labor war has been coming on for several weeks. It cropped out, of course, at the convention of the A. F. of L. last month in Atlantic City. ‘The Green supporters say John Lewis has never made a success as a labor organizer and would not tdday be in a position of strength were it not for the fact that, through the Guffey act, Mr. Roosevelt handed John Lewis 500,000 new members on a platter. The income from dues paid by such a large membership is enabling Mr. Lewis to carry his fight aggressively for domination of the A. F. of L. What is meant by saying that the Roosevelt administration “handed” Mr. Lewis 500,000 members is simply this: The Guffey act provides, in effect, for the recognition of the United Mine Workers, over which Mr. | Lewis presides, and it arranges for the “check-off” system, whereby em- ployers pay the dues directly to the unions each week and the miners are not thus permitted to take the money they earn and decide for themselves what to do with it each week. ‘This check-off system has long been in vogue in union mine fields, but the Guffey act now extends the Lewis in- Scene of Brazilian Uprising -—— A P e An aerial view of Natal, Brazil, an important seaport, where alleged Socialists are reported to be in control following a revolt. The Brazlian Congress has declared a six months' “state of siege.”—Wide World Photo. e < Brazil (Continued From First Page.) many of its constitutional guarantees, was applied sternly by police. Jails were being filled beyond capac- ity as authorities rounded up sus- pected extremists. Those taken into custody here in- clude Hamilton Barata, editor of the communistic newspaper O Homen Libre, and Prancisco Managabeira, president of the syndicate of bank em- ployes. All 20 states and the two federal territories of Brazil—South America’s largest nation, greater than territorial United States—were virtual armed camps. Rebels Reported Curbed. Government officials said co-ordi- nated uprisings at Olinda, Pernambuco and in the other northeastern states of Alagoas and Parahyba were being crushed. Reports circulated that Socialists expected the small state of Ceara, im- mediately north of the state of Rio Grande do Norte, to swing into line with the uprising. The widely ramified movement ap- parently was aimed to grip all Brazil within three months. Leaders of the revolution pledged themselves, it was learned, to carry out a number of Socialist measures, including nationalization of all banks, expropriation of foreign vested inter- ests and. declaration of war “to all foreign imperialism.” It wag the third time since President Getulio Vargas took office five years ago—himself at the head of a revolu- tion—that a state of siege had been declared. Not since the Sao Paulo revolt of 1932 had such a state existed. The Chamber of Deputies approved the drastic resolution, 155 to 69, and the Senate gave similar approval, 25 to 3, the President quickly put- ting the measure into force. Foe Sustains Siege. Gov. Flores Dacunha of the State of Rio Grande Do Sul, who split recently with the President, instructed delegates from his State to vote for the siege everywhere except in Rio Grande Do Sul, where “we have every soldier on a footing of war already.” Private advices from the north said | Raphael Fernandes, deposed by the Tebels as Governor of Rio Grande Do Norte, took refuge on a Mexican Coast Guard vessel, anchored at Natal. In Sao Paulo—with Rio De Janeiro, the principal goals of the revolu- tionary movement—a newspaper, or- gan of the National Liberating Al- liance, was confiscated by authorities. Troops were ordered out along the railroad lines connecting Rio De Janeiro with Sao Paulo to the south and Minas Geraes to the west. ‘The government's most important agent in combating the movement was Capt. Felinto Mueller, police chief of Rio De Janeiro, working directly under the interior ministry. Against him apparently was pitted Luiz Carlos Prestes, Communistic leader of the 1924 Sao Paulo revolu- tion, who returned secretly to Brazil to head the new insurrection. The Government received a strang bloc of labor support when Florentino Santos, president of the Rio de Janeiro dock workers, wrote to Felinto Mueller, pledging the support of his organization against radicalism. Zeppelin Fails to Land. FRIEDRICHSHAVEN, Germany, November 26 (#).—The Graf Zeppelin, which has ridden out many storms, is riding out the rebellion in Brazl today. Her commander, Capt. Lehmann, reported” by wireless: “No cause for He said he had sufficient food and fue! to keep aloft until Thursday and that there were no passengers on board. Dinner Is Planned. ‘The past officers of Martha Chapter, | the Order of the Eastern Star, will have & dinner Saturday at Mrs. K's Toll House Tavern. Past Matron Ella Reynolds will later conduct the business session. but increase the political complica- tions. It will be recalled that the admin- istration takes such a deep intsrest in labor matters that recently Secretary Perkins of the Department of Labor indicated her disapproval when E. K. Hutchinson, & Republican and head of the craft union groups, was chosen .| by William Green, president of the A.F.of L, as a delegate to an inter- national labor conference in Chile. The Roosevelt administration has allied itself openly with labor and has not played the part of umpire or mediator in the interest of all groups in America. This has alienated most RIO DE JANEIRO ———— MILES Map showing the four states where the revolt is in progress. The shaded areas in the northeast, including the States of Rio Grande do Norte, Parahyba, Pernambuco and Aagoas, are the troubled states, accord- ing to reports. CUTTEN IS CLEARED COLLUSION ON BIDS CHARGED BY ICKES BY COURT RULING Grain Futures Act Suspend- ing Wheat King Is De- clared Ineffective. By the Associ-ted Press. CHICAGO, November 26 —Arthur W. Cutten, Chicago wheat king, was free today to resume his market trad- ing privileges— which, actually, he never lost— | under a ruling of the United States | Circuit Court of | Appeals. Grain Futures Administration two years on charges of vio- - lating rules re- = quiring that arther W, Cutten “1ODE” 0F “short” 000-bushel or more lots in all grain futures be reported. ! Cutten appealed to the courts and obtained an order restraining the ad- ministration from enforcing the sus- pension. Order Is Reversed. ‘The Court of Appeals yesterday re- versed the suspension, holding that the words “is violating,” as used in the grain futures act, prevented suspen- sions for past violations. Cutten’s ;;l;lged violations were in 1930 and Judges Evan A. Evans, Will M. Sparks and Robert C. Baltzell ruled the wording of the act made it inef- fective, In Washington J. W. T. Duvel, chief of the Grain Futures Administration, sald the Government undoubtedly would appeal to the Supreme Court. For years Cutten has been a leg- endary figure on La Salle street. He seldom appeared in the wheat pit, shunned publicity and until recently maintained a “cubby hole” office in a skyscraper near the Board of Trade. The lettering on the office door read “Chicago Perforating Co.” One sec- retary was the office staff. At the rear was & small private room. Few per- sons ever entered it. Deciared Biggest Speculator. In bringing charges against Cutten Government termed him “the big- gest speculator in the history of the Nation.” ‘While he was charged with million- bushel deals, traders commented that the only Cutten grain buying they were sure of was the corn he purchased to feed the pigeons on the window sill of his office. Cutten commented, after his disbar- ment Was announced, “What's the use of trading, anyway? The market doesn’t move.” It is not known whether Cutten has mbetn in the market simce his suspen- quoted the market. “I'm just trying to make » little money, like every one eise.” positions of 500,- | 1aTY) —Copyright, A. P. Wirephoto. Third Case of Alleged Joint Price by Steel Firms Cited to President. B/ the Associated Press. A third case of alleged “collusive” bidding by four American steel com- panies has been submitted to Presi- dent Roosevelt by Secretary Ickes. The P. W. A. administrator said at his press conference today he had taken that action with “prima facie | evidence of collusion™ in bids for steel | on a P. W. A-financed dock at | Miami, Pia. Last March the | The Trade Commission already is investigating such accusations in con- | nection with bids on an ocean terminal at Morehead City, N. C., and the Tri- Borough Bridge in New York City. The same four companies, Ickes said, were involved in all three cases— Inland, Carnegie, Jones & Laughlin and Kalman (a Bethlehem subsid- In both of the earlier instances German companies underbid domes- tic concerns and received contracts, although Jones & Laughlin later was awarded the Triborough contract. Protests Block Purchases. Protests from steel manufacturers and organized labor have forced Ickes to halt all purchases of foreign mate- rials pending determination of any | collusion by domestic manufacturers, or subsidization of underbidding for- eign concerns. A 25 per cent differential in favor of American bidders has been estab- lished in place of the 15 per cent margin which existed before the More- head City and Triborough incidents. Ickes said today, however, there were no foreign bidders on the Miami proj- ect, and he had ordered the contracts awarded to the concern farthest away. & At the same time he disclosed that after conferring ‘with Senator Shep- pard, Democrat, of Texas, he had ordered an investigation of purchase of foreign asphalt for road construc- tion, $185,000 for 3,300 Toms. P. W. A. officials said the four com- panies each had bid $185,000 for 3,300 tons of steel for the Miami project. They added this had led local suthorities to request an additional $125,000 allotment to cover the higher cost. Ickes made his charge after allot- ting $250,000 to the Federal Power Commission for other iavestigations. This included $150,000 to determine cost of electrical power generation and other information about publie utili- ties and $100,000 to investigate rates. ‘The latter study was by the Senate. HITS GOTHAM CRIME Loesch Says New York City Now Is Refuge of Criminals. CHICAGO, November 26 (P).—Frank J. Loesch, head of the Chicago Crime Commission, called New York City the crime capital of America yesterday. was once known as, the eapital” said the 83-yeamold MAN, SHOT, GASPS STORY OF KILLINGS Fate of 9 Missing Persons May Be Known if He Recovers. By the Associated Press. OKLAHOMA CITY, Novembe: 26— Investigation of the fate of nine miss- ing persons focused tcday upon the condition of Chester Comer, 25, itin- erant oil fleld worker, gravely wounded in a gun fight before his capture yes- terday. a barely understandable admission of partial guilt before lapsing into a coma. E. Smith Hester, McClain County attorney, said Comer confessed he killed Ray Evans, prominent Shawnee attorney; L. A. Simpson, Piedmont farmer, and Simpson’'s son, Warren, 14, and hid their bodies. “I did away with three . . . dumped there bodies in & pile under a pipe- line ... Allen ... near Ada,” Chester quoted Comer. Wives Among Missing. Comer’s first and second wives were added to the list of missing. Federal agents probed the possibility Comer may have killed four Iliinois tourists, George M. Lorius and Albert A. Heb- erer and their wives, in New Mexico several months ago. “Three bodies . . . oh, piles of bodies,” Hester quoted the mumbling Comer. “I wouldn’t be surprised at anything we may run into,” said Col. Charles Daley, State Crime Bureau chief, as he directed a far-flung search for the victims. Daley said personal belongings found in Simpson’s car in which Comer was captured “increase our ears for those missing.” “Comer had a brief case belonging to Evans, whom he told me he killed,” Daley said. “In addition, there were a couple of sweaters which might have belonged to a young boy. face powder and women'’s toilet articles and some small baby’s hoods. “He had two pistols besides the one he used in the gunfight yesterday, and a large quantity of ammunition.” Find “Slave” Note. After Comer's capture by Oscar Morgan, Blanchard marshal, who was wounded in the arm by Comer, a pen- | ciled note was found in the desper- | 1 Hauptmann ado’s pocket. It read: “If I am not killed in this car it will be a surprise to me. I have noth- ing to regret. I had rather be dead than be a public slave.” Mr. and Mrs. J. W. Comer, Okla- homa City, identified the captive as their son, “the second to go bad.” Mrs. Comer related their son, Arnold, 18, is in an Arkansas asylum for killing a man, woman and baby four years ago. A year ago, he killed his cellmate and since has been in | solitary confienment. Mrs. J. R. Childers, stepmother of | Comer's first wife, Elizabeth Childers, said she had been missing since Au- gust. Fear also was expressed for his sec- ond wife, Mrs. Lucille Stevens Comer, whose father, Charles Stevens, said she last was heard from in McLean, Tex., September 14. Daley said if Comer dies before giv- ing further information “there will be nothing to do but search every square foot of South Central Oklahoma.” | by Comer in mumbled replies to ques- | tioning as to what he had done with | the bodies of Evans and the Simpsons. | Daley said he probably would ask | for National Guards to aid the search. | Petition (Continued From First Page) Comer, a bullet in his brain, gasped | S.E.C.BEGINSSUT - 10 GAIN REGISTRY Electric Bond & Share Named in Complaint to U. S. Court. Br the Assoclated Press. NEW YORK, November 26.—The Becurities and Exchange Commission today filed a complaint in equity in Federal Court against Electric Bond & Share Co. and five of its interme- diate holding concerns, asking the court to direct them to register in compliance with the public utilities act of 1935. Shortly after the suit was filed it was announced that neither the Elec- tric Bond & Share Co. nor any of its } affiliates would register under the | public utilities act of 1935. The S. E. C. also asked the court to issue subpoenas directing Electric | Bond & Share and the holding cor- porations specified to answer the complaint in court and “for such gther relief as the court may deem | at” | In addition to Electric Bond & | Share, the defendants in the case are | the American Gas & Electric Co., the American Power & Light Co., the ;Electnc Power & Light Corp., Na- | tional Power & Light Corp. and the United Gas Corp. The complaint was filed by John J. Burns, general counsel to the com- | mission, and Robert H. Jackson, also | an attorney for the S. E. C. In citing cause for the action, the | complaint alleges: “That the defendants are engaged and are about to engage in acts and practices which constitute, or will con= stitute, violations of the public utilities | act of 1935.” | Today's action, the first specific step | taken in court to compel public utility | holding companies to comply with | the law, was regarded by corporation | lawyers and others who have been fol- lowing utility affairs, as a test suit de« signed to secure early adjudication of the holding company issue. It followed closely the suits begun by the United | Gas Improvement Co. of Philadelphia and the Commonwealth & Southern Corp. to test the constitutionality of the holding company act. (Continued From First Page.) Reserve banks were all circularized | by this bureau and none of them has turned up any ransom money since Hauptmann's arrest. It seems very unlikely to me that a Reserve bank would withhold such information from us if they had it. “If Hauptmann’s men have evidence of ransom notes being turned up it should have been brought to the ate tention of authorities immediately, There is no need for mystery in such a thing, because if the notes can be produced they could easily be checked.” Hoover described reports of the pearance of new ransom notes as “a solutely untrue” and said that he had checked Pederal agents in Boston and other Northeastern centers today. “There haven’t been any reports of Lindbergh ransom money in Boston or any other place outside of New mercial centers at the time that we traced Hauptmann. None has turned up there since.” . MUST SERVE 75 DAYS John F. Cox, 18, 2012 Thirtief place southeast, was sentenced !‘:\1‘ Jucge John P. McMahon in Traffic Court yesterday to serve 75 days straight for operating without a per- & Power Co. and the Western Power | mit and pay a fine of $50 or serve an Corp, it was stated. In addition | gqditional 30 days on a hit-and-run | North American owns more than 10 | charge, He also forfeited $10 on | per cent of the stocks of ‘the Detroit | jntoxication charges. gdls‘jmfl Co. and the Pacific Gas & Police say Cox fled vesterday after 'g‘ ic Co.. the petition stated. | colliding with an automobile operated rected against members of the by Agnes R. Hermanson, 3107 W Securities Exchange Commission, At- | street southeast. torney General Cummings and Post- £ master General Farley, the suit asks for a permanent injunction to prevent their enforcing terms of the Wheeler- Rayburn act against North American, and that the act be declared uncon- stitutional and void. The law firm of Sullivan & Crom- well of New York City represented the company and was associated locally with the firm of McKenney, Flannery and Craighill. Fourth Company to Attack. sliding scale arrangement for annual correction of charges for electric current here. The company now is allowed a basic return on an agreed valuation of 7 per cent. There were indications the commission would consider slicing this to 6!2 or even ‘6 per cent. | The North American Co. subse- quently notified the Securities Ex- | change Commission of & decision to North American was the fourth |withdraw the proposed stock transac- major company to attack the act's | tion, which it had planned as a means constitutionality and to refuse to reg- of giving up control over Washington ister with the Securities Commission. | Railway & Electric. Observers here Similar suits have been filed by the | selieve the commission’s announced in- United Gas Improvement Co. of Phil- | vestigation of the Fotomac Electric adelphia, the Commonwealth & |Power Co.'s rate of return had much Southern Corp. and the Consolidated |to do with the decision of the North Gas Co. of New York. | American to withdraw its plan to dis- Although the commission had prom- ised that no criminal proceedings would be instituted against non-reg- | istrants and had said it would guar- | antee the constitutional rights of | those who did register pending court decisions, the North American brief said: “Plaintiff is obliged, in the protec- tion of its constitutional rights and the constitutional rights of its numer- ous and scattered debenture holders and stockholders not to submit volun- tarily to the jurisdiction of the com- mission.” Filed Plan in October. North American late in October filed with the commission a plan cal- culated to give up its present domi- nation over the Washington Railway & Electric Co., which owns the profit- able Potomac Electric Power Co., in a transaction involving the proposed sale of 1,625,000 participating shares in the W. R. E. Co. The utility holding company said it proposed to sell its major holding of participating shares at a maximum of $30 each, which set up expecta- tions that the North American would receive upward of $21,000,000 in the transactions. North American holds 62,197 of the 65,000 shares of common stock in the W. R. E. Co. In the registration statement it was proposed to substi- tute participating shares for the pres- ent common stock at the rate of 25 for 1, the North American to dispose of its participating shares on the market and would thereby reduce its control of W. R. E. by about 8. pose of its holdings. Immense Loss Feared. In its petition the North Ameriean Co. declared sale of its investments at a time when billions of other securi- ties probably will be placed on the market as a result of the law would result in an immense loss, it was stated. Operation of the law would destroy the diversification of the company's investments, which long has been an outstanding policy, and also would prevent the company’s furnishing funds in time of need to its subsidi- aries, the court was informed. Over a long period of years North American has followed a policy of furnishing its subsidiaries with funds for expansion and has arranged for the subsidiaries to reserve earnings for such These investments and “plowed back” earnings exceed $130.~ 000,000 in the past 10 years, the peti= tion states. Consolidation Held Blocked. The act would prevent North Amerl- can absorbing the North American Edison Co. and the Western Power Corp., two of its subsidiaries, which has long been desired, it was said. This absorption was made possible in April this year by amendments to Delaware and New York laws, attor= neys for the company asserted. It was estimated the consolidation would save $101,250 in taxes in 1936, when the two concerns are expected to yleld $6,750,000 dividends to the current organization. The company revealed in its suit that it has substantial equities in public utilities “in Cleveland, Mil- waukee, St. Louis, the District, Detroit, San Francisco, Central Illinois, Cen~ tral Jowa and parts of Kansas, These are principally power companies, but also include gas and transportation facilities. It admitted frankly that it is a holding company under terms of ths Wheeler-Rayburn act and would be subject t0 the death sentence.