Evening Star Newspaper, January 13, 1936, Page 1

WEATHER. (U. 8. Weather Buresu Forecast.) Fair tonight and tomo! rrow, colder to- night with lowest temperature about 32 d diminishing winds. peratures—Highest, 50, at noon today; lowest, 37, at 2 a.m. today. Full report on page A-9. Closing N.Y.Markets, Pages 13,14 & 15 No. 33,494. Entered as second class matter post office, Washington, he WASHINGTON, D. C, pening Sfar WITH SUNDAY MORNING EDITION MONDAY. JANUARY 13, 1936—THIRTY PAGES. d‘l‘ullu!'l reulation, Aekkk The only evening in Washington wit Associated Press News and Wirephoto Services. 131,461 ‘Bome Returns Not Yet Received. (UP) Means Associated Press. aper the SUNDAY'S CY eulation, 141,752 TWO CENTS. RECOVERY OF PROCESS TAX UPHELD BILL T0 PAY BONUS BY SSUING BONDS N MULTIPLES OF $20 GIVEN SENATE Cancellation of Interest on| Loans Granted After Oc- tober 1, 1931, Is Pro- .vided in Measure. PAPER WOULD EARN THREE PER CENT Would Be Dated June 15, 1936.‘| Plan Would Permit Veterans to| Either Turn in Bonds for Cash or Hold Them Until Maturity in 1945. BACKGROUND— Question of paying bonus to World War veterans has plagued every administration since end of war. President Harding vetoed ‘measure in 1922; President Coolidge vetoed another in 1924, but saw Congress over-ride objection to create adjusted compensation cer- tificates. Movement for immediate payment of certificates in full came close to success last year when Senate narrowly upheld President Roosevelt’s veto. This year, three principal veterans’ organizations agreed on bill for immediate cash payment without suggestion as to how money should be raised. Meas- ure passed House last Friday. Sen- ate leaders have sought compromise form which might meet approval of President. BY G. GOULD LINCOLN. ‘The compromise soldiers’ bonus bill | providing for issuance to World War veterans of bonds which may be cashed at any time was introduced to- day by Senator Harrison of Missis- sippi, chairman of the Senate Finance Committee. “This bill, in my cph\lon said le- rison, “will be enacted irito law.” ‘The Mississippian said the White House “has had nothing to do” with the preparation of the bill. The Presi- dent, he said, must not be quoted as | favoring the bill, nor as rejecting it. Joining with Senator Harrison in | introduction of the bill were Sena- tors Clark of Missouri, Byrnes of South Carolina and Steiwer of Oregon. When he introduced the bill, Harricon an- nounced it has the approval of Sena- tor Robinson of Arkansas, Democratic | leader. Explains Bill. Senator Harrison issued a statement to the press explaining his new bill and its differences from the bill re- cently passed by the House. He said: ! “The bill is not essentially different in the benefits granted from the one which has just passed the House, but will, it is believed, provide a more practicable measure for making the settlement. “This proposal provides for the pay- ment of the face value of all adjusted service certificates, less loans which have been made on them, with no in- terest charged after September 30, 1931. We have adopted this date for stopping interest charges because it is the one which was in the bill passed by both Houses of Congress last year. It does not cancel to the veteran any interest paid or contracted to be paid by the veteran prior to October 1, 1931. “In addition to the difference be- tween the cancellation of the interest feature to this bill and the House bill, it is proposed that instead of checks being given to the veterans iri payment of their adjusted service certificates, as the House bill provides, that the veterans receive bonds, the value of which will increase from year to year by the accumulation of interest at the rate of 3 per centum per annum and will run for 10 years. Non-Negotiable. “These bonds, however, will not be of the ordinary type, but the vet- erans will be given special privilege of cashing them in at some designated place in their local community at any time and without any red tape, at their face value, plus any accumula- tion of interest. The bonds are to be registered in the name of the veteran and are non-negotiable. “The bill brovides safeguards in- suring the veteran that he can secure payment in full at any time he desires to cash his bonds. Thus the veterans, after they receive these bonds, have the option of retaining them and by 80 _doing providing a nest egg and a (See BONUS, Page 2.) BALM SUIT APPEALED Cannon Abandons Motion for New Trial in $12,600 Verdict. By the Associated Press. CHARLOTTE, N. C, January 13.— Joseph P. Cannon, Concord capitalist, today abandoned his motion for & new trial of the $250,000 “heart balm” suit brought by his former son-in-law, F. Brandon Smith, jr., and filed notice of an appeal to the State Supreme Court. A jury in Mecklenburg Superior Court Saturday awarded Smith $12,600. PR AR 21 Freed in Drake Case. CHICAGO, Ill, January 13 (#).— ‘Twenty-one of the 41 defendants in Kipling Stricken; Is Critically Il After Operauon Bard in Semi-Conscious Condition From Gas- tric Disorder. By the Associated Press. LONDON, January 13.—The condi- be “very grave” at 5:30 p.m. today, ” Kipling took a turn for the worse his condition had observed his 70th was stricken in a Kipling. condition was The first hospital announcement tion of Rudyard Kipling, Great Britain’s famous bard, was stated to eight hours after he had undergone an emergency operation in a Lon- don hospital for a gastric disorder. e late in the after- " noon. Only =& 4 few hours earlier fiw fl been described as y i “satisfactory.” The poet, who birthday anni- versary just two weeks ago today, suite of Brown's Hotel and in a { semi - conscious taken jn an am- bulance to the Central Middlesex Hos- pital this morning. said “an urgent operation was per- formed.” The noon bulletin said the (See KIPLING, Page 5. 1.5, ARMS ORDER DELAY CHARGED - | Bruno Richard Hauptmann today told Nye Says Steel Firm Fa- vored Morgan Purchases for England. BACKGROUND— Senatorial investigation of profits of munitions makers has been brew- ing since Summer of 1934. Hear- ings were held that Fall and find- ings were cited last Summer when agitation mounted for neutrality legislation. Insisting that Ameri- can commercial activities were responsible for drawing Nation into last World War, Senate committee leaders have sought to build up case through further investigation. Resuming hearings last week, com- mittee called J. P. Morgan and associates in eflort to trace involved financial dealings with allied na- tions. Meanwhile, independently of committee, ‘administration has prepared new neutrality legisla- tion. BY REX COLLIER. A charge that the Midvale Steel Co., then filling munitions orders for Great Britain through the purchasing agency of J. P. Morgan & Co., deliberately delayed American orders in 1916 so as to give preference to the Morgan purchases was made today at the Senate Munitions Committee hearing. Senator Nye of the committee ac- cused the steel company of this maneu- vering after Stephen Raushenbush, committee investigator. had read let- ters from the Midvale firm to the House of Morgan. J. P. Morgan and 2is associates re- fused to concur in Nye's interpretation of statements made in the documents, and Thomas W. Lamont suggested the matter could best he explained by Midvale. Steel Letter Read. A letter from A. C. Dinkey, presi- dent of.Midvale, to E. R. Stettinius of the Morgan export department, dated July 29, 1916, said: “We have accepted no orders from either the Italian government or the United States Government, the execu- tion of which has interfered or may (See MORGAN, Page 5.) — BLASTS IN HOSPITAL $2,000 Damage But No Casualties in New Orleans- Explosions. NEW ORLEANS, January 13 (#).— A series of explosions from anasthesia gas, followed by fire on the eighth floor of the Baptist Hospital, here today caused damage estimated by hospital authorities at $2,000, but did not en- danger the lives of any patients. The eighth floor houses seven oper- -“:dg rooms, two of which were dam- aged. The “National Scene BRUNO 1S WILLING 10 BE QUESTIONED AGAIN, WIFE. SAYS Tell Anything He “Neg- lected.” PLANS OF DEFENSE ARE KEPT SECRET Dodds and Burkinshaw, D. C. Lawyers, Join in Fight to Save Hauptmann. BACKGROUND— Convicted of kidnaping and kill- ing first son of Charles A. Lind- bergh, Bruno Richard Hauptmann is scheduled to die in electric chair Friday night. After unsuccessful appeals through courts, mann last Saturday was refused clemency by New Jersey Court of Pardons. Possibility erists of 90-day re- prieve by Governor. Legal recourses are: Habeas corpus action in Federal Court; appeal for new trial to Judge Trenchard, who presided over original trial; requést for review by United States Supreme Court, once denied. 936, by the Associated Press.) TRENTON, N. J, January 13.— (Copyright, his wife he was ready to undergo authorities. He said he would tell anything he might have neglected to say, but he reasserted his innocence. husband for the first time since the Court of Pardons refused him clem- ency—said she asked him if he would see Gov. Harold G. Hoffman, Attor- ney State police, to answer any ques- tions they might ask. Mrs, body anytime and answer any ques- tions or anything they might want to know that I might have neglected to say.” Believes Truth Is Coming. Hauptmann told his wife that he felt sure that sometime the truth of the Lindbergh kidnaping would come | out. “I hope that they don't have the murder of an innocent man on their conscience by that time,” he added. “Richard was so cheerful and hope- ful,” Mrs. Hauptmann said. “He made me feel better.” “I have asked to have the mechan- ical lie detector tried on me,” his wife quoted Hauptmann as saying. Efforts to save Hauptmann from the electric chair next Friday night were clgaked in secrecy today. One lawyer was located playing billiards. Nugent Dodds and Neil Burkin- shaw, Washington lawyers specializ- ing in United States Supreme Court procedure, who were retained by C. Lloyd Fisher, chief defense counsel, left Trenton apparently after a brief stay. Fisher did much telephoning from his office in Flemington, but disclosed (See HAUPTMANN, Page 4.) COTTON ADVANCES Recovery Follows Dismissal of Bankhead Act Appeal. Stocks Lose Gains. By the Associated Press. NEW +January .13.~-Cotton rallied today following the Supreme appeal on jurisdictional grounds. Down around $1 a bale before the to a range of 35 cents a bale higher to 10 cents lower after the court’s pronouncement. - Stocks felt the court’s decision not to rule today on the T. V. A. by can- celing early gains of small amounts to around $1 a share, and ruled steady to lower a little after the decision. The stock list as & whole was quiet and irregular. _BY ALICE ROOSEVELT LONGWORTH’ HE next few.days will see classification of the administration’s farm program. The expressions “soil conservation” and “crop insurance,” which smack of black soil magic, will be defined in terms of billions of dollars. 'l‘hulhnm'undflm even in the New Deal kindergarten. ,.vunnownwpén‘mtnnmhbe(mnd to “continue the .agrarian program - which was given such a violent jolt by‘the Supreme Court. Terminology of the whole ‘thing will be changed, alphabetical combinations will be shifted, and the color of the farmer’s checks may be varied. ‘We shall have to wait for the Supreme Court to say whether these disguises will render the new A. A A constitutional. If the membership of the court changes mate- rially before the next .agricultural decision, mnunnmm.mnun’mmm, and Secretaly Wallace’s office may stand. There remains the amendment. As days pass Mrs, Longworth. the impression grows that the President does not feel up to the job of putting it forward now. (Copyright. 1936.) Prisoner Declares He Will| Haupt- | FORFEIT OF BOND, GRAYSON'S ARREST ORDERED BY COURT Tired of Delay on lliness Pleas, Justice 0’Donoghue Bans Continuance. DOCTORS ASSERT TRIAL WILL JEOPARDIZE LIFE Better One Man Should Die Than Public Faith in Courts Be Ruined, Says Jurist. BACKGROUND— Formerly chief clerk in the chief national bank ezaminer’s office, John Cooke Grayson was indicted June 28, 1933, for allegedly inform= ing Robert S. Stunz when examin- ers were going to visit the Park Savings Bank. This, it was charg- ed, enabled Stunz, the bank's vice president, to conceal large short- ages. Stunz killed himself after bank failed. Indictment alleged Stunz accept= ed overdrafts from Grayson and credited his account with $4,000 in fictitious deposits in retrun for information. The case was often set for trial, but always postponed on plea Grayson was near death Jrom bad heart. further questioning by any of the | Mrs. Hauptmann—after visiting her General David T. Wilentz and | (H. Norman Schwarzkopf. head of the ON COURT DECISION i Court dismissal of the Bankhead act decision, the improvement lifted prices Sweeping . aside medical evidence | that John Cooke Grayson, brother of | | Rear Admiral Cary T. Grayson, lies’ critically ill in the University of Vir- | ginia Hospital at Charlottesville, Jus- tice Daniel W. O'Donoghue in Dis- trict Supreme Court today refused to | consider a continuance of his trial, ordered his bond forfeited, and au- thorized a bench warrant for his im- | mediate arrest. “It is better that one man should | die in the administration of justice than that the public should lose con- fidence in its fair administration by the courts,” Justice O'Donoghue de- | clared. “If this man was as ill two years | ago as affidavits at that time stated, | he would be dead now,” the justice added. It was expected that the war- rant would be folwarded today to| the United Statesattorney at Roa- noke, Va., headquarters for the Fed- eral district of Western Virginia. It then will be turned over to the United | States marshal there, who must pro- | ceed to Charlottesville and take Gray- son into custody. May Have to Use Ambulance. Defense attorneys, apparently cong fused by the judge's ruling, were un- able to say this morning whether they will institute habeas corpus proceed- ings in Virginia befote the customary removdl hearing. They sald Gray- son, & former Treasury official, will have to be transported in an ambu- lance. | Admira] Grayson was bondsman for his 64-year-old brother, posting $2,000 bail September 25, 1933, three months after the defendant’s indictment on two conspiracy charges growing out of the collapse of the Park Savings Bank. By the judge’s order, the bond must be paid into the coffers of the | court. An air of expectancy pervaded the crowded court room, already informed by mouth-to-mouth whispers that Grayson would not appear, when Jus- tice O'Donoghue entered. For days mystery has shrouded moves by both Government and defense counsel in connection with the much-delayed U. S. Answers Ready. When Clerk William 8.\ Adkins called out the name, “John‘Cooke Grayson,” Assistant United States At- torney John W. FihEUy arose and an- nounced: “The Govfinment is ready and willing to begin the trial.” Justice O'Donoghue turned toward Chief Defense Counsel Willlam E. Leahy, who said he was not ready, offering to the court four afdavits, one by himself and,the others drawn by three physicians who examined Grayson Saturday. All stated that Grayson might ‘die if brought to ‘Washington. “T have these doctors in court now and would like to put them on the witness stand,” Leahy said. “I. don't care to hear, them,” re- sponded the judge. “This defendant has had more than ample opportunity either to admit his guilt by a plea of (See GRAYSON, Page 3.) FOUR DIE IN CRASH. Burned to Death After Train Strikes Car. REDWOOD CITY, Cailf, January 13 ().—Four persons were burned to death after a Southern Pacific train struck their automobile at a grade crossing here last night. age before help could reach the oc: wmcimeemwhhm Albert, 12, and two brothers, James Griffin, 8, and Thomas Griffin, 9. —_— HUNT MISSING FLYER LOS ANGELES, January 13 (P).— Army officers prepared- to investigate | ® \w N . S \ JUST MAKING MINCE MEAT' WE MAY NEED A NEW | "COURT DISMISSES BANKHEAD SUIT: UNANIMOUS ON “Roxy” Dies From Heart Attack | In Sleep in Hotel Apartment Noted as Pioneer of Elab- | orate Stage Productions and Movie Theaters. | By the Associated Press. NEW YORK, January 13.—Samuel Lionel Rothafel, 57, motion picture | exhibitor familiarly known to show- | men and audiences as “Roxv.” dledi today of coronary thrombosis, ap-| parently in his sleep, in his rooms in the Hotel Gotham. His pajama-clad body was found | by & maid who had come to the room | to awaken him. With Mrs. Rothafel, who occupied an adjoining room. he returned to the hotel last night in good health after a day of golf. Dr. Seymour Wanderman, Rotha- fel's physician, said he suffered a heart attack a year ago, but had not been troubled since. Besides the widow, Rothafel is sur- vived by a daughter, Mrs. George Bi- jur, New York, and a son, Arthur, 25, of San Francisco. Rothafel was born July 9, 1878 in Stiliwater, Minn. with the rank of major. He entered the motion picture busi- ness in the Pennsylvania coal region, operating theaters in various cities. He went to Minneapolis where he de- veloped his talent for stage shows and was eventually summoned to the Strand Theater in New York, one of | the first “de luxe” cinema houses on | Broadway. ‘There, permitted free rein in the From 1900 to 1907 | he served in the Marines, retiring | S. L. ROTHAFEL. staging of his “presentations,” Roxy became the best known exhibitor in the country. Theaters throughout the country made use of his idea and added stage presentations to their programs. WELL ENOWN HERE. “Roxy” Responsible for Placing Radios | in Service Hospitals. Washington first became familiar with the name of “Roxy” when the (See “ROXY,” Page 4 34 DIE AS STORM : = |Other Ships Threatened by | Oregon Gale—Six Bodies Recovered. By the Assoclated Press. ASTORIA, Oreg, January 13.— Thirty-four men were counted lost to- day as the wild Pacific hurled six bat- tered bodies upon the shore from the wrecked intercoastal freighter Iowa. Coast Guardsmen said none of the crew of the 410-foot vessel could Hife survived smashed the freighter into wreckage after a 76-mile-an-hour hurricane tossed it upon Peacock Spit, Da Jones' locker for many another shi several other vessels as Coast patrols sought bodies of other victims. It was the greatess toll of lives on Peacock Spit since 1913, when 33 were lost on & tanker. An greater loss of life was averted narrowly when the Coast Guard cutter Onondaga veered to- ward Peacock Spit and was able (See SHIP, Page 3.} $2,000,000 MORE PUTS NEW LIFE IN QUODDY JOB Most of 1,250 Workers Laid Off to Be Rehired—$7,000,000 Is- Allocation Total Now. By the Associated Press. s EASTPORT, Me, January 13.—An additional $2,000,000 Government ap- propriation infused new life into the. Capt. Hugh J. Casey, officer, said all SEATFORD. C. HEAD SMASHES VESSEL IN' HOUSE: SOUGHT Bill Would Make One of Com- missioners Delegate With- out Voting Power. A plan to make one of the three oners a delegate in esentatives, to de- District Col the House of bate local ques without voting, was proposed today by Senator Van- denberg, Republican, of Michigan. When he first came to Washington Senator Vandenberg became familiar the pounding seas that with local affairs, through three years f service on the Senate District Com- ittee. “I always was impressed,”®he said “with the advisability of cre- The furlous storm also threatened | ating some direct link between the District government and Congress, when sitting as the District’s com- today, mon council.” 3 Favors Representation. ™ ‘The Michigan Senator believes the “logical answer would be the election by popular vote of a District dele- gate in the House of Representatives,” and added: “Perhaps this will come some day. But the long-time failure to get any action in this fashion indicates the I extent of the*hostile difficulties. tantly hear it argued, for example, t the election of a District delznte would scarcely be worth all of the expense and effort which would be (See DELEGATE, Page 3. Readers’ Guide . THO ARE KILED ON CRAIN HIGHWAY Man and Unidentified Wom- an Victims as Car Col- lides With Bus. A man tentatively identified as Ed- win L. Mattern of R. F. D. No. | Erie, Pa., and an unidentified woi were instantly killed when an au mobile in which they were riding was in collision with a Richmond-Balti- more bus at the intersection of the Crain Highway and Central avenue | today. Another unidentified woman occu- pant of the car was critically injured. She was brought to Casualty Hospital by the Prince Georges County, resgue | : | squad. 1 The bus driver, C. W. Blythe of | | Franklin, Va, and four passengers were unhurt. The man's name was found on an | ientification card in his pocket which | sald to notify R. J. Mattern of 29 | Homestead avenue, Collingswood, N. J., in case of accident. | Both bodies were removed to Ritchie's funeral home, Upper Mnl-i boro. Magistrate Horace Taylor, act- ing coroner, will hold an inquest in that town Friday night. Dr. James I. Boyd pronounced the couple dead. Both victims appeared to be about 55 years old. The man was pinned beneath the sedan, while the two women were| tossed to the roadside by the impact. | DUKE ASKS RELEASE FROM APPEAL COSTS Disbarred Attorney Pleads Pov- erty in Urging Supreme Court to Speed Case. Pleading he had been reduced to poverty since his disbarment here, Attorney Jesse C. Duke today appeared before the Supreme Court and asked that tribunal to receive his appeal from the disbarment action without pay- ment of customary filing and printing costs. The attorney was disbarred after making grave charges against District Supreme Court Justice F. Dickinson Letts and former United States Attor- ney-Leo A. Rover in connectien with the appeal of & liquor conspiracy case. He asked the Supreme Court either to prevent the United States Court of Appeals from acting or. compel it to speed its decision in his disbarment case. Duke claimed the Appeals Court had delayed its decision for nine months. Duke had been a member of the bars of the District, Virginia, Mary- land and the United States Supreme Court. He was disbarred after an investigation by the Grievance Com- mittee of the District Bar Association. His principal accusation against Letts and Rover was that the Govern- ment hatl filed, and the trial judge approved, a “falsé, inaccurate and in- eomplzte" bill of exceptions wl&h the Court of Appeals. - BRECKINRIDGE SEEKS DATA ON OHIO PRIMARY Asks Sufficient Petitions to Qual- ify Candidate for Presi- dent in May. By the Associated Press. RETURN OF LEVY Supreme Tribunal Decides for Rice Millers in Test Case Involving $200,000,- 000 Now Impounded. ROBERTS AGAIN READS OPINION OF JUSTICES Need of Processors to Show That Levy Has Not Been Passed on to Consumers Left to Lower Court Litigation—T. V. A. Ruling Expected Later. BACKGROUND— Rocked by Supreme Court de- cision in A. A. A. suit, Roosevelt administration awaited ruling on processing tar validity under amendments to original act. Dis- position of $200,000,000 impounded taxes and $1,000,000,000 already in Treasury was involved in suit by eight Louisiana rice millers. Also of vital importance to New Deal is attack on Bankhead cotton act, brought to test validity of heavy taxr on cotton produced in excess of quota restrictions. Yet to be decided is attack on Tennessee Valley project, Presi- dent's power “yardstick” proposal. By the Associated Press. Ordering $200,000,000 in impounded taxes returned to processors because | they were invalid under A. A. A, the 1. | Supreme | whether the $1,000,000,000 of such | taxes already paid to farmers could be Court left open today retrieved by the taxpayers. In another unanimous action, the high tribunal also dismissed the first test case on the Bankhead cotton control act. No decision was handed down in the only other New Deal case before it~involving the Tennessee Valley Authotity act.. The tax ruling, given in the Louis- iana rice millers case. did not cover whether the processors must prove they had not passed the levies on to the consumer before recovery could be made. Litigation, already under way in the lower courts, must decide that. Government attorneys later empha- sized this requirement of the amended |A. A. A. act would remain in effect unless the Supreme Court holds it invalid. Normally, the coyrt does not rule on questions unless it considers they are directly presented in litigation be- fore it. “No Case” on Cotton Act. Considering that no case had been made against the Bankhead law, the nine justices said their review in this instance had been “improvidently granted” on the 6-to-3 vote last Fall. Chief Justice Hughes, explaining the Bankhead dismissal, said in the de- cision that Lee Moor, the complaining Texas planter, had principally given only general testimony regarding his financial necessities. The trial court concluded he had failed to make a case, it was recalled, and the appeals court agreed “upon the established principle that & man- datory injunction is not granted as a matter of right, but is granted or re- fused in the exercise of sound judicial discretion.” The Supreme Court accepted this view. Remanded for Conformity. The rice case was remanded to lower courts for further action in econ- formity with the opinion. In holding the administration’s farm-aid program unconstitutional on January ¥, the Supreme Court ruled that the A. A."A. amendments could not ratify invalid actions previously taken by the Secretary of Agriculture. Another case involving the Bank- head act, filed by Gov. Eugene Tal- madge of Georgia, a Roosevelt admin- serealiteiasnis aibbalumseill (See DECISION, Page 5.) s LAWYER IS SLAIN; JUDGE ESCAPES Disgruntled Attorney Shoots Up $hicago Court Room After Losing Case. By the Associated Press. CHICAGO, January 13.—A dis- gruntled lawyer shot and killed At- torney Christopher G. Kinney in Cir- cuit Court here and then fired two shots at Judge John Prystalski, pre- siding. The judge ducked behind his bench and escaped. The pistol-wielding attorney, identi- fied as John W. Keogh, 59, ran amuck when Judge Prystalski ruled against COLUMBUS, Ohio, January 13.— |him in a case he had argued for 20 Col. Henry Breckinridge, attorney of "New . York. asked the secretary sof state mdsy for sufficient petitions to te, whose name he *| sent hiin 50 petitions and information mmudmlulmnlrmu minutes with Attorney Kinney. judge’s bench at the first thot from Keogh's smail-bore weapon. a blow to the jaw. One, aimed directly at Judge Pry- stalski as he sat on the bench, hit the